Construction Insurance

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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

New Jersey high court follows nationwide majority on CGL coverage for general contractor

On August 4, 2016, the New Jersey Supreme Court affirmed an intermediate court's ruling that where a subcontractor's defective work causes physical damage to other, nondefective parts of a general contractor’s project, it...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

New, Relaxed Regulations Make Drone Use on Construction Projects Easier

The Federal Aviation Administration (FAA) recently introduced relaxed regulations concerning the use of drones for commercial purposes. The new regulations could have a significant impact on drone usage in the construction...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

Betterment on Construction Projects, part 2 (more cowbell) (law note)

Another question about betterment, and about A/E insurance policies: I am confused on why the A/E even carries error and omission insurance. I must re-read one of the policies. And if betterment protects the designer,...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

New Stats From The AAA

The American Arbitration Association (AAA) has not released statistics for years (other than to the CFPB). But recently, arbitration geeks got a summer solstice gift of (limited) new information. The piece is only three...more

Insurer’s Potential Exposure to Fees and Costs When Prosecuting Indemnity Action under Assignment from Insured

Hearn Pacific Corporation v. Second Generation Roofing, Inc. - Court of Appeal, First Appellate District (May 2, 2016) - It is not uncommon in construction defect and some other cases for an insurer of the general...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

Far-reaching reforms to insurance law – and what action to take

The Insurance Act 2015 (the Act) will come into force on 12 August 2016 and is set to have far-reaching effects on how businesses handle their insurance policies and renewals. The Act will affect non-consumer contracts and...more

Oregon Court of Appeals Holds that “Common Issue” Exception Applies to Permit Defendant Contractor to Recover Attorney’s Fees From...

In The Village at North Pointe Condominiums Association v. Bloedel Construction Co. et al., 278 Or App 354 (2016), the Oregon Court of Appeals held that defendant contractor could recover attorneys’ fees against a homeowners...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

Operation Underground Economy

The California Department of Insurance’s news release on its latest efforts to target the underground economy reminds me of some lines of Mission Impossible: “this is not mission difficult, Mr. Hunt. It’s mission impossible.”...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

Agent Had No Duty to Produce Additional Insurance Coverage For Lost Rent and Soft Cost Without a Specific Request

Professional Lines Alert - APM, LLLP v. TCI Insurance Agency, Inc., No. 20150243, Supreme Court of North Dakota, March 15, 2016 - Plaintiff, a property management company, was seeking a builder's risk insurance...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

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