A Contractual Liability Exclusion Doesn't Preclude Insurer's Duty to Indemnify
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Traub Lieberman Straus & Shrewsberry LLP's blog, "[I]n Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20737 (5th Cir. October 29, 2014), the United States Court of Appeals for the Fifth Circuit withdrew its prior ruling and held that the contractual liability exclusion did not preclude an insurer’s duty to indemnify its insured for an award resulting from the insured’s defective construction."
The case involved the Crownovers who were awarded damages for "Arrow's breach of paragraph 23.1 of the construction contract." However, Arrow then filed for bankruptcy. Mid-Continent, Arrow's insurer, denied Crownovers' demand for recovery, stating that "the contractual liability exclusion applied because the arbitrator’s award to the Crownovers was based only on Arrow’s breach of paragraph 23.1 of the construction agreement." The court agreed with Mid-Continent.
Subsequently, the fifth court of appeals "reversed the district court’s ruling and awarded summary judgment in favor of the Crownovers."
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“Professional Best Efforts” part 2– Reservation of Rights for Engineers who agree to “best” efforts? (law note)
April 20, 2017 —
Melissa Dewey Brumback - Construction Law in North CarolinaRecently, a reader reached out to me to ask about case examples of an engineer losing his insurance coverage because he agreed to a “heightened” or “best” standard of care. The reader stated that he was an insurance adviser who handled various construction professional coverages, and that in his experience it was very unusual to deny or limit damages because of a heightened standard of care.
This comment led me to an informal survey of several insurance brokers that I deal with, and the general consensus is that instead of outright denying a claim, most E&O insurers will issue a “reservation of rights” letter. What that means is that the insurance company will defend the claim (i.e., pay for your lawyer to defend you and your Firm), but with the understanding that they are (potentially) denying any liability for any adverse money judgment against you.
Inevitably, most such cases settle, but if they do not, the question then is whether the heightened duty created part of the damages. The insurer may ask to intervene in the lawsuit to ask the jury that question, in an effort to limit its share of the damages.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
The Godfather of Solar Predicts Its Future
October 02, 2023 —
Oscar Boyd, Akshat Rathi, & Christine Driscoll - BloombergSetting world records. Combing through warehouses of old electronics. Seeding the Chinese solar industry from afar. This is the life of Martin Green, a professor at the University of New South Wales in Sydney and the director of the Australian Centre for Advanced Photovoltaics.
Green’s work on solar panel design made the modern solar industry possible: 90% of solar panels made last year were based on his designs. He’s still going strong, too, regularly breaking new records in the pursuit of the perfect solar panel.
This week on
Zero, Akshat Rathi sits down with the man many call “the godfather of solar” to hear firsthand how it happened, the next record he wants to break and whether solar panels are destined for space.
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Oscar Boyd, Bloomberg,
Akshat Rathi, Bloomberg and
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Consultant Says It's Time to Overhaul Construction Defect Laws in Nevada
February 07, 2013 —
CDJ STAFFRandi Thompson, a Republican political and media consultant, told the Reno Gazette-Journal what she wished Governor Brian Sandoval had said during his recent State of the State address in Nevada. Construction defect litigation was one of the issues that Ms. Thompson said that Governor Sandoval should have addressed. Thompson said that the governor "should have said it's time to get rid of Nevada's horrid construction defect laws." Ms. Thompson said that "these laws extort money from small business subcontractors who likely had nothing whatsoever do to with any real or perceived defect." She attributed the ongoing construction defect scandal in Las Vegas to "bad law."
Ms. Thompson said that these issues are unlikely to be addressed, because "the Democrats control both houses in the Legislature" and the issues are "sacred cows to the Democrats' constituents."
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James R. Lynch Appointed to the Washington State Capital Project Review Committee
June 22, 2016 —
Ahlers & Cressman Crew - Ahlers & Cressman Construction Law BlogJames R. Lynch, one of the attorneys at the law firm of Ahlers & Cressman PLLC, has been appointed to the Washington State Capital Project Review Committee (PRC). Created by the legislature in 2007, the PRC is responsible for reviewing and approving all public projects in the State of Washington using the General Contractor/Construction Manager (GC/CM) and Design-Build (D-B) delivery methods of construction. The PRC also certifies certain qualified government bodies to use these methods more broadly. The PRC consists of key representatives of Washington public project owners, designers, general contractors, specialty/subcontractors, construction managers, construction trades labor, and minority/women businesses. James has been appointed to the PRC’s Private Sector seat for a three-year term.
You may learn more about Ahlers & Cressman PLLC at www.ac-lawyers.com
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Get Your Contracts Lean- Its Better than Dieting
January 13, 2020 —
Brian Perlberg, Esq. - ConsensusDocsI recently took the AGC Lean Construction Educations Program Units 1-7. After studying diligently, I’m happy to say that I passed the exam and earned my CM-Lean credential. Surprisingly, this makes me the first attorney to earn this distinction out of over 1,200 CM-Lean holders. So why is a construction attorney learning about lean? After all, this was my first exam in 20 years since I took the bar.
Well, according to McKinsey Global Institute, construction actually became less productive from 1995 through 2009. When it comes to efficiency, construction still lags significantly behind the manufacturing sector and the overall economy. Construction contracts – what we sign and the way in which we negotiate them, or lack thereof – is a principal reason why construction productivity is stagnant.
Contracting under an integrated lean project delivery method (ILPD) and incorporating Lean construction tools is the most powerful means to increase efficiency and add-value to owners. Owners are the client’s end-users of construction projects. ConsensusDocs has taken a leadership role in publishing the first standard ILPD contract which is an integrated form of agreement (IFOA). The ConsensusDocs 300 Integrated Project Delivery (IPD™) provides an off-the-shelf solution to contract utilizing lean tools. Not every owner can or is comfortable using an IPD approach. Consequently, ConsensusDocs produced the ConsensusDocs 305 Construction Lean Construction Addendum last year to provide an option for contracting for lean on Construction Management at-Risk and design-build projects. Some people call this approach IPD-lite or IPD’ish. Some disfavor such terms, because those terms have been used loosely on projects that aren’t very Lean.
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Brian Perlberg, Esq., Executive Director and Senior Counsel of ConsensusDocsConsensusDocs may be contacted at
support@consensusdocs.org
Lorelie S. Masters Nominated for Best in Insurance & Reinsurance for the Women in Business Law Awards 2021
November 08, 2021 —
Adriana A. Perez & Andrea DeField - Hunton Insurance Recovery BlogWe are pleased to announce that Hunton Andrews Kurth LLP insurance coverage partner
Lorelie S. Masters is one of only eight attorneys throughout the nation shortlisted for the Best in Insurance & Reinsurance category for the
Women in Business Law Awards 2021. The award honors “the outstanding achievements of women in over thirty different practice areas in business law from across Americas. These are individuals who stand out as leaders amongst their peers and who have been instrumental to innovative approaches in their field.”
A nationally recognized insurance coverage litigator, Ms. Masters has handled and tried cases in state and federal trial and appellate courts across the country and in arbitrations in the United States and abroad. At issue in these cases, typically, have been millions of dollars of insurance coverage for product and environmental liability, like silicone gel breast implant and asbestos claims. She regularly advises clients on a wide range of liability coverages, including insurance for environmental, cyber, directors and officers, property damage, and other liabilities and loss. Most recently, she has advised clients in a variety of industries on COVID-19 losses under a wide variety of first-party property, business-interruption policies and “package policies,” and obtained multi-million dollar settlements under D&O, Side-A Only D&O and E&O policies.
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Adriana A. Perez, Hunton Andrews Kurth and
Andrea DeField, Hunton Andrews Kurth
Ms. Perez may be contacted at pereza@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
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Nomos LLP Partner Garret Murai Recognized by Best Lawyers®
September 18, 2023 —
Garret Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized by Best Lawyers® in its 30th edition of The Best Lawyers in America® in the area of Construction Law for 2024. This is the the first year Garret has been recognized by Best Lawyers®.
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Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com
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