Summary Judgment Granted to Insurer for Hurricane Damage
January 24, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment, contending there was no coverage for hurricane damage, was granted. Laurence v. Liberty Ins. Corp., 2021 U.S. Dist. LEXIS 227807 (S.D. Texas Nov. 29, 2021).
When Hurricane Harvey hit, Mike Laurence held a homeowner's policy from Liberty Insurance Corporation and a contractor policy for his business, Pride Plumbing, Inc., issued by State Farm Lloyds. Laurence's property suffered water damage during the storm. State Farm investigated and concluded that all but a small amount, within the policy's deductible, was from flood damage and excluded. Laurence sued.
The property covered by the State Farm policy included Laurence's home, Pride Plumbing's office and two sheds. Pride Pluming did not own or lease any of the buildings on the property. Laurence testified in his deposition that the only damage to his property not caused by flood water was to three buildings from fallen tree limbs and equipment from his business.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Duty to Defend Bodily Injury Evolving Over Many Policy Periods Prorated in Louisiana
November 17, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Louisiana Supreme Court held that the duty to defend in long latency disease cases should be prorated between the insurer and insured when the policies cover for only a portion of the time in which the exposure occurred. Arceneaux v. Amstar Corp., 2016 La. LEXIS 1675 (La. Sept. 7, 2016).
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Equitable Subrogation Part Deux: Mechanic’s Lien vs. Later Bank Deed of Trust
September 15, 2016 —
Kevin J. Parker – Snell & Wilmer Real Estate Litigation BlogThis post follows, almost two years to the day, Rick Erickson’s post of August 29, 2014. As noted by Rick Erickson in his August 29, 2014 post, the Arizona Supreme Court in the Weitz case (2014) had determined that equitable subrogation principles were applicable to enable an earlier-recorded mechanic’s lien to be trumped by a later-recorded bank deed of trust, if the loan secured by the later deed of trust paid off a lien that had been ahead of the mechanic’s lien. In a decision filed August 9, 2016, the Arizona Court of Appeals further clarified the scope of such equitable subrogation.
In Markham Contracting Co., Inc. v. FDIC, No. 1 CA-CV 14-0752 (August 9, 2016), the Arizona Court of Appeals addressed a situation where a first-recorded deed of trust was followed by a second-recorded mechanic’s lien; and then, after the mechanic’s lien was recorded, a new lender made a secured construction loan that was used, in part, to pay off the loan that was secured by the first-position deed of trust. The key being “in part.” The subsequent lender loaned $4.8 million, but only $2.9 million went to pay off the balance owing on the first-position deed of trust.
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Kevin J. Parker – Snell & WilmerMr. Parker may be contacted at
kparker@swlaw.com
Constructive Change Directives / Directed Changes
June 06, 2018 —
David Adelstein - Florida Construction Legal Updatesrime contracts typically contain a constructive change directive clause. A constructive change directive also goes by the acronym CCD (and for purposes of this article, such changes will be referred to as a CCD), however it can also be known as a Work Change Directive, Interim Directed Change, or Directed Change, depending on the type of contract beign utilized. An owner can order a CCD, versus issuing the contractor a formalized change order, as a mechanism to direct the prime contractor to perform work if there is a dispute as to contract amount, time, or scope. Just because an owner issues a CCD does not mean the owner is conceding that it owes the contractor a change order. Rather, the owner is ordering the CCD as a mechanism to keep the project moving forward notwithstanding a disagreement with the contractor as to the price or time impact. Standard form construction agreements such as the AIA, EJCDC, or ConsensusDocs, will have a standard provision dealing with change directives where the owner can order the contractor to proceed with work in the absence of a change order. In the federal government context, most construction contracts will contain a changes clause that authorizes the government to formally direct changes; and, there is authority for contractors to equitably pursue a constructive change based on certain directives or instructions issued by the government. Naturally, from the contractor’s perspective, this CCD provision is an important consideration as it could likely require the contractor to finance a change to the owner’s project, particularly if there is a scope dispute where the owner does not believe the contractor is entitled to any change order.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Environmental Regulatory Provisions Embedded in the Infrastructure Investment and Jobs Act
January 03, 2022 —
Anthony B. Cavender - Gravel2GavelWith the enactment of this important legislation, its impact on environmental regulation and policy will be carefully analyzed by the regulated community. Such a review may be hampered by the fact that the law is not only complex but also very long (over 2000 pages!). The Infrastructure Act is mostly an appropriations and authorization law, but it includes many new policy choices. This is a brief review (which can only scratch the surface of this law) of some of the many environmentally related provisions, which are part of this new law and can be located in the pdf version of the law.
The law is composed of nine separate divisions, which are further divided into separate titles and subtitles. Division A is entitled “Surface Transportation”; Division B is the “Surface Transportation Investment Act of 2021”; Division C is “Transit”; Division D is “Energy”; Division E is “Drinking Water and Wastewater”; Division F is “Broadband”; Division G is “Other Authorizations”; Division H is “Revenue Provisions”; Division I is “Other Matters”; Division J is “Appropriations”; and Division K is “Minority Business Development.”
It is somewhat bewildering on first reading, as befits a law that is expressing the manifold policy decisions made by the Congress.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
State-Fed Fight Heats Up Over Building Private Nuclear Disposal Sites
August 03, 2022 —
Mary B. Powers & Debra K. Rubin - Engineering News-RecordThe U.S. Nuclear Regulatory Commission and Interim Storage Partners, a joint venture that gained a federal license last year to build an interim storage facility for spent commercial nuclear fuel at a Texas site, have until Aug. 3 to answer a federal lawsuit claim by state officials that a new U.S. Supreme Court decision eliminates the federal agency’s licensing authority.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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#1 CDJ Topic: McMillin Albany LLC v Superior Court of California
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFStephen A. Sunseria of
Gatzke Dillon & Balance LLP discussed how the Fifth Appellate District court “issued a blistering criticism of the Fourth Appellate District’s prior opinion in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Ca.App.4th 98, which severely limited the reach of the Act to actions not involving property damage and allowing property damage claims to proceed freely under common law without any constraints posed by the Act.” Sunseri stated that “McMillin is a great victory for homebuilders, but battle lines are now clearly drawn between the two appellate districts.”
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In another article regarding the McMillin Albany LLC case,
Garret Murai of
Wendel Rosen Black & Dean LLP posted an article on his California Construction Law Blog that went over the legal debate of California’s Right to Repair Act including Liberty Mutual, Burch v. Superior Court, and KB Home Greater Los Angeles, Inc. v. Superior Court and concluded with a discussion of the McMillin Albany case. Murai predicted, rightly it turned out, that the case would see a “final round before the California Supreme Court.”
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In their December 2, 2015 article, authors
Richard H. Glucksman,
Glenn T. Barger,
Jon A. Turigliatto, and
David A. Napper of
Chapman Glucksman Dean Roeb & Barger reported that the California Supreme Court granted the petition for review of the McMillin Albany decision: “The holdings in Liberty Mutual and McMillin Albany present a conflict of authority that the California Supreme Court has appropriately deemed worthy of review. The parties will now be permitted to file briefs on the merits and amicus briefs will certainly be submitted by the defense and plaintiff bars.”
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Building a Case: Document Management for Construction Litigation
October 07, 2019 —
Robert A. Gallagher, Jane Fox Lehman, & Michael I. Frankel, Pepper Hamilton LLP - ConsensusDocsSuccess in construction litigation often turns less on counsel’s ability to craft legal arguments and more on counsel’s ability to gather, master and present the often complex set of facts underlying the case. In construction matters, most of the key facts are found in documents: contract documents, drawings, plans and specifications, schedules, submittals, progress reports, daily logs, change orders, invoices and payment records. Nowadays, these documents will almost certainly be created, exchanged and stored electronically; many will never exist in hard copy. As such, timely collection, organization and analysis of electronically stored information (ESI) is crucially important in construction litigation.
The construction industry has always involved a large quantity of records. Today, the majority of those records exist only as ESI: Design professionals use computer-aided design (CAD) software to create construction plans. Construction managers use Primavera or similar software to create schedules and workflows. Estimators use job cost control programs. Innovative firms capture digital photos of the project, from mobilization through the punch process.
Because ESI is created and exchanged at a higher rate than hard-copy documents, ESI has facilitated a dramatic increase in the volume of records associated with construction projects. Further compounding the increase is the proliferation of mobile devices. With a smartphone in every pocket, ESI creation has moved out of the home office and the site trailer and onto the site itself. As the volume of ESI expands, so too does the time and expense associated with storing, processing, reviewing and producing these records. This article will cover strategies for balancing time and expense with the requirements of the rules and the needs of the case.
Reprinted courtesy of Pepper Hamilton LLP attorneys
Robert A. Gallagher,
Jane Fox Lehman and
Michael I. Frankel
Mr. Gallagher may be contacted at gallagherr@pepperlaw.com
Ms. Lehman may be contacted at lehmanj@pepperlaw.com
Mr. Frankel may be contacted at frankelm@pepperlaw.com
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