Vermont Supreme Court Finds COVID-19 May Damage Property
November 07, 2022 —
Michael S. Levine & Lorelie S. Masters - Hunton Insurance Recovery BlogAs reported on this
blog, policyholders have long been of the view that the presence of substances like COVID-19 and its causative virus SARS-CoV-2, which render property dangerous or unfit for normal business operations, should be sufficient to trigger coverage under commercial all-risk insurance, as has been the case for more than 60 years.
However, many courts, federal courts in particular, despite decades of pro-policyholder precedent, have embraced the view that “viruses harm people, not [property].” Thirty-one months after the start of the pandemic, the first state high court has gone in a different direction, according greater weight to pro-policyholder precedent.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Lorelie S. Masters, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com
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HB 20-1046 - Private Retainage Reform - Postponed Indefinitely
May 04, 2020 —
David M. McLain – Colorado Construction LitigationOn Tuesday, February 18th, the Colorado House Business Affairs & Labor Committee voted 10-0 to postpone indefinitely House Bill 1046. If it had been enacted, HB 1046 would have required, for all for all construction contracts of at least $150,000:
- A property owner to make partial payments to the contractor of any amount due under the contract at the end of each calendar month or as soon as practicable after the end of the month;
- A property owner to pay the contractor at least 95% of the value of satisfactorily completed work;
- A property owner to pay the withheld percentage within 60 days after the contract is completed satisfactorily;
- A contractor to pay a subcontractor for work performed under a subcontract within 30 calendar days after receiving payment for the work, not including a withheld percentage not to exceed 5%;
- A subcontractor to pay any supplier, subcontractor, or laborer who provided goods, materials, labor, or equipment to the subcontractor within 30 calendar days after receiving payment under the subcontract; and
- A subcontractor to submit to the contractor a list of the suppliers, sub-subcontractors, and laborers who provided goods, materials, labor, or equipment to the subcontractor for the work.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Fee Simple!
November 11, 2024 —
Daniel Lund III - LexologyFollowing the grant of summary judgment by a Nebraska federal court on a construction claim, the prevailing subcontractor sought recovery of attorney’s fees, but received pushback from its opponent based upon the Federal Rules of Civil Procedure.
The general contractor urged “that attorney’s fees are ‘special damages’ that must be specifically pleaded within a complaint under Federal Rule of Civil Procedure 9(g).” The GC said that a prayer for “a judgment for… costs, interest, and attorney’s fees be entered” – without further asserting a statutory or factual basis for the recovery – is insufficient. The subcontractor shot back that “it complied with the requirements of Rule 9(g) because its prayer for relief expressly referenced attorney’s fees, and the request for such fees was based on the facts asserted in the pleadings themselves.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Oklahoma Finds Policy Can Be Assigned Post-Loss
April 26, 2021 —
Tred R. Eyerly - Insurance Law HawaiiOklahoma joined the majority of court in finding that after a loss occurs, the insured can assign the policy to another. Johnson v. CSAA Gen. Ins. Co., 2020 Okla LEXIS 118 (Okla. Dec. 15, 2020).
Johnson's property was damaged in a storm. She filed a claim with her insurer. She also executed an assignment of her claim in order to repair the property with the execution of assignment to Triple Diamond Construction LLC. An appraiser retained by Triple Diamond determined the storm damage was $36,346.06. The insurer paid only $21,725.36 for the loss.
Johnson and Triple Diamond sued the insurer for breach of contract, seeking $14,620.70, not inclusive of interest, attorneys' fees and costs. The insurer filed a motion to dismiss, or an alternative motion for summary judgment to dismiss Triple Diamond as a party. The insurer argued that both the policy and an Oklahoma statute barred the assignment. The district court granted the insurer's motion.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer’s Confession Of Judgment Through Post-Lawsuit Payment
June 25, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe recent opinion in the property insurance coverage dispute, Bryant v. Geovera Specialty Ins. Co., 44 Fla.L.Weekly D1232a (Fla. 4thDCA 2019), discusses the doctrine known as an insurer’s “confession of judgment.” In this case, an insured suffered water damage from a pipe leak. The insurer paid the insured $6,000 because of sublimits in the property insurance policy. There was a $5,000 sublimit for mold and a $1,000 sublimit for water leakage that occurs over a period of 14 days or more. The insured sued the insurer for covered water damage arguing that the sublimits did not apply.
After the lawsuit was filed, an agreed order was entered that stayed the case pending an appraisal. The appraisal award did not apply the $1,000 sublimit to the water damage from the pipe leak and segregated out damage for mold. (The insurer already paid the mold sublimit). The insurer ended up paying the appraisal award for the water damage caused by the pipe leak after deducting its pre-lawsuit sublimit payment. The insurer paid the award and did NOT challenge the application of the $1,000 sublimit in court, although it could have since coverage issues are decided by courts.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Issue and Claim Preclusion When Forced to Litigate Similar Issues in Different Forums: White River Village, LLP v. Fidelity and Deposit Company of Maryland
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Often in construction litigation the parties wish to move the case to arbitration. However, there are certain circumstances in which such change of litigation forums should be carefully analyzed. The case of White River Village, LLP v. Fidelity and Deposit Company of Maryland, serves as an example of one of those circumstances.
In March 2013, U.S. District Court Judge Blackburn ruled on a motion for summary judgment filed by Fidelity and Deposit Company of Maryland (“F&D”). The order grants the motion in part and denies it in part. White River Village, LLP (“White River”) was the owner of the project which hired S&S Joint Venture (“S&S”), the contractor, to build two similar developments, directly adjacent to each other. The contracts between Whiter River and S&S for the two projects were so substantially similar that the court referred to them as the S&S Contracts. F&D issued payment and performance bonds guarantying the obligations of S&S under the S&S Contracts.
After S&S defaulted on the construction contracts, F&D, as the surety, undertook to complete performance on the contracts. White River alleged that F&D was liable for construction defects and delays in completing the project, and failed to fulfill its obligations under the performance bonds after it overtook the construction of the projects.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
The Future Has Arrived: New Technologies in Construction
October 17, 2022 —
Sarah Biser - ConsensusDocsThe construction industry has traditionally been slow to adapt to new technologies, but things are changing.
Construction companies are keen to control costs (including increased costs due to supply chain issues), improve efficiency, maintain productivity while dealing with labor shortages, and enhance safety, and protect data bases from cyberattacks. New technologies, including robotics, 3D printing, cloud and mobile computing, augmented reality, blockchain, and cybersecurity, are helping construction companies achieve those goals.
Here are some key takeaways.
Augmented Reality (AR) vs. Virtual Reality
Augmented Reality is a technology that superimposes a computer generated image upon a user’s view of the real work. Virtual Reality, on the other hand, creates a virtual environment to replace the real one.
AR has uses in many industries. For example, shoppers using AR can see what furniture or appliances will look like in their own homes and offices. Medical professionals can also use the technology to visualize organs and simulate procedures prior to operations.
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Sarah B. Biser, Fox Rothschild LLP (ConsensusDocs)Ms. Biser may be contacted at
sbiser@foxrothschild.com
Pensacola Bridge Halted Due to Alleged Construction Defects
July 21, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.The Pensacola News Journal reported that cracks were discovered again in the Pensacola Bay Bridge, which caused construction of said bridge to be halted once more: “Cracks found in a portion of the concrete in the Pensacola Bay Bridge project have twice halted construction in the last several months, raising concerns about oversight and disclosure from the state, particularly in light of the Miami bridge collapse earlier this year.”
The Florida Department of Transportation stated “that the cracks were found during a routine visual inspection of newly placed concrete in March,” according to the Pensacola News Journal. The $400 million project began in 2017 and was scheduled to be completed by 2020.
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