CGL Insurer’s Duty To Defend Broader Than Duty To Indemnify And Based On Allegations In Underlying Complaint
April 10, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe duty to defend an insured with respect to a third-party claim is broader than the duty to indemnify the insured for that claim. The duty to defend is triggered by allegations in the underlying complaint. However, an insurer is only required to indemnify its insured for damages covered under the policy. A recent case example demonstrating the duty to defend is broader than the duty to indemnify can be found in Southern Owners Ins. Co. v. Gallo Building Services, Inc., 2018 WL 6619987 (M.D.Fla. 2019).
In this case, a homebuilder built a 270-unit condominium project where the units were included in 51-buildings. Upon turnover of the condominium association to the unit owners, the condominium association served a Florida Statutes Chapter 558 Notice of Construction Defects letter. There was numerous nonconforming work spread out among various subcontractor trades including nonconforming stucco work. The homebuilder incurred significant costs to repair defective work and resulting property damage, and relocated unit owners during repairs. The homebuilder then filed a lawsuit against implicated subcontractors. One of the implicated subcontractors was the stucco subcontractor.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Application Of Two Construction Contract Provisions: No-Damages-For-Delay And Liquidated Damages
February 14, 2022 —
David Adelstein - Florida Construction Legal UpdatesA recent Florida opinion between a prime contractor and a Florida public body touches upon two important issues: (1) the application of a no-damage-for-delay provision; and (2) the application of a liquidated damages provision. Both provisions find there way into many construction contracts. Unfortunately, the opinion is sparse on facts. Nevertheless, the application of these provisions is worthy of consideration.
In this opinion, Sarasota County v. Southern Underground Industries, Inc., 2022 WL 162977 (Fla. 2d DCA 2022), a county hired a contractor to install sanitary and water piping underneath a waterway. During construction, a nearby homeowner complained that vibration from the drilling caused damage to his home. As a result, the county stopped the contractor’s work to address a potential safety issue, as it was contractually entitled to do. The contractor hired a structural engineer to inspect the house and the engineer issued a report determining that any alleged damage was cosmetic and that there was sufficient monitoring of the vibrations to prevent future damage. The contractor also had an insurance policy to cover any homeowner claim for damage. However, upon receipt of the engineer’s report, the county did not lift its stop work order. Rather, the stop work order remained in place for an additional 71 days.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Colorado House Bill 1279 Stalls over 120-day Unit Owner Election Period
April 20, 2017 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogWith the session more than halfway through, the Colorado Legislature’s 2017 attempts at meaningful construction defect reform may fail again. This year, the Legislature did not attempt a single-bill construction defect overhaul like those that have failed over the last half-decade. Rather, it has sought to enact reforms on a piecemeal basis, with several smaller bills addressing specific issues that have been affecting condominium construction along Colorado’s booming Front Range.
This new approach appears to be headed towards much the same outcome as the failed efforts of the past. House Bill 1169 would have given developers a statutory right to repair before being sued by homeowners, and Senate Bill 156 would mandate arbitration or mediation. Both have been assigned to the House State, Veterans, and Military Affairs Committee (often viewed as the “bill-kill committee”), and have little chance of being resuscitated this session.
This was also the fate of House Bill 1279, but bipartisan support had many believing that it still had a chance of passing—at least until last week. House Bill 1279 would require an executive board of a homeowners association to satisfy several prerequisites before suing a developer or builder, namely to (1) notify all unit owners and the developer or builder against whom the lawsuit is being considered; (2) call an association meeting where the builder or developer could present relevant facts and arguments; and (3) get approval from the majority of the unit owners after providing detailed disclosures about the lawsuit, including the potential costs and benefits thereof.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
NY Project Produces America's First Utility Scale Wind Power
December 23, 2023 —
Debra K. Rubin - Engineering News-RecordDespite financial gyrations in the U.S. offshore wind energy market that have caused project delays and cancellations over the past two years, America now has joined other world nations in having energy generated for the first time from a utility-scale facility.
Reprinted courtesy of
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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Best Lawyers® Recognizes 37 White And Williams Lawyers
September 26, 2022 —
White and Williams LLPThirty-two White and Williams lawyers were recognized in The Best Lawyers in America© 2023. Inclusion in Best Lawyers® is based entirely on peer-review. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Best Lawyers® employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of quality legal services.
In addition, eight lawyers were recognized as "Ones to Watch” by Best Lawyers®. This recognition is given to attorneys who are earlier in their careers for outstanding professional excellence in private practice in the United States.
The firm is also pleased to announce Best Lawyers®
has recognized four White and Williams lawyers as "Lawyer of the Year." Read the court decisionRead the full story...Reprinted courtesy of
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Court Affirms Summary Adjudication of Bad Faith Claim Where Expert Opinions Raised a Genuine Dispute
July 06, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn 501 East 51st Street etc. v. Kookmin Best Ins. Co., Ltd. (No. B293605, filed 4/2/20, ordered pub. 4/16/20), a California appeals court affirmed summary adjudication and dismissal of a bad faith claim based on the genuine dispute doctrine.
501 East 51st Street Long-Beach-10, LLC (501) was the owner of a 10-unit apartment complex, insured by Kookmin Best. In 2017, an underground water main alongside the building burst which, according to 501, caused the building to move and crack. 501 made a claim and supplied a geotechnical report finding cracks in the foundation walls, cracks in the stucco and significant floor deformation and tilting near the water leak. The engineer’s opinion concluded that that “existing building distress was substantially contributed to by the water main break. The water introduced to the soil medium appears to have triggered differential foundation movement causing the stress features to develop.”
Kookmin retained its own engineers to investigate, who returned an opinion that the leak had exacerbated long-term pre-existing settlement which would continue. Under the policy, damage to the building caused by earth movement and settlement were excluded, but water damage resulting from an “accidental discharge” of water was covered. Kookmin then obtained an opinion from coverage counsel, who opined that only damage allocable to the water leak would be covered.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Haight Brown & Bonesteel Attorneys Named Super Lawyers in 2016
February 16, 2016 —
Haight Brown & Bonesteel LLPHaight is pleased to announce that the following lawyers have been named 2016 California Super Lawyers ®:
William G. Baumgaertner
Bruce Cleeland
Peter A. Dubrawski
Angela S. Haskins
Michael J. Leahy
Michael C. Parme
Jennifer K. Saunders
Additionally, Gregory M. Smith has been named a 2016 Super Lawyers ® Rising Star. Super Lawyers ® is a rating service of outstanding lawyers who have attained a high-degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations and peer evaluations.
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Haight Brown & Bonesteel LLP
Rescission of Policy for Misrepresentation in Application Reversed
August 17, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe California Court of Appeal reversed the trial court's issuance of summary judgment to the insurer, finding that the insured did not make misrepresentations when applying for a policy to cover rental property. Duarte v. Pacific Spec. Ins. Co., 13 Cal. App. 5th 45 (2017).
Duarte rented his house to Jennifer Pleasants. Duarte gave her a 45-day notice to quit in February 2012, but she did not leave. Two months later, Duarte applied for landlord-tenant coverage with Pacific. The application was submitted electronically and Pacific issued a policy to Durate the same day.
In June 2012, Pleasants filed a lawsuit against Duarte, alleging ten causes of action arising from habitability defects which began in 2009. The suit claimed Pleasants had notified Duarte about the defects, she had suffered emotional distress and physical injury, and over paid rent, and had out-of-pocket expenses.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com