Hawaii Appellate Court Finds Agent May Be Liable for Failing to Submit Claim
November 01, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter the agent informed the insured there was no coverage and submitting a claim would be a useless effort, the Hawaii Intermediate Court of Appeal reversed the trial court's dismissal of the insured's suit against the agent. Pflueger, Inc. v. AIG Holdings, Inc., 2022 Haw. App. LEXIS 279 (Haw. Ct. App. Sept. 2, 2022).
In May 2008, Pflueger notified its agent, Noguchi & Associates, Inc., that it had received federal grand jury subpoenas. Noguchi informed Pflueger that the subpoenas did not qualify as a "claim" under two policies issued by National Union. Consequently, Noguchi did not forward a claim or the subpoenas to National Union and did not seek clarification as to whether the grand jury subpoenas were covered under the policies. Pflueger relied upon Noguchi's representations and took no further action until its attorney submitted a demand letter tendering Pflueger's defense to Nation Union nine months later, in February 2009.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas Legislature Puts a Spear in Doctrine Making Contractor Warrantor of Owner Furnished Plans and Specifications
May 31, 2021 —
Paulo Flores, Timothy D. Matheny & Jackson Mabry - Peckar & Abramson, P.C.The Texas Legislature has just sent Senate Bill 219 (“S.B. 219”) to the Governor for signature; if this legislation is signed by the Governor, it will further erode the Texas legal doctrine that makes the contractor the warrantor of owner-furnished plans and specifications unless the prime contract specifically places this burden on the owner.
Background
49 states follow what is known as the Spearin doctrine (named after the U.S. Supreme Court case of United States v. Spearin) in which owners warrant the accuracy and sufficiency of owner-furnished plans and specifications. Texas, on the other hand, follows the Texas Supreme Court created Lonergan doctrine, which has been an unfortunate presence in Texas construction law since 1907. In its “purest form,” as stated by the Texas Supreme Court, the Lonergan doctrine prevents a contractor from successfully asserting a claim for “breach of contract based on defective plans and specifications” unless the contract contains language that “shows an intent to shift the burden of risk to the owner.” Essentially, this then translates into the contractor warranting the sufficiency and accuracy of owner-furnished plans and specifications, unless the contract between them expressly places this burden on the owner. Over the years some Texas courts of appeal had ameliorated this harsh doctrine, but in 2012, the Texas Supreme Court indicated Lonergan was still the law in Texas, in the case of El Paso v. Mastec. In 2019, the Texas Legislature took the first step toward hopefully abrogating the Lonergan doctrine by implementing a new Chapter 473 to the Texas Transportation Code with respect to certain projects undertaken by the Texas Department of Transportation, and Texas political subdivisions acting under the authority of Chapters 284, 366, 370 or 431 of the Transportation Code, adopting, as it were, the Spearin Doctrine in these limited, transportation projects. Now, the legislature has further chipped away at the Lonergan doctrine with the passage of S.B. 219.
Reprinted courtesy of
Paulo Flores, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and
Jackson Mabry, Peckar & Abramson, P.C.
Mr. Flores may be contacted at PFlores@Pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
Mr. Mabry may be contacted at jmabry@pecklaw.com
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More Business Value from Drones with Propeller and Trimble – Interview with Rory San Miguel
August 10, 2017 —
Aarni Heiskanen - AEC BusinessHere’s my interview with Rory San Miguel, CEO of Propeller Aerobotics, a UAV tech company. We’re discussing the use of drones in construction and the company’s recently announced collaboration with Trimble to deliver efficient UAV workflows.
You’re a co-founder of Propeller. How did your company come about?
I met Francis (Propeller co-founder) in 2013 at a drone delivery startup called Flirtey. There we worked closely on drone technology as engineers but ultimately felt like there were nearer term revenue opportunities for drones in the mapping/surveying space. We quickly spun out to start Propeller and have focussed on making drone data easy for construction, mining, quarries and landfills since then.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Federal Contractors Should Request Debriefings As A Matter Of Course
May 30, 2018 —
Scott MacDonald - Ahlers Cressman & Sleight BlogFederal Contractors—especially those engaging in FAR Part 15 direct contract negotiations—should make it a routine practice to timely request debriefings after the Contracting Agency excludes the bidder from the competitive range (“pre-award debriefing”) or after the Agency issues the award (“post-award debriefing”). Debriefings allow the Contractor to understand the evaluation process used by the Contracting Agency and to receive an assessment of how it fared in that evaluation. This is not a one-sided presentation as Contracting Agencies are required to answer the contractor’s relevant questions about the decision-making process. Properly run debriefings can be used to better tailor future bids and negotiations, as further marketing to the Contracting Agency for future awards, and, occasionally, to unearth grounds for a potential protest if any part of the evaluation process is out of sync with the FARs. In the event the contractor learns of a basis for protest at the debriefing, the deadline to file a protest begins running from the date of the debriefing—whether it was required or not.
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Scott MacDonald, Ahlers Cressman & Sleight PLLCMr. MacDonald may be contacted at
scott.macdonald@acslawyers.com
Coverage for Faulty Workmanship Denied
September 07, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer had no duty to defend claims against the insured for faulty workmanship. HT Services, LLC v. Western Heritage Ins. Co., 2020 U.S. Dist. LEXIS 123664 (D. Colo. July 10, 2020).
Western Heritage Insurance Company issued three concurrent general liability policies to HT Services, LLC. The policies insured two properties owned by HT in Colorado Springs, its offices and vacant land. HT eventually developed a residential community on the vacant land. In January 2016, the homeowners' association filed suit against HT for negligent design and construction of a retaining wall at the project.
HT requested Western to defend and indemnify against the suit. Western denied coverage and HT sued. HT asserted that Western had a duty to defend and asserted claims for declaratory relief, breach of contract and bad faith. HT moved for partial summary judgment on its claims for declaratory relief, seeking a determination of its rights under the policies. Western moved for summary judgment on all of HT's claims.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
As Recovery Continues, Home Improvement Stores Make Sales
August 27, 2013 —
CDJ STAFFNeed another sign of the housing recovery? Lowe’s stock price is up. Bloomberg News reports that the home-improvement retailer rose by 88 cents a share in the last quarter. Analysts had predicted gains of 79 cents a share, and the same quarter last year saw profits of 64 cents a share. The increase in profits come from more purchases and higher spending per purchase. While Lowe’s negotiated some better prices with vendors and dropped some items that weren’t selling, none of the profits came from staff reduction; the retailer actually increased staffing.
Home Depot, the largest such chain (Lowe’s is number 2), also saw profits that exceeded analysts’ projections. They, too, have decided to focus on assisting customers. Their increase in profits was attributed to greater spending by contractors and homeowners.
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BHA at the 10th Annual Construction Law Institute, Orlando
January 13, 2017 —
Don MacGregor - Bert L. Howe & Associates, Inc.Bert L. Howe & Associates, Inc. is once again proud to be partnering with the Florida Bar Continuing Legal Education Committee and the Construction Law Committee of the Florida Bar Real Property, Probate and Trust Law Section, as a sponsor and exhibitor at the 10th Annual Construction Law Institute to be held March 16th, 17th & 18th, 2017 at the JW Marriott Orlando Grande Lakes in Orlando.
With offices in Miami serving all of Florida, Bert L. Howe & Associates, Inc. (BHA) offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 6,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and sub-contractors.
BHA’s experience covers the full range of construction and construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA specializes in coverage, exposure, premises liability, and delay claim analysis as well.
As the litigation climate in Florida continues to change, and as the number of construction defect and other construction related cases continues to rise, it is becoming more important for contractors and builders here to be aggressive in preparing for claims before they are made, and in defending against those claims once they are filed. Since 1993, Bert L. Howe & Associates has been an industry leader in providing construction consulting services, and has been a trusted partner with builders and insurance carriers, both large and small, across the Western and Southern United States. Here in Florida, we have been providing construction defect and construction-claims related forensic expert services for the past decade with a proven track record of successful results.
For those of you planning on attending the conference, or those who may know someone who will be, we encourage you to stop by the BHA booth and we welcome the opportunity to discuss further the broad range of services provided by BHA.
For your convenience, when registration information is made available, a link to the 10th Annual Construction Law Institute should be available here: http://www.rpptl.org/
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Don MacGregor, Bert L. Howe & Associates, Inc.Mr. MacGregor may be contacted at
dmac@berthowe.com
Orange County Home Builder Dead at 93
April 25, 2012 —
CDJ STAFFRandall E. Presley was a homebuilder in Southern California for more than thirty years, acting as head of Presley Development Company from 1956 until selling the firm to Lyon Homes in 1987. The two companies merged in 1991 as the Presley Cos. Mr. Presley saw the need in the 1950s to provide people in Southern California with low- to medium-priced quality homes.
His firm built more than 160 communities and was among the ten largest homebuilding firms in the country, expanding beyond California. Mr. Presley was 93 when he succumbed to pneumonia. He is survived by a wife, three children, seven grandchildren, and 11 great-grandchildren.
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