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The Road to Rio 2016: Zika, Super Bacteria, and Construction Delays. Sounds Like Everything is Going as Planned

July 28, 2016 — Garret Murai – California Construction Law Blog
Athletes began to arrive at the Olympic Village in Rio de Janeiro on Sunday in anticipation of the 2016 Summer Olympics which begin on August 5th. Perhaps the most closely watched event, however, has already begun; and it has no medals. And that is whether Brazil can successfully pull off the Olympics at all. For a city known for its Carnival the months leading up to the Olympics have been just as crazy and chaotic as the days leading up to Mardi Gras. There’s the Zika virus, the discovery of a “super” bacteria, the impeachment of its President, and Brazil’s worst recession in 100 years. And that’s just a partial list. And then, of course, there’s the construction. Cities bidding to host the Olympics often cite revenue from tourism and long-term capital improvements which will benefit its populace long after the games have ended as economic justification for hosting the Olympics. However, the cost to host the Olympics is often underestimated and Rio is no exception, running an estimated $6 billion over budget. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Hawaii Court of Appeals Finds Insured AOAO Not Liable for Securing Inadequate Insurance

March 04, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequate coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023). In October 2002, the Was purchased a condominium located in the Queen Emma Gardens Condominium. The AOAO's bylaws provided that it would procure and maintain insurance "to insure the Board, the Association, and each apartment owner against claims for personal injury, death, and property damage arising out of the condition of the property or activities thereon . . ." The AOAO secured a CGL policy from Insurance Association, Inc., with coverage limits for bodily injury at $1,000,000 and an umbrella policy providing an additional $5,000,000 of coverage. Each of the policies "insured each individual insurance owner of the insured condominium, but only with respect to liability arising out of the ownership, maintenance or repair of that portion of the premises which is not reserved for that unit owner's exclusive use or occupancy." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

New York Appellate Court Addresses “Trigger of Coverage” for Asbestos Claims and Other Coverage Issues

November 30, 2020 — Paul A. Briganti - Complex Insurance Coverage Reporter
On 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. Read the court decision
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Reprinted courtesy of Paul A. Briganti, White and Williams LLP
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com

Let’s Talk About a Statutory First-Party Bad Faith Claim Against an Insurer

February 19, 2024 — David Adelstein - Florida Construction Legal Updates
Let’s talk about a statutory first-party bad faith claim against an insurer under Florida law. A recent opinion, discussed below, does a nice job providing a synopsis of a first-party statutory bad faith claim against an insurer: The Florida Legislature created the first-party bad faith cause of action by enacting section 624.155, Florida Statutes, which imposes a duty on insurers to settle their policyholders’ claims in good faith. The statutory obligation on the insurer is to timely evaluate and pay benefits owed under the insurance policy. The damages recoverable by the insured in a bad faith action are those amounts that are the reasonably foreseeable consequences of the insurer’s bad faith in resolving a claim, which include consequential damages. “[A] statutory bad faith claim under section 624.155 is ripe for litigation when there has been (1) a determination of the insurer’s liability for coverage; (2) a determination of the extent of the insured’s damages; and (3) the required [civil remedy] notice is filed pursuant to section 624.155(3)(a).” Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Job Growth Seen as Good News for North Carolina Housing Market

November 20, 2013 — CDJ STAFF
David Mayo, the president of the Home Builders Association of Hendersonville told housing professionals that “it’s been a tough few years, but by all accounts it’s better now.” Currently, Henderson County, North Carolina is seeing three new jobs created for every building permit issued, which is seen as the critical measure of a region’s economic health, according to Dale Akins, a market research firm. Henderson County has seen a rise in building permits, with 32% more permits issued in the first nine months of 2013 than in the same period of 2012. By contrast, adjacent Transylvania County has seen little job growth and a housing market that has shrunk by 25%. Read the court decision
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LA Lakers Partially Survive Motion to Dismiss COVID-19 Claims

June 13, 2022 — Tred R. Eyerly - Insurance Law Hawaii
While the appellate court affirmed dismissal of a majority of the claims submitted by the Los Angeles Lakers for closure of the Staples Center and other properties due to COVID-19, a portion of their claims survived. L.A. Lakers v. Fed Ins. Co., 2022 U.S. Dist. LEXIS 31503 (C.D. Calif. March 17, 2022). Government orders closed the Staples Center in March 2020. The Lakers alleged they lost tens of millions of dollars in revenue. They further alleged that the presence of coronavirus particles on fixtures and building systems caused physical alterations to the covered properties. The Lakers had to upgrade their properties to include new air filters, touchless light switches, toilets and sinks; sleeves or coatings for high-touch surfaces; and plexiglass dividers. The Lakers also alleged that five Metro stations within a mile of the Staples Center, that was used to get to games, were closed by civil authorities due to the presence of COVID-19. The Lakers submitted a claim for property damage and business interruption to Federal. The claim was denied and the Lakers filed suit. In February 2021, the court granted Federal's motion to dismiss without prejudice, after concluding that the Lakers' allegations of direct physical loss or damage were mere legal conclusions and not sufficient to state a claim. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurer's Motion for Summary Judgment to Reject Collapse Coverage Denied

November 24, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The insurer unsuccessfully moved for summary judgment seeking to reject the insured's collapse claim. Gnannn v. United Servs. Auto, Ass'n, 2019 Conn. Super. LEXIS 1955 (Conn. Super Ct. July 11, 2019). The insureds' home was built in 1985 and they purchased their home in 1993. A home inspection reported that some settlement and curing related cracks existed in the slab floor, but no signs of abnormal settlement were noticed. The concrete walls were in overall good condition. In 2015, the insureds became aware of abnormal cracking in the basement. USAA was informed of the claim but denied coverage in October 2015. The insureds sued USAA. After suit was filed, the insureds hired an engineer, David Grandpre, to inspect their home. He observed severe cracking in the basement walls caused by an expansive chemical reaction within the concrete. The structure was not in imminent peril of falling down, and it continued as insureds' residence. But Mr. Grandpre noticed bulging and bowing, evidence that the concrete basement walls had failed and had begun to move inward due to the lateral pressure of the soil outside the home. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Wood Smith Henning & Berman LLP Expands into Georgia

November 03, 2016 — Beverley BevenFlorez – CDJ Staff
Wood Smith Henning & Berman LLP (WSHB) has opened a new regional office in Atlanta, Georgia. Richard E. Zelonka, Jr., will be the Managing Partner. With over a decade of trial experience, Mr. Zelonka has handled complex litigation in both state and federal courts throughout the Southeastern United States. “I am thrilled to be joining Wood Smith Henning & Berman. WSHB’s sterling reputation, coupled with its national footprint, is especially attractive. That, coupled with the Firm’s passionate dedication to their clients, made this move a very easy choice for me,” said Mr. Zelonka. “I could not be more excited to lead WSHB’s new Georgia office.” The Firm’s Atlanta office is located at 1170 Peachtree Street NE, Suite 1200, Atlanta, Georgia 30309. The main phone number is (404) 885-5700. The fax number is (404) 506-9108. Read the court decision
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