General Business Insurance Construction

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New York Court Confirms: Additional Insured Coverage Limited to Contractual Privity

On September 15, 2016, the New York Supreme Court, Appellate Division, First Department found that an additional insured endorsement provided additional insured coverage only to the entity in direct contractual privity with...more

Court of Appeals Changes Calculation of Statute of Repose

Colorado law generally prohibits construction defect lawsuits against a construction professional brought “more than six years after the substantial completion of the improvement to the real property.” § 13-80-104, C.R.S....more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

Mississippi Court Rejects Expansive Reading of Oral Construction Contracts

In McKean, et. al. v. Yates Engineering, 2015 Miss. App. LEXIS 446 (2015), the Court of Appeals of Mississippi affirmed the Circuit Court’s dismissal of four (4) plaintiffs’ personal injury claims stemming from the collapse...more

New Jersey Supreme Court Affirms General Contractor’s Insurance Coverage for Consequential Damages Caused by a Subcontractor’s...

In an important recent decision, New Jersey joined a growing number of states holding that Insurance Services Office’s (ISO) 1986 comprehensive general liability (CGL) policy extends coverage to a property developer faced...more

Missouri Western District Court of Appeals Reminds Us to Pay No Attention to the Headings for the Revised Statutes

The Missouri Western District Court of Appeals recently affirmed a trial court’s issuance of summary judgment and, in the process, reminded practitioners that the bold faced headings in the Revised Statutes are not part of...more

New Jersey Supreme Court Holds CGL Policies Cover Developer/General Contractor for Damage Caused by Subcontractor’s Faulty...

The New Jersey Supreme Court recently considered whether damage caused by a subcontractor’s faulty workmanship constitutes property damage caused by an occurrence under a developer/general contractor’s commercial general...more

Broad “Assumption of Liability” Clause in Subcontract Likely Trumps “Waiver of Subrogation” Clause in Prime Contract

In a recent case handled by Bradley, a federal court in Maryland issued a decision attempting to reconcile inconsistent contract provisions. The general contractor said that its fire sprinkler subcontractor was...more

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a...more

Workmanship and Earth Movement Exclusions Preclude Coverage for Collapse As a Matter of Law

A U.S. federal district court recently granted Peerless Insurance’s summary judgment motion, concluding that, as a matter of law, under Virginia law, a property policy insuring a building under renovation would not provide...more

Latest Developments in Arbitration for the Construction Law Practitioner

G. T. Leach Builders V. Sapphire V.P.: Non-Signatories’ Right to Compel Arbitration; Waiver of Right to Arbitrate - By far, the most recent, significant arbitration development for construction law practitioners was the...more

Western District of Virginia Confronts Several Legal Issues That Frequently Impact Multi-Party Construction Disputes – Economic...

Allstate Insurance Company v. Structures Design/Build, LLC, 2016 U.S. Dist. LEXIS 34349 (WD VA March 17, 2016) - This construction dispute case arises from a failed pipe connector that caused water damage to a facility...more

Wisconsin Supreme Court Narrowly Interprets the “Permanent Property Insurance” Condition in a Builder’s Risk Policy

In Fontana Builders, Inc. v. Assurance Company of America, Case No. 2014AP821, 2016 WL 3526408 (Wis. Jun. 29, 2016), the Wisconsin Supreme Court addressed whether the purchase of a homeowner’s policy by the occupiers and...more

Federal Court in Maryland Denies Summary Judgment, Holding That Subcontract Provision Placing Responsibility for Property Damage...

Turner Constr. Co. v. BFPE Int’l, Inc., No. JKB-15-368, 2016 U.S. Dist. LEXIS 39161 (D. Md. Mar. 25, 2016) - The University of Maryland Medical Center (“UMMC”) entered into a contract (the “Prime Contract”) with Turner...more

Contractual Waiver of Subrogation Applied to Owner’s Non-Work Property

After an insurer pays for a covered loss by an owner under a property policy the insurer generally has the right, whether under the common law, statute or the policy itself, to seek recovery of the payment from the...more

Insurer’s Attempt to Shift Cost of Defense to Another Insurer Found Void as to Public Policy

While construction can sometimes be risky, construction litigation is almost always expensive. This volatile mix of risk and expense has made risk shifting, through indemnity and insurance, a primary goal and concern by those...more

The ERISA Litigation Newsletter - May 2016

Editor’s Overview - In this issue of Proskauer's ERISA Litigation Newsletter, we review a recent ruling by the Tenth Circuit Court of Appeals concerning the application of controlled group principles to the building...more

Defence & Indemnity - April 2016: V. SURETY AND BOND ISSUES

Liability of surety in Quebec under a labour and material payment bond consistent with common law principles L’Unique Assurances Générales inc., Appelante, c Échafauds Plus (Laval) inc., Intimée, 2015 QCCA 1725 [4174]...more

Construction Defect Insurance Disputes Are Daunting Puzzles, But Neutrals Fit the Pieces Together

Think construction defects cases are complicated? Try looking at them from the perspective of the neutrals who guide parties to settlement. Complicated only begins to describe what one experienced neutral calls working on a...more

New York High Court Gives the Bronx Cheer to Insurers’ Pro Rata Allocation and Exhaustion Arguments

Over time, New York’s courts have erected multiple barriers to policyholders seeking to recover insurance for long-tail, progressive injury claims—such as environmental or asbestos liabilities—that can implicate multiple...more

Colorado Supreme Court: Insurers Need Not Show Prejudice to Enforce No-Voluntary-Payments Provision of Insurance Policy

On April 25, 2016, the Colorado Supreme Court overturned a decision by the Colorado Court of Appeals and Colorado District Court in what is believed to be a seminal victory for insurers. In Travelers Prop. Cas. Co. of Am. v....more

Montana Supreme Court Revisits General Liability Coverage for Construction Defect Claims

In its recent decision in Emplrs Mut. Cas. Co. v. Fisher Builders, Inc., 2016 MT 91 (Mont. Apr. 16, 2016), the Supreme Court of Montana had occasion to consider what constitutes an “occurrence” in the context of a defective...more

A Double Standard in Construction Defect Coverage Cases?

The recent decision of Allied Property & Casualty Insurance Co. v. Metro North Condominium Associates highlights why only a minority of jurisdictions still hold to the fiction that construction defects cannot give rise to an...more

California Appeals Court Rejects Insurer’s Reliance on Contractual Escape Clause

According to a closely watched decision, an “other insurance” clause in a comprehensive general liability policy will not, as a matter of public policy, permit the insurer to avoid having to pay a share of the insured’s...more

California Court Rejects Primary Carrier’s Excess Other Insurance Position

In its recent decision in Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co., 2016 Cal. App. LEXIS 275 (Cal. App. Apr. 11, 2016), the Court of Appeal of California for the Third Appellate District had occasion...more

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