Where Breach of Contract and Tortious Interference Collide
July 18, 2022 —
Christopher G. Hill - Construction Law MusingsClaims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy.
In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts:
In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Duty to Defend For Accident Exists, But Not Duty to Indeminfy
March 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Seventh Circuit found there was a duty to defend the additional insured under the policy, but not a duty to indemnify. Kmart Corp. v. Footstar, Inc., 2015 U.S. App. LEXIS 1775 (7th Cir. Feb. 4, 2015).
By agreement, Footstar operated the footwear department in hundreds of Kmart stores around the country. Footstar's footwear departments were in designated areas of the Kmart stores. Section 18.1 of the Master Agreement required Footstar to defend and indemnify Kmart from "all damage . . . arising out of Footstar's performance or failure to perform under this Agreement." The same section also required Footstar to obtain additional insurance coverage for Kmart.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida Condo Collapse Shows Town’s Rich, Middle-Class Divide
August 04, 2021 —
The Associated Press (Terry Spencer & Freida Frisaro) - BloombergThe condo tower collapse in Surfside could exacerbate the division that already exists between the tiny Florida town’s new luxury buildings built for the global elite and those constructed decades ago for the middle class. It is already creating headaches for some small businesses.
The town has seen the construction of numerous new condos in recent years, where large oceanfront units exceeding 3,000 square feet (280 square meters) with modern amenities can fetch $10 million and up. Meanwhile, small units of 800 square feet (75 square meters) in neighboring condo buildings constructed decades ago can be had for $400,000.
Ana Bozovic, a South Florida real estate broker, said the June 24 collapse of the 40-year-old, middle-class Champlain Towers South will exacerbate this division. At least 46 people were killed and more than 90 remain missing.
Read the court decisionRead the full story...Reprinted courtesy of
Bloomberg
Insurers Subrogating in Arkansas Must Expend Energy to Prove That Their Insureds Have Been Made Whole
July 30, 2019 —
Michael J. Ciamaichelo - The Subrogation StrategistArkansas employs the “made whole” doctrine, which requires an insured to be fully compensated for damages (i.e., to be “made whole”) before the insurer is entitled to recover in subrogation.[1] As the Riley court established, an insurer cannot unilaterally determine that its insured has been made whole (in order to establish a right of subrogation). Rather, in Arkansas, an insurer must establish that the insured has been made whole in one of two ways. First, the insurer and insured can reach an agreement that the insured has been made whole. Second, if the insurer and insured disagree on the issue, the insurer can ask a court to make a legal determination that the insured has been made whole.[2] If an insured has been made whole, the insurer is the real party in interest and must file the subrogation action in its own name.[3] However, when both the insured and an insurer have claims against the same tortfeasor (i.e., when there are both uninsured damages and subrogation damages), the insured is the real party in interest.[4]
In EMC Ins. Cos. v. Entergy Ark., Inc., 2019 U.S. App. LEXIS 14251 (8th Cir. May 14, 2019), EMC Insurance Companies (EMC) filed a subrogation action in the District Court for the Western District of Arkansas alleging that its insureds’ home was damaged by a fire caused by an electric company’s equipment. EMC never obtained an agreement from the insureds or a judicial determination that its insureds had been made whole. In addition, EMC did not allege in the complaint that its insureds had been made whole and did not present any evidence or testimony at trial that its insureds had been made whole. After EMC presented its case-in-chief, the District Court ruled that EMC lacked standing to pursue its subrogation claim because “EMC failed to obtain a legal determination that its insureds had been made whole . . . prior to initiating this subrogation action.” Thus, the District Court granted Entergy Ark., Inc.’s motion for judgment as a matter of law and EMC appealed the decision.
Read the court decisionRead the full story...Reprinted courtesy of
Michael J. Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com
Canada’s Largest Homebuilder Sets U.S. Growth Plan
April 01, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Builder magazine, after conquering the Canadian market, Mattamy Homes seeks to build more homes in the U.S. Mattamy’s Jim Leiferman had been asked to promote the company in the Orlando-area, however, “he went above and beyond that mission, growing the company’s footprint well beyond the metro area.”
Brian Johnson, COO of Mattamy, told Builder, “[Jim Leiferman] was promotable, like any division president, but Jim proved to really, in a very short period of time, have a very strong in understanding of the business. He’s thoughtful and goes beyond our expectations.”
Read the court decisionRead the full story...Reprinted courtesy of
David A. Frenznick Awarded Multiple Accolades in the 2020 Edition of The Best Lawyers in America
September 23, 2019 —
David A. Frenznick - Wilke FleuryWilke Fleury congratulates attorney David A. Frenznick on his inclusion in the 26th Edition of The Best Lawyers in America© for his work in: Litigation – Real Estate!
In addition, David was also acknowledged as a 2020 “Lawyer of the Year” award recipient. He received this accolade for his work in Litigation – Real Estate in Sacramento. Only a single lawyer in each practice area and community is honored with a “Lawyer of the Year” award.
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 94,000 industry leading lawyers are eligible to vote (from around the world), and have received over 11 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. For the 2020 Edition of The Best Lawyers in America©, 8.3 million votes were analyzed, which resulted in more than 62,000 leading lawyers being included in the new edition. Lawyers are not required or allowed to pay a fee to be listed; therefore inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”
Read the court decisionRead the full story...Reprinted courtesy of
David A. Frenznick, Wilke FleuryMr. Frenznick may be contacted at
dfrenznick@wilkefleury.com
“You’re Out of Here!” -- CERCLA (Superfund) Federal Preemption of State Environmental Claims in State Courts
October 20, 2016 —
Joshua J. Anderson & John E. Van Vlear – Newmeyer & Dillion LLPThe Comprehensive Environmental Response, Compensation, and Liability Act, 42
U.S.C § 9601 et seq. (“CERCLA”), commonly referred to as “Superfund,” is a federal statute
that provides funding and cost-recovery to address our nation’s worst hazardous-waste
sites. While CERCLA generally vests United States District Courts with exclusive original
jurisdiction over all related controversies, section 113(h) of the Act delays such jurisdiction
while the United States Environmental Protection Agency supervises or undertakes
environmental response action plans. What impact does this delayed federal jurisdiction
have on state law claims brought in state courts? Short answer: “You’re out of here!”
Litigants are precluded from bringing claims in state court that “challenge” environmental
response actions under CERCLA during the pendency of those actions.
Reprinted courtesy of
Joshua J. Anderson, Newmeyer & Dillion LLP and
John E. Van Vlear, Newmeyer & Dillion LLP
Mr. Anderson may be contacted at joshua.anderson@ndlf.com
Mr. Van Vlear may be contacted at john.vanvlear@ndlf.com
Read the court decisionRead the full story...Reprinted courtesy of
Michigan Lawmakers Pass $4.7B Infrastructure Spending Bill
April 11, 2022 —
James Leggate - Engineering News-RecordMichigan lawmakers have passed legislation appropriating $4.7 billion for state infrastructure, including more than $1 billion for various water projects.About $750 million will go toward drinking water infrastructure such as projects to replace lead service lines or remove contaminants like PFA substances, potentially harmful chemicals used in industrial and consumer products that are have been found in water.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of