Dynamics of Managing Professional Liability Claims for Design Builders
February 21, 2022 —
Eric M. Clarkson - Saxe Doernberger & Vita, P.C.Nearly half of America’s construction projects are now design-build in a continuing shift. As a result, contractors are taking on more professional liability (“PL”) risk than ever before, and the risk management landscape is changing. There are unique challenges to managing PL risks and claims. Specifically, PL coverage requires proactive claim management and project coordination. As a result, design-build projects should involve significant collaboration amongst all of the parties involved in the project.
Claims Made Coverage Considerations
PL policies typically provide three types of coverage:
- Professional Liability covers defense and indemnity against claims arising out of acts or omissions of the insured in rendering a defined set of professional services –including construction management, project management, and design work in the design build context.
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Eric M. Clarkson, Saxe Doernberger & Vita, P.C.Mr. Clarkson may be contacted at
EClarkson@sdvlaw.com
The Economic Loss Rule: From Where Does the Duty Arise?
January 24, 2022 —
Taylor Hite - Colorado Construction LitigationWhen entering a contract under Colorado law or attempting to enforce your rights when the other party breaches a contract, it is important to know and understand what rights you have and what claims you can bring or defenses you may have. One important consideration is Colorado’s version of the economic loss rule. The Colorado Supreme Court has issued several opinions clarifying the scope of the economic loss rule since it adopted the rule in 2000. The purpose of the economic loss rule is to maintain the boundary between contract law and tort law.
In Colorado, the economic loss rule provides that a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for the breach without an independent duty of care under tort law. In most instances the economic loss rule will not bar intentional tort claims. The question becomes: from where does the duty arise? Is there an independent duty in tort law? Did the duty arise solely from the contract?
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Taylor Hite, Higgins, Hopkins, McLain & Roswell, LLCMs. Hite may be contacted at
Hite@hhmrlaw.com
MSJ Granted Equates to a Huge Victory for BWB&O & City of Murrieta Fire Department!
May 30, 2022 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O Partner Tyler D. Offenhauser and Senior Associate Kevin B. Wheeler prevailed on their Motion for Summary Judgment (“MSJ”) on behalf of a public entity, the City of Murrieta Fire Department today!
As a matter of background, authorities were first called to a residence in Murrieta after a report of a gas line rupture. Firefighters and Southern California Gas Company responded to the call. As a crew from SoCalGas was trying to shut off the gas an explosion happened, leveling the home and killing 31-year-old SoCalGas employee Wade Kilpatrick. 30 surrounding homeowners have now alleged personal injuries, including TBI, as a result of the explosion. News agencies reported that Plaintiff Anthony Borel sustained a severe head injury and was placed in a coma. Plaintiff’s injuries included an epidural hematoma, subarachnoid hemorrhage, bilateral corneal abrasions, right orbital fracture, right temporal fracture, right maxillary fracture, frontal skull fracture, 18% partial-thickness burns to the face, abdomen, arms and legs, and a severe TBI with cognitive deficiencies. Plaintiff claimed damages in excess of $20,000,000.00.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Commercial Real Estate Brokerages in an Uncertain Russian Market
March 28, 2022 —
Cait Horner & Adam J. Weaver - Gravel2Gavel Construction & Real Estate Law BlogSeveral commercial real estate firms have joined the growing list of companies temporarily suspending – or outright terminating – property and facility management operations in Russia amid economic sanctions and mounting international pressure. CBRE is the latest to make such a move, discontinuing its Russian leasing, investment and property management operations and denouncing Russia’s invasion of Ukraine in a statement issued March 7th. Other major players, including Savills, Knight Frank, and Colliers, have already suspended operations in the country, citing similar concern for international sanctions and the humanitarian impact of the invasion. Colliers is going even further to suspend operations in Belarus as well. Recently, global real estate service giant JLL switched course, issuing a formal statement that “with great sadness,” it will begin the process of separating from its domestic operations in Russia, though not commenting on whether the separation will be temporary or permanent. This is a significant change from just earlier this month , where, when asked about pulling operations from the country, JLL stated it would stay abreast of the situation abroad and continue to ensure the safety of its people and clients.
Now that CBRE and Dallas-based JLL have joined the list, Houston-based powerhouse Hines appears to be continuing its “wait and see” approach. Hines currently owns Russian assets valued at $2.9 billion, nearly 2 percent of its entire $160 billion asset portfolio, and its property management portfolio manages more than 243 million square feet worldwide. While other firms have temporarily suspended current operations, Hines has gone so far as to say it will avoid servicing any future investments in the country, though it did similarly condemn Russia’s actions. With JLL’s recent decision , if Hines does take a stronger stance, it will likely happen soon.
Reprinted courtesy of
Cait Horner, Pillsbury and
Adam J. Weaver, Pillsbury
Ms. Horner may be contacted at cait.horner@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Associated Builders and Contractors Northern California Chapter Announces New President/CEO
January 24, 2022 —
Associated Builders and Contractors, Northern California Chapter(January 19, 2022 – Livermore, CA) Associated Builders and Contractors, Northern California Chapter (ABC NorCal) Board of Directors launched an exhaustive, nationwide CEO search, and recently selected Deborah Maus as the next President/CEO. Deborah is a Certified Association Executive (CAE) with 25+ years of strategic and operational leadership. Prior to accepting the position, Deborah served as the chief executive officer of Plumbing Heating Cooling Contractors of California.
Mark Kirkes, President of MK Electric & Design Inc—and 2022 ABC NorCal Chair— said, "We believe Deborah will focus on strengthening organizational structure to meet new and expanding program needs, guide policy development and strategic innovations, bring increased value to members and continue to be the leading voice of the merit shop in Northern California. Her demonstrated knowledge of the industry and her support of all who desire to succeed in the construction industry made her an ideal choice to advance ABC's mission in Northern California."
Former ABC NorCal President/CEO Michele Daugherty is transitioning to the ABC Central Florida Chapter as President/CEO, continuing her 16+ years of service in ABC. ABC 2021 Chair, Josh Ward noted, "Michele has been working for ABC since 2006 and we are happy to see that she is staying in the ABC family—continuing to fight for the Merit Shop. The Executive Committee expresses its sincere appreciation for Michele and her remarkable services to the organization. Her enthusiasm and leadership will be deeply missed and difficult to replicate. However, we believe we have found the right person in Deborah Maus."
About ABC Northern California Chapter
ABC Northern California Chapter (ABC NorCal) is a trade association founded on the merit shop philosophy and dedicated to serving construction professionals from Fresno to the Oregon border. Our mission: To promote free enterprise by advancing the merit shop philosophy in the construction industry through education, advocacy and business services. To learn more visit www.abcnorcal.org
What is Bad Faith?
April 04, 2022 —
Stacy M. Manobianca - Saxe Doernberger & Vita, P.C.As a policyholder, you may have heard the term “bad faith” in the context of litigation against your insurer. Bad faith in the insurance context is a catch-all term for a broad category of claims that can be brought against your insurer. Bad faith claims are common in insurance coverage litigation, and they can be a powerful tool in a policyholder’s arsenal. This post will serve as an introduction to some basic concepts surrounding bad faith litigation.
Table of Contents
- Bad Faith Defined:
- Statutory vs. Common Law Bad Faith Claims
- Breach of Contract vs. Tort Bad Faith Claims
- Substantive vs. Procedural Bad Faith Claims
- Best Practices Throughout the Claims Process:
- Involve an Experienced Coverage Attorney
- Conclusion
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Stacy M. Manobianca, Saxe Doernberger & Vita, P.C.Ms. Manobianca may be contacted at
SManobianca@sdvlaw.com
Michigan Court of Appeals Remands Construction Defect Case
February 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here.
Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds.
MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Fifth Circuit Confirms: Insurer Must Defend Despite Your Work/Your Product Exclusion
February 14, 2022 —
Nathan A. Cazier & Scott S. Thomas - Payne & FearsThe United States Court of Appeals for the Fifth Circuit recently confirmed that liability insurers have a duty to defend their insureds in construction defect cases when the underlying complaint alleges damage to property beyond the product and work of the insured – even if the complaint merely implies that the insured seeks such damage, without explicitly alleging so. Siplast, Incorporated v. Employers Mutual Casualty Company, No. 20-11076, 2022 WL 99303 (5th Cir. Jan. 11, 2022).
The Archdiocese of New York replaced the roof over Cardinal Spellman High School in the Bronx, using a roofing membrane manufactured by Siplast, Inc. (“Siplast”). After a rainstorm a few years later, school officials reported water damage to the ceiling tiles throughout the school, and repair attempts only made the leaking worse. Siplast disputed that the leaks were its fault and refused to replace the roof, so the Archdiocese sued.
Reprinted courtesy of
Nathan A. Cazier, Payne & Fears and
Scott S. Thomas, Payne & Fears
Mr. Cazier may be contacted at nac@paynefears.com
Mr. Thomas may be contacted at sst@paynefears.com
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