Jury Finds Broker Liable for Policyholder’s Insufficient Business Interruption Limits
January 06, 2020 —
Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery BlogAfter a four-day trial, an Arizona federal jury found that Western Truck Insurance Services, Inc., an insurance broker, was negligent in selling Madison Alley Transportation and Logistics Inc. a business interruption policy with inadequate annual limits. Based on its finding of negligence, the jury determined that the broker was liable for $685,000 of $1,000,000 in damages suffered by Madison Alley as a result of a flood in its warehouse. The verdict and Complaint, filed in Arizona state court before the case was removed, can be found here and here.
In June 2016, a subtenant in Madison Alley’s warehouse broke a sprinkler line while operating a forklift, causing the warehouse to flood. The warehouse was used to store and deliver retail display goods, and Madison Alley was unable to do business during the five months of repairs.
Madison Alley sought coverage under a business interruption policy it had purchased through Western Truck, but the policy’s $20,000 limit was not enough to cover its approximately $1,480,000 in losses.
Madison Alley sought coverage under a business interruption policy it had purchased through Western Truck, but the policy’s $20,000 limit was not enough to cover its approximately $1,480,000 in losses.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Michelle M. Spatz, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Spatz may be contacted at mspatz@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
A UK Bridge That Is a Lesson on How to Build Infrastructure
November 15, 2017 —
Cameron J. Bell - Engineering News-RecordThis country’s infrastructure—bridges, airports, dams and levees—needs wide-scale repair and renewal. The United Kingdom’s new Queensferry Crossing bridge, connecting Edinburgh to Fife in Scotland, sets a new standard for how to do it. The result speaks for itself: The Queensferry Crossing, a three-tower, 1.7-mile-long cable-stayed bridge, debuted in early September well within budget and a manageable eight-month time delay—a rare occurrence among bridges. According to research at the University of Oxford’s Saïd Business School, nine out of 10 fixed links (bridges and tunnels) suffer an average cost overrun of 34% and a time delay of roughly two years.
Read the court decisionRead the full story...Reprinted courtesy of
Cameron J. Bell, ENR ENR may be contacted at
ENR.com@bnpmedia.com
Apartment Construction Increasing in Colorado while Condo Construction Remains Slow
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFDennis Huspeni writing for the Denver Business Journal reported that Colorado is having a surge of new apartment construction, but very little condominium building. According to Huspeni, “some business leaders and government officials worry that Colorado’s construction defect laws” are the reason for the lack of condominium construction.
Huspeni in the Denver Business Journal alleged that there is a large “liability risk for builders, developers and subcontractors” because current state laws “make it easier for homeowners’ associations to file large, class-action lawsuits against builders for construction problems associated with new condominiums.”
Huspeni spoke with John Batug, senior vice president and regional manager of Wells Fargo’s community banking real estate group, who stated that condo development usually occurs at the same rate as apartment development. Batug alleged that construction defect litigation “seems to have pushed that component of the market out.”
A bill that is supposed to “jump-start” the “condominium construction sector will be introduced this session, but its sponsor said he remains unsure what types of legal reform will be a part of it,” reported Ed Sealover in the Denver Business Journal.
Lakewood Mayor Bob Murphy told Sealover that “city and business leaders would like to see two particular changes in the law: 1.They want to require a super-majority of condo owners to have to agree to legal action before any lawsuit is filed — instead of just needing two of them to move forward. 2.They want a requirement to attempt some sort of alternative dispute resolution before a suit can be filed.”
However, not everyone is in favor of the proposed suggestions. Jonathan Harris, vice president of The Point Homeowners Association, told Sealover that the “bill that the Metro Mayors Caucus wants ignores the fact that arbitration can be an expensive process for property owners.”
Read the full story, Huspeni Article...
Read the full story, Sealover Article... Read the court decisionRead the full story...Reprinted courtesy of
Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?
November 16, 2020 —
Christopher G. Hill - Construction Law MusingsAll Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.”
A recent case in Fairfax County, Virginia, Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
California Court of Appeal Makes Short Work Trial Court Order Preventing Party From Supplementing Experts
August 06, 2019 —
Garret Murai - California Construction Law BlogYears ago I recommended to a client that we hire a construction defect expert in a case. The client, a thrifty fellow, responded, “But I thought you were the construction expert. Why do I need to hire another expert? A fair question and one that caught me flat footed.
Whether I’m an “expert” or not can be debated, but I explained to the client that while I was an attorney whose practice focused on construction law, I was not someone who he would want to take the stand and testify about the engineering design and seismic stability of pilings. For that, he needed an expert.
In construction litigation it’s not uncommon for parties and their attorneys to hire “experts.” There are even special rules set forth in the California Code of Civil Procedure for disclosing, supplementing and deposing experts, which basically provide as follows:
1. Demand for Exchange of Expert Information: After the court sets a trial date in a case, any party may demand that each party exchange information concerning the experts they intend to have testify at trial;
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Client Alert: Absence of a Court Reporter at a Civil Motion Hearing May Preclude Appellate Review
November 26, 2014 —
Angela S. Haskins & Blythe Golay - Haight Brown & Bonesteel LLPA California Court of Appeal expressed its concern over the due process implications of reviewing a trial court's decision that incorporated reasons that were not documented due to the absence of a court reporter. In Maxwell v. Dolezal (No. B254893, filed 11/4/14), the court cautioned that although the lack of a transcript did not preclude its review of an order sustaining a demurrer, the case was an exception because the operative complaint and demurrer were sufficient to permit effective appellate review.
The plaintiff in Maxwell, acting in pro per, had filed an action for invasion of privacy and breach of contract. The plaintiff alleged that the defendant had used his photograph and website without his consent and that he did not receive the money, food and housing in exchange for the intellectual property rights per their agreement. The defendant demurred on the grounds that the complaint was uncertain and it could not be ascertained from the pleading whether the contract was written, oral, or implied. At the hearing on the demurrer, no court reporter was present. Nonetheless, the trial court's minute order explicitly sustained the demurrer "[f]or the reasons stated in open court," without further elaborating. The trial court also denied the plaintiff further leave to amend on the ground that he was unable to articulate in open court a reasonable basis for any additional allegations that would remedy the deficiencies. The court of appeal noted that it was "profoundly concerned about the due process implications of a proceeding in which the court, aware that no record will be made, incorporates within its ruling reasons that are not documented for the litigants or the reviewing court."
Reprinted courtesy of
Angela S. Haskins, Haight Brown & Bonesteel LLP and
Blythe Golay, Haight Brown & Bonesteel LLP
Ms. Haskins may be contacted at ahaskins@hbblaw.com; Ms. Golay may be contacted at bgolay@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
$48 Million Award and Successful Defense of $135 Million Claim
June 04, 2024 —
Peckar & AbramsonPeckar & Abramson is proud to have represented one of the nation’s largest general contractors in the achievement of a $48 million award in its favor and the denial of a $135 million claim against it in Federal Court in the Middle District of Florida on May 3, 2024 arising out of the FDOT’s $2.3 billion reconstruction of I-4, a P3 project and the Department’s largest project ever in the State of Florida.
After a 2-week bench trial, P&A secured the favorable decision which found that the general contractor client was entitled to recover $48 million on its affirmative claim against the party who initiated the lawsuit and that it did not breach its fiduciary duties and was not grossly negligent as was claimed which resulted in a denial of the initiating party’s $135 million claim in its entirety.
Read the court decisionRead the full story...Reprinted courtesy of
Peckar & Abramson
Seattle Expands Bridge Bioswale Projects
May 11, 2020 —
Jim Parsons - Engineering News-RecordThe success of engineered systems to capture stormwater runoff from Seattle’s Aurora Avenue Bridge has spurred construction of additional measures that proponents say will increase total filtering capacity by another two million gallons per year.
Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of