Broker Not Negligent When Insured Rejects Additional Coverage
January 31, 2018 —
Tred R. Eyerly – Insurance Law HawaiiThe broker was not negligent when it proposed additional coverage that was rejected by the insured. Cromer v. Rosenzweig Ins. Agency Inc., 2017 N.Y. App Div. LEXIS 8969 (N.Y. App. Div. Dec. 21, 2017).
Plaintiff was injured while employed as a painter at property owned by Allen Skriloff. Coverage was denied because injuries to employees, contractors and employees of contractors were excluded. Plaintiff sued Skriloff and obtained a jury verdict of $6.1 million. Skirloff assigned to plaintiff all rights and claims held against the insurer and insurance brokers.
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Tred Eyerly, Insurance Law Hawaii
Students for Fair Admissions: Shaking the Foundations of EEOC Programs and M/WBE Requirements
October 16, 2023 —
Denise Farris Scrivener - The Dispute ResolverOn June 29, 2023, the Supreme Court issued a landmark decision,
Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, holding that race-based affirmative action programs in college admissions violate the Equal Protection Clause of the Fourteenth Amendment. 143 S. Ct. 2141, 216 L. Ed. 2d 857 (2023). On July 13, 2023, thirteen state Attorney Generals, relying on Students for Fair Admissions, issued a joint letter to the CEOs of the Fortune 100 companies, urging the elimination of all race-based programs in EEOC and government and private contracting. On July 19, 2023, a Tennessee district court judge issued an injunctive order against the Small Business Administration’s 8(a) application program on the basis of the program’s race-based presumption of disadvantage. Ultima Servs. Corp. v. U.S. Dep't of Agric., No. 220CV00041DCLCCRW, 2023 WL 4633481 (E.D. Tenn. July 19, 2023).
The message to be taken from these developments: all race-based programs and, by extension, potentially all gender-based programs—including ones that require or reward participation of Minority Business Enterprises (“MBE”) or Women Business Enterprise (“WBE”) in construction programs—currently stand on shaky ground.
This post will explain the constitutional foundations at play, the decisions shaking things up, and why well-rounded dialogue is urgently needed to address the status of these programs before they’re dead in the water.
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Denise Farris Scrivener, Farris Legal Services LLCMs. Scrivener may be contacted at
denise@farrislegal.net
Key Amendments to Insurance Claims-Handling Regulations in Puerto Rico
September 23, 2019 —
Andres Avila & Richard W. Brown - SDV InsightsPolicyholders in Puerto Rico should be aware of significant benefits provided by recent amendments to the Insurance Code. New rules establish an expedited method of property insurance dispute resolution, mandatory expedited partial payments in the event of catastrophic events, and protection against bad faith claims handling by insurers.
Appraisal Process with a Puerto Rican Twist
A key amendment is the establishment of an appraisal process, widely used for many years in the United States and now adopted in Puerto Rico. Commercial and personal property insurers in Puerto Rico shall include, in their policies, a clause for an appraisal process according to Article 11.150 of the Insurance Code of Puerto Rico, 26 L.P.R.A. § 101 et seq. (“the Code”).
The appraisal process provides both policyholders and insurers the option to submit insurance claims to an impartial umpire if a dispute arises over the value of covered damages or losses. The umpire and appraisers do not have authority to resolve coverage or legal issues. They can only resolve disputes over the quantum claimed for losses already determined to be covered by the insurer. Id. Each party is required to pay its own appraiser’s fees and split equally the fees of the umpire. Id.
Reprinted courtesy of
Andres Avila, Saxe Doernberger & Vita, P.C. and
Richard W. Brown, Saxe Doernberger & Vita, P.C.
Mr. Avila may be contacted at ara@sdvlaw.com
Mr. Brown may be contacted at rwb@sdvlaw.com
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The 411 on the New 415 Location of the Golden State Warriors
June 10, 2015 —
Garret Murai – California Construction Law BlogYou can feel the buzz here in the Bay Area as the Golden State Warriors enter Game 4 of the NBA Playoffs following a 35 point upset over the Houston Rockets on Saturday, and a chance tonight to sweep the series and head to the NBA Finals for the first time since 1975.
Formerly the Philadelphia Warriors from 1946 to 1962, and later the San Francisco Warriors from 1962 to 1971, the Golden State Warriors have played in Oakland’s currently named Oracle Arena since 1966 (except for one year when they played in San Jose while the Oracle Arena was being remodeled).
Starting next year, however, construction will begin on the Warriors’ new stadium in the Mission Bay area of San Francisco with completion scheduled for the 2018-2019 season. Although details are just emerging – and even the conceptual plans have changed after some said that the initial design looked like a toilet – here’s the 411 we know on the new 415 location of the Warriors:
- The cost of the new arena is estimated to be $1 billion.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
New Jersey Law regarding Prior Expert’s Testimony
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFMary Pat Gallagher writing for the New Jersey Law Journal reported that “[l]awyers who track down an opposing expert's testimony from prior cases must disclose that fact during discovery but need not say whether they plan to use it in cross-examining the expert at trial, a New Jersey appeals court says.” In Dalton v. Crawley, the Appellate Division held that “[d]ecisions about cross-examination ‘involve the attorney's mental processes, so they are inherently work product.’”
The issue began when “one of the defense lawyers, Michael McGann, figured out from the deposition questions Mahoney directed at one of his experts that he had transcripts of testimony from earlier cases,” according to the New Jersey Law Journal. “Hit with a notice to produce the transcripts, [Plaintiff attorney Brian] Mahoney refused, saying they were ‘attorney work product and we will not be telling you what we have developed regarding this expert.’"
The New Jersey Law Journal declared that the “ruling means both sides will have to indicate what transcripts they have gathered for use—giving the name of each expert as well as the name and docket number of the prior cases where those experts testified. “
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Nevada State Senator Says HOA Scandal Shows Need for Construction Defect Reform
November 13, 2013 —
CDJ STAFFA Nevada State Senator sees the ongoing HOA scandal as a sign that the state’s construction defect laws need to be revised. State Senator Mike Schneider says that the law “is flawed and actually makes it too easy to do what these folks have done.” What these folks have done has, of course, lead to a number of indictments and guilty pleas in federal court.
One problem that Senator Schneider points to in current Nevada construction defect law is that homeowner attorneys get 40% of any settlement, sometimes leaving homeowners without sufficient funds to repair the defects. “It’s gotten out of hand. We pay some outrageous costs and fees in this cases.”
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California Expands on Scope of Coverage for Soft Cost Claims
February 14, 2023 —
Caitlin N. Rabiyan - Saxe Doernberger & Vita, P.C.The California federal district court case of KB Home v. Illinois Union Insurance Co., No. 8:20-cv-00278-JLS-JDE, (C.D. Cal. August 23, 2022), provides much needed guidance for cases involving builder's risk insurance claims for soft cost coverage.
The case stems from damage to several of KB Home’s residential building sites caused by a severe rainstorm in January 2017. Each home site was a smaller part of a large housing development project. The damage caused significant delay in the completion of some individual home sites, although there was limited evidence of delay to the overall housing development project.
As a result, KB Home sought coverage under a builder’s risk policy purchased from Illinois Union for both hard costs and soft costs. “Hard costs” are the costs directly associated with repairing property damage to the sites. Conversely, “soft costs” are indirect expenses associated with project delays caused by such property damage and repair efforts. For example, hard costs would include labor and materials, whereas the soft costs claimed by KB Home included additional real estate taxes, construction loan interest, and advertising and promotional expenses incurred because of the delays. Illinois Union paid the claim for the hard costs, but denied the soft costs claim. KB Home filed suit and Illinois Union eventually filed a motion for summary judgment.
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Caitlin N. Rabiyan, Saxe Doernberger & Vita, P.C.Ms. Rabiyan may be contacted at
CRabiyan@sdvlaw.com
Detroit Showed What ‘Build Back Better’ Can Look Like
May 10, 2021 —
Rip Rapson - BloombergAmerican cities stand at a precipice. Burdened by an overwhelming public health crisis, drained of resources by economic stagnation and torn apart by racial injustice and unrest, cities are confronting the reality that conventional formulas of municipal finance and practices of working cannot sustain our urban places.
The significance of this moment was not lost on the Biden-Harris administration, which quickly advanced an ambitious mandate commensurate with the challenge: a domestic Marshall Plan called Build Back Better. Already, the first prong — the $1.9 trillion American Rescue Plan — has helped shore up city budgets, restore desperately needed funding for public transportation and keep businesses open and families in homes. The second leg, the $2 trillion American Jobs Plan, represents a bold shift from short-term recovery to long-term transformation.
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Rip Rapson, Bloomberg