Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy
February 05, 2024 —
James M. Eastham - Traub LiebermanIn Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision.
The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part."
Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
The Rise of Modular Construction – Impacts for Consideration
December 04, 2023 —
Chad V. Theriot - ConsensusDocsModular construction is not new. However, over the last several years, modular construction has seen significant growth with no signs of slowing down. In 2021, global modular construction represented a market of approximately $130 billion and is projected to reach upwards of $235 billion by 2031. Modular construction growth in the US is largely due to the technological advances and globalization.
In general, modular construction involves the manufacturing and fabrication of standardized components of a structure in an off-site, controlled environment. Once those components are fabricated, they are then transported to the project site and assembled by an installer or contractor. Moving these fabrication and construction activities off-site allows the fabricator to control the quality standards over the fabrication process and gain the economic advantage of an assembly line and manufacturing process. This leads to a reduction in cost. This cost savings is then passed on to the owner, thereby driving down the overall price of construction.
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Chad V. Theriot, Jones Walker (ConsensusDocs)Mr. Theriot may be contacted at
ctheriot@joneswalker.com
Creeping Incrementalism in Downstream Insurance: Carriers are Stretching Standard CGL Concepts to Untenable Limits
October 17, 2023 —
Eric M. Clarkson - Saxe Doernberger & VitaIn the construction sector, the importance of closely vetting downstream parties’ insurance has never been more critical. The markets have been hardening with no seeming end in sight and carriers are looking for any way to get an edge. Owners and general contractors need to be on the lookout for ever broader carrier-specific expansions of standard insurance provisions that are perilous for risk transfer. We are seeing more and more terms that go against the intent of ISO standard which is what is almost universally required in construction contracts.
One area where carriers are deviating from standard concepts is within pre-existing injury or damage exclusions in Commercial General Liability (“CGL”) policies. It is almost a universal requirement that downstream parties provide additional insured coverage to owners and general contractors on ISO form CG 00 01. Generally, ISO standard language provides coverage for sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage. One of the few main requirements to trigger coverage is that the injury or damage must occur during the policy period. Over the years, ISO standard language has evolved to exclude injury or damage if an insured or certain persons knew that it had occurred before the policy period. Additionally, injury or damage is deemed to have been known to have occurred under certain circumstances.
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Eric M. Clarkson, Saxe Doernberger & VitaMr. Clarkson may be contacted at
EClarkson@sdvlaw.com
Congratulations to BWB&O’s Newport Beach Team for Prevailing on a Highly Contested Motion to Quash!
January 08, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Newport Partners Tyler Offenhauser and Jonathan Cothran, and Associate Anisha Kohli, who recently prevailed on behalf of BWB&O’s client before the Orange County Superior Court on a highly contested Motion to Quash Service based on Plaintiff’s failure to timely file and serve a DOE Amendment, naming our client.
BWB&O’s client was the owner of a building where Plaintiff, a licensed electrician, was electrocuted while performing an upgrade to the building’s electrical infrastructure. Plaintiff’s original lawsuit named only the building’s tenant, who was also represented by BWB&O. BWB&O was successful earlier this year on a Motion for Summary Judgment under the Privette Doctrine and won judgment on behalf of the client/tenant. While that MSJ was pending, Plaintiff surreptitiously added the building’s owner to the suit with a DOE Amendment, after several months earlier learning the owner and then tenant were entities operated by the same individual. However, Plaintiff never informed counsel or any other party of the filing. Moreover, after the MSJ was granted, Plaintiff then waited several more months to serve the building’s owner.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Saving Manhattan: Agencies, Consultants, Contractors Join Fight to Keep New York City Above Water
November 27, 2023 —
Pam McFarland & Corinne Grinapol - Engineering News-RecordIn densely populated cities surrounded on all sides by water—the borough of Manhattan in New York City as a prime example—the risks from sea level rise and climate change are not just hypotheticals; they are existential threats.
Reprinted courtesy of
Pam McFarland, Engineering News-Record and
Corinne Grinapol, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
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ASCE Joins White House Summit on Building Climate-Resilient Communities
October 09, 2023 —
The American Society of Civil EngineersRESTON, Va. – The White House Climate Policy Office hosted the Summit on Building Climate Resilient Communities today and unveiled its
National Climate Resilience Framework for communities to build more resiliently as they face increasingly severe weather events. The framework features comprehensive recommendations and opportunities for action, including partnerships between federal agencies and leading standards development organizations such as the
American Society of Civil Engineers (ASCE), to improve the resilience of buildings and other infrastructure. ASCE president Maria Lehman, P.E., was in attendance for the Summit.
ASCE's most widely adopted standard,
ASCE 7-22, is the primary reference of structural design requirements in all U.S. building codes and is updated every six years to reflect the latest data and trends presented by an ever-changing climate. Its most recent update, published in 2022, includes updates to environmental hazards used for building design including new wind speeds along the hurricane coastline, a completely new chapter for tornado loads, and the most substantial update to its chapter on flood loads since the inception of ASCE 7-22 – calling for structures to be built to withstand 500-year floods rather than the previous standard of 100-year flood mitigation.
Although modern codes and standards, such as ASCE 7-22, can mitigate climate hazards, many communities throughout the U.S. have not yet adopted these practices. The new White House framework calls for ensuring federal funding requires climate-resilient infrastructure investments by encouraging government at all levels to adopt consensus-based engineering standards, which would go a long way towards addressing vulnerabilities posed by future climate impacts.
ASCE, in conjunction with industry leaders represented at the Summit, supports federal efforts to improve climate data, enforce the most stringent codes and standards, and provide technical assistance to building and infrastructure stakeholders. To learn more about environmental hazard mitigation resources, follow
ASCE's Pathways to Resilient Communities Toolkit, a plain-language guide for federal, state, and local leaders as they seek out standards, best practices, data, and strategies that can be implemented to safeguard communities across the country from increasingly severe weather events.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
Aarow Equipment v. Travelers- An Update
January 16, 2024 —
Christopher G. Hill - Construction Law MusingsPreviously here at Musings, I discussed the application of pay if paid clauses and the Miller Act. The case that prompted the discussion was the Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co. case in which the Eastern District of Virginia Federal Court determined that a “pay if paid” clause coupled with a proper termination could defeat a Miller Act bond claim. However, as I found out a couple of weeks ago at the VSB’s Construction Law and Public Contracts section meeting, the 4th Circuit Court of Appeals reversed and remanded this case in an unpublished opinion (Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co.)
In it’s opinion, the 4th Circuit looked at some of the more “interesting” aspects of this case. One of these circumstances was that Syska (the general contractor) directed Aarow to construct sedimentary ponds and other water management measures around the project (the “pond work”), which both agreed was outside of the scope of the work defined in their subcontract. Syska asked that the government agree to a modification of the prime contract and asked Aarow to wait to submit its invoice for the pond work until after the government issued a modification to the prime contract and Syska issued a change order to the subcontract.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Top 10 OSHA Violations For The Construction Industry In 2023
February 26, 2024 —
Dominic Donato & Jeff Miragliotta - Kahana FeldEvery year, the Occupational Safety and Health Administration (OSHA) publishes their top violations in the construction industry. And typically, the most common violations are consistent year after year. What separates 2023 is the number of citations involving Fall Protection, Scaffolding, Ladders, and the failure to use personal protective equipment (PPE) or other life safety equipment (LSE). The following is the list of the Top Ten OSHA violations for 2023:
(10) Toxic and Hazardous Substances. There were 382 citations issued for “hazardous communication” and improper warnings issued to construction employees.
(9) Excavations. There were 395 citations issued for failure to provide proper and specific excavation requirements and instructions.
(8) Scaffolding – Aerial Lifts. There were 481 citations issued for improper lifting equipment and supports for building scaffolding.
Reprinted courtesy of
Dominic Donato, Kahana Feld and
Jeff Miragliotta, Kahana Feld
Mr. Donato may be contacted at ddonato@kahanafeld.com
Mr. Miragliotta may be contacted at jmiragliotta@kahanafeld.com
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