How the California and Maui Wildfires Will Affect Future Construction Projects
October 30, 2023 —
Susan Doering - Construction ExecutiveJust like any kind of fire, wildfires are caused by the presence of fuel and a spark. In the case of the
2017 fires in the wine country of California, along with the state's 2018
Camp Fire, the fuel was dry leaf litter, branches and downed trees. And the spark, in some cases, resulted from electric utility lines and, in other cases, due to contractor’s work.
More recently, this summer's Maui fires have taken hundreds of lives—deceased and missing—and burned more than 2,500 acres. Lahaina’s historic sites cannot be replaced, and estimates of the rebuild costs are near $5 billion. In Hawaii, the fuel was the same as in California: dried forest debris. It is alleged that the spark was from a powerline downed by extreme winds from Hurricane Dora. While sparks were present, it is the increased volume of fuel that has been the true source of the disastrous recent wildfires.
The increased presence of fuel is the result of recent changes in forestry-management practices, coupled with accelerated climatic shifts in recent years toward hotter, drier weather from 2011 to 2020 in California and 2022 to 2023 in Maui, increasing both frequency and severity.
Reprinted courtesy of
Susan Doering, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Trump Order Waives Project Environment Rules to Push COVID-19 Recovery
June 15, 2020 —
Debra K. Rubin, Mary B. Powers & Jim Parsons - Engineering News-RecordCiting the "national emergency" spurred by the COVID-19 pandemic's economic hit, President Donald Trump has signed an executive order that directs federal agencies to bypass environmental laws to expedite infrastructure projects, including those on federal lands, as a stimulus.
Reprinted courtesy of Engineering News-Record attorneys
Debra K. Rubin,
Mary B. Powers and
Jim Parsons
Ms. Rubin may be contacted at rubind@enr.com
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Bert Hummel Appointed Vice Chair of State Bar of Georgia Bench & Bar Committee
October 24, 2021 —
Bert Hummel - Lewis BrisboisAtlanta, Ga. (October 4, 2021) – Atlanta Partner Bert Hummel was recently named Vice Chair of the State Bar of Georgia's Bench & Bar Committee for the 2021-2022 year.
The Bench & Bar Committee identifies and facilitates solutions to issues of mutual interest between State judges and Georgia lawyers for the benefit of the bench, the bar and the public. It also oversees the annual Justice Thomas O. Marshall Professionalism Award, which honors one lawyer and one judge who have demonstrated the highest professional conduct and paramount reputation for professionalism.
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Bert Hummel, Lewis BrisboisMr. Hummel may be contacted at
Bert.Hummel@lewisbrisbois.com
Why You Make A Better Wall Than A Window: Why Policyholders Can Rest Assured That Insurers Should Pay Legal Bills for Claims with Potential Coverage
March 14, 2018 —
Alan Packer and Graham Mills - Newmeyer & Dillion, LLPUnfortunately, policyholders, such as manufacturers and contractors, routinely face the unnecessary challenge of how to access all of the insurance coverage which they have purchased. Frequently, the most pressing need is to get the insurance company to pay the legal bills when the policyholders have been sued. The recent Iowa federal district court opinion in
Pella Corporation v. Liberty Mutual Insurance Company should help a policyholder in a dispute to require its insurance company to pay those legal bills sooner rather than later by highlighting that the duty to defend arises from the potential for coverage, and the insurer may not force the policyholder to prove the damage to obtain a defense.
In
Pella, a window manufacturer purchased several years of insurance coverage from Liberty Mutual. Similar to many companies, Pella had many “layers” of insurance coverage in any given year. These layers collectively function like a tower. The general idea is that each layer provides a certain amount of coverage after the insurance policy below it had paid its money. The Liberty Mutual insurance policies provided excess coverage.
After the
Pella window manufacturer made and sold its windows, it was sued in numerous lawsuits alleging that its windows were defective and that those defective windows caused a wide variety of damage to the structures in which they were installed. The window manufacturer tendered those lawsuits to its insurance companies in its tower of coverage, asking that the insurance companies pay its legal bills incurred in its defense. As to Liberty Mutual, the window manufacturer argued that the Liberty Mutual insurance policies were triggered, and so obligated to reimburse it, if a window was installed during the years that those policies provided coverage or if there was a mere allegation that a window was installed during the years that those policies provided coverage. Liberty Mutual opposed, arguing that the date of installation of the windows was insufficient to trigger the policies, and that the manufacturer was required to demonstrate the date that damage actually occurred to trigger a defense.
The key issue before the
Pella Court in this decision was a simple one: which insurance policies, if any, issued by Liberty Mutual had an obligation to pay the window manufacturer’s legal bills? The answer to that question is critical and financially significant. Getting an insurance company to honor its obligations and start paying the legal bills as soon as possible is very important for a policyholder because of the cost of defending oneself in a lawsuit; often the key reason why an insurance policy is even purchased is to provide the policyholder with the right to call upon the insurance company’s financial resources to defend it should it be sued.
In a ruling that will be welcomed by policyholders, the
Pella Court held that Liberty Mutual’s multiple insurance policies were triggered, and so obligated to pay for the window manufacturer’s defense, if one of two events occurred during the years in which those insurance policies provided coverage: (1) a window was actually installed during a year when the insurance policy provided coverage or (2) the window was alleged to be installed in the year that the insurance policy provided coverage. The Court agreed with the policyholder that once the windows were installed, property damage was alleged and “may
potentially have occurred” from that point on, thus the policies on the risk from that point forward. The practical effect of this ruling meant that Liberty Mutual had to reimburse the window manufacturer for the defense fees and costs that it had paid.
While
Pella was decided under Iowa law, the principles upon which it relied are similar to those applied under California law. Importantly, both California and Iowa law hold that an insurance company must provide a defense in response to a claim that is, or could be, covered by the insurance policy. The mere potential that the claim might be covered is enough for the insurance company to be obligated to pay for policyholder’s legal fees and costs.
Establishing that an insurance company must pay legal fees and costs as soon as possible allows a policyholder to save its own money. Why should a policyholder pay legal bills when it purchased an insurance policy as protection to ensure that it did not have to pay those bills? The answer is that a policyholder should not and, under
Pella, the policyholder does not have to. Rather, the insurance company must start paying for that defense from a very early date. Pella confirms for policyholders the position that their insurance companies should pay legal bills earlier rather than later.
Alan Packer is a partner in the Walnut Creek office for Newmeyer & Dillion, LLP, representing homebuilders, property owners, and business clients on a broad range of legal matters, including risk management, insurance matters, wrap consultation and documentation, efforts to counter solicitation of homeowners, subcontract documentation, as well as complex litigation matters. Alan can be reached at alan.packer@ndlf.com.
Graham Mills is a partner in the Walnut Creek offce of Newmeyer & Dillion, LLP, representing clients in the area of complex insurance law with an emphasis on insurance recovery, construction litigation, real estate litigation, and business litigation. He regularly examines and analyzes a wide variety of insurance policies. Graham can be reached at graham.mills@ndlf.com.
ABOUT NEWMEYER & DILLION LLP
For more than 30 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 business, employment, real estate, construction and insurance law, 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.ndlf.com.
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How Fort Lauderdale Recovered a Phished $1.2M Police HQ Project Payment
May 13, 2024 —
Richard Korman - Engineering News-RecordJan. 25th was a happy day for the city of Fort Lauderdale, Fla., as Mayor Dean Trentalis and Police Chief William Schultz announced in a press conference the recovery of a $1.162-million electronic payment meant for Moss Construction that had been stolen in September via an email phishing fraud.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Board of Directors Guidance When Addressing Emergency Circumstances Occasioned by the COVID-19 Pandemic
May 11, 2020 —
Marc Casarino, Lori Smith & Gwenn Barney - White and Williams LLPThe COVID-19 pandemic has sent massive shockwaves throughout the global economy. This crises requires business leaders to confront a host of deleterious effects on an emergency basis – the likes of which many companies have never experienced. Boards of directors must remain cognizant of their oversight responsibilities in these trying times. This post offers guidance to directors of Delaware companies for addressing emergency circumstances occasioned by the COVID-19 pandemic.
Board Oversight – Lessons from Marchand V. Barnhill
Directors should consider the lessons learned from the recent Delaware Supreme Court case Marchand v. Barnhill, a ruling we addressed in a previous blog post, when considering board oversight during the COVID-19 pandemic. Marchand centered on a lawsuit brought by shareholders in an ice cream manufacturing company against the company’s board of directors. The shareholders claimed that the directors violated their duty of loyalty[1] to the company when they failed to provide sufficient oversight and compliance-monitoring during a listeria outbreak that led the company to recall all products, temporarily cease product production at all plants and lay off more than one-third of the company’s workforce.
Reprinted courtesy of White and Williams LLP attorneys
Marc Casarino,
Lori Smith and
Gwenn Barney
Mr. Casarino may be contacted at casarinom@whiteandwilliams.com
Ms. Smith may be contacted at smithl@whiteandwilliams.com
Ms. Barney may be contacted at Barneyg@whiteandwilliams.com
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Congratulations Devin Brunson on His Promotion to Partner!
April 26, 2021 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is very proud to announce Devin Brunson has been promoted to the position of partner with the firm!
Mr. Brunson came to BWB&O from another civil litigation firm and helped start the Denver, Colorado office along with partners Lucian Greco, John Toohey and Peter Brown. He has taken on a significant leadership role within the firm over the past several years and has been integral in growing the office to its current footprint.
He is licensed to practice law in Colorado, District of Colorado, and in the U.S. District Court. His practice is focused in the areas of civil and business litigation, construction litigation, and employment law. Mr. Brunson has a diverse practice background that includes complex civil litigation and intellectual property disputes and has had the privilege of representing business owners, contractors, corporate executives, and professional athletes during the course of his career.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Ritzy NYC Tower Developer Says Residents’ Lawsuit ‘Ill-Advised’
January 17, 2022 —
Chris Dolmetsch - BloombergThe developers of a Manhattan skyscraper that has become one of New York City’s toniest residences said the condo board is trying to squeeze money out of them with a lawsuit that claims bogus design flaws.
The board is seeking $250 million from builders of the 1,396-foot residential tower at 432 Park Avenue that opened in 2015 on the so-called Billionaire’s Row. Their suit alleges the company that developers CIM Group and Macklowe Properties formed to build the structure failed to take into account its unusual height, leading to flooding, noise, vibrations and elevators that are prone to malfunctions.
In a response to the suit filed Wednesday, the company called the building “a treasure” and the suit was “ill-advised.” While the structure needed to be “fine-tuned” when residents started to move in, the board stopped the builders from accessing the facilities and finishing the job “while manufacturing an ever-increasing list of demands,” most of which were not required, according to court filings.
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Chris Dolmetsch, Bloomberg
