Insurer's Late Notice Defense Fails on Summary Judgment
December 13, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment to dismiss the claim because the insurer did not provide notice "as soon as practicable" was denied. Vintage Hospitality Group LLC v. Nat'l Trust Ins. Co., 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021).
Vintage owned hotels, one of which was struck by a severe hailstorm on July 21, 2018. Vintage was not aware of roof damage until two months after the storm, and did not make the connection between the hailstorm and roof damage until February 2020, when it reported the damage to National. The claim was denied because it was not reported "as soon as practicable" as required by the policy.
Vintage sued and National moved for summary judgment.
Vintage did not notice the leaks until September 2018. The focus was on fixing the leaks, and connection to the hailstorm did not register. The leaks persisted over the next year and a half. A construction company was called in to evaluate the leaking roof. The construction company advised that the roof had experienced previous hail damage which was causing the leaks. At this point, Vintage connected the damage to the hailstorm. A claim was promptly submitted to National, which denied the claim.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Warning! Danger Ahead for Public Entities
July 30, 2019 —
Michael J. Baker - Snell & Wilmer Under Construction BlogPublic entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding.
The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com
The National Building Museum’s A-Mazing Showpiece
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFThe “massive maze” designed by the Bjarke Ingels Group (BIG) is now open at the National Building Museum in Washington D.C., reported Architect Magazine. The roughly 60-foot square maze reaches about 18 feet, but the “walls slope in toward the center, allowing visitors to see more of the maze as they move through it.” When you reach the center, you get a complete overview of the maze.
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Too Late for The Blame Game: Massachusetts Court Holds That the Statute of Repose Barred a Product Manufacturer from Seeking Contribution from a Product Installer
March 21, 2022 —
Gus Sara - The Subrogation StrategistIn State Farm Fire & Cas. Co. v. Wangs Alliance Corp., No. 21-cv-10389-AK, 2022 U.S. Dist. LEXIS 26712, the United States District Court for the District of Massachusetts (District Court) considered whether a product manufacturer was barred by the Commonwealth’s six-year statute of repose for improvements to real property from joining the installer of the product as a third-party defendant. The court denied the defendant’s motion for leave to file a third-party complaint to join the installer, finding that the installer completed its work more than six years prior to the motion being filed. This case reminds us that Massachusetts’ six-year statute of repose for improvement to real property also bars a defendant’s contribution claims against third parties.
The Wangs Alliance case involves a subrogation action filed by State Farm Fire & Casualty Insurance (Insurer) against Wangs Alliance Corp. (Wangs), a manufacturer of rope lighting. Insurer insured the homeowners, who experienced a fire in their home in 2018. The home was originally built in 2002 by Wellen Construction (Wellen). As part of the original construction, Wellen installed rope lighting manufactured by Wangs in the house.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
London Shard Developer Wins Approval for Tower Nearby
November 05, 2014 —
Neil Callanan - BloombergSellar Property Group, developer of the Shard in London, won local government approval to build a 26-story residential tower close to the skyscraper on the south bank of the River Thames.
The council for the Southwark borough voted in favor of the 148-apartment project, which also includes a 16-story tower, at a meeting yesterday, Sellar spokesman Baron Phillips said by e-mail. The project, like the Shard, will be developed in a partnership with the state of Qatar.
Developers plan to construct more than 25,000 luxury properties in London worth more than 60 billion pounds ($96 billion) over the next decade, EC Harris said in an Oct. 7 report. The homes approved yesterday at the Fielden House site are expected to sell for about 800,000 pounds each, according to a filing by the borough.
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Neil Callanan, BloombergMr. Callanan may be contacted at
ncallanan@bloomberg.net
City Potentially Liable for Cost Overrun on Not-to-Exceed Public Works Contract
June 29, 2017 —
David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLPOn a public works construction project, a contractor incurred additional costs and asserted a claim against the city. The city denied the claim because the contract had a not-to-exceed price, and the city council and mayor did not approve contract modifications to exceed that amount. City ordinances require approval for contract modifications and change orders exceeding ten percent of the original not-to-exceed amount.
But the contractor argued that the ordinance did not apply because the excess costs did not result from a contract modification or change order. In addition, the contractor argued that, in refusing to approve an increase in the not-to-exceed amount, the city breached the implied duty of good faith and fair dealing. The court concluded that these questions were factual issues for the jury to decide.
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David R. Cook, Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
New York Appellate Court Holds Insurer’s Failure to Defend Does Not Constitute a “Reasonable Excuse” Required to Overturn Judgment
January 21, 2019 —
Timothy Carroll & Anthony Miscioscia - White and WilliamsA recent opinion by the New York Supreme Court, Appellate Division (Second Department) highlights the potential risks for an insurer leaving an insured unrepresented while the insurer pursues other parties or insurers who may be primarily responsible for defending the insured. In refusing to overturn a default judgment entered against an insured while its insurer knew that a complaint had been filed but refused to defend, the New York court’s decision raises questions about how claims adjusters are to effectively manage new claims to prevent a default judgment being entered against the insured, while at the same time ensuring that the appropriate party or insurance company handles the insured’s defense.
In Kaung Hea Lee v. 354 Management Inc., 2018 N.Y. App. Div. LEXIS 7749 (N.Y. App. Div. Nov. 14, 2018) (354 Management) the underlying plaintiffs obtained a default judgment against the defendant insured due to its failure to answer the plaintiffs’ complaint. The plaintiffs then moved to determine the extent of damages to which they were entitled by virtue of the default judgment. The defendant opposed that motion, relying on an affidavit from a senior liability claims adjuster employed by the defendant’s insurer. “In the affidavit, the claim adjuster stated that she did not assign an attorney to answer the complaint because the codefendant . . . was contractually obligated to defend and indemnify the defendant [insured], and she had been attempting to have either [the codefendant] or its insurer provide an attorney” for the defendant. However, it was determined that the claims adjuster knew about the plaintiffs’ complaint two weeks after the plaintiffs served it on the defendant and months before the plaintiffs moved for default judgment. Despite this knowledge, the defendant’s insurer did not provide a defense or, apparently, obtain an extension of time to respond to the complaint, which led to the default judgment.
Reprinted courtesy of
Timothy Carroll, White and Williams and
Anthony Miscioscia, White and Williams
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
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Request for Stay Denied in Dispute Over Coverage for Volcano Damage
August 10, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAlthough there were concurrent state and federal proceedings regarding the insureds' claims for damage caused by Kilauea Volcano, the federal district court refused to dismiss or stay the federal action. Aqulina v Certain Underwriters at Lloyd's Syndicate #2003, 2020 U.S. District Ct. LEXIS 101832 (D. Haw. June 10, 2020).
Plaintiffs held homeowner's policies from Lloyd's that were brokered and underwritten by various defendants. Coverage from the May 2018 eruption of Kilauea Volcano was denied based upon an exclusion precluding coverage for lava-related damage.
Plaintiffs sued Lloyds and various brokers in federal court, alleging that defendants had engaged in a deceptive scheme to defraud plaintiffs and deprive them of meaningful coverage. Lawsuits were also filed in state court, with plaintiffs arguing their losses were covered by their policies and that defendants wrongfully relied solely on the lava exclusion to deny claims.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com