Insureds Survive Motion to Dismiss Civil Authority Claim
September 29, 2021 —
Tred R. Eyerly - Insurance Law HawaiiAfter suffering business losses due to a hurricane, the insured's Civil Authority claim survived the insurer's motion to dismiss. Pathology Lab. v. Mt. Hawley Ins. Co., 2021 U.S. Dist. LEXIS 145129 (W.D. La. Aug. 3, 2021).
Hurricane Laura devastated Lake Charles, Louisiana causing severe damage to the insured property as well as other properties within a mile of the insured property. All seven electrical transmission line corridors feeding Lake Charles were catastrophically damaged causing an extensive power outage. Government shutdown Orders prohibited the insureds' access to the Lab. The Orders were issued by the respective civil authorities both in anticipation of and as a result of damage and dangerous physical conditions expected from and actually resulting from Hurricane Laura and the continuation thereof. When the hurricane arrived, all businesses that were not essential to the recovery were ordered closed until electricity, water and sewer services were restored. As a result, the Lab was closed from August 27, 2020 toSeptember 8, 2020.
The Lab sued for business income under the policy's Civil Authority provisions. Mt. Hawley moved to dismiss. Mt. Hawley argued that the Orders did not by their explicit terms close the Lab's business because closure was entirely dependent on the conditions of the described premises itself and whether it was safe to occupy. Mt. Hawley further argued that the mandatory Evacuation Order was issued in anticipation of property damage and therefore did not trigger coverage under the Civil Authority provision.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Traub Lieberman Attorneys Recognized as 2020 Super Lawyers and Rising Stars
November 16, 2020 —
Traub LiebermanTraub Lieberman is pleased to announce that Super Lawyers has named nineteen of our attorneys as 2020 Super Lawyers and Rising Stars.
Super Lawyers selects attorneys using a multiphase selection process in which nominations and evaluations are combined with independent research. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis. The objective is to create a credible, comprehensive and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel.
The Super Lawyers designation recognizes the top 5% of attorneys in the U.S. and the Rising Stars designation recognizes the top 2.5% of attorneys in the U.S. under the age of forty, as chosen by their peers and through independent research within their practice area.
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Traub Lieberman
Apartment Construction Ominously Nears 25-Year High
August 27, 2014 —
Karen Weise – BloombergIf you live in a major U.S. city and look out over the skyline, chances are good you’ll see construction cranes. Lots of them. Only twice in the past 25 years have new apartment buildings been going up as fast as they are right now. That’s not necessarily a good omen. The first time, in February 2000, was right before the dot-com bubble burst. The second time, January 2006, came right before the housing bubble burst. Now we learn that builders broke ground on 423,000 new multifamily units in July, right before … who knows what?
Monthly building data released earlier this week by the Census Bureau and the Department of Housing and Urban Development showed that new home construction overall posted strong gains in July, with the highest number of new home starts in eight months. The comeback largely manifested in an uptick in apartment buildings with five or more units, which saw an almost 50 percent increase in new starts in July over a year earlier. By comparison, starts on single-family homes were up only about 10 percent over the same period.
That’s part of the reason that the Northeast, with its large, dense cities, saw the biggest monthly increase, up 44 percent from June. That matches the analysis by Trulia (TRLA) Chief Economist Jed Kolko, who found that among metro areas, Boston and New York are building more than in the past.
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Karen Weise, BloombergMs. Weise may be contacted at
kweise@bloomberg.net
Construction Defect Lawsuit Came too Late in Minnesota
June 28, 2013 —
CDJ STAFFThe Minnesota Court of Appeals has upheld a summary judgment in a construction defect case, Lee v. Gorham. Minnesota law requires that contractors warranty that the home will be free of major construction defects during the first ten years, but claims must “be brought within two years of the discovery of the breach.” The Lees received a home inspection report in 2009 that identified a variety of defects, including “several possible structural defects.” The court noted that the report stated, “Contact your builder in writing of the findings, and discuss your options with an attorney.”
The Lees contacted the contractor, Gorham Builders. After initial silence, Gorham told the Lees that problems would “have to be ‘turned over to [the] insurance company.’” Rodney noted in his testimony that he had two choices, to either sue Gorham or hire an outside contractor. Mr. Lee had concluded that the legal costs were likely to be equal to the cost of the contractor.
In June, 2011, the Lees changed their mind about bringing a suit. Gorham sought and received a summary judgment dismissing the case on the grounds that too much time had passed since the Lees learned of the construction defect. The Lees appealed.
The appeals court upheld the summary judgment. The Lees claimed that the 2009 home inspection did not alert them of a “major construction defect,” but the court concluded that the language of the report fit within the Minnesota statutory definition of a “major construction defect.”
Nor was the appeals court convinced that at any time did Gorham provide “assurances that it would cure the defects to the home.” Within the same month as the May 2009 inspection, Gorham had made it clear that any problems were an issue for the insurance company. Thus, the appeals court concluded that the Lee’s equitable-estoppel argument was without merit.
The Lees also brought to appeal the new argument that they did not realize they were dealing with “major construction defects” until they received a subsequent home inspection in 2011. The court noted that the second report does not detail “new defects or structural issues not identified in the 2009 inspection report.” In addition to being “without merit,” the court noted that this claim was not made in the district court and so the appeals court “need not consider this issue on appeal.”
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Real Estate & Construction News Roundup (08/30/23) – AI Predicts Home Prices, Construction’s Effect on the Economy, and Could Streamline Communications for Developers
October 17, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, SV invests in a new green “mega-city” outside San Francisco, refunds are given to investors in fraudulent real estate deal, homebuyers are losing purchasing power, and more!
- With major tech companies like Google and Amazon laying off workers, those with computer science and related degrees are looking to construction as a place to start or restart their careers. (Zachary Phillips, Construction Dive)
- Although Silicon Valley is the haven for most tech startups, Israel has become a place where those in construction innovation can find support and funding. (Matthew Thibault, Construction Dive)
- For those who may be concerned about the future price of their home, it may be possible for AI to look at a house and predict its price with “striking accuracy.” (Jacob Zinkula, Business Insider)
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Pillsbury's Construction & Real Estate Law Team
House Bill Clarifies Start Point for Florida’s Statute of Repose
September 14, 2017 —
Lian Skaf - White and Williams LLPThe Florida legislature recently enacted a law clarifying when the ten-year statute of repose begins to run for cases involving “improvements to real property,” as that phrase is used in Florida Statute Section 95.11. House Bill 377 was signed into law on June 14, 2017 and took effect in all cases accruing on or after July 1, 2017. This amendment is significant to subrogation professionals evaluating when cases involving contractors and design professionals are time barred.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Federal Court Reiterates Broad Duty to Defend in Additional Insured Cases
April 22, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of
Travelers Indem. Co. of Am. v. Accredited Sur. & Cas. Co., No. 21-CV-7189 (FB) (JRC), 2024 U.S. Dist. LEXIS 44634 (E.D.N.Y. Mar. 13, 2024), the Federal District Court for the Eastern District of New York had occasion to consider an additional insured tender on behalf of a prime contractor, Archstone, to a subcontractor, Topline, who was named as a direct defendant in a New York labor law case. Even though Topline’s carrier put forth evidence that Topline was not negligent, the court held, under New York’s broad duty to defend, that Topline’s carrier owed a duty to defend the prime contractor.
Initially, the court was satisfied that a purchase order, signed only by Topline and not Archstone, was binding on Topline. That purchase order specified that Topline agreed to name Archstone as an additional insured.
With respect to the duty to defend, the court found that it was enough that the underlying plaintiff alleged that all defendants, including Topline, were negligent in permitting a ladder that plaintiff was on to remain in a defective condition and in failing to foresee the existence of a hazard from the condition of the subject ladder.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
What You Need to Know to Protect the Project Against Defect Claims
October 28, 2024 —
Scott L. Baker - Los Angeles Litigation BlogIf a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage?
Here are three things to know before beginning a project to effectively protect it and
manage construction defect claims.
1. Documentation is key
California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County
will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans.
However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you:
- Stay updated and aware of the project’s progress
- Proactively catch and handle issues that could result in disputes
- Create a record of evidence that can help manage defect claims
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com