A Win for Policyholders: Court Finds Flood Exclusion Inapplicable to Plumbing Leaks Caused by Hurricane Rainfall
October 21, 2024 —
Kelly A. Johnson & Damian S. Barquin - Saxe Doernberger & Vita, P.C. A recent decision by a federal court helps clear the path to coverage for property owners this hurricane season. The Court deemed one property policy’s flood exclusion inapplicable to bar coverage for water damage from backed-up drainage and overflow caused by excessive rainfall. The case, styled G.E.M.S. Partners LLC v. AmGUARD Ins. Co., — F.Supp. 3d —, No. CV 22-1664, 2024 WL 3568932 (D.N.J. July 29, 2024)), involved a familiar dispute between the insured and insurer following damage to covered property after a named storm’s heavy rainfall.
Here, G.E.M.S. Partners LLC (“Insured”) obtained a commercial property policy from AmGUARD Insurance Company (“AmGUARD”) to cover three neighboring buildings in Union, New Jersey. In September 2021, intense rainfall from Hurricane Ida overwhelmed the local infrastructure and sewer system, leading to water leakage from plumbing fixtures at the insured property. To secure coverage under its AmGUARD policy, the Insured wisely relied on its “Water Back-Up and Sump Overflow Endorsement” (“Back-Up/Overflow Endorsement”). Under this endorsement, AmGUARD promised to “pay for ... damage ... caused by ... water ... which backs up through or overflows or is otherwise discharged from a sewer.”1 Indeed, a plumber that inspected the buildings following Hurricane Ida described the root cause of the water damage as a “back up” of “sewer ... water.”2
Reprinted courtesy of
Kelly A. Johnson, Saxe Doernberger & Vita, P.C. and
Damian S. Barquin, Saxe Doernberger & Vita, P.C.
Ms. Johnson may be contacted at KJohnson@sdvlaw.com
Mr. Barquin may be contacted at DBarquin@sdvlaw.com
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Norristown, PA to Stop Paying Repair Costs for Defect-Ridden Condo
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city of Norristown, Pennsylvania has already paid “$3.4 million for construction repairs and legal expenses” for the 26-unit condominium on 770 Sandy Street, according to The Times Herald. Therefore city officials recently declared that “they will no longer pay the $40,000 annual cost for maintenance, electricity and repairs” for the building.
“At some point, the folks that own it have to step up and take responsibility for it,” Norristown Council President William Caldwell told The Times Herald. “No later than February 28, the municipality will cease to provide or pay for maintenance of 770 Sandy Street.”
Previously, Norristown had received court orders to repair the building, after numerous construction defects turned up including “missing firestops in numerous walls, missing grout and steel rebar in block-wall, emergency stair towers, faulty electrical wiring and no provision for firestopping in the first-floor garage ceiling.” City officials “were faulted by Montgomery County Common Pleas Court judges for not properly inspecting the construction.”
Charles Madracchia, past Customers Bank attorney and current Homeowner attorney, is “continuing active litigation in both federal and state court.”
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Toll Brothers Climbs After Builder Reports Higher Sales
February 26, 2015 —
John Gittelsohn – Bloomberg(Bloomberg) -- Toll Brothers Inc., the largest U.S. luxury-home builder, rose the most in a year after the company reported a higher-than-expected quarterly profit and said it sold more properties at higher prices.
Net income for the three months through January was $81.3 million, or 44 cents a share, compared with $45.6 million, or 25 cents, a year earlier, the Horsham, Pennsylvania-based builder said in a statement Tuesday. The average of 14 estimates was for 28 cents a share, according to data compiled by Bloomberg.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Supreme Court Set to Alter Law on Key Project, Workforce Issues
December 02, 2019 —
Mary B. Powers & Debra K. Rubin - Engineering News-RecordWith its term now under way, the U.S. Supreme Court could change federal laws with industry impact—from where huge pipelines can be built and new regulation of pollution in groundwater to whether LGBTQ workers have anti-bias rights under the 1964 Civil Rights Act.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Mr. Rubin may be contacted at rubind@enr.com
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Approaching Design-Build Projects to Avoid (or Win) Disputes
August 07, 2023 —
Stuart Eisler - Construction ExecutiveStakeholders engage in design-build projects believing the collaborative nature better aligns parties' interests and reduces overall risk exposure. Each of the lead parties bases this belief on different factors—the owner sees an opportunity to reduce change-order exposure and improve delivery times, the design-builder (or contractor) aims to control design volatility by ensuring project components match budgeted projections, and the designer intends to benefit by greater constructability review from the design-builder team and often additional time to detail designs. Rarely do design-build parties contemplate claims arising while initiating a project.
This being said, design-build projects carry unique, inherent risks due to the award of often fixed-price contracts utilizing incomplete, preliminary designs. As scopes creep and costs balloon, previously harmonious parties experience discord and lurking claims. While the majority of design-build projects are completed without major dispute, there are strategies available to further avoid disputes and prevail in those that are unavoidable.
Reprinted courtesy of
Stuart Eisler, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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ASCE Statement on Devastating Impacts of Hurricane Helene
October 07, 2024 —
Marsia Geldert-Murphey, P.E., President - American Society of Civil EngineersWASHINGTON, DC. – We are deeply saddened by the tragic loss of life across six states, in addition to the immeasurable damages caused by Hurricane Helene throughout the Southeast this past week. Hundreds of communities are without power. Citizens cannot move safely from one place to another. And in its wake, the storm has left many without drinking water and sewage services. As civil engineers, our first priority when we design and build the structures that connect us is the public's safety and well-being; we are heartbroken to see so many lives lost or upended by Hurricane Helene.
As someone who has experienced losing everything in a catastrophic flood event, I have seen first-hand the need for making communities more resilient, and the consequences of failing to do so. Although hurricanes have consistently been a threat in the U.S., particularly in the Southeast, extreme weather events and 500-year floods are increasing in regularity and our aging infrastructure systems were not built to withstand storms of this magnitude. Total prevention of loss of life or property damage can never be guaranteed, but Helene is a reminder of the importance of widespread adoption of up-to-date, modern building codes and standards.
We are thankful for the hard work of first responders, the military, and other organizations working around the clock to save lives and meet the immediate needs of people affected by this storm. As communities begin the long recovery process, civil engineers will be there to help communities rebuild the roads, bridges, dams, water systems, and other infrastructure damaged or destroyed by the storm.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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There’s the 5 Second Rule, But Have You Heard of the 5 Year Rule?
April 23, 2024 —
Garret Murai - California Construction Law BlogThey’re called deadlines for a reason. Usually, because something really bad could happen if you fail to meet the deadline.
For those in the construction industry, you probably aware of the “deadline” to bring a claim for latent defects (10 years from substantial completion); the deadline to file suit to foreclose on a mechanics lien (90 days from the date of recording the mechanics lien), and the deadline for serving a preliminary notice (generally, 20 days from the date labor and/or materials are first furnished).
Well, here’s another deadline: Under Code of Civil Procedure section 585.310, you have 5 years after a complaint is filed to bring a case to trial, absent the court granting relief. I could leave it at that, but in the next case, Oswald v. Landmark Builders, Inc., 97 Cal.App.5th 240 (2023), was too interesting to pass up.
The Oswald Case
On June 28, 2016, homeowners Jack Oswald and Anne Seley sued their general contractor and its subcontractors alleging construction defects at their home. Answers and cross-complaints were filed and on February 2017 the trial court determined the case to be complex and appointed a discovery master. A discovery master, for those who may be unfamiliar, is usually a retired judge or third-party lawyer appointed by a court to oversee discovery in a case such as written discovery, depositions, site inspections, etc.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The Anatomy of a Construction Dispute Stage 2- Increase the Heat
January 21, 2015 —
Christopher G. Hill – Construction Law MusingsLast week we discussed the groundwork and circumstances of a construction claim. This week’s post will discuss the next steps, hopefully short of full blown arbitration or litigation that you, as a construction company, can pursue presuming your claim has been properly preserved.
If your contract requires certain steps such as informal resolution attempts or other items, these are the first things that must be done while still preserving your rights to pursue all remedies available. Instituting such contractually required resolution steps can and should be the first “notch” on the dial of increased pressure on the Owner, General Contractor or possibly Subcontractor against whom you have a claim.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com