The Preservation Maze
June 12, 2023 —
Sofya Uvaydov - Kahana & Feld LLPTo appropriately preserve an issue for appeal is frankly confusing to many attorneys due to differing rules depending on the issue or procedural posture (presumably why appellate attorneys are more commonly used during trial). On May 25th, the US Supreme Court handed down Dupree v. Younger, 598 U.S. __ (2023) clarifying preservation requirements from denied summary judgment orders. When a federal court denies summary judgment on sufficiency of evidence grounds, a party must raise the argument again post-trial to preserve it for appeal as per the Court’s prior ruling in Ortiz v. Jordan, 562 U.S. 180 (2011). When a court denies summary judgment on a purely legal issue, the Court unanimously held that the issue is preserved in an appeal from a final judgment without having to raise it again post-trial. The Supreme Court distinguished this from their prior rule in Ortiz by explaining that sufficiency or factual issues which were previously denied at summary judgment must be evaluated based on the totality of the evidence adduced at trial. A purely legal issue decided on summary judgment is not changed by factual evidence at trial.
Read the court decisionRead the full story...Reprinted courtesy of
Sofya Uvaydov, Kahana & Feld LLPMs. Uvaydov may be contacted at
suvaydov@kahanafeld.com
Disruption: When Did It Start and Where Will It End?
June 25, 2019 —
Brian Gallagher - Construction ExecutiveIf change is the only constant—as was famously observed by a Greek philosopher circa 500 B.C.—then why single out some changes as “disruption”?
Disruption is about more than just technology; it’s about more, even, than the rapid rollout and development of technology in the past couple of decades. The word disruption refers to processes or products that are fundamentally different from what is currently in use and that render unforeseen, large-scale changes. Early discussions of disruption (the term was coined by Harvard Business School professor Clayton M. Christensen in a 1995 Harvard Business Review article) compared incremental change in existing systems, which are usually supported by established corporations, to innovations that start out as something completely fresh, limited in their appeal and flawed in initial iterations.
The construction industry was—and still is—late to adopt most technologies and late in experiencing overall disruption. It also lags behind other industries when it comes to efficiency and productivity. McKinsey reported that construction is one of the “least digitized industries in the world,” despite employing approximately 7% of the world’s working-age population and representing one of the world economy’s largest sectors. Disruption is likely to be fast approaching now, even for the construction industry. But its delay may confer the benefit of allowing construction companies to learn from other industries’ mistakes.
Reprinted courtesy of
Brian Gallagher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Insurers Subrogating in Arkansas Must Expend Energy to Prove That Their Insureds Have Been Made Whole
July 30, 2019 —
Michael J. Ciamaichelo - The Subrogation StrategistArkansas employs the “made whole” doctrine, which requires an insured to be fully compensated for damages (i.e., to be “made whole”) before the insurer is entitled to recover in subrogation.[1] As the Riley court established, an insurer cannot unilaterally determine that its insured has been made whole (in order to establish a right of subrogation). Rather, in Arkansas, an insurer must establish that the insured has been made whole in one of two ways. First, the insurer and insured can reach an agreement that the insured has been made whole. Second, if the insurer and insured disagree on the issue, the insurer can ask a court to make a legal determination that the insured has been made whole.[2] If an insured has been made whole, the insurer is the real party in interest and must file the subrogation action in its own name.[3] However, when both the insured and an insurer have claims against the same tortfeasor (i.e., when there are both uninsured damages and subrogation damages), the insured is the real party in interest.[4]
In EMC Ins. Cos. v. Entergy Ark., Inc., 2019 U.S. App. LEXIS 14251 (8th Cir. May 14, 2019), EMC Insurance Companies (EMC) filed a subrogation action in the District Court for the Western District of Arkansas alleging that its insureds’ home was damaged by a fire caused by an electric company’s equipment. EMC never obtained an agreement from the insureds or a judicial determination that its insureds had been made whole. In addition, EMC did not allege in the complaint that its insureds had been made whole and did not present any evidence or testimony at trial that its insureds had been made whole. After EMC presented its case-in-chief, the District Court ruled that EMC lacked standing to pursue its subrogation claim because “EMC failed to obtain a legal determination that its insureds had been made whole . . . prior to initiating this subrogation action.” Thus, the District Court granted Entergy Ark., Inc.’s motion for judgment as a matter of law and EMC appealed the decision.
Read the court decisionRead the full story...Reprinted courtesy of
Michael J. Ciamaichelo, White and Williams LLPMr. Ciamaichelo may be contacted at
ciamaichelom@whiteandwilliams.com
Nevada’s Construction Defect Law
March 05, 2015 —
Beverley BevenFlorez-CDJ STAFFConstructive Dive reported on the effects of Nevada’s new construction defect law, which is a revision of the original 1995 Homeowners Protection Act: “The new rules more tightly define ‘defect,’ strike the requirement for the losing party to pay the other’s legal fees, and require homeowners to be much more specific about the defects they claim.” Furthermore, it reduces “the length of time a homeowner has to make a construction-defects claim at six years, down from the 10-year statute of limitations in the original law.”
Arizona, Colorado, Florida, and Washington legislators are debating revising their current construction defect laws, according to Construction Dive. “If the Colorado measure passes, homeowners will have to go through arbitration before they’ll be allowed to sue their builders. The proposal in Washington would require the owner making the claim to have a third-party professional inspect the defect before filing a suit,” Construction Dive reported.
Read the court decisionRead the full story...Reprinted courtesy of
Why Insurers and Their Attorneys Need to Pay Close Attention to Their Discovery Burden in Washington
March 28, 2018 —
Neal Philip – Insurance Law BlogAs previously reported in this blog, Washington case law generally affords insureds a broad right to the discovery of claim file materials, including information that should be protected from disclosure by attorney/client privilege or the work product doctrine.
Cedell v. Farmers Ins. Co. of Washington, 176 Wn.2d 686, 295 P. 3d 239 (2013). The discovery pitfalls created by
Cedell were on full display in a recent Western District of Washington decision that granted an insured’s motion to compel production of work product and attorney/client communications from an insurer’s claims file.
Westridge Townhomes Owners Ass’n v. Great American Assur. Co., 2018 U.S. Dist. LEXIS 27960 (W.D. Wash. February 21, 2018)
The background facts are somewhat unclear, but it appears that the insured in this case made a claim for coverage under two insurance policies and there was an allegedly inadequate response from the insurers. The insured sued its insurers for coverage in 2016 before the insurers issued a declination of coverage letter. The two insurers retained the same attorney to represent them, and that attorney subsequently wrote a declination letter on behalf of the insurers, which was sent to the insured on April 12, 2017. The insured ultimately sought production of the entire claim file, which had not been split between the claim investigation and the coverage litigation. The insurers argued, among other things, that the insured was not entitled to anything after the litigation commenced in 2016 on work product grounds, and certainly was not entitled to communications with their attorney.
Read the court decisionRead the full story...Reprinted courtesy of
Neal Philip, Gordon, Reese, Scully, & MansukhaniMr. Philip may be contacted at
nphilip@grsm.com
Design Professional Needs a License to be Sued for Professional Negligence
January 13, 2017 —
David Adelstein - Florida Construction Legal Updates“With regard to claims for professional negligence, the Florida Supreme Court has explained that ‘where the negligent party is a professional, the law imposes a duty to perform the requested services in accordance with the standard of care used by similar professionals in the community under similar circumstances.’” Sunset Beach Investments, LLC v. Kimley-Horn and Associates, 42 Fla. L. Weekly D130a (Fla. 4th DCA 2017) quoting Moransais v. Heathman, 744 So.2d 973, 975-76 (Fla. 1999).
When it comes to professional negligence, two things are important:
1) the person being sued is a professional under the law (person has special education, training, experience, and skill) and
2) the standard of care for that professional (e.g, licensed, professional engineer).
In a recent case, an engineering intern—not, a licensed, professional engineer–was sued for professional negligence. The Fourth District Court of Appeal held that an engineering intern is not a person that can be sued for professional negligence, unlike a licensed, professional engineer. Sunset Beach Investments, supra.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
OSHA COVID-19 Vaccination and Testing ETS Unveiled
November 19, 2021 —
Donna Reichle - Construction ExecutiveAssociated Builders and Contractors today released the following statement on the Occupational Safety and Health Administration’s issuance of its COVID-19 vaccination and testing Emergency Temporary Standard, which applies to employers with 100 or more employees as required by President Biden’s Path Out of the Pandemic COVID-19 Action Plan.
“The OSHA ETS is likely to increase compliance costs and cause regulatory burdens that will exacerbate several headwinds facing the construction industry—which is currently facing a workforce shortage of 430,000, escalating materials prices and supply chain bottlenecks—and the American economy,” says Ben Brubeck, ABC vice president of regulatory, labor and state affairs. “We are currently reviewing the 490-page rule and related documents from the Biden-Harris administration in order to thoroughly evaluate its impact on our membership and the construction industry.”
Reprinted courtesy of
Donna Reichle, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Ms. Reichle may be contacted at
reichle@abc.org
First Lumber, Now Drywall as Canada-U.S. Trade Tensions Escalate
November 30, 2016 —
Katia Dmitrieva – BloombergA new trade dispute has broken out between Canada and the U.S. that threatens to raise prices in Canada’s already overheated housing markets.
The Canada Border Services Agency imposed a provisional tariff as high as 277 percent on U.S. drywall imports in September after ruling that manufacturers were dumping the product, or selling it below the price in their home market, undercutting local suppliers.
The tariff has raised the price of drywall, or gypsum board as it’s also called, by as much as 30 percent and is causing “chaos” and delays as contractors scramble for alternative sources. Some builders say the tariff could add as much as C$13,000 ($9,671) to the cost of a new home, which would amount to a C$2.6 billion increase to the roughly 200,000 homes built in Canada each year.
Read the court decisionRead the full story...Reprinted courtesy of
Katie Dmitrieva, BloombergMs. Dmitrieva may be followed on Twitter @katiadmi