Additional Insured Not Covered Where Injury Does Not Arise Out Of Insured's Work
April 15, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court found the contractor did not have coverage as an additional insured under the subcontractor's policy. Walton Constr. v. First Fin. Ins. Co., 2015 US. Dist. LEXIS 30710 (E.D. La. March 12, 2015).
John Maestri was injured while working on a construction project for the Jefferson Parish School Board. Maestri was a commercial glazier for A-1 Glass Services Inc. A-1 was a subcontractor for Walton Construction. While Maestri was installing glass on the project, a high-voltage power line maintained by Entergy Louisiana, LLC electrocuted him, causing burns on his body.
Maestri sued Entergy. Entergy filed a third-party complaint against A-1 and Walton, alleging that the Louisiana Overhead Power Line Safety Act had been violated by failing to give advance notice that their workers would be working near the power lines. Entergy argued that under the statute, A-1 and Walton are liable for any damages that Entergy had to pay Maestri.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer's Attempt to Strike Experts in Collapse Case Fails
February 03, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's efforts to exclude two of the insured's experts in a collapse case were unsuccessful. Hudon Specialty Ins. Co. v. Talex Enterprises, LLC, 2019 U.S. Dist. LEXIS 150148 (S.D. Miss. Sept. 4, 2019).
The insureds' building collapsed. The remaining portions of the building required immediate stabilization. The insureds hired Mr. Laird, an engineer, to prevent further property destruction. The insured designated Mr. Laird as a non-retained expert for trial. Mr. Laird's report claimed that the collapse was caused because the building had been re-roofed many times without removal of the degraded underlying roofing materials, thereby adding additional weight to the roof structure.
The insureds also designated Steve Cox as a non-retained expert. Mr. Cox was an architect who owned property neighboring the building that collapsed. He opined that the building collapsed because of the condition of very old mortar and not because of water standing on the building roof or because of roof repairs.
Hudson sought to strike these two experts because their opinions were inconsistent with the admitted facts. A document produced by the insureds stated that a large amount of rainwater had collected on the roof and the weight of the rainfall was the proximate cause of the collapse. Hudson claimed that this statement qualified as a judicial admission, removing the question of causation from contention. The court disagreed that the statement was a judicial admission because it did not form any part of the pleadings. The statement may have been an evidentiary admission that could be controverted or explained by the parties.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Hurricane Harvey Victims Face New Hurdles In Pursuing Coverage
September 07, 2017 —
Tred R. Eyerly - Insurance Law HawaiiJust as Hurricane Harvey departs the state, a new law in Texas, effective September 1, 2017, is going to make it more difficult for home and business owners to pursue claims against their insurance companies.
Prior Texas law imposed liability on an insurer who violated the Insurance Code for the amount of the claim, interest on the amount of the claim at an annual interest rate of 18 percent, and reasonable attorney fees. H.B. 1774 was recently enacted to address legal actions for claims arising from damage to or loss of property due to hailstorms, lightening, wind, hurricane, rainstorm and other natural events.
The bill creates additional procedural hurdles before a policy holder can file a lawsuit against the insurer. A written notice must be provided to the insurer at least 61 days before filing a lawsuit. The notice must include a statement of the acts giving rise to the claim, the specific amount alleged to be owed, and amount of reasonable and necessary attorney's fees already incurred by the policy holder. Once notice is received, the statute allows the insurers to send a written request to inspect, photograph, or evaluate the property.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Litigation Privilege Saves the Day for Mechanic’s Liens
November 23, 2020 —
Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & BonesteelIn RGC Gaslamp v. Ehmcke Sheet Metal Co., the Fourth Appellate District held that a trial court properly granted an anti-SLAPP motion because the recording of a mechanic’s lien is protected by the litigation privilege.
In RGC Gaslamp, subcontractor Ehmcke Sheet Metal Company (“Ehmcke”) recorded a mechanic’s lien to recoup payment due for sheet metal fabrication and installation done at a luxury hotel project in downtown San Diego. Project owner RGC Gaslamp, LLC (“RGC”) recorded a release bond for the lien. Thereafter, Ehmcke recorded three successive mechanic’s liens identical to the first, prompting RGC to sue it for quiet title, slander of title, and declaratory and injunctive relief. After retaining California counsel, Ehmcke then released its liens and advised it did not intend to record any more. Ehmcke then filed a special motion to strike under the anti-SLAPP statute (Code Civ. Proc. § 425.16.) which was granted.
Reprinted courtesy of
Stephen M. Tye, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Tye may be contacted at stye@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Employee Handbooks—Your First Line of Defense
April 15, 2015 —
Craig Martin – Construction Contractor AdvisorThis spring has been busy with questions about employee handbooks. Perhaps it is because the NLRB just issued a directive on the legality of various clauses usually contained in handbooks. Or perhaps it’s because employers, including construction companies, are realizing the importance that handbooks play in defending against claims of harassment.
Employee Handbooks Are Important
Employee handbooks are an employer’s first line of defense in claims of harassment. A key provision to any employee handbook is an anti-harassment provision that includes:
- A definition of harassment;
- The process to complain about harassment;
- A commitment to investigate all claims of harassment; and
- An assurance that no one will be retaliated against for reporting harassment.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
EPA Announces Decision to Retain Current Position on RCRA Regulation of Oil and Gas Production Wastes
June 03, 2019 —
Anthony B. Cavender - Gravel2GavelAfter much study, EPA has decided against changing its current RCRA Subtitle D rules affecting the state regulation of oil and gas exploration & production waste. Since 1988, EPA has determined that most such wastes should be regulated as only non-hazardous wastes subject to RCRA Subtitle D, and not the more onerous hazardous waste provisions of RCRA Subtitle C. (See the Regulatory Determination of Oil and Gas and Geothermal Exploration, Development and Production Wastes, 53 FR 25,446 (July 6,1988).)
As a result, under the Subtitle D rules, the primary regulators of such waste are state regulatory agencies, which follow the state plan non-hazardous waste guidelines developed by EPA. This regulatory disposition has proven to be fairly controversial, and it was recently challenged in a lawsuit filed in the U.S. District Court for the District of Columbia: Environmental Integrity Project, et al. v. McCarthy. To settle this lawsuit, EPA and the plaintiffs entered into a consent decree by which EPA was to make certain determinations about the future of the program after conducting an appropriate study. That study, Management of Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action, has been completed, and it concludes, after a fairly comprehensive review of these state regulatory programs, that “revisions to the federal regulations for the management of E&P wastes under Subtitle D of RCRA (40 CFR Part 257) are not necessary at this time.” In a statement released on April 23, 2019, EPA accepted these findings and promised that it would continue to work with states and other stakeholders to identify areas for improvement and to address emerging issues to ensure that exploration, development and production wastes “continue to be managed in a manner that is protective of human health and the environment.”
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Important New Reporting Requirement for Some Construction Defect Settlements
April 17, 2019 —
Ian Williamson - Gordon & Rees Construction Law BlogIn response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22.
What types of Projects: This requirement applies only if all of the following apply:
A) Residential
B) Multi-Family; and
C) Rental property
Limitations on Claims – The reporting requirement only applies if all of the following are true:
A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor;
B) The claim is for a structural defect;
C) The total claim is valued at $1 million (not including investigation costs);
D) SB800 does not apply;
E) The action was filed after January 1, 2019; and
F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).
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Ian Williamson, Gordon & ReesMr. Williamson may be contacted at
igwilliamson@grsm.com
TxDOT, Flatiron/Dragados Mostly Resolve Bridge Design Dispute
March 13, 2023 —
James Leggate - Engineering News-RecordThe Texas Dept. of Transportation and contractor Flatiron/Dragados LLC have “completely satisfied”
four of the five main design safety concerns the state agency raised over the under-construction new Harbor Bridge in Corpus Christi, officials say.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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