ANAHEIM CALIFORNIA CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

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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Emerging Trends in Shortened Statutes of Limitations and Statutes of Repose

January 02, 2024 — Ivette Kincaid & Thomas McCarrick - Kahana Feld
Introduction A growing trend in construction defect legislation around the country has seen the shortening of statutes of limitation and statutes of repose for a plaintiff to bring claims related to construction defects. Over the past ten years, several states, notably Florida and Texas, have shortened their statutes of repose. This is generally positive news for developers and contractors; however, the specifics and ramifications of these legislative and judicial updates are still unknown. Statute of Limitations A statute of limitations sets forth the time that a plaintiff has to sue or allege a particular cause of action against a defendant. These time limitations are codified into law and vary depending on the State and the cause of action. A statute of limitations starts at the occurrence of an injury or damage or at the time the injury or damage is discovered. The statute of limitations may be subject to some exceptions such as tolling for reasons such as the injured party being a minor in which case depending on the particular statute, the statute does not begin to run until after the minor reaches the age of majority. Reprinted courtesy of Ivette Kincaid, Kahana Feld and Thomas McCarrick, Kahana Feld Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Mr. McCarrick may be contacted at tmccarrick@kahanafeld.com Read the full story...

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Fine Art Losses – “Canvas” the Subrogation Landscape

February 26, 2024 — William L. Doerler - The Subrogation Strategist
If a fire or flood destroys a high-net-worth client’s fine art collection, an insurer who pays out a claim related to the loss has an incentive to pursue subrogation. This article explores some of the issues an insurer should “canvas” before pursuing subrogation for these types of claims. Damage to fine art can occur in a number of ways. For instance, fine art may be damaged in a natural disaster – such as a flood or a wildfire. Artwork may also be accidentally damaged because of a transportation-related incident physically damaging the art. In addition, artwork may suffer fire or smoke damage from a fire within a building. Another possibility is that the artwork suffers damage because of renovations either to the insured’s home or a neighboring property. For example, a renovation contractor may damage artwork due to vibrations or leaking water. A construction worker, moreover, may turn with a tool in his hand, or trip and fall, damaging the artwork. Read the full story...
Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders

January 02, 2024 — Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery Blog
The Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue. In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims). Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the full story...

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Gaps in Insurance Created by Complex Risks

January 22, 2024 — The Hartford Staff - The Hartford Insights
From slips, trips and falls to extreme weather and cyberattacks, businesses are regularly confronted with risks to operations and profitability. In 2023, elevated building costs, increased flooding, and growing ransomware attacks made it compelling for business owners to make sure they had adequate insurance to stay ahead of property and liability exposures. However, if left unchecked, these trends can lead to gaps in coverage. As 2024 approaches, now is the time to assess your risk and collaborate with the right resources to fill any potential voids in insurance. Economic inflation for example has changed property valuations, which can result in coverage gaps if policyholders have not examined their replacement costs recently. Read the full story...
Reprinted courtesy of The Hartford Staff, The Hartford Insights

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AAA Revises its Construction Industry Arbitration Rules and Mediation Procedures

April 02, 2024 — Garret Murai - California Construction Law Blog
This one is for the lawyers. Or for those of you who are claims-minded . . . Effective March 1, 2024, the American Arbitration Association (“AAA”) revised its Construction Industry Arbitration Rules and Mediation Procedures. For those involved in construction, this is important since the AAA Rules are the default arbitration rules contained in AIA form contracts and are often the arbitration rules referenced in other construction contracts as well. So, what are the changes?

• General: Fax numbers have gone the way of the Dodo bird and replaced by email addresses for all parties. Also, while already done in practice, preliminary hearings may now be held via videoconference in addition to telephone and in-person (Rule R-23).

Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Cultivating a Company Culture Committed to Safety, Mentorship and Education

March 19, 2024 — David Frazier - Construction Executive
The construction industry is aging. Valuing the significance of promoting a culture that enhances safety, mentorship and educational opportunities is essential to recruiting and retaining top talent to keep the industry thriving. According to the U.S. Department of Labor, one in five worker deaths in the U.S. occurs in the construction industry. Additionally, construction workers are statistically at a higher risk for mental-health issues than virtually every other profession. According to a study conducted by CIRP, 83% of construction workers have struggled with mental-health disorders. Today’s leaders must be dedicated to listening to employees' voices to shape the construction industry, as future leaders will be formed by a culture committed to employees' mental and physical health, safety, professional growth and overall workplace culture. Reprinted courtesy of David Frazier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Navigating the Construction Burrito: OCIP Policies in California’s Construction Defect Cases

November 16, 2023 — Alexa Stephenson & Ivette Kincaid - Kahana Feld
In the early 2000’s, Owner-Controlled Insurance Programs (OCIP) or WRAPS, were traditionally used in large commercial projects of over $50 million in construction costs. As construction defect lawsuits became more prevalent, subcontractors found themselves unable to meet the insurance requirements of their contracts with developers and general contractors because they could not find insurance companies that were willing to insure the risk. This presented a problem for developers and general contractors and left them with no option but to look into new insurance products that would insure them and all subcontractors who worked on the project. OCIPs became in some instances the only insurance option for developers, general contractors, and subcontractors to build single-family or multi-family projects in California and other western states. OCIPS or WRAPS, often likened to the layers of a savory burrito, offer both enticing benefits and potential pitfalls. Just as a burrito’s ingredients can harmonize or clash, OCIP policies can shape the outcome of legal battles, impacting contractors, developers, and insurers alike. Pros – Savoring the OCIP Burrito: 1. Wrapped Protection: Much like a well-folded burrito envelops its contents, OCIP policies offer comprehensive coverage for construction projects. Developers, general contractors, and subcontractors find comfort in knowing that their liability risks are bundled into a single policy, ensuring all enrolled parties have coverage in the event of a claim. Reprinted courtesy of Alexa Stephenson, Kahana Feld and Ivette Kincaid, Kahana Feld Ms. Stephenson may be contacted at astephenson@kahanafeld.com Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Read the full story...

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