Haight’s San Diego Office is Growing with the Addition of New Attorneys
June 21, 2024 —
Haight Brown & Bonesteel LLPThe San Diego office has recently added two attorneys to the team.
Amanda McKechnie has joined the Construction Law Practice Group. Amanda has extensive experience representing national developers, owners, general contractors, design professionals and subcontractors in complex construction litigation.
Arash Yahyai has joined the Construction Law and General Liability Practice Groups. Arash focuses on defending actions involving complex construction defect, insurance defense, premises liability, product liability, catastrophic personal injury and other general liability related cases.
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Haight Brown & Bonesteel LLP
Illinois Court Determines Duty to Defend Construction Defect Claims
March 22, 2021 —
Tred R. Eyerly - Insurance Law HawaiiGiven the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).
Metropolitan was hired as the general contractor for construction, renovation and demolition at contiguous properties - the 1907 Property, 1909 Property, and 1911 Property. During construction activities, the structures on the 1907 Property and 1909 Property collapsed. The existing structures on the properties were later deemed unsafe and were demolished by the city of Chicago.
AIG insured the owner of the buildings and paid over $1.8 million for repairs and associated expenses arising from the collapse. AIG then invoked its rights of subrogation against Metropolitan by filing suit. Metropolitan tendered the suit to its insurer, Lloyd's, who denied coverage and filed for a declaratory judgment. The trial court found the underlying complaint alleged property damage, but not an occurrence. Summary judgment was awarded to Lloyd's.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Design & Construction Case Expands Florida’s Slavin Doctrine
January 21, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Amanda Baggett of Rogers Towers, Florida’s “Fourth District Court of Appeal appears to have expanded the Slavin doctrine in the context of design professional liability” in the case McIntosh v. Progressive Design and Engineering, Inc. (Jan. 7, 2015). McIntosh, a personal injury case, involved whether the design and construction of an intersection with multiple traffic signals in close proximity created confusion for drivers.
Baggett stated that McIntosh expanded the Slavin doctrine in two ways: “first, the ruling eliminates the requirement that the ultimate owner of a project accept the project before the Slavin doctrine may be invoked. Second, the decision applies the Slavin doctrine to completed and accepted design plans without regard to the completion of the project for which they were prepared.”
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Hunton Insurance Coverage Group Ranked in National Tier 1 by US News & World Report
December 21, 2020 —
Hunton Insurance Recovery BlogThe Hunton Andrews Kurth Insurance Coverage Practice Group has been awarded Tier 1 ranking by US News Media Group and Best Lawyers, placing them among the top practitioners nationally for policyholder insurance coverage representation. In addition to its Tier 1 ranking nationally, the Firm also received a regional Tier 1 ranking in Washington, DC and a Tier 2 ranking in Atlanta, GA.
Reprinted courtesy of
Hunton Andrews Kurth LLP
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Number of Occurrences Depends on Who is Sued
August 20, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to David L. Beck of Pillsbury Winthrop Shaw Pittman LLP (as published by Association of Corporate Counsel), an Oregon court “held that property damage incurred to a condominium project resulting from a myriad of construction defects constituted just one occurrence under the relevant excess general liability policy.”
In Chartis Specialty Ins. Co. v. American Contractors Ins. Co Risk Retention Group, et al., Chartis argued that “[b]ecause there were multiple defects/conditions resulting in property damage” there were also “multiple occurrences.” However, “[t]he court disagreed, finding that despite various defects, the property damages at issue arose from just one occurrence: the developers' failure to perform its duties.”
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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
Los Angeles Wildfires Will Cause Significant Insured Losses, Ranking Amongst the Most Destructive in California's History
January 14, 2025 —
Morningstar DBRSWildfires currently burning in the Pacific Palisades, Eaton, Hurst and other Los Angeles neighborhoods will cause significant losses for the insurance industry, in
Morningstar DBRS’ view. The fires have already burned more than 1,100 homes and threaten more than 28,000 additional structures, according to local fire officials. Preliminary estimates point to total insured losses in excess of $8 billion depending on the final number of properties being affected by the wildfires. By way of comparison, the 2018 Woolsey Fire, which destroyed 1,643 structures just north of Los Angeles, caused more than $6 billion in property damages at that time. Morningstar DBRS expects the ongoing wildfires to have a negative but manageable impact on major property insurers active in the Californian market, with the impact somewhat mitigated by their use of reinsurance and their high degree of diversification. Similarly, losses should be manageable for the global reinsurance industry and not affect their credit profiles.
While leading U.S. property insurers are in good financial condition, the California property insurance market has been challenging because of high wildfire and other natural catastrophe risks combined with regulatory restrictions on coverage and pricing, leading many insurers to re-think their product offering, including an outright exit from the market. For example, market leaders such as State Farm and Allstate started reducing their exposure to the California market beginning 2022-2023. It is therefore possible that a larger than usual portion of the losses caused by the wildfires will be uninsured or may be covered under the California FAIR Plan, which is designed to provide fire coverage up to $3 million per home and spread the risk across the industry when it is not available from traditional carriers.
This event reinforces the need for adequate rate increases on home insurance in California, based on forward-looking pricing and catastrophe modelling, as well as for additional fire prevention and mitigation initiatives. However, property insurance affordability is likely to remain a challenge in the state going forward, with many property owners opting to remain uninsured or under-insured because of the high costs.
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Time To “Construct” New Social Media Policies
March 28, 2022 —
Aaron C. Schlesinger, Lauren Rayner Davis & Jennifer Harris - ConsensusDocs1. The Social Media Dilemma
Social media has significantly impacted all facets of society, especially the way people communicate. Its impact and application to the construction industry is no different. TikTok, the video-sharing platform, is one of the world’s most popular platforms today, with over one billion active users monthly. From just one video, users can gain thousands—if not millions—of followers overnight. Social media has been used to present a narrative that the workplace can be fun, or that employees are enjoying working together. Social media can also, however, serve as a tool to document a perfect storm of events, such as a building collapse or crane malfunction, which can then be misconstrued and smeared throughout the internet, all with your company’s logo in the background.
So, what happens when an incident on your jobsite is branded across social media as a #constructionfail, and the project owner ultimately initiates legal action? Can this video be used against your company? Can employers limit or otherwise restrict employees’ social media activity to avoid potential liability? How does the existence of social media posts affect dispute resolution procedures?
Reprinted courtesy of
Aaron C. Schlesinger, Peckar & Abramson, P.C. (ConsensusDocs),
Lauren Rayner Davis, Peckar & Abramson, P.C. (ConsensusDocs) and
Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs)
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
Ms. Harris may be contacted at jharris@pecklaw.com
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