Anaheim California Building Consultant Directory

First Circuit Finds No Coverage For Subcontracted Faulty Work

December 17, 2024 — Eric Hermanson & Austin Moody - White and Williams LLP
After almost two years' deliberation, the First Circuit last week issued its long-awaited decision in Admiral Ins. Co. v. Tocci Bldg. Corp.[1]: affirming on other grounds, and leaving in place a district court decision that found subcontracted faulty work was not an "occurrence" and did not lead to covered “property damage” under Massachusetts law. The decision leaves Massachusetts among a number of states where general contractors should not expect coverage from their commercial general liability (CGL) insurers for damage falling within the contractor’s scope of work. Since the "scope of work" – where general contractors are involved – often encompasses an entire project, contractors who want coverage in Massachusetts should take care to make alternative arrangements: transferring risk to subcontractors through indemnity provisions and additional-insured endorsements, or relying on other policy forms where available. Reprinted courtesy of Eric Hermanson, White and Williams LLP and Austin Moody, White and Williams LLP Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the full story...

Behavioral Science Meets Construction: Insights from Whistle Rewards

September 09, 2024 — Aarni Heiskanen - AEC Business
In this episode of the AEC Business Podcast, Aarni Heiskanen hosts Drew Carter, CEO of Whistle Rewards, and Dr. Laurel Newman, a behavioral scientist, to discuss instant rewards for driving behavioral change in construction. Laurel shares her psychology background and academic career, studying how the environment influences behavior. Drew introduces himself as a data scientist, focusing on predictive modeling. Tune in to learn how they collaborate to create motivating environments in the construction industry. Whistle Rewards is a platform specializing in rewards, recognition, and incentives in the AEC industry. It is designed to enhance employee engagement, safety compliance, performance, and technology adoption in construction companies. The Guests Drew Carter, CEO and Co-Founder at Whistle Systems, Inc. Drew is improving employee retention using data science and behavioral science. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Business Risk Exclusion Dooms Coverage for Construction Defect Claim

January 21, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The First Circuit, following Massachusetts law, found that coverage for allegations against the insured contractor for faulty workmanship were barred by the policy's (j) (6) Exclusion. Admiral Ins. Co. v. Tocci Bldg. Corp., 2024 U.S. App. LEXIS 28439 (1st Cir. Nov. 8, 2024). Tocci Building Corporation was the construction manager for an apartment project owned by Toll JM EB Residential Urban Renewal LLC (Toll). There were several work quality issues and delays on the project and Toll eventually terminated Tocci for alleged mismanagement of the project. Toll then filed a lawsuit against Tocci. The claims against Tocci included (1) damage to sheetrock resulting from faulty roof work; (2) mold formation resulting from inadequate sheathing and water getting into the building; and (3) damage to a concrete slab, wood framing, and underground pipes resulting from soil and settlement due to improperly backfill and soil compaction. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Update: Amazon Can (Still) Be Liable in Louisiana

December 31, 2024 — Michael Ciamaichelo - The Subrogation Strategist
On November 25, 2024, in Pickard v. Amazon.com, Inc., No. 5:20-cv-01448, 2024 U.S. Dist. LEXIS 215377, the United States District Court for the Western District of Louisiana (District Court) ruled that Amazon.com, Inc. (Amazon) could be liable for manufacturer-seller liability under the Louisiana Products Liability Act (LPLA) for a defective product sold by a third-party seller through the “Fulfillment by Amazon” program (FBA). The court also dismissed two tort claims against Amazon as follows: (i) Amazon does not qualify as a “seller” for purposes of non-manufacturer seller liability (because passing title is required for that claim); and (ii) there is insufficient evidence to prove the decedent, Archie Pickard (Pickard), relied on Amazon’s safety practices when purchasing the defective product, precluding a claim for negligent undertaking. Background Pickard died from injuries sustained in a house fire allegedly caused by a defective battery charger he purchased on Amazon. Jisell, a Chinese company and a third-party seller, manufactured and sold the charger. Amazon never took title to the charger but stored it in its warehouse and delivered it to Pickard through the FBA. Pickard’s children filed a wrongful death lawsuit against Amazon alleging three claims: (i) manufacturer-seller liability under the LPLA; and tort-based claims of (ii) non-manufacturer seller liability and (iii) negligent undertaking. After Amazon moved for summary judgment on all claims, the District Court certified questions to the Supreme Court of Louisiana (Supreme Court) seeking guidance as there was minimal guidance regarding the application of products claims to online marketplaces. Read the full story...
Reprinted courtesy of Michael Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

Additional Insured is Loss Payee after Hurricane Damage

October 01, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Construing the policy language, the federal district court found that the policy's additional insured was the loss payee for damage caused by Hurricanes Laura and Delta. TCP Ryan St. LLC v. Weschester Surplus Lines Ins. Co., 2024 U.S. Dist. LEXIS 125529 (W.D. La. July 16, 2024). Hurricanes Laura and Delta caused damage to TCP Ryan Street, LLC's (TCP) property. Westchester had issued a policy to MRI Heritage Brand, Inc. (MRI). MRI, as lessee, was obligated pursuant to the lease terms to "purchase and maintain . . . a policy of fire, extended coverage, vandalism and malicious mischief (or 'all risk') insurance coverage on all real property situated at the Lease Premises." The lease also required MRI to obtain coverage under a policy naming only the landlord as the sole insured and provided that the proceeds would be payable to the landlord. The policy provided that no entity was covered unless Westchester had received identifying information for the entity during the application process or the entity was added by endorsement. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

“Since You Asked. . .”

October 15, 2024 — Daniel Lund III - Lexology
… you must now pay. So said a California appellate court, affirming the trial court’s decision against a subcontractor suing for unpaid subcontract sums. Instead of being awarded those unpaid amounts, the subcontractor lost the case and was tagged with a $1.55 million attorney’s fees award and $270,000 costs award in favor of the defendants. What went wrong? California law requires a licensed contractor to maintain at all times proper workers’ compensation insurance coverage. The failure to maintain the coverage and have the certificate of coverage on file with the California Contractors State License Board results in “automatic and immediate suspension” of the contractor license. Retroactive reinstatement of the license may occur only if the contractor provides proof of the insurance within 90 days of the effective date of the insurance certificate – unless the contractor can show that failure to have the certificate on file was “due to circumstances beyond the control of the licensee.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power

October 28, 2024 — Mark Chediak - Bloomberg
A growing number of utilities are resorting to an extreme measure to prevent their equipment from sparking catastrophic wildfires: turning off the power. Electric companies serving about 24 million homes and businesses across the fire-prone US West now have plans to preemptively cut electricity during dangerous fire conditions, according to an analysis of data compiled by researchers at Stanford University. The proactive blackouts, however, run counter to the power companies’ main mission — which is to keep the lights on. And that’s angering customers and officials. Lawsuits — and the billions of dollars of damage claims that come with them — are an increasing concern among utilities, said Michael Wara, who leads the Climate and Energy Policy Program at Stanford University. Read the full story...
Reprinted courtesy of Mark Chediak, Bloomberg

Thank You for 18 Straight Years in the Virginia Legal Elite in Construction Law

December 31, 2024 — Christopher G. Hill - Construction Law Musings
Thank you once again to those in the Virginia legal community who elected me to the Virginia Business Legal Elite in the Construction Law category for the 18th consecutive year. The 18 consecutive years of election to the Legal Elite in the Construction Category span my nearly 15 years as a solo construction attorney. The fact that you all have continued to elect “100%” of the lawyers at The Law Office of Christopher G. Hill, PC for the last 14 years is most gratifying and only confirms that my decision to “go solo” over 14 years ago was a good one. To be included in this list of top construction attorneys is both humbling and gratifying. For the complete list of the Virginia construction lawyers who were elected along with me, see the 2024 Virginia Business Legal Elite in Construction Law. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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