Contractual Assumption of Liability Does Not Bar Coverage
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Michigan Court of Appeals rejected the insurer's argument that coverage was barred for the insured's contractual assumption of liability of another. Travelers Prop. Cas. Co. of Am v. Peaker Serv., Inc., 2014 WL 3605680 (Mich. Ct. App. July 22, 2014).
The contractor was hired to install an "electronic over-speed system" at the University of Michigan. The hope was that the new system would prevent the steam turbines at the central power plant from turning too quickly. The parties' contract provided,
“Section 15.18. Supplier Damage to University Property. Without regard to any other section of the Agreement, Supplier shall be responsible for the costs to return to ‘as was’ condition from any damage caused to the building, grounds, or other equipment and furnishings caused in whole or part by Supplier Personnel while performing activities arising under this Agreement.”
The contractor improperly calibrated the system, causing one of the university's turbines to operate at twice the safe operational speed, causing significant damage to the generator equipment. The university sued the contractor for more than $3 million in damages. Travelers defended, but filed a declaratory judgment action, contending that coverage did not exist because the "contractual liability" exclusion applied. Section 15.18 of the contract purportedly constituted an "assumption" of the insured's own liability, and was therefore not covered under the CGL policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
What is a Civil Dispute?
August 07, 2018 —
Bremer Whyte Brown & O’MearaBroadly speaking, all lawsuits can be put into one of two categories: criminal or civil. Criminal cases are brought by the government against a private person and/or organization for committing an act that is considered harmful to society as a whole; whereas civil cases involve private disputes between individuals and/or organizations.
Civil litigation begins when one person or organization claims that another person or organization has failed to carry out a legal duty owed to the claimant. Legal duties are those prescribed either by contract between the parties, or by the law.
In order for a claimant to commence legal action against another party, the claimant must file a summons and complaint with the court and serve a copy of the summons and complaint on the party against whom the lawsuit is being brought. The person who brings the lawsuit is called the “Plaintiff” and the person against whom the lawsuit is brought is called the “Defendant.”
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Bremer Whyte Brown & O’Meara
Insurance Alert: Insurer Delay Extends Time to Repair or Replace Damaged Property
November 26, 2014 —
Valerie A. Moore & Christopher Kendrick – Haight Brown & Bonesteel LLPIn Stephens & Stephens XII v. Fireman's Fund Ins. (No. A135938, filed November 24, 2014), the plaintiffs obtained property insurance on a warehouse. Within a month, it was discovered to be stripped of all wiring and metal. Fireman's Fund paid for emergency repairs but nothing more, concerned that the damage had occurred outside the policy period.
The policy provided for valuation of either "replacement cost," meaning the expenditure required to replace the damaged property with "new property of comparable material and quality," or "actual cash value," defined as the actual, depreciated value of the damaged property. For replacement cost, Fireman’s Fund was not required to pay "until the lost or damaged property is actually repaired ... as soon as reasonably possible after the loss or damage," and only "[t]he amount [the insured] actually spend[s]...."
In the subsequent bad faith lawsuit, the jury awarded the full cost of repair, despite there being no repairs. The appeals court reversed, holding that there was no right to an immediate award for the costs of repairing the damage; however, the court nonetheless held that the insured was entitled to a "conditional judgment," awarding those costs if repairs were actually made.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Congratulations to BWB&O for Ranking in The U.S. News – Best Lawyers ® as “Best Law Firms”!
November 19, 2021 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce the firm has once again been regionally ranked by The U.S. News – Best Lawyers® with a “Best Law Firms” recognition in two practice areas, Family Law and Commercial Litigation. BWB&O is also honored to be included among many elite and extremely impressive groups of law firms! To read the Twelfth Edition of the “Best Law Firms” rankings, please click here.
Best Lawyers has a prominent reputation for being the most respected peer-review publication in the history of the legal profession. The “Best Law Firms” rankings are based on a rigorous evaluation process, which includes a combination of client feedback, information provided on the Law Firm Survey, the Law Firm Leaders Survey, and Best Lawyers peer review.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Construction Law Breaking News: California Supreme Court Rules in Favor of Beacon Residential Community Association
July 09, 2014 —
Steven M. Cvitanovic – Haight Brown & Bonesteel LLPOn July 3, 2014, the California Supreme Court issued its opinion affirming the First District Court of Appeal in the case of Beacon Residential Community Association v. Skidmore, Owings & Merrill (Case No. S208173). The issue in the Beacon case is whether the architects of a residential project owe a duty to future third party homeowners under SB800 and common law. In 2011, Judge Richard Kramer of the San Francisco Superior Court sustained demurrers of Skidmore, Owings & Merrill and HKS Architects to the homeowners association complaint without leave to amend. The homeowners association appealed and the First District Court of Appeal reversed Judge Kramer, ruling that the homeowners could assert SB800 and common law claims against the architects of the project even in the absence of privity of contract.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
Japan Quake Triggers Landslides, Knocks Power Plant Offline
September 10, 2018 —
Jeff Rubenstone - Engineering News-RecordA magnitude 6.7 earthquake occurred on the northern Japanese island of Hokkaido on Sept. 6, leaving at least seven dead and damaging buildings and structures in the region, including a 1,650MW coal-fired thermal power plant that was taken offline.
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Jeff Rubenstone, ENRMr. Rubenstone may be contacted at
rubenstonej@enr.com
California Contractors: Amended Section 7141.5 Provides Important License Renewal Safety Net
July 25, 2021 —
Amy L. Pierce, Mark A. Oertel, John Lubitz & Adam B. Wiens - Lewis BrisboisUnder California’s Contractors State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., contractors’ licenses expire two years from the last day of the month in which the license was issued or two years from the date on which the renewed license last expired. The Contractors State License Board (CSLB) sends licensees a renewal application 60 to 90 days in advance of the date the license is set to expire. Even with various controls in place, mistakes happen and a renewal application filing deadline can be missed.
During the August 5-6, 2019 Executive, Licensing, and Legislative Committee Meetings, the CSLB discussed proposed amendments to Section 7141.5 to reduce both the burden on it to review applications for retroactive renewal of a license that had not been timely submitted and to provide contractors with some relief from the high burden to establish “the failure to renew was due to circumstances beyond the control of the licensee.” Not long after, the CSLB’s Board of Directors gave staff approval to seek an author for the bill and, on September 29, 2020, Governor Newsom signed Senate Bill 1474 into law, which includes the CSLB’s proposed amendments to Section 7141.5, effective January 1, 2021.
Reprinted courtesy of
Amy L. Pierce, Lewis Brisbois,
Mark A. Oertel, Lewis Brisbois,
John Lubitz, Lewis Brisbois and
Adam B. Wiens, Lewis Brisbois
Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com
Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com
Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com
Mr. Wiens may be contacted at Adam.Wiens@lewisbrisbois.com
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Existence of “Duty” in Negligence Action is Question of Law
February 06, 2019 —
David Adelstein - Florida Construction Legal UpdatesIn a negligence action, the issue of whether a duty applies is a question of law. See Limones v. School Dist. of Lee County, 161 So.3d 384, 389 (Fla. 2015) (“[T]he existence of a duty is a legal question because duty is the standard to which the jury compares the conduct of the defendant.”); McCain v. Florida Power Corp., 593 So.2d 500, 502 (Fla. 1992) (“Since duty is a question of law, an appellate court obviously could reverse based on its purely legal conclusion that no such duty existed.”). Thus, the trial court determines, as a matter of law, whether a legal duty of care applies in a negligence action.
Florida law recognizes the following four sources of duty: (1) statutes or regulations; (2) common law interpretations of those statutes or regulations; (3) other sources in the common law; and (4) the general facts of the case.
See id.
Oftentimes it is the fourth source – the general facts of the case – that comes into play to determine whether the defendant owed the plaintiff a duty of care.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com