Mediation Fails In Federal Lawsuit Seeking Damages From Sureties for Alleged Contract Fraud
August 17, 2020 —
Richard Korman - Engineering News-RecordAfter mediation failed, a federal whistle blower lawsuit over alleged fraud against two contractors, which also targets sureties and a surety bond producer, is moving forward. The parties have asked a U.S. district court judge in Washington, D.C. to rule on outstanding motions in preparation for a possible trial.
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Requesting an Allocation Between Covered and Non-Covered Damages? [Do] Think Twice, It’s [Not Always] All Right.
October 12, 2020 —
Todd Likman - Colorado Construction LitigationAs is often the case in construction defect and other insurance defense litigation, a plaintiff’s claims for relief typically encompass both covered and uncovered damages. Obviously, it is in the insured’s best interests to have as many damages covered by insurance as possible. From the insurer’s perspective and against the backdrop of owing duty of good faith and fair dealing to its insureds, however, it is generally better to have an allocation of covered vs. non-covered damages. This places the insurer, insured, and insurance retained defense counsel in a difficult position.
A recent opinion from U.S. District Court for the District of Colorado, Rockhill Ins. Co. v. CFI-Global Fisheries Mgmt, Civil Action No. 1:16-CV-02760-RM-MJW, 2020 U.S. Dist. LEXIS 35209 (D. Colo. Mar. 2, 2020), sheds light on the issue, even though some may feel it only further muddies already murky waters.
Rockhill involved review of an arbitration proceeding that property-owner, Heirloom I, LLC (“Heirloom”) filed against CFI-Global Fisheries Management (“CFI”). Rockhill Insurance Company (“Rockhill Insurance”) was asked to defend the arbitration as CFI’s professional and general liability insurer. At issue in the arbitration was Heirloom’s claim that CFI defectively designed and constructed a fisheries enhancement that was destroyed by natural processes four times in three years.
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Todd Likman, Higgins, Hopkins, McLain & RoswellMr. Likman may be contacted at
likman@hhmrlaw.com
Construction News Roundup
September 19, 2022 —
Christopher G. Hill - Construction Law MusingsMuch happened in the last week or so in Virginia construction, both legally and otherwise. I thought a quick roundup was in order.
On the green front we has a great article in ENR relating to the liability risk of green building and the great interest in the
AGCVA Green Building Breakfast.
Also, the Virginia courts decided several interesting cases:
The first is Travelers Property Cas. Co. of America a/s/o Covenant Woods v. Premier Project Mgmt. Group LLC v. Haskell Co. a case that reminds everyone that waivers of third party rights under the contract will be enforced in Virginia.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Update Your California Release Provisions to Include Amended Section 1542 Language
April 02, 2019 —
Amy L. Pierce & William S. Hale, P.E. - Gravel2Gavel Construction & Real Estate BlogMost companies have been involved in a situation where they want to end their relationship with another company, or with an employee, and to permanently terminate their mutual obligations (e.g., a settlement agreement resolving end-of-project litigation). In 1992, a California Court of Appeals, in Winet v. Price, confirmed that upholding general releases is “in harmony… with a beneficial principle of contract law: that general releases can be so constructed as to be completely enforceable.”
In California, agreements with a release of claims (or s general release) include what is often referred to as a California Civil Code § 1542 waiver for the purpose of ensuring that the releasing party is consciously releasing both known and unknown claims that may be later discovered. Such a waiver provision generally confirms that the Releasing Party acknowledges that it understands and waives the provisions of Section 1542, followed by the quoted text of Section 1542 (typically in all capital letters).
Reprinted courtesy of
Amy L. Pierce, Pillsbury and
William S. Hale, Pillsbury
Ms. Pierce may be contacted at amy.pierce@pillsburylaw.com
Mr. Hale may be contacted at william.hale@pillsburylaw.com
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A Survey of Trends and Perspectives in Construction Defect Decisions
November 27, 2013 —
CDJ STAFFThomas F. Segella, Ellen H. Greiper, and Matthew S. Lerner, partners at the firm Goldberg Segalia, together with Suzin L. Raso, an associate of the firm, have prepared a wide-ranging survey of cases, in their commentary, “Emerging Trends and Changing Perspectives on Construction Defect Claims.
The authors examine 11 coverage cases, representing decisions from eight states, and 15 cases of litigation, here covering 11 states. In each case, they give a one-sentence summary, a further discussion of the case, and they end with a practice note.
They start with Alabama, noting that the court found that “faulty workmanship is not an occurrence,” looking at the recent case of Owners Insurance Co. v. Jim Carr Homebuilders, LLC. Here they note that under Alabama law, “there was no damage to personal property or property of others; therefore, there was no ‘occurrence.’” They also note that “the policy involved did not contain a ‘subcontractor exception.’”
In Georgia, they noted, the courts concluded that “damage to insured’s completed work is an ‘occurrence.’” Here they cite a recent decision of the Georgia Supreme Court, noting that the court looked at cases from Connecticut, South Carolina, Illinois, Texas, as well as the Fourth and Tenth Circuits.
Under litigation, they look at such aspects of construction defect litigation such as the application of the economic loss doctrine in Kansas and Florida, and how the courts view arbitration agreements in states including New Jersey, Louisiana, and Colorado.
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Vacation Rentals: Liability of the Owner for Injury Suffered by the Renter
May 13, 2019 —
Kevin J. Parker - Snell & Wilmer Real Estate Litigation BlogWith the explosion of the “private” rental business wherein residential property owners rent their house or condo on a short-term basis to third-parties, certain legal issues have arisen with regard to the duties owed by the property owner to the renter.
A recent Virginia Supreme Court case, Haynes-Garrett v. Dunn, 818 S.E.2d 798 (Va. 2018), addressed that issue. In that case, the property owners owned a rental house in Virginia Beach. The property was not the owners’ main residence, but rather a vacation home that was sometimes used by the owners, but mostly used as a rental. The issue addressed by the court was whether – for the purpose of evaluating the owners’ duty of care to the renter – the relationship should be classified as a “landlord-tenant” relationship or an “innkeeper-guest” relationship. This classification was important because the duties of the owner to the renter were significantly different depending on the category. In the landlord-tenant arena, under Virginia law, the landlord has no duty to maintain the property in a safe condition because the property is deemed to be under the tenant’s exclusive control. (An exception being concealment or fraud by the landlord as to some defect in the premises that is known to the landlord but unknown to the tenant.) Assuming that exception does not apply, the tenant takes the premises in whatever condition they may be in, thus assuming all risk of personal injury from defects or dangerous conditions.
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Kevin J. Parker, Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Law Firm Settles Two Construction Defect Suits for a Combined $4.7 Million
October 25, 2013 —
CDJ STAFFConstruction Lawyers, LLP has announced that it has settled two Florida construction defect suits, both of which were filed by condominium associations. The first of these involved the Estates at Park Central Condominium Association, a 244-unit condominium complex in Orlando Florida. The condominium association alleged leaks into balconies and garages, and deficiencies in stucco application. After nearly three years since the filing of the lawsuit, and only weeks before the trial was to begin, the case was settled for $2 million.
The second case has also spent the last three years in mediation, however its trial date was further away. The Grand Venezia Condominium Owners Association alleged construction defects including leaking roofs and windows, and improperly installed stucco, leading to dry rot and water damage. The condominium community comprises 336 units in Clearwater, Florida and the units were originally built as apartments. Here, the settlement with the contractor was for $2.75 million. A lawsuit against the developer continues.
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Newmeyer Dillion Named 2020 Best Law Firm in Multiple Practice Areas by U.S. News-Best Lawyers
November 24, 2019 —
Newmeyer DillionProminent business and real estate law firm Newmeyer Dillion is pleased to announce that U.S. News-Best Lawyers® has recognized the firm in its 2020 "Best Law Firms" rankings, with six of its practice areas earning the highest ranking possible - Tier 1 in the Orange County Metro area. The practices recognized include Commercial Litigation, Construction Law, Insurance Law, Litigation - Construction, Litigation - Real Estate and Real Estate Law.
Firms included in the 2020 "Best Law Firms" list have been recognized by their clients and peers for their professional excellence. Firms achieving a Tier 1 ranking have consistently demonstrated a unique combination of quality law practice and breadth of legal expertise.
“We are grateful that the firm’s clients and our peers again recognize our personalized approach to legal service. We strive to provide creative solutions that propel our clients’ businesses forward,” said Managing Partner Paul Tetzloff.
To be eligible for the “Best Law Firms” ranking, a firm must have at least one attorney recognized in the current edition of The Best Lawyers in America for a specific practice area. Best Lawyers recognizes the top 4 percent of practicing attorneys in the U.S., selected through exhaustive peer-review surveys in which leading lawyers confidentially evaluate their professional peers.
ABOUT NEWMEYER DILLION
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of corporate, privacy & data security, employment, real estate, construction, insurance law and trial work, Newmeyer Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com
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