BERT HOWE
  • Nationwide: (800) 482-1822    
    retail construction Pawlet Vermont mid-rise construction Pawlet Vermont hospital construction Pawlet Vermont casino resort Pawlet Vermont concrete tilt-up Pawlet Vermont Medical building Pawlet Vermont office building Pawlet Vermont low-income housing Pawlet Vermont condominium Pawlet Vermont tract home Pawlet Vermont industrial building Pawlet Vermont condominiums Pawlet Vermont structural steel construction Pawlet Vermont custom home Pawlet Vermont production housing Pawlet Vermont Subterranean parking Pawlet Vermont landscaping construction Pawlet Vermont housing Pawlet Vermont multi family housing Pawlet Vermont parking structure Pawlet Vermont institutional building Pawlet Vermont high-rise construction Pawlet Vermont
    Arrange No Cost Consultation
    Construction Expert Witness Builders Information
    Pawlet, Vermont

    Vermont Builders Right To Repair Current Law Summary:

    Current Law Summary: Case law precedent. H423 introduced April 2006. Will require prior written notice to contractors and builders will have 21 days to respond in writing their intention to inspect, repair, replace, compensate or dispute.


    Construction Expert Witness Contractors Licensing
    Guidelines Pawlet Vermont

    Licensure is required for asbestos, plumbing, and electrical trades. Corporations must register with the Secretary of State.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Home Builders & Rem of Southern Vermont
    Local # 4703
    PO Box 784
    Rutland, VT 05702
    http://www.cvthomebuilders.com

    Home Builders & Remodelers Assn of VT
    Local # 4700
    136 James Brown Dr
    Williston, VT 05495


    Home Builders & RA of Northern Vermont Inc
    Local # 4705
    136 James Brown Dr
    Williston, VT 05495
    http://www.vtbuilders.com


    Construction Expert Witness News and Information
    For Pawlet Vermont

    Delaware “occurrence” and exclusions j(5) and j(6)

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

    Construction Upturn in Silicon Valley

    Arizona Supreme Court Confirms Eight-Year Limit on Construction Defect Lawsuits

    Nevada Assembly Sends Construction Defect Bill to Senate

    Construction Delayed by Discovery of Bones

    Architectural Firm Disputes Claim of Fault

    Senate Committee Approves Military Construction Funds

    Ensuing Loss Provision Does Not Salvage Coverage

    Construction Company Head Pleads Guilty to Insurance and Tax Fraud

    Housing Prices Up through Most of Country

    Micropiles for bad soil: a Tarheel victory

    Court Grants Summary Judgment to Insurer in HVAC Defect Case

    A Lien Might Just Save Your Small Construction Business

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

    Negligent Construction an Occurrence Says Ninth Circuit

    Injured Construction Worker Settles for Five Hundred Thousand

    There is No Non-Delegable Duty on the Part of Residential Builders in Colorado

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

    Washington Court Limits Lien Rights of Construction Managers

    California Lawyer Gives How-To on Pursuing a Construction Defect Claim

    Defective Shingle Claims Valid Despite Bankruptcy

    Exclusions Bar Coverage for Damage Caused by Chinese Drywall

    Statute of Repose Dependant on When Subcontractors Finished

    Homeowners Must Comply with Arbitration over Construction Defects

    Colorado Court of Appeals Rejects Retroactive Application of C.R.S. § 13-20-808.

    Construction Defect Case Not Over, Despite Summary Judgment

    Restitution Unlikely in Las Vegas Construction Defect Scam

    Homebuilding Still on the Rise

    Pier Fire Started by Welders

    Homeowner Loses Suit against Architect and Contractor of Resold Home

    History of Defects Leads to Punitive Damages for Bankrupt Developer

    Rihanna Finds Construction Defects Hit a Sour Note

    Judge Rejects Extrapolation, Harmon Tower to Remain Standing

    Home Repair Firms Sued for Fraud

    State Farm Too Quick To Deny Coverage, Court Rules

    Damron Agreement Questioned in Colorado Casualty Insurance v Safety Control Company, et al.

    Windows and Lawsuits Fly at W Hotel

    Florida trigger

    Court Clarifies Sequence in California’s SB800

    Insurers Reacting to Massachusetts Tornadoes

    No Coverage For Construction Defects When Complaint Alleges Contractual Damages

    Ghost Employees Steal Jobs from Legit Construction Firms

    The Flood Insurance Reform Act May be Extended to 2016

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

    Homeowners Sue Over Sinkholes, Use Cash for Other Things

    When Does a Claim Against an Insurance Carrier for Failing to Defend Accrue?

    Louisiana Politicians Struggle on Construction Bills, Hospital Redevelopment

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

    Texas contractual liability exclusion

    Ninety-Day Extension Denied to KB Home in Construction Defect Insurance Claim

    Seven Former North San Diego County Landfills are Leaking Contaminants

    CC&Rs Not the Place for Arbitration Agreement, Court Rules

    Coverage for Construction Defects Barred by Business Risk Exclusions

    Construction Worker Dies after Building Collapse

    Architect Not Responsible for Injuries to Guests

    Hawaii State Senate Requires CGL Carriers to Submit Premium Information To State Legislature

    Increased Expenditure on Injuries for New York City School Construction

    MGM Seeks to Demolish Harmon Towers

    A Call to Washington: Online Permitting Saves Money and the Environment

    Ensuing Loss Provision Does Not Salvage Coverage

    Harsh New Time Limits on Construction Defect Claims

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

    Does the New Jersey Right-To-Repair Law Omit Too Many Construction Defects?

    Construction Defects Leave Animal Shelter Unusable

    Negligent Misrepresentation in Sale of Building Altered without Permits

    California Bill Would Notify Homeowners on Construction Defect Options

    Insurer Has Duty to Defend Despite Construction Defects

    Kentucky Court Upholds Arbitration Award, Denies Appeal

    Contractor’s Home Not Covered for Construction Defects

    South Carolina Legislature Defines "Occurrence" To Include Property Damage Arising From Faulty Workmanship

    Appropriation Bill Cuts Military Construction Spending

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

    Reference to "Man Made" Movement of Earth Corrects Ambiguity

    Home Builder Doesn’t See Long Impact from Hurricane

    Texas Law Bars Coverage under Homeowner’s Policy for Mold Damage

    Renovation Contractors: Be Careful How You Disclose Your Projects

    California insured’s duty to cooperate and insurer’s right to select defense counsel

    Nebraska Man Sentenced for Insurance Fraud in Construction Projects

    Des Moines Home Builders Building for Habitat for Humanity

    OSHA Cites Construction Firm for Safety Violations

    Cabinetmaker Exceeds Expectations as Conditions Improve

    Florida trigger

    Residential Construction Down in San Diego

    United States District Court Confirms That Insurers Can Be Held Liable Under The CCPA.

    Cleveland Condo Board Says Construction Defects Caused Leaks

    Good and Bad News on Construction Employment

    Court Sends Construction Defect Case from Kansas to Missouri

    Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

    Residential Construction: Shrinking Now, Growing Later?
    Corporate Profile

    PAWLET VERMONT CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Pawlet, Vermont Construction Expert Witness Group is comprised from a number of credentialed construction professionals possessing extensive trial support experience relevant to construction defect and claims matters. Leveraging from this considerable body of experience, BHA provides construction related trial support and expert services to the nation's most recognized construction litigation practitioners, Fortune 500 builders, commercial general liability carriers, owners, construction practice groups, and a variety of state and local government agencies.









    Construction Expert Witness News & Info
    Pawlet, Vermont

    Follow Up on Continental Western v. Shay Construction

    March 28, 2012 — Brady Iandiorio, Colorado Construction Litigation

    Writing in Construction Law Colorado, Brady Iandiorio revisits the case Continental Western v. Shay Construction. He promises to continue to follow cases dealing with Colorado HB 10-1394.

    Recently the Court ruled on two Motions to Reconsider filed by Defendants Milender White and Shay Construction.

    Procedurally, the Motions to Reconsider were ruled on by the Honorable William J. Martinez, because the day after the motions were filed the action was reassigned to Judge Martinez. In the short analysis of the Motion to Reconsider, the court leaned on Judge Walker D. Miller’s ruling on the summary judgment and his analysis of the (j)(5) and (j)(6) exclusions.

    As a quick refresher regarding the grant of summary judgment, Judge Miller agreed with Continental Western’s argument that the asserted claims were excluded under the “damage to property” exclusion. The policy’s exclusions state: “(j) Damage to Property . . . (5) that particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the ‘property damage’ arises out of those operations; or (6) that particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” Judge Miller found that both exclusions (j)(5) and (6) applied to both Shay’s allegedly defective work.

    Read the full story…

    Reprinted courtesy of Brady Iandiorio of Higgins, Hopkins, McClain & Roswell, LLC. Mr. Iandiorio can be contacted at iandiorio@hhmrlaw.com.


    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.


    Construction Upturn in Silicon Valley

    August 17, 2011 — CDJ Staff

    Work resumed after nearly three years on an office tower in Santa Clara, according to the San Jose Mercury News. Work had stalled on the building due to the economy, but now the developer is planning a second five-story building on the site. Other dormant projects in the area are also getting restarted. Santa Clara County saw the addition of 1,800 construction jobs in June.

    A spokesperson for the Operating Engineers Local 3 in Alameda told the paper, “two years ago we had five thousand folks on the out-of-work list. It’s now down to about 1,700.”

    Read the full story…


    Contractors with Ties to Trustees Reaped Benefits from LA Community College Modernization Program

    March 3, 2011 — Original reporting by Gale Holland, Michael Finnegan and Doug Smith, Los Angeles Times

    In the latest installment of the “Billions To Spend” series of investigative reports focused on construction defects, management, and cost issues relevant to LACC’s Community College Modernization Projects, the LA Times examines the costs associated with the various layers of construction management and benefits that accrued to contractors with ties to LACC trustees.

    The reporting by the Times is seemingly critical of the project’s utilization of “body shops” an industry term for companies that function as employers of record. The article segment published today cites a number of circumstances wherein their utilization appears to have escalated costs substantially.

    “To gauge the cost of the staffing system, The Times reviewed thousands of pages of financial records from April 2007, when URS began managing the program, to July 2010. Reporters identified two dozen contractors serving as conduits for pay and benefits for employees they did not supervise.

    At least 230 people were employed in this manner, at a total cost of about $40 million, the records show.

    Approximately $18 million of the total was paid to the employees, according to the Times analysis. The remaining $22 million went to profit and overhead for contractors, the records indicate.

    For employees on its own payroll, the district says that medical and other benefits increase compensation costs 40% above base salaries. So if the district had employed its construction staff directly, the total cost for the period studied would have been $25 million instead of $40 million, a savings of $15 million, The Times calculated.”

    Read Full Story...


    Geometrically Defined Drainage Cavities in EIFS as a Guard Against Defects

    July 10, 2012 — CDJ Staff

    The blog Stucco & Insulation Contractor writes up some details on a “relatively new modification to modern Exterior Insulation Finish Systems,” known as “geometrically defined insulation boards.” They note that the insulation has grooves cut in the back to provide a route for water to drain, instead of getting trapped. They note that when EIFS is installed by a skilled applicator, this is unnecessary. However, with less experienced (and cheaper) installers, problems are more likely.

    By cutting these channels, the application of EIFS is rendered “idiot proof,” as they note. Their preference would be that EIFS installers take the time to do the job right, but call this “a step in the right direction.”

    Read the full story…


    The Hidden Dangers of Construction Defect Litigation

    March 28, 2012 — David M. McLain, Colorado Construction Litigation

    David M. McLain, writing at Colorado Construction Litigation, has an interesting blog post republishing his article in Common Interests magazine, the monthly periodical of the Rocky Mountain Chapter of the Community Associations Institute. In his article, he touches on a number of pitfalls in construction defect litigation, including the potential conflicts of interests facing HOAs. He also considers the problems homeowners can face, including both “strong-arm tactics” taken by attorneys to compel homeowners to join the lawsuit, or situations in which the interests of the HOA do not match those of the homeowners. He writes:

    There is also a conflict of interest with individual owners who attempt to opt out of the case. This can lead to shocking strong-arm tactics on the part of plaintiffs’ attorneys. In one instance, a plaintiffs’ attorney sent a letter to an individual homeowner that stated that as a 1/58th owner of the common elements, if he refused to go along with the suit, and there was ultimately a finding in favor of the HOA which was in any way limited by his refusal to participate, he would be personally liable for 1/58th of the HOA’s total damages. In another instance, a different plaintiffs’ attorney sent a letter to a homeowner who wanted the builder to perform warranty repairs, informing the owner that if he let the builder perform any repairs, the attorney would bill the HOA according to the fee agreement entered by the HOA board (without knowledge or consent of non-board members) and that the HOA would assess the homeowner for that expense. These are just two examples of conflicts which may arise between the HOA board and individual homeowners when the HOA pursues CD cases.

    Another example of a conflict which will arise as a result of CD litigation occurs post-settlement. When an HOA settles for less than 100% of the amount necessary to fund all repairs outlined by its experts, plus attorneys’ fees and litigation costs, there will obviously be a shortfall in the amount necessary to fix the development. The HOA board must then choose to impose a special assessment to cover the shortfall or to make some, but not all, of the repairs outlined by its experts. In choosing the latter, the conflict arises with respect to which homes get fixed and which do not. In this situation, the HOA board has acted as the attorney-in-fact for the individual owners by bringing claims on their behalf, and has compromised those claims without their knowledge or consent.

    Read the full story…

    Reprinted courtesy of David M. McLain of Higgins, Hopkins, McClain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com.


    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…


    Florida “get to” costs do not constitute damages because of “property damage”

    August 11, 2011 — CDCoverage.com

    In Palm Beach Grading, Inc. v. Nautilus Ins. Co., No. 10-12821 (11th Cir. July 14, 2011), claimant general contractor Palm Beach Grading (?PBG?) subcontracted with insured A-1 for construction of a sewer line for the project.   A-1 abandoned its work and PBG hired another subcontractor to complete construction of the sewer line.   The new subcontractor discovered that A-1?s work was defective requiring repair and replacement of portions of the sewer line which also required the destruction and replacement of surrounding work.

    Read the full story…

    Reprinted courtesy of CDCoverage.com


    Williams v. Athletic Field: Hugely Important Lien Case Argued Before Supreme Court

    June 17, 2011 — Douglas Reiser, Builders Counsel

    Well, it finally made it. The most important Washington lien case of recent memory was argued in front of the Washington Supreme Court on Tuesday, June 14, 2011. So, what should we all expect?

    As I was reading through my RSS feeds this afternoon ? I was stopped dead in my tracks. Williams v . Athletic Field, the Division II case that has been a frequent topic here on Builders Counsel, has finally been argued before the Supreme Court. All of you who have been anxiously awaiting this day, you can check out the Supreme Court submissions by following this link.

    The Williams case has been the center of attention for construction lawyers and construction organizations over the past year. Some have called for complete lien law reform, others have tried to patch a hole in the law. Now, we can expect a ruling from the highest court in the state. That ruling will have a major impact on whether the Legislature feels compelled to change lien law.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com


    Judge Rejects Extrapolation, Harmon Tower to Remain Standing

    November 7, 2012 — CDJ Staff

    CityCenter has filed an emergency motion asking the Nevada Supreme Court to intervene in Judge Elizabeth Gonzalez’ order that the building’s defects cannot be extrapolated from those tested. CityCenter’s structural engineering expert “evaluated 397 of the Harmon’s critical structural elements and found all but one defective,” according to the article on Vegas.Inc. Judge Gonzalez would not permit this to be extrapolated to the untested 1,072, as the locations tested were not random.

    Judge Gonzalez also ruled that if CityCenter does additional testing, they may not appeal her order that ruled the extrapolation inadmissible. CityCenter argued to the Nevada Supreme Court that “the notion that CityCenter should be forced to incur additional millions of dollars in testing costs and sanctions ?Äì on the condition that it waive its right to appeal this ruling ?Äì just to be permitted to present its own damages evidence, shocks the conscience.”

    Gonzalez gave the okay to CityCenter to demolish the building, but its demolition would make any further testing impossible. Under Gonzalez’ ruling, the untested structural elements cannot b assumed to be defective.

    Read the full story…


    Australian Developer Denies Building Problems Due to Construction Defects

    June 15, 2011 — CDJ Staff

    The Sunland Group, the developer, is objecting to claims that it is responsible for corrosion damage in a residential building in Gold Coast, Australia, as reported in the Courier & Mail. Residents of Q1, the world’s tallest residential tower, are suing the developer, claiming that defects and corrosion “compromise the long-term durability and appearance of” the six-year-old building.

    The developer has not only denied that there are defects in the building, but has also stated that the construction contract “did not warrant that the construction would be defects-free.” Sunland claimed that corrosion was due to the homeowners association having “failed to carry out the maintenance requirements.”

    Repair of the building is expected to cost millions of dollars. Sunland denies that it should pay any of that.

    Read the full story…


    Congress Addresses Homebuilding Credit Crunch

    May 20, 2011 — CDJ Staff

    The National Association of Home Builders (NAHB) reports that Representatives Gary Miller (CA), Brad Miller (NC) and twenty-nine cosponsors have put forth a bill with bipartisan support to “address the severe credit crunch for acquisition, development, and construction (AD&C) financing.” They report in addition to more than 1.4 million construction workers who have been “idled since 2006,” the housing slump has cost 3 million jobs and $145 million in wages.

    NAHB reports that they worked closely with lawmakers on the bill. The association had members meet with legislators both in D.C. and in their home districts. They state that HR 1755 would help homebuilders “find the credit they need to move forward with new or existing projects.”

    The bill would allow lenders to use the value upon completion when assessing loan collateral and ban the use of foreclosed or distressed sale properties in assessing values of projects. The would bill would also lessen restrictions by banking regulators, which the lead sponsors said “have hindered federal and state chartered banks and thrifts’ ability to make and maintain loans to qualified small home builders that have viable projects.”

    The NAHB is urging members of Congress to cosponsor the bill and is urging the Senate to introduce a companion bill.

    Read the full story…

    Read HR 1755


    Ensuing Losses From Faulty Workmanship Must be Covered

    May 10, 2012 — Tred Eyerly, Insurance Law Hawaii

    Coverage for damages resulting from faulty workmanship in the construction of an apartment complex was at issue in The Bartram, LLC v. Landmark Am. Ins. Co., 2012 U.S. Dist. LEXIS 44535 (N.D. Fla. March 30, 2012).

    The owner of the apartments, Bartram, had primary coverage and three layers of excess coverage. Each contract excluded loss from faulty workmanship. The policies provided, however, "if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage."

    Bartram contended water intrusion occurred because of faulty workmanship, which caused damage to the buildings’ exterior and interior finishes, wood sheathing, framing, balcony systems, drywall ceilings and stucco walls. This damage was separate from the work needed to simply fix the faulty workmanship. Therefore, Bartram argued, the ensuing losses that resulted from the water intrusion was covered.

    The insurer argued the ensuing loss exception was not applicable if the ensuing loss was directly related to the original excluded loss.

    Read the full story…

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


    Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases

    September 9, 2011 — CDJ Staff

    The Alabama Court of Civil Appeals has dismissed an appeal of a summary judgment in the case Bella Investments, Inc. v. Multi Family Services, Inc. MFS was hired by Bella to be the general contractor for a hotel in Gardendale, Alabama. MFS hired various subcontractors, including the architect for the project. After completion of the hotel in April, 2006, Bella made requests for MFS to repair cracked floor tiles.

    In August, 2008, Bella sued MFS, the architect, and various fictitiously named defendants. Subsequently, Bella amended its complaint, naming some of the fictitiously named defendants.

    MFS in turn claimed that Bella’s claims were void under the statute of limitations and that Bella was in beach of contact by failing to pay MFS the full amount owed. MFS moved for summary judgment under the statute of limitations, which was granted by the court.

    Bella requested that the court “alter, amend, or vacate its summary judgment order.” When this was denied, Bella appealed to the Alabama Supreme Court, which transferred the appeal to the Court of Civil Appeals. The Court of Appeals refused to vacate the summary judgment as claims that form part of the case against MFS are also part of Bella’s claims against the other defendants. For this reason, the court upheld the summary judgment.

    Read the court’s decision…


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

    March 8, 2011 — March 8, 2011, Colorado Construction Litigation

    The U.S. Court of Appeals for the Tenth Circuit recently concluded that the “owned property exclusion” applied to bar coverage for claims of property damage. See Panico v. State Farm Fire and Cas. Co., 2011 WL 322830 (10th Cir. 2011). In Panico, the plaintiffs sold property in Aspen, Colorado to the Taylors, who sued the Panicos upon discovering the property was not as represented. After refusing to defend, the Panicos sued State Farm for breach of contract. The district court concluded that the Taylors’ claims were not covered under the Panicos insurance policies and granted summary judgment in State Farm’s favor. The U.S. Court of Appeals for the Tenth Circuit affirmed.

    Mr. Panico built the house on the property as well as several additions to the house. As the Taylors lived in Florida, they primarily relied on their real estate agent and an inspector to ensure the property was acceptable. According to their complaint, the Taylors discovered that the house was “virtually uninhabitable due to serious design and construction defects, mold, rodents, and drainage problems.” Id. at *1. In their complaint, the Taylors asserted three claims for relief against the Panicos based upon misrepresentation and fraudulent concealment about the condition of the property.

    Read the full story...

    Reprinted courtesy of Heather M. Anderson of Higgins, Hopkins, McClain & Roswell, LLP. Ms Anderson can be contacted at anderson@hhmrlaw.com


    Court Requires Adherence to “Good Faith and Fair Dealing” in Construction Defect Coverage

    September 30, 2011 — CDJ Staff

    The California Court of Appeals has ruled in the case of Allied Framers, Inc. v. Golden Bear Insurance Company. Allied had been sued in a construction defect case and its primary insurer had become insolvent. Coverage for Allied’s defense was paid for by the California Insurance Guarantee Association through June 8, 2006. When warned that CIGA’s involvement was ending, Allied notified Golden Bear, which declined to provide coverage.

    In the matters that followed, Golden Bear claimed that Allied had not exhausted its $1 million in primary insurance. Allied then showed that $1 million had already been paid out in the case. A few months thereafter, Golden Bear offered a $500,000 settlement on behalf of Allied which was rejected. Thereafter, Golden Bear hired new counsel to defend Allied. Golden Bear received, but allegedly did not pay, invoices Allied sent from their former counsel. Golden Bear finally settled the construction defect case for $2 million.

    Allied’s original counsel sued Allied for payment. Golden Bear declined coverage. Allied then claimed that Golden Bear liable on several counts, arising from its failure to settle the construction defect action earlier than it did and its failure to pay Allied’s counsel. Golden Bear demurred, arguing that Allied had now exhausted is coverage with the $2 million settlement. The lower court sustained Golden Bear’s demurrer, dismissing Allied’s complaints.

    The appeal court reviewed Allied’s seven complaints and sustained most of them. However, the court did reverse the trial court’s order in regard to Allied’s complaint that Golden Bear breached an implied covenant of good faith and fair dealing. The appeals court was not convinced that Golden Bear properly evaluated the settlement demand in the underlying construction defect case. The court found three other ways in which Golden Bear’s actions might show bad faith, in refusing to pay defense fees “after promising [Allied] such costs would be paid in full,” “failing to advise Allied about ‘actual or potential negative consequences of agreeing to the proposed settlement,’” and that their choice of counsel “failed to protect [Allied’s] interests in the negotiation.”

    Read the court’s decision…


    Construction Employment Rises in Half of the States

    December 9, 2011 — CDJ Staff

    The Labor Department has noted that half the states and the District of Columbia saw increases in construction employment during the month of October. During the same month, twenty-three states lost construction jobs.

    The biggest gains were in North Dakota, Oklahoma, DC, Texas, and California. The biggest losses were in Georgia, New Mexico, Wisconsin, and Florida. There was no change for Alabama.

    The chief executive officer of the Association of General Contractors of America, Stephen E. Sandherr, called for more infrastructure development. “Allowing water, transportation and energy networks to deteriorate will hurt construction employment and force taxpayers to spend more later, to fix broken infrastructure.”

    Read the full story…


    No Duty to Indemnify When Discovery Shows Faulty Workmanship Damages Insured’s Own Work

    November 7, 2012 — Tred Eyerly, Insurance Law Hawaii

    Our post last week addressed the duty to defend when alleged faulty workmanship caused loss to property adjacent to where the insured was working. See Pamerin Rentals II, LLC v. R.G. Hendricks & Sons Constr., Inc., 2012 Wis. App. LEXIS 698 (Wis. Ct. App. Sept. 5, 2012) [post here]. Today, we report on recent developments in the same case where the court determined, despite earlier finding the insurer owed a defense, it had no duty to indemnify. Pamperin Rentals II, LLC v. R.G. Hendricks & Sons Constr., Inc., 2012 Wisc. App. LEXIS 793 (Wis. Ct. App. Oct. 10, 2012).

    Hendricks contracted to “prepare the site and supply and install concrete, tamped concrete, and colored concrete” at several service stations. The owner sued Hendricks, alleging the concrete “was defective and/or the work performed was not done in a workman-like manner and resulted in damages, and will require replacement.”

    Pekin Insurance Company agreed to defend Hendricks subject to a reservation of rights.

    Read the full story…

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