Anaheim California Construction Expert Witness Directory

Breach of Contract Exclusion Bars Coverage for Construction Defect Claim

March 19, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court determined the policy's breach of contract exclusion precluded coverage for a claim against the general contractor insured for construction defects. Mt. Hawley Ins. Co. v. McAtamncy, 2024 U.S. Dist. LEXIS 497 (N. D. Cal. Jan. 2, 2024). McAtamney, a general contractor dong business as Kilrea Construction, was hired by Jeffrey Horowitz for a home-renovation project. After completion of the project, Horowitz discovered defects in the work. He filed a complaint alleging that Kilrea breached obligations to construct and complete the work in an expeditious and workmanlike manner, free from any faults and defects. He brought claims for breach of contract, breach of implied warranty, negligence, neglignet supervision, and declaratory relief. Kilrea's insurer, Mt. Hawley, agreed to defend, but reserved the right to later deny coverage for any uncovered claims. The breach of contract exclusion provided there was no duty to defend a claim for property damage arising from breach of an express or implied contract or warranty. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Suffolk Pauses $1.5B Boston Tower Project for Safety Audit After Fire

April 22, 2024 — James Leggate - Engineering News-Record
The team building the $1.5-billion, 51-story South Station Tower in Boston voluntarily shut down the jobsite April 9 for a safety stand down and audit after a small fire broke out, according to contractor Suffolk Construction. No one was injured. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story...

Repairs to Hurricane-damaged Sanibel Causeway Completed in 105 Days

February 12, 2024 — Marigo Farr - Engineering News-Record
Permanent repairs to the roadway portion of the Sanibel Causeway are substantially complete one year and four months after more than 6,000 Sanibel Island residents lost access to the mainland in the wake of Hurricane Ian. The Superior Construction and The De Moya Group joint-venture team, responsible for the work, say that all travel lanes are now permanently open to the island off Florida's southwest coast near Fort Myers. Reprinted courtesy of Marigo Farr, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story...

Construction Contract Basics: Attorney Fee Provisions

November 13, 2023 — Christopher G. Hill - Construction Law Musings
I have discussed the need for attorney fee provisions in your construction contracts in prior posts here at Construction Law Musings, but thought it merited a restatement of the reasons for the inclusion of such fee provisions (and changing of such provisions when presented) here with the second of my construction contract basics posts. Why would you want such a provision? The answer is that without it, or a statute specifically allowing for such fees, a Virginia court will not award your attorney fees without such a provision. Virginia, and a lot of other states, follow the so-called “American Rule” when it comes to attorney fees and costs. In short, that rule states that the parties to litigation pay their own way unless they agree otherwise. While it may seem unfair to make a successful litigant pay for the privilege of being right, that is the rule in Virginia. Throw in the fact that Virginia courts strictly construe construction contracts and voila we have a situation where without a provision in the contract stating that one party or both will be able to collect attorney fees should that contractor or subcontractor prevail, a construction professional that gets sued (whether rightly or wrongly) will be left with a hefty attorney fees bill and no way to recoup those fees through the courts or any other method. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

A Termination for Convenience Is Not a Termination for Default

April 22, 2024 — David Adelstein - Florida Construction Legal Updates
A termination for convenience is NOT a termination for default. They are NOT the same. They should NOT be treated as the same. I am a huge proponent of termination for convenience provisions because sometimes a party needs to be able to exercise a termination for convenience, but the termination is not one that rises to a basis for default. However, exercising a termination for convenience does not mean you get to go back in time and convert the termination for convenience into a termination for default. It does not work like that. Nor should it. An opinion out of the Civilian Board of Contract Appeals – Williams Building Company, Inc. v. Department of State, CBCA 7147, 2024 WL 1099788 (CBCA 2024 – demonstrates a fundamental distinction between a termination for convenience and a termination for default, i.e., that you don’t get to conjure up defaults when you exercise a termination for convenience:

Because a termination for convenience essentially turns a fixed-price construction contract into a cost-reimbursement contract, allowing the contractor to recover its incurred performance costs, the resolution of this appeal will involve identifying the total costs that [Contractor] incurred in performing this contract before [Government] terminated it for convenience. Since [Government] terminated the contract for convenience rather than for default, it no longer matters whether, in the past,[Contractor] acted intentionally in overstating the amount of its incurred costs or committed a contract breach. Ultimately, as permitted in response to a termination for convenience, [Contractor] will recover those allowable costs that [Contractor]establishes it incurred in performing the contract.

Williams Building Company, supra.

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Atlanta Office Wins Defense Verdict For Property Manager On Claims By Vendor, Cross-Claims By Property Owner

January 08, 2024 — Lewis Brisbois Newsroom
Atlanta, Ga. (December 18, 2023) – Atlanta Partner Adi Allushi and Associate Cecilia Walker recently secured a defense verdict for a national property management corporation on claims brought by a vendor and cross-claims lodged by the property owner. Lewis Brisbois’ client is a national corporation, over a century old, that managed over 140 properties with 40,000 units. In 2019, the client entered the Georgia market managing three apartment complexes owned by a hedge fund in New York. The owner terminated without cause the client within six months, and several vendors – including the plaintiff, who was a remedial services provider – were not paid during the last few months and the transition period. The plaintiff sued the owner for the unpaid services, as well as an incorrect entity it believed to be the client. The owner cross-claimed against the client for fraudulent misrepresentations. Based on the misnomer statute, the court granted default judgment against the client. Read the full story...
Reprinted courtesy of Lewis Brisbois

No Coverage Under Installation Policy When Read Together with Insurance Application

January 16, 2024 — David Adelstein - Florida Construction Legal Updates
A recent case out of the Eleventh Circuit denied an underground contractor’s claim under what appears to be a commercial property installation floater policy (inland marine coverage) that covers the contractor’s materials. Whereas a builder’s risk policy is more expansive, an installation floater is narrower and can provide protection to a contractor for materials and equipment in transit, stored, or being installed subject to the terms of the installation floater policy. It can provide coverage to a trade subcontractor for materials that aren’t covered by builder’s risk. In Travelers Property Casualty Company of America v. Talcon Group, LLC, 2023 WL 8798053 (11th Cir. 2023), an underground utility contractor that had a general contractor’s license had an installation policy that provided coverage “only for underground utility operations and the site development work tied to those operations.” Talcon Group, supra, at *1. The utility contractor was constructing two residential homes that was on land owned by an affiliated family entity. During construction of the residential homes, a wildfire destroyed the homes prior to the issuance of certificates of occupancy. The utility contractor submitted a notice of loss to its insurance carrier that provided the installation policy. The carrier denied the claim because the construction of the homes was NOT the same type of work as the installation of underground utilities which was covered. An insurance coverage lawsuit ensued. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Insurer Has Duty to Defend Faulty Workmanship Claim

January 22, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The magistrate judge recommended a determination that the insurer owed a defense to the subcontractor sued for faulty workmanship. Hanover Lloyds Ins Co. v. Donegal Mut. Ins. Co., 2023 U.S. Dist. LEXIS 180877 (W.D. Texas Oct. 5, 2023). Poe Investments, Ltd. entered into an agreement with Jordan Foster Construction, LLC for construction of an auto sales and service facility ("Facility"). Jordan hired multiple subcontractors, including Texas Electrical Contractors, LLC ("TEC"). Subsequently, Poe sold the Facility to 6330 Montana, LLC ("Montana"). Montana filed suit against Jordan for breach of express warranties, breach of contract, and negligence. Jordon filed a third-party complaint against its subcontractors, including TEC. Jordan alleged that TEC provided "defective and negligent construction work" while carrying out the provision and installation of electrical and fire alarm systems at the Facility. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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