Dorian’s Wrath: How Event Cancellation Insurance Helps Businesses Recoup Losses from Severe Weather
December 16, 2019 —
Sergio F. Oehninger, Andrea DeField & Daniel Hentschel - Hunton Insurance Recovery BlogAs the 2019 hurricane season peaks, the Bahamas and the Southeast United States have already endured a catastrophic storm. Hurricane Dorian not only tragically caused loss of life and substantial property damage, but it also led to the cancellation or postponement of major events, resulting in considerable economic losses for affected companies.
For instance, Hurricane Dorian forced the cancellation of one of the Rolling Stones’ concerts at Hard Rock Stadium in Miami, as well as the cancellation of R&B singer Chris Brown’s concert in Fort Lauderdale. Dorian also affected the college football game between Florida State University and Boise State University in Jacksonville. Having sold 45,000 tickets to the game, officials were forced to move the game inland to Tallahassee at great expense and effort.
The planners, headliners, teams and fans of these and similar events were not the only ones affected by the cancellations and schedule changes. Hotels, restaurants and businesses relying on tourism also were severely impacted by the schedule changes resulting from Hurricane Dorian over Labor Day weekend. Other programming that may have been affected includes conventions and meetings, fairs and festivals, trade shows and exhibitions, or any other corporate events planned to take place outdoors, requiring travel or with ticket-paying audiences.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Sergio F. Oehninger,
Andrea DeField and
Daniel Hentschel
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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No Prejudicial Error in Refusing to Give Jury Instruction on Predominant Cause
November 11, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe California Court of Appeal affirmed the trial court's judgment after the jury determined there was no coverage for a leaking pipe. Mendoza v. Pacific Spec. Ins. Co., 2024 Cal. App. Unpub. EXIS 5477 (Cal. Ct. App. Aug. 20, 2024).
The Mendoza's third amended complaint alleged their home was damaged "by overflow of water from the dwelling's plumbing system resulting from a broken pipe, which overflow undermined the structural integrity of the dwelling."
The Mendozas insured their home under a policy issued by Pacific. The policy insured the property against "sudden and accidental direct physical loss" except where expressly excluded. The Mendozas submitted a claim Pacific paid approximately $1800 for the loss and closed the claim. The amount paid did not include payment for any structural damage to the home. The Mendozas alleged that Pacific's failure to conduct a full and fair investigation into the structural damage and its inadequate payment of benefits was a breach of the implied covenant of good faith and fair dealing.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Golf Resorts Offering Yoga, Hovercraft Rides to the Green
June 18, 2014 —
Nadja Brandt – BloombergFlorida’s Woodmont Country Club, which once boasted 1,200 members, has been hit hard in the past decade as hurricanes and then the recession kept golfers away. Now the club’s owner is adding conference space, stores, restaurants, a spa and a hotel as part of a planned revival.
About $100 million will be spent on the revamp of the property in Tamarac, about 14 miles (23 kilometers) northwest of Fort Lauderdale, owner Mark Schmidt said. After years of negotiations with local authorities, he expects to receive approval this month for the planned Woodmont improvements.
While tennis courts and swimming pools have long had a place at golf clubs, a growing number of course owners are embracing mixed-use real estate, a concept more often used in urban developments to hedge risk and diversify returns. Property investors are adding everything from medical facilities to amphitheaters and hovercraft operations to increase revenue.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
Contractors: Beware the Subordination Clause
October 15, 2014 —
Garret Murai – California Construction Law BlogA bit of mechanics lien trivia.
What is the only state in the United States in which mechanics liens are a constitutional right?
If you answered California, ding, ding.
Article XIV of the California Constitution states:
Mechanics, persons furnishing materials, artisans, and laborers of every class, shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and materials furnished; and the Legislature shall provide, by law, for the speedy and efficient enforcement of such liens.
But how does that constitutional right stand up against contractual rights? Not so well it seems.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Staffing Company Not Entitled to Make a Claim Against a Payment Bond and Attorneys’ Fees on State Public Works Payment Bonds
August 12, 2024 —
Garret Murai - California Construction Law BlogIt’s not quite Baskin Robbin’s “31 Flavors” but the panoply of statutory construction payment remedies available to contractors, subcontractor and material suppliers in California, from mechanics liens to stop payment notices to payment bond claims, can be tempting to reach for when you are not paid. However, some flavors are more readily available than others, as a staffing agency discovered in
K & S Staffing Solutions, Inc. v. The Western Surety Company, Case Nos. C096705 and C097987 (January 2, 2024).
The K & S Staffing Case
The California Department of Transportation awarded VSS International, Inc. two public works construction contracts for road maintenance. Each involved an expenditure of over $25,000 and VSSI obtained a payment bond from Western Surety Company.
Titan DVBE Inc. was a subcontractor on both projects. For most years, Titan employed its own workers. However, when it learned that its insurance carrier would no longer be offering workers’ compensation insurance in California it switched to K & S Staffing Solutions, Inc. to fulfill its staffing needs.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Contractors Struggle with Cash & Difficult Payment Terms, Could Benefit From Legal Advice, According to New Survey
December 30, 2019 —
Christopher G. Hill - Construction Law MusingsGuest Post Friday is back with a post from my pal Scott Wolfe. Scott is the founder and CEO of Levelset, which is used by thousands of contractors to make payments fast and easy. Scott, previously a construction attorney himself, founded Levelset to even the $1 trillion construction playing field, and is on a mission to make payments less stressful for contractors and suppliers across the globe.
Getting paid in construction is slow, hard, and stressful, according to a survey conducted by Levelset & TSheets by Quickbooks that polled over 500 construction professionals. Half of the contractors surveyed complained that they did not get paid on time, which caused serious cash flow issues that negatively impacted their customer relationships and frequently forced them to dip into personal savings and lines of credit to keep their business afloat.
View the 2019 Construction Payment Report here.
Unfortunately, since the construction industry’s slow payment problems are well-documented, this sad reality isn’t too surprising. The findings, though, do demonstrate a massive cash crunch for the 1.5 million+ contractors in the United States, and underscores the importance of having legal help and counsel from a construction lawyer before, during, and after jobs.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Kushner Company Files Suit Against Jersey City Over Delays to Planned Towers
July 10, 2018 —
Associated Press - Engineering News-RecordJERSEY CITY, N.J. (AP) — Jared Kushner's family company has filed a lawsuit against a New Jersey city, saying it forced the delay of a major twin-tower project due to "political animus" toward President Donald Trump.
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Engineering News-RecordENR staff may be contacted at
ENR.com@bnpmedia.com
Whose Employee is it Anyway?: Federal Court Finds No Coverage for Injured Subcontractor's Claim Based on Modified Employer's Liability Exclusion
September 28, 2020 —
Jeffrey J. Vita & Kerianne E. Kane - Saxe Doernberger & VitaIn Nagog Real Estate Consulting Corp. v. Nautilus Insurance Co.,1 the United States District Court for the District of Massachusetts held that an insurer had no duty to defend its insureds against claims brought by an injured subcontractor, based on an overbroad employer’s liability exclusion in the policy.
Nautilus Insurance Company issued a commercial general liability policy to developer Nagog Homes LLC and its related construction company, Nagog Real Estate. The policy was endorsed with an Employer’s Liability Exclusion (the L205 Endorsement) that expanded the scope of the standard exclusion in the coverage form to include bodily injury claims of employees of “any” insured and their contractors or subcontractors, as opposed to simply the employees of the named insured.
Nagog Homes was the developer, and Nagog Real Estate was the general contractor for a residential construction project. An employee of the framing subcontractor hired by Nagog Real Estate was injured while working on the project and sued both Nagog entities for his injuries. Nautilus, relying on the modified employer’s liability exclusion, denied coverage for the lawsuit based on allegations that the Nagog entities hired the framing subcontractor to perform work, which effectively made the plaintiff an employee of one or both of the Nagog entities.
Reprinted courtesy of
Jeffrey J. Vita , Saxe Doernberger & Vita and
Kerianne E. Kane, Saxe Doernberger & Vita
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. Kane may be contacted at kek@sdvlaw.com
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