Eighth Circuit Affirms Judgment for Bad Faith after Insured's Home Destroyed by Fire
January 21, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit affirmed the district court's judgment that the insurer acted in bad faith when it denied the insured's claim based upon misrepresentations in the application after destruction of his house by fire. Hayes v. Metropolitan Pro. and Cas. Ins. Co., 2018 U.S. App. LEXIS 31813 (8th Cir. Nov. 9, 2018).
Hayes' home was insured by Met under a homeowner's policy. Hayes used the detached garage as part of a home base for his plumbing business. He also rented out the second and third levels of the residence to a tenant and her two children. When Hayes applied for the policy in 2007, Met argues he indicated on the application that the premises were not used to conduct business, and were not used as rental property.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions
July 08, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured’s crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used to raise the structure a few inches at a time. There was substantial damage to the entire structure.
The homeowners sued, asserting several claims, including negligence and breach of contract. The complaint alleged the homeowners entered a contract with the insured to raise their structure while maintaining its integrity. However, the insured failed to use proper equipment, which caused the house to fall and be completely destroyed.
The insured tendered the claim to its insurer, Lafayette Insurance Company. Lafayette defended under a reservation of rights and filed suit for a declaratory judgment. Lafayette’s subsequent motion for summary judgment contended there was no “occurrence” alleged in the underlying complaint and, even if there was, the business risk exclusions barred coverage.
Read the full story…
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
Read the court decisionRead the full story...Reprinted courtesy of
Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff
September 20, 2017 —
Garret Murai - California Construction Law BlogElon Musk . . .
Eccentric engineer.
Technology billionaire.
And, now, litigation bad ass.
Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t.
One California contractor recently found this out the hard way.
In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Agrihoods: The Best of Both Worlds
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFSmithsonian Magazine reported on a new U.S. trend of blending farms and housing developments: The concept is called Development Supported Agriculture (DSA), or more commonly known as “Agrihoods.” In a DSA, “consumers pledge money or resources to support a farm operation, and in turn, receive a share of what it produces, but take the concept one step further by integrating the farm within residential developments.” Residents receive similar perks of being a part of a home owner association such as supported pools, tennis courts, and playgrounds through their contribution to the farm.
The first DSA, Prairie Crossing, was built in Grayslake, Illinois to preserve land while adding about 350 residential homes. Willowsford, a new DSA being built in Ashburn Virginia, will have over 2,000 homes.
Willowsford’s developers have preserved 2,000 acres, with 300 acres of farmland. The development will be broken into four villages, and each will have its own farm.
Part of the popularity of DSAs is that they may “require less of an investment than other green space communities—for instance, communities planned around golf courses,” according to Smithsonian Magazine. “What does it cost to leave the open space alone in the first place? Almost nothing,” said Ed McMahon, the Charles E. Fraser chair on sustainable development and environmental policy at the Urban Land Institute, as quoted by Smithsonian Magazine. “A light bulb went off in the mind of savvy developers who said, ‘Jeez, I can build a golf course development without the golf course.’ So that led to designing communities around other green-space amenities such as a farm.”
Read the court decisionRead the full story...Reprinted courtesy of
Texas Supreme Court Rules That Subsequent Purchaser of Home Is Bound by Original Homeowner’s Arbitration Agreement With Builder
May 29, 2023 —
Kim Altsuler - Peckar & Abramson, P.C.In a new opinion
Lennar Homes of Texas Land and Construction, Ltd., et al. v. Kara Whiteley, Cause No. 21-0783, 66 Tex. Sup. Ct. J. 8740, issued May 12, 2023, the Texas Supreme Court partially reversed two lower court decisions and held that an arbitration provision contained in the original homeowner’s contract with the builder was binding on a subsequent homeowner. In the decision, the court found that Kara Whiteley—the second owner of the home in Galveston, Texas—was bound to arbitrate her construction defect claims with Lennar by virtue of the doctrine of “direct-benefits estoppel.” The rationale was based on the fact that Whitely was seeking benefits emanating from Lennar’s contract with the original homeowner.
The residence in question was first purchased from Lennar in May 2014. Whiteley purchased the home in July 2015. The original contract documents included several arbitration provisions—one in the Purchase and Sale Agreement, one in the Limited Warranty issued by Lennar, and one in the general warranty deed. Whiteley sued Lennar in Galveston County District Court alleging mold growth and other defects at the property. Lennar moved for arbitration and its motion was granted. The parties arbitrated the case and Lennar received an award in its favor. Lennar then moved the District Court to confirm the arbitration award, and Whiteley filed a cross-motion to vacate the award, arguing that Lennar’s original motion to compel arbitration should not have been granted. The District Court agreed with Whiteley, vacating the arbitration award. Lennar appealed. The Court of Appeals affirmed the District Court’s vacatur, and Lennar appealed to the Texas Supreme Court.
Read the court decisionRead the full story...Reprinted courtesy of
Kim Altsuler - Peckar & Abramson, P.C.Ms. Altsuler may be contacted at
kaltsuler@pecklaw.com
Elon Musk’s Proposed Vegas Strip Transit System Advanced by City Council Vote
January 11, 2021 —
Sarah McBride - BloombergElon Musk’s tunneling company Boring Co. is already building a transit system for Las Vegas convention-goers. Now, he wants to build one for the rest of the city.
On Wednesday, the Las Vegas City Council voted unanimously to advance plans to dramatically expand Musk’s Loop project from a convention center transit system to a citywide network that would include hotels and, one day, potentially even the airport.
The proposed expansion brings the tunnel-based transportation system as far north as Ogden Avenue, near attractions such as the Downtown Container Park and classic casinos like the Golden Nugget. Proposed stops en route include the Arts District and the Stratosphere tower, the spaceship-like landmark that is part of a hotel. The precise location of stations will be determined later in the process, according to documents submitted to the council.
Read the court decisionRead the full story...Reprinted courtesy of
Sarah McBride, Bloomberg
Congratulations to Partner John O’Meara for Being Named as One of America’s Top 100 Civil Defense Litigators for Three Consecutive Years!
September 20, 2021 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPlease join Bremer Whyte Brown & O’Meara, LLP in congratulating Woodland Hills Partner John O’Meara for being selected as one of America’s Top 100 Civil Defense Litigators for the third year in a row!
Membership among America’s Top 100 Civil Defense Litigators highlights the accomplishments of the nation’s most esteemed and skilled Civil Defense attorneys. Only 100 attorneys in each state receive this honor and candidates for membership are identified through third-party research or peer nominations by America’s Top 100 or elite attorneys in the community. Candidates are judged by the attorney’s lifetime legal achievements, professional experience, significant case results, peer reputation, client satisfaction, other notable honors, media notoriety, and community impact.
Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
It’s Not What You Were Thinking!
December 10, 2024 —
Daniel Lund III - LexologyAt least it is not what the lower court was thinking… but the same result for a general contractor seeking to have its comprehensive general liability insurer pay the GC’s defense related to claims for physical damage on a construction project.
In reviewing the Massachusetts federal district court’s ruling in favor of the insurer, the United States First Circuit Court of Appeals posited: “The principal question is whether a general contractor’s CGL insurance policy covers damage to a non-defective part of the contractor’s project resulting from a subcontractor’s defective work on a different part of that project.”
The district court had held under Massachusetts law that the insurer had no duty to defend because the lawsuit “did not allege ‘property damage’ caused by an ‘ occurrence,’ as required for coverage” under the policy (a defense that was urged by the insurer). The Court of Appeals affirmed, “albeit for different reasons.”
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com