No Coverage for Co-Restaurant Owners Who Are Not Named In Policy
August 24, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe Federal District Court denied two plaintiffs' claims for breach of the policy and for bad faith because they were not insureds under the policy. Tu v. Dongbu Ins. Co., 2017 U.S. Dist. LEXIS 115200 (N.D. Calif. July 24, 2017).
Dongbu, a Hawaii insurance company, issued a two-year policy to Plaintiff Ken Tu for his business. He was the only named insured under the policy.
The waste system at Plaintiffs' restaurant failed, causing fumes to impact neighboring tenants and waste to contaminate the underlying soil. Plaintiffs were forced to close the restaurant. A claim was tendered for damage and repair, loss of business income, and other insured losses. Dongbu denied coverage.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nine ACS Lawyers Recognized as Super Lawyers – Including One Top 10 and Three Top 100 Washington Attorneys
August 14, 2023 —
Travis Colburn - Ahlers Cressman & SleightOur blog articles usually cover construction-related issues, but Ahlers Cressman & Sleight, PLLC – once again – is honored to announce nine members of our firm were awarded the distinction of being a “Super Lawyer” in Washington.
To become a Super Lawyer, only the top attorneys are nominated by their peers. Once nominated, candidates are researched and evaluated by an independent third-party across twelve key categories, such as experience, honors/awards, verdicts/settlements, and others. Next potential Super Lawyers are evaluated by a highly-credentialed “Blue Ribbon Panel” of peers before final selection. The process is extremely competitive and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers. The following – including one Top 10 and three Top 100 attorneys – are Ahlers Cressman & Sleight, PLLC’s Super Lawyers:
John P. Ahlers, one of the firm’s founding partners, was again recognized as a Top 10 Super Lawyer in Washington State for 2023 – this is his seventh year in a row in the Top 10. A founding member of Ahlers Cressman & Sleight, PLLC, he has been named a Super Lawyer in Construction Litigation since 2001—23 years in a row. To read Mr. Ahlers’ full profile, click
here.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
The Impact of Sopris Lodging v. Schofield Excavation on Timeliness of Colorado Construction Defect Claims
January 26, 2017 —
Jean Meyer - Colorado Construction LitigationOn October 20, 2016, the Colorado Court of Appeals announced the Sopris Lodging, LLC v. Schofield Excavation, Inc.[1] decision. The Sopris decision significantly altered the potential pitfalls awaiting a general contractor in pursuit of third-party claims as well as potential defenses available for a subcontractor defending against third-party claims.
By way of background, the Sopris construction defect case arose out of the following facts: TDC was the general contractor for the construction of a hotel owned by Sopris Lodging. On March 11, 2011, Sopris Lodging sent TDC a notice of claim regarding alleged construction defects. On May 24, 2013, Sopris Lodging filed a complaint in district court asserting construction defect claims against one of the subcontractors of the hotel, and against the general contractor’s principals, but not the general contractor. Contemporaneous with the filing of the suit, Sopris Lodging and TDC entered into an agreement to toll the statute of limitations on Sopris Lodging’s potential claims against TDC. In August 2013, Sopris Lodging joined the general contractor to the suit. A year later, in 2014, the general contractor joined a variety of subcontractors as third-party defendants.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Jean may be contacted at
meyer@hhmrlaw.com
Nevada Construction Defect Lawyers Dead in Possible Suicides
March 28, 2012 —
CDJ STAFFA number of news sources have reported on the recent death of Nevada construction defect attorney, Nancy Quon. Ms. Quon was implicated in a recent scandal in which a group conspired to control homeowner associations in order to divert construction defect lawsuits to the members of the conspiracy.
Ms. Quon was found dead in her bathtub. The details are still under investigations. She and her boyfriend were accused of a failed arson/suicide scheme in 2010. Ms. Quon survived an attempt to burn down her home. Subsequently, her boyfriend obtained some gamma-hydroxybutyric acid (GBH) for her, as part of another failed suicide attempt.
Subsequent to Ms. Quon’s death, David Amesbury was found in California dead by hanging. Mr. Amesbury took a plea deal in the case, and he had admitted his role in providing legal and construction contracts to firms in the conspiracy. He was accused of fixing HOA elections.
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Plaintiffs’ Claims in Barry v. Weyerhaeuser Company are Likely to Proceed after Initial Hurdle
January 28, 2019 —
Frank Ingham - Colorado Construction LitigationOn December 18, 2018, Federal Magistrate Judge Scott T. Varholak recommended in a written opinion that the Motion of Defendant Weyerhaeuser Company (“Weyerhaeuser”) to Dismiss Amended Complaint Pursuant to F.R.C.P. 12(b)(6) be denied. Barry v. Weyerhaeuser Company, 2018WL6589786 (D. Colo. 2018). As such, we believe District Court Judge Christine M. Arguello will accept this recommendation and the lawsuit will proceed.
At interest in this lawsuit are TJI joists designed, manufactured, and sold by Weyerhaeuser for residential construction. Headquartered in Seattle, Washington, Weyerhaeuser is one of the world’s largest private owners of timberlands, owning or controlling nearly 12.4 million acres in the United States and managing 14 million acres in Canada. It is a public company that trades on the New York Stock Exchange with revenues of $7.2 billion in 2017.[1] In addition to managing forests, Weyerhaeuser has interests in energy, minerals, and wood products.
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Frank Ingham, Higgins, Hopkins, McLain & RoswellMr. Ingham may be contacted at
ingham@hhmrlaw.com
Occurrence-Based Insurance Policies and Claims-Made Insurance Policies – There’s a Crucial Difference
April 13, 2017 —
Garret Murai – California Construction Law BlogI’ve yet to find reading through an insurance policy on anyone’s “bucket list.”
But read them you should. Or have your attorney read through them (wink, wink).
Because when you need to tender a claim there’s probably no more important document in the world.
In Tidwell Enterprises, Inc. v. Financial Pacific Insurance Company, Inc., Case No. C078665 (November 29, 2016), a client whose attorney did read the policy, bested the insurer of a policy it issued.
Tidwell Enterprises, Inc.
In 2006 or 2007, Tidwell Enterprises, Inc. installed a fireplace at a single-family home located in Copperopolis, California. At the time, Tidwell had a general commercial liability policy issued by Financial Pacific Insurance Company, Inc. which expired in March 2010.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect Action
November 06, 2013 —
Tred Eyerly — Insurance Law HawaiiJudge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic PCL Constr., 2013 U.S. Dist. LEXIS 151748 (D. Haw. Oct. 22, 2013).
The insurer denied coverage when Nordic was sued for construction defects related to its construction of two Safeway stores in Honolulu. Prior to the issuance of the policies the Ninth Circuit had issued its opinion in Burlington Ins. Co. v .Oceanic Design & Constr., Inc., 398 F.3d 940 (9th Cir. 2004), which predicted that Hawaii appellate courts would rule that construction defects were not "occurrences." Nevertheless, Nordic's witnesses contended when the policies were purchased, they believed construction defects were covered. Specifically, Nordic thought the policies provided completed operations coverage for property damage arising out of Nordic's subcontractors' work.
Nordic further contended that only after the Hawaii Intermediate Court of Appeals decided in Group Builders, Inc. v. Admiral Ins .Co., 123 Haw. 142 (Haw. Ct. App. 2010) that construction defect claims did not constitute an "occurrence" did the insurer change its position and decide the policies did not cover construction defects.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
The Year 2010 In Review: Design And Construction Defects Litigation
February 25, 2011 —
Candace Matson, Harold Hamersmith, and Helen LauderdaleThis article is the first in a series summarizing construction law developments for 2010
1. Centex Homes v. Financial Pacific Life Insurance Co., 2010 U.S. Dist. LEXIS 1995 (E.D. Cal. 2010)
After settling numerous homeowners’ construction defect claims — and more than ten years after the homes were substantially completed — a home developer brought suit against one of the concrete fabrication subcontractors for the development seeking indemnity for amounts paid to the homeowners, as well as for damages for breach of the subcontractor’s duties to procure specific insurance and to defend the developer against the homeowners’ claims. The subcontractor brought a motion for summary adjudication on the ground the developer’s claims were barred by the ten year statute of repose contained in Code of Civil Procedure Section 337.15.
The District Court agreed the developer’s claim for indemnity was barred by Section 337.15. And it held that because the damages recoverable for breach of the subcontractor’s duty to purchase insurance are identical to the damages recoverable through the developer’s indemnity claim, the breach of duty to procure insurance claim also was time-barred. The District Court, however, allowed the claim for breach of the duty to defend to proceed. The categories of losses associated with such a claim (attorneys’ fees and other defense costs) are distinct from the damages recoverable through claims governed by Section 337.15 (latent deficiency in the design and construction of the homes and injury to property arising out of the latent deficiencies).
2. UDC — Universal Development v. CH2M Hill, 181 Cal. App. 4th 10 (6th Dist. Jan. 2010)
Indemnification clauses in construction agreements often state that one party to the agreement — the “indemnitor” — will defend and indemnify the other party from particular types of claims. Of course, having a contract right to a defense is not the same as actually receiving a defense. Any indemnitor attempting to avoid paying for defense costs can simply deny the tender of defense with the hope that when the underlying claim is resolved the defense obligations will be forgotten. In the past, when parties entitled to a defense — the “indemnitees” — had long memories and pressed to recover defense costs, indemnitors attempted to justify denying the tender by claiming their defense obligations coincided with their indemnity obligations and neither arose until a final determination was made that the underlying claim was one for which indemnity was owed.
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Reprinted courtesy of Candace Matson, Harold Hamersmith, and Helen Lauderdale, Sheppard Mullin Richter & Hampton LLP. Ms. Matson can be contacted at cmatson@sheppardmullin.com, Mr. Hamersmith can be contacted at hhamersmith@sheppardmullin.com, and Ms. Lauderdale can be contacted at hlauderdale@sheppardmullin.com.
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