Appraisal Process Analyzed
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal offered a primer in the appraisal process in reversing the trial court's confirmation of the appraisal award. Lee v. California Capital Ins. Co., 2015 Cal. App. LEXIS 530 (Cal. Ct. App. June 18, 2015).
A fire damaged an apartment building owned by the insured. The fire started in unit 3 on the ground floor. The insurer argued the fire did not extend beyond unit 3. The insured claimed that the fire damaged six of the 12 apartments with fire or smoke.
The insured's public adjuster submitted a claim to the insurer that exceeded $800,000. The statement of loss included costs for cleaning, asbestos abatement, reconstruction of affected apartments, and loss of rent. The public adjuster said the loss consisted of burn damage to unit 3 and some damage to the "common" walls located between the apartments on the two floors above unit 3. All of the interior rooms of five apartments other than unit 3 would need to be completely dismantled and then replaced.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Appraisal Appropriate Despite Pending Coverage Issues
August 16, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insured's motion for partial summary judgment, allowing an appraisal to go forward even with outstanding coverage issues in dispute. DC Plastic Products Corp. v. Westchester Surplus Lines Ins. Co., 2021 U,.S. Dist. LEXIS 95908 (D. N.J. May 19, 2021).
DC Plastic's property was damaged by Superstorm Sandy in October 2012. Claims submitted to Westchester resulted in a payment of $951,102.89 to DC Plastic. The parties disagreed on whether further payments were due. In 2017, DC Plastic sued Westchester for additional payments. DC Plastic moved to compel an appraisal for its claims, requesting that the court appoint an umpire for the appraisal process. Westchester cross-moved to dismiss the case in its entirety.
DC Plastic's complaint asked that the court appoint an umpire. The policy stated if the parties could not agree on the amount of loss, each party would select an appraiser, who would then agree upon an umpire. If they could not agree, either party could request the court to appoint the umpire. Therefore, the court was authorised to select the umpire here.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Roadway Contractor Owed Duty of Care to Driver Injured Outside of Construction Zone
January 04, 2021 —
Garret Murai - California Construction Law BlogFor the roadway contractor it appeared to be an open and shut case:
Plaintiff car driver was stopped at a standard one-way “reversing lane closure” traffic control in which traffic going in one direction would be stopped while traffic going in the other direction was allowed to proceed, and then the procedure would be reversed.
Plaintiff, while stopped at the traffic control, was rear-ended by another vehicle driven by George Smithson. Smithson testified that he “must have looked off to the side” at some point prior to the collision because he did not see plaintiff’s vehicle before hitting it. He also testified that the primary reason the accident happened was that he was not paying attention and that he knew of no other cause of the accident.
For the roadway contractor you couldn’t ask for a better admission. And it ended in the trial court just the way you thought it would, with a win for the roadway contractor. That is, until it was appealed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Understanding the Real Estate and Tax Implications of Florida's Buyer Ban Law
July 16, 2023 —
Kelly Erb - White and Williams LLPLast month, Gov. Ron DeSantis (R) of Florida signed a new law that would prohibit people who are not U.S. citizens or permanent residents and whose "domicile" is in China from purchasing certain real property in the state. Generally, the prohibition applies to agricultural land and other land within ten miles of restricted areas, including military bases and infrastructure like airports and wastewater treatment plants.
The law, which takes effect on July 1, 2023, would also impose criminal penalties on any person or real estate company that knowingly sells real estate in the Sunshine State to anyone impacted by the ban.
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Kelly Erb, White and Williams LLPMs. Erb may be contacted at
erbk@whiteandwilliams.com
One Colorado Court Allows Negligence Claim by General Contractor Against Subcontractor
December 20, 2012 —
HEATHER ANDERSON , HIGGINS, HOPKINS, MCLAIN & ROSWELLJudge Paul King of the Douglas County District Court recently confirmed that subcontractors in residential construction owe an independent duty, separate and apart from any contractual duties, to act without negligence in the construction of a home in Colorado. See Order, dated September 7, 2010,
Sunoo v. Hickory Homes, Inc. et al., Case No. 2007CV1866; see also
Cosmopolitan Homes, Inc. v. Weller, 663 P.2d 1041 (Colo. 1983);
A.C. Excavating v. Yacht Club II Homeowners Ass’n, Inc., 114 P.3d 862 (Colo. 2005). He also verified that the holding in the
B.R.W. Inc. v. Dufficy & Sons, Inc., 99 P.3d 66 (Colo. 2004)[1] case does not prohibit general contractors, such as Hickory Homes, from enforcing a subcontractor’s independent duty to act without negligence in the construction of a home.
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Heather Anderson, Higgins, Hopkins, McLain & Roswell, LLC.Ms. Anderson can be contacted at
anderson@hhmrlaw.com
Biden Unveils $2.3 Trillion American Jobs Plan
May 10, 2021 —
Garret Murai - California Construction Law BlogThis past week, President Biden unveiled his American Jobs Plan, a $2.3 trillion dollar plan to upgrade the nation’s infrastructure over 8 years.
As we wrote about this past month, the American Society of Civil Engineers recently issued its 2021 Infrastructure Report Card which gave the country’s infrastructure a cumulative grade point average across several areas including roads, public transportations and schools of a disappointing C-. According to a White House fact sheet on the American Jobs Plan, while the United States is the wealthiest county in the world it currently ranks 13th when it comes to the overall quality of its infrastructure.
Infrastructure spending at the federal level has historically been paid for through the gas tax. Currently, that tax is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel. The last time the federal gas tax was increased, however, was nearly 30 years ago in 1993. The reason for this long hiatus? Voter backlash and backlash by big businesses whose fleets still primarily rely on fossil fuels and diminishing returns as the number of electrical and hybrid vehicles increasingly hit the streets.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
How the California and Maui Wildfires Will Affect Future Construction Projects
October 30, 2023 —
Susan Doering - Construction ExecutiveJust like any kind of fire, wildfires are caused by the presence of fuel and a spark. In the case of the
2017 fires in the wine country of California, along with the state's 2018
Camp Fire, the fuel was dry leaf litter, branches and downed trees. And the spark, in some cases, resulted from electric utility lines and, in other cases, due to contractor’s work.
More recently, this summer's Maui fires have taken hundreds of lives—deceased and missing—and burned more than 2,500 acres. Lahaina’s historic sites cannot be replaced, and estimates of the rebuild costs are near $5 billion. In Hawaii, the fuel was the same as in California: dried forest debris. It is alleged that the spark was from a powerline downed by extreme winds from Hurricane Dora. While sparks were present, it is the increased volume of fuel that has been the true source of the disastrous recent wildfires.
The increased presence of fuel is the result of recent changes in forestry-management practices, coupled with accelerated climatic shifts in recent years toward hotter, drier weather from 2011 to 2020 in California and 2022 to 2023 in Maui, increasing both frequency and severity.
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Susan Doering, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Halted in Wisconsin Due to Alleged Bid Issues
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFA $9 million construction project in Middleton, Wisconsin has been halted due to an allegation that the construction company, Newcomb, did not comply with the advertised bid requirements and they were not the lowest bidder, according to the Wisconsin State Journal.
“Dane County Judge Rhonda Lanford issued a temporary restraining order at the request of Associated General Contractors of Wisconsin asking the city to stop work on the…facility,” the Wisconsin State Journal reported.
“We are pleased with the court’s decision. Fairness and transparency in public contracting is critical for the industry,” Robert Barker, Associated’s executive vice president, told the Wisconsin State Journal. “The city must abide by the rules so that all bidders are given a fair shake.”
However, the city stated that Newcomb was the construction company with the lowest bid in that category.
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