Summary Judgment Granted to Insurer for Hurricane Damage
January 24, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment, contending there was no coverage for hurricane damage, was granted. Laurence v. Liberty Ins. Corp., 2021 U.S. Dist. LEXIS 227807 (S.D. Texas Nov. 29, 2021).
When Hurricane Harvey hit, Mike Laurence held a homeowner's policy from Liberty Insurance Corporation and a contractor policy for his business, Pride Plumbing, Inc., issued by State Farm Lloyds. Laurence's property suffered water damage during the storm. State Farm investigated and concluded that all but a small amount, within the policy's deductible, was from flood damage and excluded. Laurence sued.
The property covered by the State Farm policy included Laurence's home, Pride Plumbing's office and two sheds. Pride Pluming did not own or lease any of the buildings on the property. Laurence testified in his deposition that the only damage to his property not caused by flood water was to three buildings from fallen tree limbs and equipment from his business.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Preserving Lien Rights on Private Projects in Washington: Three Common Mistakes to Avoid
September 16, 2024 —
Kristina Southwell - Ahlers Cressman & Sleight PLLCThe Washington Construction Lien Statute, RCW 60.04 et seq., exists to help secure payment for work performed for the improvement of real property.[
1] The statute grants “any person furnishing labor, professional services, materials, or equipment for the improvement of real property” the authority to claim “a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished.” RCW 60.04.021.
Exercising lien rights is one of the most useful tools available to a contractor or supplier trying to recover payment owed on a project. A properly recorded lien binds the project property, which is typically the most valuable asset held by the owner, as security for the amounts owed to the lien claimant. Additionally, the lien statute provides a basis for the claimant to recover the costs of recording the lien and its attorneys’ fees and expenses incurred in litigating the foreclosure of the lien.
While the lien statute authorizes the right to lien, it also provides a series of strict requirements and procedures that a claimant must follow to properly exercise its rights. The claimant must carefully comply with all statutory requirements. This article does not endeavor to explain all the intricacies of the lien statute, but rather discusses three of the most common mistakes that result in the loss of lien rights.
See our lien and bond claim manual for a more detailed guide to construction liens in Washington.
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Kristina Southwell, Ahlers Cressman & Sleight PLLCMs. Southwell may be contacted at
kristina.southwell@acslawyers.com
Illinois Supreme Court Finds Construction Defect Claim Triggers Initial Grant of Coverage
February 26, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Supreme Court found that the underlying allegations addressing construction defects were sufficient to establish "property damage" caused by an "occurrence."Acuity v. M/I Homes of Chicago, LLC, 2023 Ill. LEXIS 1019 (Ill. Nov. 30, 2023).
M/I Homes was the general contractor for a residential townhome development. The Owners' Association sued for breach of conract and breach of the implied warranty of habitability against M/I Homes. The complaint alleged that M/I Homes' subcontractors caused construction defects by using defective materials, conducting faulty workmanship and failing to comply with applicable building codes. The defects included leakage and uncontrolled water with moisture in locations in the buildings where it was not intended or expected. The Association further alleged that M/I Homes did not intend to cause the construction defects nor did it expect or intend the resulting property damage, such as damage to other building materials. The complaint further alleged that M/I Homes did not perform any of the construction work and that the subconractors performed all the work on its behalf.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Great Skyscraper Comeback Skips North America
February 05, 2015 —
Patrick Clark – BloombergTall buildings are back. Developers around the globe completed a record 97 buildings of at least 200 meters (656 feet) in height in 2014, according to a new report from the Council on Tall Buildings and Urban Habitat, as size-obsessed builders got back on a growth track after a two-year skyscraper dip.
It’s not hard to explain the pattern. A typical skyscraper takes two to four years to finish, says report co-author Daniel Safarik. Work back from the year of completion, and the global financial crisis looks like an easy explanation for the drop-off in tall buildings. If you thought it was hard to get a home loan in 2009, imagine asking bankers to finance a gravity-and-wind-defying symbol of luxury, industry, and capitalist will. Especially, as Bloomberg Businessweek’s Bryant Urstadt pointed out, since supertall buildings are notorious for being hard to fill with tenants. (It’s worth noting that “tall” isn’t a technical term, though “supertall,” which is used to describe buildings more than 300 meters tall, is. And construction schedules vary. The Ryugyong Hotel in Pyongyang, North Korea, planned for 330 meters, has been under construction for 28 years, according to a CTBUH report last year.)
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Patrick Clark, Bloomberg
Recommendations and Drafting Considerations for Construction Contingency Clauses Part III
December 27, 2021 —
Samantha Schacht & Josh Levy - Construction ExecutiveThe best contracts provide the parties with a clear allocation of risks and responsibilities, and a process for handling inevitable project challenges. Contract negotiations can enable parties to have the difficult conversations allocating risks before the start of a project. An effective negotiation, in turn, aligns the parties’ expectations and helps avoid costly disputes born out of misunderstandings of the parties’ respective rights and responsibilities on the project.
This final installment of a three-part series on contingencies in construction contracts addresses factors that should be discussed and considered when drafting a contingency clause in a construction contract with the goal of helping to set clear expectations and avoid disputes.
Part I The Best Laid Plans: Contingency in a Construction Contract explained what a construction contingency is and
Part II The Best Laid Plans: Contingency in a Construction Contract discussed the two primary schools of thought on how a construction contingency fund should be used and managed.
Reprinted courtesy of
Samantha Schacht, Construction Executive and Josh Levy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com
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Haight has been named a Metropolitan Los Angeles Tier 1 “Best Law Firm” and Tier 2 for Los Angeles and Orange County by U.S. News – Best Lawyers® “Best Law Firms” in 2022
November 08, 2021 —
Haight Brown & Bonesteel LLPHaight Brown & Bonesteel LLP is listed in the U.S. News – Best Lawyers® (2022 Edition) “Best Law Firms” list with six metro rankings in the following areas:
Los Angeles
- Tier 1
- Insurance Law
- Personal Injury Litigation – Defendants
- Product Liability Litigation – Defendants
- Product Liability Litigation – Plaintiffs
- Tier 2
- Personal Injury Litigation – Plaintiffs
Orange County
- Tier 2
- Product Liability Litigation – Defendants
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Haight Brown & Bonesteel LLP
Coverage Found For Cleanup of Superfund Site Despite Pollution Exclusion
March 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court determined that the pollution exclusion did not bar defense or indemnity for the insured's obligation to clean up a superfund site. Decker Mfg. Corp. v. The Travelers Indem. Co., 2015 U.S. Dist. LEXIS 12169 (W.D. Mich. Feb. 3, 2015).
From 1966 to 1981, Decker disposed of its waste materials at the township landfill. The landfill was closed in 1981. Decker was insured under a CGL policy for a four year period from January 1, 1973, through January 1, 1977.
After the landfill was closed, the EPA began an investigation which eventually led to a Unilateral Administrative Order in 1995 in which Decker was ordered to remove drums, construct a landfill cap, and monitor groundwater. Decker notified Travelers of the EPA's order on November 14, 1995. Travelers responded that it had no duty to defend or indemnify Decker.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Policy Language Matters: New Jersey Court Bars Cleanup Coverage Under Broad Policy Terms
May 15, 2023 —
Stacy M. Manobianca - Saxe Doernberger & Vita, P.C. The New Jersey Appellate Division in
Handy & Harman v. Beazley USA Services, Inc., provided clarity regarding the interpretation of the Prior or Pending Litigation Exclusion in a site-specific environmental liability insurance policy.
In Handy & Harman, the Appellate Division affirmed the trial court’s determination that the insurer was not required to defend or indemnify its policyholder, a metal etching company. The court held that the Prior or Pending Litigation Exclusion (which applied to prior litigation and prior claims) barred coverage for natural resource damages sought in the current litigation because (1) an Administrative Consent Order (“ACO”) is a claim; and (2) the underlying lawsuit was based on the same environmental contamination as addressed in the ACO.1
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Stacy M. Manobianca, Saxe Doernberger & Vita, P.C.Ms. Manobianca may be contacted at
SManobianca@sdvlaw.com