714.701.9180
CONSTRUCTION DEFECT NEWS
Reject key on typewriter

In Lenick Constr. v. Selective Way Ins. Co., the Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects.

Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld

Wednesday, August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii

The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018).

Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall.

The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights.

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

Mr. Eyerly may be contacted at te@hawaiilawyer.com

Read the full story…
Gavel resting on stand

Gus Sara of White and Williams LLP discusses the nuances of the Muncie v. Wiesemann case.

Supreme Court of Kentucky Holds Plaintiff Can Recover for Stigma Damages in Addition to Repair Costs Resulting From Property Damage

Wednesday, August 15, 2018 — Gus Sara - The Subrogation Strategist

In Muncie v. Wiesemann, 2018 K.Y. LEXIS 257, the Supreme Court of Kentucky considered whether stigma damages[1] in a property casualty case are recoverable in addition to the costs incurred to remediate the actual damage. The court held that stigma damages are recoverable in addition to repair costs, but the total of the stigma damages and repair costs cannot exceed the diminution in the fair market value of the property. The court’s decision establishes that if the repair costs are insufficient to make the plaintiff whole, a recovery for stigma damages up to the amount of the diminution in the market value of the home is appropriate.

Appellants Cindy and Jim Muncie incurred significant property damage to their home as a result of an oil leak originating from a neighboring property owned by the Estate of Martha Magel. In 2011, Auto Owners Insurance Company (Auto Owners), the liability carrier for the Estate’s testatrix, Patricia Weisman, filed an impleader complaint in federal court to discharge its obligation to settle the third-party liability claims on behalf of Ms. Weisman. Auto Owners reached a settlement with the Muncies for $60,000 which represented the remediation costs for the actual damage to the property. The settlement release reserved the Muncies’ right to pursue a claim for stigma damages associated with the oil leak.

Reprinted courtesy of Gus Sara, White and Williams LLP

Mr. Sara may be contacted at sarag@whiteandwilliams.com

Read the full story…
Red white and blue star and banner

Newmeyer & Dillion LLP was selected as one of the 2018 Best Places to Work in Orange County in the category of medium sized companies.

Newmeyer & Dillion Named as One of the 2018 Best Places to Work in Orange County for Seventh Consecutive Year

Wednesday, August 15, 2018 — Newmeyer & Dillion

NEWPORT BEACH, Calif. – JULY 23, 2018 – Prominent business and real estate law firm Newmeyer & Dillion LLP is proud to be selected as one of the 2018 Best Places to Work in Orange County in the category of medium sized companies. This marks the seventh consecutive year Newmeyer & Dillion LLP has made the list, affirming that its profound commitment to professionalism and client service is shared among its workforce. The ranking was released in a special section of the Orange County Business Journal's July 23 issue.

Jeff Dennis, Newmeyer & Dillion's Managing Partner, commends the effort of each employee in achieving this result. "Together, we strive to maintain an innovative, collaborative and creative culture that cannot be matched anywhere else, and we are sincerely grateful for each of our employees' ongoing commitment to the firm's values."

The awards program was created in 2009 and is a project of the Orange County Business Journal and Best Companies Group. This county-wide survey and awards program was designed to identify, recognize and honor the best places of employment in Orange County, California, benefiting the county's economy, its workforce and businesses.

For more information on the survey process for the Best Places to Work in Orange County program, visit www.BestPlacestoWorkOC.com or contact Jackie Miller at 877-455-2159.

About Newmeyer & Dillion

For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.



714.701.9180

Construction Volume and Skills Shortages Rise Globally

August 15, 2018 — Joanna Masterson - Construction Executive

Global construction activity is increasing—with the exception of a notable reduction in the United Kingdom—but the industry faces more work with fewer workers, according to Turner & Townsend’s 2018 International Construction Market Survey.

Of the 46 markets examined, 21 are expected to warm up, 23 are stable and only two are likely to cool off. Infrastructure stands out as the hottest sector for the future, followed by commercial construction.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

714.701.9180

Arizona Upholds Assignment of Post-Loss Benefits

August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii

The Arizona Court of Appeals upheld the insured's assignment of benefits despite the policy's anti-assignment provision. Farmers Ins. Exchange v. Honorable David Udall, 2018 Ariz. Ct. App. LEXIS 94 (Ariz. June 12, 2018).

Farmers issued homeowners' policies to four homeowners who later required water damage mitigation and restoration services. Each of the policies included an anti-assignment provision stating that the insured's "interest in this policy may not be transferred o another person without [Farmers'] written consent." Each insured, however, signed a "Work Order Agreement & Assignment of Benefits" authorizing the remediation company, EcoDry Restoration of Arizona, LLC, to perform emergency water mitigation services and then assign insurance rights under the policies to EcoDry. The assignment authorized and instructed the insurance company to pay directly to EcoDry the amount shown in the final billing for work done by EcoDry.

Mr. Eyerly may be contacted at te@hawaiilawyer.com

714.701.9180

P3 Delivers Architect's Original Vision for Gateway Arch Park

August 15, 2018 — Jeff Yoders – Engineering News-Record

The largest public-private partnership investment in a national park is delivering a new experience for visitors to the landmark Gateway Arch in St. Louis, which was designed by the late-architect Eero Saarinen. The 10-year path to the opening this month was full of hurdles, including floods. And the project’s 46,000-sq-ft underground visitor center expansion needed to be built without shutting down the arch, which gets nearly 3 million visitors each year.

Mr. Yoders may be contacted at yodersj@enr.com

714.701.9180

NBI Construction Law: Ultimate Bootcamp Seminar

August 8, 2018 — Beverley BevenFlorez-CDJ STAFF

Attendees of this one-day seminar presented by the National Business Institute will learn the following: how to avoid future disputes by drafting and negotiating effective construction contracts; Disentangle construction project indemnity and insurance issues; Understand how to deal with unsatisfactory plans and specifications; Discover reasonable strategies for handling unavoidable disputes that may cause changes or delays; and Examine methods for approaching various payment issues associated with construction projects.

November 14th, 2018
Video Webcast

714.701.9180
Featured Experts For More Visit Us At:
www.constructiondefectjournal.com

Builders Standard of Care Expert Witness and Consulting General Contractor area area area

Consulting Civil Engineer and General Contracting Expert Witness Arrange No Charge Initial Consultation Concerning Your Matter. area area

Builders Standard of Care Expert Witness and Consulting General Contractor area area area

Coffee cup spilling coffee beans

Read the directions, or, in this case, the statutes, to avoid the risk of spilling coffee all over yourself.

California Contractor Spills Coffee on Himself by Failing to Stay Mechanics Lien Action While Pursuing Arbitration

Tuesday, August 14, 2018 — Garret Murai - California Construction Law Blog

It bugs the Mrs. that I have a habit of reading the directions. “Just plug the darn thing in!” said the Mrs. when we got a new coffee maker to replace our old one which we’ve had since I think before we were married (Life Lesson No. 347: Get a coffee maker you really, really like because they last forever). “But . . . the directions?,” I said.

By the time I had finished reading the instruction manual I could smell the coffee brewing in the kitchen. Granted, the Mrs. is more practical than I am in many ways (e.g., “You know, you didn’t need to buy 10 cans of corn to get the 10 for $10 discount. I guess you’re going to be eating a lot of corn”). But still. What might have happened if there was a serious coffee mishap?

And worrier as I may be mishaps can happen if you don’t read the directions. James Zenovic didn’t read the directions, and here’s his story . . .

Von Becelaere Ventures, LLC v. Zenovic
In Von Becelaere Ventures, LLC v. Zenovic, Case No. D072620 (June 6, 2018), James Zeonovic doing business as James Zeonovic Construction entered into a construction contract to build a single-family house for Von Becelaere Ventures, LLC in Laguna Beach, California. The construction contract included an arbitration provision that stated:

If any dispute arises concerning this Contract or the interpretation thereof, of concerning construction of the Improvements, or the Limited Warranty, customer service, defects, damages, or obligations therewith (a “Construction Dispute”), such Construction Dispute will be settled by binding arbitration.

Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP

Mr. Murai may be contacted at gmurai@wendel.com

Read the full story…
Man in blazer with arms folded

Utility argued that the easement’s indemnity provision violated Georgia’s construction anti-indemnity statute.

Court Dismisses Cross Claims Against Utility Based on Construction Anti-Indemnity Statute

Tuesday, August 14, 2018 — David R. Cook - Autry, Hall & Cook, LLP

When a plane crashed and several passengers and crew died or were injured, their representatives sued several defendants, including a nearby plant owner, Milliken & Company (“Plant Owner”), based on claims that transmission lines on Plant Owner’s property were too close to the runways, were too high, and encroached on the airport easements. Plant Owner cross claimed against utility owner, Georgia Power Company (“Utility”). Plant Owner’s claim was based on an easement it granted to Utility, which required Utility to indemnify it for any claims arising out of Utility’s construction or maintenance of the transmission lines.

In defense, Utility argued that the easement’s indemnity provision violated Georgia’s construction anti-indemnity statute.

Reprinted courtesy of David R. Cook, Autry, Hall & Cook, LLP

Mr. Cook may be contacted at cook@ahclaw.com

Read the full story…
Red box standing out among white boxes

The point of a professional liabilities exclusion is simply to eliminate a CGL policy for a contractor serving as a professional liability policy.

CGL Policies and the Professional Liabilities Exclusion

Tuesday, August 14, 2018 — David Adelstein - Florida Construction Legal Updates

Commercial general liability (CGL) policies for contractors traditionally contain a professional liabilities exclusion. This exclusion is generally added through a specific endorsement to eliminate coverage for professional services. Read the endorsement The point of the exclusion, in a nutshell, is simply to eliminate a CGL policy for a contractor serving as a professional liability policy.

Contractors need to appreciate a professional liabilities exclusion added through endorsement because oftentimes there are delegated design components they are responsible for. Perhaps the contractor value engineered a system and is responsible for engineering and signing and sealing the engineered documents (through its subcontractor) associated with that system. Perhaps there is a performance specification that requires the contractor to engineer a system. Perhaps there is a design-build component. Regardless of the circumstance, this professional liabilities exclusion can certainly come into play, particularly if a defect is raised with the design or professional services associated with the engineered system.

Reprinted courtesy of David Adelstein, Kirwin Norris

Mr. Adelstein may be contacted at dma@kirwinnorris.com

Read the full story…
714.701.9180
CONSTRUCTION DEFECT NEWS
Construction worker with shovel next to tree illustration

Gregory Capps of White and Williams LLP discusses the case Pennsylvania Manufacturers’ Association Insurance Company v. Johnson Matthey, Inc., et al.

Pennsylvania Supreme Court Will Not Address Trigger for DEP Environmental Cleanup Action at This Time

Tuesday, August 14, 2018 — Gregory Capps - White and Williams LLP

On July 18, 2018, in Pennsylvania Manufacturers’ Association Insurance Company v. Johnson Matthey, Inc., et al., No. 24 MAP 2017 (Pa. July 18, 2018), the Pennsylvania Supreme Court quashed the Pennsylvania Manufacturers’ Association’s (PMA) appeal seeking review of a ruling denying its motion for summary judgment for an order that coverage for the cleanup of a toxic waste site is limited to the policy in effect when property damage was first discovered. In short, the court found the lower court’s ruling only narrowed the dispute between the parties and is, therefore, interlocutory and not appealable at this time.

Reprinted courtesy of Gregory Capps, White & Williams LLP

Mr. Capps may be contacted at cappsg@whiteandwilliams.com

Read the full story…
Decision key in keyboard

Ohio State may become the latest state to hold that a general contractor's commercial general liability ("CGL") insurance policy may provide coverage for damage caused by a subcontractor's defective construction work.

Ohio Supreme Court Case to Decide Whether or Not to Expand Insurance Coverage Under GC’s CGL Insurance Policies

Tuesday, August 14, 2018 — David Suggs – Bert L. Howe & Associates, Inc.

According to W. Matthew Bryant of Saul Ewing Arnstein & Lehr LLP, the Ohio Supreme Court will be deciding whether or not a general contractor's commercial general liability ("CGL") insurance policy may provide coverage for damage caused by a subcontractor's defective construction work.

Bryant explained the status quo in Ohio: “Since 2012, Ohio has followed the rule that a CGL policy would not cover damage caused by a contractor to the contractor's own work.” That could change depending on how the Ohio Supreme Court rules in an upcoming case: “The Ohio Supreme Court will decide whether to affirm or overturn Ohio Northern University v. Charles Construction Services, Inc., 77 N.E.3d 538 (Ohio Ct. App. 2017) ("ONU"), an Ohio Court of Appeals decision holding that CGL coverage may exist for property damage caused by faulty work performed by the subcontractor of an insured general contractor.”


Read the full story…
Handcuffed person

Louis Ciminelli was convicted of fraud and conspiracy in a scheme to rig bids on a $750-million upstate New York manufacturing project.

Jury Convicts Ciminelli, State Official in Bid-Rig Case

Tuesday, August 14, 2018 — Engineering News-Record

After a four-week trial but with less than two days of deliberation, a Manhattan federal jury convicted Louis Ciminelli, former head of the now-defunct Buffalo, N.Y., contractor LPCiminielli, and Alain Kaloyeros, the fired ex-head of SUNY Polytechnic Institute in Albany, N.Y., of fraud and conspiracy in a scheme to rig bids on a $750-million upstate New York manufacturing project.

Reprinted courtesy of Engineering News-Record

ENR may be contacted at ENR.com@bnpmedia.com

Read the full story…

Construction Worker Killed in New Home Site

714.701.9180
CONSTRUCTION DEFECT NEWS
Cave with water

Xylem, which has a market capitalization of about $12 billion, has previously helped in rescue operations after mine collapses in Pennsylvania and Chile.

U.S. Firm Helps Thais to Pump Water From Cave to Save Boys

Tuesday, August 14, 2018 — Dan Murtaugh - Bloomberg

Like much of the world, Patrick Decker has been engrossed in the saga of 12 boys and their soccer coach who became trapped in a flooded cave in Thailand. Unlike most, Decker is in a position to do something about it.

As chief executive officer of Xylem Inc., one of the world’s top water technology firms, Decker spent much of last week reaching out to Thai officials and mobilizing his company of 17,000 employees to help. Decker said he sent four engineers to the cave site, and they assisted rescuers by boosting pumping power 40 percent. Thai Navy SEALs and international cave diving experts extracted eight boys over Sunday and Monday.

Reprinted courtesy of Dan Murtaugh, Bloomberg
Read the full story…


Light coming out of tunnel

Musk says he would deliver the link in about three years, citing proprietary technology, smaller-diameter tunnels and better tunnel-boring machines.

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

Tuesday, 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.

Reprinted courtesy of Jeff Yoders, ENR

Mr. Yoders may be contacted at yodersj@enr.com

Read the full story…


Time with Hour Glass

A lawsuit could take as short as a day to as long as multiple years to conclude.

How Long Does a Civil Lawsuit Take?

Tuesday, August 14, 2018 — Bremer Whyte Brown & O’Meara

How 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).

Reprinted courtesy of Bremer Whyte Brown & O’Meara
Read the full story…


Construction worker and crane

Falls from elevated surfaces represent more than 30 percent of all construction claim payments.

Protect Workers From Falls: A Leading Cause of Death

Tuesday, August 14, 2018 — Mark McGhiey - Construction Executive

One of the leading causes of death for construction workers is falls from elevated surfaces, according to the Bureau of Labor Statistics. In 2016, these accidents accounted for more than 30 percent of all construction fatalities. The top four causes of worker deaths (excluding highway collisions) in the private sector construction industry are:

  1. falls: 384 (38.7%);
  2. struck by object: 93 (9.4 percent);
  3. electrocutions: 82 (8.3 percent); and
  4. caught-in/between:1 72 (7.3 percent).

One of the most common — and costly — causes of claims occur when construction workers fall from elevated surfaces. These accidents represent more than 30 percent of all construction claim payments.

Reprinted courtesy of Mark McGhiey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.



Read the full story…


Builders Standard of Care Expert Witness and Consulting General Contractor area area area

Builders Standard of Care Expert Witness and Consulting General Contractor area area area

Builders Standard of Care Expert Witness and Consulting General Contractor area area area

714.701.9180
714.701.9180
714.701.9180
Construction Defect Journal is aggregated from a variety of news sources, article submissions, contributors, and information from industry professionals.
No content on this site should be construed as legal advice or expert opinion. By viewing this site you agree to be bound by its terms and conditions CONSTRUCTION NEWS constructiondefecteminars.html constructionDefectChannel.html contactCDJ.html