Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter
October 10, 2013 —
Tred Eyerly — Insurance Law HawaiiThe Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013).
The insured received two letters from the EPA notifying it of potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter was received in January 2008, and stated that the EPA sought the insured's cooperation in its investigation of the release of hazardous substances at the site. The letter enclosed an extensive, 82-question "Information Request" seeking information about the insured's current and former activities at the site. The letter informed the insured that its voluntary cooperation was sought, but compliance with the Information Request was required by law and failure to respond could result in an enforcement action and civil penalties of $32,500 per day. The insured tendered the 104 (e) letter to St. Paul and requested a defense and indemnity pursuant to the CGL policy. St. Paul declined to provide a defense because the letter did not constitute a "suit," which was required by the policy to trigger the duty to defend.
The second letter from the EPA, received in November 2009, was entitled "General Notice Letter for the Portland Superfund Site" and notified the insured that it was a "potentially responsible party ("PRP").
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Trial Date Discussed for Las Vegas HOA Takeover Case
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFJeff German of the Las Vegas Review-Journal reported that Justice Department attorneys filed papers January 28th demanding the trial involving 11 defendants charged in a scheme to take over the Las Vegas Valley homeowners associations to be held no later than September 2nd. The prosecutors claimed “they have gone out of their way to ease the burden on the defense as they have turned over mountains of evidence in the past year.”
However, the defense attorneys allege that they need “at least a year and likely more time” to go through the “more than 3 million pages of documents” and to create a trial strategy, according to German. The defense “asked for an initial late January 2015 trial date.”
The case involves charges against “lawyers, former police officers and corrupt board members” for “packing HOA boards to gain legal and construction defect contracts for themselves.”
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Construction Defect Fund Approved for Bankrupt Las Vegas Builder
February 11, 2013 —
CDJ STAFFA federal bankruptcy judge has given his approval to a fund set up to settle potential construction defect claims as a Las Vegas home builder, America West Development, works its way out of bankruptcy. The U.S. Trustee had objected to the trust fund's structure, and claimed that it was insufficiently independent from America West. Judge Mike Nakagawa found no legal objections to the trust.
The trust will be initially funded from $1.5 million of the $10 million that Lawrence Canarelli will be paying to buy back the company he founded. Construction defect claims against the company could possibly reach $20.9 million. The Las Vegas Review-Journal reports that the fund "could pick up funding from certain legal claims and insurance.
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Owner Bankruptcy: What’s a Contractor to Do?
February 28, 2018 —
Troy R. Covington and Stephen M. Parham - Construction Executive MagazineBankruptcy of the owner or developer of a real estate construction project can be very unsettling to contractors. But a declaration of bankruptcy by the developer, in and of itself, does not constitute a breach of contract such that the contractor can stop working. Contract provisions providing that the contract is terminated if a party becomes insolvent or files for bankruptcy are generally unenforceable.
Partially-performed construction contracts are executory contracts, meaning that the obligations of the parties to the contract have not yet been fully performed. The Bankruptcy Code allows a bankruptcy trustee (in a Chapter 7 dissolution case) or the debtor-in-possession (in a Chapter 11 reorganization case) either to assume or to reject an executory contract. A debtor-in-possession has until the time of the confirmation of its plan of reorganization to decide if it will assume or reject the contract. The contractor may ask the bankruptcy court to require the debtor-in-possession to make a decision on the contract sooner, but the court will most likely give the debtor-in-possession a fair amount of time to make the decision.
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Troy R. Covington and
Stephen M. Parham, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Covington may be contacted at sparham@bloomparham.com
Mr. Parham may be contacted at tcovington@bloom-law.com
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Spencer Mayer Receives Miami-Dade Bar Association's '40 Under 40' Award
March 04, 2024 —
Lewis Brisbois NewsroomMiami, Fla. (February 23, 2024) – Miami Associate Spencer Mayer received the 2024 Miami-Dade Bar Association Young Lawyers Section’s '40 under 40' Award at the association's annual "Miami Nights" event on February 22.
Mr. Mayer serves on the Board of Directors of the Miami Dade Bar Association’s Young Lawyers Section. Lewis Brisbois was a proud sponsor of this event, which raised funds for the organization's community service initiatives and pro bono programming.
Mr. Mayer is a member of the General Liability Practice. His practice focuses on all aspects of civil litigation, including complex commercial litigation, products liability, premises liability, wrongful death, catastrophic injury, and insurance coverage.
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Lewis Brisbois
No Coverage for Faulty Workmanship Based Upon Exclusion for Contractual Assumption of Liability
August 06, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Supreme Court for West Virginia determined the policy's contractual assumption exclusion barred coverage for the general contractor based upon claims of faulty workmanship. J.A. St & Assocs. v. Bitco Gen. Ins. Corp., 2019 W. Va. LEXIS 205 (May 1, 2019).
J.A. Street & Associates, Inc. entered a contract with the developer, Thundering Herd Development, L.L.C., to build a commercial shopping center on seventy-eight acres of land. Street agreed to oversee the site preparation for the development and the construction of many of the buildings. Thundering Herd retained an engineering firm, S&ME, Inc. to do geotechnical exploration and to provide advice regarding land preparation for the shopping center. Thundering Heard also entered an agreement with the Target Corporation to construct a store on a pad to be prepared at the shopping center.
Street hired subcontractors to prepare the site by grading the land and installing fill material. A slope was constructed at the rear of the proposed Target site, but it failed, causing a landslide, damage to the pad, and damage to adjacent property owned by a third party. Thundering Heard incurred $721,875 in additional costs to repair this slope, reconstruct the Target site, and compensate the neighbor for the damage to the adjacent property.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
What to Expect From the New Self-Retracting Devices Standard
November 29, 2021 —
Andre Pelland - Construction ExecutiveOne of the latest and most anticipated changes to occur this year relevant to fall protection is the publishing of the ANSI/ASSP Z359.14 2021 revision. Although the effective date isn’t until August 2022, this change is prompting the need for end user to prepare for using and understanding the new terminology performance requirements that will ultimately alter equipment selection criteria.
The reason for its relevance is mostly due to its industry dependence and the increasing popularity of these types of devices. This voluntary consensus standard accounts for a vast portion of the fall protection market equipment and has been adopted as the industry standard, even though it is not the legal requirement. To assure a smooth transition, the immediate priority should be to understand the changes and what it means from a usability standpoint. A clear understanding of what changes devices need to comply will allow users to proceed with a comprehensive transition plan.
What Are the Most Relevant Changes for the User?
Classes
The most significant changes are for Class A and B devices used to designate arrest distances and forces and the introduction of the Class 1 and 2 devices. These classes were known as designators for arresting falls at 24 inches and under with higher forces (Class A), and 54 inches and under with lower forces (Class B). Class 1 devices allow anchoring on overhead anchorages only and limitg freefall to no more than two feet.
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Andre Pelland, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Pelland may be contacted at
andre.pelland@puresafetygroup.com
From the Ground Up
March 06, 2022 —
Maggie Murphy - Construction ExecutiveAs a veteran of the U.S. Marine Corps, Mari Borrero knows a thing or two about stepping up to a challenge. She describes her time in the military as “one of those milestones that changes your life,” and credits the experience with turning her from a self-described “entitled teenager” into the woman she is today: fearless, bold and relentless in pursuit of her dreams.
A career in the construction industry was never on the table for Borrero, who, after being honorably discharged from the Marine Corps, worked as a hospice-care coordinator and then a teacher in support of her then-third-grade son. The common thread in all these occupations? A genuine desire to put the needs of others before her own. Today, Borrero says she can’t imagine doing anything other than what she now calls work—owning and operating a construction business, Auburn, Washington–based American Abatement & Demo.
Easing Transitions
Born in Bayamón, Puerto Rico, Borrero was five when her mother moved the family to Dallas to seek life-saving treatment at Children’s Medical Center Dallas for her brother, who had a rare kidney disease. A local church supported the family, providing housing, food and clothing until they were able to transition into their own space.
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Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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