COLUMBUS OHIO BUILDING CONSULTANT
DIRECTORY AND CAPABILITIES

Hawaii Supreme Court Bars Insurers from Billing Policyholders for Uncovered Defense Costs

April 23, 2024 — Amanda C. Stefanatos - Saxe Doernberger & Vita, P.C.
Across the country, there is a split in authority as to whether an insurance company should be allowed to recoup defense costs where it is ultimately determined that the carrier has no duty to defend under the policy and the policy is silent as to such reimbursement. The Hawaii Supreme Court is the latest to enter the fray to address this very question, ruling in favor of policyholders in the recent case of St. Paul Fire & Marine Insurance Company v. Bodell Construction Company. Facts of the Case and Procedural History The Bodell case arose in response to a pair of certified questions from the US District Court for Hawaii to the Hawaii Supreme Court. The case involved a group of primary and excess insurers that sold liability policies to Bodell Construction and sought reimbursement of defense costs that the insurers had paid to defend a construction defect claim against Bodell. In the Underlying Action, the District Court ultimately ruled that the claims against Bodell Construction were not covered under the policies. Because the claims were not covered, the insurers demanded reimbursement of the defense fees from Bodell . Having determined there was no Hawaii state law on this issue, and in light of conflicting decisions in the district courts, the US District Court for Hawaii requested guidance from the Hawaii Supreme Court. Read the full story...
Reprinted courtesy of Amanda C. Stefanatos, Saxe Doernberger & Vita, P.C.
Ms. Stefanatos may be contacted at AStefanatos@sdvlaw.com

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A Matter Judged: Subrogating Insurers Should Beware of Prior Suits Involving the Insured

March 25, 2024 — Gus Sara - The Subrogation Strategist
In New Jersey Mfrs. Ins. Co. v. Lallygone LLC, No. A-2607-22, 2024 N.J. Super. Unpub. LEXIS 120, the Appellate Division of the Superior Court of New Jersey (Appellate Division) considered whether New Jersey Manufacturers Insurance Company (the carrier) could bring a subrogation action after its insured, Efmorfopo Panagiotou (the insured), litigated and tried claims related to the same underlying incident with the same defendant, Lallygone LLC (the defendant). The Appellate Division affirmed the trial court’s finding that the prior lawsuit extinguished the carrier’s claims. In Lallygone LLC, the insured hired the defendant to renovate a detached garage on his property. In March 2022, while the defendant’s employees were removing existing concrete slabs, the garage collapsed. After the incident, the insured stopped paying the defendant. In addition, the insured filed a claim with the carrier, which ultimately paid the insured over $180,000 for the damage under its property policy. The carrier sent a subrogation notice letter to the defendant. Read the full story...
Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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Velazquez Framing, LLC v. Cascadia Homes, Inc. (Take 2) – Pre-lien Notice for Labor Unambiguously Not Required

May 13, 2024 — Travis Colburn - Ahlers Cressman & Sleight
Pre-lien Notice for Labor Unambiguously Not Required. In January 2024, almost a year after Division 2 of the Washington Court of Appeals decided Velazquez Framing, LLC v. Cascadia Homes, Inc.,1 the Washington Supreme Court, sitting en banc, reversed and remanded the matter for further proceedings.2 The relevant background facts are that Cascadia Homes, Inc. (“Cascadia”), was a general contractor and also owned the property that was the subject matter of the underlying dispute. Cascadia wished to construct a new home on the property. Cascadia hired High End Construction, LLC (“High End”) – a framing subcontractor – to provide framing for the new home. High End, in turn, hired Velazquez Framing, LLC (“Velazquez”). Velazquez did not provide Cascadia – the owner – with notice of its statutory right to claim a lien. Read the full story...
Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

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Construction Contract Basics: Venue and Choice of Law

February 19, 2024 — Christopher G. Hill - Construction Law Musings
Previously in this on-again-off-again series of posts on construction contract basics, I discussed attorney fees provisions and indemnification. In this installment, the topic at hand is venue and choice of law. As construction professionals (outside of us construction attorneys), you are likely to be focused on things like the scope of work in a construction contract, the price terms, payment, delays, change orders, and the like. However, the venue (where any lawsuit or arbitration will have to happen) and the choice of law (what state’s law applies) can be equally important. You need to know where you will have to enforce your rights under the contract and also what law will apply. Will you need to go to another state to enforce your rights? Even if not, will your local attorney have to learn the law of another jurisdiction? These are important questions when reading and negotiating your prime contract (if with the owner) or subcontract (if with the general contractor). 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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Arizona Is Smart About Water. It Should Stay That Way.

February 19, 2024 — Mark Gongloff - Bloomberg
You really have to hand it to Arizona: Even as its population has doubled and it has suffered through a decades long megadrought, the state uses less water today than it did 40 years ago. This success story is the result of what may be the smartest, most conservative approach to water in the country. But homebuilders want to scrap some key elements of this careful system. It’s a bad idea, especially as the climate changes, making the state’s water supply less reliable. And it’s a cautionary tale for the rest of us as we try to adapt to a warming world. In 1980, alarmed at watching its precious groundwater disappear amid rapid development, Arizona passed the Groundwater Management Act. The law established the Arizona Department of Water Resources, set up water-management zones around cities and required new housing developments to prove they had access to 100 years’ worth of clean water, among other things. Read the full story...
Reprinted courtesy of Mark Gongloff, Bloomberg

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Construction Litigation Roundup: “Indeed, You Just Design ‘Em”

April 29, 2024 — Daniel Lund III - Lexology
Seeking to be extracted from personal injury litigation initiated by a laborer on a project in New Orleans, an architect sued for negligence filed a motion for summary judgment. The plaintiff had “testified in his deposition that after demolishing most of one of the side walls of the vault and a smaller section of the front wall, he was instructed to stand on top of the vault's concrete ceiling in order to demolish it with a hydraulic jackhammer.” One court noted that: “Shortly after beginning that task, the entire vault structure collapsed.” Claims against the architect included assertions of “failure to monitor and supervise the execution of the plans to ensure safety at the jobsite.” The architect urged in support of its MSJ that it did not owe a duty to oversee, supervise, or maintain the construction site, or have any responsibility for the plaintiff’s safety. Summary judgment was granted to the architect by the trial court, and an appeal ensued, whereupon the appellate court reversed. That intermediate court found that potential intervening knowledge of the architect of a potentially unsafe demolition practice created an issue of material fact. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Providing Your Insurer Prompt Notice

May 20, 2024 — David Adelstein - Florida Construction Legal Updates
Sometimes, when it comes to insurance, you may hear the argument that you breached your insurance policy by failing to provide your insurer with prompt notice as the insurance policy requires. Well, this is not such an absolute issue. With that said, you should absolutely provide your insurer with prompt notice of a claim or loss. No legitimate reason not to. But, if you don’t, it is not an absolute get out of jail free card for your insurer, but it does give them a good argument, which you don’t really want to deal with. In Gulfpoint Construction Co., Inc. v. Westfield Ins. Co., 2024 WL 1759228 (11th Cir. 2024), an insured appealed a trial court’s ruling that found it did not provide prompt notice to its property insurer as the policy required. In this case, notice was provided two years after a loss from a hurricane. The insurer denied coverage and, in doing so, relied on the insured’s failure to provide prompt notice. Although the trial court agreed, the appellate court found this was a genuine issue of material fact. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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The Black Woman Architect Who Hopes to Change the Face of Design in America

January 16, 2024 — Kriston Capps - Bloomberg
In the US, only 2% of licensed architects are Black. Less than a single percent are Black women. Architects tend to be older, White and men, as reflected by the leadership of both firms and professional groups. So when the American Institute of Architects inaugurated its 100th president, Kimberly Dowdell — the first Black woman to lead the association, and at 40 the youngest architect to ever hold the post — it suggested an optimistic change of course. A principal and director of strategic relationships for the global design firm HOK, Dowdell comes to her new position from a leadership background. She has served as the president of the National Organization of Minority Architects and sits on the board of the Chicago Central Area Committee and Chicago Architecture Biennial, among other groups. She is the winner of both the AIA’s Young Architects Award and the Women in Architecture award from Architectural Record. Dowdell spoke to Bloomberg CityLab about her goals as AIA president, the challenges facing the field and why every city should hire its own chief architect. Read the full story...
Reprinted courtesy of Kriston Capps, Bloomberg

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