News & Analysis as of

Insurance Coverage – Duty to Defend – Construction Defects

Regional Steel Corporation v. Liberty Surplus Insurance Corporation - Court of Appeal, Second Appellate District (June 13, 2014) - There has been a split of decisions in California as to whether incorporation of...more

5th Circuit Holds No Duty to Indemnify Based on Contractual Liability Exclusion

In its recent decision in Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 12158 (5th Cir. June 27, 2014), the United States Court of Appeals for the Fifth Circuit had occasion to consider whether the Contractual...more

Massachusetts Superior Court Holds Construction Manager At-Risk Responsible for Design Errors / Holds that Spearin Doctrine Does...

The Worcester Superior Court recently issued a potentially landmark decision clarifying the risk that construction managers assume when entering into CM-At Risk contracts. ...more

Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay...

On July 3, 2014, the California Supreme Court decided the much watched case Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP. The court held that the “principal architect” “owes a duty of care to future...more

When Can a CGL Policy Do a Disappearing Act?

In Evanston Insurance Company v North American Capacity Company, 2014 U.S. LEXIS 92682, Evanston Insurance Company sued in U.S. District Court to seek contribution from North American Capacity Insurance Company where both...more

Think Twice About Heading to Court with a Construction Claim

Always take a two step approach to every construction claim. The first step is do you have some likelihood of winning. The second is do you have a likelihood of collecting. Regardless do your homework and grab the...more

News for Contractors and Construction Lenders in Arizona and Nevada – The Contractors' Lien May Trump the Bank's

In addition to an arid climate and plenty of sunshine, Arizona and Nevada have something more to offer contractors: a potentially advantageous position over lenders when a project goes bad. When a project derails and...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

Did You Unknowingly Sign Away Your Ability To Sue? Double Check Your Construction Agreement!

By statute, the time to bring a lawsuit against a contractor for hidden construction deficiencies can be as long as 10 years. That means that, say, a property owner could sue his or her architect or general contractor for...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

Minnesota Court of Appeals Defines Substantial Completion Under Statute of Repose

On March 10, 2014, the Minnesota Court of Appeals issued its decision in Rosso v. Hallmark Homes of Minneapolis, Inc., No. A13-1304. The Court’s decision clarifies that Minnesota’s ten-year statute of repose for construction...more

Insurance Coverage for Defective Construction: Litigation, Legislation and Reaction

If you have ever remodeled or built a house, you can begin to understand a significant issue that has generated both litigation and legislation arising out of defective construction: Do comprehensive general liability (“CGL”)...more

The Texas Supreme Court Issues a Liability-Coverage Decision Favorable to the Construction Industry

On January 17, 2014, the Texas Supreme Court resolved a long-debated controversy as to the scope of a contractual liability insurance exclusion in Ewing Construction Co. v. Amerisure Insurance Co. A contractual liability...more

Texas Supreme Court Limits Liability Exclusion in Ewing

On January 17, 2014, the Texas Supreme Court issued a key ruling clarifying the scope of contractual liability exclusions in insurance policies. In Ewing Const. Co., Inc. v. Amerisure Ins. Co., 2014 WL 185035 (Tex. Jan. 17,...more

Texas Supreme Court Holds Exclusion Inapplicable to Construction Defect Claim

In its recent decision in Ewing Constr. Co. v. Amerisure Ins. Co., 2014 Tex. LEXIS 39 (Tex. Feb. 27, 2013), the Supreme Court of Texas addressed certified questions from the United States Court of Appeals for the Fifth...more

Texas Supreme Court Rules CGL Policy’s “Contractual Liability" Exclusion Does Not Bar Coverage for Claims Arising From...

On January 17, 2014, the Supreme Court of Texas rejected a commercial general liability (“CGL”) insurer’s attempt to invoke the “contractual liability” exclusion to deny coverage under a standard CGL policy regarding a...more

Texas Supreme Court Holds “Contractual Liability” Exclusion Inapplicable

In a long and highly anticipated decision issued today, the Texas Supreme Court held that a standard “contractual liability” exclusion does not void coverage for claims alleging that a contractor failed to construct a project...more

Texas Supreme Court Releases Major Construction Insurance Coverage Decision

On January 17, 2014, the Texas Supreme Court released its much-anticipated decision in the case of Ewing Construction Company v. Amerisure Insurance Company. The Court’s unanimous opinion answered one of the two questions...more

The Construct: Your Guide to Law in the Construction Industry - November 2013

In This Issue: - Contractor Alert: Help Available for Small Businesses in the HUB Zone Program: Recognizing that our country -- our "team," if you will -- is stronger when all our players are on the field and...more

West Virginia Reverses Course to Expand Coverage

In the construction industry, small defects in workmanship can result in dramatic losses. For example, water damage losses arising from an improperly installed bathtub could be many times the cost of installing the tub in...more

When Does an "Occurrence" Occur?

Two federal courts in Denver recently addressed a fundamental question that exists in almost every construction defect case - when did the property damage that gives rise to liability, and the insurer's obligation, occur? ...more

On the Horizon for 2013: Pennsylvania Courts Struggle with Insurance Coverage for Construction Defect Claims

In 2012, Judge Wettick of the Allegheny County Court of Common Pleas issued two decisions that have the potential to significantly limit the insurance coverage available to Pennsylvania contractors and construction companies...more

Under Construction - December 2012

In This Issue: Letter from the Editor; Colorado Construction Law Developments in 2012; Arizona Court of Appeals Issues Decision Related to the Application of the Statute of Repose and Economic Loss Doctrine for...more

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