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AGC Constructor: The Coming Wave of Construction Defect Litigation
By Brian L. Hill on January 31, 2011
In the AGC Constructor January/February 2011 issue, Linda D. Kornfeld and Marla H. Kanemitsu wrote an article entitled, “Will Your Insurance Help? The Coming Wave of Defects Litigation:”
Contractors, subcontractors and other companies involved in the construction boom of the early 2000s may soon find themselves the subject of expensive construction defects litigation. Many states, including California and Florida, have 10- year statutes of limitation for latent construction defects claims—and lawsuits are often filed in the ninth year, just before the statute of limitations expires. This means that in the next five years, the construction industry may be flooded with construction defects suits.
Insurance can be an invaluable resource for defendants caught in the flood. If sued, a company should immediately review all applicable insurance policies and promptly give notice of the suit to its insurers. But identifying the policies and giving notice is rarely the end of the story. Insurers frequently respond to construction defect lawsuits by denying coverage. Some common insurer arguments and potential policyholder counter-arguments are discussed below.
download a PDF of the entire article
http://www.dicksteinshapiro.com/files/Publication/390a83bc-a721-4894-8e65-5f69404b8352/Presentation/PublicationAttachment/641b22e7-c902-4d68-97d6-05f04a34292b/Will_Your_Insurance_Help.pdf
By Brian L. Hill on January 31, 2011
In the AGC Constructor January/February 2011 issue, Linda D. Kornfeld and Marla H. Kanemitsu wrote an article entitled, “Will Your Insurance Help? The Coming Wave of Defects Litigation:”
Contractors, subcontractors and other companies involved in the construction boom of the early 2000s may soon find themselves the subject of expensive construction defects litigation. Many states, including California and Florida, have 10- year statutes of limitation for latent construction defects claims—and lawsuits are often filed in the ninth year, just before the statute of limitations expires. This means that in the next five years, the construction industry may be flooded with construction defects suits.
Insurance can be an invaluable resource for defendants caught in the flood. If sued, a company should immediately review all applicable insurance policies and promptly give notice of the suit to its insurers. But identifying the policies and giving notice is rarely the end of the story. Insurers frequently respond to construction defect lawsuits by denying coverage. Some common insurer arguments and potential policyholder counter-arguments are discussed below.
download a PDF of the entire article
http://www.dicksteinshapiro.com/files/Publication/390a83bc-a721-4894-8e65-5f69404b8352/Presentation/PublicationAttachment/641b22e7-c902-4d68-97d6-05f04a34292b/Will_Your_Insurance_Help.pdf