Wildfire Threats Make Utilities Uninsurable in US West
August 12, 2024 —
Mark Chediak - BloombergTrinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat.
Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers.
The utility’s exposure comes as wildfires are already flaring up across the US West in what could be a dangerous and prolonged fire season.
“If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million.
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Mark Chediak, Bloomberg
Real Estate & Construction News Roundup (08/08/23) – Buy and Sell With AI, Urban Real Estate Demand and Increasing Energy Costs
September 18, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at AI’s ability to buy and sell real estate, good news from the Labor Department for federally contracted construction workers, the continued promise of proptech, and more!
- With economic hardships for urban commercial real estate, the suburbs may be where the next opportunities lie. (Larry Goodman, Forbes)
- Being able to better meet tenant needs and alleviating the redundant, time-consuming tasks continue to drive interest in, and use of, proptech in the real estate sector. (Kerri Davis, Forbes)
- Imagine using AI to determine which real estate properties to buy and sell. A former real-estate analyst has built a tool for this exact task. (Kelsey Neubauer, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
United States Supreme Court Backtracks on Recent Trajectory Away from Assertions of General Jurisdiction in Mallory v. Norfolk Southern
August 01, 2023 —
Charles S. Anderson - Lewis BrisboisWashington, D.C. (June 28, 2023) – On June 27, 2023, the U.S. Supreme Court issued a sharply divided opinion that appears to backtrack on the Court’s steady trajectory away from assertions of general jurisdiction in recent years, e.g. Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011), Daimler AG v. Bauman, 134 S. Ct. 746 (2014), BNSF Railway Co. v. Tyrrell, 2017, 137 S. Ct. 1549 (2017). Relying on a case from 1917, Pennsylvania Fire Ins. Co. of Philadelphia v. Gold Issue Mining & Milling Co., 243 U. S. 93 (1917), Justice Gorsuch, writing on behalf of the plurality, (Justices Gorsuch, Thomas, Sotomayor, and Jackson) (Justice Alito concurring) found that Norfolk Southern “consented” to jurisdiction in Mallory via 42 Pa. Cons. Stat. §5301(a)(2)(i),(b) by registering to do business in Pennsylvania. This statute, 42 Pa. Cons. Stat. §5301, specifically permits jurisdiction over a corporation “incorporat[ed] under or qualifi[ed]as a foreign corporation under the laws of this Commonwealth … for any cause of action that may asserted against him, whether or not arising from acts enumerated in this section.”
In Pennsylvania Fire, the U.S. Supreme Court addressed the Due Process Clause of the U.S. Constitution in connection with a Missouri law that required an out-of-state insurance company desiring to transact any business in the state to file paperwork agreeing to (1) appoint a state official to serve as the company’s agent for service of process and (2) accept service on that official as valid in any suit. After more than a decade of complying with the law, Pennsylvania Fire was served with process and argued that the Missouri law violated due process. The Court unanimously found that there was “no doubt” that Pennsylvania Fire could be sued in Missouri because it had agreed to accept service of process in Missouri on any suit as a condition of doing business there.
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Charles S. Anderson, Lewis BrisboisMr. Anderson may be contacted at
Charles.Anderson@lewisbrisbois.com
Precast Standards' Work Under Way as Brittle Fracture Warnings Aired
December 22, 2019 —
Nadine M. Post - Engineering News-RecordThe American Concrete Institute is gearing up to develop ACI’s first code requirements specifically for precast concrete. The recent announcement of the initiative comes on the heels of an article in the September issue of ACI’s monthly magazine, Concrete International, that sounds the alarm about the potential for brittle failures of precast, prestressed-concrete double-T parking decks, with flanges reinforced with a non-code-compliant polymer-coated carbon-fiber grid product, called C-Grid.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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More Thoughts on “Green” (the Practice, not the Color) Building
February 01, 2021 —
Christopher G. Hill - Construction Law MusingsIt has been a while since I “mused” on the green building landscape. While I am a LEED AP and have presented on green (read “sustainable”) building in the past, I am not totally sold on LEED as the be all end all in sustainable construction (the USGBC is a private rating organization that, like the rest of us, is imperfect). I’ve also discussed, both here and elsewhere, the potential risks that come with any new(ish) building process.
A recent post by my fellow construction attorney Matt Bouchard (@mattbouchardesq) piqued my interest and started me thinking yet again. Matt’s recent post, entitled Is the U.S. Green Building Council Becoming a Not-So-Jolly Green Giant? outlines recent developments in the sustainable building world (remember “green” is not a specification, but a color), and some of the debate out there among those in the know. From a great infographic on the Top 10 LEED states (Virginia is 3rd) to some sniping from the USGBC (read the LEED folks) toward the GBI (Green Globes) to the fact that LEED is losing some traction as the primary governmental green building certification platform, Matt’s post is worth a read.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Ahlers & Cressman Presents a Brief History of Liens
August 20, 2014 —
Beverley BevenFlorez-CDJ STAFFBrad Westmoreland on Ahlers & Cressman PLLC’s blog, presented the history of liens in the U.S., going back to 1789. In fact, the lien was created in response to the need of swift and extensive construction in Washington D.C.
“Although it had an abundance of land at the time, America was short on labor and capital,” Westmoreland wrote. “Knowing the state of things, builders were hesitant to provide labor and materials without guarantees that owners would be able to pay.”
According to the Ahlers & Cressman PLLC blog, Thomas Jefferson solved the issue by urging “the Legislature of Maryland to pass a law giving builders ‘a lien upon newly created values of [their] labors.’ The new law would provide builders with the assurance that contracts would not result in a total loss should the owners fail to pay.”
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Hawaii Federal District Court Remands Coverage Dispute
June 15, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAccepting the insured's amended complaint, the federal district court of Hawaii remanded the coverage action to state court. Hale v. Lloyd's, London, 2020 U.S. Dist. LEXIS 9061 (D. Haw. Jan. 17, 2020).
Hale purchased a policy for his home in Hilo, Hawaii, from Defendant Pyramid Insurance Centre. The policy was memorialized by a Lloyd's Certificate issued by Defendant Lloyd's. On September 19, 2017, Hale entered Chapter 7 Bankruptcy. Included in the bankruptcy proceeding was Hale's home and a secured home mortgage loan now owned by Defendant Specialized Loan Servicing, LLC. The Bankruptcy Court issued a discharge order on January 18, 2018.
On May 9, 2018, Hale's home was destroyed, being covered with lava from the Kilauea volcano eruption. Hale filed a claim with Lloyd's based upon the loss of his home. The claim was denied. Subsequently, however, Lloyd's issued a check for the full amount of the policy. Both Hale and Specialized Loan were listed as payees on the check.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Rejection’s a Bear- Particularly in Construction
December 23, 2024 —
Christopher G. Hill - Construction Law MusingsAs I read through this week’s cases published in Virginia Lawyers Weekly, I came across a case posing an interesting question. The question is, “If your bid is rejected along with everyone else’s, can you complain?” The short answer set out by the Rockingham County, Virginia Circuit Court is “No.” In the case of General Excavation v. City of Harrisonburg the Court looked at the Virginia Public Procurement Act’s bid protest provisions in Va. Code 2.2-4360 and 2.2-4364(C) in the context of General Excavation’s protest of the City’s failure to award it (or anyone else for that matter) the contract on which it was the low bidder. The controlling section of the statute allows a challenge to the award or proposed award of a contract.
In defending the action, the City of Harrisonburg argued that, because the Procurement Act waived some of the city’s sovereign immunity, it must be read strictly. The city further argued (somewhat ironically) that, because no award of the contract was given or even proposed, General Excavation could not bring suit because it would not be challenging the “proposed award or award” of a contract. Not surprisingly, the Rockingham County court held with the City and strictly construed the statute against General Excavation in finding that General Excavation did not have the standing necessary to bring suit under the statute.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com