Potential Coverage Issues Implicated by the Champlain Towers Collapse
March 21, 2022 —
Theresa A. Guertin & Holly A. Rice - Saxe Doernberger & Vita, P.C.In June 24, 2021, the Champlain Towers South in Surfside, Florida collapsed, killing nearly 100 individuals (the “Collapse”). As experts uncover more information regarding the cause of the Collapse, those individuals who have filed lawsuits as well as the potentially culpable defendants are looking to insurers for coverage of their bodily injury and property damage claims.
Contractors, engineers, and other professionals are or anticipate being sued for their roles in the Collapse. Those professionals have professional liability policies and/or director and officer liability policies. Likewise, the condominium association’s commercial general liability (CGL) policies and its business property policy may have a duty to defend and/or indemnify their insureds as well. Finally, individual unit owners/renters may look to their homeowners’ insurance, auto insurance, health insurance, and/or life insurance policies for coverage.1
The potential breadth of insurance coverage issues raised by the Collapse is beyond the scope of this article. The article will consider some concerns that could impact insurance coverage under a standard CGL policy in the case of a building collapse.
Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and
Holly A. Rice, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at TGuertin@sdvlaw.com
Ms. Rice may be contacted at HRice@sdvlaw.com
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President Obama Vetoes Keystone Pipeline Bill
February 26, 2015 —
Angela Greiling Keane - Bloomberg(Bloomberg) -- President Barack Obama issued his third veto Tuesday to reject legislation that would allow construction of the Keystone XL pipeline, escalating a battle over the project with Republicans in Congress.
Notice of the long-expected veto was released without fanfare via a message to the Senate just hours after the bill formally arrived at the White House. The Senate has agreed to hold a vote on overriding the veto no later than March 3.
Obama has repeatedly said a State Department review of the TransCanada Corp. project -- which would carry crude oil produced in Alberta, Canada, south through the U.S. -- should proceed before a decision is made on whether to allow construction of the $8 billion pipeline.
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Angela Greiling Keane, Bloomberg
Certifying Claim Under Contract Disputes Act
June 08, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnder the Contract Disputes Act (41 USC 7101 en seq.), when a contractor submits a claim to the government in excess of $100,000, the claim MUST contain a certification of good faith, as follows:
For claims of more than $100,000 made by a contractor, the contractor shall certify that–
(A) the claim is made in good faith;
(B) the supporting data are accurate and complete to the best of the contractor’s knowledge and belief;
(C) the amount requested accurately reflects the contract adjustment for which the contractor believes the Federal Government is liable; and
(D) the certifier is authorized to certify the claim on behalf of the contractor.
41 U.S.C. 7103(b)(1). See also 48 C.F.R. s. 33.207(c) as to the wording of the certification.
The contracting officer is not required to render a final decision on the claim within 60 days if, during this time period, he/she notifies the contractor of the reasons why the certification is defective. 41 U.S.C. 7103(b)(3). Importantly, the contracting officer’s failure to render a decision within 60 days is deemed an appealable denial.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Picketing Threats
July 09, 2019 —
Jerry Morales - Snell & Wilmer Under ConstructionLetters from unions to owners, general contractors and other contractors informing them of the union’s dispute with one or more of the subcontractors, working at a common construction project site (or common situs), and of the union’s plans to engage in “public informational campaigns” at the site, in furtherance of the dispute, may constitute unlawful threats of secondary boycott.
Unions often send letters to various employers that share a common construction project site, informing them that the union has a dispute with one or more of the subcontractors working or scheduled to work at the same site. In labor law, the employers that do not have a dispute with the union are referred to as “neutral employers,” in contrast with the employers with which the union has the dispute, referred to as “primary employers.”
In the letters, the unions typically describe the reason for the labor dispute (e.g., alleged failure to pay “area standards”), request that the neutrals use their “managerial discretion” not to allow the primary employers to perform work at the project site until the dispute is resolved, and inform that the union will engage in public information campaigns against the primary employer at the common situs. The “public information campaign” is described in the union’s letter as including banner displays, distribution of handbills, picketing and other demonstration activity.
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Jerry Morales, Snell & WilmerMr. Morales may be contacted at
jmorales@swlaw.com
Notice and Claims Provisions In Contracts Matter…A Lot
February 27, 2023 —
David Adelstein - Florida Construction Legal UpdatesTechnical contractual provisions in contracts can carry the day. Whether you like it or not, and whether you appreciate the significance of the provisions, they matter. Notice provisions in a contract mean something. Following the claims procedure in a contract means something. The moment you think they don’t mean anything is the moment they will be thrown in your face and used as a basis to deny your position for additional money or time. You may think these provisions are being used as a “gotcha” tactic. They very well might be. But these are provisions included in the contract you agreed to so you know this risk before any basis for additional money or time even arises.
The recent bench trial opinion in Metalizing Technical Services, LLC v. Berkshire Hathaway Specialty Ins. Co., 2023 WL 385413 (S.D.Fla. 2023) illustrates the reality of not properly complying with such provisions. The keys when dealing with any notice or claims provision, or really any technical provision in your contract, is to (a) negotiate the risk before you sign the contract, (b) chart the provisions so your team know how to ensure compliance, and (c) make sure you comply with them. Period!
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Choice of Laws Test Mandates Application of California’s Continuous and Progressive Trigger of Coverage to Asbestos Claims
June 01, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Textron v. Travelers Casualty and Surety Co. (No. B262933, filed 2/25/20), a California appeals court held that the Restatement’s choice of laws factors mandated application of California’s continuous and progressive trigger of coverage to asbestos claims, overcoming an argument that a manifestation trigger should apply under Rhode Island law.
Travelers insured Textron from 1966 to 1987. In 2011, Textron was sued by a California resident, Esters, for damages caused by mesothelioma resulting from asbestos exposure in California. The action was defended and settled by Travelers and other insurers under reservations of rights. Textron sued Travelers in California for a declaration that Travelers owed duties to defend and indemnify the Esters action. Travelers cross-complained, seeking reimbursement.
The case turned on choice of law for trigger of coverage as between California and Rhode Island. Citing Montrose Chemical Corp. v. Admiral Ins. Co. (1995) 10 Cal.4th 645 and Armstrong World Industries, Inc. v. Aetna Casualty & Surety Co. (1996) 45 Cal.App.4th 1, the Textron court noted that California applies a continuous trigger to continuous or progressively deteriorating injury. By contrast, in Rhode Island a covered occurrence exists “when the damage … manifests itself, … is discovered or, … in the exercise of reasonable diligence is discoverable.” (Citing Textron, Inc. v. Aetna Cas. and Sur. Co. (R.I. 2002) 754 A.2d 742.) According to Travelers, the Esters action was not covered under Rhode Island law because the plaintiff’s mesothelioma was not diagnosed until 2010, after Travelers was off the risk.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Unjust Enrichment and Express Contract Don’t Mix
August 23, 2021 —
Christopher G. Hill - Construction Law MusingsI am a huge fan of clearly written construction contracts. Virginia state and federal courts will interpret contract provisions as written and will seek to enforce all of those terms where possible. Where the contract is ambiguous, we construction attorneys make money and the courts are forced to make decisions that the parties may not like.
A recent case out of the Eastern District of Virginia federal court highlights the ways in which a clear contract affects the claims that can be brought and limits the scope of possible litigation. In First Call Environmental LLC v. Murphy Oil USA LLC, the Court looked at a relatively typical Owner, Contractor, Subcontractor set of agreements. In this matter, Murphy Oil entered a contract with National Rapid Response, Inc. (“NRR”) whereby NRR would provide emergency and environmental management and waste disposal services to Murphy Oil. NRR then subcontracted with the Plaintiff First Call to perform the services for Murphy Oil. First Call filed suit against Murphy Oil alleging two counts: breach of contract (based on a third-party beneficiary theory), and unjust enrichment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Super Lawyers Recognized Five Lawyers from Hunton’s Insurance Recovery Group
August 29, 2022 —
Hunton Insurance Recovery BlogPartners,
Larry Bracken,
Lorie Masters, and
Koorosh Talieh (KT), were each recognized as Super Lawyers, while associates
Yaniel Abreu and
Rachel Hudgins were selected as Rising Stars for Insurance Coverage in 2022. Super Lawyers, part of Thomson Reuters, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations. Ultimately, no more than 5% of lawyers in a state are selected as Super Lawyers, and less than 2.5% are recognized as Rising Stars. Congratulations on this achievement!
Reprinted courtesy of
Hunton Andrews Kurth LLP
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