Illinois Federal Court Applies Insurer-Friendly “Mutual Exclusive Theories” Test To Independent Counsel Analysis
November 09, 2020 —
Jeremy S. Macklin - Traub Lieberman Insurance Law BlogInsureds often request independent counsel when insurers agree to provide a defense subject to a reservation of rights, pursuant to which an insurer takes the position that certain damages may not be indemnifiable. Requests for independent counsel are often rooted in fear that a defense attorney who has a relationship with the insurer may be incentivized to defend the insured in a way that maximizes the potential for the insurer to succeed on its coverage defenses. As explained by the Illinois Supreme Court in Maryland Cas. Co. v. Peppers, 355 N.E.2d 24 (Ill. 1976), when a conflict of interest arises between an insurer and its insured, the attorney appointed by the insurer is faced with serious ethical questions and the insured is entitled to its own attorney.
Illinois courts generally follow the rule that an insured is entitled to independent counsel upon a showing of an actual conflict. In Builders Concrete Servs., LLC v. Westfield Nat’l Ins. Co., No. 19 C 7792, 2020 WL 5518474 (N.D. Ill. Sept. 14, 2020), the U.S. District Court for the Northern District of Illinois recently addressed a dispute between an insurer and its insured about independent counsel.
Westfield insured Builders Concrete Services (BCS). Focus Construction hired BCS as a subcontractor to perform concrete work on a new apartment building. BCS’ work included pouring concrete for structural columns, one of which buckled and failed. BCS sued Focus Construction for withholding payment, and Focus Construction counter-sued for breach of contract and negligence relating to BCS’ alleged faulty work that caused the column to fall. Focus Construction’s counterclaim alleged that the column failure damaged other parts of the building on which Builders did not perform work.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
#1 CDJ Topic: McMillin Albany LLC v Superior Court of California
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFStephen A. Sunseria of
Gatzke Dillon & Balance LLP discussed how the Fifth Appellate District court “issued a blistering criticism of the Fourth Appellate District’s prior opinion in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Ca.App.4th 98, which severely limited the reach of the Act to actions not involving property damage and allowing property damage claims to proceed freely under common law without any constraints posed by the Act.” Sunseri stated that “McMillin is a great victory for homebuilders, but battle lines are now clearly drawn between the two appellate districts.”
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In another article regarding the McMillin Albany LLC case,
Garret Murai of
Wendel Rosen Black & Dean LLP posted an article on his California Construction Law Blog that went over the legal debate of California’s Right to Repair Act including Liberty Mutual, Burch v. Superior Court, and KB Home Greater Los Angeles, Inc. v. Superior Court and concluded with a discussion of the McMillin Albany case. Murai predicted, rightly it turned out, that the case would see a “final round before the California Supreme Court.”
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In their December 2, 2015 article, authors
Richard H. Glucksman,
Glenn T. Barger,
Jon A. Turigliatto, and
David A. Napper of
Chapman Glucksman Dean Roeb & Barger reported that the California Supreme Court granted the petition for review of the McMillin Albany decision: “The holdings in Liberty Mutual and McMillin Albany present a conflict of authority that the California Supreme Court has appropriately deemed worthy of review. The parties will now be permitted to file briefs on the merits and amicus briefs will certainly be submitted by the defense and plaintiff bars.”
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A Year-End Review of the Environmental Regulatory Landscape
January 11, 2022 —
Anne Idsal Austin & Joel Simon - Gravel2Gavel Construction & Real Estate Law BlogOur guest today is Anne Idsal Austin, a nationally recognized environmental lawyer who has held several high-profile federal and state regulatory roles. As a partner who recently joined Pillsbury’s environmental and natural resources practice, she provides strategic consulting and policy advice, helping clients navigate the dynamic regulatory and legal waters in an era of energy transition, decarbonization and an emphasis on ESG principles. Prior to joining Pillsbury, Anne was the Principal Deputy Assistant Administrator for the U.S. Environmental Protection Agency’s Office of Air and Radiation, known as OAR or OAR, where she had primary oversight over United States clean air policy and regulation. Prior to that, she served as the EPA regional administrator for Region 6, overseeing all federal environmental programs in Texas, Louisiana, New Mexico, Oklahoma and Arkansas. Prior to joining EPA, Anne held several positions where she shaped environmental and energy policy at the highest levels of government in the state of Texas. Welcome to our podcast, Anne.
Anne Austin: Thanks so much. It’s great to be here today, Joel.
Joel Simon: Anne, I’m really excited for this chance to speak with you because there’s so much going on at the federal environmental policy level, and it would be great to have someone really knowledgeable present this to us in an organized fashion. So with that minor task ahead of you, could you start us off with a brief overview of the environmental regulatory landscape?
Reprinted courtesy of
Anne Idsal Austin, Pillsbury and
Joel Simon, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Mr. Simon may be contacted at joel.simon@pillsburylaw.com
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David M. McLain named Law Week Colorado’s 2015 Barrister’s Best Construction Defects Lawyer for Defendants
September 17, 2015 —
Sheri Roswell – Colorado Construction LitigationIt is my sincere pleasure to announce Law Week Colorado named my friend and partner, Dave McLain, as the 2015 Barrister’s Best Construction Defects Lawyer for Defendants. Law Week Colorado’s summary of David’s accomplishments includes the following recognition:
David McLain has set himself apart in the heated area of construction defects litigation as a founding member of his firm and as a member of several associations that serve developers. As one of the most connected and most vocal members of this area of law, we certainly know whom to go to when the construction defects issue inevitably bubbles up again.
I can say with pride and certainty, that there is no one more deserving of such recognition in the legal and construction community than David. I have had the honor of working side by side with David since he began practicing law. Together, fourteen years ago, we founded Higgins, Hopkins, McLain & Roswell, LLC with a vision of serving the construction industry at the highest level. Our firm’s Mission Statement states that “HHMR exists to embody and exemplify the principles of service and stewardship. In everything we do, we focus on serving our clients selflessly and to the best of our ability.” David lives our values each and every day.
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Sheri Roswell, Higgins, Hopkins, McLain & Roswell, LLCMs. Roswell may be contacted at
roswell@hhmrlaw.com
Insured Versus Insured Clause Does Not Bar Coverage
September 17, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Fifth Circuit considered whether coverage was barred under the policy's insured versus insured provision. Kinsale Ins. Co. v. Georgia-Pacific, L.L.C., 2015 U.S. App. LEXIS 12976 (5th Cir. July 27, 2015).
Georgia-Pacific hired Advanced Services, Inc. for demolition work at Georgia-Pacific's idled plywood plant. A fire occurred at the plant, damaging equipment Advanced had leased from H&E Equipment for the demolition work.
Several lawsuits followed. One was brought by H&E against Advanced. Advanced filed a third-party demand for indemnification against Georgia-Pacific for any damages Advanced was required to pay H&E.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Supreme Court Set to Alter Law on Key Project, Workforce Issues
December 02, 2019 —
Mary B. Powers & Debra K. Rubin - Engineering News-RecordWith its term now under way, the U.S. Supreme Court could change federal laws with industry impact—from where huge pipelines can be built and new regulation of pollution in groundwater to whether LGBTQ workers have anti-bias rights under the 1964 Civil Rights Act.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Mr. Rubin may be contacted at rubind@enr.com
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California Reinstates COVID-19 Supplemental Paid Sick Leave
February 21, 2022 —
Jessica L. Daley - Newmeyer DillionOn February 9, 2022, Governor Newsom signed California Legislature Senate Bill 114 (SB 114), which reinstates supplemental paid sick leave for qualifying reasons relating to COVID-19.
Employers may recall SB 95, which expired on September 30, 2021, and was substantially similar to SB 114. Like its predecessor, SB 114 applies to employers with 26 or more employees and provides up to 80 hours of supplemental paid sick leave to full-time employees who are unable to work (including telework) for a reason relating to COVID-19. While this legislation goes into effect on February 19, 2022, it will retroactively apply back to January 1, 2022 and remain in effect until September 30, 2022.
REASONS FOR LEAVE – TWO PERIODS
Unlike SB 95, SB 114 breaks the total possible 80 hours of COVID-19 Supplemental Paid Sick Leave (CSPL) for full-time employees into two 40-hour periods.
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Jessica L. Daley, Newmeyer DillionMs. Daley may be contacted at
jessica.daley@ndlf.com
Overruling Henkel, California Supreme Court Validates Assignment of Policies
October 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a major ruling, the California Supreme Court applied a statutory provision to overrule its prior decision in Henkel Corp. v. Hartford Accident & Indemn. Co., 29 Cal. 4th 934 (2003) and ruled that liability policies can be assigned despite non-assignment provisions. See Fluor Corp. v. Superior Court, 2015 Cal. LEXIS 5631 (Cal. Aug. 20, 2015). The Hawaii Supreme Court relied on Henkel when it also found anti-consent provisions valid. See Del Monte Fresh Fresh Produce (Hawaii), Inc. v. Fireman's Fund Ins. Co., 117 Haw. 357, 183 P.3d 734 (2007) [see posts here and here].
For decades, Fluor Corporation performed engineering, procurement, and construction (EPC) operations through various corporate entities and subsidiaries. Beginning in 1971, Hartford issued up to 11 CGL policies to Fluor from 1971 to 1986. Each policy contained a consent-to-assignment clause reading: "Assignment of interest under the policy shall not bind the Company until its consent is endorsed hereon."
Beginning in the mid-1980s, Fluor Corporation was sued in numerous lawsuits claiming personal injury from asbestos exposure. Fluor Corporation tendered the early lawsuits to Hartford, which accepted the defense. Fluor Corporation subsequently went through a reverse spinoff under which a newly formed subsidiary, Fluor 2, took over the continuation of the company's EPC businesses. The original Fluor transferred all of its EPC-related assets and liabilities to Fluor-2, making Fluor-2 the parent of the EPC subsidiaries. The transaction did not except any insurance rights from the transfer of "any and all" assets.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com