Specified Or Designated Operations Endorsement – Limitation of Insurance Coverage
July 15, 2024 —
David Adelstein - Florida Construction Legal UpdatesYour commercial general liability (CGL) policy may contain a specified or designated operations endorsement. This does not operate as an exclusion but as a LIMITATION of coverage. The endorsement may provide that bodily injury or property damage ONLY applies to the operations or business described therein. Similarly, there may be a limitation of coverage for designated classifications or codes which has the same effect—limiting coverage to the classifications/codes listed therein. This is an important consideration, and you need to understand and watch out for such limitations of coverage. (These aren’t the only ones, but it’s important to appreciate that limitations of coverage operate to limit the coverage to which the CGL policy applies.)
The Eleventh Circuit Court of Appeal dealt with this exact issue under Alabama law (although the same analysis would apply in numerous jurisdictions). In this case, a landscaper (the insured) had a CGL policy with a specified operations endorsement that limited coverage to landscaping operations. The landscaper was hired to install an in-ground trampoline in addition to site and landscaping operations at a house. A person got hurt using the trampoline and the landscaper was sued. The CGL insurer denied coverage outright (and, thus, any duty to defend) because the complaint asserted that the injury occurred from the landscaper’s assembly and installation of the trampoline, which was not a landscaping operation. Furthermore, the Eleventh Circuit noted that the landscaper’s insurance application specified that the landscaper did not perform any recreational or playground equipment erection or construction, and the installation and assembly of a trampoline would constitute recreational or playground equipment.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
AI in Construction: What Does It Mean for Our Contractors?
December 17, 2024 —
Patrick Scarpati - Construction ExecutiveArtificial intelligence is revolutionizing the construction industry by enhancing efficiency, safety and decision-making throughout the project lifecycle. AI in construction involves the application of advanced technologies like machine learning, computer vision and data analytics to various construction processes. Through AI, machines can learn and imitate human cognitive functions.
The possibilities may sound endless, but as an industry traditionally looking from the outside in at technology, we must first step back to educate ourselves on the basics. This paper is meant to function as a starting point in your journey to understand AI and its potential impact on the construction industry. By reading through definitions, construction use cases and considerations, the reader should walk away with a base level of knowledge to ensure they can actively participate in future conversations on AI in construction.
Reprinted courtesy of
Patrick Scarpati, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Regional US Airports Are Back After Years of Decay
September 23, 2024 —
Lebawit Lily Girma - BloombergThe ski resorts near Gunnison and Crested Butte, Colorado, are so close to Aspen, you’d think the area wouldn’t need its own airport. Their glitzier neighbor is just 48 miles north as the crow flies, though that’s roughly 150 miles by road.
But people flocking to Crested Butte’s laid back town, extreme ski slopes and epic mountain biking have a new reason to bypass farther-away Aspen: the destination’s gleaming new airport, which debuted in January 2023.
Not only is the Gunnison-Crested Butte Regional Airport terminal easy to get across quickly, at just 40,000 square feet, it's also heated and cooled with geothermal energy and uses triple glazed windows to keep travelers warm in a town known to be one of the coldest places in the US.
And Crested Butte isn’t the only small town airport receiving an upgrade.
All across the US, at least a dozen small and medium-size facilities are being renovated and, in some cases, entirely rebuilt—typically on budgets that stretch eight and nine figures. That contradicts a long-held belief among aviation industry pros that these regional facilities were destined to gather dust and die out.
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Lebawit Lily Girma, Bloomberg
Congratulations to Partner Nicole Whyte on Receiving the Marcus M. Kaufman Jurisprudence Award
September 30, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPOn Thursday, September 19th, BWB&O Partner Nicole Whyte and her fellow recipients Michael Ermer and Hon. Kirk Nakamura (Ret.) were honored at this year’s Jurisprudence Awards Dinner, a fundraiser benefitting the Anti-Defamation League! Thank you to BWB&O Co-Founder and Nicole’s longtime business partner and friend Keith Bremer for his thoughtful introduction and for presenting her with the award, and to BWB&O’s team who joined the event to support Nicole Whyte.
Since 1993, the Anti-Defamation League has presented the Marcus M. Kaufman Jurisprudence Award to attorneys who make exceptional contributions to the legal profession and community. ADL’s mission is to stop defamation and secure justice and fair treatment for all people. To learn more about ADL, please visit adl.org
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Delays and Suspension of the Work Under Fixed Price Government Contract
July 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors.
In Lusk Mechanical Contractors, Inc. v General Services Administration, 2024 WL 1953697, CBCA 7759 (CBCA 2024), a contractor entered into a fixed price contract with the government to repair, replace, and modernize site and building systems at a federal building. The contractor commenced work right before Covid-19. When Covid-19 hit, the government issued the contractor a two-week suspension of work notice on March 27, 2020. The suspension of work allowed off-site administrative work to continue but suspended on-site physical work. The government extended the suspension of work three more times. The contractor could resume work on the exterior on June 1, 2020, but was not permitted to resume work on the interior until July 20, 2020. On the same date that the contractor was able to commence interior work, it submitted a modification for delay caused by the suspension – 64 days for the time period the entire site shutdown, and 51 days for the interior work shutdown.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Real Protection for Real Estate Assets: Court Ruling Reinforces Importance of D&O Insurance
October 01, 2024 —
Hunton Insurance Recovery BlogEarlier this month, an Illinois federal district court held that a liability insurer had no duty to defend or indemnify a property management company or its owner in lawsuits that included allegations of intentional conduct. The suits accused the owner of concealing financial information from and engaging in a scheme to increase tax liability and decrease profit distributions to a minority owner. This case reinforces the importance of maintaining D&O insurance as part of a comprehensive liability insurance program to protect against potential gaps in coverage that could result from allegations of intentional or knowing acts.
Background
The court in Old Guard Insurance Company v. Riverway Property Management, LLC et al., No. 1:23-cv-01098 (C.D. Ill. Sep. 6, 2024) was asked to determine whether Old Guard Insurance Co. was required to defend or indemnify Riverway Property Management LLC or its owner under two commercial general liability policies in relation to state court lawsuits. The lawsuits alleged that Riverway’s owner intentionally and improperly misappropriated funds and that the property management company knowingly and substantially assisted with this wrongful scheme.
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Hunton Andrews Kurth LLP
Extreme Rainfall Is Becoming More Frequent and Deadly
November 11, 2024 —
Lou Del Bello - BloombergTorrential rains that triggered floods and landslides have killed hundreds of people and displaced millions across parts of Africa, Europe, Asia and the US in recent months.
The unprecedented deluges overwhelmed even communities accustomed to extreme weather and showed the limitations of the early-warning systems and emergency protocols established in many countries to avoid major loss of life.
Climate scientists have warned that an accelerated water cycle is locked into the world’s climate system due to past and projected greenhouse gas emissions, and is now irreversible.
The communities that tend to pay the highest price are often in poorer countries, where environments can be more fragile and governance more patchy, and there are fewer resources to bounce back after a disaster.
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Lou Del Bello, Bloomberg
Why Being Climate ‘Positive’ Is the Buzzy New Goal of Green Building
December 10, 2024 —
Olivia Rudgard - BloombergThe three buildings, dotted around Norway, couldn’t look more different: a soaring timber-and-concrete obelisk in Porsgrunn; a squat, two-story Montessori school on the edge of a forest in Drøbak; and a concrete and glass wedge-shaped office in Trondheim, just a few hundred miles from the edge of the
Arctic Circle. But they share a distinctive feature. Each has a roof perfectly tilted to squeeze out every possible drop of solar energy.
They are called
Powerhouses, and the initiative behind them claims they are all “energy positive”: The upfront energy “cost” of each building, and that of later demolition and disposal, is expected to be made back over the building’s lifetime. Powerhouses sometimes draw from the grid, especially in winter, but in the long Nordic summer days they give back many times over, overspilling excess solar energy into surrounding homes and businesses.
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Olivia Rudgard, Bloomberg
