Builder’s Be Wary of Insurance Policies that Provide No Coverage for Building: Mt. Hawley Ins. Co v. Creek Side at Parker HOA
July 31, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCOn the heels of a recent order regarding coverage under a Comprehensive General Insurance policy issued by Mt. Hawley Insurance Company (“Mt. Hawley”), builders should be very wary of CGL policies providing no coverage for property damage.
On January 8, 2013, District Court Judge R. Brooke Jackson granted a motion for declaratory judgment filed by Mt. Hawley. The order states that the subject insurance policies issued by Mt. Hawley to Mountain View Homes II, LLC (“MV Homes”), the builder developer of the Creek Side at Parker development (the “Project”), did not provide coverage for any of the work performed by MV Homes or its subcontractors on the Project.
MV Homes originally began construction on the Project in 2002 and completed construction in 2005. MV Homes was insured by National Fire and Marine Insurance Company (“National Fire”) and Mt. Hawley. In December 2008, Creek Side at Parker Homeowners Association, Inc. (“the HOA”) served notice on MV Homes. The HOA then instituted a construction defect lawsuit on June 1, 2009 against MV Homes and others. MV Homes initially demanded a defense and indemnity from National Fire, which provided a defense. Then, after two years, MV Homes demanded a defense and indemnity from Mt. Hawley in July 2011. Mt. Hawley denied coverage and did not provide a defense. The case was settled soon after, and National Fire reserved or assigned claims against Mt. Hawley.
Read the court decisionRead the full story...Reprinted courtesy of
Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Handshake Deals Gone Wrong
May 22, 2023 —
Jessica Allain - ConsensusDocsThe construction industry has it fair share of “handshake deals”, oral agreements relying on the integrity of the people involved. But when it comes to protecting and enforcing legal rights, it is always a better idea to properly paper the deal and get it in writing. Otherwise, contractors relying on verbal promises may find themselves without any legal remedy should the deal go south. After all, it is not just a matter of trust, but also a way to document that everybody agrees on what the terms of the deal actually are.
For example, a recent case out of New York highlights the dangers of unwritten promises. In Castle Restoration, LLC v. Castle Restoration & Construction, Inc., No. 16349-15 (N.Y. App. Div. 2/9/22), 2022 NY Slip Op 50082(U), 2022 WL 402882, 2022 N.Y. Misc. LEXIS 485, Castle Inc. and Castle LLC entered into a deal for an asset sale to transfer equipment and a client list from Castle Inc. to Castle LLC. While that initial asset sale was properly papered with sale documents and a promissory note, the parties entered into a subsequent handshake/oral agreement where Castle LLC agreed to provide Castle Inc. with labor and materials on construction projects, and those goods and services would offset the payment obligation under the promissory note. But the problem was that the contract for the asset sale had a provision that the agreement could not be changed by oral agreement; rather, any changes had to be made in writing.
Reprinted courtesy of
Jessica Allain, Jones Walker LLP (ConsensusDocs)
Ms. Allain may be contacted at jallain@joneswalker.com
Read the court decisionRead the full story...Reprinted courtesy of
Canada Housing Surprises Again With July Starts Increase
August 13, 2014 —
Greg Quinn – BloombergCanada’s housing starts beat economist predictions for a fourth straight month in July, led by the most single-family home projects in almost two years.
The pace of work on new homes rose 0.7 percent to a seasonally adjusted annual pace of 200,098 units, the fastest since October, from a revised 198,665 in June, Ottawa-based Canada Mortgage & Housing Corp. reported today. Economists forecast a decline to 193,000, according to the median of 18 responses in a Bloomberg News survey.
Most economists and the central bank have predicted that rising prices and near-record debt loads would curb demand for housing. Instead, home resales, prices and starts have climbed after a tough winter, as mortgage rates remain near record lows.
Read the court decisionRead the full story...Reprinted courtesy of
Greg Quinn, BloombergMr. Quinn may be contacted at
gquinn1@bloomberg.net
Colorado House Bill 19-1170: Undefined Levels of Mold or Dampness Can Make a Leased Residential Premises Uninhabitable
April 03, 2019 —
Steve Heisdorffer - Colorado Construction LitigationOne of the 407 bills the Colorado legislature is considering as of the date of this blog post is House Bill 19-1170, the Residential Tenants Health and Safety Act, which can be found at https://leg.colorado.gov/bills/hb19-1170 and clicking on the link for the recent bill text. The bill passed the House on February 26 and is in the Senate for consideration. The bill currently adds two substantive conditions to those conditions that make a residential premises uninhabitable. One is the lack of functioning appliances that conformed to applicable law when installed and that are maintained in good working order. The second is “mold that is associated with dampness, or there is any other condition causing the premises to be damp, which condition, if not remedied, would materially interfere with the health or safety of the tenant…,” referred to here as “the mold or dampness provision.” The bill also amends various procedural provisions of Colorado law to make enforcement by a tenant easier and broadens tenant remedies. The bill grants jurisdiction to county and small claims courts to grant injunctions for breach. This article focuses on the mold or dampness provision.
The mold or dampness provision is vague and will likely lead to abuse. First, there is mold everywhere. While expert witnesses routinely testify about the level of exposure that is unacceptable, no generally accepted medical standards for an unacceptable level of mold exposure currently exist, and each person reacts to mold differently. There is no requirement in the bill that mold exposure exceed levels that are generally considered harmful by experts in the field, or even in excess of naturally occurring background levels. Second, some sources estimate that there are over 100,000 different species of mold. No harmful effects have been shown for many species of mold, while other species of mold are considered harmful.
Read the court decisionRead the full story...Reprinted courtesy of
Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com
2019 Promotions - New Partners at Haight
January 15, 2019 —
Haight Brown & Bonesteel LLPHaight proudly announces the promotion of Renata Hoddinott, Sarah Marsey and Annette Mijianovic to Partner in January 2019.
Renata and Sarah joined Haight’s San Francisco office in 2016. Renata relocated from a litigation firm in the Los Angeles area. She focuses her practice on professional liability, general liability, risk management & insurance law and transportation law.
Before coming to Haight, Sarah was with a respected trial firm in Anchorage, Alaska. She handles a variety of complex matters in appellate law, food safety, construction law and general liability.
Annette has been with Haight’s Los Angeles office for almost 12 years. Annette joined the firm as a summer clerk in 2007 and has continued to build her practice handling cases related to commercial litigation, products liability and transportation law.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Renata L. Hoddinott,
Sarah A. Marsey and
Annette F. Mijanovic
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
Ms. Marsey may be contacted at smarsey@hbblaw.com
Ms. Mijanovic may be contacted at amijanovic@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Airbnb Declares End to Party!
January 27, 2020 —
Patrick J. Paul - Snell & Wilmer Real Estate Litigation BlogAs municipalities around the country evaluate changes to their respective codes in an effort to exert greater control over bad actors in the vacation rental market, Airbnb announced on November 2nd that it is banning party houses. The move comes in response to the shooting deaths of five people at a Halloween party hosted at an Airbnb rental house in Orinda, CA. CEO Brian Chesky announced on Twitter that starting November 2, Airbnb would ban “party houses” and redouble the company’s efforts to “combat unauthorized parties and get rid of abusive host and guest conduct.” twitter.com/bchesky
The four-bedroom rental reportedly had been rented on Airbnb by a woman who advised the owner her family members had asthma and needed to escape smoke from a wildfire burning in Sonoma County about 60 miles north of Orinda earlier in the week. Nevertheless, the homeowner was suspicious of a one-night rental on Halloween and reminded the renter that no parties were allowed. Having received complaints from neighbors and witnessing some party activity via his camera doorbell, the homeowner called police who were en route to the home, but arrived after the shooting. The Halloween party apparently was advertised on social media as an “Airbnb Mansion Party,” with an admission fee of $10 per person.
Independently owned vacation rentals are currently growing at a faster rate than hotels or motels, and in some instances are owned by out-of-state investors seeking not only a real estate return on investment, but also a return on investment associated with revenue streams generated by “pay to play” parties promoted on social media.
Read the court decisionRead the full story...Reprinted courtesy of
Patrick J. Paul, Snell & WilmerMr. Paul may be contacted at
ppaul@swlaw.com
Surety Trends to Keep an Eye on in the Construction Industry
March 25, 2024 —
Oliver Craig - Construction ExecutiveReflecting on the dynamics of the 2023 construction and surety industries, it is evident that opportunities and challenges have emerged for contractors that will shape the landscape for the year ahead. Contractors can not only capitalize on these trends but protect the successful companies they have already built.
PROJECT OPPORTUNITIES
There has been a notable increase in public works opportunities, driven by increased government spending and the aging infrastructure in the United States. This trend is expected to continue in 2024 and beyond, with a notable portion of work coming in transportation- and public-utility-related infrastructure.
Due to increased spending, many contractors are reporting historically high backlogs—and that often includes the largest project their company has contracted in their history. While increased spending presents more opportunity, it’s critical contractors be even more diligent about new opportunities, giving additional consideration to the following:
Job Selection: New geographies, scope, project owners and/or subcontractor relationships commonly come with a learning curve. With the current state of the market, it’s not the ideal time to be learning costly lessons. Contractors should focus on having a proactive go/no-go strategy when reviewing potential projects to identify risks early and plan accordingly.
Reprinted courtesy of
Oliver Craig, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
A Look at Trending Legislative Changes Impacting Workers' Comp
February 26, 2024 —
Rosanna Shamash - Construction ExecutiveThe tides are shifting in the construction industry when it comes to legal matters—and business owners could feel the brunt of it.
Recent legislative changes in the state of New York could signal how workers’ compensation cases move forward across the country and impact business owners in the space. Arguably, New York has historically laid the groundwork for workers’ compensation law in numerous other states. Now, we’re seeing a clear shift in favor of workers with some of the recent legislative changes. Owners, operators and executives in the construction space have increasingly found themselves facing costly claims that in years prior carried a smaller dollar value and were largely viewed as inconsequential.
So, what’s the best way for business owners in the construction industry to protect their businesses for the future? Start by gaining a basic understanding of changes in the legal landscape, by securing defense attorneys who know the construction space and by taking steps to protect your business before an incident happens.
Reprinted courtesy of
Rosanna Shamash, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
