Proposed Legislation for Losses from COVID-19 and Limitations on the Retroactive Impairment of Contracts
July 27, 2020 —
Shaia Araghi - Newmeyer DillionThe COVID-19 pandemic has caused most businesses to temporarily close and, as a result, sustain significant losses. Various states are contemplating the passage of legislation to require carriers to cover claims arising from COVID-19, but case law regarding the constitutionality of such legislation is conflicting. Depending on the facts surrounding retroactive legislation, states may be able to pass an enforceable law leading to coverage.
Pennsylvania’s Proposed Legislation for Business Interruption Losses
Pennsylvania is one of many states that has proposed legislation to override language in business interruption policies and require coverage from insurance carriers. Pennsylvania House Bill 2372 proposes that any insurance policy that covers loss or property damage, including loss of use and business interruption, must cover the policyholder’s losses from the COVID-19 pandemic.1 It applies to insureds with fewer than 100 employees.2 To enhance its chances to pass constitutional challenges, the House Bill also provides for potential relief and reimbursement through the state’s commissioner.3 Pennsylvania Senate Bill 1127 is broader than House Bill 2372 and most bills proposed in other states and would require indemnification for nearly all insureds.4 The Senate Bill makes important legislative findings and notes that insurance is a regulated industry.5 It essentially provides that an insurance policy insuring against a loss relating to property damage, including business interruption, shall be construed to cover loss or property damage due to COVID-19 or due to a civil authority order resulting from COVID-19.1 The proposed bill redefines “property damage” to include: (1) the presence of a person positively identified as having been infected with COVID-19; (2) the presence of at least one person positively identified as having been infected with COVID-19 in the same municipality where the property is located; or (3) the presence of COVID-19 having otherwise been detected in Pennsylvania.
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Shaia Araghi, Newmeyer DillionMs. Araghi may be contacted at
shaia.araghi@ndlf.com
Remote Trials Can Control Prejudgment Risk
September 07, 2020 —
Robert G. Devine, Victor J. Zarrilli & Kimberly M. Collins - White and Williams LLPWhile courts across the country are largely unavailable to litigants demanding a jury trial, pre-judgment interest rules present an increasing penalty risk to a defendant wanting its day in court and may not always make a plaintiff whole. The COVID-19 pandemic has altered the manner in which people and industries operate across the board. In light of the need to maintain social distancing whenever possible, the use of technology to replace in-person appearances is becoming more commonplace. As more attorneys become comfortable with the remote platform, the willingness to consider a remote trial grows.
With in-person jury trials suspended until further notice, it is important for attorneys and parties to consider the attendant consequences of the indefinite delay in waiting for a traditional jury trial. Aside from general inconvenience, continued delays may have a substantial financial impact, particularly with regard to the accumulation of pre-judgment interest.
Reprinted courtesy of White and Williams LLP attorneys
Robert G. Devine,
Victor J. Zarrilli and
Kimberly M. Collins
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Zarrilli may be contacted at zarrilliv@whiteandwilliams.com
Ms. Collins may be contacted at collinsk@whiteandwilliams.com
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After Pittsburgh Bridge Collapse, Fast-Rising Replacement Emerges
February 01, 2023 —
Jim Parsons - Engineering News-RecordA spirit of celebration was in the air last August as Pittsburgh residents cheered a 155-ft-long bulb-tee beam making its way up a narrow street to the entrance of historic Frick Park, where work was underway on a three-span prestressed concrete replacement for the 50-year-old Fern Hollow Bridge that collapsed in January.
Reprinted courtesy of
Jim Parsons, Engineering News-Record
ENR may be contacted at enr@enr.com
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"Your Work" Exclusion Bars Coverage for Contractor's Faulty Workmanship
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe West Virginia Supreme Court of Appeals found there was no coverage for the contractor's faulty workmanship in constructing a home. State of W. Virginia ex rel. Nationwide Mut. Ins. Co. v. The Honorable Ronald E. Wilson, 2015 W. Va. LEXIS 963 (W. Va. Oct. 7, 2015).
In July 2009, Fred Hlad contracted to build a home for the Nelsons and complete construction by November 2009. The Nelsons sued when the house was not timely completed. Nationwide defended under a reservation of rights, but then filed a declaratory judgment action.The circuit court denied Nationwide's request for declaratory relief, determining that the defective workmanship was an "occurrence." Nationwide petitioned the Supreme Court for a writ of prohibition.
On appeal, Nationwide argued that eight of the nine counts in the Nelsons' complaint were not caused by his defective workmanship. These allegations included breach of contract claims and intentional torts. Nationwide submitted it was not obligated to indemnify Hlad for damages that may be recovered on those counts. The court agreed that Nationwide's duty to indemnify was limited only to those claims that triggered coverage. Accordingly, Nationwide had no duty to indemnify for the eight counts alleging breach of contract and intentional torts.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
LA Lakers Partially Survive Motion to Dismiss COVID-19 Claims
June 13, 2022 —
Tred R. Eyerly - Insurance Law HawaiiWhile the appellate court affirmed dismissal of a majority of the claims submitted by the Los Angeles Lakers for closure of the Staples Center and other properties due to COVID-19, a portion of their claims survived. L.A. Lakers v. Fed Ins. Co., 2022 U.S. Dist. LEXIS 31503 (C.D. Calif. March 17, 2022).
Government orders closed the Staples Center in March 2020. The Lakers alleged they lost tens of millions of dollars in revenue. They further alleged that the presence of coronavirus particles on fixtures and building systems caused physical alterations to the covered properties. The Lakers had to upgrade their properties to include new air filters, touchless light switches, toilets and sinks; sleeves or coatings for high-touch surfaces; and plexiglass dividers. The Lakers also alleged that five Metro stations within a mile of the Staples Center, that was used to get to games, were closed by civil authorities due to the presence of COVID-19.
The Lakers submitted a claim for property damage and business interruption to Federal. The claim was denied and the Lakers filed suit. In February 2021, the court granted Federal's motion to dismiss without prejudice, after concluding that the Lakers' allegations of direct physical loss or damage were mere legal conclusions and not sufficient to state a claim.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Where Did That Punch List Term Come From Anyway?
March 27, 2019 —
Duane Craig - Construction InformerI’ve often wondered just where the term “punch list” came from, and I’ve found a few sources that seem to make sense, while others not so much.
One person claims it came from the telephone installer process of “punching down” terminals on a block. That seems a bit of a stretch though. A blog writer said it had to do with the term ‘punch’ since it means to “punch something up” as in fix it.
Another blog writer thought it had something to do with a long forgotten practice. Apparently subcontractors used to each have their own hole punches that would punch a hole with a shape unique to them. They would use these punches to indicate they had corrected the deficiency that was their responsibility.
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Duane Craig, Construction Informer
Thanks for the Super Lawyers Nod for 2019!
May 20, 2019 —
Christopher G. Hill - Construction Law MusingsIt is with humility and a sense of accomplishment that I announce that I have been selected for the third straight year to the Virginia Super Lawyers in the Construction Litigation category for 2019. Add this to my recent election to the Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer elected lists.
So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the 5% of Virginia attorneys that made this list for 2019.
The full lists of Virginia Super Lawyers will appear in the May edition of Richmond Magazine. Please check it out.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
2024 Update to CEB’s Mechanics Liens Now Available
October 15, 2024 —
Garret Murai - California Construction Law BlogFor a number of years we have had the honor to serve as update authors for several publications of California’s Continuing Education of the Bar (CEB).
I didn’t realize it until now but the CEB, a program of the University of California, was started
more than 75 years ago following WWII to provide veterans who were attorneys with practical guidance on changes to the law as they returned to their practices following the war. Pretty cool!
Reprinted courtesy of
Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com
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