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DIRECTORY AND CAPABILITIES

Do You Have the Receipt? Pennsylvania Court Finds Insufficient Evidence That Defendant Sold the Product

December 23, 2024 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Coway USA, Inc., No. 22-cv-3516, 2024 U.S. Dist. LEXIS 192849, the United States District Court for the Eastern District of Pennsylvania (District Court) considered whether the plaintiff produced sufficient evidence to establish that the defendant sold and/or marketed a product and, thus, could be held liable for an alleged defect in the product. The plaintiff, a subrogating insurance carrier, brought strict product liability and breach of warranty claims against the defendant—the installer of a bidet in its insured’s home—claiming that the defendant also marketed and sold the bidet. The sole evidence to support a finding that the defendant sold the bidet was the homeowner’s testimony that she bought the product from the installer. The court found that the insured’s testimony, without any documentation or other corroborating evidence, was insufficient to establish that the defendant sold the product. Since proof of a sale is a required element for strict product liability and breach of warranty claims, the District Court granted the defendant’s motion for summary judgment, dismissing the case. This case involved a water loss to the Pennsylvania residence of Mikyung Kim and her husband Adrian Kim (collectively, the Kims) that was discovered in April 2021. An investigation revealed that the water loss originated from the failure of a bidet for a toilet in the second-floor bathroom. The Kims alleged that defendant, Coway USA, Inc. (Coway), sold the bidet and installed it around 2010. An employee of the plaintiff’s liability expert, a materials engineer, opined that a T-connector—a plastic valve that regulates the flow of water to and through the bidet—failed due to overtightening of the connector during the manufacturing process. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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Haight Lawyers Recognized in The Best Lawyers in America© 2019

September 04, 2018 — William G. Baumgaertner & Denis J. Moriarty - Haight Brown & Bonesteel LLP
Partner Denis Moriarty and Of Counsel William Baumgaertner were selected by their peers for inclusion in The Best Lawyers in America© 2019. Mr. Moriarty has been listed for his work in insurance law, and Mr. Baumgaertner has been listed for his defendants’ and plaintiffs’ work in personal injury and product liability litigation. Reprinted courtesy of William G. Baumgaertner, Haight Brown & Bonesteel LLP and Denis J. Moriarty, Haight Brown & Bonesteel LLP Mr. Baumgaertner may be contacted at wbaum@hbblaw.com Mr. Moriarty may be contacted at dmoriarty@hbblaw.com Read the court decision
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Recent Bad Faith Decisions in Florida Raise Concerns

November 06, 2018 — Michael Kiernan, Lauren Curtis & Ashley Kellgren - TLSS Insurance Law Blog
The State of Florida has long been known as one of the most challenging jurisdictions for insurance carriers in the context of bad faith – to say the least. Two recent appellate decisions have taken an already difficult environment and seemingly “upped the ante” in what constitutes good faith claims handling in the context of third-party liability claims. Set forth below is an analysis of the Bannon v. Geico Gen. Ins. Co. and Harvey v. Geico Gen. Ins. Co. decisions. Reprinted courtesy of Traub Lieberman Straus & Shrewsberry LLP attorneys Michael Kiernan, Lauren Curtis and Ashley Kellgren Mr. Kiernan may be contacted at mkiernan@tlsslaw.com Ms. Curtis may be contacted at lcurtis@tlsslaw.com Ms. Kellgren may be contacted at akellgren@tlsslaw.com Read the court decision
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Critical Materials for the Energy Transition: Of “Rare Earths” and Even Rarer Minerals

September 12, 2022 — Robert A. James, Ashleigh Myers, Shellka Arora-Cox & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law Blog
As the world pursues ambitious net-zero carbon emission goals, demand is soaring for the critical materials required for the technologies leading the energy transition. Lithium may be the most well-known of these inputs due to its usage in batteries for vehicles and consumer electronics, but roughly 50 other minerals are central to energy transition technologies. During the coming years, producers, manufacturers and end-users will be increasingly exposed to the roles played by “rare earth” elements (roughly, atomic numbers 57 to 71), platinum group metals, and other materials. The reasons for this heightened interest are simple—even if the underlying environmental, political and technological forces at play are complex:

• Lower-carbon technologies use different materials than carbon-intensive technologies. The mineral requirements of power and mobility systems driven by renewable, nuclear, hydrogen and fusion energy are profoundly different from those forming the backbone of fossil fuel systems. Minerals such as lithium, nickel, copper, cobalt, and rare earth elements are vital for electric vehicles (EVs), batteries, fuel cells, electricity grids, wind turbines, smart devices, and many other essential and proliferating civilian and military technologies. For example, an offshore wind plant needs 13 times more mineral resources than a gas power plant of a similar size.

Reprinted courtesy of Robert A. James, Pillsbury, Ashleigh Myers, Pillsbury, Shellka Arora-Cox, Pillsbury and Amanda G. Halter, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Arora-Cox may be contacted at shellka.aroracox@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Read the court decision
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No Coverage For Construction Defects Under Alabama Law

September 14, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court found there was no coverage for alleged defects caused by the insured homebuilder. Canal Indem. Co. v. Carbin, 2017 U.S. Dist. LEXIS 126662 (N.D. Ala. Aug. 10, 2017). Carbin Construction filed suit against Aaron and Sherry Ford, asserting mechanic's and materialman's liens, and seeking sums allegedly due for work performed under a construction contract. The Fords filed a counterclaim, alleging that over a year had passed since Carbin was to complete construction, and that Carbin refused to do any further work on the house until he was paid an additional $11,771.43. The Fords further contended that Carbin had walked off the job after receiving 96.6 percent of the money owed under the contract although only 88 percent of the construction work had been completed. Carbin tendered the counterclaim to Canal. Canal then filed suit seeking a declaration that it had no duty to defend. 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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Federal Defend Trade Secrets Act Enacted

July 14, 2016 — Michael B. McClellan & Jason L. Morris – Newmeyer & Dillion LLP
On May 11, 2016, President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, creating a private federal civil cause of action for trade secret misappropriation. This landmark legislation, a product of bipartisan backing and significant support from the business community, will affect businesses and individuals operating in almost every economic sector across the country. The DTSA will potentially be at issue any time an employee with access to confidential, proprietary, and trade secret information moves on to a competitor or launches a startup that competes with the former employer. This will be true so long as the product or service that the trade secret relates to is either used in or intended for use in interstate or foreign commerce. Under present commerce clause jurisprudence, the vast majority of businesses providing products and services in the United States will be affected by this new law. The DTSA will provide, for the first time, a codified federal civil remedy for misappropriation of trade secrets. Although most states have adopted some version of the Uniform Trade Secrets Act (“UTSA”), there remains significant variation between the states in their application of the UTSA and litigants face significantly different statutory frameworks depending upon which state holds jurisdiction over the dispute. In addition, prior to this new law, litigants were limited to pursuing their claims for misappropriation of trade secrets in state courts, unless federal diversity jurisdiction applied to the dispute. The DTSA changes that dynamic, providing original federal subject matter jurisdiction over trade secret disputes. Reprinted courtesy of Michael B. McClellan, Newmeyer & Dillion and Jason L. Morris, Newmeyer & Dillion Mr. McClellan may be contacted at Michael.mcclellan@ndlf.com Mr. Morris may be contacted at Jason.morris@ndlf.com Read the court decision
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No Entitlement to Reimbursement of Pre-Tender Fees

April 28, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Federal District Court for the District of Hawaii determined that the insured was not entitled to pre-tender defense fees. The Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 38947 (D. Haw. March 24, 2016). Anova sold and marketed fish. It was insured under policies issued by Hanover that covered claims of "personal and advertising injury." A patent infringement and false advertising case was filed against Anova in the District Court for the District of Hawaii.The underlying complaint alleged Anova falsely, misleadingly, and deceptively advertised, promoted, and sold fish. The allegations covered a period of time between 1999 and 2012, a portion of which time Anova was covered by the Hanover policies. 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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Withholding Payment or Having Your Payment Withheld Due to Disputes on Other Projects: Know Your Rights to Offset

January 04, 2021 — Christopher C. Broughton, Jones Walker LLP - ConsensusDocs
Introduction The right to offset refers to the common sense ability to reduce or eliminate your payment obligations to a party who owes you money on another contract. With offsets, common law largely tracks common sense. The right of offset is recognized by statute and court decisions in many states as well as under federal law and the U.S. Bankruptcy Code. The right to offset can also be established in the contract or subcontract. But like many things that may seem simple, the right to offset can easily become complex. This article provides an overview of the extent and limits of the right to offset varies from state to state and with federal government contracts about the extent and limits of the right of offset. Construction trust fund statutes add another layer of complications. These variations may not be obvious or intuitive, but they have a tremendous impact on your right to get paid or your right to withhold payment. Because of the variations, you must always confirm the law applicable to your contract or subcontract, which may not be where the project or you are located. Read the court decision
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Reprinted courtesy of Christopher C. Broughton, Jones Walker LLP
Mr. Broughton may be contacted at cbroughton@joneswalker.com

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