Additional Dismissals of COVID Business Interruption, Civil Authority Claims
December 29, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAmong the recent decisions dismissing complaints for business interruption and civil authority coverage due to closures caused by COVID-19 are Pappy's Barber Shops, Inc. v. Farmers Group, Inc., 2020 U.S. Dist. LEXIS 166808 (S.D. Calif. Sept. 11, 2020) and Sandy Point Dental v. Cincinnati Insurance Co., 2020 U.S. Dist. LEXIS 171979 (E.D. Ill. Sept. 21, 2020). The difficulty in proving "direct physical loss" was the downfall of both cases.
In Pappy's, claims were made for business income losses insured as a result of local and state closure orders. The policy required "direct physical loss of or damage to property at the described premises." Plaintiffs argued that "direct physical loss of" did not require a tangible damage or alteration to property and that the loss of the ability to continue operating their businesses as a result of the government orders met this requirement.
The court relied upon a prior decision, 10E, LLC v. Travelers Indem. Co. of Connecticut, 2020 U.S. Dist. LEXIS 165252 (C.D. Calif. Sept. 2, 2020) [post here], where the court noted that under California law, losses from inability to use property did not amount to "direct physical loss" within the meaning of the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
North Carolina Learns More Lessons From Latest Storm
October 16, 2018 —
Pam Radtke Russell - Engineering News-RecordThere’s no big wall planned to protect North Carolina’s coast from storm surge. There’s no massive tunnel system proposed to keep floodwaters away from populated areas. There are no grant-funded resilience competitions to help the state plan to manage water more effectively.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com
Trends in Project Delivery Methods in Construction
April 03, 2023 —
Sarah B. Biser - ConsensusDocsThe three key measures of a construction project’s success are cost, quality, and time (delays). The project delivery method that the owner of the project selects can affect each of these metrics. Project delivery methods in complex construction projects evolve as technology and processes improve. The traditional methods of design-bid-build (DBB), design-build (DB), and construction management (CM) have been the standard for many years. More recently, however, newer methods such as integrated project delivery (IPD), and public-private partnerships (PPP) have gained traction.
Design – Bid – Build (DBB)
Design-bid-build is the oldest, most commonly used method of project delivery. It involves three distinct phases: design, bid/award, and construction. An owner asks a team of professionals, such as architects, engineers, and contractors, to produce design documents that will be used to solicit bids. After the owner evaluates the bids and chooses a contractor, a construction contract is written. While this method is the most familiar and well-understood, it can lead to disputes during the construction process as changes are made to the original plans.
In DBB, the owner bears the risk for funding increased costs attributed to design changes and related delays – thanks to the Spearin Doctrine, which holds that the owner impliedly warrants the information, plans, and specifications that it provides to a general contractor. See 248 U.S. 132 (1918) Although the owner cannot claim against the contractor, it can make a claim against the design firm.
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Sarah B. Biser, Fox Rothschild LLP (ConsensusDocs)Ms. Biser may be contacted at
sbiser@foxrothschild.com
Account for the Imposition of Material Tariffs in your Construction Contract
March 28, 2018 —
David Adelstein – Florida Construction Legal UpdatesAfter Hurricane Irma, I wrote an article that contractors should revisit the
force majeure provisions in their construction contracts. Not later. But Now.
The force majeure provision is an important provision in a construction contract to account for certain uncertainties that you have NO control over.
Recently, another reason has given rise to contractors needing to revisit their force majeure provisions, as well as any provisions dealing with material escalations. Not later. But now. The
imposition of raw steel and aluminum tariffs (tax on imported goods) and the back-and-forth regarding a potential trade war leads to the kind of uncertainty that should be assessed as a risk.
A risk in both time and cost from material escalations.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
DIR Reminds Public Works Contractors to Renew Registrations Before January 1, 2016 to Avoid Hefty Penalty
December 17, 2015 —
Garret Murai – California Construction Law BlogI know.
You’re busy.
Perhaps even a bit overwhelmed.
You’ve got trees to trim, halls to deck with boughs of holly, and when you throw in (the office, your kids’ school, and the bowling league’s) holiday parties, you’re at the point where you’ve got visions of sugar plums (although it may vary) dancing through your head.
Well, the DIR has come to give you its own yuletide greeting.
Think of it as a Christmas card of sorts.
Merry Christmas.
The Department of Industrial Relations (DIR) announced today that a mandatory renewal deadline is approaching for contractors who bid or work on public works projects in California. Contractors whose public works contractor registration expired June 30, 2015, and have ongoing public works projects or plan to bid on new ones, must pay the $300 renewal fee before January 1, 2016 or face an additional
$2,000 late penalty after that date.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Missouri Asbestos Litigation Reform: New Bill Seeks to Establish Robust Disclosure Obligations
March 15, 2021 —
Jennifer B. Pigeon - Lewis BrisboisMissouri State Senator Eric Burlison is reviving attempts to reform asbestos litigation in the State of Missouri through the introduction of SB 331. This bill was pre-filed on December 29, 2020 and first read on January 6, 2021. The bill establishes disclosure procedures for claimants in asbestos-related lawsuits. Specifically, the bill, if passed, would require claimants in civil asbestos-related lawsuits to file a sworn information form within 30 days of filing an asbestos-related lawsuit.
The required disclosures under SB 331 include, but are not limited to (1) each asbestos-containing product to which the exposed person was exposed and each physical location at which the exposure occurred; (2) the identity of the manufacturer or distributor of specific asbestos-containing products for each named exposure; (3) the specific location and manner of each exposure; (4) the beginning and end dates of each exposure, the frequency and length of each exposure, and the proximity of the asbestos-containing product or its use to the exposed person; and (5) a certification that any claim that can be made with a bankruptcy trust concerning any asbestos injury to the exposed person has been filed.
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Jennifer B. Pigeon, Lewis BrisboisMs. Pigeon may be contacted at
Jenna.Pigeon@lewisbrisbois.com
Ontario Court of Appeal Clarifies the Meaning of "Living in the Same Household" for Purposes of Coverage Under a Homeowners Policy
April 10, 2019 —
Stella Szantova Giordano - Saxe Doernberger & Vita, P.C.As all insurance coverage attorneys know, how courts interpret certain words and phrases in insurance policies is significant since one word can make the difference between a claim being covered or not. On January 28, 2019, the Court of Appeal for Ontario, in the Ferro v. Weiner1 decision, clarified the jurisprudence on the meaning of “living in the same household” in the context of homeowners policies.
Background Facts
Ms. Enid Weiner owned a lakeside home which was insured under a homeowners policy through Intact Insurance Company (the “Intact Policy”). The Policy listed only Enid Weiner as the Named Insured, but provided coverage to her relatives “while living in the same household” for liability for unintentional bodily injury arising from an insured’s “personal actions anywhere in the world.” Although the lake house was used as a vacation home when Ms. Weiner’s children were small, it was her primary residence for about ten years before she moved into a nursing home. While she never permanently moved back, her three grown children and their families used the house as a cottage, with Enid occasionally accompanying them.
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Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.Ms. Giordano may be contacted at
ssg@sdvlaw.com
Nevada Senate Minority Leader Gets Construction Defect Bill to Committee
April 03, 2013 —
CDJ STAFFThe Las Vegas Sun reports that Michael Roberson, the lead Republican in the Nevada Senate, managed to get his construction defect reform bill scheduled for a hearing. Previously, the Senate Democrats had determined that all bills pertaining to construction defect legislation would be heard by the Senate Judiciary Committee. However, Roberson managed to convince Kelvin Atkinson, the chair of the Senate Commerce and Labor Committee, to add his bill to the text a mortgage lending measure under consideration by that committee.
Roberson had previously submitted his bill to the Judiciary Committee. Senator Tick Segerblom has not scheduled the bill for a hearing and is reported to be an opponent of the bill. While Roberson characterizes the bill as making things better for homebuilders, Segerblom sees it as making things worse for homeowners. “That’s not going to happen,” Seberblom told the Las Vegas Sun.
Although the senate voted to send the bill to the Commerce and Labor committee, it still may not get a hearing. Segerblom said he did not know if the bill would be heard in his committee. “We’ve got 60 or more bills to hear and if there’s nothing new in there to change the world, I don’t know why we would hear it.” Atkinson said he has “no appetite to hear the bill.”
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