The Wisconsin case of Southeast Wisconsin Professional Baseball Park District v. Mitsubishi Heavy Industries America, Inc.1 is an interesting study in how pervasive the duty to defend obligation can become in the context of a Owner Controlled Insurance Program (OCIP). Under an OCIP, most construction participants forego securing their own insurance in favor of coverage under a single project-related policy. The theory behind OCIPs is that they save money by eliminating duplicative coverage. An inevitable consequence, however, is that one insurer ends up covering numerous participants on a construction project. In this case, the project involved the design and construction of the Miller Park baseball stadium--home of the Milwaukee Brewers. The project had a troubled history. In the summer of 1999, a crane collapsed, killing three ironworkers. Ultimately, a $94 million verdict was rendered in favor of the families and estates of the men who died. Before the verdict in the crane-collapse case, Travelers paid its $2 million liability policy limit for the 1999/2000 policy period and declined to provide further defense of crane-collapse claims based upon a provision in its policy which allowed it to avoid further defense responsibility when it exhausted its liability limit in settlement.
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Michael B. Lapicola is a Partner in the law firm of Faegre Baker Daniels LLP. In his national construction law practice, he representing project owners, contractors, subcontractors, suppliers, architects, engineers, lenders and sureties in dozens of states across the United States. Mr. Lapicola provides daily consultation to clients regarding procurement, licensing, liens, bonds, insurance, indemnity, delays, defects, changes, payment, termination and other construction project matters.
Mark A. Toglia is a senior vice president and northeast regional director – project solutions for Aon Risk Solutions Construction Services Group. He is responsible for managing Aon Risk Solutions services for all owner and contractor-controlled insurance programs, including program structure and implementation, administration, loss prevention and claims management. Mr. Toglia has more than 20 years of industry experience, specializing in large casualty programs for Fortune 1000 companies and ENR top 200 contractors.
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Michael B. Lapicola
Faegre Baker Daniels LLP
- Partner in the law firm of Faegre Baker Daniels LLP
- National construction law practice, representing project owners, contractors, subcontractors, suppliers, architects, engineers, lenders and sureties in dozens of states across the United States
- Provides daily consultation to clients regarding procurement, licensing, liens, bonds, insurance, indemnity, delays, defects, changes, payment, termination and other construction project matters
- Listed in Chambers USA: America's Leading Lawyers for Business — Construction, 2011-16
- Frequent speaker and has written several publications
- J.D. degree, cum laude, Northwestern University School of Law; B.A. degree, magna cum laude, Brigham Young University
- Can be contacted at 303-607-3680 or [email protected]
Mark A. Toglia
Aon Risk Solutions
- Senior vice president and northeast regional director – project solutions for Aon Risk Solutions Construction Services Group
- Responsible for managing Aon Risk Solutions services for all owner and contractor-controlled insurance programs, including program structure and implementation, administration, loss prevention and claims management
- Has more than 20 years of industry experience, specializing in large casualty programs for Fortune 1000 companies and ENR top 200 contractors
- His wrap-up project and wrap-up experience is quite diverse having developed, implemented and managed programs varying from small, single-site projects to multibillion dollar projects expanding across the United States
- Earned the chartered property and casualty underwriter (CPCU), the associate in reinsurance (ARe) and construction risk and insurance specialist (CRIS) designations
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