New York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material Terms
February 15, 2021 —
Gregory S. Capps & Marianne E. Bradley - White and Williams LLPIn the long-tail insurance context, it is not unusual to have issues arise addressing “lost” or “missing” policies. In an opinion issued on January 22, 2021, a New York court ruled that an insurer did not owe coverage to its insured for underlying asbestos claims because the insured had failed to establish the material terms of a “lost” policy under which it sought coverage for the underlying claims. The lawsuit, Cosmopolitan Shipping Company, Inc. v. Continental Insurance Company,[1] arose out of a coverage dispute between Plaintiff Cosmopolitan Shipping Co., Inc. (Cosmopolitan) and its insurance carrier, Continental Insurance Company (CIC), in connection with bodily injury claims arising out of asbestos exposure. The case provides a good analysis of what an insured must do to establish coverage under a “lost” or “missing” policy.
During and after World War II, Cosmopolitan chartered and operated a number of shipping vessels on behalf of United Nations Relief and Rehabilitation Administration (UNRRA). In the 1980s, seamen who had worked on board Cosmopolitan’s vessels between 1946 and 1948 filed lawsuits against Cosmopolitan seeking damages for injuries arising out of alleged exposure to asbestos on Cosmopolitan’s vessels. Cosmopolitan sought coverage from CIC for the claims, alleging that CIC had insured Cosmopolitan’s vessels during the relevant time period under a protection and indemnity policy issued to the UNRAA (the P&I Policy).
Reprinted courtesy of
Gregory S. Capps, White and Williams LLP and
Marianne E. Bradley, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Ms. Bradley may be contacted at bradleym@whiteandwilliams.com
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Insurer's Motion to Dismiss Complaint for Collapse Coverage Fails
March 22, 2018 —
Tred R. Eyerly.- Insurance Law HawaiiThe insurer's motion for summary judgment seeking dismissal of the insured's claim for collapse coverage was rejected by the Supreme Court of New York. Parauda v. Encompass Ins. Co. of Am., 2018 N.Y. Misc. LEXIS 269 (N.Y. Sup. Ct. Jan. 25, 2018).
The insureds submitted a claim to Encompass for damage to the brick siding, or façade, of their home, which was bulging near the front door. Encompass hired H2M Architects and Engineers to inspect the home and issue a report. H2M determined that the brick façade near the front door was separated from the house. Photos showed that the bricks had separated, the mortar joints were cracked, and there were cracks and deterioration in the mortar. H2M concluded that the brick façade was in poor condition and need repairs and/or replacement. H2M concluded that the separation of the brick façade was caused by water infiltration behind the wood trim and brick façade, occurring over a several year period. Encompass denied the claim based upon exclusions for "freezing, thawing," "wear and tear," and "inadequate maintenance."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
In Appellate Division First, New York Appellate Team Successfully Invokes “Party Finality” Doctrine to Obtain Dismissal of Appeal for Commercial Guarantors
December 23, 2024 —
Dean Pillarella - Lewis BrisboisNew York, N.Y. (November 20, 2024) - In Roc-Le Triomphe Associates, LLC v. DeSouza, 2024 NY Slip Op 05654 (1st Dep’t 2024), Associate Dean Pillarella, a member of the Appellate Practice, successfully invoked the party finality doctrine to obtain the dismissal of an appeal for the firm’s commercial guarantor clients.
The action concerned rent allegedly due and owing under a commercial lease by the lease’s tenant and guarantors. Pursuant to a 2022 order, the guarantors were awarded summary judgment and dismissal of all claims against them, with the landlord’s claims against the tenant left intact. After the decision and order was served with notice of entry by the prevailing party, the landlord did not file a notice of appeal from the order but, instead, filed a notice of appeal from a later judgment months after the time to appeal the order had expired.
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Dean Pillarella, Lewis BrisboisMr. Pillarella may be contacted at
Dean.Pillarella@lewisbrisbois.com
Arizona Court of Appeals Awards Attorneys’ Fees in Quiet-Title Action
September 20, 2017 —
Kevin Walton - Snell & Wilmer Real Estate Litigation BlogIn Arizona, a party successfully quieting title to property may recover its attorneys’ fees if it satisfies three requirements: (1) the party requests a quitclaim deed from the party adversely claiming title twenty days before bringing the quiet-title action; (2) the party tenders five dollars for the execution and delivery of the deed; and (3) the adverse party fails to comply. Ariz. Rev. Stat. § 12-1103(B). Recently, in McCleary v. Tripodi, No. 2 CA-CV 2016-0145, 2017 WL 3723472 (Ariz. Ct. App. Aug. 29, 2017), the Arizona Court of Appeals awarded attorneys’ fees to the prevailing party under this statute.
In McCleary v. Tripodi, Mrs. Tripodi, who became the administrator of her husband’s estate upon his death, wrongfully recorded three deeds purporting to transfer property to herself. After unsuccessfully attempting to get Mrs. Tripodi to quitclaim the property, the plaintiffs filed a quiet-title action. The trial court agreed that the plaintiffs were the legal and rightful owners, granted summary judgment in plaintiffs’ favor, and awarded attorneys’ fees to the plaintiffs.
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Kevin Walton, Snell & Wilmer
Claims Against Broker Dismissed
June 20, 2022 —
Tred R. Eyerly - Insurance Law HawaiiClaims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022).
The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs a homeowners and fire policy far in excess of $100,000 for their condominium unit, which was worth in excess of $600,000. Century moved to dismiss
A fire in the building forced all owners to vacate their units. The entire building was thereafter declared unsafe for habitation by the City of New York. The condominium owners met and voted to not restore the building, but to sell the burnt-out shell and distribute the sales proceeds and the condominium's insurance among the unit owners. There was no indication that the owners would not be made whole once the funds were distributed.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Executive Orders Expedite the Need for Contractors to Go Green
August 22, 2022 —
Vince Calio - Construction ExecutiveThe importance of going green just became even more crucial for small construction companies, as President Joe Biden signed three executive orders on June 6, 2022, aimed at boosting clean energy construction projects and the use of domestically manufactured clean energy technology.
Specifically, the orders require the U.S. Department of Energy to deploy the use of the Defense Production Act of 1950 to expand American manufacturing of solar panel parts, environmentally friendly building insulation, heat pumps, equipment for making clean power-generating fuels and critical power grid infrastructure. Federal construction contracts will also require local contractors to use eco-friendly materials.
According to an announcement from the White House, the order will encourage the use of project labor agreements that offer wages “above and beyond the prevailing rate and include local hire provisions.” The order will also encourage clean construction projects in low-income areas burdened by legacy pollution.
Reprinted courtesy of
Vince Calio, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Florida’s “Groundbreaking” Property Insurance Reform Law
April 18, 2023 —
Bradley S. Fischer & Laura Farrant - Lewis BrisboisFort Lauderdale, Fla. (April 18, 2023) – On December 16, 2022, Florida Governor Ron DeSantis signed into law Senate Bill 2-A (S.B. 2-A, or the Act). Widely touted as “groundbreaking,” S.B. 2-A reforms many aspects of the claims process, including the timing for paying and adjusting claims, eliminating one-way attorneys’ fee awards, and banning assignment-of-benefits agreements. This alert provides an overview of the key provisions of S.B. 2-A. Unless otherwise stated in each amended statute, December 16, 2022 appears to be the effective date of the Act.
I. Assignment of Benefits – Section 627.7152 (effective January 1, 2023)
- A policyholder may not assign any post-loss insurance benefits under any residential or commercial property insurance policy. Any attempt to assign such benefits is void, invalid, and unenforceable.
Reprinted courtesy of
Bradley S. Fischer, Lewis Brisbois and
Laura Farrant, Lewis Brisbois
Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com
Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com
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Corps Issues Draft EIS for Controversial Alaskan Copper Mine
March 27, 2019 —
Pam Radtke Russell - Engineering News-RecordA proposed copper and gold mine in Alaska could impact up to 12,000 acres of wetlands as well as local fisheries but would help meet a worldwide demand for copper, according to the draft environmental impact statement on the Pebble Mine in the Bristol Bay area of Alaska.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com