Fifth Circuit Rules that Settlements in Underlying Action Constitute "Other Insurance"
April 17, 2019 —
Tiffany Casanova - Saxe Doernberger & Vita, P.C.The Fifth Circuit ruled that settlements between an insured and its subcontractors qualified as “other insurance” to the extent those settlements were used to pay for damages covered by an excess insurance policy. Policyholders should note the outcome of this case as it demonstrates the significant impact that settlements can have on coverage.
Satterfield & Pontikes Construction, Inc. v. Amerisure Mutual Ins. Co.1 was the result of a construction project gone wrong. Zapata County, Texas hired Satterfield & Pontikes (“S&P”) as a general contractor for the construction of a courthouse building. When the project did not go as planned, Zapata County terminated S&P, hired new subcontractors to complete the project, and sued S&P.
S&P, in turn, sought indemnification from its subcontractors, who were contractually obligated to indemnify S&P and procure insurance for any damage the subcontractors caused at the project. S&P also sought coverage from its own primary insurers, American Guarantee and Liability Insurance Company (“AGLIC”) and Amerisure Mutual Insurance Company (“Amerisure”), and its excess insurer, U.S. Fire Insurance Company (“U.S. Fire”) who provided liability coverage for S&P’s potential liabilities at the project. The policies contained exclusions for losses arising from mold and did not provide coverage for attorney’s fees or similar legal costs.
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Tiffany Casanova, Saxe Doernberger & Vita, P.C.Ms. Casanova may be contacted at
tlc@sdvlaw.com
Fifth Circuit: Primary Insurer Relieved of Duty to Defend Without Release of Liability of Insured
March 02, 2020 —
Bethany L. Barrese & Ashley McWilliams - Saxe Doernberger & Vita, P.C.In Aggreko, LLC v. Chartis Specialty Ins. Co.,1 the Fifth Circuit affirmed a decision by the Texas District Court and held that a Covenant Not to Execute constituted a “settlement” sufficient to exhaust policy limits and terminate a primary insurer’s duty to defend.
This case arose out of a wrongful death suit filed by the parents of James Brenek II (“Brenek”). In 2014, Brenek was fatally electrocuted by an electrically energized generator housing cabinet while performing work on a rig in Texas for Guichard Operating Company, LLC (“Guichard”), a Louisiana-based drilling subcontractor. Guichard had leased the generator from Aggreko, LLC (“Aggreko”). A rental agreement between Guichard and Aggreko required Guichard to maintain commercial general liability insurance during the lease period and list Aggreko and the rig owner, Rutherford Oil Corporation (“Rutherford”), as additional insureds under
the policy.
Guichard’s primary insurance carrier, The Gray Insurance Company (“Gray”), agreed to defend and indemnify Aggreko and Rutherford in the wrongful death suit. The Gray policy had a limit of $1,000,000, subject to a $50,000 self-insured retention.
Reprinted courtesy of
Bethany L. Barrese, Saxe Doernberger & Vita, P.C. and
Ashley McWilliams, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com
Ms. McWilliams may be contacted at amw@sdvlaw.com
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A Court-Side Seat: SCOTUS Clarifies Alien Tort Statute and WOTUS Is Revisited
July 11, 2021 —
Anthony B. Cavender - Gravel2GavelWhat follows is a brief account of some of the notable U.S. environmental and administrative law cases recently decided.
THE U.S. SUPREME COURT
Nestle USA, Inc. et al. v. Doe, et al.
The Supreme Court has decided another important case interpreting the Alien Tort Statute. Released on June 17, 2021, this decision reverses the Ninth Circuit which had ruled that the respondents—six individuals who alleged they were child slaves employed on Ivory Coast cocoa farms, could sue the American-based companies for aiding and abetting child slave labor. Without dissent, the Court rejected this reading of the ATS and affirmed its own recent rulings on the scope of the ATS.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Bert Hummel Appointed to Chief Justice’s Commission on Professionalism
May 10, 2021 —
Bert Hummel - Lewis BrisboisAtlanta Partner Bert Hummel was recently appointed to the Chief Justice’s Commission on Professionalism (CJCP) for the 2020-2021 term. In this role, Mr. Hummel has assisted in carrying out the charge of the CJCP, namely, to enhance professionalism among Georgia’s lawyers. Mr. Hummel’s appointment follows his participation on the Grants Committee and the Professionalism Committee of the CJCP. In addition, Mr. Hummel was selected as one of seven members of CJCP’s Benham Awards Subcommittee, which recognizes Georgia attorneys who dedicate their practice or time to serving the public and profession.
“I am honored to be appointed to a body that continually strives to do so much good for both the legal profession and the community at large. For the past several months, I have appreciated the work the Commission has undertaken to promote professionalism in the practice of law through educational programming while also promoting community service programs through the CJCP’s Grants Committee that I served on as well. I look forward to continuing to serve with my colleagues at the CJCP to promote our shared goals. I also relish the opportunity to serve during a time in which professionalism is of the utmost importance as we navigate through the COVID-19 pandemic made even more unique and special by the fact this is the last year Chief Justice Melton will serve as chair after announcing his retirement from the Supreme Court effective at the end of the Bar year.”
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Bert Hummel, Lewis BrisboisMr. Hummel may be contacted at
Bert.Hummel@lewisbrisbois.com
As Climate Changes, 'Underwater Mortgage' May Take on New Meaning
August 20, 2014 —
James Tarmy – BloombergLooking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it.
So. If you’re looking to settle down for the long haul, where’s the best place to do it?
Great Plains? You're looking at higher temperatures and more demand for water and energy.
The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment.
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James Tarmy, Bloomberg
Augmented and Mixed Reality in Construction
July 28, 2016 —
Aarni Heiskanen - AEC BusinessAugmented reality (AR) and mixed reality (MR) are in the headlines, thanks to the recent mobile gaming boom. How are these emerging technologies applicable to construction? In this blog post, I present six application areas to consider.
In AR—like Google Glass or Pokémon GO on a mobile device—the visible natural world is overlaid with a layer of digital content. In MR technologies, like Microsoft’s HoloLens or Magic Leap, virtual objects are integrated into and responsive to the natural world. In my earlier post, I wrote about virtual reality (VR), where the real world is replaced by a computer-generated environment.
All the virtual technologies are still in relatively early stages of development. However, they already demonstrate the potential to change how we design, build, commercialize, and use the built environment. I brainstormed six application areas for AR and MR in construction.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Woman Files Suit for Property Damages
January 15, 2014 —
Melissa Zaya-CDJ STAFFDebra Lovejoy filed suit on December 5th 2013 in Virginias Kanawha Circuit Court claiming that her home sustained damaged after a highway was built near her property, according to The West Virginia Record. The West Virginia Water Company, Carpenter Reclamation Inc., and the West Virginia Department of Transportation-Division of Highways were named in the suit.
“Lovejoy claims Carpenter disturbed the contours of the surface, thereby weakening the support for the bank extending along the highway,” reports Kyla Asbury of The West Virginia Record. Asbury continues: “As a result, the bank has slipped significantly over time, according to the suit.” Lovejoy claims the bank needs to be repaired in order to prevent it from further slips, and is pursuing compensation.
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Two-Part Series on Condominium Construction Defect Issues
May 19, 2014 —
Beverley BevenFlorez-CDJ STAFFGregory L. Shelton, construction law attorney at Horack, Talley, Pharr & Lowndes, P.A., wrote a two-part series in the Charlotte Observer about condominium construction defect issues. The first part described “common defects and their consequences,” while the second part explained “how legal time limits can prevent the association or its owners from suing the parties responsible for defective construction.”
If interested in purchasing a condo unit, Shelton recommended hiring a building inspector, though he cautioned that “the inspector should be truly independent. His client should be you and not ‘the sale.’” In the second part, Shelton discussed the complexities of statutes of limitations and statutes of repose.
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