New Jersey Legislation Would Bar Anti-Concurrent Causation Clause in Homeowners' Policies
June 08, 2020 —
Tred R. Eyerly - Insurance Law HawaiiA bill prohibiting the use of anti-concurrent causation clauses in homeowners' insurance policies has been introduced before the New Jersey legislature. The bill is
here.
Under an anti-concurrent causation clause, the policy bars coverage if two perils (i.e., wind and water damage) contribute to a loss and one peril is excluded from coverage. For example, wind damage alone may be covered, while water damage is excluded. If both wind and water contribute to the loss, regardless of the degree to which each peril contributes, the anti-concurrent causation clause would bar coverage.
New Jersey S 217 states,
An insurer authorized to transact the business of homeowners insurance in this state shall not exclude coverage in a homeowners insurance policy for loss or damage caused by a peril insured against under the terms of the policy on the grounds that the loss or damage occurred concurrently or in any sequence with a peril not insured against under the terms of the policy. Any such provision to exclude coverage shall be void and unenforceable.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Properly Trigger the Performance Bond
January 04, 2018 —
David Adelstein - Florida Construction Legal UpdatesOriginally Published by CDJ on January 5, 2017
A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract.
A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why?
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Minnesota Civil Engineers Give the State's Infrastructure a "C" Grade for the Second Time
May 02, 2022 —
American Society of Civil EngineersSAINT PAUL, Mn. — The Minnesota Section of the
American Society of Civil Engineers (ASCE) today released preliminary findings from the 2022
Report Card for Minnesota's Infrastructure, with 10 categories of infrastructure receiving an overall grade of a 'C', meaning Minnesota's infrastructure is in mediocre condition. Minnesota has taken steps to make its infrastructure network more sustainable to withstand increasingly severe weather, but additional steps must be taken as the state's infrastructure is aging. Funding has been limited for systems throughout the state, particularly for surface transportation networks, and local and state funding must be increased to bring these critical systems up to speed. Civil engineers graded aviation (B), bridges (C), dams (C), drinking water (C-), energy (C), parks (B-), ports (C-), roads (D+), transit (C-) and wastewater (C).
"The ASCE report card serves as an important benchmark for where our infrastructure currently stands and lays out how we can make improvements," said Sen. Sandy Pappas, DFL-St. Paul. "Knowing that these systems play such a crucial role in economic progress and the safety of Minnesotan families, we have made infrastructure a topline issue and must continue to do so to secure a prosperous future here in Minnesota."
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Boots on the Ground- A Great Way to Learn and Help Construction Clients
May 02, 2022 —
Christopher G. Hill - Construction Law MusingsThis past week, I attended the Construction Law and Public Contracts seminar in Charlottesville, VA and also a breakfast meeting of the Richmond chapter of the Associated General Contractors of Virginia. Reflecting on this past week, I realized that my membership and participation in both of these great organizations (I am a member of the Board of Governors for the state bar section and the Executive Committee for the Richmond District of AGC-VA) not only provides great marketing and friendship opportunities, participation helps my construction clients in ways that a singular online marketing and interactive path would not (even with the growth of social media).
Among other benefits (including case digests and the insightful newsletter), being a member of the Construction Law and Public Contracts section helps my clients in numerous ways, not the least of which is the ability to network and gain the perspective of many of the great construction attorneys here in Virginia. The ability to bounce legal thoughts off of others for their perspectives gives me the benefit of their experiences and, importantly to my clients, allows me to be more efficient in my research and arguments because of their insight.
Additionally, as a solo construction attorney, knowing other attorneys in other parts of the Commonwealth of Virginia gives me a network of trusted lawyers to whom I can safely and confidently refer a case where a conflict exists or other factors (like geography) make such a referral a benefit to a construction firm in need of legal assistance on a particular matter.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
$48 Million Award and Successful Defense of $135 Million Claim
June 04, 2024 —
Peckar & AbramsonPeckar & Abramson is proud to have represented one of the nation’s largest general contractors in the achievement of a $48 million award in its favor and the denial of a $135 million claim against it in Federal Court in the Middle District of Florida on May 3, 2024 arising out of the FDOT’s $2.3 billion reconstruction of I-4, a P3 project and the Department’s largest project ever in the State of Florida.
After a 2-week bench trial, P&A secured the favorable decision which found that the general contractor client was entitled to recover $48 million on its affirmative claim against the party who initiated the lawsuit and that it did not breach its fiduciary duties and was not grossly negligent as was claimed which resulted in a denial of the initiating party’s $135 million claim in its entirety.
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Peckar & Abramson
Californians Swarm Few Listings Cuts to Affordable Homes
September 24, 2014 —
John Gittelsohn and Nadja Brandt – BloombergThe 160 units at Santa Monica, California’s Belmar Apartments received 4,600 applications ahead of the project’s July opening, a measure of the competition for scarce affordable housing.
The Related Cos. project, where two-bedroom units rent for $946 a month, is among the last built with financing from redevelopment agencies, the taxpayer-backed programs that Governor Jerry Brown eliminated three years ago to help balance California’s budget. Without that source of $1 billion a year, the state’s supply of funds for building low- and moderate-income housing is running dry as real estate prices surge.
“The abolishment of the redevelopment agencies by Governor Brown is the single biggest problem” for affordable housing, said William Witte, president of Related’s California division, which also is seeking buyers for condominiums next to Belmar with an average price of $2.4 million. “Since there’s little to no help from the federal government, the loss of redevelopment funds is devastating.”
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Ms. Brandt may be contacted at nbrandt@bloomberg.net
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John Gittelsohn and Nadja Brandt, Bloomberg
Jury Convicts Ciminelli, State Official in Bid-Rig Case
August 14, 2018 —
Engineering News-RecordAfter a four-week trial but with less than two days of deliberation, a Manhattan federal jury convicted Louis Ciminelli, former head of the now-defunct Buffalo, N.Y., contractor LPCiminielli, and Alain Kaloyeros, the fired ex-head of SUNY Polytechnic Institute in Albany, N.Y., of fraud and conspiracy in a scheme to rig bids on a $750-million upstate New York manufacturing project.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Endorsement to Insurance Policy Controls
March 28, 2022 —
David Adelstein - Florida Construction Legal UpdatesI’ve said this before, and I’ll say it again: an insurance policy is a complicated reading and this reading gets compounded with endorsements that modify aspects of the policy.
What you think may be covered may in fact not be covered by virtue of an endorsement to the insurance policy. This is why when you request an insurance policy you want to see the policy PLUS all endorsements to the policy. And when you analyze a policy, you need to do so with a full reading of the endorsements.
An endorsement to an insurance policy will control over conflicting language in the policy. Geovera Speciality Ins. Co. v. Glasser, 47 Fla.L.Weekly D436a (Fla. 4th DCA 2022) (citation omitted).
The homeowner’s insurance coverage dispute in Glasser illustrates this point. Here, the policy had a water loss exclusion. There was an exception to the exclusion for an accidental discharge or overflow of water from a plumbing system on the premises. But there was an endorsement. The endorsement modified the water loss exclusion to clarify that the policy excluded water damage “in any form, including but not limited to….” Examples were then given which did not include the accidental discharge or overflow of water from a plumbing system.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com