New York High Court: “Issued or Delivered” Includes Policies Insuring Risks in New York
December 20, 2017 —
Bethany Barrese & Samantha Martino - Case Alert BlogOn 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
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Anti-Assignment Provision Unenforceable in Kentucky
December 20, 2012 —
TRED EYERLY, INSURANCE LAW HAWAIIOn a certified question from the Federal District Court, the Supreme Court of Kentucky decided that an anti-assignment provision in a policy is unenforceable.
Wehr Constructors v. Paducah Div. Assur. Co. of Am., 2012 Ky. LEXIS 183 (Ky. Oct. 25, 2012).
Before building an addition to its hospital, Murray Calloway County Hospital purchased a builder's risk policy from Assurance Company of America.The policy provided, "Your rights and duties under this policy may not be transferred without Assurance's written consent . . . ." The Hospital contracted with Wehr Constructors to install concrete subsurfaces and vinyl floors in order to expand the hospital. After installation, a portion of the floors and subsurface work was damaged. The Hospital submitted a claim to Assurance for $75,000, but the claim was denied.
Wehr sued the Hospital to recover money for its work on the construction project. In settling the case, the Hospital assigned to Wehr any claim or rights the Hospital had against Assurance.
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Tred R. Eyerly, Insurance Law Hawaii.Mr. Eyerly can be contacted at
te@hawaiilawyer.com
Cumulative Impact Claims and Definition by Certain Boards
June 21, 2024 —
David Adelstein - Florida Construction Legal UpdatesWhat is a cumulative impact claim? This is commonly referred to as the unforeseeable ripple effect of changes, i.e., the death by a thousand cuts. Cumulative impact claims refer to a disruption on productivity based on the cumulative impact of changes and their impact on unchanged work. Cumulative impact claims are difficult claims to prove, particularly based on the causation standpoint (and argument they could be released based on change order language). If pursuing or considering a cumulative impact claim, you will need to work with a consultant(s) and lawyer that understand the dynamic of these claims to best maximize your arguments and recovery from a causation and damages standpoint. Cumulative impact damages are real. They occur. But they are not damages you can just throw out there or use loosely and expect to develop traction on compensation.
Below is how cumulative impact claims are defined by certain Boards of Contract Appeals. The definitions are important.
In Appeal of Centex Bateson Construction, Co., Inc., 9901 BCA P 30153, VABCA 4613 (VABCA 1998), the Board explained:
Direct impact, as the immediate and direct effect of a change on unchanged work, is considered foreseeable.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Partner John Toohey is Nominated for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
March 11, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is honored to share that Newport Beach Partner John Toohey is nominated for West Coast Casualty’s 2024 Jerrold S. Oliver Award of Excellence!
Every year, West Coast Casualty recognizes an individual who is committed, trustworthy, and has contributed years to the betterment of the construction defect community. The award is named after the late Judge Jerrold S. Oliver who is considered a “founding father” in the alternate resolution process in construction claims and litigation. Each year, members of the construction community are asked to nominate individuals who invoke the same spirit as Judge Oliver.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Massive Danish Hospital Project Avoids Fire Protection Failures with Imerso Construction AI
December 23, 2023 —
Aarni Heiskanen - AEC BusinessEnsuring regulatory compliance of firewall constructions is getting a high-tech boost. Over the past 16 months, the construction team responsible for the iconic new Nyt Hospital Nordsjælland near Copenhagen used Imerso construction AI technology to achieve remarkable results. By using Imerso, the team enhanced work productivity while preventing costs and delays worth €5.2 million during the construction of the superstructure.
Inspired by this success, the team led by Project Manager Anders Kaas has since been eager to explore the potential of the technology in other areas. The opportunity arose to address a topic that has traditionally posed significant challenges and expenses in numerous construction projects – ensuring regulatory compliance of fire barriers and firewall constructions.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Are “Green” Building Designations and Certifications Truly Necessary?
January 28, 2019 —
Christopher G. Hill - Construction Law MusingsAs anyone who reads this construction blog on a regular basis knows, I believe that the move to newer sustainable building practices (while bringing about a new or different set of potential risks) is both necessary and laudable. Because of this fact, you may be asking why the headline for today’s post. After all, I am a LEED AP and assisted in the drafting of the LEED/Green Building addendum to the ConsensusDOCS so I must be pro LEED (or any other) certification of buildings. To the extent that such certification encourages best practices and more sustainable building stock, I am pro certification.
However, certification is not a necessary carrot to bring builders around to such practices. As a recent article in EcoHome Magazine (thanks to Todd Hawkins at BuilderFish for alerting me to the article) points out, companies are already moving toward these practices with or without certification and it’s added layer of expense. Economic, air quality, and moral (“its the right thing to do”) factors are pushing executives to such practices. According to EcoHome Magazine, while LEED retains the lions share of green certifications, more and more companies are either using internal standards or trying out other certification programs, including Energy Star.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Graham & Who May Trigger The Need To Protest
December 23, 2023 —
Hugo Fraga - Ahlers Cressman & Sleight PLLCOn May 30, 2023, the Washington Court of Appeals, Division I, issued a decision that appears to expand a contractor’s obligation with respect to WSDOT notice and claim procedures. In
Graham Contracting, Ltd. v. City of Federal Way, No. 83494-1-I, 2023 WL 3721171 (Wash. Ct. App. May 30, 2023) (Unpublished), the Court held that under the 2016 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction (“Standard Specifications”), a Contractor must protest the actions of not only the “Engineer” but also the actions of any person or organization acting on behalf of the Owner.
This case arises out of a public construction contract in which Graham Contracting Ltd (“Graham”) built a multi-million dollar roadway improvement for the City of Federal Way along a stretch of Pacific Highway. The appeal was from the trial court’s granting of the City’s motion for summary judgment to dismiss claims by Graham for extra time and money due to delays and impacts to Graham’s construction of the Project.
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Hugo Fraga, Ahlers Cressman & Sleight PLLCMr. Fraga may be contacted at
hugo.fraga@acslawyers.com
California’s High Speed Rail Project. Are We Done With the Drama?
October 22, 2014 —
Garret Murai – California Construction Law BlogProponents of California’s high-speed rail project cleared a major hurdle this past week when the California Supreme Court declined to review a California Court of Appeals ruling which held that the state’s funding plan did not violate Proposition 1A, the voter-approved initiative passed in 2008, which provided initial funding for the project.
For those like me who have been following the fits and starts of California’s high-speed rail project, it may be hard to remember how it all got started, and how we got to where we are.
California's High-Speed Rail Project
California’s high-speed rail project involves the construction of a high-speed passenger rail system running from Northern California to Southern California. The $68 billion system, expected to begin operation in 2029, will initially run from San Francisco to the Los Angeles basin in under 3 hours with train speeds capable of over 200 miles per hour. The system will eventually extend from Sacramento to San Diego covering a distance of approximately 800 miles with up to 24 stations.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com