Massachusetts Federal Court Holds No Coverage for Mold and Water Damage Claim
February 11, 2019 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Clarendon National Ins. Co. v. Philadelphia Indemnity Ins. Co., 2019 WL 134614 (D. Mass. Jan. 8, 2019), the United States District Court for the District of Massachusetts had occasion to consider the application of a prior knowledge provision in the context of a claim for mold and water-related bodily injury and property damage.
Philadelphia insured a condominium property management company under a general liability insurance policy for the period September 1, 2007 through September 1, 2008. In 2009, the insured was sued by a unit owner alleging bodily injury and property damage resulting from toxic mold conditions resulting from leaks that had been identified in her unit as early as 2004. Notably, the complaint alleged that mold was identified in 2006 and that repair efforts were undertaken, but that these efforts all proved unsuccessful. Plaintiff alleged that she was forced to vacate her apartment in 2008 as a result of the conditions.
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Brian Margolies, Traub LiebermanMr. Margolies may be contacted at
bmargolies@tlsslaw.com
Additional Insured Obligations and the Underlying Lawsuit
October 07, 2016 —
David Adelstein – Florida Construction Legal UpdatesAs a general contractor, you understand the importance of being named an additional insured under your subcontractors’ commercial general liability (CGL) policies. Not only do you want your subcontract to express that a subcontractor’s CGL policy is primary and noncontributory to your policy, but you want it to express that the subcontractor must identify you as an additional insured for ongoing and completed operations. Even with this language, you want the subcontractor to provide you with their additional insured endorsement and, preferably, a primary and noncontributory endorsement. These additional insured obligations are important to any general contractor that has been sued in a construction defect / property damage lawsuit.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dma@katzbarron.com
No Duty to Defend under Homeowner's Policy Where No Occurrence, No Property Damage
October 10, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court for the district of Hawaii granted the insurer's motion for summary judgment determining there was not duty to defend and no duty to indemnify the insured under a homeowner's policy. Allstate Ins. Co. v. Rosfeld, 2022 U.S. Dist. LEXIS 139123 (D. Haw. Aug. 4, 2022).
The insured homeowners were sued in the underlying case for alleged failure to disclose poor flooding and plumbing issues during a December 2016 sale of the residence on Kauai. The disclosure statement purportedly made false representations and omitted material facts regarding various issues with the residence. The disclosure statement noted no sewage, drainage, water-related, or grading problems on the property, no damage to structures from flooding or leaks, no defects in the foundations or slabs, and no defects in the interior walls, baseboards or trim despite the insureds having experienced such issues during their ownership. The underlying complaint further alleged that the property had a history of drainage problems dating to 2006 and 2007, which the insureds knew about, or should have known about, when completing the disclosure statement. The insureds made a claim with Allstate in 2014 under their flood and homeowners policies for flooding or seepage into the basement of the house.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Harvey's Aftermath Will Rattle Construction Supply Chain, Economists Say
September 07, 2017 —
Tim Grogan - Engineering News-RecordHurricane Harvey’s immediate impact on the construction sector will be a disruption in the supply chain for key materials, along with scheduling problems for projects that were under construction. As the cleanup and eventual rebuilding proceed, increased demand for materials and labor will push costs upward and contractors will be scrambling to secure supplies and workers.
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Tim Grogan, ENRENR may be contacted at
ENR.com@bnpmedia.com
Environmental Law Violations: When you Should Hire a Lawyer
October 09, 2018 —
Bremer Whyte Brown & O’MearaEnvironmental law violations can have an enormous impact on your ongoing profitability. Environmental law is complicated and multifaceted, with laws at the local, state, and federal level often overlapping. In this article, we’ll discuss environmental law violations in the context of defending against an environmental law claim. In doing so, we’ll take a brief look at what environmental law is, and explore some environmental law violations cases. This should shed some light on the complex nature of environmental law litigation, and highlight the importance of securing legal representation with the scope and breadth of practice to wade into an environmental law violation case.
What is Environmental Law?
Before diving into specific environmental law violation cases, it is helpful to first provide a basic outline of what environmental law is and what different levels of environmental law exist in the United States. The most well-known environmental law exists at the federal level and is enforced by the Environmental Protection Agency (EPA). The EPA is responsible for enforcing directives that have been set forth by Congress over time. These include a variety of Acts, including the Clean Air Act and Clean Water Act.
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Bremer Whyte Brown & O’Meara
Antidiscrimination Clause Required in Public Works and Goods and Services Contracts –Effective January 1, 2024
January 22, 2024 —
Travis Colburn - Ahlers Cressman & SleightIn July 2023, the Washington legislature passed Senate Bill 5186, which mandates inclusion of select antidiscrimination clauses in every state contract and subcontract for public works, goods, or services executed after January 1, 2024.
[i] RCW 49.60.530(3) codifies the now-required antidiscrimination clauses, which prohibit four categories of discrimination against any person because of age, sex, marital status, sexual orientation, gender identity, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, the presence of any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a person with a disability (the “Protected Class”).
Under the new law, public contractors and subcontractors (“Public Contractor”) may not refuse to hire a person because that person is a member of the Protected Class, unless that refusal is based upon a bona fide occupational qualification or if a person with a particular disability would be prevented from properly performing the particular work involved.
[ii] Similarly, Public Contractors may not discharge or bar a person from employment or discriminate against any person – either in terms of compensation or other terms and conditions of employment – because that person is a member of the Protected Class.
[iii] Last, Public Contractors may not print or circulate (or cause to be printed or circulated) any statement, advertisement, publication, form of application for employment, or make inquiry in connection with prospective employment, which expresses any limitation, specification, or discrimination as to the Protected Class.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Ninth Circuit Reverses Grant of Summary Judgment to Insurer For Fortuitous Loss
July 01, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Ninth Circuit reversed the district court's issuance of summary judgment regarding coverage for damages when the insured's plant had to be shut down due to an accident. Ingenco Holdings, LLC v. Ace American Ins. Co., 2019 U.S. App. LEXIS 10946 (9th Cir. April 15, 2019).
Ingenco operated a gas purification plant which converted raw landfill gas into usable natural gas. The final step in the purification process involved the removal of excess nitrogen from the landfill gas. The gas was directed through adsorbent beads, to which nitrogen adhered, contained within pressure vessels.The beads could not withstand the direct pressure of the landfill gas inflow. which, if untreated, could grind the beads down into dust. To reduce the force of the gas flow on the beads, a "diffuser basket" was suspended from the top of each bead-filled pressure vessel. The diffuser basket acted as a shield that prevented the full force of the incoming landfill gas from striking the beads directly.
In 2010, metal brackets securing a diffiuser basket broke. This resulted in damage to other components and an eventual shutdown of the entire facility. The plant remained idle for several months as Ingenco investigated alternative nitrogen filtration options and undertook repairs.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Entire Fairness or Business Judgment? It’s Anyone’s Guess
January 09, 2015 —
Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico – White and Williams LLPIn lawsuits challenging the validity of business transactions and combinations, the most significant issue is often which standard of review the court applies: the defense-friendly “Business Judgment Rule” or the more stringent “Entire Fairness Standard.” The standard utilized by the court – or more often times the standard which the parties think the court will apply – can drive decisions on motion practice, settlement discussions, and resolution strategy. Under the Business Judgment Rule, directors are presumed to have acted in good faith and their decisions will only be questioned when they are shown to have engaged in self-dealing or fraud. However, if a “Controlling Shareholder” stands on both sides of the transaction, the court will often scrutinize the transaction under the more plaintiff-friendly “Entire Fairness Standard.”
So, what constitutes a “Controlling Shareholder?” If the party in question owns more than 50% of a company’s equity, the answer is clear-cut. However, for cases involving stockholders who own less than 50% of a company’s equity and stand on both sides of the disputed transaction, the answer is not so simple. This uncertainty was highlighted in back-to-back decisions by the Delaware Chancery Court in November 2014. On November 25, 2014, the court granted the defendants’ motion to dismiss a derivative lawsuit alleging breach of fiduciary duty in In Re Sanchez Energy Derivative Litigation (“Sanchez”). Vice Chancellor Glasscock held that the complaint failed to plead facts sufficient to raise an inference that two directors with a collective 21.5% equity interest in the company were Controlling Shareholders. The very next day, in In Re Zhongpin Inc. Stockholders Litigation (“Zhongpin”), the Delaware Chancery Court denied the defendants’ motion to dismiss breach of fiduciary duty claims against an alleged “Controlling Shareholder” and members of the company’s board. In Zhongpin, Vice Chancellor Noble held that sufficient facts were plead to raise an inference that a CEO with a 17.5% equity was a “Controlling Shareholder.”
Reprinted courtesy of White and Williams LLP attorneys
Maurice Pesso,
Greg M. Steinberg and
Christopher J. Orrico
Mr. Pesso may be contacted at pessom@whiteandwilliams.com
Mr. Steinberg may be contacted at steinbergg@whiteandwilliams.com
Mr. Orrico may be contacted at orricoc@whiteandwilliams.com
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