Insurance Companies Score Win at Supreme Court
December 26, 2022 —
Mason Fletcher & Ryan Sternoff - Ahlers Cressman & Sleight PLLCIn 2011, the Washington State Department of Transportation (“WSDOT”) contracted with Seattle Tunnel Partners, a joint venture of Dragados USA and Tutor Perini (“STP”) to construct a tunnel (“SR 99 Tunnel”) to replace the dilapidated Alaska Way Viaduct. STP obtained a builder’s “all-risk” insurance policy (“Policy”) from Great Lakes Reinsurance (UK) PLC and several other insurers (collectively, the “Insurers”) which insured against damage to both the project and the tunnel boring machine popularly known as Big Bertha (“Bertha”).
Bertha began excavating in July 2013 but broke down a few months later when the machine stopped working. Work did not resume on the project until December 2015. WSDOT and STP tendered insurance claims for the losses associated with the delays and breakdown of Bertha but the Insurers denied coverage. Thereafter, WSDOT and STP sued.
The Insurers moved the trial court for partial summary judgment to resolve some, but not all, of the coverage disputes. In a unanimous decision, the Washington State Supreme Court affirmed the trial court and Court of Appeals, and held that insurance companies do not have to reimburse WSDOT and STP for costs accrued during a two-year Project delay, under certain provisions of the insurance policies.
Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC and
Ryan Sternoff, Ahlers Cressman & Sleight PLLC
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com
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Motion for Summary Judgment Gets Pooped Upon
December 16, 2023 —
Garret Murai - California Construction Law BlogI’ve read some crappy motions over the years, some of which opposing counsel might even attribute to me, but I don’t think I’ve ever written about poop and motions.
In Beebe v. Wonderful Pistachio & Almonds LLC, a summary judgment motion filed by a project owner sued by a construction worker for personal injuries caused by bird poop, which in turn caused a nasty fungal infection which spread to his brain, resulted in a not-so-wonderful ending for Wonderful.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Courts Generally Favor the Enforcement of Arbitration Provisions
May 10, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn recent posts (
here and
here) I have discussed arbitration provisions and cases dealing with the enforceability of arbitration provisions.
The case of Lemos v. Sessa, 46 Fla.L.Weekly D701a (Fla. 3d DCA 2021) deals with two noteworthy principles when it comes to arbitration that warrant another post about arbitration provisions.
First, courts will and should try to resolve any ambiguity in arbitration provisions in favor of arbitration.
Second, when there is an offending arbitration provision or one that includes language that violates public policy, the trial court “should sever the offending provisions from the arbitration clause so long as such severance does not undermine the parties’ intent.” Lemos, supra. This principle is reinforced when the arbitration provision is in an agreement that contains a severability provision.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
CLB Recommends Extensive Hawaii Contractor License Changes
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFIn 2013, the Hawaii senate passed a resolution, which asked the Contractors License Board to assess “each of the contractor licensing classifications under chapter 444, Hawaii Revised Statutes, and chapter 77, Hawaii Administrative Rules, and prepare a report that evaluates each classification,” according to Anna Oshiro’s blog, Hawaii Construction Law. The “board completed its task” and “recommends wholesale changes to the scope of work to be performed by licensed contractors in the State of Hawaii.” The report has been filed with the Legislative Reference Bureau.
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Smart Construction and the Future of the Construction Industry
October 11, 2021 —
Caroline A. Harcourt, James W. McPhillips & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law Blog“Smart Construction” is a loose term but generally refers to the development and use of processes and applications that improve construction planning and the management of projects (thereby potentially streamlining costs of construction).
The increased deployment of collaboration tools (e.g., Zoom, Microsoft Teams, WebEx) and other cloud-based technology solutions during the COVID-19 pandemic will invariably result in more efficient project management in construction going forward. These type of efficiencies are sorely needed, especially as the industry is trying to recover from supply chain issues, lockdown challenges and social distancing requirements resulting from the pandemic.
However, smart construction goes well beyond those basic business efficiency and collaboration tools. For example, drones are regularly used on construction projects to monitor site conditions, detect problems, and assess conditions safely. Meanwhile, newer technologies such as “programmable” cement, “self-healing” concrete, and autonomous and robotic machinery are increasingly being deployed in construction projects. And yet, these current technology solutions are just the tip of the iceberg as researchers continue to look for new ways machines and technology can be used to solve complex engineering challenges.
Reprinted courtesy of
Caroline A. Harcourt, Pillsbury,
James W. McPhillips, Pillsbury and
Adam J. Weaver, Pillsbury
Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com
Mr. McPhillips may be contacted at james.mcphillips@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Claim for Collapse After Demolition of Building Fails
January 09, 2023 —
Tred R. Eyerly - Insurance Law HawaiiAfter several city citations and the eventual demolition of the insureds' apartment building, their claim for coverage based on collapse was unsuccessful. Barker v. AmGuard Ins. Co., 2022 U.S. Dist. LEXIS 202069 (W.D. Mo. Nov. 7, 2022).
The plaintiffs purchased a three-story multi-family apartment building on March 9, 2009. Prior to the purchase, steel beams were installed in the basement along the east and south walls. By 2013, the south and east walls were leaning.
On March 13, 2017, the city building inspector observed "the foundation failing in several areas and deflection in the south wall." The building inspector issued a citation for a pubic nuisance in violation of the City Code. This was followed by several more citations against plaintiffs. The plaintiffs' inspector reported the basement walls were experiencing "extensive lateral deflections primarily due to the inadequate design of the basement walls."
Plaintiffs understood the issues to be "cosmetic.'" They had no work done on the property besides aesthetic upgrades. After additional citations were entered, the building was ordered demolished.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Emotional Distress Damages Not Distinct from “Annoyance and Discomfort” Damages in Case Arising from 2007 California Wildfires
February 16, 2017 —
Kirsten Lee Price & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Hensley v. San Diego Gas & Elec. Co., (No. D070259, filed 1/31/17), the California Court of Appeal for the Fourth Appellate District held that emotional distress damages are available on claims for trespass and nuisance as part of “annoyance and discomfort” damages.
In Hensley, plaintiffs sustained fire damage to their home and property during the 2007 California wildfires. The Hensleys were forced to evacuate as the fires advanced. Although their home was not completely destroyed, it sustained significant damage and they were not able to return home permanently for nearly two months. Thereafter, the Hensleys filed suit against San Diego Gas and Electric Company (“SDG&E”) asserting causes of action for trespass and nuisance, among others. Mr. Hensley, who had suffered from Crohn’s disease since 1991, further claimed that as a result of the stress from the fire, he experienced a substantial increase in his symptoms and his treating physician opined that “beyond a measure of reasonable medical certainty... the stress created by the 2007 San Diego fires caused an increase of [Mr. Hensley’s] disease activity, necessitating frequent visits, numerous therapies, and at least two surgeries since the incident.” SDGE moved, in limine, to exclude evidence of Mr. Hensley’s asserted emotional distress damages arguing he was not legally entitled to recover them under theories of trespass and nuisance. The trial court agreed and excluded all evidence of such damages.
Reprinted courtesy of
Kirsten Lee Price, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Price may be contacted at kprice@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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How the Parking Garage Conquered the City
January 09, 2023 —
Andrew Zaleski - BloombergUncertainty overcame owners of several Manhattan parking garages in September. A plan to implement congestion pricing — charging drivers to enter a zone south of 60th Street — could lead to more transit usage by commuters, and thus the closure of some parking garages, The City reported. Parking options have already been on the wane in the largest US city: The NYC Department of Consumer Affairs and Worker Protection counted more than 2,200 licenses for garages and lots in 2015, a number that fell to 1,899 by 2021.
For most urban residents, if not outer-borough drivers, that decline is reason to cheer. The parking garage — a big, concrete-gray box for cars — is a notorious bane of urban vitality.
City after city, desperate to lure suburbanites downtown to work or shop, bulldozed prime real estate to build these structures in the postwar era, turning central business districts into vehicle-storage voids that sapped streets of pedestrian energy and hollowed out neighborhoods. Building codes that mandated a certain number of parking spaces have kept new garages coming: In suburbs, exurbs and towns across the US, you will find these facilities, squatting beside shopping centers and stadiums, airports and office parks, planned communities and amusement parks.
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Andrew Zaleski, Bloomberg