Partner Jason Taylor and Senior Associate Danielle Kegley Successful in Appeal of Summary Disposition on Priority of Coverage Dispute in the Michigan Court of Appeals
December 11, 2023 —
Jason Taylor & Danielle K. Kegley - Traub LiebermanIn this appeal brought before the Michigan Court of Appeals, the appellate court ruled in favor of Traub Lieberman’s insurance carrier client (the “Carrier” or “Client”), affirming an award of summary disposition in favor of the Carrier in a coverage lawsuit. The coverage lawsuit involved a priority dispute between the Carrier and another insurer over which company’s policy had responsibility to cover the defense of their mutual insured, a heating and cooling contractor (the “Insured”) in an underlying lawsuit alleging carbon monoxide poisoning. The Carrier issued a contractor’s pollution liability policy and the other insurer issued a commercial general liability policy to the Insurer. Both the Carrier and the other insurer filed cross-motions for summary disposition in the trial court on the priority of coverage issue. The trial court granted the Client’s motion, holding that the CGL carrier was the primary insurer based on the language in the policies’ “other insurance” clauses. The trial court rejected the CGL carrier’s argument to apply the “total policy insuring intent” or “closest to the risk” tests—tests which Michigan courts have not adopted. Specifically, the court rejected the CGL carrier’s argument that the Client’s contractor’s pollution liability policy was more specifically tailored to the loss in the underlying lawsuit. The trial court also rejected CGL carrier’s alternative argument that the “other insurance” clauses in the policies were irreconcilable, requiring a pro rata allocation based on the respective limits of the policies.
Reprinted courtesy of
Jason Taylor, Traub Lieberman and
Danielle K. Kegley, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com
Ms. Kegley may be contacted at dkegley@tlsslaw.com
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N.J. Governor Fires Staff at Authority Roiled by Patronage Hires
August 20, 2019 —
Elise Young, BloombergNew Jersey Governor Phil Murphy’s administration fired 30 employees of a state authority that finances local school construction after an independent review found that his former appointee stacked it with friends, family and political contacts who were unqualified for their jobs.
All but three of those dismissed Tuesday from the Schools Development Authority had been hired by Lizette Delgado-Polanco, the former chief executive officer who resigned in April amid media scrutiny of her oversight. A review by an outside law firm faulted the agency for “patronage-type hires” that undermined its work.
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Elise Young - Bloomberg
Federal Court Asks South Dakota Supreme Court to Decide Whether Injunction Costs Are “Damages,” Adopts Restatement’s Position on Providing “Inadequate” Defense
August 13, 2019 —
Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLPDo costs associated with complying with an injunction constitute covered “damages?” The U.S. District Court for the District of South Dakota recently certified that question to the South Dakota Supreme Court, in Sapienza v. Liberty Mutual Fire Insurance Company, No. 3:18-CV-03015-RAL, 2019 U.S. Dist. LEXIS 84973 (D.S.D. May 17, 2019). If the South Dakota Supreme Court takes on the question, it will become one of the few highest state courts to do so.[1] The Sapienza case is also notable because the court adopted § 12 of the Restatement of the Law of Liability Insurance (Restatement) regarding an insurer’s potential liability for providing an “inadequate” defense. In doing so, the Sapienza court joins a growing list of courts to rely upon or cite to the Restatement.
The Sapienza case arose out of an underlying dispute between residential neighbors over the size and location of the Sapienzas’ new house they built in a historic district in Sioux Falls, SD. The newly-built house allegedly prevented the neighbors from using their fireplace, blocked natural light the neighbors previously enjoyed, and decreased the value of the neighbors’ house. The neighbors sought a permanent injunction requiring the Sapienzas to modify or relocate the house. The Sapienzas’ homeowners’ insurer provided them with defense counsel, but the insurer instructed the Sapienzas that it would not cover any costs associated with an injunction as such costs did not constitute covered “damages.”
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Schulman may be contacted at carrollt@whiteandwilliams.com
Mr. Anderson may be contacted at misciosciaa@whiteandwilliams.com
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Climate Disasters Are an Affordable Housing Problem
October 01, 2024 —
Juan Pablo Garnham & Arjuna Heim - BloombergWhen Maui was devastated by wildfires in August 2023, some residents were initially fortunate. The neighborhood of Makawao, for example, was spared the worst effects of the fire that engulfed Lahaina, 35 miles to the west.
Recently, though, we met a woman in that neighborhood who faces a different kind of threat: Her landlord has now demanded that she pay double her rent or face eviction. As housing advocates in the region, we’ve heard stories like this repeatedly, as residents report an acute fear of displacement and homelessness.
A year after the fires killed more than 100 people, displaced 12,000 and disrupted the economy of the island, the disaster lingers for many in Maui and Hawai'i. Rents across the island have increased sharply, offering a cautionary tale for the rest of the US about how climate change, a housing crisis and the lack of adequate public policies can multiply the suffering of a community already in pain.
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Bloomberg
Partner Bradley T. Guldalian Secures Summary Judgment Win for National Hotel Chain
August 26, 2019 —
Bradley T. Guldalian - Traub LiebermanOn June 26, 2019, Traub Lieberman Straus & Shrewsberry LLP Partner Bradley T. Guldalian secured summary judgment on behalf of a national hotel chain in a slip and fall accident filed in Osceola County Circuit Court in Kissimmee, Florida. The underlying loss occurred when the Plaintiff slipped and fell in a puddle of water allegedly existing in the hotel’s laundry room and suffered a partial thickness rotator cuff tear involving the distal infraspinatus tendon for which he underwent surgery and incurred over $70,000 in medical bills. The Plaintiff filed a premises liability action against the hotel claiming the hotel had failed to maintain its premises in a reasonably safe condition proximately causing the Plaintiff’s fall and resulting injuries.
After discovery closed, Mr. Guldalian filed a motion for summary judgment on behalf of the hotel arguing that to prevail in a negligence claim involving a “transitory foreign substance”, such as water on a floor, an injured party must plead and prove pursuant to Florida Statute 768.0755 that the business establishment had actual or constructive knowledge of the dangerous condition and should have taken action to remedy it prior to the time of the alleged fall. Constructive knowledge may be proven by circumstantial evidence showing that (1) the dangerous condition existed for such a length of time that, in the exercise of ordinary care, the business establishment should have known of the condition or (2) that the condition occurred with such regularity that it was foreseeable that the condition would be present on the day the injury occurred.
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Bradley T. Guldalian, Traub LiebermanMr. Guldalian may be contacted at
bguldalian@tlsslaw.com
Texas Federal Court Upholds Professional Services Exclusion to Preclude Duty to Defend
March 16, 2020 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogIn Project Surveillance, Inc. v. The Travelers Indemnity Company, No. 4:19-CV-03324, 2020 WL 292247 (S.D. Tex. Jan. 21, 2020), a Texas federal court held that a professional services exclusion in a commercial general liability policy precluded Travelers’ duty to defend its insured.
The underlying lawsuit was a wrongful death action brought by the family of a worker killed on a construction site. Project Surveillance was present at the construction site “to provide safety supervision or other services.” The underlying lawsuit alleged that Project Surveillance negligently failed to inspect or adequately inspect the project and failed to warn or adequately warn the decedent of a dangerous condition. The underlying lawsuit also alleged that Project Surveillance was negligent in failing to stop work.
At the time of the incident, Project Surveillance had commercial general liability insurance through Travelers and professional liability insurance through RLI. RLI agreed to defend Project Surveillance in the underlying lawsuit. Travelers, however, denied owing a duty to defend or indemnify based on an exclusion for “bodily injury” arising out of the rendering or failure to render any “professional service.” The Traveler policy defined the term “professional services” to mean any service requiring specialized skill or training, including “failure to prepare [. . .] any warning,” “supervision,” “inspection,” “control,” “surveying activity or service,” “job site safety,” “construction administration,” and “monitoring [. . .] necessary to perform and of [those] services.”
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
Pandemic-Related Construction Materials Pricing Poses Challenges in Construction Lawsuits
September 20, 2021 —
Nick Stewart - Construction ExecutiveDuring the global pandemic the construction industry saw unprecedented inflation in the cost of building supplies as a result of a myriad of issues. On May 7, 2021, lumber prices hit a record high at $1,670.50 per thousand board feet. This was more than six times their pandemic low in April 2020. This significant price spike was related to closure of sawmills during the height of the pandemic, low supply, soaring demand to expand existing homes or purchase new construction, the western U.S. wildfires and tariffs.
More recently, lumber prices have fallen but they are still up nearly 100% from spring 2020. Some experts believe that the recent wildfires in the western United States and upcoming hurricane season will cause prices to jump back up in the upcoming months.
Additionally, since March 2020, steel prices are up roughly 200%. The increase in steel prices is a result of many of the same factors causing lumber pricing spikes. Many steel mills shut down production or drastically reduced production during the early days of the pandemic expecting a deep recession and/or to comply with restrictive government mandates. Despite these industry expectations, demand for steel -elated products like grills and home appliances soared. These household demands for steel-based products impacted the price of steel for construction projects. Prior to the pandemic, hot-rolled steel traded between $500 and 800 per ton but hit an all-time high of $1,825 per ton in early July 2021.
Reprinted courtesy of
Nick Stewart, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Stewart may be contacted at
nstewart@turnerpadget.com
Chambers USA Names Peckar & Abramson to Band 1 Level in Construction Law; 29 P&A Lawyers Recognized as Leading Attorneys; Six Regions and Government Contracts Practice Recognized
July 08, 2024 —
Peckar & Abramson, P.C.Peckar & Abramson, P.C. (P&A) is pleased to announce that Chambers USA has recognized the firm at the Band 1 level nationwide in Construction Law. P&A stands alone in being named a Band 1 firm in Construction Law nationally and has been named in the position every year since Chambers USA began awarding the recognition. The firm was also recognized nationally in Government Contracts: Highly Regarded.
P&A’s offices in New York, New Jersey, Florida, and Texas were ranked Band 1 in Construction Law, and the Firm’s California, Illinois, and Washington, DC practices were also highly rated. Additionally, 29 of P&A’s construction lawyers were named leading construction lawyers in their respective jurisdictions – more than any other construction law practice in the country.
As demonstrated by its consistent Chambers USA Rankings, Peckar & Abramson has earned a national reputation for exceptional legal advocacy, representing construction industry members domestically and internationally.
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Peckar & Abramson, P.C.