Construction Products Liability General Business

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Separation Panes: Emerging Litigation Over Window Sealant

Relatively few people in the commercial construction industry are kept up at night by polyisobutylene (PIB) — the synthetic rubber sealant commonly used to provide a long term and durable moisture barrier for insulated glass...more

Waivers of implied warranty strengthened for condo, home builders in Illinois

In two recent builder-friendly decisions, the First District and Supreme Court of Illinois have ruled that the standard conspicuous waiver of the implied warranty of habitability found in most builders’ sales agreements: 1)...more

Construction Alert: "Texas Supreme Court Opinion Impacts General Contractor's Statutory Indemnity Rights Against Manufacturers of...

The Texas Supreme Court recently issued an important decision regarding the ability of general contractors to seek indemnity from manufacturers of defective products. In Centerpoint Builders GP, LLC v. Trussway, Ltd., the...more

Texas Supreme Court Narrows the Ability of General Contractors to Seek Chapter 82 Indemnity for Product Claims

On June 17, the Texas Supreme Court further clarified the definition of the word "seller" in Chapter 82 of the Texas Civil Practice and Remedies Code (known as the Texas Products Liability Act), which was intended to provide...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

Subcontractor Performing Services may be Liable in Strict Liability For Purchasing and Installing Defective Products in Fulfilling...

Jovana Hernandezcueva v. E. F. Brady Company, Inc. - Court of Appeal, Second Appellate District, Division Four (December 22, 2015) - The doctrine of strict liability is ordinarily inapplicable to transactions...more

Construction Defect – Pre-Litigation Procedures of the “Right to Repair Act”

McMillin Albany LLC, et al. v. The Superior Court of Kern County - California Court of Appeal, Fifth Appellate District (August 26, 2015) - Civil Code section 896 (§ 896) is part of a statutory scheme commonly...more

Let Freedom of Contract Ring - NC Supreme Court Upholds Enforceability of Long-Term Express Warranties

In the summer of 2013, a divided North Carolina Court of Appeals caused a stir in the construction community when it held in Christie v. Hartley Construction, Inc., 745 S.E.2d 60 (N.C. App. 2013) (hereinafter “Christie 1”)...more

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

Is Laminate Flooring The New Drywall For Insurers?

Recent media reports alleging that certain laminate flooring manufactured in China and distributed in the U.S. contains unsafe levels of formaldehyde may have a familiar and frightening ring to them, particularly for insurers...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

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

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

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