Consumer Confidence in U.S. Increases More Than Forecast
August 26, 2015 —
Victoria Stilwell – BloombergConsumer confidence climbed more than forecast in August to the second-highest level in eight years as Americans held more favorable views of the labor market.
The Conference Board’s index rose to 101.5 this month from a revised July reading of 91, the New York-based private research group said Tuesday. The gauge exceeded the highest estimate in a Bloomberg survey of economists, whose median forecast was 93.4. The cutoff date for the survey was Aug. 13, before the recent stock-market sell-off.
Americans remained emboldened by job gains, cheaper gasoline and rising home prices in the period leading up to a slump in stock prices as global financial markets took a turn for the worse. The risk for the economy is that households will reassess their spending plans as they wait for evidence the U.S. expansion can withstand such shocks.
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Victoria Stilwell, Bloomberg
EPA Issues Interpretive Statement on Application of NPDES Permit System to Releases of Pollutants to Groundwater
May 27, 2019 —
Anthony B. Cavender - Gravel2GavelOn Tuesday, April 23, 2019, in a development of interest to practically anyone who operates a plant or business, EPA published its Interpretive Statement in the Federal Register. (See 84 FR 16810 (April 23, 2019).) After considering the thousands of comments it received in response to a February 20, 2018, Federal Register notice, EPA has concluded that “the Clean Water Act (CWA) is best read as excluding all releases of pollutants from a point source to groundwater from a point source from NPDES program coverage, regardless of a hydrological connection between the groundwater and jurisdictional surface water.”
Acknowledging that its past public statements have not been especially consistent or unambiguous on this important matter, EPA states that this interpretation “is the best, if not the only reading of the CWA, is more consistent with Congress’ intent than other interpretations of the Act, and best addresses the question of NPDES permit program applicability for pollutant releases to groundwater within the authority of the CWA.” Indeed, the absence of “a dedicated statement on the best reading of the CWA has generated confusion in the courts, and uncertainly for EPA regional offices and states implementing the NPDES program, regulated entities, and the public.” The recent and contrary interpretations of this issue by the Ninth Circuit (Hawaii Wildlife Fund v. County of Maui, 886 F.3d 737) and the Fourth Circuit (Upstate Forever v. Kinder Morgan Energy Partners, LP, 887 F.3d 637) will be reviewed by the U.S. Supreme Court, which will now have the benefit of the agency’s official position. In addition, EPA discloses that it will be soliciting additional public “input” on how it can best provide the regulated community with “further clarity and regulatory certainly”; these comments will be due within 45 days (June 7, 2019).
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay
August 20, 2019 —
Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLPOn May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim, demand or suit.” C.M.S. Investment Ventures, Inc. v. American European Insurance Company, No. A-2056-17T3, 2019 N.J. Super. Unpub. LEXIS 1215, at *8-9 (N.J. Super. Ct. App. Div. May 28, 2019) (CMS). The CMS case is also notable because the Appellate Division held that a 20-month delay in disclaiming coverage was unreasonable and therefore warranted estoppel.
In CMS, the insured was allegedly warned by its tenant about a faulty ground-floor window that failed to lock properly. Afterward, an intruder broke into the tenant’s apartment and sexually assaulted the tenant, who sued the insured on a premises liability claim. Before she filed suit, the tenant sought payment from the insured’s CGL insurer directly. The insurer denied coverage based on the assault-and-battery exclusion and closed the file, but never informed the insured. Later, the tenant sued the insured, which sought a defense and indemnity from its insurer, which again denied coverage based on the exclusion. The insured then sought a declaration of coverage on grounds that the exclusion was ambiguous, and the insurer “was estopped from denying coverage, because it waited [20] months to inform CMS of its coverage decision.” The trial court ruled in the insured’s favor which led to the appeal in CMS.
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Carroll may be contacted at carrollt@whiteandwilliams.com
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Negligent Construction an Occurrence Says Ninth Circuit
June 30, 2011 —
CDJ STAFFOne June 27, the US Court of Appeals has rejected an appeal from Mid-Continent Casualty Company. Mid-Continent had appealed a summary judgment granted to Titan Construction Company.
Titan Construction had built condominiums for the Williamsburg Condominium Association, which later filed a construction defect lawsuit against Titan and other defendants. Titan settled with the developer, Kennydale, assigning its rights against Mid-Continent to Kennydale. Mid-Continent filed suit, claiming that “it had no obligation to indemnify or defend Titan, Kennydale, or various other defendants.” The district court found in favor of Mid-Continent, granting a summary judgment, concluding that Titan’s insurance covered “occurrences,” and none had taken place.
On appeal, the court found that the negligent construction of the condominiums constituted an “occurrence” The case was remanded and the district court this time found in favor of Titan, “concluding that Mid-Continent failed to raise a triable issue as to the applicability of the remaining policy exclusions.
The Ninth Circuit Court of Appeals has now affirmed that decision and Titan’s summary judgment stands.
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Construction in Indian Country – What You Need To Know About Sovereign Immunity
July 22, 2019 —
Edward J. Hermes - Snell & Wilmer Under Construction BlogThere are many legal issues to consider when bidding on and building projects in American Indian Country. Which labor and employment laws apply? Are there contracting or hiring preferences that apply? Do the Prompt Pay Act and other state laws apply? Can I bring a lawsuit to enforce the contract and, if so, where would I file suit? This article addresses the final question, which is often the most important question when contracting with a tribal entity.
Many of the construction projects in American Indian Country are with tribes or entities wholly owned or by a tribe, such as housing authorities, casinos, hospitals, schools or other economic enterprises. Like the state and federal government, tribes (and their tribally—owned enterprises) enjoy sovereign immunity from any lawsuit, meaning they cannot be sued unless the tribe expressly agrees to waive its sovereign immunity. Sovereign immunity poses a unique issue for contractors that does not typically arise in other projects, but it need not be a deterrent to doing business with tribes. It is usually in the best interest of both the contractor and tribe to negotiate an acceptable waiver of sovereign immunity. Absent such a waiver, the tribe or tribal entity cannot be sued and the resulting forfeiture of remedies can be devastating for the contractor.
To waive sovereign immunity, the tribe must make it clear in the contract that it can be sued in a specific jurisdiction. Oklahoma Tax Comm'n v. Citizen Band Potawatomi tribe of Okla., 498 U.S. 505, 509 (1991). It does not matter whether the tribe is operating on or off its lands—if there is no express contractual waiver of sovereign immunity, a contractor will have no recourse in the event of non-payment or other breach of contract. See Kiowa tribe of Okla. v. Manufacturing Technologies, Inc., 523 U.S. 751, 118 S.Ct. 1700, 140 L.Ed.2d 981 (1998).
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Edward J. Hermes, Snell & WilmerMr. Hermes may be contacted at
ehermes@swlaw.com
Texas Court Construes Breach of Contract Exclusion Narrowly in Duty-to-Defend Case
September 10, 2018 —
Lorelie S. Masters & Tae Andrews - Hunton Insurance Recovery BlogIn a victory for policyholders, a recent decision from the Western District of Texas narrowly construed a common breach-of-contract exclusion and held that the insurer had a duty to defend its insured against an underlying lawsuit over construction defects. The allegations potentially supported a covered claim, as the conduct of the insured’s subcontractor could have been an independent, “but for” cause of the property damage at issue, thereby triggering the insurer’s duty to defend.
In Slay, the insured – a construction company – was hired by a city to design and construct a municipal sports complex, including Little League baseball fields, a softball field, parking lots, and a swimming pool. The construction company hired a subcontractor to perform various services on the project, including paving parking lots and laying the cement for the pool. After completing the project, one of the construction company’s employees noticed cracking in the parking lot and the pool. The construction company notified the city and tried to work out a repair plan, but the city refused and eventually sued, alleging construction defects and asserting claims for breach of contract and negligence.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Tae Andrews, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Andrews may be contacted at tandrews@HuntonAK.com
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Too Late for The Blame Game: Massachusetts Court Holds That the Statute of Repose Barred a Product Manufacturer from Seeking Contribution from a Product Installer
March 21, 2022 —
Gus Sara - The Subrogation StrategistIn State Farm Fire & Cas. Co. v. Wangs Alliance Corp., No. 21-cv-10389-AK, 2022 U.S. Dist. LEXIS 26712, the United States District Court for the District of Massachusetts (District Court) considered whether a product manufacturer was barred by the Commonwealth’s six-year statute of repose for improvements to real property from joining the installer of the product as a third-party defendant. The court denied the defendant’s motion for leave to file a third-party complaint to join the installer, finding that the installer completed its work more than six years prior to the motion being filed. This case reminds us that Massachusetts’ six-year statute of repose for improvement to real property also bars a defendant’s contribution claims against third parties.
The Wangs Alliance case involves a subrogation action filed by State Farm Fire & Casualty Insurance (Insurer) against Wangs Alliance Corp. (Wangs), a manufacturer of rope lighting. Insurer insured the homeowners, who experienced a fire in their home in 2018. The home was originally built in 2002 by Wellen Construction (Wellen). As part of the original construction, Wellen installed rope lighting manufactured by Wangs in the house.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
U.K. Developer Pledges Building Safety in Wake of Grenfell
April 19, 2022 —
Ryan Hesketh - BloombergCrest Nicholson Plc intends to sign the building safety pledge set up in the aftermath of the Grenfell fire in 2017 to improve standards that may cost the U.K. developer as much as 120 million pounds ($157 million).
The company’s best estimate of further liability as a result of the pledge would be 80 million pounds to 120 million pounds, according to a statement Tuesday. Since 2019, Crest Nicholson has recorded 47.8 million pounds of net charges from obligations imposed after the fire at Grenfell Tower in London in which flammable cladding materials contributed to the deaths of 72 people.
The Secretary of State for the Department for Levelling Up, Housing and Communities announced in January the government’s intention to increase the legal obligation on developers to fix potentially dangerous buildings. Since then, Crest Nicholson has engaged in “intensive dialogue” with the government about the new guidelines, resulting in the decision to sign the pledge, the firm said in the statement.
The new restrictions will be enacted in law through proposed amendments to the Building Safety Bill that is currently passing through parliament. Crest Nicholson is currently considering whether any further regulatory approvals are required in respect of the proposed laws, according to the statement.
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Ryan Hesketh, Bloomberg
