Chinese Hunt for Trophy Properties Boosts NYC, London Prices
January 21, 2015 —
Vinicy Chan – BloombergWhat do New York’s most famous hotel, the Lloyd’s of London building and the headquarters of the U.K.’s top law firm have in common? They’re all owned by Chinese insurers.
This new breed of buyers, who weren’t allowed to invest overseas before 2012, are flooding into the global market for prime commercial real estate after being given more freedom to deploy their $1.6 trillion of assets. That has meant good times for sellers of trophy real estate in major cities.
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Vinicy Chan, BloombergMs. Chan may be contacted at
vchan91@bloomberg.net
Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition
April 19, 2022 —
David Chidlaw & Carina Novell - Sheppard Mullin Construction & Infrastructure Law BlogOn March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”
[1]
Brief History Lesson
The Davis-Bacon Act was enacted in 1931 and requires the payment of locally prevailing wages and fringe benefits on federal construction contracts. The law applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration, or repair of public buildings or public works.[2]
From the 1930s to the early 1980s, the DOL used the following three-step process to define prevailing wage:
- Any wage rate paid to a majority of workers.
- If there was no wage rate paid to a majority of workers, then the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers (i.e., the “30 percent rule”).
- If the 30 percent rule was not met, the weighted average rate.
Reprinted courtesy of
David Chidlaw, Sheppard Mullin and
Carina Novell, Sheppard Mullin
Mr. Chidlaw may be contacted at dchidlaw@sheppardmullin.com
Ms. Novell may be contacted at cnovell@sheppardmullin.com
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Whether Subcontractor's Faulty Workmanship Is an Occurrence Creates Ambiguity
March 16, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Ohio Court of Appeals determined that the CGL policy was ambiguous as to whether a subcontractor's faulty workmanship was an "occurrence." Ohio N. Univ. v. Charles Constr. Serv., 2017 Ohio App. LEXIS 258 (Ohio Ct. App. Jan. 23, 2017).
In 2007, Ohio Northern University (ONU) entered a contract with Charles Construction Services, Inc. (CCS) to construct a hotel on the campus. In 2011, the building was completed, but ONU found water intrusion and moisture damage in the interior. When remediating the water damage, ONU found additional, serious structural defects.
ONU sued CCS, alleging breach of contract, breach of express warranty, and negligent misrepresentation. CCS filed a third-party action against many of its subcontractors. Cincinnati Insurance Company (CIC) intervened and filed a cross-claim for a declaratory judgment that it had no duty to provide coverage to CCS. CIC and ONU filed cross motions for summary judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurance Law Alert: Ambiguous Producer Agreement Makes Agent-Broker Status a Jury Question
September 10, 2014 —
Valerie A. Moore & Christopher Kendrick - Haight Brown & Bonesteel LLPIn Douglas v. Fidelity National Ins. (No. A137645; filed 8/29/14), a California appeals court held that it was a jury question whether a retail insurance service with limited binding authority should be deemed a broker or an agent for the purpose of determining if application misrepresentations would void coverage.
In Douglas, the homeowners needed insurance for a house they had used as a group home. They sought coverage from Cost-U-Less, which provided personal lines insurance from, among others, Fidelity National Insurance Company. According to the couple’s wife, she went to a Cost-U-Less office where she answered application questions from a person on the telephone, who was later identified as an employee of another company, InsZone.
InsZone had a producer contract with Fidelity. In practice, InsZone would be contacted by Cost-U-Less via telephone, at which point an InsZone employee would verbally solicit information from the client, with the information being entered into a computer by the InsZone employee and then transmitted electronically to Fidelity.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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New York Appellate Court Addresses “Trigger of Coverage” for Asbestos Claims and Other Coverage Issues
November 30, 2020 —
Paul A. Briganti - Complex Insurance Coverage ReporterOn October 9, 2020, the New York Supreme Court, Appellate Division, Fourth Department, decided an appeal from a trial court’s 2018 summary judgment ruling on a number of coverage issues arising out of asbestos-related bodily injury claims against plaintiffs Carrier Corporation (Carrier) and Elliott Company (Elliott). See Carrier Corp. v. Allstate Ins. Co., No. 396 CA 18-02292, Mem. & Order (N.Y. Sup. Ct. App. Div. 4th Dep’t Oct. 9, 2020).
The Fourth Department reversed the trial court’s ruling that, under New York’s “injury in fact trigger of coverage,” injury occurs from the first date of exposure to asbestos through death or the filing of suit as a matter of law. The parties agreed that, because the policy language at issue required personal injury to take place “during the policy period,” “the applicable test in determining what event constitutes personal injury sufficient to trigger coverage is injury-in-fact, ‘which rests on when the injury, sickness, disease or disability actually began.’” Id. at 3 (quoting Cont’l Cas. Co. v. Rapid-American Corp., 609 N.E.2d 506, 511 (N.Y. 1993)). The Fourth Department concluded that, in resolving the issue, the trial court erred by relying on inapposite decisions in other cases where: (1) the parties had stipulated or otherwise not disputed that first exposure triggered coverage[1]; or (2) the issue had not been resolved on summary judgment, but rather at trial based on expert medical evidence[2]. The Fourth Department further explained that, even if plaintiffs here had met their initial burden on summary judgment by submitting admissible evidence that asbestos-related injury actually begins upon first exposure, the defendant-insurer’s opposition – which included affidavits of medical experts contradicting that evidence and averring instead that “harm occurs only when a threshold level of asbestos fiber or particle burden is reached that overtakes the body’s defense mechanisms” – raised a triable issue of fact. Id. at 4. The Fourth Department also rejected plaintiffs’ argument that the defendant-insurer was collaterally estopped on the “trigger” issue by a California appellate court’s decision in Armstrong World Industries, Inc. v. Aetna Casualty & Surety Co., 52 Cal. Rptr. 2d 690 (Cal. Ct. App. 1996). The Fourth Department reasoned that the issues litigated in the two cases were not identical because, among other things, California and New York “apply different substantive law in determining when asbestos-related injury occurs.” Carrier, Mem. & Order at 4.
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Paul A. Briganti, White and Williams LLPMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
OSHA/VOSH Roundup
August 31, 2020 —
Christopher G. Hill - Construction Law MusingsIn an unusual flurry of occupational safety related activity, the Virginia courts decided two cases in the last week relating to either the review of occupational safety regulations themselves or their enforcement.
In Nat’l College of Business & Technology Inc. v. Davenport (.pdf), the Virginia Court of Appeals considered what constitutes a “serious” violation of the exposure to asbestos Virginia Occupational Safety & Health (VOSH) regulations. The facts found by the Salem, Virginia Circuit Court were that employees of the petitioner college were exposed to asbestos insulation when they were required to enter a boiler room to retrieve paper files. However, no evidence was presented regarding the length of time or level of exposure at the Circuit Court level. Despite the lack of evidence regarding the level or extent of exposure, the Circuit Court upheld the VOSH citation for exposure and the level of violation at a “serious” level with the attendant penalty.
The Virginia Court of Appeals disagreed with the second finding. The appellate court determined that the lack of evidence regarding the level of exposure (whether length or extent) made the serious level violation an error. The Court stated that merely presenting evidence that asbestos is a carcinogen is not enough given the number of carcinogenic materials in existence and then remanded the case back to Circuit Court to reconsider the penalty level.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New Jersey Senate Advances Bad Faith Legislation
July 18, 2018 —
TLSS Insurance Law BlogNew Jersey is the latest to join the list of states that have enacted or are considering enacting legislation that would authorize policyholders to file civil suits against first-party insurers for unfair business practices, such as unreasonably delaying or denying benefit payments, engaging in false advertising, or otherwise committing a wide range of unfair or deceptive practices.
On June 7, the New Jersey Senate passed a bill entitled the New Jersey Insurance Fair Conduct Act. The Act would create a new statutory cause of action pursuant to which a first-party insurer would be liable for bad faith based on a single statutory violation, thereby entitling an aggrieved policyholder to collect triple damages and attorneys’ fees. The proposed legislation is now before the state’s General Assembly for further consideration.
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Traub Lieberman Straus & Shrewsberry LLP
Three Construction Workers Injured at Former GM Plant
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFIn Linden, New Jersey, three construction workers were injured “when they were apparently struck by steel girders while working at the former General Motors site” police told NJ.com.
Mayor Richard Gerbounka stated that the “[s]ix struts that would support the deck or ceiling of a warehouse collapsed.” He also mentioned that the city “has been trying to redevelop the former General Motors site for years, but has run into several obstacles, including lawsuits from nearby businesses opposed to retail construction.”
Several construction vehicles were “nearly buried under” debris and “[a]t least one I-beam girder and several decking struts—all metal—remain across several heavy construction vehicles,” NJ.com reported. The owner of the vehicles stated “he was told that workers were standing around the vehicles preparing to start their day when high winds knocked down at least one I-beam and several metal decking struts.”
In another article published late afternoon on March 26th, NJ.com reported that “high winds” were the cause of the accident. “The federal Occupational Safety and Health Administration is investigating the accident and all work at the site has been suspended pending the investigation,” according to the article. “Officials said OSHA inspectors had been at the scene once before, but declined to give details because of a continuing investigation.”
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