California Supreme Court Holds Insured Entitled to Coverage Under CGL Policy for Negligent Hiring
June 13, 2018 —
Traub Lieberman Straus & Shrewsberry LLP - TLSS Insurance Law BlogIn its recent decision in Liberty Surplus Ins. Corp. v. Ledesma & Meyer Constr. Co.,2018 Cal. LEXIS 4063 (Cal. June 4, 2018), the Supreme Court of California addressed the question of whether an insured’s negligent hiring, retention and supervision of an employee who intentionally injured a third-party can be considered an occurrence under a general liability policy.
The insured, L&M, was the construction manager on a project at a middle school in California. It was alleged that one of its employees sexually abused a thirteen year old student during the course of the project. The student later brought a civil suit against L&M based on its negligent hiring, retention and supervision of the employee-perpetrator.
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Traub Lieberman Straus & Shrewsberry LLP
Lending Plunges to 17-Year Low as Rates Curtail Borrowing
April 15, 2014 —
Kathleen M. Howley, Zachary Tracer and Heather Perlberg – BloombergWells Fargo (WFC) & Co. and JPMorgan Chase & Co., the two largest U.S. mortgage lenders, reported a first-quarter plunge in loan volumes that’s part of an industry-wide drop off. Lenders made $226 billion of mortgages in the period, the smallest quarterly amount since 1997 and less than one-third of the 2006 average, according to the Mortgage Bankers Association in Washington.
Lending has been tumbling since mid-2013 when mortgage rates jumped about a percentage point after the Federal Reserve said it might taper stimulus spending. A surge in all-cash purchases to more than 40 percent has kept housing prices rising, squeezing more Americans out of the market. That will help push lending down further this year, according to the association.
Ms. Howley may be contacted at kmhowley@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net; Ms. Perlberg may be contacted at hperlberg@bloomberg.net
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Kathleen M. Howley, Zachary Tracer and Heather Perlberg, Bloomberg
Subcontractors on Washington Public Projects can now get their Retainage Money Sooner
July 26, 2017 —
Brett M. Hill - Ahlers & Cressman PLLCSubcontractors on public projects in Washington State will no longer be required to wait until final acceptance of the project to get their retainage money. A new statute, which goes into effect on July 23, 2017 and applies only to Washington public projects, will allow subcontractors to get their retainage sooner.
Under prior law, a subcontractor could only get its retainage prior to final acceptance if the general contractor provided a retainage bond to the public owner to secure a release of the general contractor’s retainage and the subcontractor then provided a similar retainage bond to the general contractor in the amount of its own retainage. If the general contractor decided to not provide a retainage bond to the owner, the subcontractor would be forced to wait until final acceptance of the project before it could get paid its retainage.
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Brett M. Hill, Ahlers & Cressman PLLCMr. Hill may be contacted at
bhill@ac-lawyers.com
MDL for Claims Against Manufacturers and Distributors of PFAS-Containing AFFFs Focuses Attention on Key Issues
July 05, 2021 —
Gregory S. Capps & Lynndon K. Groff - White and Williams LLPClaims against manufacturers and distributors of per- and polyfluoroalkyl substances (PFAS)-containing aqueous film-forming foam (AFFF) are hurtling forward. Two important developments in this opening salvo of PFAS-related claims against numerous defendants could have important ramifications not only on future PFAS litigation, but on insurance coverage for potential PFAS liabilities as well. First, ten bellwether cases are progressing closer to trial. Second, the key “government contractor defense” has been slated for briefing.
In December 2018, the Judicial Panel on Multi-District Litigation established a multi-district litigation (MDL 2873) for AFFF PFAS claims in the United States District Court for the District of South Carolina. Unlike previous PFAS lawsuits (primarily against DuPont and/or 3M), the lawsuits in MDL 2873 target dozens of defendants who manufactured and distributed AFFF and its constituent chemicals. MDL 2873 now houses approximately 1,200 member cases, which include the following categories of claims: (i) claims for property damage asserted by water providers, (ii) claims for property damage asserted by property owners, (iii) bodily injury claims, and (iv) claims for medical monitoring for potential future injury.
Reprinted courtesy of
Gregory S. Capps, White and Williams LLP and
Lynndon K. Groff, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Mr. Groff may be contacted at groffl@whiteandwilliams.com
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Private Statutory Cause of Action Under Florida’s Underground Facility Damage Prevention and Safety Act
July 11, 2021 —
David Adelstein - Florida Construction Legal UpdatesFlorida’s Underground Facility Damage Prevention and Safety Act is set forth in Florida Statutes Chapter 556. Any owner or operator of underground infrastructure as well as contractors that perform underground excavation and demolition operations are familiar (or, need to be familiar) with this Act and the requirements it imposes on them.
In a nutshell, this Act requires excavators to notify operators of underground facilities (e.g., pipelines, cables, sewers) through a notification system before excavating or demolishing an underground location. Then notification system gives the operator of the underground facility two days’ advance notice that an excavation will be taking place. After receiving this notice, the operator of the underground facility must mark the area where its infrastructure is located which could be affected by the underground excavation or demolition operations. The Act further imposes duties on excavators to use increased caution, supervise mechanized equipment, perform excavation and demolition operations in a careful an prudent manner, and to re-notify the notification system if the operator’s marking is no longer visible so the location of the operator’s underground facility can be re-marked.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Damages to Property That is Not the Insured's Work Product Are Covered
October 27, 2016 —
Tred R. Eyerly – Insurance Law HawaiiReversing the district court, the Eighth Circuit predicted that under Iowa law, damage to property other than the insured's work product was covered. Decker Plastics Inc. v. West Bend Mut. Ins. Co., 2016 U.S. App. LEXIS 15235 (8th Cir. Aug. 19, 2016).
A 1's, Inc. packaged and sold landscaping materials. Decker Plastics Corporation sold plastic bags to A 1's. The plastic bags were filled with sand and rock, and stored outdoors for sale to customers. Because Decker failed to manufacture the bags with an ultraviolet inhibitor, the bags deteriorated in the sunlight. This caused small shreds of plastic to commingle with A 1's landscaping materials. The plastic was a contaminant that could not be inexpensively separated form A 1's products. A 1's had to clean spilled materials from customer sites, purchase replacement bags from another supplier, and pay to clean up its own property.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Springs may be Next Colorado City to Add Construction Defects Ordinance
October 28, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Gazette reported that Colorado Springs city councilwoman Jill Gaebler stated that “she would bring a proposal to the council next month that would address the construction defects issue.”
Gaebler told The Gazette: “We have gone back and forth with how best to address this issue. It is a statewide concern, so how do we bring forward something that is meaningful to our community without stepping on the toes of our legislators?”
The state of Colorado has tried and failed to pass construction defects legislation three years in a row, according to The Gazette. If Colorado Springs adopts an ordinance, it will become the ninth city to pass construction defects laws.
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Legal Risks of Green Building
March 22, 2021 —
Mark D. Shifton - Construction ExecutiveAll construction projects involve elements of legal risk. Insurance and indemnity claims, delay claims and professional negligence claims are simply accepted risks when involved in construction. Green building projects are no exception to this rule, and often involve unique issues that are not present in typical construction projects.
Green building projects commonly employ new or untested construction materials, require construction methods that lack significant track records, and ultimate building performance often fails to meet design expectations. As such, green building projects may give rise to entirely new types of legal risk that should be considered and allocated early in the process.
In the past 15 years, the number of buildings for which green certifications have been sought has grown exponentially, and the growth rate of green building and sustainable construction has far outpaced the growth rate of the construction industry as a whole. As green building projects become increasingly common (and often increasingly required by the federal, as well as state and local governments), the unique legal risks presented by green building projects take on an increase importance.
Reprinted courtesy of
Mark D. Shifton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Shifton may be contacted at
mshifton@gllawgroup.com