New York Court Narrowly Interprets “Expected or Intended Injury” Exclusion in Win for Policyholder
May 16, 2022 —
Michael S. Levine, Kevin V. Small & Joseph T. Niczky - Hunton Insurance Recovery BlogNL Industries recently prevailed against its commercial general liability insurers in the New York Appellate Division in a noteworthy case regarding the meaning of “expected or intended” injury and the meaning of “damages” in a liability insurance policy. In Certain Underwriters at Lloyd’s, London v. NL Industries, Inc., No. 2021-00241, 2022 WL 867910 (N.Y. App. Div. Mar. 24, 2022) (“NL Indus. II”), the Appellate Division held that exclusions for expected or intended injury required a finding that NL actually expected or intended the resulting harm; not merely have knowledge of an increased risk of harm. In addition, the court held that the funding of an abatement fund designed to prevent future harm amounted to “damages” in the context of a liability policy because the fund has a compensatory effect. NL Industries II is a reminder to insurers and policyholders alike that coverage is construed liberally and exclusions are construed narrowly towards maximizing coverage.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth,
Kevin V. Small, Hunton Andrews Kurth and
Joseph T. Niczky, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Small may be contacted at ksmall@HuntonAK.com
Mr. Niczky may be contacted at jniczky@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
Colorado House Bill 1279 Stalls over 120-day Unit Owner Election Period
April 20, 2017 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogWith the session more than halfway through, the Colorado Legislature’s 2017 attempts at meaningful construction defect reform may fail again. This year, the Legislature did not attempt a single-bill construction defect overhaul like those that have failed over the last half-decade. Rather, it has sought to enact reforms on a piecemeal basis, with several smaller bills addressing specific issues that have been affecting condominium construction along Colorado’s booming Front Range.
This new approach appears to be headed towards much the same outcome as the failed efforts of the past. House Bill 1169 would have given developers a statutory right to repair before being sued by homeowners, and Senate Bill 156 would mandate arbitration or mediation. Both have been assigned to the House State, Veterans, and Military Affairs Committee (often viewed as the “bill-kill committee”), and have little chance of being resuscitated this session.
This was also the fate of House Bill 1279, but bipartisan support had many believing that it still had a chance of passing—at least until last week. House Bill 1279 would require an executive board of a homeowners association to satisfy several prerequisites before suing a developer or builder, namely to (1) notify all unit owners and the developer or builder against whom the lawsuit is being considered; (2) call an association meeting where the builder or developer could present relevant facts and arguments; and (3) get approval from the majority of the unit owners after providing detailed disclosures about the lawsuit, including the potential costs and benefits thereof.
Read the court decisionRead the full story...Reprinted courtesy of
Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
How Will Today’s Pandemic Impact Tomorrow’s Construction Contracts?
October 26, 2020 —
Levi W. Barrett, Nathan A. Cohen & Mark A. Snyder - Peckar & AbramsonThe emergence of COVID-19 has created a new set of challenges in the already complex world of negotiating construction contracts. In the pre-COVID-19 era, general contractors, construction managers and those negotiating on their behalf, needed to balance a variety of fairly well-established legal risks and exposures and commercial realities with the need to maintain a positive relationship with their counterparty. While many are rightfully concerned with addressing the impacts of COVID-19 to their on-going projects, those negotiating new contracts now are undoubtedly cognizant that they are negotiating in the midst of an unpredictable future that is tipping the historical negotiating balance. The following presents some crucial areas to focus on when negotiating and drafting your contracts in this new era.
Contract Terms Through the COVID-19 Lens
Contractors should examine proposed new contracts carefully to identify rights that afford COVID-19 protections and identify contractual obligations that create COVID-19 commercial risks.
Specific attention should be paid to those sections relating to force majeure/excusable delay, emergencies, changes (including changes in law), contingency, suspension and termination, site investigation as well as all representations and warranties. The paramount concern in examining these provisions is to ensure that they not only entitle the contractor to relief for those unknown events, emergencies and changes, but that they also contain sufficient entitlement for the contractor to obtain both time extensions and financial compensation for unknown impacts of a known event – the COVID-19 pandemic.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Nathan A. Cohen, Peckar & Abramson, P.C.and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
Mr. Snyder may be contacted at msnyder@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Antidiscrimination Clause Required in Public Works and Goods and Services Contracts –Effective January 1, 2024
January 22, 2024 —
Travis Colburn - Ahlers Cressman & SleightIn July 2023, the Washington legislature passed Senate Bill 5186, which mandates inclusion of select antidiscrimination clauses in every state contract and subcontract for public works, goods, or services executed after January 1, 2024.
[i] RCW 49.60.530(3) codifies the now-required antidiscrimination clauses, which prohibit four categories of discrimination against any person because of age, sex, marital status, sexual orientation, gender identity, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, the presence of any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a person with a disability (the “Protected Class”).
Under the new law, public contractors and subcontractors (“Public Contractor”) may not refuse to hire a person because that person is a member of the Protected Class, unless that refusal is based upon a bona fide occupational qualification or if a person with a particular disability would be prevented from properly performing the particular work involved.
[ii] Similarly, Public Contractors may not discharge or bar a person from employment or discriminate against any person – either in terms of compensation or other terms and conditions of employment – because that person is a member of the Protected Class.
[iii] Last, Public Contractors may not print or circulate (or cause to be printed or circulated) any statement, advertisement, publication, form of application for employment, or make inquiry in connection with prospective employment, which expresses any limitation, specification, or discrimination as to the Protected Class.
[iv] Read the court decisionRead the full story...Reprinted courtesy of
Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Investigators Explain Focus on Pre-Collapse Cracking in Florida Bridge
June 06, 2018 —
Scott Judy & Richard Korman - Engineering News-RecordThe National Transportation Safety Board's preliminary report on the fatal collapse in March of a pedestrian bridge at Florida International University in Sweetwater focuses attention on the widely discussed pre-collapse cracking in the main span. The report also confirms accounts about what the construction crew working on the bridge was doing before the structure fell.
Reprinted courtesy of
Scott Judy, ENR and
Richard Korman, ENR
Mr. Judy may be contacted at judys@enr.com
Mr. Korman may be contacted at kormanr@enr.com
Read the court decisionRead the full story...Reprinted courtesy of
Wildfire Insurance Coverage Series, Part 3: Standard Form Policy Exclusions
July 11, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogEven when claims are within the scope of coverage, insurers often rely on exclusions in an attempt to avoid coverage for wildfire claims. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the interplay between coverage grants and exclusions, and the “anti-concurrent cause” provision.
Insurers may cite exclusions in an attempt to reduce or avoid liability. The insurance industry has long relied on the Insurance Services Office (ISO) to draft standard form policy language and secure approval as required by state regulatory agencies. ISO Form HO 00 03 10 00 (Section I—Exclusions, Part B) provides the following form exclusionary language:
We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
What is the Effect of an Untimely Challenge to the Timeliness of a Trustee’s Sale?
April 13, 2017 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogEver wonder what happens if a person challenges the timeliness of a trustee’s sale after the sale already occurred? Waiver of the argument of course! And, in the case of Wells Fargo Bank, N.A. v. Waltner, the affirmance of an eviction judgment.
In the Waltner case, Wells Fargo Bank, N.A., as Trustee for WaMu Mortgage Pass-Through Certificates, Series 2005-PR4 Trust (the “Bank”), purchased a residential property at a trustee’s sale in September 2015. The Bank gave the occupant of the house, Sarah Waltner (“Waltner”), notice to vacate the property, but she did not do so. Accordingly, the Bank filed a summary action to evict Waltner, which the trial court ultimately granted.
After the trial court granted the Bank relief, Waltner filed a motion to dismiss and a motion to vacate the eviction judgment arguing, among other things, that the judgment was void because the Bank conducted the trustee’s sale after the statute of limitations expired. Both motions were denied, and Waltner appealed.
Read the court decisionRead the full story...Reprinted courtesy of
Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Additional Insured Not Entitled to Coverage for Post-Completion Defects
December 21, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe general contractor, an additional insured on the subcontractor's policy, was not entitled to coverage for construction defect claims that arose after completion of the project. Weitz Co. v. Acuity, 2016 U.S. Dist. LEXIS 150433 (S.D. Ohio Oct. 31, 2016).
Weitz was the general contractor hired by Twin Lakes for construction of a residential community. One of the subcontractors, Miter Masonry, was insured by Acuity under a CGL policy. Work on the project began in 2002 and was substantially completed in 2005. In 2011, Twin Lakes notified Weitz that there were moisture infiltration issues at the project that may be related to work during the project.
Twin Lakes filed a Demand for Arbitration against Weitz on November 30, 2012. Twin Lakes alleged that the defects included the building wrap, windows, doors, wood trim, aluminum wrap, vinyl siding, flashing and brick veneer not being installed in accordance with contract documents and/or industry standards. The arbitration panel awarded damages to Twin Lakes in the amount of $2,775,771.86. The panel found that Weitz breached sections of the contract which caused moisture intrusion and damage to all the units. The panel ultimately held that Weitz could recover from the subcontractors 100% of the $2,775,771.86 awarded. Acuity's insured, Miter Masonry, was determined to be 4% at fault for the damages.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com