A Video Explaining The Tort of Negligence and Construction Defect Insurance

The Bases of Construction Defect Claims and Suits
Negligence

Negligence has the same definitions regardless of the state where it is alleged. It has been defined as: “a legal duty owed to the Plaintiff by the Defendant; a breach of that duty; an actual injury to the Plaintiff; and a showing that the breach was a proximate cause of the injury.”

“A breach of duty exists when it is foreseeable that one’s conduct may likely injure the person to whom the duty is owed."

The California Supreme Court upheld a judgment for property damage caused by negligent residential construction in Sabella v. Wisler, 59 Cal.2d 21, 27-30 (1963). The defendant had built a house and offered it for sale to the general public. As it turned out, the defendant’s negligent preparation of the lot, in combination with a subcontractor’s careless plumbing work, later caused leaks, subsidence, and damage to the house. The purchasers sued for negligence. The builder, arguing unsuccessfully against the imposition of tort liability, held that “the liability of a contractor should be determined by the consideration and weighing of the various factors bearing upon liability.” It was held that the builder was responsible for the ensuing damage.

The Nevada Supreme Court, in answer to a question posed by a federal district court, concluded that, in a commercial property construction defect action in which the plaintiffs seek to recover purely economic losses through negligence-based claims, the economic loss doctrine applies to bar such claims against design professionals who have provided professional services in the commercial property development or improvement process.

© 2020 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 52 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

https://zalma.com/zalmas-insurance-fraud-letter-2/Read last two issues of ZIFL here.

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