Cambridge Massachusetts Building Expert Directory

No Coverage for Co-Restaurant Owners Who Are Not Named In Policy

August 24, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court denied two plaintiffs' claims for breach of the policy and for bad faith because they were not insureds under the policy. Tu v. Dongbu Ins. Co., 2017 U.S. Dist. LEXIS 115200 (N.D. Calif. July 24, 2017). Dongbu, a Hawaii insurance company, issued a two-year policy to Plaintiff Ken Tu for his business. He was the only named insured under the policy. The waste system at Plaintiffs' restaurant failed, causing fumes to impact neighboring tenants and waste to contaminate the underlying soil. Plaintiffs were forced to close the restaurant. A claim was tendered for damage and repair, loss of business income, and other insured losses. Dongbu denied coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Real Estate & Construction News Round-Up (08/17/22) – Glass Ceilings, Floating Homes and the Inflation Reduction Act

September 12, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up features the construction industry’s latest happenings: the Inflation Reduction Act, women shattering the glass ceiling, eco-friendly floating homes, and more.

The Inflation Reduction Act contains approximately $5 billion for programs to accelerate the construction industry’s shift toward green building materials. (Julie Strupp, Construction Dive)
According to a new analysis from consultancy Rider Levett Bucknall, the speed of growth for construction costs has only gotten faster. (Erik Sherman, Globe St.)
Record vacancies in the construction industry has created the opportunity for women to step into what’s previously been an all-male business. (Craig Torres & Maria Paula Mijares Torres, Bloomberg)
A midlife crisis hits office buildings, with the late-30s/early-40s stable of office product accounting for about a third of the national market today. (Commercial Observer)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Washington Court Tunnels Deeper Into the Discovery Rule

July 09, 2019 — Lian Skaf - The Subrogation Strategist
Often times, properly analyzing when a statute of limitations begins to run – not just how long it runs – is crucial to timely pleading. In Dep’t of Transp. v. Seattle Tunnel Partners, 2019 Wash.App. LEXIS 281 (Was. Ct. App. Feb. 5, 2019), Division Two of the Court of Appeals of Washington addressed when the discovery rule starts the statute of limitations clock on a negligence cause of action. The court held that the statute of limitations begins to run when the plaintiff knows that the factual elements of the claim against the defendant exist. The clock starts to run even if the plaintiff wants to investigate the possibility of other contributing factors or the defendant identifies opposing viewpoints on the theory of the claim. In this matter, the Washington State Department of Transportation (WSDOT) contracted with an engineering firm, WSP USA, Inc. (WSP), for an evaluation of the Alaskan Way Viaduct in 2001. As part of this project, WSP retained the services of Shannon and Wilson (S&W), another engineering firm, to conduct geological profile logs, groundwater-pumping tests, and prepare technical memoranda. In 2002, WSP and S&W installed a pumping well with an eight-inch steel casing (TW-2). In 2009, apparently based on the work done by WSP and S&W, WSDOT determined that a bored underground tunnel was the best option for replacing the viaduct. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

Micropiles for bad soil: a Tarheel victory

March 14, 2011 — Melissa Brumback

Despite foundation challenges, construction is almost complete on the expansion at University of North Carolina’s Kenan stadium. The project started with a deep foundation system from design-build contractor GeoStructures. Known as the Carolina Student-Athlete Center for Excellence, the addition was built on a parcel with a knotty mix of fill soils, subsurface boulders and varying depths to rock. To achieve uniform foundation support, GeoStructures designed a Micropile system (also known as a Mini pile system) which could be drilled into the variable ground conditions.

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Reprinted courtesy of Melissa Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl law.com.

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Brad Pitt’s Foundation Sues New Orleans Architect for Construction Defects

September 25, 2018 — David Suggs – Bert L. Howe & Associates, Inc.
Brad Pitt’s foundation has sued its architect of New Orleans projects alleging “defective design work led to leaks and other flaws in homes built for residents of an area that was among the hardest hit by Hurricane Katrina,” reported Insurance Journal. The Make It Right Foundation claims damages of more than $15 million caused by architect John C. Williams. According to Insurance Journal, “The foundation paid Williams’ firm millions of dollars to produce architectural drawings for more than 100 homes under the program, which was supposed to provide Lower 9th Ward residents with sustainable and affordable new homes.” This lawsuit against the architect is apparently in response to a class-action lawsuit by New Orleans attorney Ron Austin against Pitt’s Make It Right Foundation. Austin’s lawsuit “accused the charity of building substandard homes that are deteriorating at a rapid pace,” Insurance Journal reported. The 39 homes involved in a previous suit regarding the manufacturer of TimberSIL are excluded from the lawsuit against Williams. Read the court decision
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Pollution Exclusion Bars Coverage for Damage Caused by Tar Escaping From Roof

October 27, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insurer prevailed on summary judgment establishing it had no duty to defend the insured roofing contractor for damage caused by tar escaping from a roof. Mesa Underwriters Spec. Ins. Co. v. Myers, 2016 U.S. Dist. LEXIS 108444 (W.D. Ohio Aug. 16, 2016). Myers contracted to do roofing work for Sireco III LLC. Myers removed stones from the roof, patched all bad sections, and sealed the roof. To seal the roof, Myers used a roofing-tar sealant. The substance was a skin irritant and harmful or fatal if swallowed. Myers expected the sealant to harden within twenty-four hours. When rain hit the area eleven days later, however, it washed the sealant off the roof and into the downspouts. It then flowed into the city's sewer system and eventually into Lake Erie. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Eleventh Circuit Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond

February 27, 2019 — CDJ STAFF
On October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision. The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond. Reprinted courtesy of Gary M. Stein, Peckar & Abramson and K. Stefan Chin, Peckar & Abramson Mr. Stein may be contacted at gstein@pecklaw.com Mr. Chin may be contacted at kschin@pecklaw.com Read the court decision
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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com