United States Supreme Court Backtracks on Recent Trajectory Away from Assertions of General Jurisdiction in Mallory v. Norfolk Southern
August 01, 2023 —
Charles S. Anderson - Lewis BrisboisWashington, D.C. (June 28, 2023) – On June 27, 2023, the U.S. Supreme Court issued a sharply divided opinion that appears to backtrack on the Court’s steady trajectory away from assertions of general jurisdiction in recent years, e.g. Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011), Daimler AG v. Bauman, 134 S. Ct. 746 (2014), BNSF Railway Co. v. Tyrrell, 2017, 137 S. Ct. 1549 (2017). Relying on a case from 1917, Pennsylvania Fire Ins. Co. of Philadelphia v. Gold Issue Mining & Milling Co., 243 U. S. 93 (1917), Justice Gorsuch, writing on behalf of the plurality, (Justices Gorsuch, Thomas, Sotomayor, and Jackson) (Justice Alito concurring) found that Norfolk Southern “consented” to jurisdiction in Mallory via 42 Pa. Cons. Stat. §5301(a)(2)(i),(b) by registering to do business in Pennsylvania. This statute, 42 Pa. Cons. Stat. §5301, specifically permits jurisdiction over a corporation “incorporat[ed] under or qualifi[ed]as a foreign corporation under the laws of this Commonwealth … for any cause of action that may asserted against him, whether or not arising from acts enumerated in this section.”
In Pennsylvania Fire, the U.S. Supreme Court addressed the Due Process Clause of the U.S. Constitution in connection with a Missouri law that required an out-of-state insurance company desiring to transact any business in the state to file paperwork agreeing to (1) appoint a state official to serve as the company’s agent for service of process and (2) accept service on that official as valid in any suit. After more than a decade of complying with the law, Pennsylvania Fire was served with process and argued that the Missouri law violated due process. The Court unanimously found that there was “no doubt” that Pennsylvania Fire could be sued in Missouri because it had agreed to accept service of process in Missouri on any suit as a condition of doing business there.
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Charles S. Anderson, Lewis BrisboisMr. Anderson may be contacted at
Charles.Anderson@lewisbrisbois.com
Reminder: A Little Pain Now Can Save a Lot of Pain Later
April 28, 2016 —
Christopher G. Hill – Construction Law MusingsI know, you think you hear it enough from me here at Construction Law Musings. I am seemingly constantly beating the drum of early advice from a construction attorney and the benefits of spending a bit of money now to avoid spending a lot of money later. I do this because real world examples of both the costs of failing to prepare early and the benefits of following this advice abound.
An example of the costs of failing to prepare early can be
found at the Construction Payment where the zLien folks discuss a New Hampshire case where a contractor lost two thirds of its potential damages because it did not properly set out the contractual terms and what was to be included in contractual damages. Without any clear line to go on, the Court found liability against the NHDOT for negligent misrepresentation and could only award damages up to a cap that was approximately a third of the damages awarded by the jury and about half of what the trial court had determined to be the damages.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Sales of Existing U.S. Homes Unexpectedly Fell in January
February 22, 2018 —
Sho Chandra – BloombergSales of previously owned U.S. homes unexpectedly fell in January to a four-month low, indicating a shortage of available properties is increasingly hindering the real-estate industry, a National Association of Realtors report showed Wednesday.
Sales growth is limited by an acute shortage of inventory, which is pushing up home prices faster than wage growth. The group noted that property prices have jumped 41 percent over the past five years, while wages have gained 12 percent.
If the current pace of sales continues -- which NAR doesn’t anticipate -- purchases would be lower than in 2017. At the same time, steady hiring and elevated confidence to make large purchases, as well as tax cuts that are boosting Americans’ take-home pay, are expected to sustain demand for housing in much of the nation.
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Sho Chandra, Bloomberg
Don’t Assume Your Insurance Covers A Newly Acquired Company
February 19, 2019 —
Patrick M. McDermott & Michael S. Levine - Hunton Insurance Recovery BlogThe Supreme Court of Virginia’s decision yesterday finding no coverage for fire damage to a building is a cautionary tale for companies acquiring other companies. Erie Ins. Exch. v. EPC MD 15, LLC, 2019 WL 238168 (Va. Jan. 17, 2019). In that case, Erie Insurance issued a property insurance policy to EPC. The policy covered EPC only and did not cover any subsidiaries of EPC. EPC then acquired the sole member interest in Cyrus Square, LLC. Following the acquisition, fire damaged a building that Cyrus Square owned.
EPC sought coverage under its property insurance policy. Because the policy did not cover Cyrus Square, EPC argued that a provision extending coverage to “newly acquired buildings” applied, contending that EPC had newly acquired Cyrus Square’s building by virtue of becoming the sole member interest in the LLC. Based on the law relative to LLCs and its interpretation of the policy, the Supreme Court of Virginia ruled against EPC. It found that although EPC had acquired Cyrus Square, it had not “newly acquired” the building and so the “newly acquired buildings” coverage extension did not apply.
Reprinted courtesy of
Patrick M. McDermott, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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CGL Policies and the Professional Liabilities Exclusion
August 14, 2018 —
David Adelstein - Florida Construction Legal UpdatesCommercial general liability (CGL) policies for contractors traditionally contain a professional liabilities exclusion. This exclusion is generally added through a specific endorsement to eliminate coverage for professional services. Read the endorsement The point of the exclusion, in a nutshell, is simply to eliminate a CGL policy for a contractor serving as a professional liability policy.
Contractors need to appreciate a professional liabilities exclusion added through endorsement because oftentimes there are delegated design components they are responsible for. Perhaps the contractor value engineered a system and is responsible for engineering and signing and sealing the engineered documents (through its subcontractor) associated with that system. Perhaps there is a performance specification that requires the contractor to engineer a system. Perhaps there is a design-build component. Regardless of the circumstance, this professional liabilities exclusion can certainly come into play, particularly if a defect is raised with the design or professional services associated with the engineered system.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Cameron Pledges to Double Starter Homes to Boost Supply
March 05, 2015 —
Svenja O’Donnell – Bloomberg(Bloomberg) -- Prime Minister David Cameron pledged to double the number of homes built for first-time buyers by the end of the next parliamentary term in a bid to tackle Britain’s housing shortage.
In a speech in Colchester, Essex, on Monday setting out the final part of his Tory party’s six-point campaign platform for the May 7 election, Cameron said 200,000 properties will be built by 2020 under his starter-homes plan. Prices of the homes, only available to first-time buyers under the age of 40, will be capped at 450,000 pounds ($692,000) in London and 250,000 pounds outside the capital. Reduced planning constraints will make it easier for developers to cut building costs, allowing the homes to be sold at a 20 percent discount.
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Svenja O’Donnell, BloombergMs. O’Donnell may be contacted at
sodonnell@bloomberg.net
White and Williams Announces the Election of Five Lawyers to the Partnership and the Promotion of Five Associates to Counsel
February 16, 2016 —
White and Williams LLPWhite and Williams is proud to announce that Meredith Bieber, Eric Hermanson, Timothy Martin, Brian Tetro and Debra Weinrich have been elected to the partnership. The firm has also promoted Alan Charkey, Michael DiFebbo, William Doerler, Justin Fortescue and Stephen Milewski from associate to counsel.
The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including construction, finance, healthcare, insurance coverage, product liability, real estate, reinsurance, and subrogation. These accomplished lawyers have earned this elevation based on their contributions to the firm and their practices.
“We are delighted to elect these five lawyers to the partnership and promote five exceptional associates to counsel. Those included in these promotions represent the breadth of services and the deep bench that we have to offer at White and Williams,” said Patti Santelle, Managing Partner of the firm. “The election of our new partners and promotion of our new counsel is a reflection of their success and dedication as well as the continued health of the firm.”
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White and Williams LLP
Force Majeure and COVID-19 in Construction Contracts – What You Need to Know
April 06, 2020 —
Brenda Radmacher & Jason Suh - Gordon & Rees Construction Law Blog“Force Majeure” – While most construction contracts contain these provisions, they are often not understood in relation to the implications they may have on construction projects. With the onset of the COVID-19 pandemic, we are all taking a closer look at many portions of our contracts. The following is a brief primer on how to understand your construction contract and its potential implications on your business in this season of change.
What is a Force Majeure?
Construction contracts usually take into consideration that the parties want to agree at the outset on who bears the risk of unforeseen incidents that may affect the project’s progression. These issues are generally handled in a “force majeure” clause. Force majeure, according to Mariam Webster’s Dictionary is a “superior or irresistible force; or an event or effect that cannot be reasonably anticipated or controlled.” To be deemed a force majeure, generally the circumstances must be outside of a party’s control which makes performance impossible, inadvisable, commercially impractical, or illegal. In addition to being unforeseeable, the circumstances must have external causation, and be unavoidable. However, the key to understanding if COVID-19 will be deemed a condition that will excuse a contractor’s performance is the specific language in the provision.
Generally force majeure events are unavoidable events such as “acts of God,” most notably weather conditions including hurricanes, tornadoes, floods, earthquakes, landslides, and wildfires, as well as certain man-made events like riots, wars, terrorism, explosions, labor strikes, and scarcity of energy supplies. However, there is not much case law or specifics on conditions similar to COVID-19.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees and
Jason Suh, Gordon & Rees
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Suh may be contacted at jwsuh@grsm.com
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