News & Analysis as of

Construction Defects

California Supreme Court Affirms SB800 as Sole Remedy for Construction Defect Claims without Personal Injury

by Allen Matkins on

On January 18, 2018, the California Supreme Court affirmed an earlier appellate court decision holding that SB800 (Civil Code sections 895 through 945.5, the “Right to Repair Act”) is the "virtually exclusive remedy"...more

California Supreme Court Upholds SB800 As Exclusive Remedy, Disapproves Liberty Mutual

by Newmeyer & Dillion LLP on

N&D proudly announces that the California Supreme Court has unanimously agreed with our positionand has ruled in support of the Right to Repair Act. The Supreme Court has spoken: The Legislature said what it meant, and...more

Chapter 558 Pre-Suit Notice May Trigger an Insurer's Duty to Defend and Indemnify

by Rumberger Kirk & Caldwell on

The Supreme Court of Florida recently issued an opinion in Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), which impacts an insurer’s duty to defend and...more

Client Alert: Florida Supreme Court Weighs in on CGL Carriers’ Duty to Defend Chapter 558 Claims

Since its enactment in 2003, Chapter 558, Florida Statutes (commonly referred to as Florida’s notice and opportunity to cure provision) has governed the pre-suit notice and opportunity to repair process between owners,...more

An Insurer’s Duty to Defend is Now Triggered by Pre-Suit Notices Under Florida’s Construction Defect Statute, But Only With an...

In a case of first impression that will undoubtedly have significant effects on Florida’s construction and insurance industries, the Florida Supreme Court recently decided that an insurer’s duty to defend under a standard...more

Construction In Brief: 2017 Volume 4

The Buy American Act: Are You Compliant? - The federal government has a long-standing pref­erence for incorporating domestic materials and products into public construction projects. While a number of statutes and...more

Altman Contractors V. Crum & Forster: Florida Supreme Court Answers The 11th Circuit’s Certified Question In The Affirmative

by Carlton Fields on

In Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., 832 F.3d 1318 (11th Cir. 2016), the Eleventh Circuit certified the following question to the Florida Supreme Court: "Is the notice and repair process set forth...more

California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language

In McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing...more

Trendy Building Material May Cause Future Problems

We all remember the litigation nightmare surrounding synthetic stucco or EIFS (exterior insulation finish systems) in the recent past. Now, commentators worry that Adhered Concrete Masonry Veneer, also known as manufactured...more

Off the Reservation (of Rights): South Carolina Speaks on CGL Insurer Notification Requirements

Lawsuits over defective construction are common in South Carolina. So, when a construction company covered by a CGL insurance policy is sued over an alleged construction defect, the insurance company may agree to defend the...more

State Appeals Courts Rule on ‘That Particular Part’ Exclusions

by Farella Braun + Martel LLP on

Two recent cases from separate California state courts correctly interpret the phrase “that particular part” and apply it in its intended narrow sense. This is good news for contractors and is in contrast to some recent...more

AIG Must Defend Additional Insureds

by Nossaman LLP on

That it took an appellate court to order AIG’s Lexington Insurance to honor its additional insured obligations is a measure of how frequently insurers attempt to dodge this important contractual obligation. The case of...more

California Court Confirms Broad Coverage Under "Ongoing Operations" Endorsements

by Payne & Fears on

A California Court of Appeal has confirmed that additional insured endorsements (“AIE”) granting coverage for liability arising out of a named insured’s “ongoing operations,” and in effect during those “ongoing operations,”...more

Ownership is Not a Conclusive Factor for Ongoing Operations Additional Insured Coverage

In McMillin Management Services v. Financial Pacific Ins. Co. (No. D069814, filed 11/14/17), a California appeals court held that an insurer had a duty to defend a general contractor under an “ongoing operations” additional...more

In Dismissing Homebuyer’s Defective Construction Suit Against Contractor for Lack of Privity, Supreme Court of Utah Cautions...

by Pepper Hamilton LLP on

Tomlinson v. Douglas Knight Constr., Inc., 2017 Utah Lexis 132 (August 29, 2017) - This case arises out of the construction of a residential property. Lot 84 Deer Crossing (“Lot 84”) purchased the property and contracted...more

Trustees of Cambridge Point Condominium Trust v. Cambridge Point, LLC

by Goulston & Storrs PC on

In Trustees of Cambridge Point Condominium Trust v. Cambridge Point, LLC, No. MICV-2014-03136, 2016 WL 9753783 (Mass. Super. Nov. 18, 2016), appeal argued, SJC No. 2017-P-0113 (Mass. 2017), the trustees (“Trustees”) of the...more

Allocation of Risk in Construction Contracts

by White & Case LLP on

Risk in construction contracts - ‘Risk’, in a project delivery context, can be defined as ‘an event or set of circumstances that,should it occur, will have an effect on the achievement of the project’s objectives’. Risk...more

New Jersey’s Manifestation Destiny: Appellate Division Applies Continuous Trigger to Claims for Progressive Third-Party Property...

by K&L Gates LLP on

The New Jersey Appellate Division (the “Appellate Division”) recently issued a ruling in Air Master & Cooling Inc., v. Selective Insurance Co. of America (“Air Master”) applying the “continuous trigger” theory to third-party...more

New Jersey Court: Continuous Trigger Ends When Nature of Damage Is Known

by Cozen O'Connor on

Last week, the New Jersey Appellate Division issued a decision that may have a significant impact on insurance coverage for progressive property damage claims in the state. In Air Master & Cooling, Inc. v. Selective Ins. Co....more

Bankruptcy Court Holds That “Economic Waste” Doctrine, As Adopted In Wisconsin, Prevented Owner From Recovering Costs To Repair...

by Pepper Hamilton LLP on

WTE-S&S AG Enters., LLC v. GHD, Inc., 2017 Bankr. LEXIS 2343 (Bankr. N. D. Ill. August 18, 2017) - This breach of contract dispute arises out of a contract to design and build a cow-manure digester on a farm in Wisconsin. ...more

NJ Courts Continue Expansion Of Insurance Coverage For Construction Defects: “Continuous Trigger” Doctrine Applied

by Cole Schotz on

New Jersey courts are continuing their trend of extending insurance coverage for third-party construction defect claims. Following last year’s NJ Supreme Court decision in Cypress Point Condo. Ass’n, Inc. v. Adria Towers,...more

Do you know the full extent of your contractual obligations (and can you meet them)?

by Dentons on

In 125 OBS (Nominees 1) & Anor v. Lend Lease Construction (Europe) Ltd & Anor [2017] EWHC 25 (TCC), the court found the contractor liable for the highly publicised failure of glass panels at a prestigious building in London....more

Common Law/Clean Water Act Action: Lawrence County Landowners Lawsuit Challenging Lawrence County, Arkansas Bridge

A group of landowners and farmers (collectively “landowners”) filed an October 10th lawsuit in the United States District Court for the Eastern District of Arkansas against Lawrence County, Arkansas. See No. :...more

Tic Toc Tic Toc: The Clock Is Running on Construction and Design Claims by the State of Connecticut Beginning October 1, 2017

Our readers may recall that Public Act No. 15-28 was signed by the Governor back in 2015, subjecting the State of Connecticut and its political subdivisions to a statute of limitations for asserting actions and claims arising...more

[Event] Community Association Seminar Fall 2017 - November 9th and November 11th, Minneapolis, MN

by Hellmuth & Johnson PLLC on

Join us for our Fall 2017 Community Association Seminar! - What to do if your Association is the victim of embezzlement? - Understanding Changes to MCIOA for Construction Defect Claims ...more

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