Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable
November 30, 2016 —
Masaki James Yamada – Ahlers & Cressman PLLCWhen the indemnity provision of a contract conflicts with ORS 30.140, it is voided to the extent that it conflicts with the statute, but no more. Such provisions can remain partially valid and enforceable.[i] In Montara Owner Assn., the owner brought claims against the contractor for construction defects and damage relating to the construction of 35 townhouses. Contractor then brought third-party claims against more than 20 subcontractors for breach of contract and indemnity. Before trial, contractor settled with all but one subcontractor. The subcontract contained an indemnity provision requiring subcontractor to indemnify contractor for losses arising out of subcontractor’s work, including losses caused in part by contractor’s own negligence.
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Masaki James Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
Don MacGregor To Speak at 2011 West Coast Casualty Construction Defect Seminar
January 01, 2011 —
CDJ STAFF“Challenges for Experts in Construction Defect Claims and Litigation” will be held Thursday May 13, 2011 between 1:30 and 3:00 PM at this year’s West Coast Casualty Construction Defect Seminar. Among the various topics covered will be of Right to Repair/Opportunity to Repair statutes, improper testing methodologies, new challenges where a case involves a Wrap Policy, OCIPS, CCIPS, and other owner controlled insurance programs, as well as the need for realistic testing protocols for the party the expert is retained to represent.
During the presentation Mr. MacGregor will be working in connection with a group of construction and design experts each of which have extensive experience with construction defect and claims related litigation. This particular session is expected to attract a standing-room only crowd, drawing in excess of 1700 attendees.
The West Coast Casualty Construction Defect Seminar is the largest seminar of its type. This year’s event is scheduled for will take place on May 12 and 13, 2011, at The Disneyland Hotel and Resort. For more information regarding the years event please visit http://www.westcoastcasualty.com/dyncat.cfm?catid=3322
http://www.westcoastcasualty.com/dyncat.cfm?catid=3322
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Certifying Claim Under Contract Disputes Act
June 08, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnder the Contract Disputes Act (41 USC 7101 en seq.), when a contractor submits a claim to the government in excess of $100,000, the claim MUST contain a certification of good faith, as follows:
For claims of more than $100,000 made by a contractor, the contractor shall certify that–
(A) the claim is made in good faith;
(B) the supporting data are accurate and complete to the best of the contractor’s knowledge and belief;
(C) the amount requested accurately reflects the contract adjustment for which the contractor believes the Federal Government is liable; and
(D) the certifier is authorized to certify the claim on behalf of the contractor.
41 U.S.C. 7103(b)(1). See also 48 C.F.R. s. 33.207(c) as to the wording of the certification.
The contracting officer is not required to render a final decision on the claim within 60 days if, during this time period, he/she notifies the contractor of the reasons why the certification is defective. 41 U.S.C. 7103(b)(3). Importantly, the contracting officer’s failure to render a decision within 60 days is deemed an appealable denial.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Court Dismisses Coverage Action In Lieu of Pending State Case
July 25, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's coverage action was dismissed by the federal court in favor of the pending case in state court. Southern-Owners Ins. Co. v Marquez, 2021 U.S. Dist. LEXIS 108125 (S.D. Fla. May 4, 2021).
The underlying lawsuit was filed because of of an incident involving a golf cart on a sidewalk owned by the AOAO. The Marquezes owned the golf cart that injured the Murphy's child.
Southern-Owners issued a CGL policy to the AOAO. The Marquezes submitted a claim to Souther-Owners for coverage in the underlying lawsuit as additional insureds under the policy. Southern-Owners defended the AOAO and the Marquezes in the underlying lawsuit pursuant to a reservation of rights. The underlying complaint alleged that the Marquezes negligently permitted their daughter to operate the golf cart on the AOAO's pedestrian walkway. Further, the AOAO negligently failed to reasonably maintain the premises.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Appeals Court Says Loss of Use Is “Property Damage” Under Liability Policy, and Damages Can be Measured by Diminished Value
December 11, 2018 —
Michael S. Levine & David M. Costello - Hunton Insurance Recovery BlogIn a win for policyholders, a California appellate court has held that the loss of use of property resulting from alleged negligence constitutes property damage under a liability insurance policy.
In Thee Sombrero, Inc. v. Scottsdale Insurance Company, the property owner, Thee Sombrero, operated a venue as a nightclub. After a shooting inside the nightclub caused a patron’s death, the local government revoked Sombrero’s right to use the property as a nightclub and, instead, limited permissible use of the property to a banquet hall. Sombrero sued the security company it had hired to keep guns out of the club, alleging that it was the security company’s negligence that caused the city to revoke Sombrero’s nightclub use permit and that the loss of use of the facility as a nightclub resulted in damages of almost a million dollars based on an assessment of the property’s diminished market value. The security company did not contest the claim, and Sombrero obtained a default judgment.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
David M. Costello, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Costello may be contacted at dcostello@HuntonAK.com
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Home Sales and Stock Price Up for D. R. Horton
February 04, 2013 —
CDJ STAFFThey call themselves "America's Builder," and in the last three months of 2013, D. R. Horton exceeded the market's predictions of how many of the homes they built would translate into sales. At the end of 2011, they had $27.7 million in earnings. At the end of last year, they saw $66.3 million in earnings. The 2011 earnings work out to 9 cents per share. Analysts were expecting 14 cents per share, but D. R. Horton delivered 20 cents per share.
The stock market responded with a 3.7% increase in the home builder's stock price, upping it by 79 cents to $22.10.
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Should CGL Insurer have Duty to Defend Insured During Chapter 558 Notice of Construction Defects Process???
September 01, 2016 —
David Adelstein – Florida Construction Legal UpdatesDoes a CGL insurer have a duty to defend its insured-contractor during Florida Statutes Chapter 558 notice of construction defects pre-suit process? This answer is currently undecided and will be up to the Florida Supreme Court to decide. (It is on appeal stemming from a federal district court saying that an insurer does not have a duty to defend its insured-contractor in the 558 process based on the definition of the word “suit” in the CGL policy.)
Why is this an important issue?
The 558 pre-suit notice of construction defects process is designed to facilitate an avenue for construction defect lawsuits to get resolved without having to file a lawsuit or, at least, have issues narrowed before a lawsuit needs to be filed. (Check here for a summary of the 558 process.) It requires pre-suit notifications so that implicated parties can become aware of the defects and have an opportunity to inspect the defects / damage, test the defects / damage, and respond to the notice of construction defects; it provides an avenue for beneficial pre-suit discovery. Through participating in the 558 process, the contractor and/or design professional (and those downstream from them) can: (i) offer to remedy the defect, (ii) settle the defect, whether through money or a combination of money and repairs, (iii) dispute the defect, or (iv) advise that available insurance proceeds will be determined by its liability insurer. See Fla. Stat. s. 558.004.
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David M. Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Sanctions Award Against Pro Se Plaintiff Upheld
June 22, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe plaintiff's failure to timely name an expert witness in his bad faith action led to sanctions being awarded against him in favor of the insurer. Black v. Fireman's Fund Ins. Co., 2020 Cal. App. Unpub. LEXIS 2477 (Cal. Ct. App. April 23, 2020).
After Black's claim was denied by Fireman's Fund, he communicated with company through letters, emails and phone conversations. Black complained that Fireman's Fund handled his claim improperly, engaged in illegal activities and had ties to the Nazi regime in Germany. Fireman's Fund sued Black alleging that his communications amounted to civil extortion, interference with contractual relations, interference with prospective economic advantage, and unfair business practices. Fireman's Fund eventually dismissed its complaint without prejudice.
Black, however, had filed a cross-complaint in which he asserted a number of claims, including bad faith. Black designated attorney Randy Hess as an expert on insurance claims. Over the next year and a half, Fireman's Fund repeatedly attempted to take Hess's deposition. In March 2018, Fireman's Fund moved to compel the deposition or exclude the testimony. The court set a July 20, 2018 deadline for the disposition to take place or else the testimony would be excluded.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com