Someone Who Hires an Independent Contractor May Still Be Liable, But Not in This Case
April 18, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Allstate Veh. & Prop. Ins. Co. v. Glitz Constr. Corp., 2023 N.Y. App. Div. LEXIS 1180, 2023 NY Slip Op 01171, the Supreme Court of New York, Appellate Division, Second Department (Appellate Court), considered whether a contractor could be found liable for its subcontractor’s alleged negligence in causing injury to a homeowner’s property. The homeowner’s insurer, as subrogee of the homeowner, sought to recover damages from the contractor despite an allegation that the subcontractor – an independent contractor – caused the injury to the homeowner’s property. Finding that there was no evidence that any of the exceptions to the non-liability rule related to hiring independent contractors applied, the Appellate Court affirmed the lower court’s decision granting judgment in favor of the contractor.
In this case, the homeowner hired the contractor (defendant) to convert her garage area into a bedroom and an office. The defendant later hired a subcontractor to perform the electrical rough-in work. At trial, the homeowner’s insurer (plaintiff) presented evidence that the subcontractor, who damaged an existing wire with a drill bit, caused an electrical failure that resulted in a fire. The defendant argued that it could not be held liable for the subcontractor’s alleged negligence because the subcontractor was an independent contractor and, on appeal, the Appellate Court agreed.
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Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
The Architecture of Tomorrow Mimics Nature to Cool the Planet
January 31, 2022 —
Damian Shepherd - BloombergThere’s a new climate push in the building industry: regenerative architecture.
The sector has been trying for years to cut its sizeable carbon footprint, which was responsible for 38% of the world’s energy-related greenhouse gases in 2019. But developers need to go beyond preventing pollution if they want to help avoid catastrophic climate change, according to Sarah Ichioka and Michael Pawlyn, co-authors of a new book titled Flourish: Design Paradigms for Our Planetary Emergency.
They argue that buildings should be designed in a regenerative way — a process that mimics nature by restoring its own materials and sources of energy. It goes further than sustainable design, which seeks to reduce harm to the environment and use only essential materials.
“More than half of humanity’s total historic greenhouse-gas emissions have occurred since the concept of ‘sustainability’ entered the mainstream,” Ichioka and Pawlyn write. “It is now time to embrace a new regenerative approach to design and development.”
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Damian Shepherd, Bloomberg
Claim Against Broker Survives Motion to Dismiss
January 25, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's complaint against its broker for failure to secure adequate coverage survived a motion to dismiss. Broecker v. Conklin Prop., LLC, 2020 N.Y. App. Div. LEXIS 7399 (Dec. 2, 2020).
Conklin Property, LLC purchased real property and entered into a contract with JJC Contracting, Inc. for construction and renovation of the property. The broker, Total Management Corp. (TMC) was retained by Conklin to secure insurance for the construction phase of the renovation project. During the renovation, an employee of JJC was injured at the property and died. The employee's estate then sued Conklin. US Underwriters, the insurer, disclaimed coverage pursuant to an exclusion for bodily injury to contractors and subcontractors and their workers.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
There’s an Unusual Thing Happening in the Housing Market
October 03, 2022 —
Tracy Alloway - BloombergIt’s no secret that the US housing market has been softening as interest rates rise at the fastest pace in decades.
Higher mortgage rates mean the dramatic growth in home prices that we’ve seen over the past two years is beginning to slow. Sales of new homes recently came in at the weakest monthly level since 2018. Meanwhile, purchase applications are down 20% year-on-year, and so on.
But the rapid pace of rate hikes has also resulted in an interesting statistical anomaly. Months of supply — or the number of months it would take for the existing inventory of homes on the market to sell at the current sales pace — has jumped to 4.1 from a record low of just 2.1 back in January of this year. And, as Morgan Stanley strategist James Egan notes, rarely have we seen an increase of this size.
To some extent, the jump in inventory is to be expected. It’s maths. As sales volume falls while inventories rise, months of supply naturally increases.
But such a jump is intuitively striking, and the key question for housing-watchers is whether the absolute level of inventory — which is still low by many measures, even as homebuilders have ramped up construction since last year — will turn out to be more important than its rate of change. A housing market that is structurally undersupplied is going to be a lot less vulnerable to fewer sales.
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Tracy Alloway, Bloomberg
Client Alert: Disclosure of Plaintiff’s Status as Undocumented Alien to Prospective Jury Panel Grounds for Mistrial
February 05, 2015 —
R. Bryan Martin, Lawrence S. Zucker II, and Kristian B. Moriarty – Haight Brown & Bonesteel LLPIn Velasquez v. Centrome, Inc. (No. B247080, filed 1/30/2015) the Court of Appeal, Second District, held that a trial judge’s disclosure to the panel of prospective jurors of plaintiff’s status as an undocumented alien was prejudicial and grounds for a new trial.
Plaintiff, Wilfredo Velasquez, brought suit against defendant, Centrome, Inc., alleging personal injuries related to on-the-job exposure to diacetyl, which was purportedly distributed by Centrome.
Prior to trial, numerous motions in limine were filed with the trial court including a motion brought by Plaintiff to preclude Centrome from referring to or making any comments about Mr. Velasquez’s citizenship or immigration status. Plaintiff contended the information was not relevant (as no loss of earnings claim was asserted), and was substantially more prejudicial than probative. Defendant opposed the Motion arguing the information was relevant for the limited purpose of allowing expert testimony about Mr. Velasquez’s inability as an undocumented alien to participate in a lung transplant he claimed was needed. The Court deferred ruling on the motion.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Lawrence S. Zucker II and
Kristian B. Moriarty
Mr. Martin may be contacted at bmartin@hbblaw.com;
Mr. Zucker may be contacted at lzucker@hbblaw.com;
and Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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In Personal Injury Actions, Prejudgment Interest on Costs Not Recoverable
March 12, 2015 —
Elizabeth P. Trent and Leah B. Mason – Haight Brown & Bonesteel LLPIn Bean v. Pacific Coast Elevator Corporation, 2015 DJDAR 2864 (“Bean”), the California Court of Appeal, Fourth Appellate District, held in the published portion of its opinion that courts may not award prejudgment interest on costs in personal injury actions.
In Bean, an employee of defendant Pacific Coast Elevator Corporation (Pacific Coast) drove his vehicle into plaintiff Daniel William Bean’s truck while Bean was stopped at a red light. Bean suffered serious injuries and sued Pacific Coast. A jury found Pacific Coast negligent and awarded Bean $1,271,594.74 in damages. This amount exceeded Bean’s $999,999.00 statutory offer to compromise issued to Pacific Coast prior to trial, which Pacific Coast rejected.
Reprinted courtesy of
Elizabeth P. Trent, Haight Brown & Bonesteel LLP and
Leah B. Mason, Haight Brown & Bonesteel LLP
Ms. Trent may be contacted at etrent@hbblaw.com
Ms. Mason may be contacted at lmason@hbblaw.com
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Insurance Policy to Protect Hawaii's Coral Reefs
December 26, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe New York Times recently reported on an insurance policy issued to the non-profit Nature Conservancy to protect coral reefs in Hawaii. Cihistopher Flavelle, Catrin Einhorn, In a First, Nonprofit Buys Insurance for Hawaii's Threatened Coral Reefs, N.Y. Times, Nov. 21, 2022.
If damaged by a storm, coral reefs need immediate attention if they are going to recover. The Nature Conservancy plans a four step process to save damaged reefs:
- Purchase a policy for all 400,000 acres of coral reefs surrounding the Hawaii island.
- If reefs are sufficiently damaged by a storm the policy will pay out within two weeks.
- The Nature Conservancy will ask the State of Hawaii, owner of the reefs, for a permit to repair the storm damage.
- Finally, if the state officials issue the permit, the insurance proceeds will pay teams of divers to repair the damage. Crews will have about six weeks before coral begins to die.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
2016 California Construction Law Upate
December 10, 2015 —
Garret Murai – California Construction Law BlogThe California State Legislature saw the introduction of 2,297 bills during the first half of the 2015-2016 legislative session of which 1,010 bills were signed into law.
For contractors, the bill (now law), having the most immediate effect is SB 467, which increases the license bond amount required of all contractors from $12,500 to $15,000. In addition to licensing changes, 2015 saw the enactment of a number of bills providing for alternative project delivery methods from design-build, to CM at risk, to public-private partnerships, and even the expanded use of enhanced infrastructure financing districts as the state enters its fourth year since the abolishment of redevelopment agencies.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com