Judgment for Insurer Reversed Due to Failure to Establish Depreciation
August 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe trial court erred in placing the burden on the policyholder to establish depreciation in determining the actual cash value of the loss. SFR Serv., LLC v. Tower Hill Prime Ins. Co., 2023 Fla. App. LEXIS 3570 (Fla. Ct. App. May 26, 2023).
The insureds' roof was damaged by Hurricane Irma. They submitted their claim to their insurer, Tower Hill. The cost of repair was assessed at $7,726.94, below the amount of the deductible. Therefore, there was no recovery under the policy. The insureds assigned their claim to SFR Services, LLC, their roofing contractor. SFR submitted a claim to Tower Hill for $162,083.84. Tower Hill refused to pay and SFR sued.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
MTA Implements Revised Contractors Debarment Regulations
July 06, 2020 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.On June 3, 2020, the Metropolitan Transit Authority (“MTA”) published and implemented revised regulations pertaining to the debarment of contractors. The revised regulations address many of the deep concerns raised by the contracting community.
Under relevant administrative procedure, the MTA publication of the revised regulations starts a 45 day notice period before the regulations can be adopted as final.
The prior regulations essentially required that debarment occur upon a purely formulaic calculation establishing that a contractor: 1) was more than 10% late, or 2) had submitted invalid claims that exceeded the adjusted contract price by a measure of 10%.
The revised regulations represent improvements over the prior regulations.
Critically, the revised regulations address the primary concern raised by the contracting community, that being the mandate of purely formulaic debarment. Instead, the revised regulations establish a process that includes greater flexibility and discretion before debarment may ensue.
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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Supreme Court of Washington State Upholds SFAA Position on Spearin Doctrine
September 13, 2021 —
Peter Roth – The Surety & Fidelity Association of AmericaSeptember 9, 2021 (WASHINGTON, DC) –
The Surety & Fidelity Association of America (SFAA) commends the decision of The Supreme Court of The State of Washington to reverse the lower court ruling in the case of Lake Hills Investments, LLC vs. Rushforth Construction Co. As argued by SFAA, the Supreme Court found the contractor should not be responsible for damage caused by the defective design provided by the owner even where the contractor was responsible for certain defective work. In addition, the contractor is not completely barred from asserting this defense if the defects were caused by a combination of deficient performance by the contractor and deficient design, and proportional liability should be determined.
The SFAA, along with the National Electrical Contractors Association Puget Sound Chapter (NECA), Mechanical Contractors Association of Western Washington (MCAWW) and SMACNA-Western Washington (SMACNA), issued an Amici Curiae in support of Petitioner AP Rushforth Construction Co., Inc. d/b/a AP Rushforth, and Adolfson & Peterson, Inc.’s (collectively “AP”) Petition for Discretionary Review. In the brief they argued the Court should grant the Petition because the decision by the lower court is contrary to precedent of limiting a contractor’s liability when the owner’s defective plans and specifications caused the defective work, and upsets settled expectations of allocation of risk and liability between contractors, owners and architects (among others) on construction projects. This allocation of risk and the principle of limiting the contractor’s liability for defective work based on defective plans and specifications is long settled doctrine in Washington State and throughout the country, a doctrine based on the US Supreme Court’s landmark decision in U.S. vs. Spearin more than 100 years ago.
The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org
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Peter Roth, SFAAMr. Roth may be contacted at
proth@surety.org
"Is the Defective Work Covered by Insurance?"
January 04, 2018 —
David Adelstein – Florida Construction Legal UpdatesOriginally Published by CDJ on March 16, 2017
I have been asked this question quite a bit from owners, in particular: “The contractor committed defective work, but it has insurance. Doesn’t the insurance cover this defective work?” Ugh, NO! There is this misconception that liability insurance, specifically, is the be-all-and-end-all when it comes to defective work. This could not be further from the truth. Don’t get me wrong – liability insurance is important; it is very, very important. However, liability insurance does not cover the risk of an insured’s defective work. Rather, liability insurance is designed to cover the risk of resulting damage: damage resulting from defective work. This is a significant distinction and one that is often overlooked. This is also why anyone encountering defective work should be working with an attorney to maximize insurance coverage or realize that the issue is not covered by insurance.
Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
New York Team Secures Appellate Win on Behalf of National Home Improvement Chain
September 26, 2022 —
Lewis BrisboisNew York, N.Y. (August 12, 2022) - New York Appellate Partner Nicholas P. Hurzeler, with New York Partners John J. Doody and David M. Pollack, obtained a significant appellate victory on behalf of a national home improvement chain when a New York Appellate Division panel for the Second Department reduced a jury verdict by more than half.
In this matter, which was
covered by Law360, the plaintiff was a customer at one of the chain's stores when he was involved in a confrontation with a man and his wife as they exited the store. The chain's loss prevention official told police that the plaintiff had assaulted the female customer. As a result of the incident, the plaintiff was arrested, spent the night in jail, and was arraigned at the same courthouse where he worked as a staff attorney while wearing only an undershirt and jogging shorts. He also had to disclose his arrest on his judgeship nomination application. The charges against him were ultimately dropped after the chain's loss prevention official told prosecutors that surveillance video showed that the female customer’s assault claims were false.
The plaintiff subsequently sued the home improvement chain and its loss prevention official for allegedly causing his false arrest and interfering with his career goal of securing a New York state court judgeship. At the close of the trial in this case, the jury determined that the defendant was liable for battery and false imprisonment, and awarded the plaintiff $1.8 million for pain and suffering.
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Lewis Brisbois
California Supreme Court McMillin Ruling
January 24, 2018 —
Don MacGregor - CDJ STAFFReaction to the recent California Supreme Court ruling in McMillin Albany LLC v. The Superior Court of Kern County has been both swift and diverse, with many notable California law firms weighing in on the potential impact this landmark ruling may have on the Construction Industry and construction defect litigation. In our ongoing desire to serve as a meaningful and comprehensive provider of news and information for Construction and Claims Professionals, we have included a selected number of the submissions we have received regarding this very important judicial ruling.
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Michael Baker Intl. Settles Federal Pay Bias Allegations
February 26, 2024 —
James Leggate - Engineering News-RecordMichael Baker International Inc. agreed to pay $122,299 in back wages as part of an agreement with the U.S. Dept. of Labor to resolve allegations that the engineer-consultant paid women in four job titles less than their male counterparts.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Court Finds Matching of Damaged Materials is Required by Policy
April 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted, in part, the insured's motion for summary judgment by finding that matching roof tiles were required under the policy. Bertisen v. Travelers Home and Marine Ins. Co., 2024 U.S. Dist. LEXIS 3907 (D. Colo. Jan. 8, 2024).
The insureds sued Travelers for breach of contract, common law bad faith, and unreasonable delay or denial of benefits. They alleged that their residence was damaged by a hailstorm and that Travelers breached their policy and acted in bad faith in the handling of the claim. The insureds demanded an appraisal to determine the "amount of loss" under the policy and an appraisal award was issued. Travelers then denied payment for all roof tiles that were contemplated by the appraisal award.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com