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Construction Insurance

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Melissa C. Lesmes
Partner, Washington, DC
T: +1.202.663.9385
Eric M. Gold
Partner, Washington, DC
T: +1.202.663.8476
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Pillsbury’s Insurance Recovery & Advisory team has advised on insurance issues regarding some of the world’s most significant construction projects.

Our lawyers have recovered insurance proceeds for owners and developers, contractors, design professionals and others under builder’s risk, general liability, professional liability, pollution, commercial property, employment practices liability (EPL), business interruption and other policies.

From initial contracting through completion and beyond, our Construction Insurance lawyers are uniquely positioned to partner with clients and provide strategic guidance at every stage of a construction project or dispute. We frequently advise clients on insurance and risk-management issues unique to the construction industry, structure risk-avoidance and risk-transfer programs, and provide counseling on transactions, individual projects and other non-litigation matters.

When problems arise, our lawyers evaluate potential coverage, review root cause analyses and work closely with accountants, schedulers and other consultants to maximize insurance recoveries. This includes analyzing the hard costs of remediation and repair, associated delay damages and other issues in connection with insurance claims.

Representative Experience

  • Represented multiple clients in resolving coverage disputes related to project accidents and delays under builders risk and contractors all risk (CAR) policies prior to and through litigation.
  • Represented multinational consortium of companies responsible for the design and construction of the Panama Canal Expansion Project in connection with more than $60 million in insurance claims associated with damages sustained during construction.
  • Represented EPC contractor for insurance claims arising from damage to a new steam generator during hot testing, which delayed the start up of a power plant in Texas by one year.

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  • Represented general contractor in claims under a CAR policy related to water damage during construction of an overseas project for the U.S. Army Corps of Engineers.
  • Represented Texas EPC contractor in a construction dispute related to a paper mill.
  • Represented energy company on business interruption claims in connection with failure at the launch of an LNG power generating plant.
  • Represented joint venture on construction and insurance issues related to the construction of Salesforce Tower in San Francisco, including alleged contribution to the sinking and leaning Millennium Tower.
  • Represented well co-owner in its insurance claims arising from the 2010 Gulf of Mexico Macondo well blowout and oil spill and the Deepwater Horizon loss.
  • Represented joint venture on construction and insurance issues arising from the sinking and leaning Millennium Tower in San Francisco.
  • Represented CalPERS investment property in a property damage case seeking recovery of construction defect, resulting damage and related business loss and extra expense losses at a transit-oriented, mixed-use development in California with damages exceeding $150 million.
  • On behalf of Duke Energy, secured settlement with insurer totaling $835 million for business interruption loss following damage to the Crystal River Nuclear Plant.
  • Represented Zenith Aviation in securing summary judgment against insurer’s move to exclude coverage for losses caused by concrete dust.
  • Represented Black & Veatch in securing a client’s rights to seek coverage from insurers for liabilities related to subcontractor’s mistakes. Victory at the 10th Circuit Court of Appeals.
  • Represented national developer of commercial and residential property against National Surety Corporation and more than 20 different contractors and subcontractors in connection with its significant property and business interruption losses. We secured a substantial appraisal award for our client. The matter settled confidentially mid-trial.
  • Represented general contractor regarding insurance claims in connection with alleged defects in the construction of a Florida hotel, including alleged defects in outdoor pool, patio, planters and glass-frittered balconies.
  • Represented general contractor regarding insurance claims arising from the construction of a hotel in Texas. The owner alleged defects in the sheeting and shoring system, resulting in damages to the excavation and shoring piles.
  • Represented home builder in an action to obtain a defense as an Additional Insured under policies issued to a subcontractor for more than 150 construction defect claims.
  • Represented general contractor on construction defect claims and insurance coverage issues arising from alleged faulty construction of high-rise condominiums in South Florida.
  • Represented general contractor regarding insurance claims arising from the construction of a hotel in Arizona. The owner alleged defects in the installation of showers that resulted in water intrusion behind tiles and mold damage.
  • Represented EPC contractor in pursuing recovery on more than $200 million of insurance claims arising out of the construction of enhancements to five coal-fired power plants. The Tenth Circuit sided with our client, who can now pursue coverage for construction defects at the plants in question.
  • Assisted major homebuilders in their insurance recovery efforts involving thousands of homes with alleged construction defects in New Jersey, California and Florida.
  • Represented number of construction and real estate clients in pursuit of insurance recoveries from insurance carriers for Chinese drywall claims.
  • Pursued claims against two dozen insurers in connection with construction of more than 2,000 homes in various housing developments in California’s Central Valley.
  • Represented construction company regarding insurance and other issues related to a hanger roof collapse at Dulles Airport during a snowstorm, which damaged or destroyed more than a dozen aircraft.
  • Handled global engineering firm’s insurance claims over design and construction issues related to a number of coal-fired power plants.
  • Represented general contractor on recovery of a claim arising out of the default of multiple subcontractors in a billion-dollar hotel construction project.
  • Obtained defense and substantial indemnity payments from multiple primary and umbrella carriers for developer and general contractor of a large townhome project on underlying construction-defect claims.
  • Secured $55.3 million breach of contract, bad faith and punitive damages jury verdict, including attorney’s fees and $46 million in punitive damages, for a mechanical pipe-joining manufacturer. It was among California’s 2015 largest insurance jury verdicts.
  • Obtained arbitration award of full coverage for a contractor based on damage to property, not improvements, following settlement of an underlying lawsuit based on defective-construction claims.
  • Represented joint venture serving as the construction manager in connection with the “Big Blue” collapse at Miller Park.

Practice Area Highlights

  • Nationally ranked by Chambers USA: Insurance: Dispute Resolution: Policyholder (2018 – 2024), Insurance in Texas (2014, 2019 – 2024) and Insurance: Policyholder in Washington, DC (2015 – 2024).
  • Recognized by The Legal 500 U.S. (2017 – 2024).
  • Pillsbury is recognized as among the most feared law firms for litigation by BTI Consulting Group.

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  • Team lawyers are lauded by Best Lawyers in America and Who’s Who Legal in the field of insurance.

Resources

2024 MOST FEARED FIRMS

BTI Consulting recognizes Pillsbury as one of the most feared law firms in litigation.

Brochure

Insurance Recovery & Advisory

Brochure

Construction Counseling & Dispute Resolution

Video

Partner Peter Gillon discusses Super-storm Sandy’s business impacts

Newsletter

Perspectives on Insurance Recovery - 2016

Blog

Policyholder Pulse

Factsheet

Pillsbury’s Insurance Policy Review Program

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