Resolving Subcontractor Disputes with Pass-Through Claims and Liquidation Agreements
May 13, 2024 —
Stephanie Cooksey - Peckar & Abramson, P.C.Imagine a project where you are unable to reach final completion due to an unresolved subcontractor claim. If the project owner is responsible for the claim, and both the owner and subcontractor are entrenched in their positions, how would you resolve this dispute?
The default option is a three-party lawsuit where the subcontractor sues you in your capacity as general contractor. By denying the claim, you bring the owner into the lawsuit as a liable party to the subcontractor’s claim. This option is efficient from the judicial system’s perspective, as it means one lawsuit instead of two. The subcontractor cannot sue the owner since the two have no contract between them. Thus, the subcontractor’s recourse is limited to suing the contractor. In the three-party lawsuit, you argue that if the subcontractor prevails in its claim against you, the owner is liable. If the owner successfully defends against the claim, the subcontractor takes nothing.
Putting judicial economy aside, it may not make economic sense for contractors to have a lawyer involved in litigating a case where they have no skin in the game. Fortunately, there is a better option than the three-party lawsuit on multi-party construction projects.
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Stephanie Cooksey, Peckar & Abramson, P.C.Ms. Cooksey may be contacted at
scooksey@pecklaw.com
Karen Campbell, Kristen Perkins to Speak at CLM 2020 Annual Conference in Dallas
March 02, 2020 —
Karen Campbell & Kristen Perkins - Lewis BrisboisNew York Partner Karen L. Campbell and Fort Lauderdale Partner Kristen D. Perkins will both speak at the upcoming CLM 2020 Annual Conference taking place March 18 to 20 at the Gaylord Texan Resort outside Dallas, Texas.
On March 19 at 2:00 p.m., Ms. Perkins will join a panel discussion titled “Predictive Analytics – You Don’t Need a Crystal Ball to Predict the Future,” exploring how predictive analytics affects litigation management programs, including case budgets, case cycle times, and claims outcomes. The panelists will also look at how machine learning picks up on nuances or anomalies that can affect analytics and give attendees a clearer picture on expected case parameters, and how that information can empower claims professionals during firm selection.
Then, on March 20 at 10:40 a.m., Ms. Campbell will join a roundtable discussion titled “How to Calculate Damages and Defend in Serious Injury Cases,” covering the calculation of both economic and non-economic damages, as well as trends and recent verdicts involving punitive damages and assessing the various types of third-party liability.
Reprinted courtesy of
Karen Campbell, Lewis Brisbois and
Kristen Perkins, Lewis Brisbois
Ms. Campbell may be contacted at Karen.Campbell@lewisbrisbois.com
Ms. Perkins may be contacted at Kristen.Perkins@lewisbrisbois.com
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Sales of Existing U.S. Homes Unexpectedly Fell in January
February 22, 2018 —
Sho Chandra – BloombergSales of previously owned U.S. homes unexpectedly fell in January to a four-month low, indicating a shortage of available properties is increasingly hindering the real-estate industry, a National Association of Realtors report showed Wednesday.
Sales growth is limited by an acute shortage of inventory, which is pushing up home prices faster than wage growth. The group noted that property prices have jumped 41 percent over the past five years, while wages have gained 12 percent.
If the current pace of sales continues -- which NAR doesn’t anticipate -- purchases would be lower than in 2017. At the same time, steady hiring and elevated confidence to make large purchases, as well as tax cuts that are boosting Americans’ take-home pay, are expected to sustain demand for housing in much of the nation.
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Sho Chandra, Bloomberg
Manhattan Developer Breaks Ground on $520 Million Project
November 18, 2011 —
CDJ STAFFRebuilding an area of Midtown West that has been condemned for decades, the Gotham Organization has broken ground on a 1,200-unit project that will include housing for a variety of household incomes and a school. One unit of the project will be affordable housing for families of annual incomes up to $40,000. Another will be for middle-income households. Additionally, there will be a 31-story tower with 550 luxury units.
The site CityBiz quotes Mayor Michael Bloomberg, as saying that the project “will grow our economy by creating 2,900 construction-related jobs.” The president of the Gotham Organization, David L. Picket notes that it will “create hundreds of new jobs, generate millions of dollars in revenue for the construction industry, contribute towards the building of a new primary, and provide homes to thousands of New Yorkers.”
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Tenants Who Negligently Cause Fires in Florida Beware: You May Be Liable to the Landlord’s Insurer
May 13, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Zurich Am. Ins. Co. v. Puccini, LLC, 2019 Fla. App. LEXIS 1487, 44 Fla. L. Weekly D 383, Florida’s Third District Court of Appeals considered whether a landlord’s carrier, Zurich American Insurance Company (Zurich), was precluded from pursuing a subrogation claim against the landlord’s tenant, Puccini, LLC (Puccini), for fire-related damages. After the fire, Zurich paid its insured, Lincoln-Drexel Waserstein, Ltd. (Lincoln), over $2.1 million. Zurich then proceeded with an action against Puccini. Puccini filed for summary judgment arguing that it was an additional insured under the Zurich policy. The trial court agreed with Puccini and dismissed the action. Zurich then appealed the case to Florida’s Third District Court of Appeals. Finding that the lease contemplated both liability on the part of the tenant and indemnification in favor of the landlord, the court held that the tenant was not an implied co-insured under Zurich’s policy. Thus, the court allowed Zurich’s subrogation action.
The Sutton Doctrine Extension of the Anti-Subrogation Rule
In the United States, most states have adopted an anti-subrogation rule either by statute or through common law. Under an anti-subrogation rule, an insurer may not pursue its insured for monies paid to the insured. While some states limit their anti-subrogation rule to apply only to the named insured, other states have expanded the rule to include parties listed as additional insureds, and even, in some instances, implied insureds (those parties not specifically listed, but still considered an insured under the applicable policy).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Hunton Andrews Kurth Promotes Insurance Recovery Lawyer Andrea (Andi) DeField to Partner
April 05, 2021 —
Lorelie S. Masters - Hunton Insurance Recovery BlogEffective April 1, 2021, Hunton Andrews Kurth LLP has promoted insurance recovery lawyer,
Andi DeField, and six other attorneys, to
partner. “Andi has been a superstar in our practice since the day she arrived,” said insurance recovery practice head,
Walter Andrews, adding that “Andi’s promotion reflects the incredible hard work she has contributed to the practice and outstanding results she has achieved for our clients over the years.” A native of Miami, Andi ascended through the ranks at Hunton in its Miami office, joining the firm as a contract lawyer before earning promotions to associate, counsel and, now, partner. But Andi’s rapid ascension did not come without much hard work. Since joining the firm, “Andi has, year after year, consistently knocked the cover off the ball in terms of her tireless work ethic, the superior results she has achieved and her extraordinary aptitude for marketing herself, our practice and the firms many other practices,” said insurance recovery partner,
Mike Levine. Levine added, “Andi is an amazing lawyer and a true champion for her clients. I’m proud to now call her my partner.”
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Lorelie S. Masters, Hunton Andrews KurthMs. Masters may be contacted at
lmasters@HuntonAK.com
Court Affirms Duty to Defend Additional Insured Contractor
December 05, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the lower court's ruling that the insurer must defend. Main St. Am. Assurance Co. v. Merchants Mut. Ins. Co., 2022 N.Y. App. Div. LEXIS 5507 (N.Y. App. Div., Oct. 7, 2022).
XL Construction Services, LLC was the contractor on a construction project. Timothy J. O'Connor was insured when performing drywall finishing as a self-employee subcontractor on the project. As part of a written indemnification and insurance agreement between the parties, O'Connor was obligated to obtain insurance for the benefit of XL Construction. O'Connor was insured by Merchants Mutual Insurance Company under a policy containing an additional insureds endorsement that provided coverage to a party where required by a written agreement, but "only with respect to liability for 'bodily injury' . . . caused in whole or in part, by . . . [O'Connor's] acts or omissions."
The trial court found there was a duty to defend and entered judgment that Merchants Mutual was obligated to provided a defense to XL Construction.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Condominiums and Homeowners Associations Remain Popular Housing Choices for U-S Homeowners
July 11, 2022 —
Community Associations InstituteFalls Church, Va., July 06, 2022 (GLOBE NEWSWIRE) -- Maintenance-free, safety, and cleanliness are top features that make community associations a popular choice and lifestyle for millions of Americans. According to results from the 2022 Homeowner Satisfaction Survey, the overwhelming majority (89%) of homeowners and condominium association residents rate their overall experience of living in a community association as "very good" or "good" (67%), or neutral (22%).
At a time when community matters most, the majority (87%) said they knew their home was part of a community association and nearly half (45%) said the association made them more interested in the home. Eighty-seven percent of respondents believe that their governing board "absolutely" or "for the most part" serves the best interest of the community. More than half of residents (68%) believe that rules in their communities protect and enhance property values.
Results from almost identical national surveys conducted in 2005, 2007, 2009, 2012, 2014, 2016, 2018, 2020, and 2022 are strikingly consistent. The online survey of 1,507 homeowners and condominium association members nationwide with oversampling was conducted in in four states: Illinois, New York, North Carolina and Washington.
About Community Associations Institute
Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 43,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial.
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