That’s not the way we’ve always done it! (Why you should update your office practices)
April 15, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaAnyone recognize the photo to the left [Photo of Pay Phone]? If you are of the Millennial generation, this is a quaint thing called a public pay phone. They used to be everywhere. Imagine, not having a cell phone to keep you in constant contact with Big Brother…………. [the good old days].
As you may be able to tell from the fact that the receiver is hanging down, this phone has seen better days.
What does this have to do with construction? Everything. Just because something is done one way– even for years, or decades– doesn’t mean it should stay that way. Just as you learn new technical skills and change your designs, you should also update and modernize your office practices.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Court of Appeal Holds Only “Named Insureds” May Sue for Bad Faith Under California FAIR Plan Policy
May 10, 2021 —
Valerie A. Moore & Kathleen E.M. Moriarty - Haight Brown & Bonesteel LLPIn Wexler v. California Fair Plan Association (No. 303100, filed 4/14/21), Brooke Wexler’s parents insured their residence, which was located in a mountainous high-fire risk area, with a California FAIR Plan Association owner-occupied dwelling policy. The policy only listed Wexler’s parents and did not name Wexler, their adult child, under the policy’s “Insured Name” section. The FAIR Plan expressly disclaimed coverage for “unnamed people,” referred to by the court as the “no-coverage-for-unnamed-persons clause.”
FAIR Plan was created by the Legislature in 1968 and is a joint reinsurance association created to give homeowners in high risk areas access to basic property insurance and is a self-described “insurer of last resort.”
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Kathleen E.M. Moriarty, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com
Ms. Moriarty may be contacted at kemoriarty@hbblaw.com
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‘I’m a Scapegoat,’ Says Former CEO of Dubai Construction Firm
September 30, 2019 —
Layan Odeh & Zainab Fattah - BloombergThe former chief executive officer of Drake & Scull International PJSC said the company’s accusations of financial violations against him are an attempt to find a “scapegoat” for rising losses.
Khaldoun Tabari said the Dubai-based contractor has filed 15 complaints against him to the public prosecutor last year. He said the allegations prompted authorities in the United Arab Emirates to order banks to freeze his bank accounts in June 2018. He denies any wrongdoing.
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Layan Odeh & Zainab Fattah, Bloomberg
Barratt Said to Suspend Staff as Contract Probe Continues
January 26, 2017 —
Jack Sidders - BloombergBarratt Developments Plc suspended at least three more employees within its London business as part of an ongoing probe into potential misconduct in the awarding of contracts, according to two people familiar with the decision.
The people asked not to be named because a police investigation is ongoing. The suspensions follow that of London regional managing director Alastair Baird, who was arrested in October. He was released on bail until April, along with a 47-year-old woman, according to a Metropolitan Police spokesman, who was unable to immediately respond to a request for comment.
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Jack Sidders, BloombergMr. Sidders may be followed on Twitter @JackSidders
Acord Certificates of Liability Insurance: What They Don’t Tell You Can Hurt You
June 28, 2013 —
David McLainAs anyone involved in construction knows, one of the most heavily used forms for tracking insurance information during the subcontracting phase of a project is the Acord Certificate of Liability Insurance. General contractors often require subcontractors to provide these ubiquitous forms as evidence that the subcontractor maintains adequate insurance or insurance which complies with the requirements of the subcontract. Unfortunately, experience has shown that the Acord forms being used today are insufficient sources of the information needed by the developer and general contractor.
Historically, developers and GCs would require Acord forms to ensure that a subcontractor had a CGL insurance policy, with sufficient limits, and which named them as additional insureds. More recently, developers and GCs took the additional step of requiring a confirmation on the Acord forms that they were named as additional insureds for both ongoing and completed operations. This is important because coverage for ongoing operations only provides coverage during the construction process. Once the homes are put to their intended use, developers and GCs must be named as additional insureds for completed operations also in order to avail themselves of the benefits of the policy. Unfortunately, this is where the evolution of the use of the Acord forms ended, resulting in a failure to provide sufficient information to protect developers and GCs from the unknown.
My firm has had a rash of recent experience where our clients have not obtained the benefit of additional insured coverage for which they bargained because they relied on Acord forms which failed to provide sufficient information to allow them to protect themselves from insufficient insurance coverage on the part of the subcontractors with which they did business. For example, in one recent case a homeowners association alleged insufficient grading and drainage away from the homes within a development built by one of our clients. In reviewing the insurance information from the construction files, we found the Acord forms from the excavating company that performed all of the grading work around the homes. To our delight, the Acord form listed our client as an additional insured for both ongoing and completed operations.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Unpaid Hurricane Maria Insurance Claims, New Laws in Puerto Rico, and the Lesson for all Policyholders
January 09, 2019 —
Walter J. Andrews & Cary D. Steklof - Hunton Andrews KurthPuerto Rico’s dire insurance situation more than a year after Hurricane Maria remains a constant reminder of why policyholders must diligently pursue their property and business interruption claims in the immediate aftermath of a storm. The numbers are staggering. On an island the approximate size of Connecticut, Hurricane Maria caused an estimated $100 billion in damage. According to the Office of the Insurance Commissioner of Puerto Rico, the hurricane resulted in more than 287,000 insurance claims. Roughly 11,000 of those claims, representing an estimated $2 billion in losses, remain unresolved.
Reprinted courtesy of
Walter J. Andrews , Hunton Andrews Kurth and
Cary D. Steklof , Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Steklof may be contacted at csteklof@HuntonAK.com
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NJ Supreme Court Declines to Review Decision that Exxon Has No Duty to Indemnify Insurers for Environmental Liability Under Prior Settlement Agreement
November 29, 2021 —
Patricia B. Santelle & Laura Rossi - White and WilliamsOn November 1, 2021, in a single-sentence Order, the Supreme Court of New Jersey denied a request for review of a decision that ExxonMobil Corporation (Exxon) did not have to indemnify certain of its insurers over environmental liabilities as required by a previous settlement agreement. The case, entitled Home Insurance Company v. Cornell-Dubilier Electronics Incorporated, et al., has a unique and convoluted procedural history but, in short, the denial of review leaves standing a holding by the intermediate appellate court that the insurers’ “untimely notice actually prejudiced Exxon, violated the no-prejudice rule, and breached the covenant of good faith and fair dealing.” The court declined to consider the question framed by the insurers: whether the importance of enforcing settlement agreements outweighs New Jersey’s entire controversy doctrine.
The matter dated back almost thirty years, when the New Jersey Department of Environmental Protection notified the Appearing London Market Insurers (ALMI) of the potential liability of Cornell-Dublier Electronics (CDE), a former indirect subsidiary of Exxon, for pollution at a site in New Jersey. Coverage litigation followed in New Jersey, which ALMI defended under policies issued to CDE. Exxon was not named in the CDE suit nor were the policies which ALMI issued to Exxon at issue in that case; Exxon instead had its own pollution coverage case pending in New York. In June 2000, Exxon and its insurers, including ALMI, entered into a settlement agreement which (a) required Exxon to indemnify the insurers for any environmental liability claims involving its subsidiaries, and (b) provided for application of New York substantive law and litigation in New York City court for any dispute between the parties under it.
Reprinted courtesy of
Patricia B. Santelle, White and Williams and
Laura Rossi, White and Williams
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
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New York State Legislature Passes Legislation Expanding Wrongful Death Litigation
July 18, 2022 —
Lisa M. Rolle & Justyn Verzillo - Traub LiebermanIn early June, New York State Legislature passed legislation, often referred to as “The Grieving Families Act” (A.6770/S.74-A), which expands New York’s Wrongful Death Statute. This legislation is pending approval from Governor Kathy Hochul and has the ability to drastically impact wrongful death litigation by expanding how parties can bring an action, as well as expanding on recoverable compensation.
Pursuant to the existing statute (EPTL §5-4.1), the statute of limitations requires commencement of an action within two years after the decedent’s death. The proposed Grieving Families Act expands the statute of limitations for a wrongful death action to three years and six months after the decedent’s death.
Further, under the existing statute (EPTL §11-3.3), recovery in a wrongful death action is restricted to distributees (the intended beneficiaries under the will). The proposed legislation expands the parties permitted to bring a wrongful death action, replacing the term distributees with surviving close family members. These may include, but are not limited to, spouse or domestic partner, issue, parents, grandparents, step-parents, and siblings, leaving it to the finder of fact to determine which persons are close family members of the decedent based upon the specific circumstances relating to the person’s relationship with decedent. It remains to be seen what the burden of proof will be for the surviving close family members, as well as what process will be instituted with respect to the finder of fact. Presumably, the finder of fact will be a Judge.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman and
Justyn Verzillo, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Verzillo may be contacted at jverzillo@tlsslaw.com
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