Examination of the Product Does Not Stop a Pennsylvania Court From Applying the Malfunction Theory
June 28, 2021 —
Gus Sara - The Subrogation StrategistPennsylvania recognizes the malfunction theory in product liability cases. This theory allows a plaintiff to circumstantially prove that a product is defective by showing evidence of a malfunction and eliminating abnormal use or reasonable, secondary causes for the malfunction. The malfunction theory is available to plaintiffs as an alternative to proving a traditional strict product liability case in those circumstances where direct evidence of a product defect is not found. In Pa. Nat’l Mut. Cas. Ins. Co. v. Sam’s East, Inc., 727 MDA 2020, 2021 Pa. Super. Unpub. LEXIS 752, the Superior Court of Pennsylvania (Superior Court) considered whether the plaintiffs could avail themselves to the malfunction theory if the plaintiffs’ expert was able to examine the product.
The Sam’s East, Inc. case arose from a February 2015 fire at the residence of Gerald and Michelle Thompson (the Thompsons). The fire caused injuries to the Thompsons, as well as significant damage to their residence. Pennsylvania National Mutual Casualty Insurance Company (Insurer) provided homeowners insurance coverage for the property and made payments to the Thompsons as a result of the fire. Insurer retained a fire investigator to investigate the origin and cause of the fire. The fire investigator determined that the fire originated at an electric space heater that was purchased from defendant Sam’s East, Inc. (Sam’s East) in December 2011. Insurer and the Thompsons filed a lawsuit against Sam’s East in early 2017 for their respective damages.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Surety’s Several Liability Under Bonds
March 20, 2023 —
David Adelstein - Florida Construction Legal UpdatesWhen a payment or performance bond is issued on behalf of its bond-principal, the surety is jointly and severally liable with its bond-principal. This means the surety has several liability under the bond, i.e., you don’t need to pursue the principal of the bond to pursue liability under the bond, which is a separate written intrument. Thus, if you are claiming damages of $500,000, by way of example, you can sue both the principal and surety under the bond, you can ONLY sue the principal under the bond (which is rarely practical), or you can ONLY sue the surety under the bond (which, oftentimes, is very practical). In many instances where I am pursuing a bond claim on behalf of a client, particularly a payment bond claim, I only sue the surety and do not sue the bond-principal unless there are certain strategic reasons in doing so. This is because of the surety’s several liability under the bond and there may be solvency issues with the principal or contractual reasons that, strategically, make much more sense to exclude the principal from the action.
In MJM Electric, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2023 WL 2163087 (M.D.Fla. 2023), an electrical subcontractor was hired to perform electrical work by the prime contractor. The prime contractor had a payment bond. The project was delayed for two years. The electrical subcontractor claimed the prime contractor failed to compensate it for significant delays and out of scope work.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Drones, Googleplexes and Hyperloops
March 05, 2015 —
Garret Murai – California Construction Law BlogI don’t know if it’s just me, or if there has been a lot of news lately about technology and construction:
Although flying in the face of some bad press recently, the use of drones in construction. And we’re talking about more than just cameras with propellers.
Battle of the (tech) Titans, as Google battles it out with the likes of LinkedIn and Microsoft for development rights in Mountain View, California for its futuristic new Googleplex. And we’re talking about more than just cameras with propellers.. And Google is only the most recent tech titan with development plans. Facebook’s Frank Gehry-designed campus expansion is in the works and Apple’s “spaceship” campus has already broken ground. We’ve come a long way since the HP garage in Palo Alto, baby!
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Point Taken: The UK Supreme Court Finally Confirms the General Law of Liquidated Damages (LDs)
April 04, 2022 —
Vincent C. Zabielski & Julia Kalinina Belcher - Gravel2Gavel Construction & Real Estate Law BlogIn a long-awaited decision which overturned the Court of Appeal’s ruling in the Triple Point Technology vs PTT Public Company case, the UK Supreme Court confirmed the general law of LDs, which is that—absent clear words to the contrary—they accrue up to the date of termination of a contract regardless of whether the contractor completes the work; after that, general damages are recoverable. This approach was held to reflect “commercial reality and the accepted function of liquidated damages.” Although the contract in question was not a construction contract, the decision is equally relevant in the construction sphere.
By way of reminder, Triple Point failed to complete the works under Phase 1 of a contract for the design, installation, maintenance and licencing of software. Despite agreeing a revised project plan, PTT gave notice to terminate.
Reprinted courtesy of
Vincent C. Zabielski, Pillsbury and
Julia Kalinina Belcher, Pillsbury
Mr. Zabielski may be contacted at vincent.zabielski@pillsburylaw.com
Ms. Belcher may be contacted at julia.belcher@pillsburylaw.com
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Kahana Feld Welcomes Six Attorneys to the Firm in Q4 of 2023
January 16, 2024 —
Linda Carter - Kahana FeldKahana Feld is pleased to announce the addition of six attorneys to the team in the fourth quarter of 2023. We are excited to have each of these individuals on the team.
In our Houston office, Kahana Feld welcomes Partner Donald Loving II and Attorney Elliott Wright. Mr. Loving is a member of the General Liability and Trucking & Transportation practice groups. He earned his Juris Doctor from the University of Houston and has over 30 years of litigation and trial experience, including working as staff & corporate counsel for several prominent insurance carriers including GEICO, Progressive, USAA and Travelers. Mr. Wright is a member of the Construction Defect, General Liability, and Trucking & Transportation practice groups. He earned his Juris Doctor from SMU Dedman School of Law, and has extensive litigation and insurance defense experience.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Arbitration and Mediation: What’s the Difference? What to Expect.
September 09, 2019 —
Brittany Rupley Haefele - Porter Law GroupMediation
Mediation is a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable settlement agreement. During this process, a neutral third party, with no decision-making power, intervenes in the dispute to help the litigants voluntarily reach their own agreement. Through a series of discussions, statements and private caucuses between the parties and the mediator, the process lets both parties negotiate and agree to a resolution with which everyone can abide. It is an excellent method of bringing a dispute to a conclusion without the further uncertainty and expense of litigation.
Arbitration
Arbitration, in addition to mediation, is one of the most common methods of alternative dispute resolution (“ADR”), whereby the parties bring a dispute before a disinterested third party who is typically selected by both parties. An arbitrator hears evidence presented by the parties, makes legal rulings, determines facts and makes an arbitration award. Arbitration awards may be entered as judgments in accordance with the agreement of the parties or, where there is no agreement, in accordance with California statutes. Arbitrations can be binding or non-binding, as agreed by the parties in writing. In most cases, the arbitrator’s decision is binding and final.
When is it Appropriate to Engage in Mediation and/or Arbitration?
Mediation can be held at any time, before or during a lawsuit. It is a voluntary process, where both sides simply agree to go to mediation in an effort to get the case settled. Sometimes, it is a contractually required process for the parties to complete prior to going to litigation or arbitration. Typically, in this situation, if a party ignores this requirement and fails to participate in a contractually mandated mediation, they will lose their rights to recover attorneys’ fees and costs – even if they ultimately prevail. Other times, mediation is strongly encouraged by the judge if a lawsuit has already been filed, and some would even say, ordered by the court (though it is typically not called “mediation” but something very similar like a “Dispute Resolution Conference” or “Mandatory Settlement Conference”).
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Brittany Rupley Haefele, Porter Law GroupMs. Haefele may be contacted at
bhaefele@porterlaw.com
Texas Supreme Court to Review Eight-Corners Duty-to-Defend Rule
April 05, 2021 —
Jared De Jong - Payne & FearsThe Texas Supreme Court has accepted certified questions from the Fifth Circuit Court of Appeals to clarify Texas’ eight-corners rule for determining the existence of a duty to defend.
In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2021 WL 955155 (5th Cir. Mar. 12, 2021), certified question accepted (Mar. 19, 2021), the Fifth Circuit asked the Texas Supreme Court to provide guidance on Texas insurance law. In Bitco, the insured was sued for negligently drilling an irrigation well. The insured allegedly got a drilling bit stuck in a bore hole, refused to fix the issue, and eventually abandoned the well. The policy did not cover continuing property damage known to the insured before the policy incepted. The policy period ran from Oct. 6, 2015 to Oct. 6, 2016, and the parties stipulated the drill bit became stuck in November 2014.
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Jared De Jong, Payne & FearsMr. De Jong may be contacted at
jdj@paynefears.com
Damage to Plaintiffs' Home Caused By Unmoored Boats Survives Surface Water Exclusion
April 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe magistrate's recommended decision found that damage to plaintiffs' home caused by boats that became loose during Hurricane Sandy was not barred as "water borne material" under the surface water exclusion. Spindler v. Great N. Ins. Co., 2016 U.S. Dist. LEXIS 16532 (E.D. N. Y. Feb. 2, 2016).
Plaintiffs' home abutted the East Bay. The property had an exterior deck and a long dock that floated on the bay. Hurricane Sandy damaged plaintiffs' home and dock. A neighbor witnessed two boats, driven by the storm, repeatedly strike plaintiffs' dock, house, and deck. There was no dispute that water infiltrated plaintiffs' yard prior to the entry of the boats. Plaintiffs spent $286,280 to repair damaged items from the storm.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com