Cambridge Massachusetts Building Expert Directory

Jury Instruction That Fails to Utilize Concurrent Cause for Property Loss is Erroneous

March 22, 2018 — Tred R. Eyerly - Insurance Law Hawaii

The Florida District Court reversed erroneous jury instructions that adopted the efficient proximate cause doctrine in determining whether the insurer was responsible for the insureds’ collapsed roof. Jones v. Federated National Ins. Co., 2018 Fla. App. LEXIS 561 (Fla. Ct. App. Jan. 17, 2018).

The insureds filed a claim for their damaged roof, contending that the damage was caused by a hailstorm. Federal National Insurance Company denied the claim based upon exclusions for “wear and tear, marring, deterioration;” “faulty, inadequate or defective design;” “neglect;” “existing damage;” or “weather conditions.”

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

Illinois Supreme Court Rules Labor Costs Not Depreciated to Determine Actual Cash Value

November 19, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Supreme Court determined that a homeowner insurer may not depreciate labor costs in calculating actual cash value (ACV) after a loss under the policy. Sproull v. State Farm Fire and Casualty Co., 2021 Ill. LEXIS 619 (Ill. Sept. 23, 2021). Plaintiff was insured under a homeowner's policy that provided replacement cost coverage for structural damage. Under the policy, the insured would initially receive an ACV payment but then could receive replacement cost value (RCV) if repairs or replacement were completed within two years and the insurer was timely notified. The policy did not define "actual cash value." Plaintiff suffered wind damage to his residence and timely submitted a property damage claim to State Farm. The adjuster determined that the building sustained a loss with RCV of $1711.54. In calculating ACV, State Farm began with the RCV and then subtracted plaintiff's $1000 deductible and an additional $394.36, including taxes, for depreciation. Plaintiff thus received an ACV payment of $317.18. Plaintiff claimed that he was underpaid on his ACV claim because State Farm depreciated labor, which is intangible and thus not subject to wear, tear, and obsolescence. Further, labor should not have been depreciated because it was not susceptible to aging or wearing and its value did not diminish over time. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Woman Files Suit for Property Damages

January 15, 2014 — Melissa Zaya-CDJ STAFF
Debra Lovejoy filed suit on December 5th 2013 in Virginias Kanawha Circuit Court claiming that her home sustained damaged after a highway was built near her property, according to The West Virginia Record. The West Virginia Water Company, Carpenter Reclamation Inc., and the West Virginia Department of Transportation-Division of Highways were named in the suit. “Lovejoy claims Carpenter disturbed the contours of the surface, thereby weakening the support for the bank extending along the highway,” reports Kyla Asbury of The West Virginia Record. Asbury continues: “As a result, the bank has slipped significantly over time, according to the suit.” Lovejoy claims the bank needs to be repaired in order to prevent it from further slips, and is pursuing compensation. Read the court decision
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Deescalating Hyper Escalation

July 05, 2023 — Paul F. Williamson - Construction Executive
Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present. Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained. Reprinted courtesy of Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Unfortunate Event Test Leads to Three Occurrences

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Second Circuit affirmed the finding of three occurrences in a highway accident after applying the unfortunate event test. Nat'l Liability & Fire Ins. Co. v. Itzkowitz, 2015 U.S. App. LEXIS 16387 (2nd Cir. Sept. 15, 2015). A dump box attached to a dump truck struck and damaged an overpass. The dump box then separated from the truck and landed in the right lane of the highway. Some thirty seconds to five minutes later, the Itzkowitz vehicle struck the detached dump box. Then, at some point between a few seconds and twenty minutes later, the Hershkowitz (second) vehicle struck the dump box. The insurer for the dump truck owner, National, argued there was one accident, or at most two separate accidents, under the policy. The district court found there were three occurrences and National appealed. 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

Court Addresses Damages Under Homeowners Insurance Policy

January 21, 2019 — David R. Cook, Jr. - Autry, Hall, & Cook, LLP
During a storm, a tree landed on a homeowners house causing damage to the home’s foundation. Homeowners filed a claim on their homeowners insurance policy to recover the resulting damages. After homeowners and insurance company could not come to an agreement on value of the loss, homeowners filed a lawsuit. Homeowners presented the testimony of a contractor as an expert witness regarding the damage and the resulting loss of value. Contractor testified that the home value was reduced in half as a direct result of the damage to the home’s foundation. Insurance company sought to exclude the contractor’s testimony, arguing he was not qualified as an expert and did not apply appropriate methodology to reach his opinions. Read the court decision
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Reprinted courtesy of David R. Cook, Jr., Autry, Hall, & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Another Way a Mechanic’s Lien Protects You

September 14, 2020 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, we have discussed mechanic’s lien law in Virginia on multiple occasions. We have discussed everything from the very picky nature of the perfection and enforcement of these liens to the changes that the Virginia General Assembly periodically makes to these requirements and how to defend against such liens. While the steps taken and content of a Virginia mechanic’s lien will be strictly construed by the Virginia courts, when perfected properly, a mechanic’s lien can and will put you as a construction company seeking payment in a better position than if no lien were recorded. The direct benefit is that you now hold a lien on the property on which you performed work that takes a priority (read will be paid before) any mortgage or other lien on that structure. In other words, if you, the bank, or the owner seeks to sell the property through foreclosure or otherwise, mechanic’s lien holders generally get paid first. While there are exceptions to be explored with an experienced Virginia construction attorney, this is the general rule and the power of a mechanic’s lien. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Homeowners Must Comply with Arbitration over Construction Defects

January 06, 2012 — CDJ STAFF

The California Court of Appeals has upheld a decision by the Superior Court of Kern County that homeowners must comply with arbitration procedures in their construction defect claim. The California Court of Appeals ruled on December 14 in the case of Baeza v. Superior Court of Kern County, denying the plaintiff’s petition that the trial court vacate its order.

The plaintiffs in the case are homeowners in various developments built by Castle & Cook. The homes were sold with a contract that provided for “nonadversarial prelitigation procedures, including mediation, and judicial reference.” The homeowners made defect claims and argued that Castle & Cooke failed to comply with statutory disclosure requirements and that some of the contracts violate related statutes.

The appeals court found that there was no ground for appeal of the lower court’s order to continue with prelitigation procedures. The court noted that the plaintiffs could not seek a review of the mediation until a judgment was issued, but that then the issue would be moot. The court felt that there were issues presented that needed clarification, and so they reviewed this case. This was cleared for publication.

The court considered the intent of the legislature in passing the Right to Repair Act, noting that “under the statutory scheme, the builder has the option of contracting for an alternative nonadversarial prelitigation procedure,” as established in Chapter 4. The court noted that Chapter 4 “contains no specifics regarding what provisions the alternative nonadversarial contractual provisions may or must include.”

The plaintiffs contended that the builder was in violation of the standards set out in Section 912, however the court responded that these sections set out one set of procedures, but they concluded that “if the Legislature had intended the section 912 disclosure provisions…it could have made the requirements applicable to all builders by locating them in a section outside Chapter 4.”

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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES