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Indiana: New Home Warranties Must Be Insured

When faced with a subrogation loss involving a new or fairly new house, and a potential construction defect that caused the loss, one of the first things to look for is how warranties can help or hurt your case. Did the...more

Court Gets in Line with Majority of Jurisdictions on Faulty Products Coverage

A recent decision from an appellate court in Pennsylvania is good news for policyholders who manufacture products, as yet another jurisdiction joins the majority view that product manufacturers may be covered for damage that...more

Pennsylvania Court Holds Defectively Designed Windows and Doors May Give Rise to an “Occurrence”

On December 3, 2013, the intermediate Pennsylvania Court of Appeals decided Indalex, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, and concluded that an “occurrence” under a commercial umbrella liability policy may...more

Pennsylvania Appeals Court Confirms Insurance Coverage for Product Liabilities and Distinguishes “Faulty Workmanship”

Whether a construction defect constitutes a covered “occurrence” under a commercial general liability (“CGL”) policy has been the subject of a national debate among state courts in recent years. Armed with a small minority of...more

Tiara Condominium Association, Inc. v. Marsh & McLennan Companies

Economic Loss Rule

The Florida Supreme Court held that the Economic Loss Rule is limited to product liability cases. However, as discussed in the concurring opinion, this holding will not open up the flood gates for tort claims. Rather, the...more

Pennsylvania Court Holds Drywall Claims Arose Out of Single Occurrence

In its recent decision in Cincinnati Ins. Co. v. Devon International, 2013 U.S. Dist. LEXIS 20659 (E.D. Pa. Feb. 15, 2013), the United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law,...more

New Jersey Judiciary Narrows Applicability of Statute of Repose to Manufacturers of Products That Are Utilized in Improvements to...

New Jersey’s Appellate Division clarified the role of the New Jersey Statute of Repose, N.J.S.A. 2A:14-1.1 (the Statute of Repose), as it pertains to manufacturers of products that are utilized in improvements to real...more

The Long Tail of Construction Defect Liability: When Does It End?

Originally published in Colorado Construction & Design Magazine. (2012). Colorado law imposes deadlines on when defect claims may be asserted. How, when and to whom these deadlines apply has been historically less than...more

A Builder Who Opts out of Right to Repair Act's Prelitigation Procedures in Favor of its Own Contractual Prelitigation Procedures...

The California Court of Appeal holds that a builder who opts out of the nonadversarial prelitigation procedures set forth in California's Right to Repair Act in favor of its own contractoral nonadvesarial prelitigation...more

First Circuit Holds That Warranty Not Exclusive Remedy When Repeated Corrective Efforts Fail

According to the U.S. Court of Appeals for the First Circuit in Berkshire Medical Center, Inc. v. U.W. Marx, Inc., an owner is at some point legally entitled to run out of patience, at least where defective work is concerned....more

Standard of Care for Engineers - the Jury Instruction (law note)

I’ve previously talked about the standard of care for design professionals on construction projects. As you should be aware, the standard is reasonableness, not perfection. To illustrate the point, consider a standard...more

Arizona Supreme Court Rules in Favor of Developer on Claim Against CGL Insurer for Cost of Repairing Defective Construction

In May 2011, the Arizona Supreme Court affirmed the Arizona Court of Appeals' August 2010 decision affirming a jury trial verdict and subsequent judgment in favor of a developer who had sued its commercial general liability...more

SC Supreme Court Finds Insurance Coverage in Construction Defect Case

The S.C. Supreme Court has clarified the issue of CGL coverage for damages associated with construction defects in a way that should prove helpful to contractors and owners. As you may know, in January 2011 the SC...more

Insurance Litigation Update

Claims Arising from Defective Drywall Are Excluded Under Most CGL Policies: During the housing boom in the mid-2000s, domestically manufactured drywall was in short supply, so hundreds of millions of pounds of drywall...more

Contractual Risk Shifting: Commercial Construction

If you are engaged in general contracting and think you have shifted the risk of non-payment by the owner to your subcontractors you should review this article. At least in Texas, unless the contract makes it clear with...more

Insurance Law Update - Negligent Design and Construction Is Not an Occurrence of Property Damage - February 2011

U.S. Court of Appeals for the Fifth Circuit In VRV Development L.P.v. Mid-Continent Cas. Co., ___ F.3d ___, 2011 WL 48897 (5th Cir. (Tex.) January 7, 2011), the Fifth Circuit Court of Appeals held that negligent design and...more

Dean v. Barrett Homes, Inc.: A Crack in the 'Economic Loss' Rule for 'Integrated Products'

In Dean v. Barrett Homes, Inc., A-15, New Jersey Supreme Court (November 15, 2010), the New Jersey Supreme Court significantly narrowed the "economic loss rule" and its corollary, the "integrated product doctrine," when it...more

Is An Arbitration Provision In Recorded CC&Rs Ever Enforceable By The Developer?

Note To Reader: As this article goes to press, the Fourth District Court of Appeal has received the parties’ supplemental briefs, and is preparing to rehear Villa Vicenza Homeowners Association v. Nobel Court Development,...more

Finally, A Ruling That Applies Some Common Sense To The False Claims Act

Search for the phrase False Claims Act on the Internet, and you will be hit with a barrage of websites telling you how easy it is to bring a fraud case against a Government contractor. Sadly, these websites are right. The bar...more

Chinese Drywall and Statutory Indemnity: The Intersection of Construction Law and Products Liability

The recent flurry of litigation over defective Chinese drywall has put a new focus on an old problem--products liability in the construction law environment. When is a builder responsible for products it innocently sold or...more

Spring 2009 Building & Bonding: The Construction Group Newsletter

IN THIS ISSUE: *“The Writing Is on the Wall”: Defective Drywall Claims Prompt More Legal Action *Federal Circuit Affirms $50 Million Civil Fraud Verdict Against Korean Construction Contractor *Under New York Case Law,...more

2008 Amendment to §2782 - Special Issue by Ray Coates

The Legislature has made another attempt to try to correct the indemnification mess in the residential construction arena. This is its third attempt. In 2005, the Legislature changed the framework for analysis of...more

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