Texas Windstorm Insurance Agency Under Scrutiny
April 05, 2011 —
Beverley BevenFlorez CDJ STAFFRepresentative Larry Taylor has introduced a bill in the Texas Legislature (HB 2818) that would further regulate the Texas Windstorm Insurance Agency (TWIA). According to Taylor, “In order to be adequately prepared for future hurricane seasons, it is imperative that TWIA be operating at maximum efficiency, that the Reserve Trust Fund be solvent and that the agency have adequate management measures in place to protect consumers and ensure that claims are paid in a timely manner. House Bill 2818 is an important step in the right direction toward restoring public confidence in TWIA.”
HB 2818 includes measures that would create an expert panel that would advise the commissioner on how to evaluate loss from the storm, and a greater transparency of TWIA Board meetings and actions.
In addition, the Texas Department of Insurance (TDI) has placed TWIA on Administrative Oversight. According to TDI, “While under Administrative Oversight, the Department may require its prior review and approval of executive decisions, certain expenditures, and other transactions. The insurer is required to fully cooperate with the Department and provide complete and timely disclosure of all information responsive to Department requests.”
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U.K. Puts Tax on Developers to Fund Safer Apartment Blocks
March 08, 2021 —
Emily Ashton & Olivia Konotey-Ahulu - BloombergThe U.K. announced an extra 3.5 billion pounds ($4.8 billion) toward the cost of stripping dangerous cladding from apartment blocks in England, with a new tax on developers from next year to help cover the costs.
Housing Secretary Robert Jenrick said the new cash will add to a previously announced 1.6 billion-pound “safety fund” to remove the material, which was blamed for the deaths of 72 people in a catastrophic fire at London’s Grenfell Tower in 2017.
A new tax will be introduced for U.K. residential developers in 2022 to raise at least 2 billion pounds over the next decade to ensure homebuilders “make a fair contribution” to solving the problem, Jenrick told the House of Commons on Wednesday.
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Emily Ashton, Bloomberg and
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Road to Record $199 Million Award Began With Hunch on Guardrails
June 17, 2015 —
Patrick G. Lee – BloombergIt started with a hunch about malfunctioning highway guardrails. It led to the biggest known whistle-blower award in U.S. history.
Joshua Harman, a Virginian with two small highway safety companies, made a discovery in late 2011 that perhaps only a guardrail maker could: A big competitor had changed the dimensions of its roadside safety device by as much as an inch here and there, he said, without telling federal regulators.
As designed, Trinity Industries Inc.’s ET-Plus system was meant to turn the end of a guardrail into a de facto shock absorber. The altered units, as Harman saw it, were locking up when hit, spearing cars and their occupants.
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Patrick G. Lee, Bloomberg
Beyond the Disneyland Resort: Museums
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFNorth Orange County has a variety of interesting museums from intimate to extravagant to peruse.
Bowers Museum, located in Santa Ana, has several special exhibitions on display around WCC Seminar: Endurance: The Antarctic Legacy Of Sir Ernest Shackleton And Frank Hurley, American Visionary: John F. Kennedy’s Life And Times, Gemstone Carvings: The Masterworks Of Harold Van Pelt, And First Americans: Tribal Art From North America.
Muzeo, a Museum and Cultural Center located in Anaheim, will be showcasing the Trash Artist Challenge Expo & Exhibition from May 12th -27th, and also has on permanent display Anaheim: A Walk through Local History.
Star Wars and Disney fans will want to make their way to the
Hilbert Museum of California Art. In the city of Orange, this museum is located at Chapman University. Two of their many exhibitions include Magical Visions: The Enchanted Worlds Of Eyvind Earle (Disney’s Sleeping Beauty designer) and A New Hope: The Star Wars Art of Robert Bailey.
Learn about American history at the
Richard Nixon Library, located in nearby Yorba Linda.
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No Conflict in Successive Representation of a Closely-Held Company and Its Insiders Where Insiders Already Possess Company’s Confidential Information
August 02, 2017 —
Renata L. Hoddinott, David W. Evans, & Howard M. Garfield - Haight Brown & Bonesteel LLPIn Beachcomber Management Crystal Cove, LLC v. Superior Court (Salisbury) (No. G054078, filed June 28, 2017; pub. and mod. order July 28, 2017), the Fourth Appellate District granted a writ of mandate vacating a trial court’s order disqualifying defendants’ counsel.
In Beachcomber, plaintiffs filed a shareholder derivative action against defendants Beachcomber Management and Douglas Cavanaugh (collectively, “defendants”) alleging defendants abused their position and mismanaged nominal defendant and similarly named Beachcomber at Crystal Cove (“Beachcomber”). Between 2009 and 2011, defendants and Beachcomber had each hired Kohut & Kohut LLP (“Kohut”) to represent them on at least four different occasions. In the underlying action, defendants hired Kohut again to represent them, while Beachcomber hired another law firm to represent it.
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Renata L. Hoddinott,
David W. Evans and
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Construction Litigation Roundup: “Apparently, It’s Not Always Who You Know”
December 16, 2023 —
Daniel Lund III - LexologyA respondent party in a pair of international arbitrations on the losing end of roughly $285,000,000 in adverse awards attacked the awards based upon arbitrator bias.
“If there is one bedrock rule in the law of arbitration, it is that a federal court can vacate an arbitral award only in exceptional circumstances. … The presumption against vacatur applies with even greater force when a federal court reviews an award rendered during an international arbitration.”
Applying the Federal Arbitration Act (according to the court, the international arbitrations were “seated” in the United States and fell under the New York Convention, such that the FAA is required to be the basis for vacatur efforts), the court examined assertions that certain alleged non-disclosures by the panel “concealed information related to the arbitrators’ possible biases and thereby ‘deprived [respondent] of [its] fundamental right to a fair and consensual dispute resolution process.’” The aggrieved party urged that one arbitrator’s undisclosed nomination of another arbitrator to serve as president of another arbitral panel – “a position that sometimes pays hundreds of thousands of dollars” – possibly influenced the second arbitrator to side with the first. Assertions were also levied that the arbitrators’ undisclosed work with the attorneys for the claimant in other arbitrations “allowed them to become familiar with each other, creating a potential conflict of interest.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Residential Construction: Shrinking Now, Growing Later?
August 17, 2011 —
CDJ STAFFJim Haugey, the Chief Economist for Reed Construction Data noted that new residential construction spending fell 0.2% in June and a slightly larger drop of 0.5% in residential remodeling. While economic growth is still low, Haugey states that homebuilders have “record low inventories.” He forecasts a shrinkage of 1.5% in 2011, followed by about 20% growth in 2012.
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Construction Defect Disputes: Know Your Measure of Damages!!!!!
January 21, 2025 —
David Adelstein - Florida Construction Legal UpdatesRemember this: know your measure of damages in a construction defect dispute. If you don’t, as shown below, the outcome can be unforgiving. The measure of damages is one of your most important elements of proof. You are filing suit for damages; thus, knowing what you can reasonably recovery is paramount.
In a recent dispute, Bandklayder Development, LLC v. Sabga, 50 Fla.L.Weekly D91e (Fla. 3d DCA 2025), a residential developer sold a single-family house while it was under construction in an as-is purchase agreement. Post-closing, the purchasers claimed defects and served a Florida Statutes Chapter 558 notice of construction defects letter. The purchaser subsequently initiated a construction defect lawsuit. During the nonjury trial, the purchaser’s expert testified that the purchasers suffered damages approximating $323,000 calculated as of January 19, 2022 (which was the date of the expert’s report). The expert further testified that the cost to finish the incomplete/defective work increased by 35% at the date of the May 2023 trial. However, the expert never testified as to the amount of damages as of the date of the contractual breach, which at the latest, would have been in April 2018 when the notice of construction defects letter was sent (or, at its earliest, June 2017 when closing occurred). At trial, the judge entered judgment for the purchasers in the amount of about $425,0000. This was reversed on appeal with judgment to be entered in favor of the developer. Why? Because the purchasers employed the wrong measure of damages and the only thing that prevented them from introducing the right measure of damages was within their control. Harsh outcome for not applying the correct measure of damages!
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com