CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Traub Lieberman Partner Eric D. Suben Obtains Federal Second Circuit Affirmance of Summary Judgment in Insurer’s Favor

April 10, 2023 — Eric D. Suben - Traub Lieberman
In the underlying action, a property owner hosting a motorcycle rally was sued after a motorcycle collided with an auto near the entrance to the premises, injuring the cyclists. The cyclists sued the property owner, among others, alleging failure to supervising traffic on the adjoining roadway. The property owner tendered the claim under its CGL policy, which was endorsed with an “absolute auto exclusion,” precluding coverage for claims “arising out of or resulting from the ownership, maintenance, use or entrustment to others of any…auto.” The CGL insurer disclaimed coverage based on the endorsement. In the ensuing coverage litigation, Traub Lieberman represented the insurer, and moved for summary judgment arguing that the “absolute auto exclusion” was dispositive of coverage on the facts alleged, citing case law from New York state courts enforcing similar exclusions to preclude coverage for multi-vehicle accidents. The insured argued in opposition that the outcome should be controlled by Essex Insurance Company v. Grande Stone Quarry, LLC, 82 A.D.3d 1326, 918 N.Y.S.2d 238 (3rd Dep’t 2011), in which the court declined to apply such exclusion in the case of a single-vehicle accident caused by a dangerous condition of the insured’s premises. The federal district judge disagreed with the insured’s argument in this regard, granting Traub Lieberman’s motion for summary judgment in favor of the insurer. Read the court decision
Read the full story...
Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

---

What is the Implied Warranty of Habitability?

October 02, 2018 — Bremer Whyte Brown & O’Meara
The implied warranty of habitability plays an important role in our understanding of the relationship between tenant and landlord; it helps to define the parameters and requirements of contracts between tenant and the owner. In doing so, the implied warranty of habitability is meant to ensure that a home or rental unit is in a livable condition. In this article, we’ll take a look at what the warranty of habitability is, how it developed, and what differentiates the warranty of habitability from the previous landlord-tenant law. Background of the Implied Warranty of Habitability When someone hears about the warranty of habitability, their first question is usually “what is the implied warranty of habitability?” This is understandable, given that the implied warranty of habitability isn’t exactly well known. Most renters have probably never heard of the implied warranty of habitability, despite the fact that it provides important safeguards for tenant’s rights. In order to gain a better understanding of what the implied warranty of habitability is, it is helpful to understand what state of affairs existed prior to the adoption of an implied warranty of habitability. Read the court decision
Read the full story...
Reprinted courtesy of Bremer Whyte Brown & O’Meara

---

New York Regulator Issues Cyber Insurance Guidelines

March 29, 2021 — Anne Kelley - Newmeyer Dillion
From the rise of ransomware attacks to the recent SolarWinds-based cyber espionage campaign that struck at the very heart of the U.S. Government, it is apparent that cybersecurity is more critical than ever. COVID-19 and the remote workplace has only served to embolden cyber criminals, and cyber risk now permeates nearly every aspect of modern life from health care data to national security. Cyber insurance plays a critical role in managing cyber risk, and businesses increasingly rely on such coverage to minimize cyber losses. Because of surging cybercrime, it is estimated that the cyber insurance market will increase from $3.15 billion in 2019 to $20 billion by 2025. Having a robust cyber insurance market and ample available coverage is vital to U.S. businesses. In recognition of this reality, the New York Department of Financial Services recently issued the first guidance by a U.S. regulator on cyber insurance—a Cyber Insurance Risk Framework. A key premise of the Framework is to drive improved cybersecurity and cyber risk management, thereby reducing cyberattacks and ensuring that cyber insurance premiums do not spiral out of control. The Framework recognizes the importance of ensuring a healthy cyber insurance market, and applies to all property/casualty insurers that write cyber insurance. Read the court decision
Read the full story...
Reprinted courtesy of Anne Kelley, Newmeyer Dillion
Ms. Kelley may be contacted at anne.kelley@ndlf.com

---

“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention

March 22, 2018 — Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law Blog
It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract. When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800 et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.) Reprinted courtesy of Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and Joy Siu, Sheppard, Mullin, Richter & Hampton LLP Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Domtar Update

June 11, 2014 — Robert M. Caplan – White and Williams LLP
On May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?” In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf. Read the court decision
Read the full story...
Reprinted courtesy of Robert M. Caplan, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com

---

Former Owner Not Liable for Defects Discovered After Sale

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
In a “tentative decision” by Judge Steven Kleifield, Mark Van Peebles and a real estate company have been exonerated “of any liability in a lawsuit involving the sale of the actor’s Playa del Rey condominium, whose buyer says he discovered mold and a flooring defect,” according to the Patch. However, the judge “ordered the Waterfront Homeowners Association to pay Adel Bebawy $26,217 for repair work on the floor and the kitchen as well as civil penalties for not keeping him informed about board meetings.” The suit began in 2009 after Bebawy alleged “he discovered the floor had a severe slope and that there was significant mold in a bathroom,” reported the Patch. Kleifield, however, stated that the mold didn’t affect the condo’s value. Furthermore, Kleifield wrote that the sloping didn’t become an issue until Bebawy began installing a hardwood floor. Read the court decision
Read the full story...
Reprinted courtesy of

---

2018 Construction Outlook: Mature Expansion, Deceleration in Some Sectors, Continued Growth in Others

January 24, 2018 — Garret Murai – California Construction Law Blog
U.S. construction starts are expected to increase 3 percent to $765 billion in 2018 according to Dodge Data & Analytics in its 2018 Dodge Construction Outlook. But we may be approaching the end of a construction boom, at least in certain industry segments. The construction industry as a whole is in a “mature stage of expansion,” indicates Robert Murray, Chief Economist for Dodge Data & Analytics. “After rising 11% to 13% per year from 2012 through 2015, total construction starts advanced a more subdued 5% in 2015. An important question entering 2017 was whether the construction industry had the potential for further expansion,” explained Murray. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel, Rosen, Black, Dean, LLP
Mr. Murai may be contacted at gmurai@wendel.com

---

Insured's Commercial Property Policy Deemed Excess Over Unobtained Flood Policy

June 10, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion for summary judgment, deciding that there was no breach of the policy for failure to pay for flood damage when the insured failed to obtain a policy under the National Flood Insurance Program (NFIP). 570 Smith St. Realty Corp. v. Seneca Ins. Co. Inc., 2019 N.Y. Misc. LEXIS 1773 (N.Y. Sup. Ct. April 4, 2019). The insured's property in Brooklyn was insured by Seneca. Included in the policy was flood coverage in the amount of $1 million with a $25,000 deductible. While the policy was in effect, Hurricane Sandy hit, damaging the property. Plaintiffs timely filed a claim seeking reimbursement of up to policy limits. Seneca paid only $35,883 and later made an additional payment of $33,015. The insured sued for, among other things, breach of the policy for failure to properly indemnify for the losses. Seneca moved for partial summary judgment dismissing the breach of policy claims. Seneca pointed out that the "Other Insurance" provision in the Flood Coverage Endorsement of the policy stated that if the loss was eligible to be covered under a NFIP policy, but there was no such policy in effect, the insurer would only pay for the amount of loss in excess of the maximum limit payable for flood damage under the policy. The maximum NFIP coverage was $500,000. The insured's loss caused by flood was less than $500,000. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---