TARGETED TENDERS

Construction defect cases are occurrence based matters which, in South Carolina, are pre-determined to involve the occurrence of property damage each and every year following a construction project. The “continuous trigger” theory puts the onus on a defense attorney to send notice in the form of a “tender letter” to all insurers affording CGL coverage to an insured for the time on risk. Today we … Continue reading TARGETED TENDERS

Mississippi Legislation to Drastically Reduce Liability for Property Owners

The language within the bill would eliminate lawsuits against landowners in situations where injury was caused by a third party, unless claimants can prove:

(a) The conduct of said third party occurred on the property;
(b) The conduct of the person who owns, leases, operates, maintains or manages the property actively and affirmatively, with a degree of conscious decision-making, impelled the conduct of said third party; and (c) The third party’s conduct proximately caused the economic and noneconomic damages suffered by the injured party. Continue reading Mississippi Legislation to Drastically Reduce Liability for Property Owners

Ongoing Operations and Completed Operations Coverage

I often speak with prime contractors and owners who assure me that they require subcontractors to name them as additional insureds. This is the correct line of thinking as additional insured treatment is one of the key principals to adequately transfer the risk of construction defects or non property injury. The devil, as they say, is in the details, however. During these inquiries I often … Continue reading Ongoing Operations and Completed Operations Coverage

Harleysville Decision Confirms Crossman, cautions insurance carriers

Brief Facts:  Insurance carrier (Harleysville) insured a Developer which was sued under several names or “d/b/a” identities.  Developer was sued for construction defects. Carrier defended the claims on behalf of the Developer under various reservations of rights. General verdicts were returned against the Developer entities for $4,500,000.00 in actual damages and $1,000,000 in punitive damages. Insurance carrier then filed a declaratory judgment action seeking a determination of what portion … Continue reading Harleysville Decision Confirms Crossman, cautions insurance carriers

Still a Beneficial Tool, Mediation Process Is Not Perfect

     In 2001 I mediated my first case as a young lawyer with just enough knowledge to be dangerous…..to myself most likely.   Over the past 14 years I have observed the process and it’s uncanny ability to resolve the previously unresolvable.  Lately I have noticed the indirect, less tangible benefits.  That said, a review of the past 15 years leaves me with a … Continue reading Still a Beneficial Tool, Mediation Process Is Not Perfect

Construction Manager entitled to Additional Insured Status

A recent decision in New York has held that a construction manager was entitled to additional insured treatment under a general contractor’s CGL policy.  Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015). The Construction Manager (“Turner”)    was hired to “provide pre-construction services and construction management services for the Project.”   The owner hired two … Continue reading Construction Manager entitled to Additional Insured Status

Florida Rules Developer Not Entitled to Additional Insured Coverage for Negligent Misrepresentation

A Florida court has determined that a project owner’s (Cypress) general partner was not an additional insured under an insurance policy issued to the Genral Contractor (WPC) who constructed the project.  The ruling was made in conjunction with a lawsuit brought by a homeowners association for construction defects, maintenance issues and failure to disclose material facts.  WPC’s insurer (St. Paul) was not obligated to defend … Continue reading Florida Rules Developer Not Entitled to Additional Insured Coverage for Negligent Misrepresentation

North Carolina Courts face coverage for faulty work issue in Nationwide v. Hyde

Insurance coverage for faulty workmanship is certainly not a new topic on this blog, and states have entertained the issue with varying conclusions for years. The U.S. District Court for the Western District of North Carolina will take this issue on in a case styled Nationwide Mutual Insurance Company v. Hyde. (1:2015cv00137)  In Nationwide Mutual Insurance Company v. Hyde, Nationwide requests a declaratory judgment that … Continue reading North Carolina Courts face coverage for faulty work issue in Nationwide v. Hyde

Settlement of Construction Defect Claim Without Involvement and Participation of Insurance Carrier is a poor idea

The Fourth Circuit has provided a reminder for lawyers to obtain consent from its insurers when settling construction defect claims. Otherwise, you risk losing coverage for the claim, which will prevent recovery from the insurer of any settlement amount that you paid. Gaylord National, LLC hired Perini/Tompkins Joint Venture (PT) in 2005 to serve as the construction manager for a $900 million hotel and convention … Continue reading Settlement of Construction Defect Claim Without Involvement and Participation of Insurance Carrier is a poor idea

South Carolina Supreme Court Upholds Court of Appeals Bar Using “Your Work” and Product Replacement Exclusions to Deny Subcontractor Recovery

In Precision Walls, Inc. v. Liberty Mutual Fire Insurance Co., No. 2013-000787 (S.C. Ct. App. July 23, 2014), the general contractor contracted with Precision for the installation of exterior insulation board. Precision, being an approved applicator sold the installation board in question. After Precision completed its work, a masonry subcontractor began construction of the brick veneer wall which came into contact with the Precision product. … Continue reading South Carolina Supreme Court Upholds Court of Appeals Bar Using “Your Work” and Product Replacement Exclusions to Deny Subcontractor Recovery