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RT Specialty is proud to welcome All Risks to the RSG family effective September 1st, 2020!

RT ECP: Claims - Owner's Prot Prof Indemnity (OPPI)

October 28, 2019

Restaurant group sues developer, contractor of Hard Rock Hotel project

Source: https://www.wdsu.com, October 25, 2019 A New Orleans restaurant group is suing the developers and contractors along with other parties involved in the Hard Rock Hotel project that collapsed two weeks ago. Among those named in the lawsuit are Citadel Builders, Heaslip Engineering, 1031 Canal LLC and Kailas Companies. Read more.

February 25, 2019

OPPI Claim Example

A hospital owner experienced a large loss due to a structural steel design error. Due to design negligence, part of the new hospital tower was rendered unusable. The result was approximately $20,000,000 in direct damages to the building, and another $5,000,000 in consequential damages. The Owner’s architect had a policy with a $1,000,000 limit. However, […]

February 25, 2019

OPPI Sits Excess of Architect's Practice Policy

The project Owner of a large hotel project incurred $10,000,000 in additional costs due to the negligence of its retained soils engineer. The prime architect’s policy had $1,000,000 in limits. The Owners Protective Indemnity policy sat excess of the prime architect’s practice policy to cover the Owner’s $9,000,000 in loss.

February 25, 2019

OPPI Sits Excess of Engineer's Practice Policy

A project Owner hired a structural engineer to determine structural steel needed for a mixed-use project. The engineer used the incorrect code for this project resulting in higher structural steel costs. The Owner incurred $5,000,000 in additional costs due to the negligence of the structural engineer. The Owner asserted a claim against the structural engineer […]

January 11, 2019

Burlington reaches $2-million settlement with condo owners

Source: https://www.thespec.com, January 11, 2019 By: Teviah Moro Mayor Marianne Meed Ward says agreement “brings closure to a long and difficult chapter for the residents of 2411 New St.” The city’s insurer has settled a lawsuit with residents of a condo building in Burlington that has been beset with structural problems. “This settlement brings closure to […]

April 19, 2017

Serious design, construction and maintenance defects doomed Oroville Dam, report says

Source: http://www.latimes.com, April 17, 2017 By: Ralph Vartabedian Design flaws, construction shortcomings and maintenance errors caused the Oroville Dam spillway to break apart in February, according to an independent analysis by Robert Bea for the Center for Catastrophic Risk Management at UC Berkeley. Bea, a co-founder of the center and retired civil engineering professor, found […]

April 18, 2017

Developer McKafka sues architect, alleging construction delays and defects at the Crimson

Source: https://therealdeal.com, April 17, 2017 By: Francisco Alvarado An Aventura-based architecture firm allegedly left McKafka Development Group hanging, delaying construction on its 90-unit high-rise called the Crimson in Miami’s Edgewater neighborhood, according to a lawsuit. McKafka, through its limited liability company Alpine Estates, accuses International Design Engineering and Architecture, or I.D.E.A. for short, of breaching […]

October 28, 2013

Policyholders: Beware of Choice of Law Provisions

Source: Saxe Doernberger & Vita, P.C., October 2013 New York District Court Applies “No Prejudice” Rule to Late Notice Claim for Policy “Issued and Delivered” Outside the State with NY Choice of Law Provision A New York federal district court applied the antiquated “no prejudice” rule to an insured’s late notice claim in Indian Harbor […]

September 10, 2013

Medical Center Facility Renovation and Expansion

Single prime design delivery system for the renovation and expansion of a public medical center facility. Due to multiple conflicts between the structural, MEP and architectural drawings, and the submission of several hundred requests for information (“RFIs”) by the contractor, the project was delayed more than one year and experienced substantial budgetary overruns. Owner claim […]

September 10, 2013

Physician Office Renovation

Multiple prime design delivery system for the renovation of a physician’s private office space to accommodate MRI equipment and a “clean room” for lab analysis. Structural plans failed to account for the load presented by the MRI equipment, resulting in overstress of floor joints and deflection of walls on lower floors. “Clean Room” was not […]

September 10, 2013

Dental School Facility Construction

Single prime design delivery system for construction of a new dental school facility associated with a University. University made claim against the architect alleging design errors relating to structural steel; Life Safety Code violations; non-insulated pipe failures;  failure to properly staff project; failure to perform contract administration duties; lost value engineering opportunities; and project delay. […]

September 10, 2013

Medical Diagnostic and Treatment Center Project

Design-Build delivery system for new state-of-the-art medical diagnostic and treatment center project. Project experienced significant cost overruns and delay due to design errors in the HVAC, MEP and structural steel plans and failure to coordinate design with original owner-specified equipment. Claim amount exceeded the available design professional insurance.  

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