The Flood Insurance Reform Act May be Extended to 2016
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFThe Flood Insurance Reform Act of 2011 (H. R. 1309) has been referred to the House Committee on Financial Services—the first step in the legislative process. The bill, if passed, would extend the program to September 30, 2016. It is currently slated to be terminated September 30 of this year. The bill also contains changes to premium rates, mapping protocols, and privatization initiatives.
H. R. 1309 has garnered the support of several Insurance organizations. Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), sent a letter of support to the Chair and Ranking member of the House Financial Services Subcommittee. “AIA has advocated for a long term reauthorization of the NFIP to protect consumers and help increase stability for real estate transactions and policyholders,” Pusey said. “AIA believes the five-year extension contained in HR 1309, will provide certainty in the flood program thereby increasing consumer and business confidence in the NFIP.”
Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC) spoke out in support of the bill. “For the NFIP to survive, the prices for flood insurance must reflect the actual costs of flood risk for a property,” Grande said. “HR 1309 will provide that transparency. In addition, the Technical Mapping Advisory Council will give communities a voice in the flood mapping process, fostering a better understanding of what flood maps represent and how they are made.”
Read H. R. 1309...
Read the American Insurance Association statement...
Read the NAMIC Press Release...
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Mississippi exclusions j(5) and j(6) “that particular part”
June 07, 2011 —
CDCoverage.comIn Lafayete Ins. Co. v. Peerboom, No. 3:10cv336 (S.D. Miss. June 2, 2011), claimant homeowner Peerboom hired insured contractor Absolute to raise Peerboom’s house two feet to avoid future flooding. While Absolute was raising the house, it fell, resulting in physical injury to the home. Peerboom sued Absolute for negligence, breach of contract, and fraud, seeking damages for the destruction of the home. Absolute’s CGL insurer Lafayette defended under a reservation of rights and filed a declaratory judgment action.
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Reprinted courtesy of CDCoverage.com
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California Mediation Confidentiality May Apply to Third Party “Participants” Retained to Provide Analysis
November 02, 2017 —
Tony Carucci - Snell & Wilmer Real Estate Litigation BlogCalifornia Evidence Code section 1119 governs the general admissibility of oral and written communications generated during the mediation process. Section 1119(a) provides that “[n]o evidence of anything said or any admission made
for the purpose of, in the course of, or pursuant to, a mediation . . . is admissible or subject to discovery, and disclosure of the evidence shall not be compelled, in any . . . civil action . . . .” Cal. Evid. Code § 1119(a) (emphasis added). Similarly, section 1119(b) bars discovery or admission in evidence of any “writing . . . prepared
for the purpose of, in the course of, or pursuant to, a mediation . . . .” Cal. Evid. Code § 1119(b) (emphasis added). Finally, section 1119(c) provides that “[a]ll communications, negotiations, or settlement discussions by and between
participants in the course of a mediation . . . shall remain confidential.” Cal. Evid. Code § 1119(c) (emphasis added).
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Tony Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
Insurer Not Required to Show Prejudice from an Insured’s Late Notice When the Parties Contract for a Specific Reporting Period
September 09, 2019 —
Christopher Raney - Gordon & Rees Insurance Coverage Law BlogThe Fifth Circuit Court of Appeals recently affirmed an order granting summary judgment in favor of the Firm’s insurer client on an issue of first impression in Texas. The issue before the trial court was whether, under Texas law, an insurer is required to demonstrate prejudice resulting from an insured’s failure to comply with an agreed term set in an endorsement to the parties’ insurance contract establishing a specific time limit for an insured to give the insurer notice of a claim.
The case involved alleged damage to an insured’s commercial property from a hailstorm. The insured did not report the alleged loss to its insurer until approximately 17 months after the date of loss. The insurer denied the claim based on a one-year notice requirement in a policy endorsement. The Texas Windstorm or Hail Loss Conditions Amendment Endorsement stated that:
In addition to your obligation to provide us with prompt notice of loss or damage, with respect to any claim where notice of the claim is reported to us more than one year after the reported date of loss or damage, this policy shall not provide coverage for such claims.
The insured sued the insurer in Houston federal court, alleging causes of action for breach of contract and violations of the Texas Insurance Code. The insured argued the insurer was required to show prejudice from the insured’s late notice; the insurer argued that a showing of prejudice was not required. The trial court recognized that this issue had not been decided by the Texas Supreme Court of the Fifth Circuit Court of Appeals.
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Christopher Raney, Gordon & Rees Scully MansukhaniMr. Raney may be contacted at
craney@grsm.com
Digital Twins for a Safer Built Environment
November 24, 2019 —
Cristina Savian - AEC BusinessAs a native of Turin Italy, I was horrified at the Ponte Morandi bridge collapse last year. As a child and as an adult I have travelled over that bridge more times than I can imagine and have often pondered the what-if scenarios. What if it had happened when I or my loved ones were travelling on that bridge? As a chartered construction professional, I ask myself, what could have been done, what should have been done and what can we do to prevent this from happening in the future?
Having access to a digital twin with an integrated understanding of the way the bridge was designed, built and performed over the last 50 years and being able to run “what if” scenarios would have allowed us to have a much greater understanding of the structure and its limitations in its context. This is where I believe a digital twin of any built asset is a step in the right direction.
The digital twin has been proclaimed by many as a milestone innovation in the construction industry, with huge benefits to constructors and owners of assets through efficiencies in manufacturing and operation but also to attracting users of the spaces they replicate. However, digital replicas can take a broad range of forms depending on its purpose, use and application sparking debates among professionals on what they actually are and what represents a ‘true’ twin.
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Cristina Savian, AEC Business
Affirmed: Nationwide Acted in Bad Faith by Failing to Settle Within Limits
July 19, 2017 —
Bethany Barrese – Saxe Doernberger & Vita, P.C.The Eleventh Circuit recently affirmed that Nationwide acted in bad faith by refusing to settle a claim against its insured for the policy limits, exposing the policyholder to an excess verdict.1
The case arose out of a 2005 automobile accident where Seung Park, who was insured by Nationwide, struck and killed another driver, Stacey Camacho. Shortly after the accident, Ms. Camacho’s estate issued a time-limited demand for the full limits of the policy Nationwide issued to Mr. Park, $100,000, to settle the case. After the deadline to respond to the demand expired, Nationwide rejected the demand and made a counteroffer. A settlement could not be reached and a wrongful death suit was filed against Mr. Park, resulting in a massive jury verdict of $5.83 million.
Following the jury verdict, Mr. Park assigned his rights against Nationwide to Ms. Camacho’s estate, which then filed claims for negligence and bad faith failure to settle against Nationwide. The case was tried to a jury, which found in favor of the estate.
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Bethany Barrese, Saxe Doernberger & Vita, P.C.Ms. Barrese may be contacted at
blb@sdvlaw.com
No Signature, No Problem: Texas Court Holds Contractual Subrogation Waiver Still Enforceable
April 10, 2023 —
Gus Sara - The Subrogation StrategistIn Chubb Lloyds Inc. Co. of Tex. v. Buster & Cogdell Builders, LLC, No. 01-21-00503-CV, 2023 Tex. App. LEXIS 676, the Court of Appeals of Texas, First District (Court of Appeals) considered whether the lower court properly dismissed the plaintiff’s subrogation case by enforcing a subrogation waiver in a construction contract which was not fully executed. The contract was signed by only one of the two subrogors and was not signed by the defendant general contractor. The Court of Appeals affirmed the trial court’s decision, holding that despite the lack of signatures, the evidence established mutual assent to the contractual terms by all parties.
The plaintiff’s subrogors, Jeffrey and Mary Meyer (collectively, the Meyers), retained defendant Buster & Codgell Builders (BCB) to expand their residence. BCB drafted a contract using the American Institute of Architects (AIA) standard form contract for residential construction. The AIA contract included, by reference, a subrogation waiver that applied to BCB and its subcontractors. Prior to beginning the work, BCB emailed Jeffrey Meyer a version of the contract that only had one signature block for both Jeffrey and Mary Meyer. Minutes later, BCB sent a second version of the contract which had a signature line for each of the Meyers. However, Jeffrey Meyer signed the first version of the contract and emailed it back to BCB. In the subject line of his email, Mr. Meyers asked that BCB countersign and return the contract. BCB did not sign and return the contract.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
No Bond, No Recovery: WA Contractors Must Comply With WA Statutory Requirements Or Risk Being Barred From Recovery If Their Client Refuses To Pay
September 18, 2018 —
Joshua Lane - Ahlers Cressman & Sleight PLLCThe risk that a contractor’s client may refuse to pay the full contract balance is a day-to-day reality for every contractor. That risk – and the stress it causes in the mind of any contractor – is tempered by the knowledge that Washington statutes provide contractors with ready access to the courts to file a lawsuit and be fully compensated for the work performed. But a recent case provides a grim reminder that the same statutes that giveth court access can also taketh away.
Washington’s Contractor Registration Act (“WCRA”)[1] requires every contractor engaging or offering to engage in services in Washington to register with the Department of Labor and Industries (”L&I”). In order to sue to collect compensation for work or to enforce a contract, a contractor must prove that he/she “was a duly registered contractor and held a current and valid certificate of registration at the time he or she contracted for the performance of such work or entered into such contract.”[2] In order to conclude that a contractor has substantially comply with these requirements, a court must find that:
(1) The department has on file the information required by RCW 18.27.030; (2) the contractor has at all times had in force a current bond or other security as required by RCW 18.27.040; and (3) the contractor has at all times had in force current insurance as required by RCW 18.27.050.[3]
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Joshua Lane, Ahlers Cressman & Sleight PLLCMr. Lane may be contacted at
joshua.lane@acslawyers.com
