California Superior Court Overrules Insurer's Demurrer on COVID-19 Claim
February 15, 2021 —
Tred R. Eyerly - Insurance Law HawaiiA Superior Court in California overruled the insurer's demurrer to the policy holder's complaint seeking business interruption coverage after government shutdown orders were issued because of the coronavirus pandemic. Goodwill Industries of Orange County, California v. Philadelphia Indemnity Ins. Co., Cal. Superior Ct., Civil No. 30-2020-01169032-CU-IC-CXC (Minute Order Jan. 28,, 2021). The minute order is here [Goodwill Decision].
The insurer demurred on the ground that the insured had not alleged sufficient facts to show "direct physical loss" under the business income, extra expenses and civil authority provisions in the policy because coronavirus and COVID-19 did not physically alter the structure.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Don’t Put Yourself In The Position Of Defending Against An Accord And Satisfaction Defense
October 10, 2022 —
David Adelstein - Florida Construction Legal UpdatesThe doctrine of accord and satisfaction lives and breathes in disputes including construction disputes. Unfortunately, a contractor, in the case discussed below, found out the hard way after it cashed checks that were accompanied with a letter that clearly indicated the checks were final payment. Once those payments were cashed, there was no “buyer’s remorse” that would allow it to still pursue disputed amounts. Remember this the next time you accept and cash a payment that says on the check it is full and final payment OR is accompanied by a letter that makes clear the payment is full and final payment. If you cash it, there is no second bite out of the apple, so to speak. If you are not interested in the payment being full and final payment, return the check. If you are not sure, either return the check or inquire and get that response in writing. Don’t put yourself in the position of defending against an
accord and satisfaction defense.
Even without the doctrine of accord and satisfaction, the contract between the contractor and owner discussed below made clear that contractor’s acceptance of final payment meant that contractor was unconditionally waiving other claims against the owner, further reinforcing that there would be no second bite out of the apple.
The morale:
(1) read the letter that accompanies a check and do NOT cash a check that indicates it is for final payment unless you are prepared to accept that amount; and
(2) read your contract to understand any contractual obligation that kicks-in with the acceptance of final payment.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ohio Supreme Court Holds No Occurence Arises from Subcontractor's Faulty Workmanship
January 09, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Ohio Supreme Court bucked the modern trend by finding that there was no coverage under CGL policy's the subcontractor's exception for faulty workmanship claimed against the insured. Ohio N. Univ. v. Charles Constr. Servs. 2018 Ohio LEXIS 2375 (Ohio Oct. 9, 2018).
The University contracted with Charles Construction Services, Inc. to build a new luxury hotel and conference center on campus. After work was completed, the University discovered extensive water damage from hidden leaks that it believed were caused by the defective work of Charles Construction and its subcontractors. Repairs were made at the cost of $6 million.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Wilke Fleury Celebrates the Addition of Two New Partners
February 18, 2019 —
Wilke FleuryWilke Fleury celebrates the addition of two new partners – Shannon Smith-Crowley and Daniel J. Foster – who complement the firm’s shifting generations of leadership. Shannon and Danny bring unique perspective and excellent capability to Wilke Fleury’s partnership effective January 1, 2019.
Shannon has been a registered lobbyist in California for 20 years. After a career in managed care, she started lobbying with the California Medical Association before founding her own firm, Partners In Advocacy to specialize in medical and reproductive health advocacy. At Wilke Fleury, her areas of practice include health care, women’s equity, life sciences, the biomedical industry, new family formation and emerging technologies in green energy. After a four year tenure with the firm, she has been elevated to the partnership.
Click here to read more about Shannon Smith-Crowley.
Daniel Foster’s litigation practice is composed of matters involving complex construction defect litigation, mechanics liens claims, stop notice actions and Miller Act claims. He represents clients before the Contractors State License Board and handles matters involving breach of warranty, the Song-Beverly Consumer Warranty Act, indemnity agreements and liability insurance coverage.
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Wilke Fleury
How to Protect a Construction-Related Invention
May 10, 2021 —
Patrick Barthet - Construction ExecutiveThey say necessity is mother of invention. That was surely true for Johan Vaaler, who in 1899 decided he was tired of having to sew pages together to keep them organized. Voila, enter the paper clip. This wasn’t the case for Percy Spencer. He was a radar tube designer working at Raytheon who, while working in front of an active radar set, noticed the candy bar in his pocket started to melt. Exploring the phenomenon further, he placed corn kernels in front of the radar and behold, he ended up with the world’s first microwaved popcorn. He patented the microwave oven in 1945.
Whether by necessity or by accident, what should contractors do if they develop a unique tool to accomplish some portion of their work faster, easier or less expensively? How do they protect it from misappropriation by competitors, or by an errant employee? We are all familiar with the fact that in today’s internet-driven market, it has become very easy to reverse engineer and knock off an innovative product.
The best way to safeguard an invention is, of course, to register it with the appropriate government agency:the United States Patent and Trademark Office (USPTO). Generally done with the assistance of a patent lawyer, the process is neither inexpensive or abbreviated. It could cost several thousand dollars and take 12 to 18 months. But, more importantly, this is not sufficient. Inventors must regularly monitor their patents to police possible infringers. Many folks think the USPTO does this, but it does not.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
Court Finds Duty To Defend Environmental Claim, But Defense Limited to $100,000
August 14, 2023 —
Tred R. Eyerly - Insurance Law HawaiiWhile agreeing with the insured there was a duty to defend, the court determined the defense of an environmental claims was limited to $100,000. Casa Nido Partnership v. JAE Kwon, 2023 U.S. Dist. LEXIS 97701 (N.D. Calif. June 5, 2023).
In 1976, Casa Nido purchased the property and remains the current owner to this day. Catherine O'Hanks owned and operated a dry-cleaning facility at the property from 1960 to 1992.
In August 2016, Casa Nido learned of Tetrachloroethylene (PCE) subsurface contamination. Casa Nido stipulated that it did not know, nor had any reason to know, before 2016, of the existence of the subsurface contamination. Casa Nido alleged that due to equipment malfunction or improper usage, there were sudden and accidental spills and equipment overflows of PCE during the 32-year period that defendant O'Hanks operated the dry-cleaning business on the property. Casa Nido spent hundreds of thousands of dollars remediating the environmental damage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Cracking down on Phony Qualifiers
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai in his California Construction Law Blog stated that “California’s Senate Bill 862, and amended Business and Professions Code 7068.1” has given the California Contractors State License Board (CSLB) “additional enforcement authority to crack down on phony qualifiers by allowing the CLSB to take disciplinary action against a qualifier and a licensee if the qualifier is not actively involved in the construction activities of the licensee’s business.”
Murai explained that “[r]enting a qualifier means that you pay an individual who holds a California contractor’s license to act as the Responsible Managing Officer (RMO) or Responsible Managing Employee (RMO) of a construction company when they have no actual involvement in the day-to-day operations of the company.”
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The “Right to Repair” Construction Defects in the Rocky Mountain and Plains Region
October 16, 2018 —
Jean Meyer & Sheri Roswell - Colorado Construction Litigation BlogIn excess of 30 states have enacted tort reform legislation requiring property owners to notify construction professionals of the presence of alleged construction defects prior to the commencement of a lawsuit. These statutes also often permit construction professionals to make an offer of repair within a statutorily defined period of time after receipt of a notice of claim letter. Undoubtedly, the notice-of-claim process has played a meaningful part in bringing construction professionals and claimants to timely resolutions of construction defect concerns in isolated instances.
However, while these statutes are commonly referred to as “right of repair” legislation, their practical effect is often reduced to little more than procedural empty gestures serving as a prelude to litigation. This article will briefly survey the “right to repair” statutes in Colorado, Montana, North Dakota and South Dakota. In Nebraska, New Mexico, Utah and Wyoming there is no right to repair or notice-of claim statue.
Reprinted courtesy of
Jean Meyer, Higgins, Hopkins, McLain & Roswell LLC and
Sheri Roswell, Higgins, Hopkins, McLain & Roswell LLC
Mr. Bracken, may be contacted at meyer@hhmrlaw.com
Ms. Russo may be contacted at roswell@hhmrlaw.com
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