Appeals Court Rules that CGL Policy Doesn’t Cover Subcontractors’ Faulty Work
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Business Insurance, in J-McDaniel Construction Co. Inc. v. Mid-Continental Casualty Co. et al., an appeals court upheld a lower court ruling that a “construction company's commercial general liability insurance policy does not provide coverage for faulty workmanship or subcontractor negligence.”
“We are not at liberty to disregard the binding law of the state, nor may we substitute our judgment for that of the Arkansas Supreme Court,” said the panel, in affirming the lower court ruling, as quoted in Business Insurance.
Judy Greenwald of Business Insurance pointed out that “[l]ast year, the 6th U.S. Circuit Court of Appeals in Cincinnati held that a subcontractor's allegedly faulty preparation of a building pad, which resulted in subsequent settling and structural damage to the building constructed on top of it, was not an occurrence within the standard coverage language of a CGL policy.”
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Pulled from the Swamp: EPA Wetland Determination Now Judicially Reviewable
September 15, 2016 —
CDJ STAFFLandowners and developers bogged in an EPA wetland determination were recently thrown a life line when the United States Supreme Court determined The Army Corps of Engineer’s (Corps) “jurisdictional determinations” (JD) regarding wetland designations are reviewable by the court. United States Army Corps of Engineers v. Hawkes Co. Inc.
Under the Clean Water Act (CWA) landowners and developers who do not have the proper permits can face severe criminal and civil penalties for releasing any pollutant into “the waters of the United States.” Anybody stuck wading through the permitting process will tell you it is difficult, time consuming, expensive, and may eventually prohibit the intended use of the property. Furthermore, there is yet to be a consensus on the definition or scope of the term “waters of the US”. Consequently, a landowners or developers may never be certain whether a permit is necessary before conducting any activity that may discharge a pollutant into a “water of the United States”.
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Sean Minahan, Lamson, Dugan and Murray, LLPMr. Minahan may be contacted at
sminahan@ldmlaw.com
Settlement Agreement? It Ain’t Over ‘Til it’s . . . Final, in Writing, Fully Executed, and Admissible
April 12, 2021 —
Todd Likman - Colorado Construction LitigationAs litigators we have all been there: nearing the end of a hard-fought mediation that lasted all day. Your significant other texts to ask what is for dinner; daycare closes in thirty minutes; the dog needs to be let out. The mediator, a retired judge, gently reminds you of his prior commitment—a speaking engagement at a volunteer charity dinner event that night. Though the parties started the day at opposite ends of the spectrum, after numerous counteroffers, persistent negotiation, and mediation tactics, they finally strike a deal.
As the mediator prepares a document memorializing the terms of settlement, the parties wait with bloodshot eyes, and a sense of guarded accomplishment considering compromises were
made, but alas, an outcome seems certain. You text your significant other to indicate that you will pick something up for dinner on your way home.
Then, the mediator informs you that computer problems are preventing finalization and transmission of the document for signature. The mediator offers to send an e-mail setting forth the material settlement terms and asks each party to respond via e-mail to confirm the terms are correct, which the parties do. After a quick e-mail to your experts and case team asking them to cease trial preparation work, you leave for home.
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Todd Likman, Higgins, Hopkins, McLain & RoswellMr. Likman may be contacted at
likman@hhmrlaw.com
Hunton Andrews Kurth Insurance Attorney, Latosha M. Ellis, Honored by Business Insurance Magazine
May 03, 2021 —
Andrea DeField & Michael S. Levine - Hunton Andrews KurthWe are proud to share that Business Insurance has named Hunton Andrews Kurth insurance coverage associate, Latosha M. Ellis, one of the magazine’s 2021 Break Out Award winners. Business Insurance’s Break Out Awards honor 40 top professionals from around the country each year who are expected to be the next leaders in risk management and the property/casualty insurance field. Business Insurance reviewed hundreds of nominees, all of whom have worked in commercial insurance or related sectors for under 15 years. Out of those hundreds, Latosha was selected as one of the 40 honorees for 2021.
Latosha is well-deserving of this honor. She is committed to excellence in the practice of law and in her service to clients, both of which have earned her a sterling reputation in the Virginia and District of Columbia legal communities. In addition to her litigation success and excellent client service skills, Latosha is a leader, both in the firm and in the legal community. Latosha not only serves as a mentor to several young attorneys at our firm, but she is also a board member of the University of Richmond Law School Alumni Board (currently serving on a three-year term) and a planning member of the American Bar Association’s (ABA) professional development committee. She also co-chaired the 2021 ABA Insurance Coverage and Litigation Committee Annual CLE Conference, for which she implemented new diversity and inclusion standards and ensured several program sessions geared towards young lawyers. In addition, Latosha was selected as the firm’s 2019 Pathfinder for the Leadership Council for Legal Diversity, serves on the executive board of the Women’s Bar Association of the District of Columbia, and was inducted into the American Bar Association’s Section of Litigation Young Lawyer Leadership Program.
Reprinted courtesy of
Andrea DeField, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Construction Defect Specialist Joins Kansas City Firm
January 13, 2014 —
CDJ STAFFDavid Schatz, whose practice specializes in construction disputes and defects, has joined the Kansas City, Missouri firm Spencer Fane Britt & Brown LLP in their litigation practice group. Mr. Schatz’s expertise also includes banking and finance, banking litigation, commercial disputes, insurance, surety, employment, contract claims, and personal injury.
Pat Whalen, Chairman of Spencer Fane Britt & Brown, said that Schatz “brings great experience across a range of industries, but many of us in Kansas City are particularly pleased by his construction and general litigation credentials, which will fit will with the resources we’re building in those areas.”
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Hurricane Ian: Discussing Wind-Water Disputes
October 10, 2022 —
Randy J. Maniloff - White and Williams LLP“Most of the Florida homes in the path of Hurricane Ian lack flood insurance, posing a major challenge to rebuilding efforts, new data show. In the counties whose residents were told to evacuate, just 18.5 percent of homes have coverage through the National Flood Insurance Program, according to Milliman, an actuarial firm that works with the program.”
That’s how a September 29th article on The New York Times website begins.
When it comes to insurance coverage for hurricanes, the oft-stated maxim is that homeowner’s policies cover damage caused by wind but not flood waters.
Such a low take-up rate for flood insurance policies would seemingly create an incentive for those affected by Hurricane Ian to argue, when feasible, that their property damage, despite appearing to have been caused by flood, was also caused by wind. [And, of course, businesses looking to make business interruption claims, under commercial property policies, will be in the same boat.]
Further, even when someone has a homeowner’s policy and a flood policy, there may still be a reason to argue that the loss was caused by wind, as homeowner’s policies often have greater limits than flood policies.
[As an important aside, when hurricane damages are covered, homeowner’s policies can have a significant deductible, perhaps up to 10% of a home’s insured value.]
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Building Group Has Successful 2012, Looks to 2013
February 14, 2013 —
CDJ STAFFThe North State Building Industry Association has looked back at 2012, and feels that they are “well-positioned to addressed future challenges in 2013 and beyond.” The organization, which represents home builders in Northern California, had several major accomplishments in 2012.
The NSBIA has managed to reduce fees that builders must pay. Due to their work with the Sacramento Regional County Sanitation District and the Sacramento Area Sewer District over the last several years, a new rate and fee methodology has been adopted, saving builders $3,000 per single family unit in SRCSD fees and $1,000 per acre in SASD fees. Fees were also reduced through agreements with the Folsom Cordova unified and Elk Grove school districts. The city of Rancho Cordova reduced its transportation fee by $3,500 per home.
In addition to their advocacy work, the NSBIA has continued its worker training programs. During 2012, 113 people participated in their Journeyman Upgrade classes, an increase of 20 from the prior year.
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Home Prices in 20 U.S. Cities Rise Most Since February 2006
January 29, 2014 —
Jeanna Smialek – BloombergHome prices in 20 U.S. cities rose in November from a year ago by the most in almost eight years, providing a boost to household wealth.
The S&P/Case-Shiller index of property prices in 20 cities climbed 13.7 percent from November 2012, the biggest 12-month gain since February 2006, after a 13.6 percent increase in the year ended in October, a report from the group showed today in New York. The median projection of 31 economists surveyed by Bloomberg called for a 13.8 percent advance.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net