Washington Trial Court Narrows Definition of First Party Claimant, Clarifies Available Causes of Action in Commercial Property Loss Context
January 04, 2021 —
Kathleen A. Nelson & Jonathan R. Missen - Lewis BrisboisThe law in the State of Washington, albeit clear on issues regarding first party claimants, was recently challenged in the matter of Eye Associates Northwest, P.C. v. Sedgwick et. al. However, despite this challenge of first impression, the court limited the application of the term “first party claimant” (a term of art akin to “insured”) based upon the wording of a loss payee clause, as well as taking into consideration and harmonizing the wording of the leases, other provisions in the policy regarding tenant improvements, and the simple fact that Eye Associates was not named in the policy whatsoever.
In Eye Associates, the plaintiff leased office space in a high-rise medical office building, insured by three separate insurance companies. A water loss caused damage to the plaintiff’s leased space, and the plaintiff brought suit against the owner of the building, its insurers, the property manager, a third-party administrator (TPA), and two individual adjusters assigned to inspect and adjust the water loss claim.
Reprinted courtesy of
Kathleen A. Nelson, Lewis Brisbois and
Jonathan R. Missen, Lewis Brisbois
Ms. Nelson may be contacted at Kathleen.Nelson@lewisbrisbois.com
Mr. Missen may be contacted at Jonathan.Missen@lewisbrisbois.com
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2011 Worst Year Ever for Home Sales
September 09, 2011 —
CDJ STAFFSo few new single-family homes have sold in 2011 that expectations are that this will be the worst year for new homes sales since the Commerce Department started tracking this in 1963. The Harford Courant notes that previously builders created a new supply to which was added homes under foreclosure.
Ed Leamer, economist and director of UCLA’s Anderson Forecast, says that recovery would be driven by two sectors, manufacturing and construction. “It doesn’t look like there is going to be a big recovery in manufacturing,” he says. “It is going to have to come in housing.”
The soft housing market, however, is leading to a loss of construction jobs, as reported by the Associated General Contractors of America. As a result, stock prices for the twelve largest publicly-traded home builders have declined 22.7 percent in a market that has declined 4.2 percent overall.
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Insurers in New Jersey Secure a Victory on Water Damage Claims, But How Big a Victory Likely Remains to be Seen
April 03, 2019 —
Kevin Sullivan - TLSS Insurance Law BlogProperty insurance policies commonly cover water damage caused by an accidental discharge or leakage of water from an on-site plumbing system and commonly exclude water damage caused by a sewer backup. So it’s not surprising that the cause of water damage is a common battleground between policyholders and insurers. In Salil v. Ohio Security Insurance Co., 2018 WL 6272930 (N.J. App. Div. Dec. 3, 2018), insurers scored a victory when the court held that the release of water and sewage into a restaurant was subject to a $25,000 sublimit for water damage caused by a sewer backup. But claims adjusters and policyholders confronted with water damage claims in New Jersey will no doubt continue to do battle over whether the Salil decision was a decisive victory for insurers or a limited one.
In Salil, the insured landlord leased its building to a restaurant operator. After the insured’s tenant reported water and odor at the restaurant, the insured contacted a plumber, who informed the insured that a clog in the restaurant’s toilet caused Category 3 water to flow into the restaurant. The insured allegedly sustained approximately $160,000 in restoration costs and loss of business income. The plumber used a snake to clear the sewer line to remedy the issue. The restoration company confirmed the cause of the loss was a sewer back up. On this basis, the insurer determined that the cause of loss was a sewer backup. The policy excluded coverage for water damage caused by a sewer back-up, but an endorsement restored that coverage, subject to a $25,000 sub-limit for “direct physical loss or damaged caused by water… which backs up into a building or structure through sewers or drains which are directly connected to a sanitary sewer or septic system.” Pursuant to this endorsement, the insurer paid its $25,000 sublimit.
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Kevin Sullivan, Traub LiebermanMr. Sullivan may be contacted at
ksullivan@tlsslaw.com
Sold Signs Fill Builder Lots as U.S. Confidence Rises: Economy
June 26, 2014 —
Shobhana Chandra and Nina Glinski – BloombergBuyers swarmed builder lots in May to propel the biggest gain in sales of new homes in 22 years, while consumer confidence this month was the strongest since 2008, showing how an improving U.S. job market is giving the economy a much-needed lift.
Home sales jumped 18.6 percent, the largest one-month surge since January 1992, to a 504,000 annualized pace, according to figures from the Commerce Department today in Washington. Another report showed household sentiment climbed in June to the highest point since the early days of the recession that began more than six years ago.
Payroll gains that have exceeded 200,000 workers for four consecutive months and stable borrowing costs at historically low levels are giving Americans the assurance to step back into the real-estate market. The need for builders such as Hovnanian Enterprises Inc. (HOV) to keep up with the growing demand will lead to gains in construction that will boost the economic expansion.
Ms. Chandra may be contacted at schandra1@bloomberg.net; Ms. Glinski may be contacted at nglinski@bloomberg.net
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Shobhana Chandra and Nina Glinski, Bloomberg
West Coast Casualty’s Quarter Century of Service
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFWest Coast Casualty's Construction Defect Seminar has been promoting charitable work for the past twenty-five years. Each year, they promote different charities, and provide multiple ways for individuals and companies to contribute. Whether it’s Buy a Banner, Tennis Shoe Thursday, or Flip Flop Friday, industry members are given opportunities to support worthwhile causes.
This year, West Coast Casualty is supporting
Hawaii’s Children’s Cancer Foundation ,
St. Jude Children’s Research Hospital, and
Shriners Hospital for Children.
WCC also supports charitable organizations through every award that they present each year. Donations are made in the winner’s name: For Jerrold S. Oliver Award of Excellence awardees,
Habitat for Humanity as well as a local California and Nevada charity; For Legend of an Era Award, the designated charity of West Coast Casualty’s Construction Defect Seminar; and for The Larry Syhre Commitment to Service Award, a donation to The Larry Syhre Foundation.
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Attorneys' Fee Clauses are Engraved Invitations to Sue
April 19, 2021 —
David M. McLain – Colorado Construction LitigationAs we start another trip around the sun, hopefully you are in the process of updating your form contracts, including purchase and sale agreements and express written warranties. Because the law and litigation landscape continually changes, it is a good practice to periodically update the forms you use in order to give yourself a fighting chance if and when the plaintiffs' attorneys come knocking on your door. As you engage in this process, I hope that you will take a critical look at whether your contracts include a prevailing party attorneys' fees clause and, if so, whether you should leave it in there.
In Colorado, parties are entitled to recover attorneys' fees only if provided for by statute or by contract. Historically, plaintiffs' attorneys relied on two statutes, the Colorado Consumer Protection Act and Colorado's Statutory Interest statute, to recover attorneys’ fees in construction defect cases. In 2003, the Colorado legislature capped treble damages and attorneys' fees under the Colorado Consumer Protection Act at $250,000, effectively restricting plaintiffs' attorneys from relying on the CCPA to recoup their attorneys' fees, especially in large cases. In 2008, the Colorado Supreme Court issued its decision in Goodyear v. Holmes, stating that plaintiffs can only claim prejudgment interest under Colorado's Statutory Interest statute, in cases where they have already spent money on repairs, not when they are suing for an estimate of what repairs will cost in the future. Without either the CCPA or the prejudgment interest statute to recover attorneys' fees, plaintiffs' attorneys most often now rely on the prevailing party attorney fee clause in contracts between the owner and builder, or in the declaration of covenants, conditions and restrictions in situations where a claim is prosecuted by an HOA.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Meet the Forum's In-House Counsel: ERIN CANNON-WELLS
June 26, 2023 —
Jessica Knox - The Dispute ResolverCompany: Keller North America, Inc.
Email: ecannon@keller-na.com
Website: https://www.keller-na.com/
Under Grad: University of Delaware (Bachelor of Civil Engineering 2000)
Grad School: The University of Texas (Master of Civil Engineering 2002)
Law School: Howard University (JD 2008)
States Where Company Operates/Does Business: Throughout the US and Canada
Q: Describe your background and the path you took to becoming in-house counsel.
A: I studied civil engineering in undergrad and finally found my "calling" when I took a construction course, prompting me to pursue a master's in construction engineering. I started my career at Turner, holding various engineering positions, the last of which introduced me to the "contracting" side of construction. I was inspired to go to law school (in hopes of becoming an in-house lawyer there). After law school, I joined BigLaw, but maintained my desire to practice construction law. I then jumped to a small construction practice group at a mid-size firm, and the mentoring and experience there was everything I could hope for (but for the looming business development and billable hour requirements). From there, I became the sole in-house counsel for a large cement manufacturer and was a true construction generalist. Now I am part of a great legal team for a leading geotechnical specialty contractor. My moves were strategic, and I'm pleased to say that this is the very career I went to law school to have.
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Jessica Knox, Stinson LLPMs. Knox may be contacted at
jessica.knox@stinson.com
Paris ‘Locks of Love’ Overload Bridges, Threatening Structures
June 11, 2014 —
Helene Fouquet and Mark Deen - BloombergLe Pont des Arts, the landmark Paris footbridge that links the Louvre museum to the Saint Germain neighborhood, is buckling under the weight of “love locks.”
The Paris mayor’s office closed the bridge last night to replace a grate after thousands of locks weighed down its structure. Its railings are crumbling, threatening pedestrians on the bridge and cruise boats that ply under it on the Seine River. The bridge was reopened today after it was checked for safety, with two fire-department boats standing by to avert any potential incident.
Although the origins of the trend are unclear, it has become a tradition for lovers to attach a lock to the railing on the sides of bridges in Paris to seal their love. Each lock weighs about 54 to 90 grams. The mayor of Paris’s 6th arrondissement, where the bridge is located, says the locks on the Pont des Arts weigh as much 10 tons, or 22,000 pounds. The grate that collapsed yesterday weighed about 200 kilos and the bridge has about 50 of them.
Ms. Fouquet may be contacted at hfouquet1@bloomberg.net; Mr. Deen may be contacted at markdeen@bloomberg.net
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Helene Fouquet and Mark Deen, Bloomberg