Anaheim California Building Consultant Directory

Additional Insured Not Entitled to Coverage for Named Insured's Defective Work

September 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024). The City of Chicago contracted with Walsh Construction Company to manage the construction of a canopy and curtain wall system at O'Hare International Airport. Walsh entered into a contract with Carlo Steel Corporation, which in turn subcontracted with LB Steel, LLC to fabricate and install steel columns to support the wall and canopy. LB Steel listed Walsh as an additional insured in its commercial general liability policies. LB Steel's insurers were St. Paul, Travelers, and Charter Oak Fire Insurance Company. Several years into the project, the City discovered cracks in the welds of the steel columns and sued Walsh. Walsh, in turn, sued LB Steel under its subcontract. Walsh also asked LB Steel's insurers to defend it in the City's lawsuit, but they refused to do so. Walsh eventually secured a judgment against LB Steel, but LB Steel declared bankruptcy. Walsh then sued LB Steel's insurers to recover the costs of defending against the City's lawsuit and indemnification for any resulting losses. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurer's Motion for Summary Judgment to Dispose of Hail Damage Claim Fails

November 25, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for summary judgment seeking to dismiss the insured's complaint requesting coverage for hail damage and a claim for bad faith. Rodriquez v. State Farm Lloyds, 2024 U.S. Dist. LEXIS 160007 (W.D. Tex. Sept. 5, 2024). Mr. Rodriquez sought coverage under his homeowners policy after a hail and wind storm damaged his roof. After inspection, State Farm agreed that some minimal loss caused by hail was covered, but determined that the covered loss was less than the amount of the deductible. State Farm further determined that any hail damage to the roof was excluded by an endorsement, Exclusion of Cosmetic Loss to Metal Roof Coverings Caused by Hail. State Farm also determined that some damage was caused by previous faulty workmanship or wear and tear, both of which were excluded from coverage. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Procedural Matters Matter!

December 10, 2024 — Suzanne M. Nicholson - Wilke Fleury
As an appellate practitioner, I am keenly aware that sometimes, a procedural matter can doom what would otherwise be a meritorious issue for appeal. Trial attorneys are well-advised to check and double-check procedural rules and case law governing the issues in their cases. Here’s a few recent developments to be aware of. The record on appeal: electronic recordings now available in Santa Clara County. It should not be news to anyone that it is the appellant’s burden to produce an adequate record for appeal. That includes not just the written submissions to the trial court, but also reporter’s transcripts of all proceedings that could have a substantive impact on your case. If you do not have a court reporter present for your hearing, you will be struck trying your best to get an agreed statement or a settled statement should the case go up on appeal. Believe me, that can be a serious challenge. Any omissions or deficiencies are going to result in presumptions made against the appellant. Read the full story...
Reprinted courtesy of Suzanne M. Nicholson, Wilke Fleury
Ms. Nicholson may be contacted at snicholson@wilkefleury.com

Bally's Secures Funding for $1.7B Chicago Casino and Hotel Project

August 12, 2024 — Annemarie Mannion - Engineering News-Record
Plans for a $1.7-billion casino and adjacent 34-story hotel are advancing in Chicago as the gaming operator reports it has secured $940 million to complete funding for the project and has set demolition for a printing press building now occupying the site for this summer. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story...

ABC Announces Disaster Relief Efforts and Resources Following Hurricane Milton

October 15, 2024 — ABC - Construction Executive
HURRICANE RELIEF Florida, Georgia, South Carolina, North Carolina, Virginia and Tennessee were hit with Hurricane Helene, and now Florida is facing additional damage from Hurricane Milton, which is expected to make landfall on Wednesday, Oct. 9. Damages from Helene have already been catastrophic, and our hearts and prayers go out to all currently affected and those who may be in the path of Milton. Florida Gov. DeSantis has declared a state of emergency for 51 counties ahead of this impending storm. Donate to the ABC Cares Foundation via the online portal. The ABC Florida East Coast chapter and the ABC Cares Foundation Inc. are committed to assisting communities impacted by Hurricanes Helene and Milton. 100% of donations made to the ABC Cares Foundation—an IRS 501(c)(3)—for this purpose will be restricted, directly supporting regional needs, and are 100% tax deductible. Donate to the American Red Cross through ABC’s donation portal. Your Red Cross disaster relief gift will help people whose lives have been upended by wildfires, storms, floods and countless other crises. This custom website tracks donations by the ABC community and can be dedicated to a friend or loved one. Donate Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

For Whom Additional Insured Coverage Applies in New York

November 11, 2024 — Bill Wilson - Construction Law Zone
Simply including a requirement in a contract to add certain parties as additional insureds under a commercial general liability insurance (CGL) policy may not be enough to ensure such coverage is provided in New York. In New York City Hous. Auth. v. Harleysville Worcester Ins. Co., 226 A.D.3d 804 (2024), the New York Supreme Court Appellate Division – Second Department ruled that the language in an insurance endorsement required privity of contract with the insured party subcontractor to obtain additional insured status and denied coverage to others despite a provision in a subcontract requiring such additional insured coverage. In this case, an owner entered into a contract with a general contractor for construction services. The general contractor entered into a subcontract with a subcontractor. The subcontractor agreed to procure and maintain a CGL policy naming the owner, the general contractor, and another related party as additional insureds thereunder. An employee of the subcontractor was injured on the project and sued the three additional insureds and several other parties. Subcontractor’s insurance company refused to defend and indemnify any party other than the general contractor. All the parties sued by the subcontractor’s employee brought an action against the subcontractor’s insurance company, seeking coverage for defense and indemnification as additional insureds under the subcontractor’s CGL policy. Read the full story...
Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

There is No Presumptive Resumption!

January 21, 2025 — Daniel Lund III - Lexology
A Louisiana school board filed suit in court in 2018 on a construction project but was rebuffed based upon arguments by the general contractor and surety defendants. Those defendants asserted that the court filings were premature, based upon an arbitration clause in the general contract. The trial court agreed and stayed the litigation, “pending completion of arbitration.” Arbitration was never filed. Interestingly, within the arbitration clause, the following language existed: “For statute of limitations purposes, receipt of written demand for arbitration shall constitute the institution of legal or equitable proceedings based upon the Claim.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Seattle Developer Defaults on Renovated Office Buildings

December 23, 2024 — Anna Edgerton - Bloomberg
A major developer in downtown Seattle defaulted on a loan backed by two of its most prized office properties, including one that formerly housed a branch of the Federal Reserve Bank of San Francisco. Firms tied to Martin Selig Real Estate are in default on a more than $200 million loan, according to letters from lender Acore Capital dated Nov. 15 that were filed in Washington’s King County. The buildings would change ownership 30 days after that notice if no other action is taken, according to the letters. Read the full story...
Reprinted courtesy of Anna Edgerton, Bloomberg

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