#12 CDJ Topic: Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015)
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFIn his article, “Remediation Work Caused by Installation of Defective Tiles Not Covered,” attorney
Tred R. Eyerly analyzed the Am. Home Assur. Co. case that involved a dispute between a developer and a subcontractor over fractured tiles: “On cross-motions for summary judgment, the court first found that the fracturing of the stone floor tiles caused by the subcontractor's defective installation was the result of an 'occurrence.' There was no evidence that the subcontractor knew that its tile installation work was defective before the tiles fractured. Instead, the fracturing was an unexpected consequence of the defective installation.”
Everly continues, “But there was no ‘property damage.’ For the subcontractor to prevail, the defective installation work had to be considered separate and distinct from the physical manifestation of the defective work. Under California law, coverage resulted from construction defects that involved physical injuries to other parts of the construction project.” Everly concludes, “Because there was no genuine issues of material fact as to the potential for coverage, there was no duty to defend.”
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Insured's Motion for Reconsideration on Denial of Coverage Unsuccessful
September 28, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's motion to reconsider an order granting the insurer summary judgment challenges the insured's theory it was an additional insured was rejected by the federal district court. Hanover Ins. Co. v. Superior Labor Servs., 2017 U.S. Dist. LEXIS 133127 (E.D. La. Aug. 21, 2017).
The court previously granted Lexington Insurance Company's motion for summary judgment, finding Allied Shipyard, Inc. was not an additional insured and was not entitled to a defense in the underlying actions. On reconsideration, Allied argued the court ruled it was not a "certificate holder" under the Lexington policy, but Allied was not given the opportunity to conduct discovery with respect to whether it was a "certificate holder." Summary judgment was granted before Allied answered Lexington's amended complaint in intervention. Allied submitted its answer could have raised a genuine issue of material fact because it was entitled to coverage under the policy if it was a certificate holder.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
NAHB Speaks Out Against the Clean Water Act Expansion
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders (NAHB) published a news release that declared that the Environmental Protection Agency’s (EPA) proposal to expand the Clean Water Act “goes too far.” The EPA’s proposed expansion of the act would “increase the cost of new homes without a corresponding benefit to America’s lakes, rivers and other water bodies,” NAHB alleged.
Kevin Kelly, NAHB president and a home builder and developer from Wilmington, Del., stated that the “EPA has added just about everything into its jurisdiction by expanding the definition of a ‘tributary’ – even ditches and manmade canals, or any other feature that a regulator determines to have a bed, bank and high-water mark. It’s a waste of taxpayer resources to treat a rainwater ditch with the same scrutiny as we would the Delaware Bay.”
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Draft Federal Legislation Reinforces Advice to Promptly Notify Insurers of COVID-19 Losses
April 20, 2020 —
James Hultz - Newmeyer DillionInsurers across the country are nearly universally denying claims for business interruption stemming from the COVID-19 pandemic. Those denials have in turn been met with swift litigation and potential legislative action. The first business interruption coverage lawsuit related to COVID-19 was filed in New Orleans on March 16. There are now no less than 13 such cases nationwide and many more are likely to follow. Further, legislatures in at least seven states are considering legislation that would, to varying degrees, mandate business interruption coverage for COVID-19 losses, notwithstanding any seemingly contrary policy provisions.
From the early stages of the pandemic, we have consistently advised our clients to promptly notify their insurers of all COVID-19 related losses, even where coverage appeared uncertain. The deluge of coverage litigation and contemplated legislation could drastically alter how insurers handle COVID-19 claims. But policyholders who have failed to satisfy policy notice requirements could miss out on the benefits of those changes. Therefore, policyholders would be ill-advised to sit on the sidelines and wait it out.
Now, draft Federal legislation appears to add further impetus to instructions to “tender early.” The contemplated “Pandemic Risk Insurance Act of 2020” would reportedly devote billions of dollars of federal funds through a Department of Treasury administered reinsurance program designed to offset losses sustained by insurers who actually pay business interruption losses. The legislation is still taking shape but would reportedly create “a Federal program that provides for a transparent system of shared public and private compensation for business interruption losses resulting from a pandemic or outbreak of communicable disease.” President Trump is also reportedly pressuring insurers to provide business interruption coverage. The massive influx of federal funds and pressure from the White House could encourage insurers to reconsider denials of COVID-19 business interruption claims.
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James Hultz, Newmeyer DillionMr. Hultz may be contacted at
james.hultz@ndlf.com
Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy
December 20, 2012 —
HEIDI GASSMAN, HIGGINS, HOPKINS, MCLAIN & ROSWELLThe recently decided case of Colorado Pool Systems, Inc. v. Scottsdale Insurance Company (Colo. Ct. App. 10CA2638, October 25, 2012), confirms that absent specific exclusions in the policy, a commercial general liability (“CGL”) policy covers damages to non-defective property arising from a builder’s own defective workmanship.
Colorado Pool Systems, Inc. (“Colorado Pool”) was hired as a subcontractor to install a swimming pool at Founders Village Pool and Community Center (“Founders Village”) in Castle Rock, Colorado. After the concrete shell of the pool was placed, some of the rebar frame was found to be too close to the surface. Founders Village demanded that Colorado Pool remove and replace the pool, and Colorado Pool contacted its insurance carrier, Scottsdale Insurance Company (“Scottsdale”), with which Colorado Pool held a CGL policy. After inspecting the pool, Scottsdale’s claims adjuster stated that the insurance policy would cover losses associated with removing and replacing the pool.
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Heidi Gassman, Higgins, Hopkins, McLain & Roswell, LLC.Ms. Gassman can be contacted at
gassman@hhmrlaw.com
Ahlers Distinguished As Top Super Lawyer In Washington And Nine Firm Members Recognized As Super Lawyers Or Rising Stars
August 10, 2020 —
Joshua Lane - Ahlers Cressman & Sleight BlogACS is very honored and pleased to announce nine members of our firm were awarded the distinction of top attorneys in Washington. Our blog articles usually cover Construction Legal News, but we feel this is a newsworthy accolade to be shared with friends and clients.
To become candidates to receiving the Super Lawyer nomination, lawyers are nominated by a peer or identified by research. After completing this first step in the process, Super Lawyer’s research department analyzes 12 indicators, such as experience, honors/awards, verdicts/settlements and others. As for the third step, there is a peer evaluation by practice area. Finally, for step four, candidates are grouped into four firm-size categories. In other words, solo and small firm lawyers are compared only with other solo and small firm lawyers, and large firm lawyers are compared with other large firm lawyers. The process is very selective and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers.
John P. Ahlers, one of the firm’s founding partners, was recognized as the Top Lawyer out of all Washington lawyers in the State. Mr. Ahlers stated that “It was humbling to receive this distinction, particularly considering the many talented Super Lawyers in the State and I am a ‘construction lawyer’ to boot! I am grateful for the confidence my many colleagues in the bar have in me, by honoring me with their vote”.
Founding partner Paul R. Cressman Jr. and partner Brett M. Hill were both recognized as one of the 100-Best Lawyers in the State.
Four other firm members are also recognized as Super Lawyers: Scott R. Sleight, Bruce A. Cohen, Lawrence S. Glosser and Ryan W. Sternoff.
Two other firm members, partner Lindsay (Taft) Watkins and associate Scott D. MacDonald are also recognized as Super Lawyer Rising Stars, which recognizes attorneys either 40 years old or younger, or in practice 10 years or less.
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Joshua Lane, Ahlers Cressman & SleightMr. Lane may be contacted at
joshua.lane@acslawyers.com
N.J. Voters Approve $116 Million in School Construction
March 19, 2014 —
Stacie Sherman – BloombergNew Jersey voters in 11 of 13 school districts with bond referendums this week approved $116.1 million of construction.
The largest project, out of a total of $180 million proposed, failed. Voters in the Greater Egg Harbor Regional High School District rejected $37 million in renovations to three schools. The work would have increased property taxes as much as $36 a year, according to the district, which serves four towns at the Jersey Shore.
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Stacie Sherman, BloombergMs. Sherman may be contacted at
sbabula@bloomberg.net
As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?
October 19, 2020 —
Walter J. Andrews, Michael S. Levine, Andrea DeField & Meagan R. Cyrus - Hunton Insurance Recovery BlogAs Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake.
Hurricane Laura is expected to make landfall as a Category 4 storm tonight, or early Thursday morning between Houston, Texas and Lake Charles, Louisiana. With wind speeds reaching over 120 mph, Laura has the potential for catastrophic damage to life and property and long-term disruption of normal business operations. The following three steps are crucial to ensuring that you protect your property and business and maximize insurance proceeds should your property fall in the path of this storm:
- Locate a copy of your policy.
Having your policy on hand prior to a loss will aid in starting your claim as soon as possible, as it may be more difficult to get in touch with your broker following a storm where thousands of claims are taking place simultaneously.
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Walter J. Andrews, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth,
Andrea DeField, Hunton Andrews Kurth and
Meagan R. Cyrus, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Ms. Cyrus may be contacted at mcyrus@HuntonAK.com
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