Fairfield Connecticut Building Expert Directory

Michigan Supreme Court Finds Faulty Subcontractor Work That Damages Insured’s Work Product May Constitute an “Occurrence” Under CGL Policy

November 02, 2020 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Skanska USA Bldg. Inc. v. M.A.P. Mech. Contractors, Inc., 2020 WL 3527909 (Mich. June 29, 2020), the Michigan Supreme Court addressed whether unintentionally faulty subcontractor work that damages an insured’s work product constitutes an “accident” under a commercial general liability insurance policy. In aligning itself with a growing number of jurisdictions, the Michigan Supreme Court answered, “yes.” In Skanska, a construction manager brought an action against a commercial general liability (CGL) insurer seeking coverage as additional insured for the cost of repairs to correct faulty work performed by its subcontractor in renovation of medical center. In 2009, the construction manager hired MAP to install a steam boiler and related piping for the medical center’s heating system. MAP’s installation included several expansion joints, which it was later discovered, were installed backward. Significant damage to concrete, steel, and the heating system occurred as a result. The construction manager performed the work of repairing and replacing the damaged property to the tune of $1.4 million, and submitted a claim to MAP’s CGL insurer, Amerisure, seeking coverage as an additional insured. Amerisure denied the claim contending that MAP’s defective construction was not a covered “occurrence” within the CGL policy. The policy defined “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions,” but did not define the term “accident.” The trial court looked to the Court of Appeal’s decision in Hawkeye-Sec. Ins. Co. v. Vector Const. Co., 185 Mich. App. 369 (1990), which defined “accident” as “…a result which is not anticipated and…takes place without the insured’s foresight or expectation and without design or intentional causation on his part.” But, again citing Hawkeye, the trial court concluded that “[d]efective workmanship, standing alone, is not an occurrence within the meaning of a[ ] general liability insurance contract[;] an occurrence exists where the insured’s faulty work product damages the property of another.” Read the court decision
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Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

The Importance of Preliminary Notices on Private Works Projects

September 03, 2019 — William L. Porter - Porter Law Group
Time and time again I receive calls from subcontractors and suppliers who find themselves faced with a customer who is either unwilling or unable to pay for labor or materials supplied for a private works project. As an attorney, the first question I usually ask is “did you serve a Preliminary Notice?” The second question I usually ask is “did you serve the Notice within twenty (20) days after first furnishing labor, service, equipment or materials to the job site?” The answers to these questions will often determine the ability to collect on the claim. The excuses for failing to serve the Preliminary Notice range from “for the last ten years the customer has always paid on time” to “I didn’t want to imply the contractor was not going to pay me” to “it is too much trouble to do on every job” or, simply, “I forgot”. Contractors and suppliers are well advised that any subcontractor or supplier who fails to properly and timely serve a Preliminary Notice is depriving itself of the most powerful tool available for compelling payment of construction related debt on a private works project. For all but the smallest contracts failure to serve the Preliminary Notice is also a violation of contractors’ license law and constitutes grounds for discipline by the Contractor State License Board, up to and including suspension of the contractor’s license. Most of these rules are found in California Civil Code Section 8200-8216. The requirements of these sections are far too numerous to itemize here. Suffice it to say every contractor, subcontractor and construction material supplier to private construction projects should be familiar with these sections of the California Civil Code. They set forth most of the rules which relate to Preliminary Notices on private construction projects. Some of the most important features are as follows: Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Musk Says ‘Chicago Express’ Tunnel Project Could Start Work in Months

August 14, 2018 — Jeff Yoders – Engineering News-Record
Technology guru Elon Musk beat three other construction proposals on June 14 to win the exclusive right to negotiate a design-build-operate-maintain contract with the City of Chicago to provide a high-speed underground passenger transport system between the downtown Loop area and O’Hare Airport. He proposes a one-way trip of about 12 minutes at 150 mph compared with the current 40-minute average by rail or car. Read the court decision
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Reprinted courtesy of Jeff Yoders, ENR
Mr. Yoders may be contacted at yodersj@enr.com

Insurer's Motion for Summary Judgment on Faulty Workmanship Denied

June 04, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024). Heather Way sued AAA Discount Homes, LLC and Delta Transport & Management, Inc. for manufacturing defects found in a manufactured home which was delivered and assembled by Delta. Way had contracted with AAA for the construction, delivery, assembly, setting, tie down with brick underpinning steps and construction of front and back porches. AAA, assisted by Delta, delivered the home and assembled it, including raising the roof, over the course of a few days. Subsequently, Way discovered extensive water damage and mold in the home. Way alleged that AAA and its subcontractors made careless, unsafe, and unsuccessful attempts at removing the old and repairing the water damage. The presence of chemicals in the home made it uninhabitable. Way alleged the home was improperly assembled by Delta and its negligence resulted in damages. 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

What You Need to Know About CARB’s In-Use Off-Road Diesel Regulations

May 20, 2024 — Garret Murai - California Construction Law Blog
In November 2022, the California Air Resources Board (CARB) approved amendments to . . . wait for it . . . its “In-Use Off-Road Diesel-Fueled Fleet” regulations – that enough hyphens for you – which took effect on January 1, 2024. The purpose of the regulations is to reduce emissions from off-road equipment, many of which are used by construction contractors, such as forklifts, bulldozers, cranes and excavators. Are these new regulations? Yes and no. CARB has regulated in-use off-road diesel-fueled vehicles since 2008 and has periodically amended these regulations. The most recent amendments take effect on January 1, 2024. What vehicles do the regulations apply to? The regulations apply to two classes of vehicles (1) self-propelled off-road diesel-fueled vehicles of 25 horsepower (hp) or more; and (2) two-engine vehicles other than on-road two-engine sweepers. The regulations apply to both owned as well as rented and leased vehicles. As used in this article, the term “vehicle(s)” refers to these two classes of vehicles. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

No Entitlement to Reimbursement of Pre-Tender Fees

April 28, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Federal District Court for the District of Hawaii determined that the insured was not entitled to pre-tender defense fees. The Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 38947 (D. Haw. March 24, 2016). Anova sold and marketed fish. It was insured under policies issued by Hanover that covered claims of "personal and advertising injury." A patent infringement and false advertising case was filed against Anova in the District Court for the District of Hawaii.The underlying complaint alleged Anova falsely, misleadingly, and deceptively advertised, promoted, and sold fish. The allegations covered a period of time between 1999 and 2012, a portion of which time Anova was covered by the Hanover policies. 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

Proposed Florida Construction Defect Act

January 09, 2015 — Beverley BevenFlorez-CDJ STAFF
Michael J. Furbush and Thomas P. Wert of Roetzel & Andress discussed Florida’s House Bill 87, which proposes to “substantially overhaul Florida’s Construction Defect Act, Chapter 558, requiring property owners to provide more detailed notice of the alleged defect and imposing sanctions on property owners who make frivolous claims.” Representative Kathleen Passidomo sponsored the bill, which “requires claimants to provide additional details about the alleged defect in the notice of claim, including the specific location of each alleged defect, and the specific provisions of the building code, plans, or specifications that serve as the basis of the defect claim. The failure to include this information in the notice of claim would be considered prima facie evidence of a defective notice.” Read the court decision
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Reprinted courtesy of

Construction Contractor “Mean Tweets” Edition

June 04, 2024 — Garret Murai - California Construction Law Blog
Back in the day, if someone had a problem with you the rules of school yard jungle dictated that they had better tell it to your face or you had the right to call them out on it. That, of course, was back then. These days, with social media seemingly everywhere (e.g., Yelp, Twitter, Facebook, etc.), if someone has a problem with you they tell you . . . as well as the rest of the world . . . to your digital face. Jimmy Kimmel has even made it a “thing” with his celebrity “Mean Tweets” segments. In Paglia & Associates Construction, Inc. v. Hamilton, 98 Cal.App.5th 318 (2023), homeowner Vanessa Hamilton was sued by her contractor Paglia & Associates Construction, Inc. doing business as Protech Construction after she posted critical comments to her blog and on Yelp about work performed by Paglia at her home. The Paglia Case In or about 2016, after a tree fell on her house, Hamilton’s insurer, Safeco, recommended Paglia to perform the repairs. Paglia and Hamilton entered into a repair contract in 2016 but Paglia did not finish the work until sometime in 2017 claiming that the repair was extensive because Hamilton’s circa 1923 home was in poor condition and current building codes required extensive reconstruction. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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