Stucco Contractor Trying to Limit Communication in Construction Defect Case
November 13, 2013 —
CDJ STAFFSouth Carolina State Plastering claimed in the South Carolina Court of Appeals that communication between attorneys and residents of a retirement community could undermine the judgment in the case. Residents of Sun City had filed a class action lawsuit over problems with stucco in the community.
Phillip Segul, the plaintiffs’ attorney, noted that plasterer was “directly communicating with the class members and getting them to sign opt-outs and releases of their claims,” although this was something that Everett Kendall, the plasterer’s attorney denied.
The lawsuit has been grinding along for six years. Some residents fear they won’t outlive the construction defect lawsuit.
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TARP Funds Demolish Homes in Detroit to Lift Prices: Mortgages
March 07, 2014 —
Brian Louis and Jeff Green - BloombergIn Flint, once a thriving auto-industry hub, excavators with long metal arms and shovels have begun tearing down 1,500 dilapidated homes in an attempt to lift the housing market.
The demolitions in this Michigan city of about 100,000 people are part of the stepped up efforts by officials in several Midwestern states to rid their blighted neighborhoods of decayed housing that’s depressing prices. The funding for the excavator work comes from a surprising source -- the Hardest Hit Fund of the Troubled Asset Relief Program, or TARP, created in 2008 to stabilize to the financial system.
The $7.6 billion Hardest Hit Fund was intended to help troubled property owners avoid foreclosure and keep their homes. As foreclosures fall in most parts of the country, the fund is using the unspent $3.2 billion to remedy the crisis of abandoned homes. In Detroit alone, 70,000 dwellings, or about 19 percent of the total, may need to be torn down, according to the city.
Mr. Louis may be contacted at blouis1@bloomberg.net. Mr. Green may be contacted at jgreen16@bloomberg.net.
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Brian Louis and Jeff Green, Bloomberg
Cogently Written Opinion Finds Coverage for Loss Caused By Defective Concrete
November 07, 2012 —
Tred Eyerly, Insurance Law HawaiiIf ever in need of a concise, well-reasoned opinion on “occurrence,” “property damage” and applicability of the business risk exclusions, turn to Pamperin Rentals II, LLC v. R.G. Hendricks & Sons Construction, Inc., 2012 Wis Ct. App. LEXIS 698 (Wis. Ct. App. Sept. 5, 2012).
A contractor was hired to install concrete during construction of seven gas stations. Red-D-Mix provided the concrete. The contractor and Red-D-Mix were eventually sued by the gas stations, based upon allegations that the concrete was defectively manufactured and installed. The gas stations alleged that Red-D-Mix supplied concrete that was defective and resulted in damages, including the need to repair nearby asphalt.
Red-D-Mix tendered to its insurers, who denied coverage. Suit was filed and the insurers moved for summary judgment. The trial court determined there were no allegations of either “property damage” or an “occurrence.” Therefore, there was no duty to defend or indemnify Red-D-Mix.
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Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at
te@hawaiilawyer.com
Introducing Nomos LLP!
December 30, 2019 —
Garret Murai - California Construction Law BlogWe’ve been quiet lately we know.
We’ve been nesting. Not the alien popping through your stomach kind of nesting, although, there have been a few white knuckled “what the heck did we get ourselves into!” moments. Rather, we’ve been quietly building something we think is pretty great. Not just for us, but for our clients.
Our own law firm. So here’s the 411:
What’s with the name Nomos LLP?
We’ve gotten a few questions about that. We wanted to create a client-centric law firm not a lawyer-focused one. Hence, no last names. Plus, we don’t have cool last names like Low, Ball & Lynch or Payne & Fears. The name “nomos” is Greek for “law.” And, of course, it’s from the Greeks that much of modern Western legal system is derived. Simple. Opa!
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Best Lawyers® Recognizes 43 White and Williams Lawyers
September 07, 2020 —
White and Williams LLPThirty-three White and Williams lawyers were recognized in The Best Lawyers in America© 2021. Inclusion in Best Lawyers® is based entirely on peer-review. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Best Lawyers® employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of quality legal services.
In addition, ten associates were recognized as "Ones to Watch” by Best Lawyers®. This recognition is given to attorneys who are earlier in their careers for outstanding professional excellence in private practice in the United States.
We are also pleased to announce two
White and Williams partners have been named Best Lawyers® 2021 "Lawyer of the Year" in Philadelphia – Edward F. Beitz, Medical Malpractice Law – Defendants and William J. Taylor - Construction Law. Read the court decisionRead the full story...Reprinted courtesy of
White and Williams LLP
Arizona Court of Appeals Decision in $8.475 Million Construction Defect Class Action Suit
May 09, 2011 —
CDJ STAFFIn the case of Leflet v. Fire (Ariz. App., 2011), which involved an $8.475 million settlement in a construction defect class action suit, the question put forth to the Appeals court was “whether an insured and an insurer can join in a Morris agreement that avoids the primary insurer’s obligation to pay policy limits and passes liability in excess of those limits on to other insurers.” The Appeals court provided several reasons for their decision to affirm the validity of the settlement agreement as to the Non-Participatory Insurers (NPIs) and to vacate and remand the attorney fee awards.
First, the Appeals court stated, “The settlement agreement is not a compliant Morris agreement and provides no basis for claims against the NPIs.” They conclude, “Appellants attempt to avoid the doctrinal underpinnings of Morris by arguing that ‘the cooperation clause did not prohibit Hancock from assigning its rights to anyone, including Appellants.’ This narrow reading of the cooperation clause ignores the fact that Hancock did not merely assign its rights — it assigned its rights after stipulating to an $8.475 million judgment that neither it nor its Direct Insurers could ever be liable to pay. Neither Morris nor any other case defines such conduct as actual ‘cooperation’—rather, Morris simply defines limited circumstances in which an insured is relieved of its duty to cooperate. Because Morris agreements are fraught with risk of abuse, a settlement that mimics Morris in form but does not find support in the legal and economic realities that gave rise to that decision is both unenforceable and offensive to the policy’s cooperation clause.”
The Appeals court further concluded that “even if the agreement had qualified under Morris, plaintiffs did not provide the required notice to the NPIs.” The court continued, “Because an insurer who defends under a reservation of rights is always aware of the possibility of a Morris agreement, the mere threat of Morris in the course of settlement negotiations does not constitute sufficient notice. Instead, the insurer must be made aware that it may waive its reservation of rights and provide an unqualified defense, or defend solely on coverage and reasonableness grounds against the judgment resulting from the Morris agreement. The NPIs were not given the protections of this choice before the agreement was entered, and therefore can face no liability for the resulting stipulated judgment.”
Next, the Appeals court declared that “the trial court abused its discretion in awarding attorney’s fees under A.R.S § 12-341.” The Appeals court reasoned, “In this case, the NPIs prevailed in their attack on the settlement. But the litigation did not test the merits of their coverage defenses or the reasonableness of the settlement amount. And Plaintiffs never sued the NPIs, either in their own right or as the assignees of Hancock. Rather, the NPIs intervened to test the conceptual validity of the settlement agreement (to which they were not parties) before such an action could commence. In these circumstances, though it might be appropriate to offset a fee award against some future recovery by the Plaintiff Leflet v. Fire (Ariz. App., 2011) class, the purposes of A.R.S. § 12-341.01 would not be served by an award of fees against them jointly and severally. We therefore conclude that the trial court abused its discretion in awarding fees against Plaintiffs ‘jointly and severally.’”
The Appeals court made the following conclusion: “we affirm the judgment of the trial court concerning the validity of the settlement agreement as to the NPIs. We vacate and remand the award of attorney’s fees. In our discretion, we decline to award the NPIs the attorney’s fees they have requested on appeal pursuant to A.R.S. § 12-341.01(A).”
Read the court’s decision…
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Extreme Flooding Overwhelms New York Roadways, Killing 1 Person
July 24, 2023 —
Associated Press - BloombergNEW YORK (AP) — Heavy rain spawned extreme flooding in New York’s Hudson Valley that killed at least one person, swamped roadways and forced road closures on Sunday night, as much of the rest of the Northeast U.S. braced Monday for potentially punishing rains.
As the storm moved east, the National Weather Service extended flash flood warnings into Connecticut, including the cities of Stamford and Greenwich, before creeping into Massachusetts. Forecasters said some areas could get as much as 5 inches (12 centimeters) of rain.
In New York's Hudson Valley, rescue teams found the body of a woman in her 30s who drowned after being swept away while trying to evacuate her home, Orange County Executive Steven Neuhaus told WABC-TV. Officials were waiting for the medical examiner's office to arrive, he said.
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Bloomberg
Pennsylvania Court Finds that Two Possible Causes Can Prove a Product Malfunction Theory of Liability
September 29, 2021 —
Gus Sara - The Subrogation StrategistIn Allstate Ins. Co. v. LG Elecs. USA, Inc., No. 19-3529, 2021 U.S. Dist. LEXIS 127014, the United States District Court for the Eastern District of Pennsylvania considered whether plaintiff’s expert engineer’s opinion that there were two possible causes of a fire—both related to alleged product defects within a refrigerator manufactured by the defendant—was sufficient to support the malfunction theory of products liability. The court found that because both potential causes imposed liability on the product manufacturer and the expert ruled out misuse of the product, as well as all external causes of the fire, it was not necessary for the engineer to identify a specific cause under the malfunction theory. The court also found that the expert’s investigation and opinions met the criteria set forth in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993) and the Federal Rules of Evidence and, thus, were admissible.
LG Electronics arose from a fire at the home of Thomas and Lisa Ellis. The public sector fire investigator identified the area of fire origin as the top of a refrigerator manufactured by LG Electronics USA, Inc. (LG). The Ellises filed a claim with their homeowner’s insurance carrier, Allstate Insurance Company (Insurer). Insurer retained a fire investigator and an electrical engineer to investigate the origin and cause of the fire. The fire investigator agreed with the public sector investigator that the fire originated at the top of the refrigerator. The engineer conducted a forensic inspection of the scene and ruled out all potential external ignition sources. He then examined the internal components of the refrigerator. He found arcing activity on a wire at the front top of the refrigerator. He opined that there were two possible causes of the fire: either the heater circuit insulation failed over time due to mechanical damage, or the heat from the internal light fixture ignited combustible components of the refrigerator. Since the engineer ruled out improper use of the refrigerator, he opined that the damage was caused by a manufacturing defect.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com