Construction Defects Lead to Demolition
May 26, 2011 —
CDJ STAFFTen years after it was built, demolition of Seattle’s McGuire Building has begun, as Jeanne Lang Jones reports in the Puget Sound Business Journal. Construction defects had rendered the 25-story apartment building uninhabitable. The major problem was corroded steel cabling. According to the report, “the building’s owners reached an undisclosed settlement last year with St. Louis-based contractor McCarthy Building Companies.”
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Flood Sublimit Applies, Seawater Corrosion to Amtrak's Equipment Not Ensuing Loss
November 10, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe insurers were granted summary judgment on three issues regarding Amtrak's claim for damages caused by Hurricane Sandy. Amtrak v. Aspen Sec. Ins. Co., 2016 U.S. App. LEXIS 16074 (2nd Cir. Aug. 31, 2016).
Hurricane Sandy caused flooding which damaged two of Amtrak's tunnels under the East and Hudson Rivers. Seawater from the flooding caused extensive damage to equipment in the tunnels. The district court granted summary judgment to the insurers on the following issues: (1) the damage caused by an inundation of water in the tunnels was subject to the policies' $125 million flood sublimit; and (2) the corrosion of equipment after Amtrak pumped out the seawater was not an "ensuing loss" and therefore was also subject to the flood sublimit.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Appeals Court Reverses Summary Judgment over Defective Archway Construction
February 10, 2012 —
CDJ STAFFA judge has ruled that a plaintiff can go forward with her suit that she was injured by a defective archway during a birthday party. A three-judge panel of the California Court of Appeals issued this ruling on January 23, 2012, in the case of Trujillo v. Cosio.
Ms. Trujillo attended a birthday party at the home of Maria Cosio and Joel Verduzco. A piñata was hung between a tree and a brick archway. Ms. Trujillo went to get candy that had fallen from the piñata, during which the archway fell on her hand. Subsequent examination of the archway showed that it had not been “properly anchored to the supporting pillars to protect the arch from falling.”
Ms. Cosio and Mr. Verduzco argued that they could not have been aware of the defective nature of the archway’s construction, as it had been built at the request of the prior property owner. The structure was constructed without building permits. Mark Burns, a civil engineer testifying for the plaintiff, said that “a reasonable property owner would have thoroughly tested the archway to ensure it was capable of withstanding such horizontal forces before allowing children to enter into the area.” Mr. Burns noted that twenty rope pulls would have been sufficient to demonstrate the structure’s instability.
The trial court rejected Mr. Burn’s statements, finding that the respondents did not have any knowledge of the defect and that a visual inspection should have sufficed. The court noted that this a triable issue, whether visual inspection suffices, or whether the property owners should have done as Mr. Burns suggested and yank a rope twenty times. The court noted that “although a jury may ultimately disagree with Burn’s opinion, it was supported by sufficient foundation and was not speculative.”
The opinion was written by Judge Flier, with Judges Rubin and Grimes concurring.
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Wilke Fleury Attorneys Awarded Sacramento Business Journal’s Best of the Bar
September 30, 2019 —
Dan Egan, Steve Williamson & David Frenznick - Wilke FleuryWilke Fleury congratulates attorneys Dan Egan, Steve Williamson and David Frenznick on their inclusion in the Sacramento Business Journal 2019 Best of the Bar!
The Sacramento Business Journal annually honors the region’s top attorneys after a rigorous process of selection. To be awarded the Best of the Bar, attorneys are nominated by fellow attorneys and then vetted by a panel of peers.
Reprinted courtesy of Wilke Fleury attorneys
Dan Egan,
Steven J. Williamson and
David A. Frenznick
Mr. Egan may be contacted at degan@wilkefleury.com
Mr. Williamson may be contacted at swilliamson@wilkefleury.com
Mr. Frenznick may be contacted at dfrenznick@wilkefleury.com
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Jury Awards 20 Million Verdict Against Bishop Abbey Homes
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFA Rockwall County, Texas “jury has awarded a $20.8 million verdict against a Dallas homebuilder for performing substandard work on a local family's home and refusing to accept responsibility,” according to a press release published in The Wall Street Journal.
The lawsuit alleged that “the defendants were aware that the site of the Hales' future Highpoint Lake Estates home had significant foundation defects before construction began. The Hales said Mr. Halsey later promised that his company would take responsibility by fixing the structural defects that arose after construction, but he reneged and refused to repair the problems.”
The award included “damages for the cost of repairs, lost value and additional penalties based on Mr. Halsey's actions and the defendants' ‘grossly negligent’ conduct, including violations of the Texas Deceptive Trade Practices Act. The jury award includes attorneys' fees for the Hales' legal team.”
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Dangerous Condition, Dangerous Precedent: California Supreme Court Expands Scope of Dangerous Condition Liability Involving Third Party Negligent/Criminal Conduct
August 19, 2015 —
R. Bryan Martin, Laura C. Williams, & Lawrence S. Zucker II – Haight Brown & Bonesteel LLPIn Cordova v. City of Los Angeles (filed 8/13/15, Case No. S208130), the California Supreme Court held a government entity is not categorically immune from liability where the plaintiff alleges a dangerous condition of public property caused the plaintiff’s injury, but did not cause the third party conduct which precipitated the accident.
The case arises out of a traffic collision by which the negligent driving of a third party motorist caused another car to careen into a tree planted in the center median owned and maintained by the City of Los Angeles (“City”). Of the four occupants in the car that collided with the tree, three died and the fourth was badly injured. The parents of two of the occupants sued the City for a dangerous condition of public property under Government Code Section 835. The plaintiffs alleged the roadway was in a dangerous condition because the trees in the median were too close to the traveling portion of the road, posing an unreasonable risk of harm to motorists who might lose control of their vehicles.
The City successfully moved for summary judgment, which plaintiffs appealed. On review, the Court of Appeal affirmed holding the tree was not a dangerous condition as a matter of law because there was no evidence that the tree had contributed to the criminally negligent driving of the third party motorist.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Laura C. Williams and
Lawrence S. Zucker II
Mr. Martin may be contacted at bmartin@hbblaw.com
Ms. Williams may be contacted at lwilliams@hbblaw.com
And Mr. Zucker may be contacted at lzucker@hbblaw.com
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California Court of Appeal Finds Alleged Inadequate Defense by Insurer-Appointed Defense Counsel Does Not Trigger a Right to Independent Counsel
January 11, 2022 —
Robert Dennison - Traub LiebermanThe California Second District Court of Appeal had occasion to examine an insurer’s duty to provide independent counsel (“Cumis counsel”) to its insured in a declaratory relief action entitled Nede Management, Inc. v. Aspen American Insurance Company. The action arose from a fire on a property covered by an insurance policy issued by Aspen American Ins. Co (“Aspen”). Aspen’s insureds were sued for wrongful death and negligence by tenants and squatters allegedly injured by the fire.
Aspen defended three individual members of the family who owned the property and the family business, Nede Management, Inc. (“Nede”), which managed the property. The defense was subject to reservations of rights on the lack of an obligation to pay any judgment in excess of the $1 million policy limits and no coverage for punitive damages. Aspen appointed defense counsel to defend its insureds. The insureds sought independent counsel based on the assertion that defense counsel appointed by the insurer defended the action inadequately, failed to communicate an initial settlement demand within policy limits and failed to fully investigate the case. Aspen did provide Cumis counsel to Nede for a period but terminated the arrangement after revoking its reservation of rights to that entity. The underlying case eventually settled at no cost to the insureds.
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Robert Dennison, Traub LiebermanMr. Dennison may be contacted at
rdennison@tlsslaw.com
Colorado Court of Appeals to Rule on Arbitrability of an HOA's Construction Defect Claims
November 20, 2013 —
W. Berkeley Mann, Jr. — Higgins, Hopkins, McLain & Roswell, LLCOn October 24, 2013 the Colorado Court of Appeals granted a rare interlocutory appeal in a multi-family residential construction defect case. The Court of Appeals accepted the case ofTriple Crown at Observatory Village Association, Inc. v. Village Homes of Colorado, Inc.(2013 WL 5761028) as an interlocutory appeal after the parties briefed and obtained rulings from the trial court that compelled the case to binding arbitration in lieu of a jury trial on all issues. The appellate decision of October 24, 2013 did not decide the merits of the case, but discussed the issues to be decided in the eventual merits decision. The significance of the issues presented and the interlocutory nature of this appeal both make this case worth watching for further appellate proceedings.
The core issue in this appeal was the applicability of Colorado’s Uniform Arbitration Act (C.R.S. § 13-22-201, et seq.), based on recorded Declarations filed by the developer. The Declarations mandated that the HOA arbitrate any design/construction disputes with the developer. Immediately prior to suit, the Association sought to amend the Declarations in order to avoid the arbitration process for these claims. The interlocutory appellate issues resulted from the trial court’s order compelling the arbitration over the objections of the Association.
The trial court’s decision was based on a reading of the Colorado Revised Non-Profit Corporation Act (“CRNPC,” at C.R.S. § 7-127-107), which was found applicable to the Association.
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W. Berkeley Mann, Jr.W. Berkeley Mann, Jr. can be contacted at
mann@hhmrlaw.com