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Summary of HUD’s LEAN 232 Program E-Mail Blast: Office of Residential Care Facilities (ORCF), June 26, 2014

In an effort to summarize the highlights of the U.S. Department of Housing and Urban Development (HUD) LEAN E-mail Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper are providing this...more

The Alabama Supreme Court Changes Its Mind on Coverage Under CGL Policy

Last September the Alabama Supreme Court issued an opinion addressing the applicability of the “own work” exclusion to claims against a contractor for defective construction. However, on March 28, 2014, the Alabama Supreme...more

The Alabama Supreme Court Broadens the Definition of “Occurrence” in a General Contractor’s Commercial General Liability Policy in...

On March 28, 2014, the Alabama Supreme Court withdrew its September 20, 2013 opinion and substituted a new decision in Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2014 WL 1270629 (Ala. Mar. 28, 2013). In its new decision,...more

Williams Mullen Construction Industry Newsletter - Spring/Summer 2014

In This Issue: - CGL Insurance & Defects - No Sure Thing - Contract Quicksand - The Nuclear Option - Federal Contractors - Excerpt from CGL Insurance & Defects: Does Your Insurance Cover...more

New York and New Jersey Hold Fast to No “Occurrence” for Faulty Workmanship Claims

During the past year, five state supreme courts (Alabama, Connecticut, Georgia, North Dakota and West Virginia) have found that faulty workmanship by a construction contractor or subcontractor can be a covered “occurrence.”...more

Construction Defect Disputes and the Abandoned Policyholder: Getting the Carrier to the Table

There is much that can go wrong in any large construction project: improper installations, defective products, errors and omissions made by designers, unexpected site conditions—the list is long. Insurance coverage or a...more

Is Defective Construction an “Occurrence”? More States Are Answering Yes

Last year, we examined the different approaches states have adopted to resolve whether defective construction by itself is an “occurrence” within the meaning of liability insurance policies. See Is Defective Construction...more

Insurance Recovery Law

Suit Alleging Drug Distributor Was a “Pill Mill” Requires Defense - Why it matters: A Kentucky federal court held that the claimed impact in a suit brought by the West Virginia Attorney General – alleging that...more

Construction E-Note - April 9, 2014

In This Issue: - Ongoing Or Completed Operations? Fifth Circuit Finds No Duty To Defend Contractor Under Additional Insured Endorsement - Your Venue, My Bond Claim: A Florida Law Primer - The Condominium Form Of...more

General Contractors Beware: Coverage Under Additional-Insured Endorsement to Subcontractor’s CGL Policy May End When...

Within the past four months, two courts interpreting Mississippi law have held that an additional-insured endorsement to a subcontractor’s commercial general liability (CGL) insurance policy did not obligate the insurer to...more

Rumble in the Construction Defect Jungle

Lately, reading the advance sheets of construction defect cases has been like watching one of the Rocky movies. There’s the punches (owww!). Then there’s the counter-punches (ohhh!). And on and on it goes with blow meeting...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

Under Construction - December 2013

Welcome to our final issue of Under Construction in 2013. We hope your year has been filled with health, happiness, peace and prosperity. We thank you for your readership, and we continue to appreciate the opportunities we...more

New Jersey Bill Would Compel Insurers to Cover Faulty Construction Work

The New Jersey Legislature has entered the ongoing national debate about whether faulty construction work is considered an “occurrence” under general liability insurance policies. Introduced on November 25, 2013, A. 4510...more

Roofing Contractors, Don’t Mess With Texas Insureds!

Hailstorms are inevitable in Texas, and so is the experience of the typical homeowner in their aftermath. Countless flyers are taped to the front door, yard sign ads spring up in the neighborhood, and the phone and doorbell...more

New York Court of Appeals: Vandalism Coverage under “Named Peril” Property Policy Can Apply Even When Malicious Act Is Not...

In a case with broad implications for property owners near construction sites (Georgitsi Realty, LLC v. Penn-Star Insurance Company, No. 156, October 17, 2013), the New York Court of Appeals has opened the door to broad...more

One Year Later, Superstorm Sandy Still Offers Viable Recovery Opportunities for Insurers

The one-year anniversary of Superstorm Sandy serves as a reminder to property insurers that key deadlines are approaching that can directly affect recovery efforts. Viable subrogation opportunities still exist, but carriers...more

Alabama Supreme Court Holds Faulty Workmanship May Be An Occurrence

In its opinion in Owners Insurance Company v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013), the Supreme Court of Alabama the court had the occasion to consider what constitutes an “occurrence” as...more

Weekly Law Resume - September 2013: Construction Defects–Does Right to Repair Act Eliminate a Property Owner’s Common Law Rights...

Liberty Mutual Insurance Company v. Brookfield Crystal Cove, LLC Court of Appeal, Fourth Appellate District (August 28, 2013) The Right to Repair Act (Code Civ. Proc., sections 896, et seq.) applies to claims for...more

Cherrington et al. v. Erie Ins. Prop. & Cas. Co.: A New Direction in Commercial General Liability Interpretation in West Virginia

The West Virginia Supreme Court of Appeals has abandoned nearly five decades of holding that faulty workmanship is not an “occurrence” under commercial general liability (“CGL”) policies. On June 18, 2013, the West Virginia...more

California Court of Appeal Opens the Door for Construction Defect Claims Outside of SB800

On August 28, the California Court of Appeal ruled that SB800 (Civil Code sections 895 through 945.5, the "Right to Repair Act") is not the only remedy for construction defect claims even when those claims fall within the...more

A Construction Defect Insurance Carrier Need Only Demonstrate That Another Insurance Carrier's Policy May Potentially Cover The...

A California Appellate Court recently clarified the burden of proof for an insurance company seeking contribution from another insurance company in settlement of a construction defect action. When a company involved in...more

Lennar Corp., et al. v. Markel Am. Ins. Co., No. 11-0394 (Tex. Aug. 23, 2013): Texas Supreme Court Affirms 'All Sums' Allocation...

On August 23, 2013, in Lennar Corp., et al. v. Markel Am. Ins. Co., the Texas Supreme Court issued an opinion that confirms two important aspects of pro-policyholder insurance law, despite insurers’ repeated attempts to...more

In Florida, General Contractor Overhead and Profit are Part of Replacement Cost Policies Even When Repairs Have Not Yet Been Made

Last month, the Supreme Court of Florida issued an opinion in Trinidad v. Florida Peninsula Ins. Co., — So.3d —, 2013 WL 3333823 (Fla. July 3, 2013), addressing a Florida statute that required the insurer of a replacement...more

A Full 180 -- The West Virginia Supreme Court of Appeals' New Position on Liability Insurance and Defective Workmanship

Since 1965, the West Virginia Supreme Court of Appeals has consistently held that defective workmanship that caused bodily injury or property damage did not constitute an “occurrence” under a policy of commercial general...more

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