A Court-Side Seat: Waters, Walls and Pipelines
August 03, 2020 —
Anthony B. Cavender - Gravel2GavelSeveral interesting decisions have recently been made by federal and state courts.
FEDERAL APPELLATE COURTS
The U.S. Seventh Circuit Court of Appeals – ARCO Shifts from State to Federal and No Vigor for VIM
On June 18, 2020, the court decided the case of Baker, et al. v. ARCO, holding that the revised federal removal statutes authorize the removal to federal court of a state-filed complaint against several defendants by the former residents of an Indiana housing complex who contended that the defendants were responsible for the industrial pollution attributed to the operations of a now-closed industrial plant. The housing complex was constructed at the site of the former U.S. Smelter and Lead Refinery. During the Second World War, the plant produced products for the use of the government war effort, thus triggering the applicability of the federal removal statutes.
On June 25, 2020, the court decided the case of Greene, et al. v. Westfield Insurance Company. As the court notes, this is a matter that “began as a case about environmental pollution and evolved into a joint garnishment action.” An Indiana wood recycling facility, VIM Recycling, was the subject of many complaints by nearby residents that its operations and waste disposal activities exposed then to dust and odors in violation of federal law and triggered state tort law claims. VIM was sued in state court, but neglected to notify its insurer, as required by its insurance policy with Westfield Insurance. One thing led to another, and a default judgment in the amount of $ 50 million was entered against VIM. Since VIM at that point had no assets, the plaintiffs and later VIM sought recovery from Westfield. When this dispute landed in federal court, the court, after reviewing the policy, concluded that there was a provision excluding coverage when the insured knew it had these liabilities when it purchased the insurance. As a result, the lower court dismissed the lawsuit, and this decision has been affirmed by the Seventh Circuit.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Law Firm's Business Income, Civil Authority Claim Due to Hurricanes Survives Insurer's Motion for Summary Judgment
December 20, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer was unsuccessful in moving for summary judgment on the insured's claim for loss of business income and civil authority coverage due to losses caused by two hurricanes. Townsley v. Ohio Security Ins. Co., 2021 U.S. Dist. LEXIS 202698 (W.D. La. Oct. 20, 2021).
Hurricane Laura struck southeast Louisiana on August 27, 2020 and Hurricane Delta made landfall in the same area on October 9, 2020. Both hurricanes caused property damage and an interruption of business for the insured law firm. Power outages and mandatory evacuation orders caused by both storms created a loss of income for the law firm. Ohio Security denied coverage under the business income, extra expense, and civil authority provisions.
The law firm sued and Ohio Security moved for summary judgment. From the undisputed facts, the court could not determine the law firm's entitlement to business income and extra expense coverage, so the motion was denied for these claims.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy
February 05, 2024 —
James M. Eastham - Traub LiebermanIn Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision.
The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part."
Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Barratt Said to Suspend Staff as Contract Probe Continues
February 02, 2017 —
Jack Sidders - BloombergBarratt Developments Plc suspended at least three more employees within its London business as part of an ongoing probe into potential misconduct in the awarding of contracts, according to two people familiar with the decision.
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Jack Sidders, BloombergMr. Sidders may be followed on Twitter @jacksidders
Mediation Confidentiality Bars Malpractice Claim but for How Long?
April 01, 2015 —
Jennifer K. Saunders – Haight Brown & Bonesteel LLPThe California Court of Appeal yesterday upheld application of the mediation confidentiality statutes to bar a malpractice action which was based on the attorneys’ actions during mediation. John Amis vs. Greenberg Traurig LLP, et al. (3/18/15) Court of Appeal, Second Appellate District, No. B248447. Inferences about the attorneys’ conduct during mediation were also determined to be unusable in an attempt to circumvent the privilege.
Plaintiff, John Amis, filed an action against his former attorneys, Greenberg Traurig, alleging they were negligent by “causing” him to execute a settlement agreement during a two-day mediation which converted a corporate obligation into a personal obligation. The causes of action included breach of fiduciary duty, malpractice and breach of a conflict waiver, in support of which Amis alleged that the attorneys failed to advise him of the risk involved in entering into the settlement agreement, “drafted, structured and caused it to be executed” during mediation and breached a conflict waiver by failing to negotiate a settlement that provided him with financial security. During plaintiff’s deposition he admitted that all of the advice he had received in connection with the settlement agreement occurred during mediation and that all the damages incurred were from his execution of that agreement during mediation. Greenberg Traurig filed a motion for summary judgment based upon plaintiff’s deposition admissions and argued that since the mediation confidentiality statutes barred each side from presenting testimony as to what occurred during mediation, the plaintiff could not establish the elements of his claims and they could not defend against those allegations. The trial court agreed with the defense, granting summary judgment.
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Jennifer K. Saunders, Haight Brown & Bonesteel LLPMs. Saunders may be contacted at
jsaunders@hbblaw.com
Billion-Dollar Power Lines Finally Inching Ahead to Help US Grids
April 03, 2023 —
Brian Eckhouse, Naureen S Malik & Dave Merrill - BloombergThe biggest impediment to the US achieving a cleaner power grid isn't climate deniers or fossil-fuel lobbies; it’s a lack of transmission lines. The country badly needs more conduits to cart wind and solar energy and hydropower to cities.
For more than a decade, multibillion-dollar power-line projects have struggled to advance, slowed or halted by bureaucracy, NIMBYism or general industry stasis. Now suddenly, several are progressing — and with them the prospect of newly unleashed clean energy as well as more resilient grids in the face of ever-dangerous storms and extreme heatwaves.
There’s SunZia in the Southwest, TransWest Express in the Mountain West, Grain Belt Express to the Midwest, and Champlain Hudson Power Express into New York City — projects that together will cost at least $13 billion. Some are now ordering expensive equipment, a signal of their advancement. SunZia and TransWest expect to begin construction this year.
Reprinted courtesy of
Brian Eckhouse, Bloomberg,
Naureen S Malik, Bloomberg and
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California Supreme Court Upholds Insurance Commissioner’s Authority to Regulate Replacement Cost Estimates
January 26, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPn Assn. of Cal. Insurance Companies v. Jones ( No. S226529, filed 1/23/17), the California Supreme Court reversed trial and appellate court decisions to hold that California’s Insurance Commissioner Dave Jones had the authority to promulgate California Code of Regulations, title 10, section 2695.183, which sets out specific requirements for estimating replacement cost as part of any application for or renewal of homeowners insurance.
The regulation was promulgated in 2010 in response to complaints from homeowners who lost their homes in the Southern California wildfires of 2003, 2007, and 2008, and who discovered that they did not have enough insurance to cover the full cost of repairing or rebuilding their homes because the insurers’ estimates of replacement value were too low when they purchased the insurance.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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I.M. Pei, Architect Who Designed Louvre Pyramid, Dies at 102
July 01, 2019 —
James S. Russell - BloombergI.M. Pei, a dominant figure in American architecture for more than three decades who designed the Louvre’s crystal pyramid and the angular East Building of Washington’s National Gallery of Art, has died. He was 102.
His son Li Chung Pei said on Thursday that his father had died overnight, the New York Times reported.
Pei gave “this century some of its most beautiful interior spaces and exterior forms,” said the jury of the Pritzker Architecture Prize, which Pei won in 1983.
Though reserved and supremely diplomatic, Pei’s face, always crowned by round thick-rimmed glasses, could break unexpectedly into a wide, dazzling smile. He approached clients with charm and a quick wit, and they usually succumbed happily.
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James S. Russell, Bloomberg