Modern Continental Construction Co. v. Zurich American Insurance

21 Mass. L. Rptr. 114
CourtMassachusetts Superior Court
DecidedApril 19, 2006
DocketNo. 033197BLS1
StatusPublished
Cited by1 cases

This text of 21 Mass. L. Rptr. 114 (Modern Continental Construction Co. v. Zurich American Insurance) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modern Continental Construction Co. v. Zurich American Insurance, 21 Mass. L. Rptr. 114 (Mass. Ct. App. 2006).

Opinion

van Gestel, Allan, J.

This matter is before the Court on the following motions: (1) Motion for Reconsideration of Defendants’ Motion for Letter Rogatory to Depose Robert Bittner, P.E., in California (Paper #18); (2) Plaintiffs Emergency Motion for Protective Order (Paper #21); (3) Defendants’ Motion to Strike Expert Testimony of Marvin Milton and to Preclude His Testimony (Paper #25); (4) Modem Continental Construction Co., Inc.’s Motion to Compel Return of Inadvertently Produced Mediation Materials and Seeking Order Declaring that Mediation Materials Are Inadmissible as Evidence (Paper #27); (5) Plaintiffs Motion to Strike Defendants’ Motion for Summary Judgment (Paper #32A); (6) Plaintiffs Emergency Motion for Further Protective Order and Other Relief (Paper #33); (7) Defendants’ Motion for Summary Judgment (Paper #35); (8) Plaintiffs Motion to Compel Defendants’ Further Production of Documents and Further Rule 30(b) (6) Deposition Testimony and for an Award of Costs (Paper #39); (9) Modem Continental Construction Co., Inc.’s Motion to Compel Production of Witnesses (Paper #40); and (10) Defendants’ Motion to Strike Improper Assertions from Plaintiffs Rule 9A(b)(5) Response, to Deem Uncontroverted Facts as Admitted, and Response to Additional Facts Set Forth Therein (Paper #43).

All of these motions were filed between August, 19, 2005, and October 19, 2005, and oral argument was heard on October 20, 2005.1

BACKGROUND

These background facts are taken principally from the summary judgment filings, although there are, as must be expected from the number of motions and supporting papers involved, many overlapping, generally consistent, statements in other papers as well. Not all undisputed facts are necessarily set out in this background section. Additional facts may be added in discussing particular aspects of specific motions.

In this litigation, the plaintiff, Modern Continental Construction Company, Inc. (“Modern”), contends that it is entitled to insurance coverage under a builders risk policy (the “Policy”) for the costs it incurred to repair leaks discovered during the construction of the Fort Point Channel Tunnel, a part of the Central Artery/Tunnel Project (the “CA/T Project”), often referred to as the “Big Dig.”

The defendants Zurich American Insurance Company (“Zurich”) and ACE American Insurance Company (“ACE”) are the Insurers on the Policy.

The “Insured” on the Policy is defined as “Massachusetts Highway Department, Massachusetts Turnpike Authority and/or Bechtel/Parsons Brinckerhoff.” Additional Insureds “shall be all Contractors and/or Sub-Contractors involved in the Contract Works, as their interests may appear.”

[115]*115Modern is an additional Insured.

The Contract Works for these purposes is, essentially, the Fort Point Channel Tunnel construction part of the CA/T Project.

The Policy contains a condition stating:

The due observance and fulfillment of the terms and conditions of this Policy and its Underlying Declarations Pages by the Insured, insofar as they relate to anything done or complied with by them, shall be a condition precedent to any liability of the [Insurers] to make payment for loss under this Policy.

The Policy further states:

This Policy and its Underlying Declaration Pages shall be void if the Insured (as defined in Paragraph 1. Page 1.) has concealed or misrepresented any material fact or circumstances concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

The Policy excludes “the cost of making good an error, omission or design deficiency in designs, plans or specifications, unless direct physical loss or damage by a peril insured ensues and then this policy will cover for such ensuing loss or damage only.” The Policy also excludes “the cost of making good faulty and/or defective workmanship, materiels, or supplies, unless direct physical loss or damage by a peril insured ensues and then this policy will cover for such ensuing loss or damage only.”

On March 5, 1997, Modern entered into Contract No. 97356-C09B1 (the “C09B1 Contract”) with the CA/T Project to construct the submerged sections of the Massachusetts Turnpike/I-90 connector under the Fort Point Channel in Boston. For purposes of this case this is the Contract Works.

The C09B1 Contract called for Modem:

To construct three (3) “Immersed Tube Tunnel” (“ITT”) sections in a casting basin (a structure similar to a diydock);
To float the ITT sections into position in the Fort Point Channel;
To secure the ITT tunnel sections to each other and to the other elements of the underwater sealing and support structure;
To remove the water (“dewater”) from the excavated areas at the east and west ends of the ITTs where the Interstate 90 roadway would be connected to the ITTs; and
To construct tunnel sections connecting the ITTs with the 1-90 roadway.

Three flood events occurred on the project during the months of July and September 2001 (collectively the “Floods”).

On or about July 5, 2001, tidal water from Fort Point Channel breached its boundaries and entered the work area at the west end of the ITTs, causing flooding, and loss and damage to the Contract Works. On July 27, 2001, Modem stopped the flooding that had begun on July 5, 2001.

On or about July 27, 2001, tidal water from the Fort Point Channel breached its boundaries and entered the work area from the east end of the ITTs, causing flooding, and loss and damage to the Contract Works. On or about August 28, 2001, the east side flooding was stopped.

On or about September 2, 2001, tidal water from the Fort Point Channel breached its boundaries and entered the work area at the west end of the ITTs, causing flooding, and loss and damage to the Contract Works. On or about September 22, 2001, the rate of flooding at the west side of the ITTs increased dramatically, causing catastrophic flooding and consequent damage to the Contract Works. Modern stopped the flooding at the west end of the ITTs on or about November 21, 2001, however, Modern continued to remediate the damage through November of 2002.

Modern seeks to recover the losses it sustained as a result of the Floods under the Policy and has presented claims therefor to Zurich and ACE.

The Insurers contend that the claims are not covered and have raised as defenses Modern’s alleged concealment of material information relating to the cause of the Floods and its refusal to cooperate with the Insurers in the investigation of the claimed loss, and the deficient design and faulty workmanship exclusions quoted above.

Between July and October 2002, Modern and the CA/T Project mediated Modern’s contract claims under the C09B1 Contract, including claims relating to the Floods. The mediation did not result in any recovery by Modern from the CA/T Project with respect to the Floods.

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Bluebook (online)
21 Mass. L. Rptr. 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modern-continental-construction-co-v-zurich-american-insurance-masssuperct-2006.