Nicholas A. Thede Joins Ball Janik LLP
October 02, 2015 —
Beverley BevenFlorez-CDJ STAFFAs of September 1st, Nicholas A. Thede, an insurance recovery litigator, joined Ball Janik LLP’s Insurance Recovery, Construction Defect, and Litigation practices. According to the release, Mr. Thede “has advised clients in a wide variety of insurance disputes, including claims arising under general liability, professional liability, directors and officers, employee dishonesty, homeowners, and automotive insurance policies. Thede has successfully represented clients in trials, arbitrations, and appeals, and has obtained numerous favorable settlements for his clients. He has handled insurance disputes throughout Oregon and Washington, along with several other jurisdictions. Mr. Thede has substantial experience litigating claims for insurance ‘bad faith’ and recovery of attorney fees in a variety of settings.”
Ball Janik LLP is headquartered in Portland, Oregon.
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NY Is Set To Sue US EPA Over ‘Completion’ of PCB Removal
June 25, 2019 —
Mary B. Powers - Engineering News-RecordNew York state intends to sue the U.S. Environmental Protection Agency for issuing a certificate to General Electric Co. affirming the company completed its $1.7-billion cleanup of about 40 miles of the upper Hudson River, contaminated with PCBs from two former factories. State Attorney General Letitia James said April 11 that a December state study showed elevated PCB levels in river sediment and concentrations in fish, which were not recovering at the rate EPA anticipated.
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Mary B. Powers, ENRENR may be contacted at
ENR.com@bnpmedia.com
Changes to Comprehensive Insurance Disclosure Act in New York Introduced
February 07, 2022 —
Craig Rokuson & Lisa M. Rolle - Traub Lieberman Insurance Law BlogAs discussed in our post on Friday, January 7, 2022, Governor Kathy Hochul signed into law the Comprehensive Insurance Disclosure Act, mandating comprehensive, automatic disclosures regarding insurance in all cases pending in New York courts.
Although the law was signed as written, Governor Hochul also made proposed amendments to the law, in the form of a “redline” in an attempt to make the law less onerous on insurance companies and businesses. On January 18, 2022, Senator Andrew Gounardes introduced Senate Bill 7882, incorporating Governor Hochul’s proposed amendments:
- The time for disclosure would be 90 days of service of the answer, instead of 60.
- The proof of insurance could constitute a declaration page only, if a party agrees in writing.
- The required policies to be disclosed only relate to the claim litigated.
Reprinted courtesy of
Craig Rokuson, Traub Lieberman and
Lisa M. Rolle, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
Ms. Rolle may be contacted at lrolle@tlsslaw.com
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Federal Court Asks South Dakota Supreme Court to Decide Whether Injunction Costs Are “Damages,” Adopts Restatement’s Position on Providing “Inadequate” Defense
August 13, 2019 —
Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLPDo costs associated with complying with an injunction constitute covered “damages?” The U.S. District Court for the District of South Dakota recently certified that question to the South Dakota Supreme Court, in Sapienza v. Liberty Mutual Fire Insurance Company, No. 3:18-CV-03015-RAL, 2019 U.S. Dist. LEXIS 84973 (D.S.D. May 17, 2019). If the South Dakota Supreme Court takes on the question, it will become one of the few highest state courts to do so.[1] The Sapienza case is also notable because the court adopted § 12 of the Restatement of the Law of Liability Insurance (Restatement) regarding an insurer’s potential liability for providing an “inadequate” defense. In doing so, the Sapienza court joins a growing list of courts to rely upon or cite to the Restatement.
The Sapienza case arose out of an underlying dispute between residential neighbors over the size and location of the Sapienzas’ new house they built in a historic district in Sioux Falls, SD. The newly-built house allegedly prevented the neighbors from using their fireplace, blocked natural light the neighbors previously enjoyed, and decreased the value of the neighbors’ house. The neighbors sought a permanent injunction requiring the Sapienzas to modify or relocate the house. The Sapienzas’ homeowners’ insurer provided them with defense counsel, but the insurer instructed the Sapienzas that it would not cover any costs associated with an injunction as such costs did not constitute covered “damages.”
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Schulman may be contacted at carrollt@whiteandwilliams.com
Mr. Anderson may be contacted at misciosciaa@whiteandwilliams.com
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Construction Contractor “Mean Tweets” Edition
June 04, 2024 —
Garret Murai - California Construction Law BlogBack in the day, if someone had a problem with you the rules of school yard jungle dictated that they had better tell it to your face or you had the right to call them out on it. That, of course, was back then. These days, with social media seemingly everywhere (e.g., Yelp, Twitter, Facebook, etc.), if someone has a problem with you they tell you . . . as well as the rest of the world . . . to your digital face. Jimmy Kimmel has even made it a “thing” with his celebrity “
Mean Tweets” segments.
In
Paglia & Associates Construction, Inc. v. Hamilton, 98 Cal.App.5th 318 (2023), homeowner Vanessa Hamilton was sued by her contractor Paglia & Associates Construction, Inc. doing business as Protech Construction after she posted critical comments to her blog and on Yelp about work performed by Paglia at her home.
The Paglia Case
In or about 2016, after a tree fell on her house, Hamilton’s insurer, Safeco, recommended Paglia to perform the repairs. Paglia and Hamilton entered into a repair contract in 2016 but Paglia did not finish the work until sometime in 2017 claiming that the repair was extensive because Hamilton’s circa 1923 home was in poor condition and current building codes required extensive reconstruction.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Former Owner Not Liable for Defects Discovered After Sale
January 29, 2014 —
Beverley BevenFlorez-CDJ STAFFIn a “tentative decision” by Judge Steven Kleifield, Mark Van Peebles and a real estate company have been exonerated “of any liability in a lawsuit involving the sale of the actor’s Playa del Rey condominium, whose buyer says he discovered mold and a flooring defect,” according to the Patch. However, the judge “ordered the Waterfront Homeowners Association to pay Adel Bebawy $26,217 for repair work on the floor and the kitchen as well as civil penalties for not keeping him informed about board meetings.”
The suit began in 2009 after Bebawy alleged “he discovered the floor had a severe slope and that there was significant mold in a bathroom,” reported the Patch. Kleifield, however, stated that the mold didn’t affect the condo’s value. Furthermore, Kleifield wrote that the sloping didn’t become an issue until Bebawy began installing a hardwood floor.
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SEC Approves New Securitization Risk Retention Rule with Broad Exception for Qualified Residential Mortgages
November 26, 2014 —
Neil P. Casey & Lori S. Smith – White and Williams LLPThe Securities and Exchange Commission (SEC) and five other federal agencies recently approved a joint rule (the “Risk Retention Rule”) mandating that sponsors of certain types of securitizations retain a minimum level of credit risk exposure in those transactions and prohibiting such sponsors from transferring or hedging against that retained credit risk.[i]The final Risk Retention Rule will be effective one year after its publication in the Federal Register for securitizations of residential mortgages, and two years after publication for securitizations of all other asset types. The SEC vote was 3-2, with sharp dissents from Commissioners Gallagher and Piwowar concluding that the adopting agencies had missed a prime opportunity to rein in risky mortgage lending practices that had precipitated the 2008 financial crisis.
Background
Following the meltdown of the securitization markets in 2007 (particularly subprime residential mortgage-backed securities), and the resulting global financial crisis, the Dodd-Frank Act mandated that the U.S. federal banking, securities and housing agencies adopt and implement rules to require sponsors of most new securitizations to retain not less than five percent of the credit risk of any assets that the securitizer, through the issuance of an asset-backed security, transfers, sells or conveys to a third party. It was thought that requiring securitization sponsors to keep “skin in the game” would align the interests of the sponsors with the interests of investors and thereby incentivize the sponsors to ensure the quality of the assets underlying the securitization through appropriate due diligence and underwriting procedures when selecting assets for securitization. Although the Dodd-Frank Act explicitly exempted securitizations of certain types of mortgage loans called “qualified residential mortgages” (or “QRMs”) from this risk retention requirement, it invited the rulemaking agencies to define that key term, provided that their definition could be no broader than the definition of “qualified mortgage”adopted by the Consumer Financial Protection Bureau (CFPB) pursuant to the Truth in Lending Act.[ii] In considering how to define QRM, the rulemaking agencies were directed by the Dodd-Frank Act to take into consideration “underwriting and product features that historical loan performance data indicate result in a lower risk of default.”[iii]
Reprinted courtesy of
Neil P. Casey, White and Williams LLP and
Lori S. Smith, White and Williams LLP
Mr. Casey may be contacted at caseyn@whiteandwilliams.com; Ms. Smith may be contacted at smithl@whiteandwilliams.com
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Colorado Senate Revives Construction Defects Reform Bill
March 01, 2017 —
Beverley BevenFlorez-CDJ STAFFA re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
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