Duane Morris LLP: Key Calif. Supreme Court Decision for Developers in Resolving Construction Defect Disputes

On August 16, 2012, the California Supreme Court in Pinnacle Museum Tower Association v. Pinnacle Market Development (US), LLC held that arbitration provisions in Covenants, Conditions and Restrictions (CC&Rs) are enforceable against an owners association. The state Supreme Court's decision settles...

Jing on Insurance Coverage for Construction Defects: Developments in Federal & State Law

Jing on Insurance Coverage for Construction Defects: Recent Developments in Federal and State Law by Audrey J. Jing of Kelley, Drye & Warren LLP examines the current split among jurisdictions as to whether a claim for defective workmanship falls within the scope of the standard form insuring agreement...

SNR Denton LLP on Lennar Corp. v. Transamerica Insurance Co.: Whither Bad Faith in Arizona?

By William T. Barker & Ronald D. Kent, Partners, SNR Denton This commentary examines a potentially pivotal court decision in the law of bad faith and its implications. The Arizona Court of Appeals in Lennar Corp. v. Transamerica Insurance Co. held that a later-reversed trial court summary judgment...

Property Developer’s Failure To Perform Because Of the Economy Was An Occurrence

While much debate has centered around coverage for construction defects, the parties have at least known where the claims are coming from - a structure is set out to be built, something doesn't go right and repairs need to be made. But in IMG Worldwide, Inc. v. Westchester Fire Ins. Co., No. 11-1594...

Fifty States Of Mold Claims

I. Introduction This first-of-its-kind article provides an overview of many of the jurisdictionally specific mold-related litigation issues, and includes a checklist of how to successfully defend against mold claims. A 50-state survey of the three most critical and common legal issues arising from mold...

Supreme Court of South Carolina Bars Insurance Coverage in Defective Construction Case with a Twist

By Scott C. Turner, Attorney, Anderson Kill SUMMARY: Wednesday, the Supreme Court of South Carolina issued its decision in Bennett & Bennett Const., Inc. v. Auto Owners Ins. Co. , 2013 S.C. LEXIS 170 (S.C. 2013), holding that Commercial General Liability (CGL) policy’s coverage for defective...

Georgia Supreme Court Holds Homebuilder's Concrete Foundation Defective Work Is An Occurrence

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In Taylor Morrison Servs. v. HDI-Gerling Am. Ins. Co. , 2013 Ga. LEXIS 618 (July 12, 2013) [ enhanced version available to lexis.com subscribers ], the Georgia Supreme Court addressed whether a construction defect claim constitutes...

Farella Braun + Martel LLP: New Case Affirms Broad Duty to Defend In Construction Defect Case Where Damage Dates Unclear

By John Green, Partner, Farella Braun + Martel LLP A new case from Oregon deals with a recurring problem in construction defect litigation—the absence of clear dates in the complaint regarding when damage is alleged to have occurred. Frequently, a plaintiff will allege that defects in a construction...

Musings on Necessary Evils and Construction Lawyers

“Hi, my name is Chris, and I’m a construction attorney .” While this sounds like an AA (attorney’s anonymous) introduction, this admission is not a step on the road to recovery (despite the recent discussions slamming an attorney’s role in the construction world). This...

Connecticut Supreme Court, in a Case of First Impression, Holds Negligent Construction Insured Under General Liability Policy

In Capstone Building Corp. v. American Motorists Insurance Co. , 67 A.3d 961 (Conn. 2013) [ enhanced version available to lexis.com subscribers ], a case of first impression, the Supreme Court of Connecticut considered whether allegations that a subcontractor’s unintended defective construction...

High Court Hears Oral Arguments About Venue For Construction Contract Case

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 9 heard arguments from attorneys involved in a construction contract dispute filed in a Texas federal court regarding the proper venue for the case ( Atlantic Marine Construction Co. v. USDC WD TX, et al. , No. 12-929, U.S. Sup...

Construction Defects: Alabama Supreme Court Holds Faulty Workmanship May Be An Occurrence

In its opinion in Owners Insurance Company v. Jim Carr Homebuilder, LLC , 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013) [ enhanced version available to lexis.com subscribers ], the Supreme Court of Alabama the court had the occasion to consider what constitutes an “occurrence” as defined under...

Goldberg Segalla Commentary: Emerging Trends And Changing Perspectives On Construction Defect Claims

By Thomas F. Segalla Ellen H. Greiper Matthew S. Lerner and Suzin L. Raso | [Editor's Note: Thomas F. Segalla , Ellen H. Greiper , and Matthew S. Lerner are partners and Suzin L. Raso is an associate in the Construction , General Liability , and Global Insurance Services Practice Groups of the...

Babst Calland: Pa. Superior Court Requires Strict Compliance With Mechanics’ Lien Law

By Rick Kalson A non-precedential opinion issued on November 22, 2013 by the Superior Court of Pennsylvania in Advanced Construction Services, Inc. v. Cumberland Dining Group, Inc. illustrates the importance of strictly complying with the Pennsylvania Mechanics’ Lien Law’s service requirements...

Vandeventer Black LLP: Witnesses Are Overrated

By Ned Nicholas In television law it’s all about the witnesses. This was true back in the day with Perry Mason and it’s true today on the many courtroom drama shows. And there is no denying some testimony (“he shot her” or “the light was red” come to mind) can make...

Bates Carey Commentary: Construction Defect Coverage Summary 2013: The Business Risks Shift To Insurers

By John Husmann and Adam Fleischer [Editor's Note: John Husmann and Adam Fleischer are partners of the law firm Bates Carey Nicolaides in Chicago. Any commentary or opinions do not reflect the opinions of Bates Carey Nicolaides. Copyright © 2013 by John Husmann and Adam Fleischer. Responses...

Homebuilder Construction Defects: Alabama Supreme Court Holds Faulty Workmanship May Be an Occurrence

In its opinion in Owners Insurance Company v. Jim Carr Homebuilder, LLC , 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013), [ enhanced version available to lexis.com subscribers ], the Supreme Court of Alabama the court had the occasion to consider what constitutes an “occurrence” as defined under...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Almost Heaven For Policyholders: West Virginia High Court Overrules Four Prior Decisions And Holds That Faulty Workmanship Is An “Occurrence” [And Two Others Do The Same]

Ordinarily I would not include in the annual insurance hit-parade a case addressing the beat-to-death issue whether faulty workmanship qualifies as an “occurrence” under a commercial general liability policy. There are simply too many cases addressing the issue so any single new one, even...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Texas Supreme Court: Insured’s Settlement Without Insurer’s Consent Covered Insured’s Texas 1-Step: Settle And Skip Insurer’s Consent

As a general rule, when an insured is tardy in providing notice of claim to an occurrence-based liability insurer, the insurer is not relieved of coverage, on such ground, unless it can demonstrate that it was prejudiced by such late notice. This is often-times a high hurdle for the insurer to meet....

Leading Coverage Lawyers: The Most Significant Insurance Coverage Decisions Of 2013

For the past 13 years, at around this time, I have sat down and inked a list of the ten insurance coverage decisions of the year just-completed that I believed were the most significant. There was nothing complex or scientific about the process nor authoritative about the results. Neither was the process...

Third Circuit Requires Affidavit of Merit in Products Liability Case Against Residential Homebuilder

by David A. Haworth, Carl G. Roberts, and Neal Walters In a case of first impression, the U.S. Court of Appeals for the Third Circuit affirmed the dismissal of design defect claims against a residential homebuilder under New Jersey’s Product Liability Act when the homeowner failed to comply...

Insured May Settle Claim Before Suit if Insurer Wrongfully Denies Coverage

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In Selective Ins. Co. v. Cherrytree Cos. , 2013 IL App (3) 120959 [ enhanced version available to lexis.com subscribers ], the Illinois Appellate Court for the Third District drove the final nail in the insurer’s “if there...

Pennsylvania Superior Court Opens Door to Coverage of Faulty Workmanship Claims

By Darin J. McMullen Pennsylvania policyholders can more confidently challenge insurance companies' denials of faulty workmanship claims following the Pennsylvania Superior Court's recent opinion in Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec...

A Faulty Workmanship—“Occurrence” Case Worth Reading

The title of this article tells you how I feel about the continuous barrage of decisions addressing coverage for construction defects – in particular whether faulty workmanship constitutes an “occurrence” under a commercial general liability policy. I’m not saying that these cases...

Construction Defects and the Space Between: Gap and Overlap In the Combined Coverage of Performance Bonds and CGL Policies for Construction Defects

By Thomas Rush and David A. Attisani Among other harbingers of a gradually convalescing economy, construction activity is on the rise, and is projected to remain on that trajectory throughout 2014. As a consequence of such growth, there will also be an increase in construction-related loss and...