Business Risk Exclusions Dismissed in Summary Judgment Motion
November 09, 2020 —
Tred R. Eyerly - Insurance Law HawaiiWhile the court denied summary judgment on whether the alleged damage was due to faulty workmanship and not covered, it granted summary judgment for dismissal of several business risk exclusions the insurer asserted against the developer. United Specialty Ins. Co. v. Dorn Homes, 2020 U.S. Dist. LEXIS 138431 (D. Ariz. Aug. 4, 2020).
Dorn, a residential home developer, developed a 350 single family residential home division. Dorn did not perform the actual construction, but contracted with various subcontractors.
After completion, Dorn began to receive complaints from homeowners about interior damage to some of the homes. Inspections showed interior cracking, wall separation and foundation movement. Dorn ultimately installed an unvented foam insulated roof system to address these issues. Therefore, it did not repair the faulty workmanship of its subcontractors because it would not have been efficient or as effective. Dorn paid for the repairs to the 87 homes at issue.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Rhode Island District Court Dismisses Plaintiff’s Case for Spoliation Due to Potential Unfair Prejudice to Defendant
September 04, 2018 —
Lian Skaf - The Subrogation StrategistIn Amica Mutual Ins. Co. v. BrassCraft Mfg., Co., 2018 U.S. Dist. LEXIS 88986 (D.R.I. May 29, 2018), the United States District Court for the District of Rhode Island addressed the question of whether the defendant was so unfairly prejudiced by the subrogating insurer’s spoliation of evidence that dismissal of the plaintiff’s case was the appropriate Rule 37(b)(2)(a)(i)-(vi) sanction. The court, focusing on the potential for undue prejudice to the defendant, granted the defendant’s motion to dismiss.
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Lian Skaf, White and Williams, LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
#5 CDJ Topic: David Belasco v. Gary Loren Wells et al. (2015) B254525
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFChapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto, and
David A. Napper analyzed the above mentioned Belasco case, in which “the Second District Court of Appeal made clear that settlement agreements containing waviers of unknown claims in connection with a construction of a property, absent fraud or misrepresentation, will be upheld.” Glucksman, et al. explained that “the homeowner plaintiff had made a claim against the builder pursuant to California Code of Civil Procedure Section 896 (“Right to Repair”) and settled for a cash payment and obtained a Release of all Claims including for all known and unknown claims. The court held that homeowner’s subsequent construction defect claim was barred pursuant to the terms and conditions of the earlier release.”
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In another article on the subject,
Edward A. Jaeger, Jr. and
William L. Doerler of
White and Williams LLP concluded, “The Court of Appeal’s holding establishes that, despite the prohibition against the release of unknown claims set forth in section 1524 and the protections provided to homeowners by the Right to Repair Act, California homeowners can, in fact, release or waive claims against homebuilders for future, latent construction defects. To release or waive such claims, the language of any settlement agreement should be unequivocal.”
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Toward Increased Citizen Engagement in Urban Planning
November 14, 2018 —
Aarni Heiskanen - AEC BusinessDigitalization creates new opportunities for citizen engagement in urban planning. I gave a short presentation on the topic at the Digitalization in Urban Planning event in Helsinki.
The event was organized by CHAOS Architects, a tech company. Its AI cloud platform allows citizens to share ideas about their city and co-create it with their community. The platform contains engagement-driven applications and third-party APIs that process business intelligence for better interaction and decision-making.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Cooperating With Your Insurance Carrier: Is It a Must?
January 02, 2024 —
Susana Arce - Saxe Doernberger & Vita, P.C.A majority of insurance policies require the insured to cooperate with the insurer. The cooperation clause generally states, “the insured agrees to Cooperate with us in the investigation, settlement or defense of the suit.”
The “cooperation clause” is often an afterthought because once litigation has ensued an insured is focused on other important considerations. However, insureds should not forget that complying with the cooperation clause can make the difference between the insurer covering or denying a claim.
The Cooperation Clause in Action
The Court in
HDI Glob. Specialty SE v. PF Holdings, LLC,1 highlighted the importance of cooperating with an insurance carrier. In the underlying litigation, residents of an apartment complex sued four entities, all insured by the same insurance policy: two were named insureds and two were additional insureds. The primary insurer provided a defense for the named insureds.
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Susana Arce, Saxe Doernberger & Vita, P.C.Ms. Arce may be contacted at
SArce@sdvlaw.com
Assembly Bill 1701 Contemplates Broader Duty to Subcontractor’s Employees by General Contractor
August 17, 2017 —
Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & BargerAB 1701 recently passed the Assembly and is pending in the Senate’s Labor and
Industrial Relations and Judiciary Committees. The Bill, if signed by the Governor, would
create a new section in the California Labor Code (Section 218.7) making “direct contractors” –
defined as a contractor “making or taking a contract in the state for the erection, construction,
alteration, or repair of a building, structure, or other private work” – liable for wages a
subcontractor or sub-subcontractor fails to pay to its employee for work included in the general
contractor’s contract with the project owner.
Under the new law, direct contractors would be liable for up to one year from the date of
completion of the work for unpaid wages, fringe benefits, health and welfare benefits, and
pension fund contributions, including interest and state tax payments owed to a subcontractor’s
employee. The employee, however, would not be able to recover penalties or liquidated
damages from the general contractor.
AB 1701 would give the employee, Labor Commissioner, or a joint labor-management
cooperation committee the right to enforce the direct contractor’s liability through a civil action.
It would also extend to third parties who are owed fringe or other benefit payments or
contributions on the employee’s behalf. Pursuant to the proposed language of the new statute, a
prevailing plaintiff in such an action would be entitled to their reasonable attorneys’ fees and
costs, including expert witness fees.
Although Labor Code § 218.7 would impose certain obligations on the subcontractor to
provide the direct contractor with relevant project and payroll records, the subcontractor’s failure
to comply with those obligations does not relieve the direct contractor from liability.
Impact
AB 1701’s apparent purpose is to protect employees, an undeniably important legislative
goal. However, if passed, the bill could greatly increase general contractors’ exposure when
subcontracting work and their cost of doing business. Especially because the new law would not
impact existing laws requiring a direct contractor to timely pay a subcontractor.
As a result, many coalitions against AB 1701 stress the halting effect this could have on
the construction industry as a whole, particularly private construction, which is not as heavily
regulated as public works.
CGDRB will continue to monitor this Bill and provide updates as developments occur.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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Generally, What Constitutes A Trade Secret Is A Question of Fact
February 01, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn construction, contractors maintain competitiveness by compiling, combining, utilizing, or developing proprietary and unique systems. The systems can be from a cost standpoint (determining general conditions or general requirement costs and percentages including percentages for insurance) or can be with respect to certain construction assembly or delegated design components. Such proprietary and unique systems are trade secrets to the contractors and efforts are taken to identify such information as confidential when proposing on a project. Contractors would not want such systems disclosed to others because it would dilute and impact what they believe is valuable and makes them competitive in the marketplace.
Florida’s Uniform Trade Secret Act (“FUTSA”) creates a statutory cause of action for the misappropriation of trade secrets. (FUTSA is set forth in Florida Statute s. 688.001 en seq.) FUTSA displaces or “preempts all claims [such as common law claims] based on misappropriation of trade secrets.” Alphamed Pharmaceuticals Corp. v. Arriva Pharmaceuticals, Inc., 391 F.Supp.2d 1148, 1167 (S.D.Fla. 2005). See also Fla. Stat. s. 688.008.
Florida Statute s. 688.002 (found here) defines the terms “trade secret” and “misappropriation.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Travelers Insurance Sues Chicago for $26M in Damages to Willis Tower
May 15, 2023 —
Annemarie Mannion - Engineering News-RecordTravelers Property Casualty Co. is suing the City of Chicago and its water district for $26 million in damages caused when more than 1 million gallons of Chicago River water flooded into a 110-story skyscraper during a 2020 storm.
Reprinted courtesy of
Annemarie Mannion, Engineering News-Record
Ms. Mannion may be contacted at manniona@enr.com
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