Re-Blog From Construction Law Signal-Pennsylvania Supreme Court Declares Insurance Defense Costs May Not Be Reimbursable

Pennsylvania Supreme Court Declares Insurance Defense Costs May Not Be Reimbursable

Posted by Elise M. Carlin on December 02, 2010 

Jonathan A. Cass, senior counsel with Cohen Seglias contributed to this post.

Your company is sued as a result of an alleged constructive defect. You tender the claim to your insurance company and they hire and pay for a lawyer to defend your company. It is later determined that there is no insurance coverage for the construction defect claim. Can the insurance company force your company to reimburse it for all the costs that it spent in defending the action? The answer depends on the language contained in your insurance policy.

Recently, the Pennsylvania Supreme Court determined that an insurer who assumes an insured’s defense is forbidden from seeking reimbursement of defense costs from the insured unless the policy specifically permits it to do so.

READ AL OF THIS ARTICLE BY CLICKING HERE

Re-Blog From The INSURANCE COVERAGE MONITOR-Unexpected Faulty Workmanship is Covered

 Saw  this intersting article on Insurance Coverage Monitor

Unexpected Faulty Workmanship is Covered

Unexpected Faulty Workmanship is Covered

by Jill Berkeley on November 10, 2010

In Sheehan Construction Co. v. Continental Insurance Co., ___ N.E. 2d ___ (Ind. 2010), the Indiana Supreme Court joined those jurisdictions that have found faulty workmanship can be an accident so long as the resulting damage is an event that occurs without expectation or foresight.  The Court recognized that whether an event occurs with a “lack of intentionality” depends on the facts of each case.  It also noted that the CGL insurers, as of 1986, carved out from the “your work exclusion” an exception for work done by subcontractors.  If the initial grant of coverage for accidents did not cover faulty workmanship, there would be no reason for the “your work exclusion.”The facts in this case were typical.  Plaintiffs filed a class action alleging that after experiencing water leaks in their homes, they experienced leaking windows, fungus growth on the siding, decayed OSB sheathing, deteriorating and decaying floor joists, and water damage to the interior of the home including water stained carpeting.  Sheehan Construction Company was the general contractor on the project and was responsible for hiring subcontractors who actually built the houses.  The plaintiffs alleged that these problems were caused by the faulty workmanship of Sheehan’s subcontractors which included lack of adequate flashing and quality caulking around the windows, lack of a weather resistant barrier behind the brick veneer to protect the wood components of the wall, improperly installed roofing shingles, improperly flashed or sealed openings for the chimney and vents, and inadequate ventilation in the crawl space.

READ THE WHOLE ARTICLE BY CLICKING HERE

 

Re-Blog From The INSURANCE COVERAGE MONITOR-California Supreme Court Determines That Administrative Proceedings Can Be “Suits”

Saw  this article from a Google alert...

 California Supreme Court Determines That Administrative Proceedings Can Be “Suits”

by William Um on December 3, 2010

In a closely watched case by the insurance bar, the California Supreme Court in Ameron Int’l v. Ins. Co. of the State of Pennsylvania ruled that a proceeding before the United States Department of the Interior Board of Contract Appeals (“IBCA”) constitutes a “suit” that triggers insurance coverage under a commercial general liability policy. In its unanimous opinion published on November 18, 2010, the Supreme Court limited the reach of its prior Foster-Gardner v. National Union Fire Ins. Co. decision, which rigidly defined the term “suit” as a court proceeding initiated by the filing of a complaint.
The proceeding at issue in Ameron was a federal adjudicative proceeding before an administrative law judge of the former United States Department of IBCA. The proceeding involved “22 days of trial, numerous witnesses, and substantial evidence,” and involved many of the same procedural requirements as a normal lawsuit filed in a court of law. In the IBCA proceeding, witnesses testify under oath and are subject to cross-examination by opposing counsel, and evidence is presented subject to the Federal Rules of Evidence. After considering all these factors, the Supreme Court determined that given the nature of the quasi-judicial proceeding before the IBCA, a reasonable insured would expect that the IBCA proceeding was the equivalent of a “suit” and, therefore, would expect the policy to provide coverage for defense of such proceedings.

This case is significant because the Supreme Court showed a willingness to carve out an exception to the “bright-line” standard set forth in Foster-Gardner that only a lawsuit filed in court could constitute a “suit” as that term appears in most general liability policies. Foster-Gardner was decided by a sharply divided Supreme Court at the time with a critical dissenting opinion by Justice Kennard. In Ameron, Justice Kennard wrote a concurring opinion, wherein she reiterated her strong belief that Foster-Gardner was wrongly decided. Although Justice Kennard would prefer that Foster-Gardner be overruled, she believes that the Ameron decision “is at least a step in the right direction.”
READ THE WHOLE ARTICLE AT INSURANCE COVERAGE MONITOR BY CLICKING HERE.

Chicago CSI Waterproofing/Roofing Seminars _Two Dates, Great Speakers

 Saw this seminar advertised when I got a Google alert...

Chicago area waterproofing contractors, architects and general's should think about going...
Here's the link to CSINet 



For seven years, this annual building envelope special event has reached capacity in two locations due to expert speakers recognized nationally for
their progressive and evolving knowledge of the building envelope.
Please join our three nationally recognized building envelope specialists, who are also Principals of their firms, for a detailed presentation of case
studies addressing specific building enclosure areas. Although each of these experts are involved in multiple disciplines and have knowledge in all
the areas addressed, we have assigned each presenter a specific topic. Each case study will include not only the issues, but the analysis, solutions
and lessons learned along the way. Continuing Education: 2.0 LU’s in HSW/SD
Below Grade Waterproofing
Larry Meyers, SE, PE, ALA
Principal, Wiss Janney, Elsner Associates, Inc.
Since joining WJE in 1987, Mr. Meyers has been recognized nationally in the areas of roofing and water-proofing has including
the investigation, inspection, repair design, and construction observation of over 700 structures. Both destructive and nondestructive
testing procedures of roofing and waterproofing systems are part of his expertise. His waterproofing experience
includes sheet membranes, fluid applied systems, built-up systems, bentonite materials, and cementitious applications for below
grade and plaza type applications. This also includes negative and positive side application, blindside waterproofing and zero lot
line applications.
Case Study:
Renovation of several mall / plazas of Sandburg Village, a complex with a variety of high, mid and low-rise buildings and landscaped central
pedestrian malls over parking garages, built from 1962 to 1972.
Renovations included extensive repairs to the plaza slabs, installation of a new waterproofing system with expansion joints, and creation of an
elevated urban garden that includes sidewalks, planters, and landscaping. Case studies will be used to discuss assessment techniques,
waterproofing solutions, and a restoration strategy. The presentation will focus on lessons learned in the design and performance of the
waterproofing systems incorporated in renovations.
Above Grade Vertical Enclosure
Kenneth M. Lies, CSI, AIA
Principal, Raths, Raths & Johnson
Joining RRJ in 1983, Ken has been involved in the investigation, evaluation, and rehabilitation of projects throughout the
country. He provides expertise in architectural technology, condition survey documentation, leakage diagnostics, material and
systems evaluations, contract document preparation/review, and testing. Mr. Lies has extensive experience with cladding and
building systems including window and curtain walls, waterproofing membranes, exterior insulation and finish systems
(EIFS),masonry, roofing, flashings, and coatings. His additional professional associations include Building Enclosure
Technology and Environment Council (BETEC). ASTM International - Committee E06.55, Performance of Building Walls and
Committee E06.58 -Exterior Insulation and Finish Systems.
Case Study:
A 22-story 1970’s condominium building, plagued by water leakage, excessive air infiltration and poor thermal performance, was investigated for a
window replacement program. The building was constructed with cast-in-place concrete frame with the original strip windows supported on
unreinforced concrete block knee wall, which had developed anchorage concerns. Existing window and metal panel system was investigated as
well as a structural analysis of the spandrel panels and knee walls. The findings led to a complete replacement of the building envelope with a
curtain wall system. The replacement addressed strength deficiencies, building code wind load requirements, provided improved performance and
updated the buildings appearance and owner property values.
Building Enclosure – Case Studies from Top to Bottom
8th Annual Event Presented by CSI Chicago and Northern Illinois
and Association of Licensed Architects
Tuesday, February 22 in two locations
Roofing Systems
Kami Farahmandpour, PE, FRCI, RWC, CSI, CCS, CCA
Principal and founder
Building Technology Consultants, PC
Mr. Farahmandpour has been involved in the evaluation, testing and repair of construction materials and building envelope performance since 1984. He has managed over 400 projects, many which have involved multiple disciplines and complex building envelope issues. His professional experience includes investigation of deterioration, water and air leakage issues, assessments of building performance, code compliance, and repair alternatives. He is one of the founding member of Building Envelope Institute (BEI), chartered member of Chicago Area Chapter of RCI, Past Associated Director of Sealant, Waterproofing and Restoration Institute, and Fellow of RCI. Additional memberships include SWRI, ASTM, ACI, TMS, ICRI, ICC and NCRCA.
.
Case Studies:
Two case studies will be presented. First case study reviews investigation of leaks through a recently installed single-ply low-slope roofing system in a large warehouse building. The leaks were traced to inadequate condensation control and lack of an air barrier in the roofing assembly.
The second case study reviews investigation of leaks through a structural standing seam metal panel roofing system on a recently constructed school building. The leaks were attributed to installation deficiencies in the roofing system. Specifying a structural standing seam metal roofing system for a school building also comes into question.
Program Scheduled at Two Locations
Maggiano’s, 516 North Clark Street, Chicago, IL 60654, 312-644-4284
7:30 AM - 8:00 AM Registration/Tabletops
Continental Breakfast
8:00 AM – 10:00 AM Presentation
Entrance at 111 W. Grand Ave. The restaurant is between Grand and Illinois. Valet parking will be available or there is a pay lot on the southeast corner of Clark and Grand. Please allow ample time for seating.
Meridian Banquets, 1701 Algonquin Rd, Rolling Meadows, IL 60008, 847-952-8181
5:15 PM – 6:00 PM Registration, Tabletops & Cash Bar
6:00 PM – 7:00 PM Dinner
7:00 PM – 9:00 PM Presentation
Meridian Banquets is east of the intersection of Algonquin and New Wilke Roads. From the north and south, take Rt. 53 and exit at Algonquin. Drive east about 1 mile to restaurant on the right. From Chicago, take Kennedy to NW Tollway (I-90). Exit Arlington Hts. Rd., north. Turn left (west) at Algonquin Rd. Restaurant is about 1.4 miles on the left (south).
Register online at www.alatoday.org starting January 15 or send form below with check
Please duplicate for multiple registrations. Cancellations must be received 5 days before meeting. No shows will be responsible for payment.
First Name ____________________________ Last Name __________________________________________
Address _________________________________ City _________________________ Zip ____________
Phone (____) ________________________ E-Mail (for confirmation) _______________________
Select one for Tuesday, Feb. 22
7:30 AM at Maggiano’s, Chicago 5:15 PM at Meridian Banquet., Rolling Meadows
ALA/CSI-Chicago & NI Member $25 ALA/CSI-Chicago & NI Member $35
Non-member $35 Non-member $45
(Make check payable to: ALA Illinois) Total enclosed $____________
To confirm reservation, payment must be received in advance. Send to:
ALA Illinois, 22159 N. Pepper Rd., Ste 2N, Barrington, IL 60010 Questions Call ALA 847-382-0630 or CSI 847-382-1924

When Tragedy Strikes-A Great Safety Awareness Article on High Rise Balconies/Railing and Keeping Them Safe

Florida Community Association Journal has a great article from last months issue available for free reading on the web. The article discusses railing safety on high rise buildings-pertinent info for any high rise building whether in Florida, Boston, LA, San Jose or wherever your high rise may be...

Joe Sanders, a CMCA credentialed HOA manager wrote this article on high rise balcony safety.

When Tragedy Happens
by Joseph Sanders, CMCA

On occasion, there comes a time when managers responsible for
operating a mid-rise or high-rise building have to deal with tragedy.
This type of tragedy is truly every high-rise manager’s worst
nightmare. That bad dream is someone falling from the building. This
may not happen to a high-rise manager in his or her entire career; yet it
may happen more than once. The chances or odds, if you will, of it occurring
are commensurate with the nature of what a high-rise building is.

Read All of Joe's Article By Clicking Here

From Duarbility & Design-Building-Envelope 101’s Simple Lesson No 1: ‘Think Like a Raindrop’

Saw this on Durability & Design's daily newsletter...To read the whole article you'll need to register-it's free so go ahead...

“Think like a raindrop.”

Ray Wetherholt

That’s advice for design professionals from Washington State-based building-envelope consultant Ray Wetherholt, PE, RRC, RWC, of Wetherholt and Associates, Kirkland and Olympia. Since founding his business in 1984, Ray has made a specialty of helping to create building envelopes that resist water intrusion, and fixing those that don’t.

Water is good at getting into walls, he says. When it does, depending on the way the building envelope is constructed, nasty problems can result.

Mold, and the litigation it brings, is one of the most widely known problems. Water also can warp, decay and rust building-envelope components; delaminate paint; and deposit ugly stains on interior and exterior walls.

But if you look at water intrusion from water’s point of view, Ray says, it will help you navigate a building-envelope landscape that is constantly changing and evolving.

Since water follows gravity, it’s wise to employ water-shedding designs that let water do what it wants to do—flow downhill. Don’t depend on laps that buck water or interrupt the water flow. Don’t build flat shelves, or try to catch water flowing down a wall.  CLICK HERE TO REGISTER AND READ THE ENTIRE ARTICLE AT DURABILITY & DESIGN