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DIRECTORY AND CAPABILITIES

State Farm Unsuccessful In Seeking Dismissal of Qui Tam Case

January 26, 2017 — Tred R. Eyerly – Insurance Law Hawaii
In an insurance related case, the United States Supreme Court affirmed the Fifth Circuit's decision that State Farm was not entitled to a dismissal of a qui tam case involving its claims-handling after Hurricane Katrina. State Farm Fire & Cas. Co. v. United States ex rel. Rigsby, ___ U.S. ___, 137 S. Ct. 436 (2016). Before Katrina, State Farm issued two types of policies to homeowners: (1) Federal Government-back flood policies and (2) its own general homeowner policies. After Hurricane Katrina, State Farm's policies were responsible for wind damage, and the government policies were responsible for flood damage. Therefore, it was in State Farm's interest to classify hurricane damage as flood-related. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Connecticut District Court to Review Proposed Class Action in Defective Concrete Suit

July 13, 2017 — Tiffany Casanova - Saxe Doernberger & Vita, P.C.
Thousands of Connecticut homeowners have fallen victim to a defective concrete epidemic. Over the last thirty years, the foundation in many homes, particularly in the Northeast region of the state, was built with a concrete aggregate that contained the mineral pyrrhotite. When exposed to the elements, including water and air, pyrrhotite oxidizes, resulting in cracking and disintegration over time. For Connecticut homeowners, this has resulted in disaster, both financially and to the foundations of their homes. Previously, many homeowners insurance policies provided coverage for a “collapse” caused by the “use of defective material . . . in construction, remodeling or renovation.” As the pyrrhotite epidemic became more prevalent, insurers altered the coverage afforded for a “collapse” in several ways that potentially minimized or eliminated coverage for these types of claims. Primarily, coverage for a “collapse” is now restricted to collapses that are “abrupt,” and coverage is excluded for buildings in danger of falling down or those that are still standing, even if evidence of cracking or settling is demonstrated. The insurers did not notify homeowners of the change. Thus, homeowners who renewed policies were not informed of a coverage reduction nor were they provided with a corresponding reduction in the amount of premium. Read the court decision
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Reprinted courtesy of Tiffany Casanova, Saxe Doernberger & Vita, P.C.
Ms. Casanova may be contacted at tlc@sdvlaw.com

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Real Estate & Construction News Roundup (1/10/24) – New Type of Nuclear Reactor, Big Money Surrounding Sports Stadiums, and Positivity from Fannie Mae’s Monthly Consumer Survey

February 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, the commercial real estate market poses a risk to financial stability, New York City moves towards net-zero building emissions, workers at several Los Angeles area hotels tentatively agree to a new contract, and more!

• For the first time since Fannie Mae’s monthly consumer survey was launched in 2010, more homeowners overall believe rates will go down rather than up. (Diana Olick, CNBC)
• According to U.S. regulators, the commercial real estate market is potentially a leading risk to financial stability in 2024, noting rising vacancy rates, declining values of office properties, high interest rates and the possibility of an economic slowdown. (Jim Tyson, CFO Dive)
• New York City will soon begin penalizing owners of buildings that emit too much greenhouse gas — a move toward requiring net-zero building emissions by 2050. (Jennifer Kingson, Axios)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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SFAA Commends U.S. House for Passage of Historic Bipartisan Infrastructure Bill

November 15, 2021 — The Surety & Fidelity Association of America
November 8, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, commends the U.S. House for passing the historic, bipartisan Infrastructure Investment and Jobs Act (IIJA). The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband. “Both sides of the aisle understand the importance of investing in our country’s aging infrastructure. The passage of this historic bill provides the most significant resources in more than 50 years to address the current and future needs of our country’s infrastructure, while creating millions of jobs and growing our national and local economies,” said SFAA president and CEO, Lee Covington. SFAA also commends President Joe Biden, House Speaker Nancy Pelosi (D-Calif.), House Majority Leader Steny Hoyer (D-Md.), Senate Majority Leader Chuck Schumer (D-N.Y.), Senate Minority Leader Mitch McConnell (R-Ky.), Sen. Tom Carper (D-Del.), Sen. Shelley Moore Capito (R-W.Va.), Sen. Kyrsten Sinema (D-Ariz.), Sen. Rob Portman (R-Ohio), and Rep. Peter DeFazio (D-Ore.) for their leadership on this bill, and members of the House who voted in favor. The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 member companies write 98 percent of surety and fidelity bonds in the U.S. For more information visit www.surety.org. Read the court decision
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Reprinted courtesy of

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Bert Hummel Appointed to Chief Justice’s Commission on Professionalism

May 10, 2021 — Bert Hummel - Lewis Brisbois
Atlanta Partner Bert Hummel was recently appointed to the Chief Justice’s Commission on Professionalism (CJCP) for the 2020-2021 term. In this role, Mr. Hummel has assisted in carrying out the charge of the CJCP, namely, to enhance professionalism among Georgia’s lawyers. Mr. Hummel’s appointment follows his participation on the Grants Committee and the Professionalism Committee of the CJCP. In addition, Mr. Hummel was selected as one of seven members of CJCP’s Benham Awards Subcommittee, which recognizes Georgia attorneys who dedicate their practice or time to serving the public and profession. “I am honored to be appointed to a body that continually strives to do so much good for both the legal profession and the community at large. For the past several months, I have appreciated the work the Commission has undertaken to promote professionalism in the practice of law through educational programming while also promoting community service programs through the CJCP’s Grants Committee that I served on as well. I look forward to continuing to serve with my colleagues at the CJCP to promote our shared goals. I also relish the opportunity to serve during a time in which professionalism is of the utmost importance as we navigate through the COVID-19 pandemic made even more unique and special by the fact this is the last year Chief Justice Melton will serve as chair after announcing his retirement from the Supreme Court effective at the end of the Bar year.” Read the court decision
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Reprinted courtesy of Bert Hummel, Lewis Brisbois
Mr. Hummel may be contacted at Bert.Hummel@lewisbrisbois.com

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Rhode Island District Court Dismisses Plaintiff’s Case for Spoliation Due to Potential Unfair Prejudice to Defendant

September 04, 2018 — Lian Skaf - The Subrogation Strategist
In Amica Mutual Ins. Co. v. BrassCraft Mfg., Co., 2018 U.S. Dist. LEXIS 88986 (D.R.I. May 29, 2018), the United States District Court for the District of Rhode Island addressed the question of whether the defendant was so unfairly prejudiced by the subrogating insurer’s spoliation of evidence that dismissal of the plaintiff’s case was the appropriate Rule 37(b)(2)(a)(i)-(vi) sanction. The court, focusing on the potential for undue prejudice to the defendant, granted the defendant’s motion to dismiss. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams, LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

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Court Agrees to Stay Coverage Matter While Underlying State Action is Pending

October 29, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court granted the insured's motion to stay the coverage action while the construction defect case was pending in state court. Auto Owners Ins. Co. v. Essex Homes Southeast, Inc., 2014 U.S. Dist. LEXIS 133120 (D. S.C., Sept. 23, 2014). The homeowners sued Essex Homes in state court for construction defects in a home built and sold to them by Essex Homes. The suit sought damages for property damage based on negligence, breach of implied warranty, and breach of express warranties arising out of the alleged construction defects. The complaint alleged that a water leak in the house caused water damage and resulted in mold growth that was not discovered for several years. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Solicitor General’s Views to Supreme Court on Two Circuit Court Rulings that Groundwater Can be Considered “Waters of the United States”

March 04, 2019 — Anthony B. Cavender - Gravel2Gavel
On December 3, 2018, the U.S. Supreme Court invited the Solicitor’s views on the contested issues whether discharges to groundwater are subject to an he National Pollutant Discharge Elimination System (NPDES) permit, and whether there is an “ongoing violation” of the Clean Water Act for Citizen Suit jurisdiction when the source of the pipeline spill has been fixed, yet not all pollutants have been cleaned up. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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