Restoring the USS Alabama: Surety Lessons From an 80-Year-Old Battleship
November 13, 2023 —
Richard Sghiatti - Construction ExecutiveIt’s not every day that a construction company gets to renovate an 80-year-old battleship. Yet that’s exactly where Youngblood-Barrett Construction & Engineering workers found themselves when they began restoring the main deck of the USS Alabama, a storied World War II battleship.
The USS Alabama has a remarkable past. One of four South Dakota–class battleships, the “Mighty A” was commissioned in 1942. It deployed first to the Atlantic and then to the Pacific, where it earned nine battle stars for meritorious service. At 680 feet long and 108 feet wide, the “Heroine of the Pacific” had a wartime crew of 2,500 men.
By 1962, though, the Navy was ready to scrap it. That’s when the state of Alabama decided to acquire the ship and preserve it as a museum. The USS Alabama was moved to Mobile and opened to the public in January 1965.
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Richard Sghiatti, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court
July 09, 2019 —
Andres Avila - Saxe Doernberger & Vita, P.C.Tennessee’s Supreme Court recently held that an insurer may not withhold repair labor costs as depreciation when the policy definition of actual cash value is found to be ambiguous. Tennessee joins other states like California and Vermont that prohibit the depreciation of repair labor costs in property policies.
In Lammert v. Auto-Owners (Mut.) Ins. Co., No. M201702546SCR23CV, 2019 WL 1592687, the Lammerts and other insureds sought property damage coverage from Auto Owners Insurance for hail damage to a home and other structures they owned in Tennessee.
Auto-Owners Insurance agreed to settle the claims on an actual cash value basis (ACV), which is a method of establishing the value of insured property that must be replaced to determine the indemnity by the insurer. There are multiple methods to calculate ACV. Auto-Owners decided to use the ACV calculation method of deducting depreciation from the cost to repair or replace the damaged property. Depreciation is the decline in value of a property since it was new because of use, age or wear. The rationale behind this method is that an insured should not make a profit by recovering the cost of, for example, a new roof for a damaged roof that was ten years old, and thus depreciation is deducted from the indemnity.
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Andres Avila, Saxe Doernberger & Vita, P.C.Mr. Avila may be contacted at
ara@sdvlaw.com
Higgins, Hopkins, McLain & Roswell, LLC Announces Leadership Changes and New Vision for Growth
January 21, 2025 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCHiggins, Hopkins, McLain & Roswell, LLC (“HHMR”) is excited to announce several significant developments as the firm transitions into an exciting new chapter of growth and innovation. Sheri Roswell, one of the firm’s founding members, is stepping out of ownership to serve as “Of Counsel,” continuing her vital work with clients and strengthening relationships that have been the cornerstone of HHMR’s success. Her tireless contributions since the firm’s inception have helped establish HHMR as a leader in Colorado’s construction law landscape.
“Sheri has been a pillar of HHMR since day one. Her commitment to our clients and her unwavering dedication to the firm’s success have left an indelible mark. We are excited for her to continue contributing her expertise and leadership in this new capacity,” said David McLain at the firm’s recent holiday celebration.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Florida Court Gives Parties Assigned a Subrogation Claim a Math Lesson
August 04, 2021 —
Lian Skaf - The Subrogation StrategistAlthough the focus of most subrogation cases is usually on proving liability, determining the appropriate measure of damages is just as important. Sometimes turning on a nuanced argument for recoverability, an adverse holding can significantly boost or reduce the total damages in a case. The Court of Appeal of Florida, Fourth District (Court) recently decided such an issue in a case involving subrogation, holding that the defendants owed much more than they originally anticipated.
In Five Solas v. Ram Realty Servs., No. 4D19-2211 2021, 2021 Fla. App. LEXIS 7546, the Court reviewed the appropriate setoff in damages that the defendants were entitled to when measuring the recoverable damages. The Court reversed the lower court’s holding, which held that the defendants were entitled to a setoff that limited the jury’s award to $104,481.75. Instead the Court held that the defendants were only entitled to a setoff equal to the excess recovery over replacement cost.
The case involves, among other things, property damage sustained by building owner Five Solas (Owner) and its lessee William Price, P.A. from a collapsed wall originating from the property of the defendants, Ram Realty Services, LLC and Sodix Fern, LLC d/b/a Alexander Lofts (collectively referred to as Defendants). Owner’s carrier, Foremost Insurance Company (Foremost), paid out its policy limit of $430,518.25 to Owner for damage to the building. Owner then pursued its claim against the tortfeasors for the remaining damages not paid by its carrier.[1] Foremost also pursued a subrogation claim, but settled its subrogation claim with Defendants, assigning its subrogation rights to Defendants.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Hong Kong Buyers Queue for New Homes After Prices Plunge
July 09, 2014 —
Michelle Yun – BloombergOn a Saturday morning in mid-June, thousands wait, crammed into Hong Kong’s Fortune Metropolis mall, across Victoria Harbor from the main business district, their eyes locked on large elevated screens. Cheers erupt when numbers flash, indicating the lucky ticket holders in the crowd.
They have paid HK$150,000 ($19,354) to enter a lottery that prioritizes buyers of apartments at City Point, a seven-tower development that billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. (1) is building. More than 5,000 homebuyer-hopefuls are vying for 442 units, or about 11 for every home that went on sale the weekend of June 14.
Housing sales in Hong Kong are rising after government efforts to cool soaring prices led transactions to plunge last year to the lowest since at least 2002. A drop in mortgage rates and discounts from builders are luring back buyers of new homes after their price fell as much as 20 percent since October.
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Michelle Yun, BloombergMs. Yun may be contacted at
myun11@bloomberg.net
That’s What I have Insurance For, Right?
December 31, 2014 —
Craig Martin – Construction Contractor AdvisorAh, the age old question, What does my insurance really cover? A federal court in Georgia recently weighed in on this issue in Standard Contractors, Inc. v. National Trust Insurance Company, and ruled that a contractor’s commercial general liability insurer did not have to pay for damage caused by a subcontractor.
Standard Contractors was hired to renovate the pool on an army base. Standard hired a subcontractor to for design and installation work. The subcontractor’s work was subpar in that the subcontractor omitted a number of parts, installed the wrong parts, and caused more than $400,000 in damage to the pool. Standard submitted a claim to its insurer seeking coverage for the loss under its commercial general liability policy.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
The Secret to Success Is Doing Things a Little Bit Differently
November 16, 2020 —
Charlie Kimmel - Construction ExecutiveThroughout the 1960s and 1970s, Rick Barry made his mark on the world of college and professional basketball. He was a skilled small forward who averaged 37.4 points per game during his senior year at the University of Miami, and he was the second overall pick in the 1965 NBA draft. But he’s best remembered as a prolific free-throw shooter: he led the NBA in free-throw percentage for several consecutive years. When he retired in 1980, his free-throw percentage (.900) was the highest in NBA history.
So what was the secret to his success? He did things a little bit differently. While the vast majority of basketball players shoot overhand free throws, Barry was famous for his unorthodox underhanded shots. This technique was not only incredibly effective, but it also set him apart as a player and contributed to his popularity.
Construction companies can learn a lot from Barry’s strategy of doing things a little bit differently to achieve success. Most companies don’t need to worry about their employees’ free-throw techniques. But all of them need to set themselves apart from their competition and establish strong reputations in today’s highly competitive market.
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Charlie Kimmel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Admissibility of Expert Opinions in Insurance Bad Faith Trials
November 04, 2019 —
David M. McLain – Colorado Construction LitigationIn 2010, Hansen Construction was sued for construction defects and was defended by three separate insurance carriers pursuant to various primary CGL insurance policies.[i] One of Hansen’s primary carriers, Maxum Indemnity Company, issued two primary policies, one from 2006-2007 and one from 2007-2008. Everest National Insurance Company issued a single excess liability policy for the 2007-2008 policy year, and which was to drop down and provide additional coverage should the 2007-2008 Maxum policy become exhausted. In November 2010, Maxum denied coverage under its 2007-2008 primarily policy but agreed to defend under the 2006-2007 primarily policy. When Maxum denied coverage under its 2007-2008 primary policy, Everest National Insurance denied under its excess liability policy.
In 2016, pursuant to a settlement agreement between Hansen Construction and Maxum, Maxum retroactively reallocated funds it owed to Hansen Construction from the 2006-2007 Maxum primary policy to the 2007-2008 Maxum primary policy, which became exhausted by the payment. Thereafter, Hansen Construction demanded coverage from Everest National, which continued to deny the claim. Hansen Construction then sued Everest National for, among other things, bad faith breach of contract.
In the bad faith action, both parties retained experts to testify at trial regarding insurance industry standards of care and whether Everest National’s conduct in handling Hansen Construction’s claim was reasonable. Both parties sought to strike the other’s expert testimony as improper and inadmissible under Federal Rule of Evidence 702.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com