Construction Defect

Insurer Not Obligated to Defend or Indemnify Insured for Breach of Contract Claims (PA)

In Atain Insurance Co. v. Xcapes et al., the United States District Court for the Eastern District of Pennsylvania analyzed whether Atain Insurance Company (“Atain”) was obligated to, inter alia, defend and indemnify its insured, Xcapes, a home improvement contractor, with respect to state lawsuits filed against Xcapes asserting breach of contract, unjust enrichment/quasi contract, violations...Read More

WCM Victorious on Statute of Repose in PA Construction Defect Lawsuit.

WCM Partner Bob Cosgrove and Philadelphia associate Zhanna Dubinsky won a motion for judgment on the pleadings in the Pennsylvania Court of Common Pleas, Chester County. In John Adams, et al. v. Wilkinson Enterprises, Inc., et al., the plaintiffs were the owners of luxury homes in the Chester County, Pennsylvania area who had purchased their new homes in 2003 and 2004.  The plaintiffs alleged...Read More

Residential Property Exclusion Holds Water Following Hurricane (PA)

Recently, in Elite Restoration Inc. v. First Mercury Insurance Company, the Eastern District of Pennsylvania considered whether First Mercury Insurance Company (“FMIC”) was entitled to judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c) and a declaration that it was not obligated to defend and indemnify Elite Restoration, Inc. (“Elite”) in respect of an underlying claim...Read More

Consumer Protection Law Helps Pierce the Corporate Veil and Leads to Treble Damages (PA)

The Pennsylvania Superior Court recently affirmed the trial court’s decision to pierce the corporate veil and award treble damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, Pennsylvania’s Consumer Protection Law, in relation to home repairs in Philadelphia.  In Sereda v. Center City Acquisitions LLC the Superior Court heard the appeal of defendants Center City...Read More

Sham Entities Means The Veil Gets Pierced (PA)

A Pennsylvania Superior Court recently affirmed a trial court’s decision, in Sereda v. Ctr. City Acquisitions LLC, imposing personal liability on the sole owner of a limited liability company which constructed a new house that had issues with respect to the floors and windows. The Serenadas purchased a new house from Ctr. City Acquisitions, LLC, which, with respect to its ownership, was owned,...Read More

General Contractors Could Face Increasing Exposure in Pennsylvania (PA)

Pennsylvania is currently one of five states in the country that does not prohibit broad indemnity by subcontractors to general contractors or owners of construction projects. Broad indemnity requires subcontractors to indemnify the owner or general contractor, regardless of who is at fault. Under broad indemnity provisions, subcontractors are required to indemnify the owners or general...Read More

Language Must Be Crystal Clear To Get Indemnity (NJ)

The New Jersey courts have long emphasized the need for precision when drafting indemnification agreements.   The principals of indemnification clause construction were recently re-visited in the unreported decision of Grandview At Riverwalk v. K. Hovnanian At Port.   In that case, the defendant K. Hovnanian appealed the trial court’s denial of their motion seeking contractual indemnification...Read More

New Jersey Court Clarifies the Breadth of Ongoing Operations Exclusion (NJ)

In PJR Construction of New Jersey Inc v. Valley Forge Insurance Company, the District of New Jersey resolved a construction defect coverage dispute in favor of the insurers, and in so doing, clarified that the scope of the Ongoing Operations Exclusion extends to an entire project, even where certain portions have indisputably been completed. Plaintiff PJR had been hired to construct a 26,250...Read More

New Jersey Ruling Makes Construction Subrogation Cases More Difficult for Insurers

In Wichot v. Allstate, the New Jersey appellate court recently held that ACE American Insurance was unable to subrogate its claim against a subcontractor plumber for over $1 million in damages.  In interpreting a standard construction contract, the court held that ACE’s insured waived its right to assert a claim, even though the contracted work had been completed prior to the loss.  ACE...Read More

New Jersey’s New Complex Litigation Rules — What’s New? (NJ)

Introduction and Background As many have experienced, New Jersey Courts can become a quagmire in construction defect (and other complex) cases. To potentially fix this issue, on September 1, 2018 New Jersey implemented brand new Complex Business Litigation Program (“CBLP”) rules – rules that presumptively include all complex construction defect cases with a value above $200,000. This post is a...Read More