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New York High Court: “Issued or Delivered” Includes Policies Insuring Risks in New York

December 20, 2017 — Bethany Barrese & Samantha Martino - Case Alert Blog
On November 20th, the New York Court of Appeals reinstated a case seeking more than six million dollars in damages against the insurers for DHL Worldwide Express Inc. (“DHL”), originating from a fatal head-on car crash between Claudia Carlson and a truck owned by MVP Delivery and Logistics Inc. (“MVP”), a DHL contractor. The truck, which bore DHL’s logo, was owned by MVP and driven by an MVP employee. The MVP employee was running an errand unrelated to his job at the time of the accident. Mrs. Carlson’s husband sued the employee, DHL, and MVP. The jury award of $20 million was reduced to $7.3 million by the Appellate Division. MVP’s insurer paid Mr. Carlson just over $1 million, and the employee assigned his rights to any other insurance coverage to Mr. Carlson Mr. Carlson sued DHL and its insurers, seeking the balance of the outstanding judgment pursuant to New York Insurance Law § 3420. The defendants successfully moved to dismiss Mr. Carlson’s claims, which dismissal was affirmed by the Appellate Division on the basis that § 3420 did not apply since the policies in question were not “issued or delivered” in New York; they had been issued in New Jersey and delivered in Washington and Florida. The Court of Appeals was subsequently presented with two questions: (1) whether the DHL policies fell within the purview of Insurance Law § 3420 as policies “issued or delivered” in New York; and (2) whether MVP was an “insured” pursuant to the “hired auto” provisions of DHL’s policies. Reprinted courtesy of Bethany Barrese, Saxe Doernberger & Vita, P.C. and Samantha Martino, Saxe Doernberger & Vita, P.C. Ms. Barrese may be contacted at blb@sdvlaw.com Ms. Martino may be contacted at smm@sdvlaw.com Read the court decision
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Construction Law Client Alert: California’s Right to Repair Act (SB 800) Takes Another Hit, Then Fights Back

February 25, 2014 — Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLP
Last week, the California appellate courts decided two cases with ramifications under the Right to Repair Act. The first case, Burch, addresses whether the Right to Repair Act is the exclusive remedy for the homeowner. The second case, KB Home, addresses a situation where a homeowner or the homeowner's insurer fails to follow the procedures under the Right to Repair Act. Last August, the Fourth Appellate District announced its decision in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 holding that SB 800 is not a homeowner’s exclusive remedy in situations where defects cause actual damage. Many lawyers believed that Liberty Mutual would be a one-off because of its facts – it was a subrogation case brought by an insurance company. So much for that. Now the Second Appellate District is getting into the act. In Burch v. The Superior Court of Los Angeles County, et al., the Second Appellate District overturned an order granting summary adjudication in favor of a developer, general contractor, and their respective owners, in a construction defect action brought by a residential homeowner. The trial court found that the Right to Repair Act precluded the homeowner’s negligence and implied warranty claims but the Court of Appeal reversed. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel, LLP and Whitney L. Stefko, Haight Brown & Bonesteel, LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com, Ms. Stefko may be contacted at wstefko@hbblaw.com Read the court decision
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Real Estate & Construction News Round-Up (01/25/23) – Artificial Intelligence, Proptech Innovation, and Drone Adoption

February 14, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores new artificial intelligence tools and their projected impact on real estate agents, key trends driving proptech innovation, barriers to adopting drones in the construction industry, and more.

Artificial intelligence (AI) has the potential to become an invaluable tool to streamline the selling journey of a property, empower buyers to make informed decisions, and enhance the work of real estate agents. (Alexandra Cain, The Urban Developer)
Miami real estate agents experiment with the new artificial intelligence tool, ChatGPT, which can generate text based on simple prompts, to write house listings, communicate with developers, and produce content. (Martin Vassolo, Axios)
Asset owners in Asia and Europe turn to artificial intelligence to collect ESG information across public and private markets, including from residential buildings in Japan. (Hugo Cox, Asian Investor)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Texas LGI Homes Goes After First-Time Homeowners

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Big Builder, while many consumers have “gone to rentals…as the homeownership rate fell,” that hasn’t stopped Texas-based builder LGI Homes from marketing to the entry-level buyer: “We do not believe that we’re becoming a renter society,” Eric Lipar, LGI CEO told Big Builder. “We believe there is a need and a desire for homeownership.” “The real growth will be powered by an aggressive sales and marketing operation that aims to pull renters out of their apartments (or single-family rentals) and into LGI homes,” reported Big Builder. “So far this pitch has worked in Texas (Dallas, Houston, San Antonio, and Austin), in addition to Phoenix and Tampa, Fla.” Read the court decision
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Housing Starts Fall as U.S. Single-Family Projects Decline

February 18, 2015 — Bloomberg News
(Bloomberg) -- Builders broke ground on fewer U.S. residential construction projects in January as demand for single-family homes cooled from an almost seven-year high, signaling the rebound in housing remains uneven. Housing starts declined 2 percent to a 1.07 million annual rate, following the prior month’s 1.09 million pace, a Commerce Department report showed Wednesday in Washington. The median forecast of 82 economists surveyed by Bloomberg was 1.07 million. Permits, a proxy for future construction, also fell. Student debt, tight credit conditions and rising prices are probably preventing would-be first-time homebuyers from entering the market, which will damp construction. At the same time, a strengthening labor market and rising household formation may support building of rental units, underpinning residential real estate. Nina Glinski may be contacted at nglinski@bloomberg.net; Shobhana Chandra may be contacted at schandra1@bloomberg.net Read the court decision
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Draft Federal Legislation Reinforces Advice to Promptly Notify Insurers of COVID-19 Losses

April 20, 2020 — James Hultz - Newmeyer Dillion
Insurers across the country are nearly universally denying claims for business interruption stemming from the COVID-19 pandemic. Those denials have in turn been met with swift litigation and potential legislative action. The first business interruption coverage lawsuit related to COVID-19 was filed in New Orleans on March 16. There are now no less than 13 such cases nationwide and many more are likely to follow. Further, legislatures in at least seven states are considering legislation that would, to varying degrees, mandate business interruption coverage for COVID-19 losses, notwithstanding any seemingly contrary policy provisions. From the early stages of the pandemic, we have consistently advised our clients to promptly notify their insurers of all COVID-19 related losses, even where coverage appeared uncertain. The deluge of coverage litigation and contemplated legislation could drastically alter how insurers handle COVID-19 claims. But policyholders who have failed to satisfy policy notice requirements could miss out on the benefits of those changes. Therefore, policyholders would be ill-advised to sit on the sidelines and wait it out. Now, draft Federal legislation appears to add further impetus to instructions to “tender early.” The contemplated “Pandemic Risk Insurance Act of 2020” would reportedly devote billions of dollars of federal funds through a Department of Treasury administered reinsurance program designed to offset losses sustained by insurers who actually pay business interruption losses. The legislation is still taking shape but would reportedly create “a Federal program that provides for a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease.” President Trump is also reportedly pressuring insurers to provide business interruption coverage. The massive influx of federal funds and pressure from the White House could encourage insurers to reconsider denials of COVID-19 business interruption claims. Read the court decision
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Reprinted courtesy of James Hultz, Newmeyer Dillion
Mr. Hultz may be contacted at james.hultz@ndlf.com

Illinois Legislature Enables Pre-Judgment Interest in Personal Injury Cases

February 01, 2021 — Justin Zimmerman - Lewis Brisbois
On January 13, 2021, the Illinois General Assembly passed HB 3360, which will enable pre-judgment interest of 9% in personal injury cases. The legislation was sponsored by Madison County, Illinois-area representative Jay Hoffman (D-Belleville) and Illinois state senator Dan Harmon (D-Oak Park). Under current Illinois law, plaintiffs are not entitled to pre-judgment interest in personal injury cases because the nature and extent of a plaintiff’s damages cannot be calculated in advance and liability is uncertain (compared, for example, to a breach of contract claim). If signed by the governor, personal injury actions in Illinois will be subject to 9% per annum pre-judgment interest accruing “on the date the defendant has notice of the injury from the incident itself or a written notice." Notably, the bill will also impact pending litigation as interest begins to accrue on the effective date of the legislation for cases already filed. Read the court decision
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Reprinted courtesy of Justin Zimmerman, Lewis Brisbois
Mr. Zimmerman may be contacted at Justin.Zimmerman@lewisbrisbois.com

Hundreds of Snakes Discovered in Santa Ana Home

February 04, 2014 — Beverley BevenFlorez-CDJ STAFF
404 Snakes—more than half dead—were discovered after a “nearly daylong search” in a home in Santa Ana, California, reported the Los Angeles Times. “Over the past few months, neighbors called authorities about the foul odor,” claimed the Orange County Register. “They thought it was trash. Then Jehovah’s Witnesses knocked on the door.” Concerned that someone might have died, they called the police. William Buchman, the homeowner, “identified as a snake breeder, was arrested on suspicion of animal cruelty, a felony,” according to the Los Angeles Times. Police wore gas masks and “clutched Tasers” as they entered the home. “Rats scampered over furniture and scores of clear plastic boxes holding the snakes lined the walls.” The Orange County Register claimed that up until recently Bachman was a “regular joe.” A neighbor said, “Let me tell you, Bill was a nice guy, outspoken, knowledgeable. He talked to my grandkids about school.” According to the Los Angeles Times, Buchman’s mother died in 2011, which appeared to “have affected him profoundly.” Read the full story at The Los Angeles Times... Read the full story at The Orange County Register... Read the court decision
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