Is Your Business Insured for the Coronavirus?
March 16, 2020 —
J. Kelby Van Patten & Jared De Jong - Payne & FearsHow bad will the pandemic get? How much will it spread in the United States? Will we develop a vaccine in time to do any good?
As insurance lawyers, we have no idea. But we can help you figure out whether your business is insured for the coronavirus risks that keep business owners up at night.
Risk 1: An outbreak forces my business to close until the outbreak ends. Are my financial business losses covered?
Maybe. Many commercial property policies provide “business interruption coverage” which may apply.
This coverage typically requires that:
(i) Your business is shut down. If your business actually closes for a period of time, you may meet this requirement. However, you wouldn’t meet it if your business slows because half of your staff is home sick.
(ii) The shutdown is necessary. “Necessary” means something different than “desirable” or “prudent.” Whether a shutdown is necessary depends on the facts. If it is physically or legally impossible to enter your building, then closure is necessary. But if the government issues a public advisory recommending that businesses close, and you voluntarily comply, that’s a different story.
(iii) The shutdown is caused by physical damage to your property. Is a viral outbreak “damage” to your property? There’s not a clear answer. On the one hand, courts have found that hazardous contamination of a building constitutes property damage to the building. For example, asbestos incorporated into a building constitutes property damage to the building under a commercial general liability policy. Environmental contamination can also constitute property damage to the contaminated property. Policyholders whose businesses close during an outbreak will argue that property contaminated by the virus satisfies the “physical damage to property” requirement. On the other hand, insurers may argue that the real cause of the shutdown is not the contaminated building surfaces, but the need for social distancing in a neighborhood with many contagious people. Coverage will depend on the policy language and the details of the shutdown.
Reprinted courtesy of
J. Kelby Van Patten, Payne & Fears and
Jared De Jong, Payne & Fears
Mr. Van may be contacted at kvp@paynefears.com
Mr. Jong may be contacted at jdj@paynefears.com
Read the court decisionRead the full story...Reprinted courtesy of
District Court Allows DBE False Claims Act Case to Proceed
February 23, 2017 —
Wally Zimolong – Supplemental ConditionsLast week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding.
The Case
The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Wreckage Removal Underway at Site of Collapsed Key Bridge in Baltimore, But Weather Slows Progress
April 15, 2024 —
Jim Parsons - Engineering News-RecordNote: The text of this article was updated 4/3/24 to reflect new information.
Weather and water conditions are hampering the piece-by-piece process of cutting and removing wreckage from the collapsed Francis Scott Key Bridge in Baltimore, while officials consider potentially utilizing progressive design-build for a replacement bridge. Officials remain uncertain as to how long the meticulous effort to clear the key shipping channel will take.
Reprinted courtesy of
Jim Parsons, Engineering News-Record
ENR may be contacted at enr@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Congratulations to Woodland Hills Partner Patrick Au and Senior Associate Ava Vahdat on Their Successful Motion for Summary Judgment!
February 14, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Woodland Hills Partner Patrick Au and Senior Associate Ava Vahdat on their successful Motion for Summary Judgment in Los Angeles Superior Court!
BWB&O’s client was a concrete contractor hired by a government entity for a limited sidewalk repair project many years ago. The Plaintiff, who was confined to a wheelchair, filed suit against BWB&O’s client alleging Negligence and Premises Liability after an alleged fall injury on a public sidewalk. Plaintiff’s primary alleged theory of liability against BWB&O’s client was that it either worked on or was supposed to work on that subject sidewalk and in doing so, or failure to do so, caused Plaintiff’s fall and subsequent alleged injuries/damages. Plaintiff claimed in excess of $1 million in damages.
After extensive discovery, Mr. Au and Ms. Vahdat gathered enough evidence to prove that BWB&O’s client neither worked on the subject area nor was required to do so. Accordingly, they prepared a successful Motion for Summary Judgment on the basis that no duty was owed to Plaintiff thereby refuting the negligence cause of action. The dispositive motion also proved that the subject sidewalk was not owned, controlled, or maintained by BWB&O’s client thereby negating the premises liability cause of action.
Read the court decisionRead the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
America’s Infrastructure Gets a C-. It’s an Improvement Though
April 05, 2021 —
Garret Murai - California Construction Law BlogEvery four years the American Society of Civil Engineers (ASCE) issues a report card assigning a letter grade to the nation’s infrastructure. ASCE issued their 2021 Infrastructure Report Card earlier this month.
Our country’s grade in 2021? A disappointing C-.
It’s an improvement though. When ASCE issued their 2017 Infrastructure Report Card we didn’t even pass the class with a grade of D+.
In short, there’s room for improvement. A lot of room for improvement.
C- is just the cumulative grade however. ASCE’s Report Card is divided into industry segments with grades assigned to each segment. Individual grades for some, but not all, of the segments include the following:
- Aviation: The nation’s airports received a grade of D+. According to the Report Card, terminal, gate and ramp availability are not meeting the needs of a growing passenger base which has increased from 964.7 million to 1.2 billion per year and a has a 10-year shortfall of $111 billion.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Architect Searches for Lost Identity in a City Ravaged by War
March 14, 2022 —
Donna Abu-Nasr & Mohamed Sheikh Nor - BloombergOmar Degan got used to being ridiculed when he sat down with developers. The architect wanted buildings to incorporate green spaces, use less glass but have bigger windows to allow in more air. They wanted to maximize profit.
Such a clash of visions between designer and constructor could, of course, happen anywhere. But the gulf between them was particularly wide in a place where people have been more focused on survival than sustainability.
Degan, 31, wants to transform the Somali capital of Mogadishu, a lofty ambition in a city that’s been defined by violence, piracy and terrorism over the past three decades. His persistence, though, has led to prominence by championing cultural heritage and buildings that are in tune with the environment during the frenzy of reconstruction in recent years.
Reprinted courtesy of
Donna Abu-Nasr, Bloomberg and
Mohamed Sheikh Nor, Bloomberg Read the court decisionRead the full story...Reprinted courtesy of
Is Privity of Contract with the Owner a Requirement of a Valid Mechanic’s Lien? Not for GC’s
January 04, 2021 —
Christopher G. Hill - Construction Law MusingsAs any reader of this construction law blog knows, mechanic’s liens make up much of the discussion here at Construction Law Musings. A recent case out of Fairfax County, Virginia examined the question of whether contractual privity between the general contractor and owner of the property at issue is necessary. As a reminder, in most situations, for a contract claim to be made, the claimant has to have a direct contract (privity) with the entity it sues. Further, for a subcontractor to have a valid mechanic’s lien it would have to have privity with the general contractor or with the Owner.
The Fairfax case, The Barber of Seville, Inc. v. Bironco, Inc., examined the question of whether contractual privity is necessary between the general contractor and the Owner. In Bironco, the claimant, Bironco, performed certain improvements for a barbershop pursuant to a contract executed by the two owners of the Plaintiff. We wouldn’t have the case here at Musings if Bironco had been paid in full. Bironco then recorded a lien against the leasehold interest of The Barber of Seville, Inc., the entity holding the lease. The Plaintiff filed an action seeking to have the lien declared invalid because Brionco had privity of contract with the individuals that executed the contract, but not directly with the corporate entity.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Jury Awards Aluminum Company 35 Million in Time Element Losses
September 23, 2019 —
Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogOn July 3, 2019, a Delaware jury determined that fourteen property insurers for Noranda Aluminum Holding Corp., an aluminum producer that filed for bankruptcy and ceased operations three years ago, owe Noranda over $35 million in time element losses that Noranda sustained as a result of two separate catastrophic incidents that occurred at its aluminum facility in 2015 and 2016.
In August 2015, an aluminum explosion occurred at Noranda’s facility, resulting in substantial property damage and bodily injuries. Though the insurers paid for Noranda’s property damage claim, the insurers only covered $5.64 million of Noranda’s $22 million time element claim. In January 2016, the same facility sustained significant damage as a result of equipment failure. The insurers again paid for Noranda’s property damage claim arising from the equipment failure but declined to pay any of its $22.8 million time element claim.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews & Kurth and
Daniel Hentschel, Hunton Andrews & Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of