Faulty Workmanship Claims Amount to Multiple Occurrences
August 03, 2022 —
Tred R. Eyerly - Insurance Law HawaiiIn a recommended decision, the magistrate found that claims of faulty workmanship against the insured constituted multiple occurrences. Millsap Waterproofing, Inc. v. United States Fire Ins. Co., 2022 U.S. Dist. LEXIS 90112 (S.D. Tex. May 19, 2022).
Maravilla Condominiums in Galveston, Texas was damaged by Hurricane Ike in 2008. While repairing the damage caused by the hurricane, an unrelated fire broke out and damaged 77 units.
In 2010, the Maravilla Owners Association, Inc. hired several contractors, including Millsap Waterproofing, Inc. Multiple problems arose with the various contractors' work. In 2016, Maravilla sued the contractors alleging that their shoddy work damaged the condominium complex. More than 80 condominium owners intervened, alleging that Millsap negligently performed work on windows, doorways, walkways, and balconies, resulting in extensive water damage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas res judicata and co-insurer defense costs contribution
March 23, 2011 —
CDCoverage.comIn Truck Ins. Exchange v. Mid-Continent Casualty Co., No. 03-08-00526-CV (Tex. App. 3d Aug. 27, 2010), insured contractor DCI was sued by the project owner seeking damages for defective construction. DCI tendered its defense to its CGL insurers Truck and Mid-Continent. Truck agreed to defend while Mid-Continent denied a defense. While the underlying suit was pending, Mid-Continent sued DCI, but not Truck, and obtained a judicial declaration of no duty to defend or indemnify DCI in the underlying suit. After settling the underlying suit, Truck sued Mid-Continent seeking contribution towards defense costs and indemnity payments. The state trial court entered summary judgment for Mid-Continent. The intermediate appellate court affirmed.
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Reprinted courtesy of CDCoverage.com
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Significant Issues Test Applies to Fraudulent Claims to Determine Attorney’s Fees
January 13, 2017 —
David Adelstein - Florida Construction Legal UpdatesConstruction lienors need to appreciate on the frontend that recovering statutory attorney’s fees in a construction lien action is NOT automatic—far from it. This is because the prevailing party for purposes of attorney’s fees in a construction lien action is determined by the “significant issues test,” a subjective test with no bright line standards based on who the trial court finds prevailed on the significant issues in the case. If you want to talk about the subjective and convoluted nature of recovering attorney’s fees in a construction lien action under the significant issues test, a recent opinion by the Fourth District Court of Appeal is unfortunately another nail in the coffin.
In Newman v. Guerra, 2017 WL 33702 (Fla. 4th DCA 2017), a contractor recorded a construction lien on a residential renovation project and filed a lien foreclosure lawsuit. The homeowner countersued the contractor and asserted a fraudulent lien claim pursuant to Florida Statute s. 713.31. An evidentiary hearing was held on whether the lien was a fraudulent lien and the trial court held that the lien was fraudulent (therefore unenforceable) because it included amounts that were not lienable under the law. The remaining claims including both parties’ breach of contract claims proceeded to trial. There was no attorney’s fees provision in the contract. At the conclusion of the trial, the court found that the contractor was entitled a monetary judgment on its breach of contract claim.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Las Vegas Team Obtains Complete Dismissal of a Traumatic Brain Injury Claim
June 21, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Partner,
Jeffrey W. Saab and Associate,
Shanna B. Carter on their successful Motion to Dismiss!
This personal injury claim arose from an incident whereby Plaintiff allegedly tripped and fell in front of the client’s business and sustained a traumatic brain injury. Initially, a default was entered against the client, and BWB&O was retained to unwind the same, and then defend against the claim. However, during the initial investigation, Shanna uncovered a defect in the service of the Complaint which invalidated not only the default, but more importantly service of the Complaint itself. Working as a team, Shanna performed the research and writing, and Jeff argued the Motion to Dismiss which was granted dispensing of the entire claim.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Colorado Senate Bill 15-177: This Year’s Attempt at Reasonable Construction Defect Reform
February 18, 2015 —
Zach McLeroy – Colorado Construction LitigationOn February 10, 2015, Senators Scheffer and Ulibarri introduced Senate Bill 15-177, which is sponsored in the House by Representatives DelGrosso and Singer. SB 15-177 amends the prerequisites, found in the Colorado Common Interest Ownership Act (“CCIOA”), for an association to file a construction defect action. The bill has been assigned to the Senate Committee on Business, Labor, and Technology but not yet scheduled for hearing.
The major points of the bill include: 1) enforcement of a mediation or arbitration provision contained in the original governing documents of a common interest community, even if subsequently amended or removed; 2) the addition of a requirement that mediation take place before a construction defect action can be filed; 3) heightened requirements that an association board provide advanced notice to all unit owners, together with a disclosure of projected costs, duration, and financial impact of the construction defect claim; 4) the addition of a requirement that the board obtain the written consent of a majority of the owners of units, and; 5) a requirement that prior to the purchase and sale of a property in a common interest community, the purchaser receive notice that binding arbitration may be required for certain disputes.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
mcleroy@hhmrlaw.com
The “Unavailability Exception” is Unavailable to Policyholders, According to New York Court of Appeals
September 10, 2018 —
William S. Bennett & Warsame Y. Hassan - Saxe Doernberger & Vita, P.C.The New York Court of Appeals recently upheld a prior appellate division decision finding that policyholders facing environmental claims, spanning multiple years, cannot force their insurers partially on the risk to provide coverage for years where the insurers did not issue policies, even though pollution insurance was unavailable in the marketplace.
In Keyspan Gas E. Corp. v. Munich Reins. Am., Keyspan Gas East Corporation (“Keyspan”) argued other insurers should cover the period when pollution property insurance was unavailable in the marketplace, according to their pro-rata share of coverage. 31 N.Y.3d 51 (2018). In a unanimous decision, the Court emphasized the Appellate Division’s prior ruling that stated, “spreading risk should not by itself serve as a legal basis for providing free insurance to an insured.”
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
A Game of Texas Hold’em: How Texas Stopped Wage Increases for Salaried Exempt Employees Nationwide
December 03, 2024 —
Matthew DeVries - Best Practices Construction LawConstruction contractors often have to deal with classification of employees, particularly those who work in the home office. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses a recent court decision affecting the wage protection of employees under the the Fair Labor Standards Act (FLSA).
On November 15, 2024, a federal court in Texas vacated a U.S. Department of Labor (DOL) rule (the “2024 Rule”) that increased the minimum salary threshold for employees classified as exempt from overtime and minimum wage protections under the FLSA. The Texas court’s decision nullifies the 2024 Rule nationwide, effective immediately.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
COVID-19 Damages and Time Recovery: Contract Checklist and Analysis
April 27, 2020 —
Patrick J. Greene, Jr. - Peckar & AbramsonThis Alert explores the contract provisions and related rights that are likely to govern time and compensation adjustments for COVID-19 impacts. As parties begin analyzing such rights, this is intended to serve as a useful guide and checklist.
Analysis of relevant contract provisions should start with careful consideration of the specific impacts that have been experienced and the causes of those impacts. The nature of the impact (delay, extra work, disruption, etc.) and the causes of such impacts (owner direction, government order, etc.) will generally govern the analysis and resulting course of action. Listing or creating a matrix of impacts and their causes may be an effective working tool.
Essentially, there are five primary impacts that will likely require critical analysis under the relevant contract provisions, and notably, more than one impact may be present:
a) complete or partial suspension of work,
b) additional work or requirements,
c) added cost,
d) delay, and
e) disruption.
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Patrick J. Greene, Jr., Peckar & AbramsonMr. Greene may be contacted at
pgreene@pecklaw.com