Party Loses Additional Insured Argument by Improper Pleading
September 20, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe Archdiocese failed to plead breach of contract against the County for failure to name the Archdiocese as an additional insured under the liability policy. Pachella v. Archdiocese of Philadelphia, 2017 Pa. Commw. Unpub. LEXIS 595 (Pa. Commw. Ct. Aug. 14, 2017).
Richard and Pachella filed a complaint against the Archdiocese, alleging that Mrs. Pachella was injured when she tripped and fell on the sidewalk outside of St. Patrick's Parish. At the time, the County was leasing St. Patrick's premises for use as an election polling place. The Archdiocese filed a third party complaint alleging negligence and breach of contract claims under a Lease Agreement between St. Patrick's and the County.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause
April 19, 2022 —
Lian Skaf - The Subrogation StrategistSubrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract is made – usually long before a loss occurs – a waiver of subrogation can doom what otherwise may have been a strong case. The Superior Court of Delaware considered such a scenario to determine whether a waiver of subrogation provision applied to a multimillion-dollar subrogation case.
In State of Delaware Insurance Coverage Office and Factory Mutual Insurance Co., both as subrogee of the University of Delaware v. DiSabatino Construction Co., Schlosser & Associates Mechanical Contractors, Inc. and V.E. Guerrazzi, Inc., C.A. No. N19C-08-080, 2022 Del. Super. LEXIS 108 (March 17, 2022), the court granted the defendants’ motions for summary judgment, holding that the plaintiffs’ claims were barred by a waiver of subrogation provision in the underlying contract. Thus, the court held that the plaintiffs could not pursue the defendants in their suit to recover damages as a result of a fire. The court specifically denied the plaintiffs’ argument that since the contract was not signed and another “short form” version was later used the waiver of subrogation provision should not apply.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.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
The Looming Housing Crisis and Limited Government Relief—An Examination of the CDC Eviction Moratorium Two Months In
December 14, 2020 —
Zachary Kessler - Gravel2GavelMonths after the Centers for Disease Control and Prevention (CDC) issued a nationwide eviction moratorium using its emergency pandemic powers under the Public Health Service Act, the efficacy of this unprecedented measure remains unclear. While the Order ostensibly protects tenants facing homelessness or housing insecurity due to the financial impacts of the COVID-19 pandemic through the end of 2020, legal challenges have been initiated in Ohio and Georgia, with additional lawsuits appearing likely. Further, even barring legal challenges, courts have not handled these cases in a uniform manner. With lawmakers unable to reach any stimulus or COVID-19 relief agreement before the election, the CDC Order appears likely to remain the only federal eviction moratorium through its expiration on December 31, 2020.
Since the Order’s enactment, the CDC has since released new guidance, answering some of the open questions not covered by the initial Order. This guidance, while non-binding, is largely more favorable to landlords and property management companies than the initial text of the Order, as it provides that landlords are not required to make tenants aware of the Order’s protections and may challenge the truthfulness of the tenants’ declarations in any state or municipal court. The guidance also clarified the potential criminal penalties for violating the Order and the criminal penalties for perjury for bad faith submissions of the requisite declaration by tenants.
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Zachary Kessler, PillsburyMr. Kessler may be contacted at
zachary.kessler@pillsburylaw.com
Enforcement Of Contractual Terms (E.G., Flow-Down, Field Verification, Shop Drawing Approval, And No-Damage-For-Delay Provisions)
May 04, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhat you contractually agree to matters, particularly when you are deemed a sophisticated entity. This means you can figuratively live or die by the terms and conditions agreed to. Don’t take it from me, but it take it from the Fourth Circuit’s decision in U.S. f/u/b/o Modern Mosaic, Ltd. v. Turner Construction Co., 2019 WL 7174550 (4th Cir. 2019), where the Court started off by stressing, “One of our country’s bedrock principles is the freedom of individuals and entities to enter into contracts and rely that their terms will be enforced.” Id. at *1.
This case involved a dispute between a prime contractor and its precast concrete subcontractor on a federal project. The subcontractor filed a Miller Act payment bond lawsuit. The trial court ruled against the subcontractor based on…the subcontract’s terms! So, yes, what you contractually agree to matters.
Example #1 – The subcontractor fabricated and installed precast concrete panels per engineering drawings. However, the parking garage was not built per dimensions meaning the panels it fabricated would not fit. The subcontractor had to perform remedial work on the panels to get them to fit. The subcontractor pursued the prime contractor for these costs arguing the prime contractor should have field verified the dimensions. The problem for the subcontractor, however, was that the subcontract required the subcontractor, not the prime contractor, to field verify the dimensions. Based on this language that required the subcontractor to field verify existing conditions and take field measurements, the subcontractor was not entitled to its remedial costs (and they were close to $1 Million). Furthermore, and of importance, the Court noted that the subcontract contained a flow down provision requiring the subcontractor to be bound by all of the terms and conditions of the prime contract and assume those duties and obligations that the prime contractor was to assume towards the owner. While this flow-down provision may often be overlooked, here it was not, as it meant the subcontractor was assuming the field verification duties that the prime contractor was responsible to perform for the owner.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Defects Up Price and Raise Conflict over Water Treatment Expansion
August 27, 2013 —
CDJ STAFFThe owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million.
But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015.
Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million.
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DHS Awards Contracts for Border Wall Prototypes
September 20, 2017 —
Engineering News-RecordThe Dept. of Homeland Security has awarded eight contracts to companies to develop prototypes for the Trump administration’s proposed wall along sections of the nearly 2,000-mile U.S.-Mexico border. The contracts are divided evenly between concrete and nonconcrete options. DHS’s Customs and Border Protection agency didn’t specify what sort of materials would be used in the nonconcrete barriers.
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Engineering News-RecordENR staff may be contacted at
ENR.com@bnpmedia.com
California Supreme Court Finds Negligent Supervision Claim Alleges An Occurrence
July 21, 2018 —
Tred R. Eyerly - Insurance Law HawaiiAnswering a question posed by the Ninth Circuit, the California Supreme Court found that a suit against a employer for negligent hiring, retention and supervision of a employee who intentionally injures a third party alleges an occurrence under a CGL policy. Liberty Surplus Co. Corp. v. Ledesma & Meyer Construction Co., 2018 Cal. LEXIS 4063 (Cal. June 4, 2018)
Ledesma & Meyer Construction Company (L&M) contracted with the school district to manage a construction project at a middle school. L&M hired Darold Hecht as an assistant superintendent on the project. In 2010, Jane Doe, a 13-year-old student at the school, sued alleging that Hecht had sexually abused her. Doe’s claims included a cause of action against L&M for negligent hiring, retaining, and supervising Hecht.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com