Cambridge Massachusetts Building Expert Directory

NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional

September 20, 2021 — Anthony L. Miscioscia & Frank J. Perch, III - White and Williams LLP
Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property damage” are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such claims were inherently intentional and do not state a covered “occurrence.” In Velez v. AR Management Company, et al., 2021 N.J. Super. Unpub. LEXIS 1675 (Law Div. Bergen Co. Aug. 10, 2021), owners of a condominium unit rebuilt after a fire sued the condominium association, several association board members, the association’s property management company and the general contractor for the reconstruction work. The owners’ suit alleged faulty workmanship and incomplete repairs. In addition, the owners asserted fraud and breach of fiduciary duty claims against the management company, alleging conflicts of interest and self-dealing between the management company and the general contractor, which had common ownership. In a third-party complaint, the management company sought coverage from the condo association’s liability and D&O insurer. The court dismissed the D&O coverage claim, noting that the management company was not a director or officer or otherwise entitled to insured status for the D&O coverage part. Reprinted courtesy of Anthony L. Miscioscia, White and Williams LLP and Frank J. Perch, III, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Perch may be contacted at perchf@whiteandwilliams.com Read the court decision
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Cliffhanger: $451M Upgrade for Treacherous Stretch of Highway 1 in British Columbia

July 31, 2023 — Aileen Cho - Engineering News-Record
Rugged Construction | Part Three of an ENR Series Winding along the edges of steep slopes deep in the eastern forests of British Columbia, a stretch of Highway 1 offers stunning vistas for commuters and visitors as they traverse Kicking Horse Canyon. But the 70-plus-year-old two-lane highway also has been susceptible to rockfalls, avalanches and traffic accidents involving both humans and wildlife. Reprinted courtesy of Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story... Read the court decision
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Editorial: Qatar Is Champion of Safety Hypocrisy in Migrant Worker Deaths

December 26, 2022 — ENR Editorial Board - Engineering News-Record
Once the World Cup soccer tournament concludes, decency dictates that someone should put a wrecking ball to Qatar’s Al Bayt and Lusail stadiums, where the opening ceremonies and matches were held. There’s no polite way to say it: bulldozing the World Cup sports facilities is the only way to amplify to the world the cost in migrant construction workers lives in all that was constructed. Reprinted courtesy of ENR Editorial Board, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Blackstone to Buy Chicago’s Willis Tower for $1.3 Billion

March 19, 2015 — Hui-yong Yu – Bloomberg
(Bloomberg) -- Blackstone Group LP agreed to buy Chicago’s Willis Tower, the second-tallest building in the U.S., and plans to upgrade the retail and observatory space in a bet on growth in the city. The price was $1.3 billion, a record for a Chicago office building, according to Blackstone executives. The sellers of the 110-story skyscraper, formerly known as Sears Tower, are a group including New York-based investors Joseph Chetrit and Joseph Moinian, and American Landmark Properties Ltd. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Ms. Yu may be contacted at hyu@bloomberg.net

Condo Collapse Spurs Hometown House Member to Demand U.S. Rules

July 19, 2021 — Parker Purifoy - Bloomberg
A Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state. Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements. “We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.” Read the court decision
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Reprinted courtesy of Parker Purifoy, Bloomberg

Court Again Defines Extent of Contractor’s Insurance Coverage

November 26, 2014 — Craig Martin – Construction Contractor Advisor
The ever changing landscape of insurance coverage for contractors continues to be clarified in Texas. The Fifth Circuit Court of Appeals applied Texas law in Crownover v. Mid-Continent Casualty Company, concluding that contractors do have insurance coverage to cover claims that a project was not constructed in a good and workmanlike manner. In this case, the Crownovers hired a contractor to build a house. The contract contained a warranty-to-repair clause. Shortly after construction was completed, cracks began to appear in the walls and foundation, and there were problems with the heating and air conditioning system. The Crownovers demanded that the contractor repair the problems and the contractor refused. The Crownovers brought an arbitration proceeding against the contractor and prevailed, obtaining a judgment that the contractor must pay for repairs to the foundation and HVAC system. The contractor then filed for bankruptcy and the bankruptcy court allowed the Crownovers to pursue their claim against the contractor’s insurer. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Berger: FIGG Is Slow To Hand Over All Bridge Collapse Data

November 12, 2019 — Richard Korman - Engineering News-Record
The Florida International University Tragedy About half an hour before the almost-completed pedestrian bridge collapsed onto a busy Miami-area road last year, killing six people, Denney Pate, the bridge’s engineer-of-record, sent a text to Linda Figg, the chief executive of FIGG Bridge Engineers. Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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More Hensel Phelps Ripples in the Statute of Limitations Pond?

February 03, 2020 — Christopher G. Hill - Construction Law Musings
As is always the case when I attend the Virginia State Bar’s annual construction law seminar, I come away from it with a few posts on recent cases and their implications. The first of these is not a construction case, but has implications relating to the state project related statute of limitations and indemnification issues for construction contracts brought out in stark relief in the now infamous Hensel Phelps case. In Radiance Capital Receivables Fourteen, LLC v. Foster the Court considered a waiver of the statute of limitations found in a loan contract. The operative facts are that the waiver was found in a Continuing Guaranty contract and that the default happened more than 5 years prior to the date that Radiance filed suit to enforce its rights. When the defendants filed a plea in bar stating that the statute of limitations had run and therefore the claim was barred, Radiance of course argued that the defendants had waived their right to bring such a defense. The defendants responded that the waiver was invalid in that it violated the terms of Va. Code 8.01-232 that states among other things:

an unwritten promise not to plead the statute shall be void, and a written promise not to plead such statute shall be valid when (i) it is made to avoid or defer litigation pending settlement of any case, (ii) it is not made contemporaneously with any other contract, and (iii) it is made for an additional term not longer than the applicable limitations period.

The Circuit Court and ultimately the Supreme Court agreed with the defendants. In doing so, the Virginia Supreme Court rejected arguments of estoppel and an argument that a “waiver” is not a “promise not to plead.” Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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