GA Federal Court Holds That Jury, Not Judge, Generally Must Decide Whether Notice Was Given “As Soon as Practicable” Under First-Party Property Damage Policies
November 01, 2021 —
Edward M. Koch & Lynndon K. Groff - White and WilliamsInsurance policies covering first-party property damage often require insureds to notify insurers of a loss “as soon as practicable.” Where an insured may or may not have given notice “as soon as practicable,” the issue arises as to who should determine whether the insured complied with this requirement: the judge or the jury?
On October 6, 2021, the United States District Court for the Middle District of Georgia addressed this issue in Vintage Hospitality Group LLC v. National Trust Insurance Company, Case No. 3:20-cv-90-CDL, 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021). In Vintage Hospitality, a July 2018 hailstorm damaged the roof of a hotel owned by the policyholder. The policyholder did not discover leaks from the hotel roof until two months later, in September 2018. The policyholder, not realizing that the hailstorm had caused the leaks, unsuccessfully attempted to repair the leaks. Eventually, in February 2020—19 months after the hailstorm and 17 months after the policyholder discovered the leaks—the policyholder hired a construction company to evaluate the roof. It was not until then that the policyholder learned that the hotel had sustained hail damage from the July 2018 storm. The policyholder notified its July 2018 first-party property damage insurer a few days later.
Reprinted courtesy of
Edward M. Koch, White and Williams and
Lynndon K. Groff, White and Williams
Mr. Koch may be contacted at koche@whiteandwilliams.com
Mr. Groff may be contacted at groffl@whiteandwilliams.com
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Business Risk Exclusions Bar Coverage for Construction Defect Claims
June 28, 2013 —
Tred EyerlyThe federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013).
The plaintiffs entered a construction contract with the insured general contractor to build a home. After the project was one-third completed, plaintiffs terminated the contract. Experts hired by plaintiffs found a failure to properly site the residence, as the house was constructed 48 feet from the intended location; violations of county height restrictions; failure to follow building plans, which were themselves deficient; and an improperly poured foundation. The experts estimated that the costs of repairing the property to be between $1.3 and $1.5 million, and that the cost of demolishing the structure and rebuilding it would be between $1.1 and $1.3 million.
After plaintiff filed suit, a stipulated judgment of $1.952 million was entered.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Meet Your Future Team Members: AI Agents
December 10, 2024 —
Aarni Heiskanen - AEC BusinessIf you’ve been following the discussion around AI, you’re familiar with the concept of AI agents.
AI agents can be understood as intelligent automation that operates independently, monitoring its environment and taking action without constant human input. Unlike traditional software requiring specific inputs to produce predictable outputs, AI agents can adapt to varying conditions and user needs.
AI agents can be based on various technologies, including Large Language Models. They can also be constructed using other AI technologies, such as rule-based systems, machine learning algorithms, and specialized models tailored to specific tasks.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Don’t Sign a Contract that Doesn’t Address Covid-19 (Or Pandemics and Epidemics)
December 14, 2020 —
David Adelstein - Florida Construction Legal UpdatesDo yourself a favor: Don’t sign a construction contract that doesn’t address COVID-19 or any pandemic or epidemic from this point forward!
As the number of COVID-19 numbers rise, it would be reasonable to think this could have an impact on ongoing or future construction projects. For this reason, I want to revisit the subject of addressing COVID-19 (and any pandemic or epidemic) in your construction contract.
The potential impact caused by COVID-19 could result from governmental regulations that impact construction of the project, shutdowns due to affected workers, owners’ decisions to suspend performance or adjust the way the project is being constructed, increased deep cleaning requirements, and increased measures associated with social distancing and re-sequencing of shifts. This all plays into the timeliness of performance and the productivity of manpower and equipment usage. When submitting a price, a lot of these considerations may not be factored in because doing so could lead to a price that will never get accepted.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Pa. Contractor Pleads No Contest to Prevailing-Wage Charges, Pays Workers $20.7M
September 20, 2021 —
Tom Ichniowski - Engineering News-RecordPennsylvania construction contractor Glenn O. Hawbaker Inc. has pleaded no contest to counts of theft of worker pay—in alleged violation of state prevailing-wage laws—and will pay 1,267 workers restitution of $20.7 million in unpaid wages, Pennsylvania Attorney General Josh Shapiro said.
The company entered its plea to four felony counts of “theft by failure to make required disposition of funds received” on Aug. 3 before President Judge Pamela A. Ruest of the Centre County Court of Common Pleas in Bellefonte, Pa.
Reprinted courtesy of
Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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Contractual Impartiality Requires an Appraiser to be Unbiased, Disinterested, and Unswayed by Personal Interest
June 01, 2020 —
Frank Ingham - Colorado Construction Litigation BlogOn June 24, 2019, the Colorado Supreme Court held that when a contract or insurance policy requires an “impartial” appraisal, the appraiser for a party cannot be an advocate for that party.[1] In this situation, the appraiser must be unbiased, disinterested, without prejudice, and unswayed by personal interest. Id.
Owners Insurance Company (“Owners”) issued a policy to the Dakota Station II Condominium Association, Inc. (“Association”) that represents a 49-building multifamily residential property in Jefferson County, Colorado. Concerning loss conditions, the policy includes an appraisal provision requiring that, in the event of property appraisal, “each party will select a competent and impartial appraiser.” The parties would then select an umpire or have one appointed by the court. Any agreement as to the values reached by two of the three would bind them all.
On May 24, 2012, the Association made a storm-damage roofing claim to Owners for $1.33 million. The parties could not agree on the amount of the loss and the Association invoked the policy’s appraisal process. The Association retained Scott Benglen as its contingent-fee cap appraiser. Mr. Benglen retained Laura Haber as a policy and damage expert, who appraised the roof loss at $2.55 million and the total replacement at $4.3 million.[2] Owners’ appraiser, Mark Burns, submitted the loss at $1.86 million with the replacement cost award of $2.3 million. The umpire, Honorable James Miller, adopted Owners’ estimates in four of the six categories, awarding just over $3 million to the Association. Id.
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Frank Ingham, Higgins, Hopkins, McLain & RoswellMr. Ingham may be contacted at
ingham@hhmrlaw.com
South Carolina Law Clarifies Statue of Repose
July 11, 2011 —
CDJ STAFFA new law in South Carolina, H 3375, fixes a loophole in that state’s statute of repose. State law puts a cap of eight years on construction defects, but the 2008 law that set that limit had a loophole that would allow for construction defect claims to start thirteen years after construction. The law also provides a cap on punitive damages.
The measure was backed by the Carolinas Association of General Contractors. Their spokesperson said that the legislation “increases our state’s ability to be economically competitive and helps protect our members from frivolous lawsuits.”
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Read South Carolina H 3375…
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How Long Does a Civil Lawsuit Take?
August 14, 2018 —
Bremer Whyte Brown & O’MearaHow long does a civil lawsuit take?
One common question among parties to a civil lawsuit, whether a plaintiff or defendant, is how long will it take to reach a resolution? The answer is tricky. The time it takes to resolve a civil lawsuit is highly dependent on various factors including the complexity of the matter and the parties’ willingness to settle.
At the outset, parties to a civil case may resolve the matter at any time by mutual agreement (i.e., settlement). In that case, the parties draft a Stipulation and Order outlining the terms of the agreed settlement and submit the document to the judge for approval. Absent of any glaring inequity in the terms of the Stipulation, the judge will typically approve of the parties’ settlement, and the matter will be deemed resolved (either in whole or in part, depending on the case, the terms of the settlement and indemnity agreement).
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Bremer Whyte Brown & O’Meara