Hawaii Supreme Court Finds Climate Change Lawsuit Barred by “Pollution Exclusion”
November 05, 2024 —
Jason Taylor - Traub Lieberman Insurance Law BlogOn October 7, 2024, the Hawaii Supreme Court answered the question of whether an “accident” includes an insured’s reckless conduct in emitting harmful greenhouse gases (“GHGs”) and whether such emissions are “pollutants” as defined in a general liability policy’s pollution exclusion. In Aloha Petro., Ltd. v. National Union Fire Insurance Co. of Pitt., PA, No., 2024 Haw. LEXIS 179 (Oct. 7, 2024), the Hawaii Supreme Court answered in the affirmative as to both certified questions from the United States District Court for the District of Hawaii, holding that an insured’s reckless conduct can be an “accident” and that GHGs are “pollutants” under the policies’ pollution exclusions.
In the underlying case, the County of Honolulu and the County of Maui (the “Counties”) sued Aloha Petroleum, Ltd. (“Aloha”) and several other fossil fuel companies for climate change-related harms. Namely, the Counties alleged that the fossil fuel industry knew that its products would cause catastrophic climate change, and rather than mitigating their emissions, defendants concealed such knowledge, promoted climate science denial, and increased their production of fossil fuels. Aloha was allegedly on notice that its products caused harmful climate change through its former parent company, Phillips 66, and its current parent company, Sunoco. Given this knowledge, the District Court determined that the Counties allegations constituted reckless conduct by Aloha.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Kaboom! Illinois Applies the Anti-Subrogation Rule to Require a Landlord’s Subrogating Property Insurer to Defend a Third-Party Complaint Against Tenants
December 13, 2021 —
Ryan Bennett - White and Williams LLPIn Sheckler v. Auto-Owners Ins. Co, 2021 IL App (3d) 190500, 2021 Ill. App. LEXIS 593, Auto-Owners Insurance Company (Insurer) paid its insured, Ronald McIntosh (McIntosh), for property damage following a fire in an apartment he rented to Monroe and Dorothy Sheckler (the Shecklers). Insurer filed suit against Wayne Workman (Workman), who performed service work on an oven in the Shecklers’ apartment that leaked gas and resulted in a fire. Workman filed a third-party complaint against the Shecklers for contribution and the Shecklers tendered the defense of the claim to Insurer. Insurer refused the tender and the Shecklers filed a declaratory judgment action. In the court below, the Shecklers argued that, as tenants, they were co-insureds on McIntosh’s property insurance policy. Following a liberal interpretation of precedent from the Supreme Court of Illinois in Dix Mutual Insurance Co. v. LaFramboise, 597 N.E. 2d 622 (Ill. 1992), an Illinois appellate court ruled that Insurer – who provided property insurance – must defend the tenants of a rental property from contribution claims if the tenants are co-insureds under the landlord’s policy.
In Sheckler, the Shecklers hired Workman to fix a broken burner on a gas stove. Finding that additional parts were needed, Workman left while the Shecklers waited inside. While waiting—and despite the smell of gas filling the kitchen—Mr. Sheckler lit the stove. “Kaboom!” wrote the appellate court when describing the scene. A fire erupted and caused substantial damage to the apartment.
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Ryan Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
Using Lien and Bond Claims to Secure Project Payments
March 01, 2021 —
Jonathan Cheatham - Construction ExecutiveWhile suing in court for payment on a construction project is nothing new, the very notion of non-payment tends evokes images of hard-working contractors and subcontractors, working with tight margins, owed payment for services rendered and materials. Fortunately, for general contractors and subcontractors in the construction industry, there are better remedies for securing payment on a project before it becomes a bigger issue.
Construction projects, especially large public ones, usually include a dizzying array of general contractors, subcontractors and independent contractors, sometimes numbering more than a hundred entities. The inter-connected groups of companies working toward the goal of project completion require competent construction management in order to stay on time and on budget for completion. One of the project owner’s key tools used to ensure the process runs smoothly is the use of payment bonds and surety bonds.
Payment Bonds
Payment bonds ensure that contractors and subcontractors get paid for work performed in accordance with contract conditions. Disputes can occur before, during and even after the completion of work. Injunctive lawsuits, which contemplate the stoppage of work, would be detrimental to completing a public or private construction project of substantial size. Rather than having such minor disputes derail the entire project, the aggrieved party’s remedy is to file a claim against the payment bond, which offers a solution designed to keep the issue separate from the project’s completion. The payment bond also allows the project owner to transfer risk.
Reprinted courtesy of
Jonathan Cheatham, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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BIM Meets Reality on the Construction Site
September 25, 2018 —
Aarni Heiskanen - AEC BusinessBIM models are mostly used by foremen on construction sites. But what if they could be made available for workers at the press of a button? This question was what the Finnish government-funded KIRA pilot project set out to answer. As a by-product, the project also produced augmented reality (AR) solutions for construction sites.
The research project was called ”Digitalization of a construction project based on role and location information” (RoPa). It was conducted by construction company Fira and engineering consultancy Sweco.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
3D Printing Innovations Enhance Building Safety
October 07, 2019 —
Mahmut Ekenel & Melissa Sanchez - Construction ExecutiveThe mention of 3D printing alone is enough to get people excited, often conjuring images of a desktop console that can download and create three dimensional objects such as prototypes, or mechanical parts. And yet, in recent years the technology has given way to a slight impatience, as people begin to wonder how and when it will have a direct impact on both their lifestyles and their businesses.
The construction industry has been quick to take advantage of these innovations, and the effects are tangible, especially regarding building safety. The 3D construction technology allows for several key advantages in terms of faster construction times, uncompromised quality of construction and lower costs—allowing for affordable dwellings to be quickly built for people in need.
These advantages also lead to safety improvements during the building process. The ability to accelerate construction time without requiring an increase in labor results in a fewer construction-related workplace injuries and a reduction in material waste, making it an environmentally friendly construction method as well.
ICC-Evaluation Service (ICC-ES), a subsidiary of the International Code Council (ICC) which develops model codes and standards (i.e. International Building Code, International Residential Code) and delivers a wide array of building safety services, has taken the lead on developing acceptance criteria to address building code compliance of 3D printed construction. Currently, 3D construction technology is not within the provisions of the International Building Code (IBC) or International Residential Code (IRC). The acceptance criteria introduces new compliance measures for interior and exterior 3D printed concrete walls (with and without structural steel reinforcement), load-bearing and non-load-bearing walls, and shear walls in one-story, single-unit, residential dwellings. The 3D walls are constructed by printing two outer layers of 3D concrete and then filling the core with 3D concrete to form a solid wall.
Reprinted courtesy of
Mahmut Ekenel & Melissa Sanchez, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Ekenel may be contacted at mekenel@icc-es.org
Ms. Sanchez may be contacted at msanchez@icc-es.org
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Consider the Risks Associated with an Exculpatory Clause
November 24, 2019 —
David Adelstein - Florida Construction Legal UpdatesAn exculpatory clause in a contract is a clause aimed at relieving another party from certain liability. A disclaimer and insulation from liability. Obviously, if you are the party relieving the other party from liability, you want to consider this risk including the potential enforceability of this risk if something goes wrong. If you are the party asking for the insulation from liability, you do not want to create an exculpatory provision that disclaims and insulates you of all liability arising from the contract as it may create an illusory effect – that the agreement is nothing but a naked promise on your end because your promise is fully disclaimed and you are insulated from liability if you break your promise. This could result in an unenforceable contract.
The validity of such an exculpatory clause was at-issue in Pier 1 Cruise Experts v. Revelex Corp., 2019 WL 3024618 (11thCir. 2019). Although not a construction dispute, the exculpatory clause in this case was with two fairly sophisticated parties and expressly insulated one of the contracting parties from “any…damages regardless of kind or type…whether in contract, tort (including negligence), or otherwise.” Pier 1 Cruise Experts, 2019 WL at *7. This is a powerful exculpatory clause because it could be broadly construed to insulate that party from its own breaches of the contract.
In Florida:
[A]n exculpatory clause is enforceable so long as (1) the contracting parties have equal bargaining power and (2) the clause’s provisions are clear and unambiguous. With respect to the latter requirement, ‘the intention to be relieved from liability [must be] made clear and unequivocal and the wording must be so clear and understandable that an ordinary and knowledgeable person will know what he is contracting away.” In the same vein, exculpatory clauses are ‘strictly construed against the party seeking to be relieved of liability.’
Pier 1 Cruise Experts, 2019 WL at *7 (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Public Housing Takes Priority in Biden Spending Bill
November 15, 2021 —
Kriston Capps - BloombergThe White House narrowed its housing agenda with the latest compromise version of President Joe Biden’s social spending bill, lowering funding levels by half while also shifting the bill’s priorities.
Representative Maxine Waters and her allies had pushed for $327 billion for rental assistance, affordable housing and other progressive priorities in the reconciliation bill. The most recent White House framework for the Build Back Better Act shows that this figure has been cut in half: The new target is $150 billion, with funding for many of the same programs intact.
As a result, the balance of the housing investment has shifted from rental aid to public housing, according to the text of the bill. Funds to repair, replace or build public housing amount to $65 billion, down from a proposed $80 billion yet close to half the total housing package.
The White House describes the housing bill as “the single largest and most comprehensive investment in affordable housing in history.” A fact sheet states that it will build or preserve more than 1 million affordable apartments and homes. Biden’s bill also includes a soft repeal of the Faircloth Amendment, a provision that has banned any net new federal public housing units since 1999. Yet the latest version of the bill will not go as far to fulfill Biden’s promise to expand housing vouchers as a federal entitlement program.
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Kriston Capps, Bloomberg
The Death of Retail and Legal Issues
June 15, 2017 —
Wally Zimolong - Supplemental ConditionsThe
National Review recently published an article about the wide ranging economic and social impacts of the death of traditional mid-market shopping malls. The article is not overtly political and at time waxes nostalgic about the prototypical 1980’s shopping mall. However, the article highlights real problems facing the owners of these malls and other traditional shopping centers.
As expected, the economic issues have spurred legal and litigation issues for landlords. One of the issues I have been dealing with is what are a big box tenant’s obligations after a lease expires. Many of the big box tenants that are now vacating malls and shopping centers have been long term tenants. Sometimes, their leases go back decades. In the meantime, the mall may have changed hands. The original lease signed with a second or third removed owner and no doubt amended several times might be long forgotten.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
