San Diego Appellate Team Prevails in Premises Liability Appeal
December 06, 2021 —
Corinne Bertsche, Jeffry Miller & Tracy Forbath - Lewis BrisboisSan Diego, Calif. (October 28, 2021) - San Diego Appellate Practice Partners Jeffry A. Miller and Corinne C. Bertsche, along with Associate Tracy D. Forbath, recently obtained a win on appeal when California's Court of Appeal for the Second Appellate District, Division Four affirmed the trial court’s grant of a client homeowners association’s motion for summary judgment. In the underlying matter, the plaintiff alleged claims for premises liability and negligence for injuries he sustained when tripping over an uplift of two misaligned adjacent slabs of concrete sidewalk, measuring 1.25 inches and located next to a condominium complex.
The appellate court agreed that the defect in question was a trivial defect as a matter of law, despite the plaintiff’s arguments that there was a triable issue of material fact as to whether the uplift’s dangerousness was exacerbated by the presence of aggravating factors. The appellate court found that the plaintiff’s expert declaration did not support the alleged aggravating factors with admissible evidence, and that the trial court did not abuse its discretion in excluding it.
Reprinted courtesy of
Corinne Bertsche, Lewis Brisbois,
Jeffry Miller, Lewis Brisbois and
Tracy Forbath, Lewis Brisbois
Ms. Bertsche may be contacted at Corinne.Bertsche@lewisbrisbois.com
Mr. Miller may be contacted at Jeff.Miller@lewisbrisbois.com
Ms. Forbath may be contacted at Tracy.Forbath@lewisbrisbois.com
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The End of Eroding Limits Policies in Nevada is Just the Beginning
August 28, 2023 —
Payne & Fears LLPOn June 3, 2023, Nevada Gov. Joe Lombardo signed into law
AB 398 (the Act) which modifies the Nevada insurance code by restricting the types of liability policies that can be offered in the state.
The End of Eroding Limits Policies in Nevada
First, the Act prohibits liability insurers from issuing “eroding limits” or “burning limits” policies. These are insurance policies under which defense costs decrease policy limits. Most professional liability policies are eroding limits policies. As of Oct. 1, 2023, insurers in Nevada may no longer issue or renew any policy where policy limits are eroded by defense costs.
This change may result in higher premiums on these types of policies to compensate for the higher payouts they will now have to provide in Nevada.
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Payne & Fears LLP
Good-To-Know Points Regarding (I) Miller Act Payment Bonds And (Ii) Payment Bond Surety Compelling Arbitration
December 22, 2019 —
David Adelstein - Florida Construction Legal UpdatesEvery now and then I come across an opinion that addresses good-to-know legal issues as a corollary of strategic litigation decisions that are questionable and/or creative. An opinion out of the United States District Court of New Mexico, Rock Roofing, LLC v. Travelers Casualty and Surety Company of America, 2019 WL 4418918 (D. New Mexico 2019), is such an opinion.
In Rock Roofing, an owner hired a contractor to construct apartments. The contractor furnished a payment bond. The contractor, in the performance of its work, hired a roofing subcontractor. A dispute arose under the subcontract and the roofer recorded a construction lien against the project. The contractor, per New Mexico law, obtained a bond to release the roofer’s construction lien from the project (real property). The roofer then filed a lawsuit in federal court against the payment bond surety claiming it is entitled to: (1) collect on the contractor’s Miller Act payment bond (?!?) and (2) foreclose its construction lien against the lien release bond furnished per New Mexico law.
Count I – Miller Act Payment Bond
Claiming the payment bond issued by the contractor is a Miller Act payment bond is a head scratcher. This claim was dismissed with prejudice upon the surety’s motion to dismiss. This was an easy call.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Potential Construction Liabilities Contractors Need to Know
September 21, 2020 —
Manipal Dhariwal - Construction ExecutiveThe outbreak of COVID-19 started in early December 2019, gradually expanding to the other countries of the world. The spread of the pandemic did not just affect the world in terms of health, but also made industries suffer across all verticals—leading to a few unique challenges for construction contractors.
From financial imbalance to trouble retaining cash flow, the circumstances have turned to be completely unfavorable for the contractors that rely on banks for essential surety credits to sustain. To prevent loss of liquidity, the contractors are leaning toward construction accounting software and other technology to keep their accounting data in place and avoid risks with project deliveries.
But still, there are many other factors that must be considered to maintain cash flow for potential credit availability such as debt agreements and lines of credit, which involve financing of equipment and vehicles.
Nevertheless, it is completely the responsibility of the contractors to stick with the guidelines related to the line of credit and debt agreements which in most cases are covenant ratios.
Reprinted courtesy of
Manipal Dhariwal, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Conversations with My Younger Self: 5 Things I Wish I Knew Then
July 24, 2023 —
Steve Swart - The Dispute ResolverI remember the morning I became a construction law attorney. It was on my birthday several years ago when a partner called me into his office and asked me to review the A107 contract form for a large firm client. The assignment gave me a new language to speak and contract provisions that I came slowly to understand.
I quickly moved into construction litigation and would soon learn that a "fragnet" was not the newest social media app but an important part of a delay claim. I read Spearin's biography and learned how to assess recoverable damages for different claims—costs to repair, replacement and betterment, increased financing/carrying costs, and the like.
It took a lot of blood, sweat, and tears to get to where I am now. Echoing Rod Stewart’s sentiment—“I wish that I knew then, what I do now, when I was younger”—here are five tips I’d pass along to the younger me or anyone who is beginning their career as a construction lawyer:
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Steve Swart, Williams MullenMr. Swart may be contacted at
sswart@williamsmullen.com
Ruling Dealing with Constructive Changes, Constructive Suspension, and the Implied Covenant of Good Faith and Fair Dealing
January 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesA dispute pending in the Armed Services Board of Contract Appeals (ASBCA) dealt with interesting legal issues on a motion to dismiss. See Appeals of McCarthy Hitt-Next NGA West JV, ASBCA No. 63571, 2023 WL 9179193 (ASBCA 2023). The dispute involves a contractor passing through subcontractor claims due to impacts caused by the COVID-19 pandemic and the government’s response to the pandemic. More particularly, the claim centers on the premise that the government “failed to work with [the contractor] in good faith to develop a collaborative and cooperative approach to manage and mitigate the impacts and delays arising from the COVID-19 pandemic.” See Appeals of McCarthy Hitt.
The contractor (again, submitting pass through claims from subcontractors) claimed: (a) constructive changes to the contract entitling it to an equitable adjustment under the Changes clause of Federal Acquisition Regulation (F.A.R.) 52.243-4; (b) construction suspensions of the contractor’s work entitling it to an equitable adjustment under the Suspensions of Work clause of F.A.R. 52-242-14; and (c) the government breached the implied covenant of good faith and fair dealing. Each of these legal issues and theories will be discussed below because they are need-to-know legal issues. Keep these legal issues in mind, and the ASBCA’s ruling on the motion to dismiss as its analysis may demonstrate fruitful in other applications.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesA liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured.
With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted).
For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Nevada Provides Independant Counsel When Conflict Arises Between Insurer and Insured
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Nevada Supreme Court, responding to certified questions, determined that an insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and insured. State Farm Mut. Auto. Ins. Co. v. Hansen, 2015 Nev. LEXIS 86 (Nev. Sept. 24, 2015).
The insured struck the vehicle of another driver, Hansen. Hansen sued the insured alleging both negligence and various intentional torts. State Farm agreed to defend under a reservation of rights. The reservation of rights letter reserved the right to deny coverage for liabiltiy resulting from intentional acts and punitive damages.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com