Delaware Supreme Court Choice of Law Ruling Vacates a $13.7 Million Verdict Against Travelers
August 07, 2018 —
Gregory Capps & Zachery Roth - White and Williams LLPOn July 16, 2018, the Delaware Supreme Court held in Travelers Indemnity Company v. CNH Industrial America, LLC, No. 420, 2017 (Del. Jul. 16, 2018), that a court’s choice of law inquiry in an insurance coverage dispute should focus on the contacts most relevant to the insurance contract rather than the location of the underlying claims. In Travelers, CNH Industrial America, LLC (CNH), sought coverage for asbestos liabilities associated with J.I. Case, Inc., a subsidiary it had acquired, under policies issued to J.I. Case and its former parent company, Tenneco, Inc. The issue before the Delaware Supreme Court was whether the anti-assignment clause in three Travelers policies issued to Tenneco, Inc. precluded the assignment of the policies to CNH. The validity of the assignment turned on which state’s law governed the dispute. (Under Wisconsin law, the parties agreed that the assignment was valid, while under Texas law, the parties agreed the assignment was invalid.)
Reprinted courtesy of
Gregory Capps, White and Williams LLP and
Zachery Roth, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
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Real Estate & Construction News Round-Up (07/13/22)
August 07, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThe Biden administration will use infrastructure funds to upgrade 85 airports across the U.S., The Affordable New York tax provision expires, homebuyers in China refuse to pay mortgages, and more.
- Hines, a Houston-based real estate giant, set a target of its 1,530 properties in 28 countries being net-zero operational carbon by 2040. (John Egan, Innovation Map)
- The Biden administration announced it will spend roughly $1 billion from the infrastructure package to upgrade 85 airports across the country, including terminals and other facilities. (Jeff Mordock, The Washington Post)
- The Affordable New York tax provision, which offered a property tax exemption for housing projects that include a percentage earmarked for lower-income renters, expired in June, creating an unsettled future for the city’s multifamily development. (Rebecca Picciotto, The Wall Street Journal)
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Pillsbury's Construction & Real Estate Law Team
Fourth Circuit Finds Insurer Reservation of Rights Letters Inadequate to Preserve Coverage Defenses Under South Carolina Law
January 17, 2023 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Stoneledge at Lake Keowee Owners Ass'n v. Cincinnati Ins. Co., 2022 U.S. App. LEXIS 34292 (D.S.C. Dec. 13, 2022), the Fourth Circuit Court of Appeals addressed the adequacy of reservation of rights letters issued by Builders Mutual Insurance Company (“Builders Mutual”) and Cincinnati Insurance Company (“Cincinnati”) to their insureds, Marick Home Builders, LLC (“Marick”) and Rick Thoennes (“Thoennes”), Marick’s managing member, for an underlying construction defect lawsuit. In short, the Fourth Circuit found that the reservation letters were inadequate to preserve the insurers’ coverage defenses because they did not sufficiently explain the basis of the carriers’ position.
Stoneledge, a homeowners association, managed a community of 80 townhomes on South Carolina’s Lake Keowee. In 2009, Stoneledge brought suit against Marick and Thoennes, among other defendants, alleging construction defects in the townhomes that resulted in water intrusion and other physical damage. Marick and Thoennes held commercial general-liability policies through Cincinnati and Builders Mutual covering, in relevant part, “property damage” as defined by the policies. Builders Mutual issued policies covering the period from January 2004 to October 2007, and Cincinnati issued policies covering the period from April 2008 to April 2012. After Marick notified the insurers of the underlying action, Builders Mutual sent Marick two reservation of rights letters, one in May 2009 and one in July 2009. Cincinnati sent Marick one reservation of rights letter in March 2010.
In March 2014, Stoneledge brought a declaratory-judgment action against Cincinnati seeking coverage for a judgment entered in the underlying action. The insurers removed the case to federal court, and in September 2016, Stoneledge amended its complaint, adding Builders Mutual as a defendant and seeking coverage for additional damages pursuant to a settlement agreement entered into by Stoneledge, Marick, Thoennes. The district court granted Stoneledge's motion for summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage. The insurers appealed to the Fourth Circuit, which affirmed.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Vermont Supreme Court Finds COVID-19 May Damage Property
November 07, 2022 —
Michael S. Levine & Lorelie S. Masters - Hunton Insurance Recovery BlogAs reported on this
blog, policyholders have long been of the view that the presence of substances like COVID-19 and its causative virus SARS-CoV-2, which render property dangerous or unfit for normal business operations, should be sufficient to trigger coverage under commercial all-risk insurance, as has been the case for more than 60 years.
However, many courts, federal courts in particular, despite decades of pro-policyholder precedent, have embraced the view that “viruses harm people, not [property].” Thirty-one months after the start of the pandemic, the first state high court has gone in a different direction, according greater weight to pro-policyholder precedent.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Lorelie S. Masters, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
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Key Takeaways For Employers in the Aftermath of the Supreme Court’s Halt to OSHA’s Vax/Testing Mandate
January 24, 2022 —
Laura H. Corvo - White and Williams LLPPolitical pundits and legal scholars have been engaged in frenzied debate trying to decipher the fallout of the United States Supreme Court’s decision that stopped stopped the Occupational Safety and Hazard Administration (OSHA) from enforcing its Emergency Temporary Standard (ETS) which mandated that employers with 100 or more employees require workers to show proof of vaccination against COVID-19 or submit to weekly testing. The Court’s decision prevents OSHA from enforcing its ETS until all legal challenges have been heard. Because the Court concluded that those legal challenges are “likely to succeed on the merits” of their argument that OSHA does not have the statutory authority to issue its vaccine and testing mandates, there is significant doubt that they will ever come to fruition.
While the pundits and scholars have now had their say, employers, who are struggling to manage a highly contagious variant, a tight labor market, and employees with divergent and staunch views on vaccination, are also left wondering what the Court’s decision means for them and what they should be doing. Here are some key takeaways for employers in the aftermath of the Court’s decision.
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Laura H. Corvo, White and Williams LLPMs. Corvo may be contacted at
corvol@whiteandwilliams.com
Forget Palm Springs—Santa Fe Is the New Mecca for Modern Architecture
November 19, 2021 —
James Tarmy - BloombergThe writer Helen Thompson had been a lifelong visitor to Santa Fe, but when she arrived at Georgia O’Keeffe’s home at Ghost Ranch 30 years ago, “I was shocked,” Thompson says. “Everything there was modern: Her furniture was modern; her light fixtures were modern; her art, of course, was modern. And in this rustic setting, the landscape is so powerful, it was all so elemental. That shock stayed with me.”
It was an experience, Thompson says, that led her to the conclusion that Santa Fe, long understood as a city filled with vernacular, decorative architecture, was ripe for a rethinking. “I kept wondering, why does something like that look so right here?” she says. “The landscape is so distinctive, and so not-modern, and yet these very precise pieces of furniture looked so right.”
Now, with her new book Santa Fe Modern: Contemporary Design in the High Desert (Monacelli, $50), Thompson has cracked the code. “Modern ideas are site-specific, and tied into what’s right for the landscape and the environment,” she says. Naturally, she continues, this conceptual framework works well in a place like New Mexico, where the dramatic horizon meets an even more dramatic sky.
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James Tarmy, Bloomberg
Public Law Center Honors Snell & Wilmer Partner Sean M. Sherlock As Volunteers For Justice Attorney Of The Year
June 10, 2019 —
Sean M. Sherlock – Snell & Wilmer Real Estate Litigation BlogSnell & Wilmer is pleased to announce the Public Law Center (PLC) has named Orange County partner Sean M. Sherlock as the 2019 Volunteers for Justice Attorney of the Year.
Sherlock donates his time and knowledge to his community through his pro bono work with PLC. From 2015 to earlier this year he headed a team of attorneys who represented an elderly PLC client in danger of losing her mobile home. The client is the primary caregiver for her disabled grandson who survives solely on a fixed income of disability and Social Security, causing her to fall behind on her space rent for her mobile home. In addition to pro bono work, Sherlock is an avid community volunteer, spending his time supporting organizations that have included Big Brothers/Big Sisters, Orange County Coastkeeper, AYSO and the Boy Scouts of America.
“One of the most rewarding aspects of being an attorney is being able to obtain justice for the vulnerable and defenseless in our society who would otherwise be unable to navigate our legal system,” said Sherlock. “My relationship with the PLC has given me many opportunities to do some very gratifying work, and it is a real pleasure working with and learning from the excellent staff attorneys at PLC.”
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Sean M. Sherlock, Snell & Wilmer Mr. Sherlock may be contacted at
ssherlock@swlaw.com
Considering Stormwater Management
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFAmanda Voss discusses stormwater and erosion control in a recent article published in Big Builder. “Stormwater and erosion control regulations are expanding their reach in the building industry,” Voss stated. “Now, even some remodeling programs have them.”
Voss presented various ideas to assist builders with stormwater management. First, she says, to identify potential pollutants: “You’ve got to pay attention not just to what you bring on to a site, but also to what leaves it—think erosion control and existing sediment.” Factors to consider include “site topography,” “materials brought in and out,” and the “staging area.”
Voss also suggested to “[m]ake sure that your stormwater strategy dovetails with a drainage plan,” and finally, to “[e]nlist the inspector as an ally.”
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