Default Should Never Be An Option
June 19, 2023 —
Christopher G. Hill - Construction Law MusingsEvery time I think that the construction industry has learned that failure to respond to a lawsuit is never the correct response, another case of default judgment comes out. I’ve discussed on multiple occasions that failure to respond can only lead to disaster. Aside from being barred from making any substantive response to the allegations against you, there are other consequences including the inability to seek a reasonable settlement because the other side has no reason to negotiate.
One of the more disastrous results recently came about in the Norfolk Division of the Eastern District of Virginia District Court. The case of L & W Supply Corp v. Driven Construction et. al. involved a supplier that sought to enforce its credit agreement against both the corporate entity of the contractor, Driven, and the guarantor, a principal of the company. Needless to say, there was no response to the lawsuit and the Plaintiff filed for default judgment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Engineer and CNA Dispute Claim Over Dual 2014 Bridge Failures
December 15, 2016 —
Scott Van Voorhis – Engineering News-RecordAn engineering company whose error led to two pedestrian bridge collapses in North Carolina in 2014 that left one worker dead and caused costly damage contends it is being unfairly denied $2 million in potential insurance coverage by its carrier due to what it claims is an “ambiguous” wording of the policy.
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Scott Van Voorhis, Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Mass Timber Reduces Construction’s Carbon Footprint, But Introduces New Risk Scenarios
March 04, 2024 —
Michael Bruch & Franck Fumat - Allianz CommercialMass timber has the potential to be a critical building component for the cities of the near future given the need for the construction sector to reduce its reliance on concrete and steel to lower its Co2 emissions. However, as this market grows and mass timber buildings evolve to greater heights, the construction risk landscape will also be transformed, bringing risk management challenges for companies, according to the new Emerging Risk Trend Talk
report from Allianz Commercial.
“The emergence of mass timber as a sustainable construction alternative represents a significant opportunity for the building sector to reduce its carbon footprint while also satisfying a demand for a material that is more cost-efficient but as durable as steel and concrete,” says Michael Bruch, Global Head of Risk Advisory Services at Allianz Commercial. “However, in any industry, deployment of new materials or processes can result in new risk scenarios, potential defects, or unexpected safety consequences, as well as bringing benefits, and mass timber is no different. Given this market’s expected future growth, companies should do all they can to develop a greater understanding of their exposures including fire, water damage, repetitive loss scenarios and even termite infestation, and ensure they have robust loss prevention measures in place to combat these.”
The need for mass timber
The building and construction sector is among the largest contributors to Co2 emissions, accounting for over 34% of energy demand and around 37% of energy and process related Co2 emissions in
2021 [1]. Given emissions reduction is essential to meet climate change commitments around the world, the need for more sustainable solutions in the built environment has become increasingly important, driven by growing investor and consumer concerns, and legislation, regulation and reporting requirements evolving quickly in many jurisdictions around the world.
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Allianz Commercial
TOLLING AGREEMENTS: Construction Defect Lawyers use them to preserve Association Warranty Claims during Construction Defect Negotiations with Developers
March 07, 2014 —
Nicholas D. Cowie – Maryland Condo Construction Defect Law BlogIf properly drafted, a tolling agreement stops, or “tolls,” the running of the statue of limitations and other time periods aplicable to an association’s legal claims while it attempts to negotiate the repair of and/or monetary compensation for construction deficiencies with the developer and other responsible parties. In short, it is a “time -out” that allows and association to preserve its legal claim so it can focus on settling its claims rather than pursing them in court.
Too often, condominium associations and homeowner associations (“HOA”) unknowingly allow their legal claims for construction defects to expire during lengthy negotiations with developers and builders. If negotiations fail, the association may turn to a construction defect attorney for legal representation only to find their construction defect legal claims are time barred because the statute of limitations or other legal time period has expired.
This article explains how condominium associations and HOAs can avoid this scenario by the use of tolling agreements to preserve their legal claims while engaged in potentially lengthy negotiations with developers to correct construction defects.
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Nicholas D. Cowie, Maryland Condo Construction Defect Law BlogMr. Cowie may be contacted at
ndc@cowiemott.com
Midview Board of Education Lawsuit Over Construction Defect Repairs
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFMidview Local Schools Board of Education in Grafton, Ohio, “filed a lawsuit asking Lorain County Common Pleas Court to order the Ohio School Facilities Commission to help pay for repairs on three new schools,” according to The Morning Journal. Scott Goggin, Midview’s Superintendent, told The Morning Journal: “Water-stained ceilings and weeping windows in three new elementary schools, built with financial help and cooperation of the OSFC Expedited Local Partnership Program, irritated the district for months.”
“The lawsuit,” as reported by The Morning Journal “claimed other school districts received financial help from the state when correcting repairs to their schools built through the same program.” Furthermore, the lawsuit stated that “OSFC failed to assess the total classroom facilities needs of the school district, and to share the costs of repairing defects.”
The Morning Journal reported, “The lawsuit asks for restitution of the state’s share of correcting the construction defects, the costs of the lawsuit and reasonable attorney’s fees, and further relief the court decides is just and fair.”
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Documentation Important for Defending Construction Defect Claims
November 27, 2013 —
CDJ STAFFWhen insurers are faced with a construction defect claim, they want information. Unfortunately, insurers “typically struggle to find the documents we need to understand what exactly happened and why it happened,” according to Robert Kreuzer, second vice president of construction risk control for Travelers. “The documents are either not there, or they’re inaccurate, or we can’t find them.”
Not only does it make determining what happened more difficult, it also slows downs the litigation process. Mr. Kreuzer also noted that by properly documenting and maintaining documents, “you have a better chance of getting yourself out of the dispute, and avoiding that 11-year headache.”
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U.S. District Court of Colorado Interprets Insurance Policy’s Faulty Workmanship Exclusion and Exception for Ensuing Damage
August 15, 2022 —
Carin Ramirez - Colorado Construction LitigationRecently, the United States District Court for the District of Colorado interpreted a faulty workmanship exclusion in a property insurance policy in The Lodge at Mountain Village Owner Association v. Eighteen Certain Underwriters of Lloyd’s of London, 22 U.S Dist. Ct LEXIS 48883*, decided on March 18, 2022. The Court held that the faulty workmanship exclusion at issue extended to preclude coverage for later ensuing damage that arose from the faulty workmanship, even though the damage was weather related, because faulty workmanship was the primary cause of the ensuing damage.
The claims in The Lodge at Mountain Village arose from maintenance work performed on log siding at three multi-unit condominium buildings in Telluride. The maintenance work to the log siding included staining, finishing, and chinking repairs to joints between the logs. About a year after completion of the work, The Lodge at Mountain Village Owners Association (“The Lodge”) notified the maintenance contractor that logs were extremely weathered and that its work was defective. The Lodge retained an expert who prepared a report stating that the log finish and underlying wood was deteriorating because of the contractor’s work and that some areas were not properly protected from exposure to snow, rain, and brine from ice-melting salt. The Lodge pursued and settled its claims against the contractor.
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Carin Ramirez, Higgins, Hopkins, McLain & Roswell, LLCMs. Ramirez may be contacted at
ramirez@hhmrlaw.com
Payment Bond Claim Notice Requires More than Mailing
August 04, 2015 —
Christopher G. Hill – Construction Law MusingsIt’s been a while since I posted something new relating to Virginia’s “Little Miller Act” and its various notice requirements for a subcontractor to make a payment bond claim.
I have posted on the basics of a Virginia payment bond claim previously here at Musings. One of these basics is the 90 day notice requirement for suppliers or second tier subcontractors with no direct contractual relationship to the general contractor. A recent case from the Norfolk, Virginia Circuit Court examined when notice is “given” under the Little Miller Act.
In R T Atkinson Building Corp v Archer Western Construction, LLC the Court looked at the question of whether mailing of the notice of claim is enough to constitute notice being “given” in a manner that would satisfy the statutory requirements. In that case, the supplier mailed the notice within the 90 day window, but the defendant argued on summary judgment that it did not receive the notice until 2 days after the 90 day window had closed. In support of this contention, the defendant provided tracking information showing delivery by the USPS on the non-compliant date.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com