Illinois Court Determines Insurer Must Defend Negligent Misrepresentation Claim
December 09, 2011 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the insureds disclosed flooding problems in the basement, the buyers purchased their home. USAA Cas. Ins. Co. v. McInerney, 2011 Ill. App. LEXIS 1130 (Ill Ct. App. Oct. 31, 2011). In a supplemental disclosure, the insureds reported that during heavy rains light seepage occurred in the basement.
After moving in, the buyers experienced significant water infiltration and flooding in the basement. The buyers and their children also began to experience mold-related illnesses.
The buyers sued for rescission of the contract or, in the alternative, damages. They alleged breach of contract, fraudulent misrepresentation and negligent misrepresentation. In the claim for negligent misrepresentation, the buyers alleged that the insureds carelessly omitted the fact that there were material defects in the basement and foundation when they should have known of such defects.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Delay In Noticing Insurer of Loss is Not Prejudicial
April 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Tenth Circuit reversed a district court's determination that untimely notice of the loss was prejudicial, eliminating the insurer's coverage obligations. B.S.C. Holding, Inc. v. Lexington Ins. Co., 2014 U.S. App. LEXIS 4492 (10th Cir. March 11, 2014).
In January 2008, the insured's employees detected an inflow of water in a salt mine and feared dissolution of the salt or structural problems. The insured tried to devise a solution. Two and a half million dollars were spent to find the cause of the water inflow and to identify a solution. In April 2010, the insured determined the inflow was caused by an improperly sealed oil well. In July 2010, the insured notified Lexington of the water inflow. The ultimate proof of loss was for $7.5 million, which included remediation measures that the insured had performed before notifying Lexington.
Lexington's all-risk policy required the insured to notify the company in writing as soon as practicable.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Show Must Go On: Navigating Arbitration in the Wake of the COVID-19 Outbreak
July 20, 2020 —
Justin K. Fortescue, Zachery B. Roth & Marianne Bradley - White and Williams LLPThe recent COVID-19 outbreak has altered life for all of us, in ways both big and small. Unprecedented restrictions relating to the pandemic have forced individuals across the globe to change the ways in which they live and work. Perhaps not surprisingly, these restrictions have also changed the way we resolve disputes. Just as virtual conferencing has become the “new normal” for family gatherings and social events, it has also become the “new normal” for everything from mediation, to oral argument, to full-blown hearings.
To be sure, there are a number of advantages to conducting adversarial proceedings virtually. First and foremost, it results in substantial cost savings for the parties involved. In-person proceedings typically require significant travel expenses, including airline tickets, hotel reservations, and food and beverage stipends. The use of a virtual forum essentially eliminates these expenses, cutting costs dramatically for attorneys, clients, judges, and arbitrators alike.
Virtual conferencing also affords the opportunity for increased participation from party representatives living across the country, or even across the world. While demanding work schedules often make it impossible for multiple party representatives to attend a deposition, or even a hearing, in person, virtual proceedings require much less of a time commitment. Because these virtual proceedings require participants to spend less time away from other work-related obligations, party representatives are able to attend proceedings that they may otherwise have had to miss.
Reprinted courtesy of White and Williams LLP attorneys
Justin K. Fortescue,
Zachery B. Roth and
Marianne Bradley
Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
Ms. Bradley may be contacted at bradleym@whiteandwilliams.com
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After Restoring Power in North Carolina, Contractor Faces Many Claims
August 10, 2017 —
Jim Parsons - Engineering News-RecordHaving successfully helped to restore power to two North Carolina barrier islands, PCL Civil Constructors now faces the fallout from a July 27 construction incident that forced a week-long evacuation of 60,000 visitors, putting a potential multimillion-dollar dent in the region’s tourism-dependent economy.
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Jim Parsons, ENRENR may be contacted at
ENR.com@bnpmedia.com
Tishman Construction Admits Cheating Trade Center Clients
December 17, 2015 —
Erik Larson – BloombergTishman Construction Corp., builder of One World Trade Center in New York’s financial district, admitted to an overbilling scheme spanning a decade and agreed to pay $20 million in restitution and penalties.
The scam included the World Trade Center project, the renovation of the landmark Plaza Hotel on 5th Avenue and the expansion of the Javits Convention Center in Manhattan, the U.S. Attorney’s Office in Brooklyn, New York, said Thursday.
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Erik Larson, Bloomberg
Sales of New U.S. Homes Fell in February to Five-Month Low
March 26, 2014 —
Shobhana Chandra – BloombergPurchases of new homes in the U.S. fell in February to the lowest level in five months, a sign the industry may take time to pick up after inclement weather damped demand earlier in the year.
Sales declined 3.3 percent to a 440,000 annualized pace, following a 455,000 rate in the prior month that was the strongest in a year, figures from the Commerce Department showed today in Washington. The median forecast of 77 economists surveyed by Bloomberg called for 445,000.
Unusually frigid temperatures added to restraints including rising mortgage rates, higher property values, and a lack of supply that kept prospective buyers away from the market for new and existing properties. Bigger gains in employment and consumer sentiment would help spur the recovery in homebuilding, sustaining its contribution to economic growth and boosting earnings at companies such as Lennar Corp. and KB Home.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
Newmeyer & Dillion Attorney Alan Packer Selected to the 2017 Northern California Super Lawyers List
July 13, 2017 —
Newmeyer & Dillion LLPWALNUT CREEK, Cali. – JULY 7, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that litigation attorney
Alan Packer has been selected to the 2017 Northern California Super Lawyers list. Each year, no more than 2.5 percent of lawyers are selected to receive this honor. Packer will be recognized in the August 2017 issue of
Northern California Super Lawyers Magazine.
Packer is a partner in the firm’s expanding Walnut Creek office. He has practiced law in California for over 30 years, mostly representing parties involved in real estate, home building, commercial construction, and insurance matters. He represents homebuilders, property owners, and business clients on a broad range of legal matters.
Packer is a frequent speaker at seminars and in-house training sessions for clients on issues relating to mechanic’s liens, construction litigation, insurance issues, and related matters.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Construction Contract Clauses That May or May Not Have Your Vote – Part 3
November 23, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The third in a multi-part series, here are some other important construction contract clauses that may determine whether you come out a winner.
Provision: Supervisory Personnel, Employees, and Authority to Bind Provisions
- Typical Provision: ”At all times during performance of the Work, Subcontractor shall have at the job site a competent supervisor approved by Owner. Subcontractor’s supervisor shall be deemed a representative of Subcontractor and all communications given to Subcontractor’s supervisor shall be as binding as if such communications were given to Subcontractor. Should Contractor object to Subcontractor’s supervisor’s presence at the job site, or the presence at the job site, or the presence at the job site of any other employee or agent of Subcontractor or any employee or agent of Subcontractor of Subcontractor, Subcontractor shall cause such persons to be replaced immediately as directed by Contractor.”
- What it Means: Higher-tiered parties have a legitimate interest in ensuring that only competent individuals are allowed to perform work on a project and in ensuring that there are peaceable relations at a job site. Higher-tiered parties also have an interest in ensuring that directives and agreements made and reached in the field are followed. However, it is unreasonable for higher-tiered party or to require that such personnel be able to bind that lower-tiered party to agreements best decided by others.
- What You Can Do: Lower-tiered parties should seek to include language which provides that only “reasonable” changes to personnel are allowed and, as necessary, limit by category or issue the types of items on-site personnel can bind the lower-tiered party to.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com