A Court-Side Seat: Coal-Fired Limitations, the Search for a Venue Climate Change and New Agency Rules that May or May Not Stick Around
February 15, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of recent significant environmental and administrative law rulings and developments. With the change in presidential administrations, the fate of at least some of the newly promulgated rules is uncertain.
THE U.S. SUPREME COURT
BP PLC v. City and County of Baltimore
On January 19, 2021, the Court heard oral argument in BP PLC v. City and County of Baltimore. The respondents filed a Greenhous Gas Climate Change lawsuit in state court, alleging that BP, like other energy companies, is liable for significant damage caused by the sale and promotion of petroleum products while knowing that the use of these products and the resulting release of greenhouse gases damages the environment and public property. Several similar lawsuits have been filed in state courts, pleading common law violations as well as trespass and nuisance law violations The energy companies have tried, unsuccessfully to date, to remove these cases to federal court. The petitioners argue that the federal removal statutes allow the federal courts of appeal to review the lower court’s remand, thus opening the possibility that some of the issues presented in these cases can be tried in federal court, presumably a friendlier forum. A decision on this procedural issue should be rendered in a few months. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
Client Alert: Stipulated Judgment For Full Amount Of Underlying Claim As Security For Compromise Settlement Void As Unenforceable Penalty
March 26, 2014 — David W. Evans, Krsto Mijanovic, and Gregory M. Smith-Haight Brown & Bonesteel LLP
In Purcell v. Schweitzer (No. D063435 - filed February 24, 2014, certified for publication March 17, 2014), the Fourth District Court of Appeal upheld an order setting aside a stipulated default judgment for the full amount of plaintiff’s claim which had been agreed to by the parties to a settlement agreement, finding that it constituted an unenforceable penalty because the amount bore no reasonable relationship to the settling party’s actual damages resulting from a breach of the settlement agreement.
In an agreement settling a breach of contract action seeking $85,000 in damages based on an unpaid debt, the plaintiff agreed to settle the claim and to accept $38,000 in 24 monthly installments, including interest on the unpaid principal at 8.5 percent. The agreement provided that payments were due on the first day of each month and to be considered “timely,” had to be received by the fifth day of each month. If any payment was not made on time, it was to be considered a breach of the entire settlement agreement, making the entire $85,000 original liability due pursuant to a stipulation for entry of judgment for such amount. The stipulation included language to the effect that the $85,000 figure accounted for the “economics” of further proceedings. The agreement also specified that the foregoing provision did not constitute an unlawful “penalty” or “forfeiture” and that defendant waived any right to an appeal and any right to contest or seek to set aside such a judgment.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys David W. Evans, Krsto Mijanovic, and Gregory M. Smith
Mr. Evans may be contacted at devans@hbblaw.com; Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com, and Mr. Smith may be contacted at gsmith@hbblaw.com Read the court decision
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Construction Defect Claim over LAX Runways
October 22, 2013 — CDJ STAFF
The city of Los Angeles is claiming that problems with the south runway at Los Angeles International Airport are due to construction defects. The city as filed a lawsuit against four of the firms involved in building the runway, CH2M Hill, R&L Brosamer, HNTB, and Tutor-Saliba Corp. The lawsuit also includes the possibility of naming up to 200 individuals or corporations.
The suit alleges that the firms incorrectly installed the concrete, leading to accelerated wear. As a result, renovation of the runway will likely have to be done earlier than anticipated. The runway was opened in 2007 as part of a safety improvement effort.
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Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
November 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
A recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022).
The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components.
The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor. 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
An Additional Insured’s Reasonable Expectations may be Different from the Named Insured’s and Must be Considered to Determine whether the Additional Insured is Entitled to Defense from the Insurer of a Commercial Excess & Umbrella Liability Policy
June 12, 2014 — Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq. and Kacey R. Riccomini, Esq. – Chapman Glucksman Dean Roeb & Barger
The Second District Court of Appeal’s recent decision, Transport Insurance Company v. Superior Court (2014) 222 Cal.App.4th 1216, immediately affects builders and contractors (collectively “builders”) who are often named as additional insureds (AIs) to contractors’ general liability policies. The decision is an important tool for builders’ counsel because the builder’s reasonable expectations can alter the interpretation of ambiguous terms in policies issued to subcontractors. Essentially, the builder’s intent is relevant to the interpretation of policy terms because the subcontractor’s intent in requesting additional coverage depends on the agreement it made with the builder. The salient aspects of the facts, the Appellate Court’s reasoning, and practical considerations are discussed below.
Transport Insurance Company (Transport) issued a commercial excess and umbrella liability policy (Policy) to Vulcan Materials Company (Vulcan), naming R.R. Street & Co., Inc. (Street) as an AI for its distribution of a solvent. The Policy provided that Transport would indemnify and defend the insured for loss caused by property damage if (1) it was not covered by “underlying insurance” but was within the terms of coverage of the Policy, or (2) if the limits of liability of the “underlying insurance” were exhausted during the Policy period due to property damage. The Policy included a Schedule of Underlying Insurance (Schedule) that listed policies issued to Vulcan. Thereafter, Vulcan and Street were named as defendants in several environmental contamination actions (Underlying Actions).
Transport brought a declaratory relief action against Vulcan regarding Transport’s duty to defend. (Legacy Vulcan Corp. v. Superior Court (Legacy Vulcan) (2010) 185 Cal.App.4th 677). The trial court found the term “underlying insurance” ambiguous as it was not expressly defined to include only the policies on the Schedule and could be interpreted to include all primary policies in effect. Vulcan challenged the trial court’s decision by petition for writ of mandate, contending “underlying insurance” only included policies listed on the Schedule. The Court of Appeal found “underlying insurance” ambiguous because it was an expressly qualified term under other Policy provisions but not in the umbrella coverage provision and, thus, it was a generic term that was not limited to policies listed in the Schedule or inclusive of all primary insurance.
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys Richard H. Glucksman, Jon A. Turigliatto and Kacey R. Riccomini
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com; Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com, and Ms. Riccomini may be contacted at kriccomini@cgdrblaw.com
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U.S. Codes for Deck Attachment
July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
Ted Cushman in Big Builder explained how “decks often collapse when the ledger attachment to the main house fails.” Now, codes require “positive attachment…a solid connection with closely spaced lag screws (or better yet, bolts)." Cushman demonstrated this pictorially in a detail. He also stated to make sure to fasten securely, remove siding, and install flashing. Read the court decision
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Clearly Determining in Contract Who Determines Arbitrability of Dispute
April 26, 2021 — David Adelstein - Florida Construction Legal Updates
As you know from prior postings: “Arbitration provisions are creatures of contract and must be construed ‘as a matter of contract interpretation.’ ” Fallang Family Limited Partnership v. Privcap Companies, LLC, 46 Fla.L.Weekly D639e (Fla. 4th DCA 2021) (citation omitted). Thus, if you prefer to arbitrate potential disputes, instead of litigating potential disputes, you want to include an arbitration provision in your contract. While there are positives and negatives to arbitration, no different than litigation, these positives and negatives should be considered during the contract negotiation process when dealing with the dispute resolution process in the contract.
Generally, under the law, the arbitrability of a dispute is determined by the court. However, this can be deferred to the arbitrator with clear and unmistakable language in the contract.
By way of example, the American Arbitration Association includes a rule that allows an arbitrator to rule on the arbitrability of the dispute, i.e., the claims asserted are subject to the governing arbitration provision in the contract. Recent law has suggested that if the objective is to authorize an American Arbitration Association arbitrator to make this determination, the contract clearly and unmistakably needs to state this intent and generally referring to the American Arbitration Association rules is not good enough. For this reason, I have included in arbitration provisions language that specifically states, “In the event of any dispute as to the arbitrability of any claim or dispute, the parties agree that an appointed arbitrator within the American Arbitration Association shall make this determination.” I have also included in arbitration provisions the converse so that if there is a dispute as to the arbitrability of a claim or dispute, the court, and not the arbitrator, will make this determination. 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
Now Available: Seyfarth’s 50 State Lien Law Notice Requirements Guide (2023-2024 Edition)
December 23, 2023 — Seyfarth Shaw LLP
Seyfarth’s Construction team is pleased to announce the release of our 2023-2024 edition of the 50 State Lien Law Notice Requirements Guide. The Guide provides the general time requirements for filing lien notices in each state, plus Washington, DC.
Reprinted courtesy of Seyfarth Shaw LLP
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