Anaheim California Building Consultant Directory

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

“Bound by the Bond”

September 02, 2024 — Daniel Lund III - Lexology
A New York trial court granted judgment in favor of a performance bond surety on a construction project, based upon the failure of the claiming party to abide by the terms of the bond. The “AIA Document A312” bond form – described by the court (quoting surety law authority) to be “one of the clearest, most definitive, and widely used type of traditional common law ‘performance bonds’ in private construction” – contains various procedures which must be honored as a “condition precedent to an action to recover” on the bond/against the surety. One of those prerequisites is a “declaration of default” concerning the contractor principal (here, a subcontractor). The case involved the construction of an 85-story skyscraper in midtown Manhattan, and the performance of the subcontract for the building’s superstructure. The bonded contract was at a value of approximately $25,000,000 and obligated the sub to provide a performance bond “in a form similar to the [A312 bond],” and which was otherwise satisfactory to the obligee/construction manager. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Boston Team Secures Summary Judgment Dismissal on Client’s Behalf in Serious Personal Injury Case

October 21, 2024 — Lewis Brisbois Newsroom
Boston, Mass. (October 14, 2024) - Boston Managing Partner Kenneth B. Walton and Partner Matthew M. O' Leary recently secured summary judgment on behalf of a civil engineering firm in a serious personal injury matter arising from a trip-and-fall incident in a mall parking lot. The client was retained to provide site civil engineering design for the parking lot of a local mall. The design included multiple bioretention areas known as rain gardens. In November of 2019, a woman tripped and fell while attempting to cross a rain garden to reach her car. She suffered significant bodily injuries, including a fracture of the cervical spine that resulted in partial paralysis. The woman and her husband sued the mall's owner for negligence and loss of consortium in June 2021. The owner, in turn, impleaded Lewis Brisbois' client and the lot's builder, asserting third-party claims for contribution, contractual and common law indemnity, and breach of contract. In addition, the builder cross-claimed against Lewis Brisbois' client for contribution and common law indemnity. Read the full story...
Reprinted courtesy of Lewis Brisbois

Kahana Feld LLP Senior Attorney Rachael Marvin and Partner Dominic Donato Obtain Complete Dismissal of Plaintiff’s Labor Law Claims on Summary Judgment

August 19, 2024 — Rachel Marvin - Kahana Feld
Kahana Feld attorneys Rachael Marvin and Dominic Donato secured summary judgment dismissal of plaintiff’s Labor Law §§ 240(1), 241(6), and 200 claims asserted against their client, a general contractor of a housing project in Orange County, New York. The case involved a construction accident in which plaintiff fell while traversing a ramp, which was placed across an eight-foot-deep excavation trench. Plaintiff was employed by a subcontractor and was part of a crew performing the framing work on the project. The accident occurred when he exited his work area by walking across a ramp that was placed across the excavated trench, when the ramp gave way and plaintiff fell into the excavation. Read the full story...
Reprinted courtesy of Rachel Marvin, Kahana Feld
Ms. Marvin may be contacted at rmarvin@kahanafeld.com

Celebrating Dave McLain’s Recognition in the Best Lawyers in America® 2025

September 16, 2024 — Higgins, Hopkins, McLain & Roswell, LLC
We are thrilled to announce that David M. McLain, a founding partner of Higgins, Hopkins, McLain & Roswell, LLC, has been recognized in the prestigious publication, The Best Lawyers in America® 2025. David has earned this honor for his outstanding work in Construction Law and Litigation – Construction. For over two decades, David has been a leading figure in the field of construction law. His dedication to providing exceptional legal services to developers, general contractors, and other construction professionals has set him apart as a trusted advisor and advocate in the Colorado construction industry. His inclusion in The Best Lawyers in America® 2025 is a testament to his hard work, legal acumen, and the respect he has garnered from his peers. About The Best Lawyers in America® The Best Lawyers in America® is one of the oldest and most esteemed peer-review publications in the legal profession. Each year, lawyers are nominated and evaluated by their peers based on their professional expertise and achievements. Only a select few receive this honor, making it a significant recognition of excellence in the legal field. Read the full story...
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

There Are Consequences to Executed Documents Such as the Accord and Satisfaction Defense

October 01, 2024 — David Adelstein - Florida Construction Legal Updates
A federal government contractor in Jackson Construction Co., Inc. v. U.S., 62 Fed.Cl. 84 (Fed.Cl. 2024) sought delay damages against the government. It lost. The reason for the loss is a crucial reminder that documents parties sign ALWAYS matter. ALWAYS!! In Jackson Construction Co., the contractor’s delay claim was premised on relocating a waterline. The contractor, however, received additional money for relocating the waterline, but no additional time, and this was memorialized in a modification to the contract (i.e., a change order). In executing the modification for the additional work, the contractor did NOT reserve rights for time or money. Indeed, the modification reflected that the monetary adjustment constitutes full compensation for the additional work including delay, namely:

The contract period of performance remains the same. It is further understood and agreed that this adjustment constitutes compensation in full on behalf of the contractor and his subcontractors and suppliers for all costs and markup directly or indirectly, including extended overhead, attributable to the change order, for all delays related thereto, and for performance of the change within the time frame stated.

Jackson Construction Co., supra, at 90.

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Crisis Averted! Pennsylvania Supreme Court Joins Other Courts in Finding that Covid-19 Presents No Physical Loss or Damage for Businesses

October 21, 2024 — Edward M. Koch & Marc L. Penchansky - White and Williams LLP
Seeking to find some relief from business losses experienced during the COVID-19 pandemic, many businesses turned to their property insurers for coverage for their lost income. A clear national trend emerged among courts deciding the issue, as most businesses could not establish coverage because they had not experienced a “direct physical loss of or damage to their covered property” as required by most policies. While this legal question may have become an afterthought for many attorneys, the question remained an open one in Pennsylvania while the Pennsylvania Supreme Court considered two contradictory holdings issued in the Superior Court on this topic. Compare Macmiles, LLC v. Erie Ins. Exch., 286 A.3d 331 (Pa. Super. 2022) (holding there was no coverage for loss of use of a commercial property unaccompanied by any physical alteration or other physical condition that rendered the property unusable or uninhabitable) with Ungarean v. CNA, 286 A.3d 353 (Pa. Super. 2022) (holding that the policy at issue was ambiguous and therefore the policy covered the insured for COVID-related business losses). Last week, the Supreme Court considered the Superior Court’s holdings in Macmiles and Ungarean and held, at long last, that COVID-19 did not cause a direct physical loss of or damage to covered property. Reprinted courtesy of Edward M. Koch, White and Williams LLP and Marc L. Penchansky, White and Williams LLP Mr. Koch may be contacted at koche@whiteandwilliams.com Mr. Penchansky may be contacted at penchanskym@whiteandwilliams.com Read the full story...

Robinson+Cole’s Amicus Brief Adopted and Cited by Massachusetts’s High Court

July 31, 2024 — Erica Whaley - Construction Law Zone
Earlier this year, the Associated Subcontractors of Massachusetts hired Robinson+Cole attorney Joseph Barra to submit an amicus brief to the Massachusetts Supreme Judicial Court for consideration in the appeal pending before it in Business Interiors Floor Covering Business Trust v. Graycor Construction Co., Inc. In its June 17, 2024 decision in that case, the Court interpreted the Massachusetts Prompt Pay Act, which applies to private construction projects and “requires that parties to a construction contract approve or reject payment within” an allotted time period and in compliance with certain procedures else such payments will be deemed approved. Two years ago, the Massachusetts Appeals Court, in Tocci Building Corp. v. IRIV Partners, LLC, decided that an owner who fails to timely advise its general contractor of the reasons as to why it was withholding payment, coupled with failure to certify that such funds are being withheld in good faith, violates the Prompt Pay Act and makes the owner liable for funds owed.[1] However, the Tocci Building Court left open the question of whether one who violates the Prompt Pay Act forfeits its substantive defenses to non-payment, such as fraud, defective work, or breach of material obligation of the contract. The facts of Business Interiors involve a general contractor, Graycor, which subcontracted Business Interiors to perform certain flooring work for a movie theatre in Boston’s North End. When Graycor failed to formally approve, reject, or certify, in good faith, its withholding of payment of three of Business Interiors’ applications for payment as prescribed by the Prompt Pay Act, Business Interiors brought suit alleging, among other things, breach of contract. Business Interiors then moved for summary judgement arguing that Graycor’s failure to comply with the Act rendered it liable for the unpaid invoices. Read the full story...
Reprinted courtesy of Robinson + Cole

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