Car Crashes Through Restaurant Window. Result: Lesson in the History of Additional Insured Coverage
December 29, 2020 —
Randy J. Maniloff - White and Williams LLPBack in the day, additional insureds were oftentimes afforded coverage for liability “arising out of” the named insured’s work for the additional insured. When confronted with such language, courts often concluded that it dictated “but for” causation. In other words, but for the named insured doing the work for the additional insured, the additional insured would not be in the liability-facing situation that it is in. The result in some cases: additional insureds were entitled to coverage for their sole negligence. Decisions reaching such a conclusion were generally not well-received by insurers. This was especially so when you consider that the premium received by insurers, for the AI coverage, may not have been enough to buy a package of Twizzlers.
Insurer frustration with such decisions -- which insurers did not believe expressed the intent of additional insured coverage -- led ISO to make revisions to additional insured forms in 2004 (later revisions followed). At the heart of these revisions was an attempt to require fault on the part of the named insured before coverage could be afforded to the additional insured. (This is a very brief and simple history of this complex issue.)
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Is Arbitration Final and Binding?
July 02, 2018 —
Jeanne M. Harrison - Smith CurrieParties involved in a dispute may face a choice between arbitration and litigation. Previous articles in this series have discussed various factors that can influence that choice. One generally perceived advantage of arbitration is finality. But how final and binding is an arbitration award? The answer is governed primarily by the Federal Arbitration Act.
The Federal Arbitration Act
The Federal Arbitration Act (FAA) is a statute enacted in 1925 which provides the basic legal principles applicable to arbitration in the United States. At its core is the following principle—arbitration agreements involving interstate or foreign commerce (which includes virtually all construction contracts in the United States) must be considered:
- Valid
- Irrevocable; and
- Enforceable, except on legal or equitable grounds for the revocation of a contract.
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Jeanne M. Harrison, Smith CurrieMs. Harrison may be contacted at
jmharrison@smithcurrie.com
Appraisal Goes Forward Even Though Insurer Has Yet to Determine Coverage on Additional Claims
December 11, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe trial court's order granting the insured's motion to stay litigation and compel an appraisal was affirmed even though the insurer had not determined coverage on the insured's additional claims.Heritage Prop. & Cas. Ins. Co. v. Wellington Place HOA, 2023 Fla. App. LEXIS 6405 (Fla. Ct. App. Sept. 13, 2023).
The insured homeowner's association reported roof damage to its insurer, Heritage, after Hurrican Irma struck. Heritage agreed the damage was covered, but issued no payment because the amount of loss was less than the deductible.
The insured hired its own adjuster. The insured requested an extension of the policy's two year time limit to complete repairs because the claim was still in dispute and the insurer had not yet paid sufficient funds to allow necessary repairs. Heritage sent a revised estimate and asked the insured to send its adjuster's estimate in order to address any disputes. The insured submitted its adjuster's estimate of more than $6 million, including, for the first time, the cost to replace all the windows and sliding glass doors.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Be Mindful Accepting Payment When Amounts Owed Are In Dispute
August 29, 2022 —
Nicholas Korst - Ahlers Cressman & Sleight PLLCAfter completing work on a project, or even during a project, it is not uncommon for some portion of the contract balance and/or a claim to be in dispute. As a contractor or subcontractor, it is important to be careful what is signed (or not signed) upon receipt of any payment both during and after completion of work on a project. One of the most common documents signed related to a receipt of payment is a lien/claim release document. This can be in the form of a conditional, unconditional, progress and/or final release. The language included in the release document is critically important, especially as it pertains to disputed amounts. As a contractor or subcontractor, if there are known disputes related to amounts owing, whether it be contract balance, disputed change order(s), a delay or inefficiency claim, or any other amounts believed to be owed, it is important to include language in the lien release that expressly carves out the disputed amounts. The same should be done for disputes related to extensions of time. This allows the contractor to accept the payment and release rights for the undisputed work, but continue to reserve its right to pursue the amounts in dispute later. If disputed amounts are not carved out, those amounts may effectively be waived and the subcontractor or contractor may lose all rights to recovery.
As a subcontractor in Alaska recently learned, there are potentially other ways a contractor may waive or lose its rights to recover amounts in dispute – without even signing a waiver or release document. In Smallwood Creek, Inc. v. Build Alaska General Contracting, LLC et al., the general contractor sent the subcontractor a check described as “final payment.” The subcontractor believed it was owed more than what the general contractor had sent and refused to accept the check. Months later, the subcontractor deposited the check. The subcontractor reversed course again and attempted to repay the general contractor the amount deposited. The general contractor refused, claiming the subcontractor’s acceptance of payment constituted satisfaction of all amounts owing to the subcontractor.
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Nicholas Korst, Ahlers Cressman & Sleight PLLCMr. Korst may be contacted at
nicholas.korst@acslawyers.com
WSHB Expands to Philadelphia
July 28, 2016 —
Beverley BevenFlorez-CDJ STAFFWood Smith Henning & Berman LLP (WSHB) announced “the opening of its newest regional office at One Liberty Place, 1650 Market Street, 36th Floor, Philadelphia, Pennsylvania 19103,” according to a press release. Elizabeth Chalik will be the managing partner at the new location. Chalik is “a highly regarded litigator with close to 15 years of trial experience” and her practice has focused on products liability, casualty, toxic tort and transportation litigation. Furthermore, Chalik is admitted to practice law in both New Jersey and Pennsylvania.
“It is fitting that as we celebrate WSHB’s 19th year, we are opening our 19th office,” said Daniel Berman, Firm Chairman and Co-founder. “With this expansion, we continue our pattern of strategic long term growth. That, coupled with Liz’s proven track record and many years in Philadelphia, further expands our ability to better serve our clients in the Northeast.”
Chalik has been recognized on the Super Lawyers List of Rising Stars for three years running.
“I am thrilled to be joining Wood Smith Henning & Berman. WSHB’s long-standing reputation and dedication to their clients drew me to them and I knew that this would be the right place for me,” said Chalik. “I could not be more excited about the opportunity to manage WSHB’s new Philadelphia office!”
WSHB also has offices located in Connecticut, Denver, Fresno, Glendale, Las Vegas, Los Angeles, Miami, New Jersey, New York, Northern California, Orange County, Phoenix, Portland, Rancho Cucamonga, Riverside, San Diego, Seattle and Tampa.
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Eastern District of Pennsylvania Confirms Carrier Owes No Duty to Defend Against Claims for Faulty Workmanship
April 05, 2021 —
Anthony L. Miscioscia & Marianne Bradley - White and Williams LLPOn March 17, 2021, the Eastern District of Pennsylvania issued its decision in Estate Chimney & Fireplace v. IFG Companies & Burlington Insurance Company, 2021 U.S. Dist. LEXIS 50360 (E.D. Pa. March 17, 2021), finding that an insurance carrier had no duty to defend its insured where the allegations in the underlying litigation involved claims of faulty workmanship.
Estates Chimney & Fireplace, LLC (Estates Chimney) had performed inspections and replaced chase covers for a number of chimneys in a condominium complex. Chase covers are pieces of metal, which are placed over chimneys in order to keep out environmental elements. Several condominium owners sued Estates Chimney, alleging that Estates Chimney had improperly installed, then improperly replaced, their chimney caps, which caused their chimneys to cease working properly. As a result, the underlying plaintiffs allegedly incurred costs to repair or replace the chimney caps and chimneys.
Estates Chimney sought coverage from its carrier, who denied coverage based upon its determination that the claims in the underlying lawsuits arose out of faulty workmanship, which did not result in damage to the property of a third party. Estates Chimney filed a declaratory judgment action, seeking a declaration that it was entitled to coverage under the policy. Both parties moved for summary judgment, and the Eastern District ruled in favor of the carrier.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Marianne Bradley, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Bradley may be contacted at bradleym@whiteandwilliams.com
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U.S. Steel Invoking Carnegie’s Legacy in Revival Strategy
July 23, 2014 —
Sonja Elmquist – BloombergIn March 2013, Mario Longhi lobbed an unexpected question into a roomful of 150 U.S. Steel Corp. managers: Who here would buy the company’s stock, tomorrow?
He gave them three seconds, and “only a few reacted in that time frame positively,” Longhi said.
Since that meeting, Longhi has been promoted to chief executive officer, and nine months into his tenure he’s closed one plant permanently, two more are temporarily idled and he’s planning to overhaul another. It’s all part of his plan to transform the 144-year-old company into a lean, modern steel producer. Investors are taking note, with the shares up 53 percent since he took over.
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Sonja Elmquist, BloombergMs. Elmquist may be contacted at
selmquist1@bloomberg.net
Specification Challenge; Excusable Delay; Type I Differing Site Condition; Superior Knowledge
January 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesAn Armed Services Board of Contract Appeals dispute, Appeal of L.S. Black-Loeffel Civil Constructors JV, ASBCA No. 62402, 2023 WL 5827241 (ASBCA 2023), involved which party bore liability for delay—the federal government or the prime contractor–based on various legal theories. Without detailing the factual details, a number of interesting legal issues were raised in this dispute including (1) a defective specification challenge, (2) excusable delay, (3) Type I differing site condition, and (4) superior knowledge. These legal issues are discussed below.
1. Specification Challenge (Defective Specifications)
The contractor claimed that the government’s specifications were defective in regard to a thermal control plan. The government countered that the specifications were not design specifications but performance specifications. The specifications were performance based because they did not tell the contractor how to achieve the performance-based criteria.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
