Top 10 Cases of 2019
February 10, 2020 —
Jeffrey J. Vita, Grace V. Hebbel & Andrew G. Heckler - Saxe Doernberger & Vita, P.C.In the 2019 edition of SDV’s Top Ten Insurance Cases, we probe wiretapping claims under an armed security services policy, delicately sniff out E&O coverage for a company using cow manure to create electricity, scour the earth for coverage for crumbling foundation claims, and inspect D&O policies for government investigation coverage. In addition, we preview some important and exciting decisions due in 2020. Without further ado, SDV raises the curtain on the most informative and influential insurance
coverage decisions of 2019.1
1.
ACE American Ins. Co. v. American Medical Plumbing, Inc.,
206 A.3d 437 (N.J. Super. Ct. App. Div. 2019)
April 4, 2019
Is waiver of subrogation language in a standard AIA201 contract sufficient to bar an insurer’s subrogation rights?
The New Jersey Supreme Court held that it was. Equinox Development obtained a comprehensive blanket all-risk policy with limits of $32 million per occurrence from ACE American Ins. Co. (“ACE”). The policy covered Equinox’s new project in Summit, New Jersey. Equinox hired Grace Construction as GC, who in turn subcontracted the plumbing scope of work to American Medical Plumbing, Inc. (“American”). After completion of the work under the subcontract, a water main failed and flooded the entire project. ACE paid the limits of the policy and subrogated against American to recover its losses. American argued that there was a waiver of subrogation in the AIA201 contract that barred the suit. ACE challenged the validity of the AIA provision, arguing that it applied only to claims before completion of construction and that it only applied to damage to the work itself and not to adjacent property. The court rejected both arguments, finding that the AIA provision effectively barred ACE’s subrogation claim. This decision provides guidance on a frequently used contract form for contractors across the country.
Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys
Jeffrey J. Vita,
Grace V. Hebbel and
Andrew G. Heckler
Mr. Vita may be contacted at jjv@sdvlaw.com
Ms. Hebbel may be contacted at gvh@sdvlaw.com
Mr. Heckler may be contacted at agh@sdvlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Real Estate & Construction News Round-Up (01/25/23) – Artificial Intelligence, Proptech Innovation, and Drone Adoption
February 14, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores new artificial intelligence tools and their projected impact on real estate agents, key trends driving proptech innovation, barriers to adopting drones in the construction industry, and more.
- Artificial intelligence (AI) has the potential to become an invaluable tool to streamline the selling journey of a property, empower buyers to make informed decisions, and enhance the work of real estate agents. (Alexandra Cain, The Urban Developer)
- Miami real estate agents experiment with the new artificial intelligence tool, ChatGPT, which can generate text based on simple prompts, to write house listings, communicate with developers, and produce content. (Martin Vassolo, Axios)
- Asset owners in Asia and Europe turn to artificial intelligence to collect ESG information across public and private markets, including from residential buildings in Japan. (Hugo Cox, Asian Investor)
Read the court decisionRead the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
District of Oregon Predicts Oregon’s Place in “Plain Meaning” Pollution Camp
March 29, 2017 —
William S. Bennett – Saxe Doernberger & Vita, P.C.The Federal District Court for the District of Oregon recently decided that Carbon Monoxide constitutes a pollutant within the meaning of a pollution exclusion in a Commercial General Liability (“CGL”) policy.
In Colony Ins. V. Victory Constr. LLC, No. 3: 16-cv-00457-HZ (Mar. 14, 2017), the District Court considered whether there was coverage for a pool company that allegedly failed to warn of the “risks of carbon monoxide poisoning associated with operating the heater in an insufficiently ventilated area,” leading to carbon monoxide sickness.
Read the court decisionRead the full story...Reprinted courtesy of
William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
Unqualified Threat to Picket a Neutral is Unfair Labor Practice
January 08, 2019 —
Wally Zimolong - Supplemental ConditionsOn December 27, 2018, the National Labor Relations Board enforced a decades old policy that a union’s unqualified threat to picket a neutral employer at a “common situs” a/k/a a construction site is a violation of the National Labor Relations Act.
Background
The case involved area standards picketing by the IBEW of a project owned by the Las Vegas Convention and Visitors Authority (LVCVA). The IBEW sent a letter to various affiliated unions who were working on the project advising them of its intent to engage in area standards picketing at the project directed to the merit shop electrical subcontractor performing work there. The IBEW also sent a copy of the letter to the LVCVA.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Allegations that Carrier Failed to Adequately Investigate Survive Demurrer
July 30, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal reversed the trial court's dismissal of a complaint alleging bad faith for the insurer's failure to adequately investigate the claim. Maslo v. Ameriprise Auto & Home Ins., 2014 Cal. App. LEXIS 564 (Cal. Ct. App. June 27, 2014).
The insured was injured in an auto accident caused by an uninsured motorist. The insured sought policy limits of $250,000 from the insurer. In response, the insurer demanded arbitration. The arbitrator awarded $164,120.91.
The insured sued, alleging the breach of the covenant of good faith and fair dealing. The First Amended Complaint (FAC) alleged the insured was not at fault. The police report found that the uninsured motorist was the sole cause of the accident. The insured provided the police report and medical records to the insurer. When the insured demanded the $250,000 policy limits, the insurer did not respond.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado’s New Construction Defect Law Takes Effect in September: What You Need to Know
November 21, 2017 —
Jesse Witt - The Witt Law FirmOriginally published by CDJ on September 7, 2017
Colorado’s new construction defect law officially takes effect this month. Although HB 17-1279 was passed in May, the statutory text provides that it only applies “with respect to events and circumstances occurring on or after September 1, 2017.” With that date now upon us, practitioners should be mindful of the law’s new requirements.
The law applies to any lawsuit wherein a homeowner association files a construction defect action on behalf of two or more of its members. “Construction defect action” is defined broadly to include any claims against construction professionals relating to deficiencies in design or construction of real property. Before an association may commence such an action, its board must follow several steps.
First, the board must deliver notice of the potential construction defect action to all homeowners and the affected construction professionals at their last known addresses. This requirement does not apply to construction professionals identified after the notice has been mailed, or to construction professionals joined in a previously-approved lawsuit. The notice must include a description of the alleged construction defects with reasonable specificity, the relief sought, a good-faith estimate of the benefits and risks involved, and a list of mandatory disclosures concerning assessments, attorney fees, and the marketability of units affected by construction defects. The notice must also call a meeting of all homeowners. The notice should be sent to the construction professionals at least five days before the homeowners.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Texas School System Goes to Court over Construction Defect
December 30, 2013 —
CDJ STAFFThe Zapata County Independent School District filed a lawsuit against Satterfield and Pontikes, claiming construction defect in two schools and two gyms that the company built for the district, according to the Laredo Morning Times. The company built two elementary schools, Zapata South and Fidel & Andrea Villarreal, and the gyms were built at Zapata North and Arturo L. Benavides. The case is scheduled to reach the courtroom in January, 2014.
Read the court decisionRead the full story...Reprinted courtesy of
Without Reservations: Fourth Circuit Affirms That Vague Reservation of Rights Waived Insurers’ Coverage Arguments
January 09, 2023 —
Lara Degenhart Cassidy & Matthew J. Revis - Hunton Insurance Recovery BlogThe Fourth Circuit recently affirmed insurance coverage for a South Carolina policyholder based on the “axiomatic principle” that an insurer which fails to fully and fairly articulate its potential coverage defenses in a reservation of rights letter loses the right to contest coverage on those grounds.
Stoneledge at Lake Keowee Owner’s Assoc. v. Cincinnati Ins. Co., No. 19-2009, 2022 WL 17592121 (4th Cir. 2022) (quoting Harleysville Group Insurance v. Heritage Communities, Inc., 803 S.E.2d 288 (S.C. 2017)). More particularly, in Stoneledge, the Fourth Circuit affirmed per curiam a South Carolina District Court’s grant of summary judgment in favor of a homeowners association that had successfully sued its general contractors for construction defects and was seeking to recover the damages owed from the contractors’ insurers. The Fourth Circuit agreed that the insurers’ vague reservation of rights letters failed to reserve the defenses on which the insurers purported to deny coverage.
The question before the court in Stoneledge was whether the two insurers that had each agreed to defend their respective general-contractor insureds in the homeowner association’s underlying litigation had sufficiently informed their policyholders of their coverage positions. Specifically, the court considered whether the insurers provided notice of their intention to challenge coverage on specific bases and explained why those bases applied in their respective reservation of rights letters. Both of the insurers’ letters followed the typical approach of identifying various policy provisions and exclusions and outlining the general mechanics of those provisions, but they fell short of applying the provisions or exclusions to the facts in the case at hand. Further, the letters stated that the insurers would reevaluate how the provisions applied as the underlying case progressed. One of the insurer’s letters expressed doubt as to coverage but did not offer any analysis on the reasons for the prospective coverage denial.
Reprinted courtesy of
Lara Degenhart Cassidy, Hunton Andrews Kurth and
Matthew J. Revis, Hunton Andrews Kurth
Ms. Cassidy may be contacted at lcassidy@HuntonAK.com
Mr. Revis may be contacted at mrevis@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of