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Dallas Appeals Court Renders Take-Nothing Judgment for Insurer in Construction Defect Case

In Dallas National Insurance Co. v. Calitex Corp., —S.W.3d—, 2015 WL 968308 (Tex. App.—Dallas Mar. 3, 2015, no pet. h.), the Dallas Court of Appeals reversed a trial court judgment finding coverage for almost $700,000 in...more

Texas Court Upholds Engineer’s Tort Duty to Third Parties

The Texas appellate decision recently confirmed that state’s general rules regarding the outer limits of common law tort liability arising from alleged construction defects. USA Walnut Creek, DST v. Terracon Consultants,...more

Can A House Be An Advertisement? The 5th Circ. Thinks So

In the world of general liability insurance policies, it is not uncommon for policies to exclude coverage for claims resulting from copyright or trademark infringement, while covering claims resulting from “advertising...more

Sikorsky and its Impact on Claims Submission

In December 2014, the Court of Appeals for the Federal Circuit issued an important decision that impacts how the 6 year statute of limitations (SOL) is applied under the Contract Disputes Act (CDA). ...more

Analysis: Prevailing Party In Jury Trial Finds Uncertainty In Remedies Available Under Pennsylvania Contractor And Subcontractor...

Since 1994, Pennsylvania law has provided enhanced remedies for prevailing in a payment dispute arising out of a construction project. The prevailing party in a recent jury trial discovered uncertainty in the precise...more

Give Way or Yield? The jurisdiction of your contract does matter! (Law note)

Have you ever been to England? If so, you’ve likely seen their version of our “Yield” sign– the “Give Way” sign. It is a bit jarring to those from this side of the “big pond”....more

Arbitration’s Diamond in the Rough: Lessons from the Dichele Superior Court Ruling

In construction law, contracts are at the heart of our business; contracts between: owners and architects; owners and general contractors; contractors and subcontractors; and subcontractors and sub-subcontractors....more

The Latest on Major Defense Verdicts in Arizona

What’s the latest news on Arizona’s civil defense verdicts? Here are some interesting defense verdicts from 2014: - Steak Out Restaurant & Saloon, L.L.C. et al. v. Old Lobos T&T, L.L.C. et al. Steak Out Restaurant...more

Western District of Washington: Insured That Violated Duties of Notice and Cooperation Could Not Make Out Claim for Bad Faith...

Granite State Ins. Co. v. Integrity Structures, LLC, No. C14-5085BHS, 2015 WL 136006 (W.D. Wash. Jan. 9, 2015). The U.S. District Court for the Western District of Washington held that an insurer did not act in bad faith...more

Pennsylvania Commonwealth Court Holds Owner Which Relied Upon Engineer in Withholding Payment May Obtain Indemnity from Engineer...

Klipper Constr. Assocs., Inc. v. Warwick Twp. Water and Sewer Auth., 2014 Pa. Commw. Unpub. LEXIS 718 (Pa. Commw. Ct. Dec. 16, 2014) - Warwick Township Water and Sewer Authority (“Owner”) hired Carroll Engineering...more

Repair Reg Relief for Small Businesses? Not So Fast.

January 1, 2014, marked the date that the final Repair, Maintenance and Disposition Regulations (Regulations) went into effect and apply to any business with material and supplies, repairs or depreciable fixed assets. Since...more

Connecticut Supreme Court Determines that Commercial General Liability Insurers Have Right to Obtain Declaratory Ruling as to...

Many construction professionals in Connecticut, and in particular those who do business with the State, are well aware of the Connecticut Supreme Court’s decision in State v. Lombardo Bros. Mason Contractors, Inc., 307 Conn....more

Insurance Recovery Law - February 2015

California Court Adopts Broad Interpretation of “Occurrence,” Finds Coverage - Why it matters: In a victory for policyholders—and a continuation of the trend of courts adopting a broad reading of the term “occurrence”...more

Fourth District Reverses Lower Court Ruling in Construction Defect Litigation

On January 22, 2015, the Fourth District Court of Appeals issued for publication its decision in McMillin Companies LLC v. American Safety Indemnity Company, 4th Dist. Div. 1, D063586. The case is significant in...more

Construction Case Law Update - February 2015 #2

Commercial General Liability Insurance Policies; Construction Defects; Self Insured Retention Amount; Subrogation; “Made Whole Doctrine” – Under the “made whole doctrine,” an insured has no affirmative right to recover...more

The Pennsylvania Superior Court Continues to Muddle the Answer to the Question of When Faulty Workmanship is an “Occurrence” Under...

Pennsylvania courts continue to struggle with complex concepts underpinning when faulty workmanship can be an “occurrence” triggering coverage under Commercial General Liability (“CGL”) policies. In Kvaerner Metals Division...more

California Court of Appeals Determines Subcontractor is Unable to Maintain Cross-Claims for Equitable Indemnity and Contribution...

In State Ready Mix, Inc. v. Moffatt & Nichol, 232 Cal. App. 4th 1227 (2015), the California Court of Appeals considered whether a subcontractor could maintain cross-claims for equitable indemnity and contribution against the...more

Letters Of Intent In Construction Project Negotiations, P.2

In our last post, we began speaking about letters of intent and their use in negotiating the terms of construction projects. As we noted, letters of intent are not contracts, but courts do sometimes enforce them as binding,...more

Pennsylvania Supreme Court Denies Appeal In Coverage Dispute; Superior Court Decision Recognizing a Duty to Defend Where Tort...

In a per curiam decision without a published opinion, the Pennsylvania Supreme Court denied National Union Fire Insurance Company of Pittsburgh’s (“National”) appeal from a Superior Court decision holding that National had a...more

The Construction Advantage – Issue 13

Welcome to the thirteenth edition of The Construction Advantage! In this issue, we bring you cases of expanded insurance coverage in New Hampshire and fraudulent concealment cases from California and Minnesota. We hope that...more

Construction Law Alert: Concrete Supplier Botches Concrete Mix, Gets Thrashed By Court of Appeal for Trying to Blame Third Party

On January 8, 2015, the Second Appellate district affirmed judgment of the lower court in State Ready Mix Inc. v. Moffatt & Nichol, and barred a concrete supplier from blaming a third party consultant for the concrete...more

Transfer of Property Title to a Holding Company Did Not Divest Landowner of Owner-Occupant Status Under A.R.S. § 33-1002(B)

Recently, in Marco Crane & Rigging Co. v. Masaryk, 703 Ariz. Adv. Rep. 29 (Dec. 30, 2014), the Arizona Court of Appeals established that a subcontractor on a residential project has no lien rights against an owner-occupant,...more

Oregon Court of Appeals Clarifies Application of Statute of Limitations and Statute of Repose in Connection with Construction...

In Riverview Condo, Ass’n v. Cypress Ventures, Inc., 266 Ore. App. 574 (Or. Ct. App. 2014), the Oregon Court of Appeals clarified application of the statute of repose and statute of limitations in the context of a suit...more

The Status of Lien Waivers in Utah Remains Cloudy

On December 19, 2014, the Utah Supreme Court issued its opinion in Lane Myers Construction, LLC v. National City Bank, et al. 2014 UT 58 (UT 2014). In this case, a total of nine Utah jurists considered the question of whether...more

Recent New York Decision Reaffirms Limits to Surety's Liability on a Delay Claim Made Under a Payment Bond

Advanced Automatic Sprinkler Co., Inc. v. Seaboard Surety Co., Inc., No. 650321/2001, N.Y.L.J. 1202678994141, at (Sup. Ct. New York County Dec. 3, 2014), the Court (Hon. Marcy Friedman) granted the defendant surety’s motion...more

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