Court Affirms Duty to Defend Additional Insured Contractor
December 05, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the lower court's ruling that the insurer must defend. Main St. Am. Assurance Co. v. Merchants Mut. Ins. Co., 2022 N.Y. App. Div. LEXIS 5507 (N.Y. App. Div., Oct. 7, 2022).
XL Construction Services, LLC was the contractor on a construction project. Timothy J. O'Connor was insured when performing drywall finishing as a self-employee subcontractor on the project. As part of a written indemnification and insurance agreement between the parties, O'Connor was obligated to obtain insurance for the benefit of XL Construction. O'Connor was insured by Merchants Mutual Insurance Company under a policy containing an additional insureds endorsement that provided coverage to a party where required by a written agreement, but "only with respect to liability for 'bodily injury' . . . caused in whole or in part, by . . . [O'Connor's] acts or omissions."
The trial court found there was a duty to defend and entered judgment that Merchants Mutual was obligated to provided a defense to XL Construction.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas City Pulls Plug on Fossil Fuels With Shift to Solar
March 19, 2015 —
Christopher Martin – Bloomberg(Bloomberg) -- A city in the heart of the oil state of Texas is set to become one of the first communities in the U.S. to wean its residents off fossil fuels.
The municipal utility in Georgetown, with about 50,000 residents, will get all of its power from renewable resources when SunEdison Inc. completes 150 megawatts of solar farms in West Texas next year. The change was announced Wednesday.
It will be the first city to completely embrace clean power in the state, which is the biggest U.S. producer and user of natural gas. More will follow as municipalities seek to insulate themselves from unpredictable prices for fossil fuels, said Paul Gaynor, SunEdison’s executive vice president of North America. Burlington, Vermont, made a similar move with its purchase of a hydroelectric plant last year.
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Christopher Martin, BloombergMr. Martin may be contacted at
cmartin11@bloomberg.net
A Court-Side Seat: “Inholdings” Upheld, a Pecos Bill Come Due and Agency Actions Abound
January 25, 2021 —
Anthony B. Cavender - Gravel2GavelHere are some significant environmental and regulatory rulings and administrative actions from December 2020.
THE U.S. SUPREME COURT
Texas v. New Mexico
On December 14, 2020, the U.S. Supreme Court decided a water rights controversy involving sharing the water of the Pecos River. The 1949 Pecos River Compact provides for the equitable apportionment of the use of the Pecos River’s water by New Mexico and Texas, and a “River Master’s Manual,” approved by the Court in 1988, implements the Compact. These are very dry areas, and access to this water is very important. In 2014, a rare tropical storm drenched the Pecos River Basin, and Texas asked New Mexico to temporarily store the water that would otherwise flow into Texas. A few months later, New Mexico released the water to Texas, but the quantity was reduced because some of the water held by New Mexico had evaporated. The River Master awarded a delivery credit to New Mexico, and after Texas objected, Texas “in response” filed the Original Jurisdiction of the Court, suing New Mexico and seeking a review of the River Master’s determination. The Court held for New Mexico, deciding that this dispute was subject to and resolved by the Manual. This case is important because it highlights the high value the states place on the equitable apportionment of water that flows through different states.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Manhattan Condos at Half Price Reshape New York’s Harlem
August 20, 2014 —
Jonathan LaMantia – BloombergJason and Robyn Turetsky watched from their window as, brick by brick, a new condominium development rose across 116th Street in New York’s Harlem.
The Turetskys, who married in December, decided to buy a three-bedroom, 1,500-square-foot (140-square-meter) unit at the Adeline, right across from their current rental. Staying in the neighborhood presented a better value than anywhere else they’d considered, including the Upper East Side and Upper West Side, where Robyn lived before moving in with Jason, the couple said.
“For the amenities that were going to be provided at the Adeline and the size of the apartment, we could just get much more for our money in Harlem,” said Robyn Turetsky, a 28-year-old clinical dietitian.
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Jonathan LaMantia, BloombergMr. Lamantia may be contacted at
jlamantia1@bloomberg.net
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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Construction Defects Are Occurrences, Says South Carolina High Court
December 20, 2012 —
CDJ STAFFThe South Carolina Supreme Court has left the legislature’s new, expanded definition of “occurrence” in place, declining to declare it unconstitutional. South Carolina included faulty workmanship as an occurrence in response to a Supreme Court decision, which the court later reversed. One of the parties in that earlier decision, Harleysville Insurance, challenged the new law, claiming that the legislature didn’t have the power to pass a law to overturn a court ruling. The court did not concur.
However, the court did determine that the law was not retroactive and covered only claims filed after the law became effective in May 2011. The Chief Justice of South Carolina noted that “insurance coverage for construction liability lacks clarity, particularly with respect to whether construction defects constitute ‘occurrences’ under construction general insurance policies.”
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Wendel Rosen Construction Attorneys Recognized by Super Lawyers
July 30, 2018 —
Garret Murai - California Construction Law BlogWendel Rosen Construction Practice Group Co-Chairs, Garret Murai and Quinlan Tom, have been selected for inclusion as 2018 Northern California Super Lawyers in the area of Construction Litigation. Murai and Tom are among 26 other attorneys at the firm who were selected as either 2018 Northern California Super Lawyers or Rising Stars by Thompson Reuters.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
One More Mechanic’s Lien Number- the Number 30
March 06, 2023 —
Christopher G. Hill - Construction Law MusingsI’ve spoken here often about the numbers
90 and 150 as they relate to
Virginia mechanic’s liens. These numbers are important for all mechanic’s liens in Virginia, whether commercial or residential (meaning liens for 1 and 2-family homes). There is another number, 30, that is important for those construction contractors that perform work on single and two-family homes. Where a mechanic’s lien agent is named on the building permit (or possibly just named if not stated on the permit), and
among other requirements,
Va. Code 43-4.01 requires that, in order to have lien rights at the project, the contractor must provide notice to the mechanic’s lien agent within 30 days of beginning work that it is performing work and shall seek payment for the work.
Further, the mechanic’s lien agent notice must contain the following:
(i) the name, mailing address, and telephone number of the person sending such notice, (ii) the person’s license or certificate number issued by the Board for Contractors pursuant to Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1, if any, and the date such license or certificate was issued and the date such license or certificate expires, (iii) the building permit number on the building permit, (iv) a description of the property as shown on the building permit, and (v) a statement that the person filing such notice seeks payment for labor performed or material furnished.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com