Archive:April 2014

Alabama Supreme Court Clarifies Position on Construction Coverage Question
Insurance Coverage for Construction Risks
Welcome to the 26th Edition of K&L Gates’ Arbitration World

Alabama Supreme Court Clarifies Position on Construction Coverage Question

By Frederic J. Giordano and Robert F. Pawlowski, K&L Gates, Newark

Damage to Contractor’s Work Resulting from Faulty Workmanship Does Constitute "Property Damage" Caused by an "Occurrence" under Standard CGL Policy

In an important decision for policyholders in the construction business, the Supreme Court of Alabama recently clarified that Alabama law is in accord with the growing majority of jurisdictions finding coverage for property damage arising out of defective workmanship. Adding precision to its prior holdings and citing with approval various out-of-state authority, the Alabama high court confirmed that the definition of “occurrence” does not exclude property damage caused by faulty workmanship and that damage to other parts of a structure caused by defective workmanship constitutes “‘property damage’ ‘caused by’ or ‘arising out of’ an ‘occurrence.’” Owners Insurance Company v. Jim Carr Homebuilder, LLC, —So.3d—, 2014 WL 1270629 *6 (Ala. March 28, 2014).

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Insurance Coverage for Construction Risks

By Timothy L. Pierce, K&L Gates, Los Angeles and Jacquelyn S. Celender, K&L Gates, Pittsburgh

There are many different types of insurance available for construction risks. It is important for owners and contractors to think critically at the beginning of any construction project about the risks inherent to the project and the types of insurance available to them to protect against such risks. Additionally, it is imperative that policyholders understand the benefits and limitations of different insurance policies.

This presentation explores (i) the basic forms of insurance coverage available for construction risks, (ii) wrap-up programs — owner controlled insurance programs (OCIP) and contractor controlled insurance programs (CCIP), (iii) common issues policyholders face when seeking coverage for a construction related loss under commercial general liability (CGL) policies, and (iv) practical considerations for the coverage construction lawyer.

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Welcome to the 26th Edition of K&L Gates’ Arbitration World

Welcome to the 26th edition of Arbitration World, a publication from K&L Gates’ International Arbitration Group that highlights significant developments and issues in international and domestic arbitration for executives and in-house counsel with responsibility for dispute resolution.

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In this edition, we report on the much-anticipated decision of the U.S. Supreme Court in BG Group PLC v. Republic of Argentina regarding the respective roles of courts and arbitrators in deciding threshold issues of arbitrability or jurisdiction. We review a recent decision of the Indian Supreme Court in the context of the wider changes in India regarding international arbitration in recent years, as well as a decision of the Full Federal Court of Australia regarding the implications of seeking to resist enforcement of an award after already unsuccessfully challenging the award at the seat of arbitration.
We include articles on the new arbitration rules issued by the Japan Commercial Arbitration Association (JCAA) and the Vienna International Arbitration Centre (VIAC) and report on the interesting development of the introduction of “Optional Appellate Arbitration Rules” by the American Arbitration Association (AAA) / International Centre for Dispute Resolution (ICDR).
We consider the potential issues that may arise with short-form ‘ad hoc’ arbitration clauses, and continue our series of articles on means of protecting foreign investments with a review of the means of access to relevant dispute resolution mechanisms. We also provide our usual updates on developments from around the globe in international arbitration and investment treaty arbitration.
We hope you find this edition of Arbitration World of interest, and we welcome any feedback (email or

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