Insurance Coverage Litigation Section to Present at Hawaii State Bar Convention
October 15, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii State Bar convention will be on October 24, 2014, at the Hawaiian Hilton. The Insurance Coverage Litigation Section will make a presentation from 8:30 a.m. to 11:45 a.m.
Three presentations will be made. First, Richard C. Mosher (Anderson Kill), Kathy Dang (Marsh), and Beau Monday (Hawaiian Telcom) will discuss cyber-liability claims and insurance options.
Next, David R. Harada-Stone (Tom Petrus & Miller) and I (Damon Key Leong Kupchak Hastert) will address "occurrences," i.e., deciding on and the impact of determining the number of occurrences in particular factual settings.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Appraisal Appropriate Despite Pending Coverage Issues
August 16, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insured's motion for partial summary judgment, allowing an appraisal to go forward even with outstanding coverage issues in dispute. DC Plastic Products Corp. v. Westchester Surplus Lines Ins. Co., 2021 U,.S. Dist. LEXIS 95908 (D. N.J. May 19, 2021).
DC Plastic's property was damaged by Superstorm Sandy in October 2012. Claims submitted to Westchester resulted in a payment of $951,102.89 to DC Plastic. The parties disagreed on whether further payments were due. In 2017, DC Plastic sued Westchester for additional payments. DC Plastic moved to compel an appraisal for its claims, requesting that the court appoint an umpire for the appraisal process. Westchester cross-moved to dismiss the case in its entirety.
DC Plastic's complaint asked that the court appoint an umpire. The policy stated if the parties could not agree on the amount of loss, each party would select an appraiser, who would then agree upon an umpire. If they could not agree, either party could request the court to appoint the umpire. Therefore, the court was authorised to select the umpire here.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Jersey’s Governor Puts Construction Firms on Formal Notice of His Focus on Misclassification of Workers as Independent Contractors
May 24, 2018 —
Kevin J. O'Connor & Joseph M. Vento - Peckar & Abramson, P.C.We have written quite a bit about the mounting threat to employers, both nationally and locally, of claims of misclassification of workers as independent contractors rather than employees. New Jersey’s new Gov. Phil Murphy signed an executive order last week that establishes a task force on employee misclassification to punish contractors who commit fraud by classifying their employees as independent contractors.
In the words of Governor Murphy: “I am signing this order to crack down on unscrupulous contractors who commit 1099 fraud to exploit workers and rob them of family and medical leave and safe workplace protections that the law provides,” Murphy said. “The employer gives themselves an unfair business advantage and this practice is illegal. This is a question of enforcing what is already on the books.” He has vowed that any employer caught misclassifying workers will either be brought into compliance or put out of business. The task force will foster compliance with the law and conduct a comprehensive review of existing practices.
Reprinted courtesy of
Kevin J. O'Connor, Peckar & Abramson, P.C. and
Joseph M. Vento, Peckar & Abramson, P.C.
Mr. O'Connor may be contacted at koconnor@pecklaw.com
Mr. Vento may be contacted at jvento@pecklaw.com
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Be Careful When Requiring Fitness for Duty Examinations
October 21, 2015 —
Craig Martin – Construction Contractor AdvisorFitness for Duty examinations can be an important part of an employer’s hiring and retention protocol. The Nebraska Supreme Court recently clarified when an employer may require applicants and employees to undergo fitness for duty examinations. In Arens v. Nebco, Inc., the court ruled that an employer must have a legitimate, nondiscriminatory reason for its demand that a current employee submit to a fitness for duty examination.
In this case, Lenard Arens suffered two significant injuries over the course of his 25 years of employment with Nebco. The second injury, a closed head injury, limited the type of work he could do and required written instructions due to short term memory loss. Arens was assigned to drive tractor-trailer trucks. Several years after returning to work, Arens had two minor accidents with his truck within a matter of days. Arens supervisor required him to undergo fitness for duty examination. Arens failed the fitness for duty examination and was terminated. Arens filed suit, claiming that Nebco discriminated against him by making him take a fitness for duty test.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Insurer’s “Failure to Cooperate” Defense
November 14, 2018 —
David Adelstein - Florida Construction Legal UpdatesThe “failure to cooperate” defense is a defense an insurer may raise when its insured fails to cooperate with it in the defense of the claim against the insured. If an insurer takes this position, it will typically be denying both defense and indemnification obligations, meaning the insured could be forfeiting coverage that otherwise exists through his/her/its failure to cooperate with the insurer. This defense by the insurer is not absolute as recently explained by the Fourth District in Barthelemy v. Safeco Ins. Co. of Illinois, 43 Fla.L.Weekly D2379a (Fla. 4th DCA 2018) discussing the elements of this failure to cooperate defense.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Contractor Prevails on Summary Judgment To Establish Coverage under Subcontractor's Policy
June 07, 2021 —
Tred R. Eyerly - Insurance Law HawaiiWhen sued for construction defects caused by the subcontractor, the general contractor was granted summary judgment on the issue of coverage under the subcontractor's policy. Meritage Homes of Ga. v. Grange Ins. Co., 2021 U.S. Dist. LEXIS 84591 (N.D. Ga. March 23, 2021).
Meritage built a home for the owners. Easterwood Excavating, Inc. was the subcontractor for excavation and grading work. Meritage was named an additional insured under Easterwood's policy with Grange.
After construction was completed, the owners were experiencing severe flooding after rain storms purportedly due to defects in the grading, site preparation and excavation. The owners filed an arbitration against Meritage for damages. The owners alleged that Meritage improperly excavated and graded their lot, causing water to collect and pool in their yard. Meritage denied all liability and looked to Easterwood and Grange for defense and indemnification. Grange denied coverage, contending there was no occurrence which resulted in property damage. The arbitrator found that the folding of water was caused by Meritage's improper grading of the lot. A Final Award in the amount of $129,530.93 was issued against Meritage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Complex Civil Litigation Superior Court Panels
December 31, 2014 —
Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq., and David A. Napper, Esq. – Chapman Glucksman Dean Roeb & Barger BulletinThe Complex Civil Litigation Program is relatively new as it has only existed in California
since 2000. Complex divisions dedicate courtrooms solely for litigation of complex civil
cases that require exceptional judicial management including construction defects, antitrust,
securities, toxic torts, mass torts, and class actions. Complex civil courtrooms help the trial
court operate in a more efficient, expeditious, and effective manner. A complex court
reduces costs for litigants by streamlining motion practice and expeditiously resolving
discovery disputes.
Not all counties have dedicated complex civil divisions. For those that do, each county has
its own local rules, and some complex divisions have their own particular set of rules. The
Judicial management of complex cases begins early, and is applied continuously and actively
with the idea that final resolution be expedited as much as possible. In focusing on
cooperation amongst the parties to achieve these goals, often requiring joint statements to
the court and a prohibition on discovery motions until after the parties have formally metand-
conferred on the issues. Moreover, complex cases are centralized and are assigned to
one highly skilled Judge for all purposes.
The first six California counties to create a Complex Civil division include Alameda, Contra
Costa, Los Angeles, Orange, San Francisco, and Santa Clara. Riverside County Superior
Court is the most recent California County to add a Complex division, effective January 2015.
Riverside county Superior Court’s Complex department consists of ten civil judges, seven of
which are in the main courthouse with Riverside. Riverside county expects to consolidate all
complex civil litigation into one courtroom by January 2015. Riverside county Judge Sharon
Waters state that "[i]t's been something that I personally have felt has been long overdue"
and that "[t]he idea is that put it with one judge and let him or her develop the expertise."
Judge Waters believes "[t]he potential value of establishing a complex litigation courtroom
[is that] it allows the judge to focus on the cases full time."1
As of October 2014, Riverside county had about 450 to 500 pending cases designated as
complex, over fifty percent (50%) of which involved construction defect matters. The sole
Judge who will preside over the complex cases has not yet been named.
1 Jolly, Vik. "Riverside to Shift Complex Civil Cases to 1 Courtroom." Los Angeles Daily Journal (October 13,
2014)
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto and
David A. Napper
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com;
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com;
and Mr. Napper may be contacted at dnapper@cgdrblaw.com
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Additional Insured Status Survives Summary Judgment Stage
August 26, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court determined that the insurer was not entitled to summary judgment in seeking a determination that a hotel was not the additional insured under its elevator repair company's policy. Aspen Spec. Ins. Co. v. Ironshore Indem. Inc., 2015 N.Y. Misc. LEXIS 2413 (N.Y. Sup. Ct. July 7, 2015).
Michael Patalano was an elevator repairman employed by Transel Elevator Inc. Transel had a contract to maintain the elevators at Alphonse Hotel. The contract required Transel to name Alphonse as an additional insured on Transel's CGL policy.
Patalano was injured while working at the hotel. He sued Alphonse, alleging that while performing work for the hotel, the stairs he was on which he was descending collapsed, causing him to fall and sustain injuries. Alphonse tendered to Ironshore, Transel's CGL carrier.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com