Alabama Still “An Outlier” on Construction Defects
October 14, 2013 —
CDJ STAFFWhile many state Supreme Courts have determined that faulty construction work can be an occurrence under a standard commercial liability policy, the Alabama Supreme Court has taken the contrary view. Writing on the Kilpatrick Townsend blog, Carl A. Salisbury and Edmund M. Kneisel point out that the decision makes Alabama “an outlier,” and they ask, “how much longer will the outliers hold out?”
They note that in the underlying construction defect case, “the arbitrator awarded $3 million in compensatory damages to the homeowners because of improperly installed flashing; improperly installed brick; the lack of weep holes in the brick; improperly installed doors and windows; improper construction of the upper porches; faulty construction of the roof; improper installation of a bathtub.” They summarize: “the house must have leaked like a colander.”
When the insurer denied coverage, the contractor sued. The insurer argued that “the CGL policy form does not cover construction-related acts or omissions because such acts are not an insured ‘occurrence.’” Mr. Salisbury and Mr. Kneisel point out that “the Alabama Supreme Court agreed.”
The problem they see is that “if there is no insurance for any intentional act, then insurance is simply a rip-off — it covers nothing.” They quote Justice Benjamin Cardozo to this effect: “To restrict insurance to cases where liability is incurred without fault of the insured would reduce indemnity to a shadow.” Their argument is that the Alabama decision was not the “correct position,” as exemplified by recent decisions from West Virginia, North Dakota, Connecticut and Georgia. The case “was a prime opportunity for the Alabama Supreme Court to leave the ranks of the outliers and join the majority view.”
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Insurance Client Alert: Mere Mailing of Policy and Renewals Into California is Not Sufficient Basis for Jurisdiction Over Bad Faith Lawsuit
January 28, 2015 —
Valerie A. Moore and Christopher Kendrick – Haight Brown & Bonesteel LLPIn Greenwell v. Auto-Owners Ins. Co. (No. C074546, filed 1/27/15), a California appeals court held that the use of a mailing address to send policies and renewals into California did not support jurisdiction for a California resident's bad faith lawsuit against a Michigan insurer over property coverage for a fire loss to a building in Arkansas.
In Greenwell, the insured was a California resident engaged in real estate investment. He purchased an apartment building in Little Rock, Arkansas. Using the services of an insurance broker in Little Rock, he purchased a package of general liability and commercial property insurance for the building from Auto-Owners Insurance Company, a Michigan insurer not licensed in California. The policy listed the insured's business address in California, the policy was mailed there, and renewed three times via the insured's California address.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com, Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Blackstone to Buy Chicago’s Willis Tower for $1.3 Billion
March 19, 2015 —
Hui-yong Yu – Bloomberg(Bloomberg) -- Blackstone Group LP agreed to buy Chicago’s Willis Tower, the second-tallest building in the U.S., and plans to upgrade the retail and observatory space in a bet on growth in the city.
The price was $1.3 billion, a record for a Chicago office building, according to Blackstone executives. The sellers of the 110-story skyscraper, formerly known as Sears Tower, are a group including New York-based investors Joseph Chetrit and Joseph Moinian, and American Landmark Properties Ltd.
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Hui-yong Yu, BloombergMs. Yu may be contacted at
hyu@bloomberg.net
UPDATE: Trade Secrets Pact Allows Resumed Work on $2.6B Ga. Battery Plant
April 19, 2021 —
Mary B. Powers - Engineering News-RecordConstruction on a $2.6-billion battery manufacturing plant near Atlanta can continue under an agreement reached April 11 between two rival South Korean auto battery makers—including SK Innovation, which is owner of the half-completed project.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Bound by Group Builders, Federal District Court Finds No Occurrence
August 11, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011). The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence. State Farm agreed to defend under a reservation of rights.
State Farm filed suit in federal court for declaratory relief. Judge Mollway granted State Farm's motion for summary judgment. Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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The Fair Share Act Impacts the Strategic Planning of a Jury Trial
May 10, 2017 —
Andrew Ralston, Jr. - White and Williams LLPComplex questions surrounding the application of the Fair Share Act, which modified Pennsylvania’s common law “joint and several” liability law, are being taken up by courts in the Commonwealth with increasing frequency. Given the practical consequences of the differences in application between the Act and “joint and several” liability, additional litigation over the application of the Fair Share Act to real world factual situations will undoubtedly arise.
Recent Caselaw
Currently, in Roverano v. PECO Energy, the Superior Court of Pennsylvania is considering the question of whether, under the Fair Share Act, the jury, or else the trial judge, is responsible for the task of apportioning liability to multiple defendants in a strict liability case. In Roverano – an asbestos case -- a jury awarded the plaintiff $6.3 million. On the verdict sheet were eight joint tortfeasor co-defendants. The judge did not allow the jury to apportion liability to each defendant and, as a result, no guidance was provided by the jury about how much each defendant was to contribute to the award. Instead, the judge merely divided the jury’s award by eight (the number of defendants in the case) and apportioned to each defendant one-eighth of the verdict amount.
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Andrew Ralston, Jr., White and Williams LLPMr. Ralston may be contacted at
ralstona@whiteandwilliams.com
Lewis Brisbois Moves to Top 15 in Law360 2022 Diversity Snapshot
August 15, 2022 —
Rima Badawiya - Lewis Brisbois NewsroomLos Angeles, Calif. (August 4, 2022) - Lewis Brisbois has ranked 13th in Law360’s 2022 Diversity Snapshot – a measure of the overall presence of individuals from underrepresented backgrounds in law firms of all sizes.
Throughout Lewis Brisbois’ history, the firm has been recognized for high achievements in the areas of diversity, equity, and inclusion. Over the past year, its focus on capturing the full picture of its diversity has led to the firm’s rise in several diversity rankings – including the Law360 Diversity Snapshot. As described in the Law360 Pulse article,
"Diversity Snapshot: Representation in the Ranks," the Diversity Snapshot serves as a “comprehensive ranking of law firms on their overall representation of minority attorneys,” providing “a picture of where firms are now, and where the future might lead.”
Moreover, as explained in the main article of this special publication,
"Diversity Snapshot: How Firms Stack Up," Law360 used its own historical surveys as well as data from the American Bar Association to evaluate the diversity in firm headcounts against benchmarks that reflected diversity in the potential marketplace of new hires. Lewis Brisbois’ efforts to capture its diversity numbers has led to a significant increase in the firm’s position from 58th to 13th. This year's Snapshot includes 291 law firms, with 75 in the 600+ attorneys category.
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Rima Badawiya, Lewis BrisboisMs. Badawiya may be contacted at
Rima.Badawiya@lewisbrisbois.com
California Posts Nation’s Largest Gain in Construction Jobs
March 28, 2012 —
CDJ STAFFCalifornia added about 8,900 construction jobs in January, 2012, as compared to December, 2011, leading the nation in the number of added construction jobs. Thirty-four other states also saw added construction jobs. A year prior, only twenty-eight states added construction jobs. The Associated General Contractors of America analyzed the monthly report from the Labor Department. Ken Simonson, the chief economist for the Associated General Contractors of America noted that “the gains this January partly reflect very mild weather this winter and exceptionally cold and snowy conditions a year before.”
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