Jury Finds Broker Liable for Policyholder’s Insufficient Business Interruption Limits
January 06, 2020 —
Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery BlogAfter a four-day trial, an Arizona federal jury found that Western Truck Insurance Services, Inc., an insurance broker, was negligent in selling Madison Alley Transportation and Logistics Inc. a business interruption policy with inadequate annual limits. Based on its finding of negligence, the jury determined that the broker was liable for $685,000 of $1,000,000 in damages suffered by Madison Alley as a result of a flood in its warehouse. The verdict and Complaint, filed in Arizona state court before the case was removed, can be found here and here.
In June 2016, a subtenant in Madison Alley’s warehouse broke a sprinkler line while operating a forklift, causing the warehouse to flood. The warehouse was used to store and deliver retail display goods, and Madison Alley was unable to do business during the five months of repairs.
Madison Alley sought coverage under a business interruption policy it had purchased through Western Truck, but the policy’s $20,000 limit was not enough to cover its approximately $1,480,000 in losses.
Madison Alley sought coverage under a business interruption policy it had purchased through Western Truck, but the policy’s $20,000 limit was not enough to cover its approximately $1,480,000 in losses.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Michelle M. Spatz, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Spatz may be contacted at mspatz@HuntonAK.com
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Benefits and Pitfalls of Partnerships Between Companies
December 21, 2016 —
Aarni Heiskanen – AEC BusinessTo bring innovations to the market, companies almost always need partnerships. Partnerships can offer scalability, productivity, and open up new markets. However, partnerships are not easy to establish and manage.
The benefits of partnering
Construction companies have always done joint ventures. The reason has been to simply be able to bid for and deliver a project that would be too big for one company at that specific moment. Partnering allows you to become larger than you are and to get work that would otherwise be out of your reach. It also lets you spread the risk in a demanding project among the members.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Whose Employee is it Anyway?: Federal Court Finds No Coverage for Injured Subcontractor's Claim Based on Modified Employer's Liability Exclusion
September 28, 2020 —
Jeffrey J. Vita & Kerianne E. Kane - Saxe Doernberger & VitaIn Nagog Real Estate Consulting Corp. v. Nautilus Insurance Co.,1 the United States District Court for the District of Massachusetts held that an insurer had no duty to defend its insureds against claims brought by an injured subcontractor, based on an overbroad employer’s liability exclusion in the policy.
Nautilus Insurance Company issued a commercial general liability policy to developer Nagog Homes LLC and its related construction company, Nagog Real Estate. The policy was endorsed with an Employer’s Liability Exclusion (the L205 Endorsement) that expanded the scope of the standard exclusion in the coverage form to include bodily injury claims of employees of “any” insured and their contractors or subcontractors, as opposed to simply the employees of the named insured.
Nagog Homes was the developer, and Nagog Real Estate was the general contractor for a residential construction project. An employee of the framing subcontractor hired by Nagog Real Estate was injured while working on the project and sued both Nagog entities for his injuries. Nautilus, relying on the modified employer’s liability exclusion, denied coverage for the lawsuit based on allegations that the Nagog entities hired the framing subcontractor to perform work, which effectively made the plaintiff an employee of one or both of the Nagog entities.
Reprinted courtesy of
Jeffrey J. Vita , Saxe Doernberger & Vita and
Kerianne E. Kane, Saxe Doernberger & Vita
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. Kane may be contacted at kek@sdvlaw.com
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2018 Super Lawyers and Rising Stars!
July 18, 2018 —
Wilke, Fleury, Hoffelt, Gould & Birney, LLPWilke Fleury is thrilled to announce our 2018 Super Lawyers and Rising Stars! Twelve of our talented attorneys have been honored with the Super Lawyers and Rising Stars distinctions.
Super Lawyers® is a service of the Thomson Reuters, Legal Division. Each year, the research team at Super Lawyers® undertakes a rigorous multi-phase selection process that includes a statewide survey of lawyers, independent evaluation of candidates by the attorney-led research staff, a peer review of candidates by practice area and a good-standing and disciplinary check. The Super Lawyers list represents only five percent of lawyers in California and Rising Stars reflects 2.5% of the state’s up-and-coming lawyers.
Congratulations to Wilke Fleury’s 2018 Super Lawyers and Rising Stars!
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Wilke, Fleury, Hoffelt, Gould & Birney, LLP
ACS Obtains Overwhelming Jury Trial Victory for General Contractor Client
March 28, 2022 —
Scott R. Sleight - Ahlers Cressman & Sleight PLLCACS is pleased to share news of our recent $19.2 million victory for a general contractor client after a lengthy virtual jury trial involving the Nexus condominium project in downtown Seattle. On Tuesday March 22, 2022, ACS obtained a jury verdict awarding significant damages to our general contractor client and denying nearly all damages claimed against our client by the project owner. The 28-day jury trial commenced via Zoom on January 24 and involved testimony from more than two dozen witnesses on more than 185 discrete change issues and subcontractor pass-through claims as well as counterclaims from the owner for liquidated damages and other damages. Amazingly, after only two days of deliberating the jury reached a verdict resolving all claims overwhelmingly in favor of our general contractor client.
Our client was awarded $19.5 million on its claims totaling $20.6 million and largely defeated the owner’s counterclaims of $4.3 million, with the jury awarding only $318,000 to the owner. This results in a net judgment of $19.2 million in favor of our client. The ACS team, along with the client, worked incredibly hard on this case. The team includes lawyers Scott Sleight, Saki Yamada, Kristina Southwell, Cam Sheldon and paralegals Christina Granquist, Cydney Fermstad, Auzree Hightower, Amy Capell, Samina Helsley and Bernadette Bresee.
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Scott R. Sleight, Ahlers Cressman & Sleight PLLCMr. Sleight may be contacted at
scott.sleight@acslawyers.com
2019 Legislative Session
June 03, 2019 —
Steve Heisdorffer – Colorado Construction LitigationTwo bills under consideration as the end of the session nears contain significant changes to Colorado’s Consumer Protection Act (“CCPA”). The bills broaden remedies, make more conduct a breach of the CCPA, and include purely private transactions in the type of conduct that falls within the scope of the CCPA. The bills are House Bill 19-1289 (“House Bill”) and Senate Bill 19-237 (“Senate Bill”). As of April 29, 2019, the House Bill has passed the House. The Senate Bill has not progressed past introduction. It is unclear if both houses of the legislature will have an opportunity to vote on either or both bills before the session ends.
The House Bill makes a person liable for CCPA violations based on conduct engaged in “recklessly,” not just knowing conduct. No definition of the term “recklessly” is provided in the House Bill, but Colorado’s attorney general testified “recklessly” “means a company or person acted with reckless disregard for the truth.” (Page 2). No explanation was given of what the word “reckless” in the definition of “recklessly” meant in this context.
Another provision of the House Bill adds a “catch all” prohibition that labels as a deceptive trade practice knowingly or recklessly engaging in any unfair, unconscionable, deceptive, deliberately misleading, false or fraudulent act or practice. There is no indication how a person could “recklessly” engage in “deliberately misleading” acts or practices.
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Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com
Storm Eunice Damage in U.K. Could Top £300 Million
February 28, 2022 —
Press Association - BloombergHundreds of thousands of homes are still without power due after Storm Eunice tore through the country, while insurers have indicated the clean-up could cost more than £300 million.
At least four people were killed in the UK and Ireland during one of the worst storms in decades, with a gust of 122mph provisionally recorded at the Needles on the Isle of Wight, which, if verified, would be the highest ever recorded in England.
Energy Networks Association (ENA) has said nearly 400,000 homes had no electricity on Friday night, with network providers recording 156,000 disrupted customers for UK Power Networks, 120,000 for Scottish & Southern, 112,000 for Western Power, 6,000 for Northern Power and 260 for Electricity North West.
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Bloomberg
The Roads to Justice: Building New Bridges
August 23, 2021 —
Aileen Cho - Engineering News-RecordFormer U.S. Dept. of Transportation Secretary Anthony Foxx grew up on “the wrong side of the tracks.”
“My home was a stone’s throw from Interstates 85 and 77,” recalls Foxx, who grew up in Charlotte, N.C., and served as DOT Secretary from 2013-17 under President Barack Obama. “The airport was nearby. Planes flew at low altitude over our house. Whether or not I was using the system, I sure heard and saw a lot of it.” Desirable areas to live were far away from transportation infrastructure, “and the property values of those living near these projects was diminished.”
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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