Cambridge Massachusetts Building Expert Directory

What is Bad Faith?

April 04, 2022 — Stacy M. Manobianca - Saxe Doernberger & Vita, P.C.
As a policyholder, you may have heard the term “bad faith” in the context of litigation against your insurer. Bad faith in the insurance context is a catch-all term for a broad category of claims that can be brought against your insurer. Bad faith claims are common in insurance coverage litigation, and they can be a powerful tool in a policyholder’s arsenal. This post will serve as an introduction to some basic concepts surrounding bad faith litigation.

Bad Faith Defined:

Statutory vs. Common Law Bad Faith Claims
Breach of Contract vs. Tort Bad Faith Claims
Substantive vs. Procedural Bad Faith Claims

Best Practices Throughout the Claims Process:
Involve an Experienced Coverage Attorney
Conclusion

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Reprinted courtesy of Stacy M. Manobianca, Saxe Doernberger & Vita, P.C.
Ms. Manobianca may be contacted at SManobianca@sdvlaw.com

Parking Reform Takes Off on the West Coast

January 23, 2023 — Allan Van Vliet - Gravel2Gavel Construction & Real Estate Law Blog
Starting January 1, 2023, real estate developers in Oregon and California will no longer be required to build off-street parking facilities for certain projects located near public transit. Both states enacted new rules during the course of 2022 which are effective as of the beginning of 2023, and which seek to reduce the costs of building at least some new projects in major population centers. In California, A.B. 2097 was signed by Governor Gavin Newsom in September, and prohibits city governments throughout the state (including in charter cities) from enforcing any local land use provisions which would require the developer to build parking spaces as part of their project if the project is located within one half-mile of a major public transit stop. The law applies to both residential and commercial projects. Cities can continue mandating parking for individual projects if they find that doing so is important to support the development of affordable housing—this exception was added to allay concerns that the bill would undermine “density bonus” programs which have become an important tool for the promotion of new affordable housing development around the state. In Oregon, following a 2020 executive order by Governor Kate Brown, the state Land Conservation and Development Commission (the body responsible for land use and planning regulation in Oregon) embarked on a two-year rulemaking process which culminated in July of 2022 with the approval of a set of “Climate Friendly and Equitable Communities Rules.” Like the California legislation, these rules (in part) limit the ability of Oregon’s most populous cities to enforce parking minimums for new development projects. Unlike the California law, the Oregon rules encourage cities simply to repeal their parking mandates entirely. Cities subject the new rules which choose not to repeal their parking mandates in full must, as an alternative, adopt new local policies to reduce the amount of land dedicated to parking in certain geographies or in connection with certain uses. Read the court decision
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Reprinted courtesy of Allan Van Vliet, Pillsbury
Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com

General Liability Alert: A Mixed Cause of Action with Protected and Non-Protected Activity Not Subject to Anti-SLAPP Motion

February 18, 2015 — Valerie A. Moore, Lawrence S. Zucker II and Blythe Golay – Haight Brown & Bonesteel LLP
In Baral v. Schnitt (filed 2/5/2015, No. B253620), the California Court of Appeal, Second Appellate District, held that California’s anti-SLAPP statute does not authorize the striking of allegations of protected activity in a cause of action that also contains meritorious allegations of non-protected activity not within the purview of the statute. In so holding, the court attempted to resolve, or at least add its voice to, the growing conflict among appellate districts on the issue. A SLAPP lawsuit (Strategic Lawsuit Against Public Participation) seeks to chill or punish the exercise of constitutional rights to free speech and to petition the government for redress of grievances. California’s Legislature enacted the anti-SLAPP statute to permit a defendant to file a special motion to strike as to any cause of action that arises out of an act in furtherance of such rights. In Baral, the plaintiff alleged that his business partner had violated fiduciary duties in usurping the plaintiff’s ownership and management interests in their jointly owned company, so that the defendant could benefit from a secret sale of the company. The complaint alleged that the defendant hired a public accounting firm and prevented the plaintiff from participating in its investigation in order to force the plaintiff's cooperation of the sale of the company. The defendant filed an anti-SLAPP motion, seeking to strike all references to the accounting firm's audit. The trial court denied the motion, on the ground that the anti-SLAPP statute applies to causes of action, not allegations. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Valerie A. Moore, Lawrence S. Zucker II and Blythe Golay Ms. Moore may be contacted at vmoore@hbblaw.com. Mr. Zucker may be contacted at lzucker@hbblaw.com. Ms. Golay may be contacted at bgolay@hbblaw.com. Read the court decision
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Cold Stress Safety and Protection

February 27, 2023 — The Hartford Staff - The Hartford Insights
The best time to think about cold stress safety isn’t when it’s about to snow – it’s actually when it’s still warm out. “Construction firms and other businesses may start to think about protecting workers against the cold when frigid temperatures and the winter are right around the corner. But we’ve found that oftentimes, that may be too late to start thinking about cold stress prevention,” said Chris O’Hala, director of construction Risk Engineering at The Hartford. “Thinking about cold protection months ahead can prevent serious injuries, illnesses or even death.” O’Hala added that possible solutions for cold-related risks, like planning for temporary heat or building temporary enclosures, “require very specific planning, equipment and materials.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable

September 20, 2021 — Garret Murai - California Construction Law Blog
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case. In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise. The Remedial Construction Case In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Walkability Increases Real Estate Values

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
CNBC reported that environmentally-conscious Millennials are looking for homes that are within walking or biking distance to stores and work. The “areas that offer so-called walkability should see more home buyers and renters than those that don't.” "Cities that want to thrive in our new economic and demographic realities will need to find ways to create and support more of these dynamic, productive walkable districts that are in high demand," Geoff Anderson, CEO of Smart Growth America, told CNBC. Anderson, “in conjunction with George Washington University School of Business, released a new report ranking the walkability of the nation's 30 largest metropolitan areas.” Read the court decision
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New Jersey Supreme Court Hears Arguments on Coverage Gap Dispute

October 26, 2017 — Austin D. Moody - Saxe Doernberger & Vita, P.C.
On Tuesday, October 24, the New Jersey Supreme Court heard arguments in a 17-year-old battle over whether Honeywell International Inc. (Honeywell) will have to help cover the costs of asbestos-related injury suits that were filed against it after insurers began to universally exclude coverage for asbestos-related liabilities. The Court considered the arguments made by two excess insurers, St. Paul Fire and Marine Insurance Co. (St. Paul) and parent Travelers Casualty and Surety Co. (Travelers), that the Court should overturn a state appellate court’s ruling that Honeywell does not have to contribute to these costs. During the course of this case, Honeywell has sought coverage under more than 300 different policies, ultimately settling with all insurers except St. Paul and Travelers, who had issued a total of 10 excess policies to Honeywell’s predecessor, Bendix Corp. (Bendix) between 1968 and 1983. Honeywell has only sought coverage for claims made by individuals who allege that they were first exposed to asbestos prior to 1987. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

Consequential Damages Can Be Recovered Against Insurer In Breach Of Contract

July 22, 2019 — David Adelstein - Florida Construction Legal Updates
In a favorable case for insureds, the Fifth District Court of Appeal maintained that “when an insurer breaches an insurance contract, the insured is entitled to recover more than the pecuniary loss involved in the balance of the payments due under the policy in consequential damages, provided the damages were in contemplation of the parties at the inception of the [insurance] contract.” Manor House, LLC v. Citizens Property Insurance Corp., 44 Fla. L. Weekly D1403b (Fla. 5thDCA 2019) (internal citations and quotation omitted). Thus, consequential damages can be recovered against an insurer in a breach of contract action (e.g., breach of the insurance policy) if the damages can be proven and were in contemplation of the parties at the inception of the insurance contract. In Manor House, the trial court entered summary judgment against the insured holding the insured could not seek lost rental income in its breach of contract action against Citizens Property Insurance because the property insurance policy did not provide coverage for lost rent. However, the Fifth District reversed this ruling because the trial court denied the insured the opportunity to prove whether the parties contemplated that the insured, an apartment complex owner, would suffer lost rental income (consequential damages) if the insurer breached its contractual duties. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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