Coverage Denied for Ensuing Loss After Foundation Damage
February 07, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insureds attempt to secure coverage for ensuing losses after foundation damage was properly denied by the insurer. Walker v. Nationwide Prop. & Cas. Ins. Co., 2014 U.S. Dist. LEXIS 6683 (W.D. Tex. Jan. 6, 2014).
Two provisions excluding coverage under Nationwide's homeowner's policy were key to the court's decision. Exclusion 3 (e) barred coverage for "continuous or repeated seepage or leakage of water or stem over a period of time . . . ." Exclusion 3 (f) (6) precluded coverage for settling, cracking, shrinking, bulging or expansion of pavements, patios, foundations, walls, floors, roof or ceiling.
The policy also included a Dwelling Foundation Endorsement which covered settling, cracking, bulging of floor slabs or footings that supported the dwelling caused by seepage or leakage of water or steam. This endorsement stated the limit of liability would not exceed an amount equal to 15% of the limit of coverage for the dwelling.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Changes and Extra Work – Is There a Limit?
October 09, 2018 —
Joseph R. Young - Smith CurrieDesign and construction changes can be a challenge for everyone involved in a construction project. Designers and contractors endeavor to deliver a project that meets the owner’s needs, budget, and aesthetic considerations. As a project comes to fruition, the project frequently changes, and the parties must address and resolve the financial considerations of those changes and implement the changes at the project level. Often times the most critical aspect of a contractor’s financial success or failure of a construction project is its ability to manage changes. Contractors are sometimes faced with changes that are beyond the reasonable expectation of the original undertaking and have significant planning, scheduling, and cost implications that may not be considered or addressed in the contract’s changes clause. Changes of this magnitude may be considered “cardinal changes” and provide the contractor with recourse beyond restrictions imposed by the contract’s changes clause. But cardinal change is a risky basis for a contractor to refuse to perform additional or changed work. Even major changes can probably be more safely handled within the terms of the contract’s changes clause.
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Joseph R. Young, Smith CurrieMr. Young may be contacted at
jryoung@smithcurrie.com
California Supreme Court Rights the “Occurrence” Ship: Unintended Harm Resulting from Intentional Conduct Triggers Coverage Under Liability Insurance Policy
June 13, 2018 —
Scott S. Thomas - Payne & Fears Legal AlertSUMMARY
In a ruling that bodes well for policyholders, the California Supreme Court provides much-needed clarity on the question of when a so-called "intentional act" may give rise to insurance coverage under a liability insurance policy. In Liberty Surplus Insurance Corp. v. Ledesma & Meyer Construction Co., Case No. S23765 (Cal. June 4, 2018), the Court holds that an employer's potential liability for negligent hiring, after its employee allegedly abused a 13-year old student, is the result of an "occurrence" and is thus covered under the employer's liability insurance policy.
COURT OPINION
The court's opinion dispels the misguided notion that an intentional act resulting in unintended harm is never an "occurrence" and can never trigger coverage. What matters, according to the Court, is that, from the insured's point of view, the consequences of its conduct are "unexpected, unforeseen, or undesigned" - even if the conduct is intentional. And in a concurring opinion, Justice Liu rightfully questions the legitimacy of the notion that intentional conduct cannot trigger coverage, even when it produces an unintended result, unless, in the words of a 1989 appellate court decision, some "additional, unexpected, independent, and unforeseen happening occurs that produces the damage." As Justice Liu explains, this intervening "happening" may be something as simple as the insured's mistaken belief that he was acting in self-defense, or that the victim had consented to the insured's conduct. This much-needed clarification restores vitality to the fundamental principle that injuries are "accidental" when they are "unexpected, unforeseen, or undesigned," regardless of their cause.
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Scott S. Thomas, Payne & FearsMr. Thomas may be contacted at
sst@paynefears.com
A Community Constantly on the Brink of Disaster
February 06, 2023 —
Jason Daniel Feld - Kahana FeldIn the beautiful coastline region along the famous Pacific Coast Highway between Ventura and Santa Barbara rests the small cottage town of La Conchita. With unobstructed ocean views, this community is only 820 feet wide on a narrow strip of land abutting a 590 feet high cliffside bluff. The bluff has a slope of approximately 35 degrees and consists of poorly cemented marine sediments. This is the perfect recipe for constant disaster from a geological perspective and the site of several major landslides that have devastated this community. Geologic evidence indicates that landslides, which are part of the larger Rincon Mountain slides, have been occurring at and near La Conchita for many thousands of years up to the present with reported landslides beginning as early as 1865. In both 1889 and 1909, the
Southern Pacific Rail Line
running along the coast was inundated. In the 1909 slide, a train was buried. Since that time, other slides have occurred, covering at times cultivated land, roadways, and the community itself. The two most devastating landslides occurred in 1995 and 2005.
1995 Landslide
From October 1994-March 1995, there was double the amount of seasonal rainfall for the area – in excess of 30 inches. The slide occurred on March 3, 1995, when surface cracks in the upper part of the slope opened on the hillside, and
surface runoff was infiltrating into the subsurface. The heavy rains essentially saturated the slope causing a massive slide. On March 4, 1995, the hill behind La Conchita failed, moving tens of meters in minutes, and buried nine homes with no loss of life. The
County of Ventura immediately declared the whole community a
Geological Hazard Area, imposing building restrictions on the community to restrict new construction. On March 10, 1995, a subsequent debris flow from a canyon to the northwest damaged five additional houses in the northwestern part of La Conchita. In total, the slide measured approximately 390 feet wide, 1080 feet long and 98 feet deep. The deposit covered approximately 9.9 acres, and the volume was estimated to be approximately 1.7 million cubic yards of sediment. The devastation was immeasurable and the damage to homes, property and infrastructure was in the millions of dollars to repair. Litigation quickly arose following the 1995 slide with seventy-one homeowners suing the La Conchita Ranch Co. in Bateman v. La Conchita Ranch Co. The judge ruled that irrigation was not the major cause of the slide and that the ranch owners were not responsible.
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Jason Daniel Feld, Kahana FeldMr. Feld may be contacted at
jfeld@kahanafeld.com
Florida Continues Enacting Tort Reforms, This Time Shortening the Statute of Repose
May 01, 2023 —
William L. Doerler - The Subrogation StrategistOn April 13, 2023, Florida’s governor, Ron DeSantis, signed into law
SB 360 which, among other things, shortens the statute of repose period for improvements to real property. The law also revises the date on which the statute of limitations period runs for these types of damage claims. Florida’s revision of this law provides further evidence of the state’s tort reform efforts.
The new law went into effect upon signing and includes the following changes:
- Shortens the statute of repose period set forth in Fla. Stat. § 95.11(3)(c) for actions founded on the design, planning or construction of improvements to real estate from ten (10) to seven (7) years. The statute of repose period runs from the earliest (rather than the latest) of the date: a) the authority having jurisdiction issues a temporary certificate of occupancy; b) a certificate of occupancy; c) a certificate of completion; or d) of abandonment of construction if not completed. Of note, the revised repose period eliminates that date of actual possession by the owner as one of the accrual dates.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Failure to Meet Code Case Remanded to Lower Court for Attorney Fees
May 24, 2011 —
CDJ STAFFJudge Patricia J. Cottrell, ruling on the case Roger Wilkes, et al. v. Shaw Enterprises, LLC, in the Tennessee Court of Appeals, upheld the trial court’s conclusion that “the builder constructed the house in accordance with good building practices even though it was not in strict conformance with the building code.” However, Judge Cottrell directed the lower court to “award to Appellants reasonable attorneys' fees and costs incurred in their first appeal, as determined by the trial court.”
Judge Cottrell cited in her opinion the contract which specified that the house would be constructed “in accordance with good building practices.” However, after the Wilkes discovered water leakage, the inspections revealed that “that Shaw had not installed through-wall flashing and weep holes when the house was built.” The trial court concluded that:
“Separate and apart from the flashing and weep holes, the trial court concluded the Wilkeses were entitled to recover damages for the other defects they proved based on the cost of repair estimates introduced during the first and second trials, which the court adjusted for credibility reasons. Thus, the trial court recalculated the amount the Wilkeses were entitled to recover and concluded they were entitled to $17,721 for the value of repairs for defects in violation of good business practices, and an additional 15%, or $2,658.15, for management, overhead, and profit of a licensed contractor. This resulted in a judgment in the amount of $20,370.15. The trial court awarded the Wilkeses attorneys” fees through the Page 9 first trial in the amount of $5,094.78 and discretionary costs in the amount of $1,500. The total judgment following the second trial totaled $26,973.93.”
In this second appeal, Judge Cottrell concluded, that “the trial court thus did not have the authority to decide the Wilkeses were not entitled to their attorneys” fees and costs incurred in the first appeal.”
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Traub Lieberman Attorneys Recognized in the 2024 Edition of The Best Lawyers in America®
September 06, 2023 —
Traub LiebermanRelated Attorneys:
Lisa L. Shrewsberry,
Brian C. Bassett,
Rina Clemens,
Lauren S. Curtis,
Scot E. Samis,
Anthony Hatzilabrou,
Adam P. Joffe,
Heather Jones,
Ashley Kellgren,
Jessica N. Kull,
Ryan S. Parker,
Nicole E. Shapiro
Traub Lieberman is pleased to announce that five Partners have been selected by their peers for inclusion in the 2024 edition of The Best Lawyers in America®. In addition, seven attorneys have been included in the 2024 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Hawthorne, NY; Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
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Traub Lieberman
ALERT: COVID-19 / Coronavirus-Related Ransomware and Phishing Attacks
April 13, 2020 —
Christopher E. Ballod & Sean B. Hoar - Digital Insights Lewis Brisbois' Data Privacy & Cybersecurity BlogAs with other events that attract societal attention – whether it be an international sporting event like the Olympics or a natural disaster like the Australian bush fires - criminals often utilize the events to exploit consumers’ fears and, in turn, compromise the cybersecurity of businesses nationwide. With the advent of the Coronavirus, criminals have begun to take advantage of what consumers expect to receive via email to conduct phishing attacks. Criminals are also expected to take advantage of millions of vulnerable remote connections from employee home networks to their corporate networks.
According to Proofpoint Inc., a cybersecurity firm, the use of sophisticated Coronavirus-related “phishing” strategies has been on the rise since January, with new malicious email campaigns surfacing each day. These emails, which appear to come from legitimate organizations, contain content such as advice on combatting the Coronavirus, phony invoices for purchases of face masks and medical supplies, advertisements for products that allegedly treat the illness, and phony alerts from the World Health Organization (WHO) or Centers for Disease Control and Prevention (CDC). When the email recipients open these messages, they unknowingly release malware, which allows the attacker to gain access to their personal information and to compromise the security of their employers’ networks.
The recent emergence of Coronavirus-related “phishing” schemes demonstrates that businesses must remain vigilant. Employees and their employers are particularly vulnerable now, in light of the novel nature of the Coronavirus, the paucity of information concerning the illness, and the rapid and significant manner in which it is spreading. Individuals are thirsty for information and advice, and are eager to take any action necessary to protect themselves and their families.
Reprinted courtesy of
Christopher E. Ballod, Lewis Brisbois and
Sean B. Hoar, Lewis Brisbois
Mr. Ballod may be contacted at Christopher.Ballod@lewisbrisbois.com
Mr. Hoar may be contacted at Sean.Hoar@lewisbrisbois.com
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