Anaheim California Building Consultant Directory

Federal Court Holds that Demolition Exclusion Does Not Apply and Carrier Has Duty to Defend Additional Insureds

September 02, 2024 — Craig Rokuson - Traub Lieberman
In the recent case of Travelers Indem. Co. v. Trisura Specialty Ins. Co., 2024 U.S. Dist. LEXIS 101953 (S.D.N.Y. June 7, 2024), the court had occasion to consider the classic additional insured fact pattern of a construction accident. Travelers insured the general contractor and provided a defense to the general contractor as well as its wholly owned subsidiary. Trisura insured the subcontractor, who employed the injured worker. Travelers brought suit, alleging that Trisura is obligated to defend and indemnify the general contractor, its subsidiary, the owner of the building (The City of New York), and the tenant. Trisura denied any obligation to provide coverage due to the application of the “Demolition Exclusion” to the Trisura policy, which provides, in part, that there is no coverage for injury or damage arising out of the demolition of any building or structure which has original ground height in excess of three stories. The accident occurred during the interior demolition of the fifth floor of the building. The court held that the Demolition Exclusion applies only when there is a complete tearing down, razing, or destruction of an entire building. As the accident occurred during interior demolition, the exclusion did not apply. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

OSHA Finalizes PPE Fitting Requirement for Construction Workers

December 31, 2024 — Jonathan H. Schaefer - Construction Law Zone
On December 11, 2024, the Occupational Safety and Health Administration (OSHA) announced it finalized a revision to the personal protective equipment (PPE) standard for the construction industry. The final rule adds specific language to the existing standard requiring employers to provide properly fitting PPE for construction industry workers. This change aligns the construction industry with the standards in place for the general industry. According to OSHA, many types of PPE must properly fit workers. Improperly sized PPE can ineffectively protect workers, creating new hazards for them, such as oversized gloves or protective clothing being caught in machinery and discouraging use because of discomfort or poor fit. OSHA stated that the longstanding issue with improperly fitting PPE particularly impacted women, as well as physically smaller or larger workers. Read the full story...
Reprinted courtesy of Jonathan H. Schaefer, Robinson+Cole
Mr. Schaefer may be contacted at jschaefer@rc.com

Federal District Court Addresses Material Misrepresentation in First Party Property Damage Claim

August 26, 2024 — James M. Eastham - Traub Lieberman
In Pittsfield Dev. LLC v. Travelers Indem. Co., 2024 U.S. Dist. LEXIS 117530 (N.D. Ill. July 3, 2024), the United States District Court for the Northern District of Illinois addressed an alleged material misrepresentation by an insured during the course of the adjustment of a water loss claim at an insured property. Subsequent to a pipe burst event which caused damage to a number of the floors in the insured building, the insured submitted a claim to Travelers and also submitted, with the assistance of a retained public adjuster, a damage estimate of the damages at the property. Included within the estimate submitted by the insured was a line item for "Lead Paint & Asbestos Removal" with a corresponding dollar amount of $1,140,000. It was this line item which formed the basis of Travelers' claim of misrepresentation. At his deposition, the public adjuster testified that the $1,140,000 figure was an oral estimate received over the phone from an asbestos remediation company. Travelers disputed the testimony and contended that no such estimate was ever provided. For support, Travelers pointed to deposition testimony from a remediation company employee that while rough estimates were occasionally given verbally, the largest over the phone estimate she could recall was in the $20,000-$25,000 range. It was also disputed that the company would ever provide an oral quote of that magnitude sight unseen, especially since the largest project the remediation company had ever completed was less than $250,000. Read the full story...
Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Damage Caused Not by Superstorm Sandy, But by Faulty Workmanship, Not Covered

December 10, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court adopted the Report and Recommendations (R&R) of the magistrate judge, finding there was no coverage for faulty workmanship in replacing a roof for an apartment complex. Burlington Ins. Co. v. PCGNY Corp., 2024 U.S. Dist. LEXIS 167814 (S.D. N. Y. Sept. 16, 2024). Skyline Restoration was hired by the apartment complex to replace the apartments' roofs. Skyline subcontracted with PCGNY Corporation. The roofs were later damaged during Superstorm Sandy. Defendant Affiliated FM Insurance Company ("Affilliated"), a subrogee of the owner of the apartment complex, sued Skyline for defective, faulty and unworkmanlike removal and replacement of the roofs. Skyline filed a Third-Party Complaint against PCGNY. Plaintiff Burlington Insurance Company filed this coverage action against Skyline, Affiliated, PCGNY and others seeking a declaration that it had no duty to defend and/or indemnify PCGNY and/or Skyline, and that it was permitted to withdraw from the defense of PCGNY. Burlington filed a motion for summary judgment. The motion was referred to the magistrate judge who recommended that Burlington be granted a declaration that it had no duty to defend or indemnify PCGNY or Skyline and that it be allowed to withdraw from the defense of PCGNY in the underlying case. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Real Case, Real Lessons: Understanding Builders’ Risk Insurance Limits

August 12, 2024 — David McLain - Higgins, Hopkins, McLain & Roswell, LLC
In the recent case of 5333 Mattress King LLC v. Hanover Insurance Company, the United States District Court for the District of Colorado provided significant insights into the limits of builders’ risk insurance policies. Mattress King LLC, a warehouse owner, faced a substantial loss when a subcontractor drove a crane over and damaged the warehouse’s concrete floor slab during construction. Despite having a builders’ risk insurance policy with Hanover Insurance Company, coverage was denied, leading to litigation. Applicable Policy Provisions The policy in question was a Commercial Marine/Commercial Lines Builders’ Risk insurance policy. Builders’ risk insurance is designed to cover direct physical loss to covered property during construction unless the loss is excluded or limited by the policy. Key exclusions of the policy at issue included losses caused by faulty, inadequate, or defective:

Planning, zoning, surveying, or development
Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, or compaction
Materials used in construction or renovation
Maintenance of the covered property

Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Nine ACS Lawyers Recognized by Best Lawyers®

September 02, 2024 — Ahlers Cressman & Sleight PLLC
Departing from our blog’s typical coverage of construction related issues, Ahlers Cressman & Sleight PLLC is proud to announce that nine members of our firm have been recognized by Best Lawyers® in 2025 in America. Recognition by Best Lawyers® is based entirely on peer review and is designed to reflect the consensus opinion of leading lawyers about the professional abilities of their colleagues. Lawyers can be nominated by clients and other lawyers. After nomination, ballots are generated and distributed to lawyers. Voters are asked how likely they would be to refer a case to the nominee and to give a rating and additional comments. Ballots are designed based on the voter’s practice area and geographic region. After feedback is analyzed, Best Lawyers® research staff ensures nominees are in good standing with the ethics committee of their state bar and selects lawyers for recognition. Read the full story...
Reprinted courtesy of Ahlers Cressman & Sleight PLLC

Meet Your Future Team Members: AI Agents

December 10, 2024 — Aarni Heiskanen - AEC Business
If you’ve been following the discussion around AI, you’re familiar with the concept of AI agents. AI agents can be understood as intelligent automation that operates independently, monitoring its environment and taking action without constant human input. Unlike traditional software requiring specific inputs to produce predictable outputs, AI agents can adapt to varying conditions and user needs. AI agents can be based on various technologies, including Large Language Models. They can also be constructed using other AI technologies, such as rule-based systems, machine learning algorithms, and specialized models tailored to specific tasks. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Beth Cook Expands Insurance Litigation Team at Payne & Fears

September 30, 2024 — Beth A. Cook - Payne & Fears
Beth Cook has joined Payne & Fears LLP as Counsel in the firm’s Insurance Litigation Group. With 18 years of legal experience, Beth brings a wealth of knowledge to her practice, focusing on insurance coverage and litigation. “We are excited to welcome Beth to P&F! She brings a great deal of experience to our Insurance Litigation Group as we continue to grow the practice group,” said Sarah Odia, the group’s co-chair. “We look forward to working with Beth and welcome her fresh perspectives.” Get to Know Beth What activities do you enjoy outside of work? Travel, sporting events, movies, craft breweries, and wineries. Read the full story...
Reprinted courtesy of Beth A. Cook, Payne & Fears
Ms. Cook may be contacted at bac@paynefears.com

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