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    Construction Expert Witness Builders Information
    Odem, Texas

    Texas Builders Right To Repair Current Law Summary:

    Current Law Summary: HB 730 amended the Texas Property Code by adding Title 16 and amending chapter 27. Overseen by the Texas Residential Construction Commission (TRCC) the code asserts that a contractor is not liable for any percentage of damages caused by failure to take reasonable action to mitigate damages or take reasonable action to maintain the residence. It also limits damages, requires written notification and response for right of repair and defines warranty periods. Additionally, SB 754 states“(5-10 Sec. 27.107) a contractor may assert as an affirmative defense to an allegation of a defect made in a complaint filed under this subchapter that the defect is the result of abuse, neglect, or unauthorized modifications or alterations of the home.”


    Construction Expert Witness Contractors Licensing
    Guidelines Odem Texas

    No state license is required, however, general contractors must get permits at the local level. Separate boards license HVAC, and plumbing trades.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Laredo Builders Association
    Local # 4593
    201 W Hillside Suite 3
    Laredo, TX 78041
    http://www.laredobuilders.org

    Builders Association of Corpus Christi
    Local # 4521
    5325 Yorktown Blvd
    Corpus Christi, TX 78413
    http://www.bacctexas.org/

    Builders Association of Victoria
    Local # 4572
    5105 E Airline Rd
    Victoria, TX 77904
    http://www.vctbuilders.org

    Galveston Area Builders & Remodelers Association
    Local # 4533
    P O Box 1037
    Santa Fe, TX 77517
    http://www.galvestonbuilders.org/

    Rio Grande Valley Home Builders Association
    Local # 4534
    419 Nolana Ste C
    McAllen, TX 78504


    Builders Association of Greater San Antonio
    Local # 4560
    3625 Paesanos Parkwary
    San Antonio, TX 78231
    http://www.sabuilders.com

    Greater New Braunfels Home Builders Association
    Local # 4503
    625 W San Antonio St
    New Braunfels, TX 78130
    http://www.newbraunfelshomebuilders.com


    Construction Expert Witness News and Information
    For Odem Texas

    Negligent Misrepresentation in Sale of Building Altered without Permits

    No Coverage for Construction Defects Under Alabama Law

    Lower Court “Eminently Reasonable” but Wrong in Construction Defect Case

    Crane Dangles and So Do Insurance Questions

    Reference to "Man Made" Movement of Earth Corrects Ambiguity

    Insurer’s Discovery Requests Ruled to be Overbroad in Construction Defect Suit

    West Coast Casualty Promises Exciting Line Up at the Nineteenth Annual Conference

    Public Relations Battle over Harmon Tower

    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    Condo Owners Worried Despite Settlement

    New Web Site Tracks Settled Construction Defect Claims

    No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”

    No Coverage For Construction Defects When Complaint Alleges Contractual Damages

    Boston Tower Project to Create 450 Jobs

    Virginia Homebuilding Slumps After Last Year’s Gain

    Ceiling Collapse Attributed to Construction Defect

    Des Moines Home Builders Building for Habitat for Humanity

    $5 Million Construction Defect Lawsuit over Oregon Townhomes

    Toxic Drywall Not Covered Under Homeowner’s Policy

    JDi Data Introduces Mobile App for Litigation Cost Allocation

    Defective Drains Covered Despite Water Intrusion Exclusion

    Construction Bright Spot in Indianapolis

    Construction Workers Unearth Bones

    Avoid Gaps in Construction Defect Coverage

    Harmon Tower Construction Defects Update: Who’s To Blame?

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    Florida Construction Defect Case Settled for $3 Million

    New OSHA Fall Rules to Start Early in Minnesota

    Insurance Company Must Show that Lead Came from Building Materials

    El Paso Increases Surety Bond Requirement on Contractors

    Webinar on Insurance Disputes in Construction Defects

    Appeals Court Upholds Decision by Referee in Trial Court for Antagan v Shea Homes

    Liability policy covers negligent construction: GA high court

    Construction Defect Claim Did Not Harm Homeowner, Court Rules

    Southern California Lost $8 Billion in Construction Wages

    Fourteen More Guilty Pleas in Las Vegas Construction Defect Scam

    In Oregon Construction Defect Claims, “Contract Is (Still) King”

    South Carolina Law Clarifies Statue of Repose

    Nevada Supreme Court Reverses Decision against Grader in Drainage Case

    Construction Defects Lead to Demolition of Seattle’s 25-story McGuire Apartments Building

    Amerisure Case to be Heard by Texas Supreme Court

    Homeowner Has No Grounds to Avoid Mechanics Lien

    Consulting Firm Indicted and Charged with Falsifying Concrete Reports

    California Appeals Court Remands Fine in Late Completion Case

    Micropiles for bad soil: a Tarheel victory

    Celebrities Lose Case in Construction Defect Arbitration

    Mississippi exclusions j(5) and j(6) “that particular part”

    Badly Constructed Masonry Walls Not an Occurrence in Arkansas Law

    Arizona Homeowners Must Give Notice of Construction Defect Claims

    Timing of Insured’s SIR Payment Has No Effect on Non-Participating Insurer’s Equitable Contribution to Co-Insurer

    One World Trade Center Due to Be America’s Tallest and World’s Priciest

    No-Show Contractor Can’t Hide from Construction Defect Claim

    Hovnanian Increases Construction Defect Reserves for 2012

    Contractor Underpaid Workers, Pocketed the Difference

    A Downside of Associational Standing - HOA's Claims Against Subcontractors Barred by Statute of Limitations

    Fire Reveals Defects, Appeals Court Affirms Judgment against Builder

    Battle of “Other Insurance” Clauses

    Brown Paint Doesn’t Cover Up Construction Defects

    Architect Not Responsible for Injuries to Guests

    Pictorial Construction Terminology Dictionary — A Quick and Helpful Reference

    Former Zurich Executive to Head Willis North America Construction Insurance Group

    Environment Decision May Expand Construction Defect Claims

    Insurer Unable to Declare its Coverage Excess In Construction Defect Case

    MGM Seeks to Demolish Harmon Towers

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Rihanna Finds Construction Defects Hit a Sour Note

    Building Inspector Jailed for Taking Bribes

    Ohio Adopts Energy-Efficient Building Code

    Federal District Court Predicts Florida Will Adopt Injury In Fact Trigger

    Analysis of the “owned property exclusion” under Panico v. State Farm

    Godfather Charged with Insurance Fraud

    Who Is To Blame For Defective — And Still LEED Certified — Courthouse Square?

    Colorado “property damage” caused by an “occurrence” and exclusions j(5) and j(6) “that particular part”

    OSHA Cites Construction Firm for Safety Violations

    District Court’s Ruling Affirmed in TCD v American Family Mutual Insurance Co.

    Court Sends Construction Defect Case from Kansas to Missouri

    Another Colorado District Court Refuses to Apply HB 10-1394 Retroactively

    Contractor’s Home Not Covered for Construction Defects

    Driver’s Death May Be Due to Construction Defect

    Texas exclusions j(5) and j(6).

    Pennsylvania Court Extends Construction Defect Protections to Subsequent Buyers

    Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?

    Washington Court of Appeals Upholds Standard of Repose in Fruit Warehouse Case

    Florida: No Implied Warranties for Neighborhood Improvements

    Ghost Employees Steal Jobs from Legit Construction Firms

    Homeowner may pursue negligence claim for construction defect, Oregon Supreme Court holds

    Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy

    Recent Case Brings Clarity and Questions to Statute of Repose Application

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    Firm Sued For Construction Defects in Parking Garage
    Corporate Profile

    ODEM TEXAS CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Odem, Texas Construction Expert Witness Group at BHA, leverages from the experience gained through more than 5,500 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Leveraging from this considerable body of experience, BHA provides construction related trial support and expert services to Odem's most recognized construction litigation practitioners, commercial general liability carriers, owners, construction practice groups, as well as a variety of state and local government agencies.

    Construction Expert Witness News & Info
    Odem, Texas

    Increased Expenditure on Injuries for New York City School Construction

    August 16, 2012 — CDJ Staff

    You can buy a lot of bandages for $270 million, but even though the expenses are related to the New York City schools, the money is being budgeted by the School Construction Agency as what they expect to pay for injuries and liability expenses related to school construction. The New York Post notes that this is nearly ten times what the city spent in 2000 on workers' compensation and liability claims. Michael Elmdendorf of the General Contractors Association likened injury compensation to a broken slot machine, telling the Post, "when you pull that lever, you win." A spokesperson from the Department of Education, Margie Feinberg, attributed the rise to higher medical care costs.

    Read the full story…


    Yellow Brass Fittings Play a Crucial Role in Baker v Castle & Cooke Homes

    May 10, 2012 — CDJ Staff

    Baker v Castle & Cooke Homes Hawaii, et al. is a “class action filed by homeowners who allege that their homes have a construction defect. They allege that their plumbing systems include brass fittings susceptible to corrosion and likely to cause leaks. They bring this action against the developer of their homes and the manufacturers of the brass fittings.”

    Zurn, the manufacturer of the allegedly defective brass fittings, sought a dismissal, or if that could not be achieved, then “a more definite statement, of five of the six claims.” Zurn moved for summary judgment on the sixth claim, or alternately sought “summary judgment on one of the five claims it” sought to dismiss.” The court granted in part the motion, and denied the motion for summary judgment.

    The developer, Castle & Cooke, sought dismissal of the First Amended Complaint stating “that Plaintiffs have not complied with Hawaii’s Contractor Repair Act, chapter 672E of Hawaii Revised Statutes, which requires, among other things, a plaintiff to give a contractor the results of any testing done before filing an action against that contractor.” The court couldn’t determine “certain facts essential to ruling” on Castle & Cooke’s motion, and therefore denied the motion, but ordered Plaintiffs to submit requested material by the stated deadline.

    The Baker v Castle & Cooke case began with the Plaintiffs claim that the use of yellow brass fittings can lead to construction defects. They allege that “yellow brass is particularly susceptible to dezincification, a corrosion process in which zinc leaches into potable water that comes into contact with the brass. According to Plaintiffs, as the brass corrodes, it becomes porous and mechanically weak. Plaintiffs further allege that the PEX systems in the putative class members’ homes have begun to, or are about to, leak water into the walls, ceilings, and floors of their homes. Plaintiffs allege that the leakage will cause water damage and mold growth, exposing the occupants to toxins.”

    In response to the plaintiffs’ claims, Zurn argued “because their yellow brass fittings have not failed to date, Plaintiffs fail to allege, and have no evidence showing, that they have suffered any actual injury.” Plaintiffs replied, “even if the fittings have not failed as of today, failure in the future is inevitable.”

    However, the court stated, “whether Plaintiffs have suffered any injury, or whether Plaintiffs are attempting to proceed based solely on future injury, implicates Plaintiffs’ standing to bring this action, as well as whether this case is ripe for adjudication.” The court has requested the parties to submit “supplemental briefing on whether this case should be dismissed pursuant to Rule 12(b)(1). In supplemental briefs, Zurn argues that dismissal is appropriate because Plaintiffs lack standing, and Castle & Cooke argues that dismissal is appropriate because Plaintiffs’ claims are not ripe.”

    The court continues to discuss the problem of standing: “To establish standing, a plaintiff must demonstrate three things. First, the plaintiff must suffer an "injury-in-fact," which means that there must be a concrete and particularized "invasion of a legally protected interest" and the invasion is actual or imminent. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992). Second, the injury must be fairly traceable to the challenged action. Third, a favorable decision must be likely to redress the injury. Id. It is the first element (injury-in-fact) that is in issue here.”

    The court found that the plaintiffs do have standing: “Even if the court could not rely on the allegations that the pipes will soon leak, the court would conclude that, for standing purposes, Plaintiffs have a sufficient injury-in-fact in the form of their alleged economic loss.” In a hearing, Plaintiffs argued that their homes had decreased in value.

    The court also denied Castle & Cooke’s motion to dismiss based on a lack of ripeness, stating “the same reasons Plaintiffs satisfy the injury-in-fact requirement for standing purposes, they satisfy the constitutional ripeness requirement.”

    Plaintiffs asserted six counts against Zurn. Zurn, in response, made a motion to dismiss counts VIII, IX, X, XII, and XIII. The court granted Zurn’s motion for Counts VIII, IX, and X only: “Counts VIII (product liability), IX (negligence), and X (strict liability) sound in tort. Zurn argues that, because Plaintiffs allege no injury other than to the PEX systems and the yellow brass fittings themselves, the economic loss rule bars their tort claims. The court agrees.”

    The court disagreed with Zurn’s motion regarding Count XII: “Count XII asserts that Zurn has breached the implied warranty of merchantability. Zurn argues that Count XII is barred by the applicable statute of limitations and that Plaintiffs do not sufficiently allege an injury. The court disagrees.”

    Zurn’s motion regarding Count XIII was also denied: “Count XIII asserts that Zurn violated section 480-2 of Hawaii Revised Statutes.” Furthermore, “Plaintiffs allege that Zurn ‘engaged in unfair and deceptive acts or practices when [it] designed, manufactured and sold Yellow Brass Fittings.’ Zurn argues that Plaintiffs fail to state a claim under section 480-2(a) because their claims are barred by the statute of limitations and they do not adequately allege reliance or a cognizable injury. The court disagrees.”

    The court denied the motion for summary judgment with respect to Counts XI and XII.

    Castle & Cooke sought to dismiss “Plaintiffs’ claims against it under section 672E-2 of Hawaii Revised Statutes, which provides for dismissal when claimants fail to comply with chapter 672E.” There was some discussion regarding the test results. Apparently, the plaintiffs had failed to provide a written notice of claim at least 90 days before filing the action. However, it is unclear if the Plaintiffs have since complied with the requirements of the chapter. “The court has received no supplemental information from either party about whether any test results from another case have been turned over or whether those materials are subject to a confidentiality agreement. The record at this point does not establish noncompliance with the requirement in chapter 672E to provide such information. The court therefore denies the motion to dismiss.”

    In summary, “Zurn’s motion to dismiss is granted as to Count VIII, Count IX, and Count X. Zurn’s motion to dismiss is denied with respect to Plaintiffs’ other claims. Zurn’s request for a more definite statement and its summary judgment motion are denied. Plaintiffs are given leave to file an amended Complaint no later than May 21, 2012.” Furthermore, “the court denies Castle & Cooke’s motion, but directs Plaintiffs to file, within two weeks, either a certificate of compliance with section 672E-3(c), or an explanation as to why they have not complied. Castle & Cooke may submit a response within two weeks of Plaintiffs’ submission. Each party’s submission is limited to 1000 words.”

    Read the court’s decision…


    Water District Denied New Trial in Construction Defect Claim

    August 16, 2012 — CDJ Staff

    The United District Court in Tampa, Florida has rejected the motion by Tampa Bay Water for a new trial in their claims that HDR Engineering negligently designed the C.W. Bill Young Regional Reservoir. The claims went to a jury trial, at the end of nineteen days, the jury deliberated for four hours, finding for HDR Engineering. In rejecting Tampa Bay’s motion, the judge noted that “on close examination, TBW’s contentions have little to do with the factual determinations of the jury, which evidently concluded that TBW did not meet its burden of proof, an unsurprising conclusion, considering HDR’s evidence and the weaknesses in TBW’s evidence.”

    The court cited an earlier decision that “a new trial may be granted where the jury’s ‘verdict is against the great, not merely the greater weight of the evidence.’” However, the court found that the jury’s verdict “was well supported by the evidence” and that “TBW’s case showed signs of weakness at virtually every turn.” TBW’s expert “changed his opinion late in the case concerning the culpability of the contractor.” As a result, “Brumund’s change in opinions effectively bolstered HDR’s faulty construction defense.”

    TBW also raised claims a pre-trial order prevented it “from introducing evidence that HDR did not fulfill its contractual quality control responsibilities” and that evidentiary rulings prevented “TBW from introducing evidence concerning quality control.” However, TBW dismissed its claims over quality control, then “attempted no less than three times during ?Ķ testimony to introduce evidence of the purpose of the quality control requirement and quality control assurance.”

    TBW also contended “that it was precluded from introducing evidence that HDR’s inspectors never reported that the protective layer exceeded three feet after inspecting the work as part of HDR’s quality control duties.” The court noted that “TBW asked these very questions of HDR’s Engineer of Record.” The court also found that testimony regarding photographs of the construction was properly excluded as TBW never entered the photos into evidence.

    TBW had made an argument for a jury view. Prior the trial “after discussion, and to their credit, the parties agreed to a jointly-prepared helicopter ‘flyover’ video.” The court noted that “the size and physical characteristics of the reservoir were adequately and effectively depicted in the video.” The hazards the jury did not, then, have to encounter included the narrow, unpaved rim of the reservoir, snakes, and alligators.

    Read the court’s decision…



    Texas “Loser Pays” Law May Benefit Construction Insurers

    June 7, 2011 — CDJ Staff

    Under a new law, Texas HB 274, the Texas Supreme Court will be making rules for motions to dismiss and to expedite suits of less than $100,000. The law also contains two “loser pays” provisions. If a lawsuit is found dismissed for having “no basis in fact or law,” the losing side must pay attorney costs. The other provision caps award of attorney fees if plaintiffs reject settlement offers. Texas Lawyer quotes Houston attorney Mike Gallagher as saying this will affect “the practice of everyone who handles significant lawsuits.”

    Gregory Marcum, whose practice includes construction defect litigation, plans to contact insurance companies, as the new law may save them money. “It will definitely be a factor in the defense strategy for handling a case.” He notes that “any insurance carrier would want that done.”

    Marcum notes that the offer-of-settlement rules only apply when cases go to trial. “Almost all cases settle.”

    Read HB 274

    Read the full story…


    Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

    November 18, 2011 — Tred Eyerley, Insurance Law Hawaii

    Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

    Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

    The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

    On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

    Read the full story…

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


    Construction Defect Journal Seeks Article Submissions Regarding SB800 and Other Builders Right to Repair Laws

    October 28, 2011 — CDJ Staff

    As we approach the tenth anniversary of the passage and signing of SB800, California’s right-to-repair law, we’d like to hear your reactions to the law, your experiences with it, and your thoughts on it and right-to-repair laws in other states.

    We invite you to submit articles either reacting to SB800 or on other matters relevant to construction defect and claims issues. You can promote your firm’s capabilities and get valuable exposure through the publication of your articles. Construction Defect Journal is widely read by our highly targeted audience of decision makers, construction attorneys, builders, owners, and claims professionals.

    Articles may contain relevant images, your firm’s name, and links to your corporate website or third parties and can be submitted through e-mail to submitstory@constructiondefectjournal.com. Please remember to include your contact information if you would like it to be published with your content. If you are submitting photos or PDF documents with your article, please send them as e-mail attachments. Items submitted are assumed to be cleared for publishing upon receipt by CDJ.

    Normally articles are published in full, although we reserve the right to edit content for space purposes. All articles submitted are considered for publication. For additional questions please contact editor@constructiondefectjournal.com.


    District Court’s Ruling Affirmed in TCD v American Family Mutual Insurance Co.

    May 10, 2012 — CDJ Staff

    In the case, TCD, Inc. v American Family Mutual Insurance Company, the district court’s summary judgment was in favor of the defendant. In response, the Plaintiff, TCD, appealed “on the ground that the insurance company had no duty to defend TCD under a commercial general liability (CGL) insurance policy.” The appeals court affirmed the decision.

    The appeals ruling provides a brief history of the case: “This case arises out of a construction project in Frisco, Colorado. The developer, Frisco Gateway Center, LLC (Gateway), entered into a contract with TCD, the general contractor, to construct a building. TCD entered into a subcontract with Petra Roofing and Remodeling Company (Petra) to install the roof on the building. The subcontract required Petra to "indemnify, hold harmless, and defend" TCD against claims arising out of or resulting from the performance of Petra’s work on the project. The subcontract also required Petra to name TCD as an additional insured on its CGL policy in connection with Petra’s work under the subcontract.”

    Furthermore, “TCD initiated this case against Petra and the insurance company, asserting claims for declaratory judgment, breach of insurance contract, breach of contract, and negligence. The district court entered a default judgment against Petra, and both the remaining parties moved for summary judgment. The court granted summary judgment on the entirety of the action, in favor of the insurance company, concluding that the counterclaims asserted by Gateway against TCD did not give rise to an obligation to defend or indemnify under the CGL policy.”

    The appeals court rejected each contention made by TCD in turn. First, “TCD contend[ed] that Gateway’s counterclaims constitute[d] an allegation of ‘property damage,’ which is covered under the CGL policy.” The appeals court disagreed. Next, “TCD argue[d] that [the court] should broaden or extend the complaint rule, also called the ‘four corners’ rule, and allow it to offer evidence outside of the counterclaims to determine the insurance company’s duty to defend in this case.” The appeals court was not persuaded by TCD’s argument.

    The judgment was affirmed. Judge Roman and Judge Miller concur.

    Read the court’s decision…


    South Carolina Contractors Regain General Liability Coverage

    May 20, 2011 — CDJ Staff

    PR Newswire reports that the Carolinas Associated General Contractors (CAGC) have successfully persuaded the South Carolina legislature to pass a bill restoring commercial general liability (CGL) coverage. Governor Nikki Hartley signed the legislation on May 17.

    A South Carolina Supreme Court decision given on January 7, 2011, had ended commercial general liability coverage in the state. Senate Bill 431 addressed this decision, restoring the ability of home builders to obtain CGL coverage.

    PR Newswire quotes South Carolina homebuilder, Allen Amsler: “We have seen a lot of legislation with substantial impact to our business over the years. However, I would place this in the same level of importance with the original tort reform legislation. The effects of the Supreme Court’s ruling could have been catastrophic to our industry in South Carolina had it not been for this bill. Thanks to all those in the House, Senate and the Governor’s office who assisted us.”

    Read the full story…


    Harmon Hotel Construction Defect Update

    July 18, 2011 — CDJ Staff

    Coverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”

    There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”

    MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.

    The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.

    Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.


    Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

    September 30, 2011 — Tred Eyerley, Insurance Law Hawaii

    In yet another recent construction defect case, the Illinois Court of Appeal found for coverage. See Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Ct. LEXIS 872 (Ill. Ct. App. Aug. 15, 2011).

    Weather-Tite, Inc. hired Larson as a subcontractor to apply sealant to windows installed by Weather-Tite in a condominium building. The windows subsequently leaked and caused water damage. The homeowner’s association sued Weather-Tite for breach of express and implied warranties. Weather-Tite filed a third-party complaint against Larsen alleging that, if it was liable to the association for breach of warranty, Larsen was liable for contribution as a joint tortfeasor. Weather-Tite and Larsen both tendered defenses to Milwaukee Insurance. The tenders were denied and Milwaukee Insurance filed suit to determine rights under the policy.

    Cross-motions for summary judgment were filed by all parties. The trial court granted Milwaukee Insurance’s summary judgment motion as to Weather-Tite, but granted Larsen’s cross-motion against Milwaukee Insurance.

    On appeal, the appellate court considered whether the underlying pleadings alleged facts demonstrating "property damage" resulting from an "occurrence" within the terms of the policy.

    Read the full story…

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


    Construction Job Opening Rise in October

    December 20, 2012 — CDJ Staff

    There was a significant increase in the number of open construction jobs during October, according to a report for the National Association of Home Builders. Working from preliminary data provided by the Bureau of Labor Statistics, the NAHB said that the number of open positions reached “levels and rates last seen in 2007.” As the data is still preliminary, the NAHB noted that the conclusions should be taken with caution.

    While there was a spike in job openings, the hiring of people to fill these positions hasn’t caught up with it, and there was a small decline in hires. But to return to the good news, there was also a drop in layoffs in that same period.

    Through October, about 8,000 people have been hired in the construction sector. The NAHB notes that this does not correspond with the recent increases with home construction. They suggest that “it may be the case that startups in the home building and remodeling sectors are being missed by the establishment survey.” Another possibility they raise is that already-employed construction workers are simply working more hours.

    Read the full story…


    General Contractor/Developer May Not Rely on the Homeowner Protection Act to Avoid a Waiver of Consequential Damages in an AIA Contract

    August 4, 2011 — Higgins, Hopkins, McLain & Roswell, LLC

    Recently, in Caribou Ridge Homes, LLC v. Zero Energy, LLC, et al., Case No. 10CV1094, Boulder County District Court Judge Ingrid S. Bakke entered a ruling and order on the Plaintiff’s Motion for Determination of Question of Law Pursuant to C.R.C.P. 56(h) on Issue of Damages. The Order found that the Plaintiff was not a homeowner intended to be protected by the Homeowner Protection Act (the “HPA”) and thus could not pursue its claims for consequential damages against Defendant.

    By way of background, on June 18, 2008, Plaintiff Caribou Ridge Homes, LLC (“Caribou”) entered into a Standard Form Agreement Between Owner and Contractor AIA Document A114-2001 (the “Contract”) with Defendant Zero Energy, LLC (“Zero Energy”). Plaintiff hired Zero Energy to serve as a general contractor for the construction of a single-family home in the Caribou Ridge subdivision in Nederland, Colorado. A provision in the contract contained a mutual waiver of consequential damages (“Waiver”).

    Read the full story…

    Reprinted courtesy Higgins, Hopkins, McLain & Roswell, LLC


    Insurer Has Duty to Disclose Insured's Interest In Obtaining Written Explanation of Arbitration Award

    October 23, 2012 — Tred Eyerly, Insurance Law Hawaii

    The issue faced by the Minnesota Supreme Court was whether the insurer had a duty to disclose the insured's interest in obtaining a written explanation of an arbitration award that identified the claims of recovery and the portions of the award attributable to each. Remodeling Dimensions, Inc. v. Integrity Mut. Ins. Co., 2012 LEXIS Minn. 404 (Minn. Sup. Ct., Aug. 22, 2012).

    Remodeling Dimensions, Inc. ("RDI") built an addition for the homeowners and installed windows in the original part of the house. After construction began, the homeowners also asked RDI to fix the master bedroom window in the original part of the house.

    After completion of the project, the house sustained storm damage.

    Read the full story…

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


    Insurer Not Liable for Construction Defect Revealed by Woodpecker

    September 13, 2012 — CDJ Staff

    The Eighth Circuit Court of Appeals has ruled that an insurance provision that excluded construction defects must stand in Friedberg v. Chubb, granting a summary judgment to the insurance firm.

    The Friedbergs discovered extensive water damage to their home after a woodpecker drilled a hole in a vertical support. They sought insurance coverage under their Chubb “Masterpiece” policy. The decision quotes the policy as covering “all risk of physical loss” “unless stated otherwise or an exclusion applies.” These exclusions included “gradual or sudden loss,” “structural movement,” and “faulty planning, construction or maintenance,” but the policy covered “ensuing covered loss unless another exclusion applies.”

    Chubb’s expert determined that the Friedbergs’ home had defective construction, and “attributed the damage to the beams and walls below the beam to a failure to install control joints.” After Chubb denied coverage, the Friedbergs sued, although the court ruled that “even under the Friedbergs’ theory, the water damage was a loss caused by faulty construction and therefore excluded under the policy.”

    On appeal, the Friedbergs argued that “the loss resulted from the combination of both faulty construction and the presence of water” and that Minnesota’s “concurrent causation” doctrine must apply, which according to the decision, “when a loss results from both a covered peril and an excluded peril, coverage exists unless the excluded peril is the ‘overriding cause’ of the loss.” The court rejected this reasoning, noting that “once the house was plagued with faulty construction, it was a foreseeable and natural consequence that water would enter.”

    The Friedbergs also contended that “the damage caused by the intrusion of water into their home is an ‘ensuing covered loss’ for which they are due coverage.” The court also rejected this claim, noting that Minnesota law excludes defective construction from the ensuing loss provision. The court said that “the Friedbergs’ reading of their ensuing-loss clause, by contrast, would dramatically limit their policy’s faulty-construction exclusion, because almost ‘any loss cause by’ faulty construction could also be characterized as an ensuing loss under an all-risk policy.”

    Read the court’ decision…


    Construction Firm Sues City and Engineers over Reservoir Project

    October 28, 2011 — CDJ Staff

    The city of Fremont, Ohio and Arcadis have been sued by Trucco Construction. Trucco had been hired by the city to build a reservoir designed by Arcadis, the News-Messenger reports. Peter Welin, attorney for Trucco, said that he found “startling evidence of the company’s negligence” when he deposed Arcadis engineers. “This project could never be built the way they bid it.”

    Their suit alleges that Arcadis and the city were aware that the site was not conducive to construction and also that Arcadis failed to be a neutral party in discussions between Trucco and the city regarding compensation.

    Sam Wamper, an attorney for Fremont, said he was going to file a motion which would include “quite an interesting story,” but declined to elaborate.

    Read the full story...


    Seven Former North San Diego County Landfills are Leaking Contaminants

    April 7, 2011 — April 7, 2011 Beverley BevenFlorez - Construction Defect Journal

    Deborah Sullivan Brennan of the North County Times reported that seven former dumps in San Diego are leaking contaminants into the surrounding groundwater. John R. Odermatt, a senior engineering geologist for the California Regional Water Quality Control Board s San Diego region, told the North County Times, “the risk to most county residents is very small or negligible, while local water supplies located in more rural areas may be at a somewhat elevated but unquantified level of risk.”

    This issue is causing heavy scrutiny of a new proposed landfill in Gregory Canyon. The landfill would be located on 308 acres of undeveloped land near Pala, alongside the San Luis Rey River. The group “Save Gregory Canyon” has been speaking out against the landfill, stating that “the project threatens major detrimental impacts to both surface and groundwater, as well as a potential compromise of the two major San Diego Water Authority pipelines nearby.” Richard Felago, a Gregory Canyon Ltd. Consultant, told the North County Times that the 8-foot-thick liner, composed of layers of gravel and synthetic material, would not leak.

    The appeal hearing is being rescheduled later this month after one of the three panelists recused himself due to having a competing interest in the property, according to the article by Gary Warth in the North County Times.

    Read the full story (link 1)...
    Read the full story (link 2)...


    Gut Feeling Does Not Disqualify Expert Opinion

    July 6, 2011 — CDJ Staff

    The New Jersey Supreme Court issued a ruling in June on the case of Nevins v. Toll in which they reversed an earlier decision and remanded the case to a lower court for retrial. At issue in the case was the testimony of the plaintiff’s expert, J. Anthony Dowling. In depositions, Mr. Dowling said that his estimates for repair were based on a “gut feeling.” Dowling said he had “very little” experience in cost estimates for single-family homes. The defendants sought to bar Dowling’s testimony which was granted by the judge. Without an expert, Ms. Nevin’s case was dismissed.

    Describing Dowling’s report as “far from a model of how an expert’s opinion in a construction case should be presented,” the court noted that Dowling is not a professional expert witness. However, the court did note that Dowling is a professional cost estimator. Despite Mr. Dowling using his “gut feeling” to construct his estimate, the New Jersey Supreme Court felt that whether his estimate is convincing is “a question for the jury.”

    Read the court’s opinion…


    Construction Workers Unearth Bones

    June 28, 2011 — CDJ Staff

    While digging for a new steam line at Eastern Michigan University, workers unearthed some old bones. Experts have yet to determine if the bones are human or animal, however Walter Kraft, the EMU vice president of communications, noted that a handle also unearthed might have come from a casket. Cindy Heflin, reporting in AnnArbor.com notes that until 1900 a Catholic cemetery was located in the area. Although the bodies were relocated, these may have been left behind.

    Read the full story…