Coverage Found For Cleanup of Superfund Site Despite Pollution Exclusion
March 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court determined that the pollution exclusion did not bar defense or indemnity for the insured's obligation to clean up a superfund site. Decker Mfg. Corp. v. The Travelers Indem. Co., 2015 U.S. Dist. LEXIS 12169 (W.D. Mich. Feb. 3, 2015).
From 1966 to 1981, Decker disposed of its waste materials at the township landfill. The landfill was closed in 1981. Decker was insured under a CGL policy for a four year period from January 1, 1973, through January 1, 1977.
After the landfill was closed, the EPA began an investigation which eventually led to a Unilateral Administrative Order in 1995 in which Decker was ordered to remove drums, construct a landfill cap, and monitor groundwater. Decker notified Travelers of the EPA's order on November 14, 1995. Travelers responded that it had no duty to defend or indemnify Decker.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Licensing Mistakes That Can Continue to Haunt You
November 28, 2022 —
Alexa Stephenson & Rick Seely - Kahana FeldToday there are nearly 290,000 contractors licensed in California. This number continues to grow as California law requires businesses or individuals who alter any road or structure to be licensed contractors if the total cost of the project is $500 or more (including labor and materials). Complaints about improper and defective work performed by contractors are constantly filed with the California Contractors State License Board (“CSLB”) and any violations by those contractors could result in a license suspension. A contractor whose license is suspended by the CSLB or otherwise becomes unlicensed jeopardizes a contractor’s livelihood, compromises current insurance policies, and curtails an ability to obtain future insurance coverage. Moreover, being unlicensed could force a contractor to disgorge all money received on a project per California Business & Professions Code § 7031. What can contractors do to stay vigilant and avoid these scary outcomes? Stay tuned for a few suggestions.
1. Stay Qualified
Contractors must make sure the correct person and/or entity is holding the contractor’s license. Contractors can obtain licenses as a sole owner, partnership, corporation, joint venture, or limited liability company. For any form of the business entity, one individual must act as qualifier to meet the CLSB license requirements. This qualifying individual must have the knowledge, experience, and skills to manage the daily activities of a construction business (including field supervision) or be represented by someone else with at least four years of experience within the past ten years as an unsupervised journeyperson, foreperson, supervising employee, or contractor in the trade being applied for.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Rick Seely, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Mr. Seely may be contacted at rseely@kahanafeld.com
Read the court decisionRead the full story...Reprinted courtesy of
A Sample Itinerary to get the Most out of West Coast Casualty’s Construction Defect Seminar
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFWith so many worthwhile events stretched across three days, as well as wanting to get out and explore the many attractions in Orange County, California, Construction Defect Journal has come up with a sample itinerary that balances work with recreation.
Day One: Wednesday, May 16th
9:00 a.m. – Breakfast at
Steakhouse 55 (Disneyland Hotel)
Meet up with colleagues at Disney’s Steakhouse 55 where you will find a more peaceful and upscale venue, perfect for networking or just catching up with friends.
10:00 a.m. -
Madara Spa at Disney’s Grand Californian Hotel
With a free morning, this is the perfect time to take advantage of one of the Disneyland Resort’s pools or schedule a massage at the Madara Spa located within the Grand Californian Hotel.
11:30 a.m. – Grab and Go Lunch at
The Coffee House (Disneyland Hotel)
Refuel with a salad or sandwich from one of Disneyland Resort’s quick service restaurants.
12:00 p.m. – Seminar Registration and Schwag Hunting
Start heading over to the seminar to register and be one of the first to check out the amazing exhibitors and grab the free items they have to offer. You don’t want to miss BHA’s golf challenge, where if you sink a putt you win a $25 Amazon gift card for yourself and BHA will match the $25 to the worthwhile WCC charities!
1:00 p.m. – Seminar Begins!
The afternoon starts with a not-to-be-missed panel, “Struggles and Successes of the Past 25 Years.” Next, you’ll learn about “Unwrapped and Unraveled - An insightful (or inciteful?) play at the
changing nature of the relationships between the parties in a wrap program who thought the wrap was supposed to take care of everything.”
3:00 p.m. – Afternoon Break
Get a cup of coffee or water, and head out into the exhibit hall. Don’t forget to go to BHA’s booth to enter to win Dodger tickets.
3:30 p.m. – Seminar Panels Continue
The seminar returns with two more amazing panels: “East Coast Meets West Coast –Hot Construction Defect Issues and Coverage Cases from the Other Coast” and “How to Conduct Your Claim Investigation and Early Claims Handling To Avoid Bad Faith Traps.”
6:00 p.m. – Attend an After Party
After taking a few minutes to unwind and freshen up, go and network as well as have some at one of the reception’s thrown by attending firms. No after party? Head over to the
Uva Bar at Downtown Disney for a cocktail and some people watching.
8:00 p.m. - Late Dinner at
Catal Restaurant (Downtown Disney)
Enjoy a relaxing and sumptuous meal at Catal in Downtown Disney, one of the famed Patina Group’s restaurants.
Day Two: Thursday, May 17th
7:30 a.m. – Breakfast in the Exhibit Hall
Take advantage of West Coast Casualty’s free breakfast, and peruse more exhibits. Check out BHA’s data process collection process and discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility.
8:30 a.m. – Seminar Panels
The seminar returns with more panels you won’t want to miss: “Recent Important Appellate Decisions in California, Nevada, and Arizona” and “Litigating In The Western States - A Judge’s Perspective.”
10:30 a.m. – Morning Break
Grab a cup of coffee or water and chat with your colleagues about the panels you just heard.
10:45 a.m. – Seminar Panel
Another important panel to finish the morning, “Subrogation is not the type of intervention I need. How a subrogated insurer affects construction defect matters.”
11:45 a.m. – Award Presentation
Find out this year’s winners of the Ollie, Legend of the Era and Silver Stars.
12:15 p.m. – WCC Luncheon
Network and chat with your colleagues at one of the meals provided by the seminar.
1:30 p.m. – Seminar Panel
Now that you’ve recharged, you’re ready for another incredible WCC panel: “What Comes Around (Sometimes) Goes Around: Dealing with Recalcitrant Carriers.”
2:30 p.m. – Afternoon Break
Stretch your legs in the exhibit hall and get yourself more schwag. Learn about BHA’s expanding market presence and full range of services in Texas, Florida, and across the Southeast United States.
3:00 p.m. – Seminar Panels Continue
Don’t miss the last two panels of the day: “Effective Use of Experts” and “Claims Managers Speak - A Retrospective & Prospective Discussion.”
5:30 p.m. – Cocktail Reception
With your glass of Cabernet, network with colleagues and then try your hand again at BHA’s golf challenge to win an Amazon gift card and earn money for WCC charities.
6:30 p.m. – Hit the Pool or Jacuzzi
Take those tired feet and soak them in one of the Disneyland Resort’s many pools and jacuzzi’s. Or schedule a spa treatment at
Madara in the Grand Californian Hotel.
7:00 p.m. – After Party or Ball Game
Now that you’ve given yourself some time to rejuvenate, you’re ready to meet up with friends and colleagues at one of the after parties and receptions. Or if you’re a sports fan and want a break from work, go cheer on the
Angel’s as they play Tampa Bay.
8:30 p.m. –
Uva Bar
Unless you chose to go to the game, enjoy a late supper and cocktail under the beautiful southern California sky at the Uva Bar in Downtown Disney.
Day Three: Friday, May 18th
7:30 a.m. – Breakfast at the Seminar
Take advantage of another free meal, and take the time to check out more exhibits as the last day of the seminar begins. Don’t forget to enter BHA’s raffle for Dodger tickets!
8:30 a.m. – Breakout Sessions I
Choose between one of three breakout sessions: “Known Knowns and Known: Unknowns, the Ins and Outs of Extrapolation,” “Risk Transfer Alphabet Soup - A twelve year lookback on legislative tinkering with anti-indemnity statutes - where are we now?” or “Florida – Opening Pandora's Box and How to Close It.”
9:30 a.m. – Breakout Sessions II
Three additional breakout sessions to choose from: “An Update on California’s Right to Repair Act, featuring McMillin Albany et al. v. Superior Court,” “Finding Evidence for your Coverage Case,” or “Northwest Insurance Coverage and Extra-Contractual Issues.”
10:30 a.m. – Morning Break
Refuel with coffee or water before the next group of exciting breakout sessions begins.
11:00 a.m. – Breakout Sessions III
You’ll want to go to one of these three breakout sessions: “Subcontractor Wars: The Last AI,” “Mediating the Luxury Single Family Home Construction Defect Case,” or “Creative Solutions to the Florida Problem: Making No Contribution and No State Law Work for You.”
12:00 p.m. – Breakout Sessions IV and the End of the Seminar
The seminar closes with the last trio of breakout sessions: “Everyone is a Small Player,” “Real World Solutions to the Real Problems Presented By Wrap Up Programs,” or “When Mother Nature Attacks, Are you Covered?”
1:30 p.m. – Lunch at
Corn Dog Castle in California Adventure Park OR
Hollinghead’s Delicatessen in Orange
If you’re a Disney lover, you’ll want to take advantage of the day by going to one of the Disney Resort Parks, of course. Get one of Disney’s amazing corn dogs at Corn Dog Castle in California Adventure Park.
Or if you would rather explore the greater Anaheim area, then head over to Hollinghead’s Delicatessen for a homemade sandwich and a glass of beer on tap.
3:00 p.m. –
Disney Entertainment OR Museum Exploring
If you chose to go to California Adventure, check out the event schedule for the day. Catch the show Frozen – Live at the Hyperion or get a
Fastpass for the Radiator Springs Racers and ride Soarin’ Around the World. If you purchased a two-park pass, don’t forget about Space Mountain or Star Tours located in the Disneyland Park.
North Orange county has many interesting museums. Head to the
Bowers Museum in Santa Ana or the
Muzeo in Anaheim.
7:00 p.m. – Dinner at the
Blue Bayou Restaurant OR the
Summit House Restaurant
Have a one-of-a-kind eating experience at the Blue Bayou in Disneyland Park. Enjoy a dinner in the midst of the Pirates of the Caribbean ride! If you wish to remain in the California Adventure Park, try an alfresco dinner at
Wine Country Trattoria or an indoor, upscale meal at
Carthay Circle.
After an afternoon perusing museums, enjoy a truly superb meal with attentive service at one of Anaheim’s premier restaurants, Summit House. Feeling like having some fun rather than a sedate meal? Head over to the
House of Blues in Anaheim for their Party Like It’s 1999! A Prince Tribute Party.
8:30 p.m. – Paint the Night Parade/Together Forever OR The Blind Rabbit Speakeasy
Head over to watch the
Paint the Night Parade at the California Adventure Park or the fireworks display,
Together Forever — A Pixar Nighttime Spectacular at the Disneyland Park. Be sure to check out the daily
event schedule for up to date information.
End your evening at Anaheim’s only speakeasy,
the Blind Rabbit, located in the Anaheim Meat Packing district. Be sure to check out their “rules” and reserve a table at this popular spot.
Read the court decisionRead the full story...Reprinted courtesy of
Congratulations to Arezoo Jamshidi & Michael Parme Selected to the 2022 San Diego Super Lawyers Rising Stars List
April 04, 2022 —
Arezoo Jamshidi & Michael C. Parme - Haight Brown & Bonesteel LLPCongratulations to Arezoo Jamshidi and Michael Parme who were selected for the 2022 San Diego Super Lawyers Rising Stars list. The 2022 San Diego Rising Stars list is an honor reserved for lawyers who exhibit excellence in practice. Only 2.5% of attorneys in San Diego receive this distinction.
Reprinted courtesy of
Arezoo Jamshidi, Haight Brown & Bonesteel, LLP and
Michael C. Parme, Haight Brown & Bonesteel, LLP
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Senior Housing Surplus Seen as Boomers Spur Building Boom
May 19, 2014 —
Brian Louis – BloombergReal estate developers are betting big on U.S. housing for the elderly, preparing for a surge in demand as the population of senior citizens almost doubles in the next 35 years. They may be building too fast.
A jump in supply is forecast to cut growth in senior-housing net operating income to 1.8 percent in 2015 and 1.4 percent in 2016 from 3.3 percent this year, according to Green Street Advisors Inc. The increase may hurt health-care real estate investment trusts and companies including Brookdale Senior Living Inc. (BKD), which is buying competitor Emeritus Corp. (ESC) for about $1.4 billion to become the biggest owner of senior properties, the research firm said.
“Increased supply is always worrisome in any type of commercial real estate,” said Jim Sullivan, a managing director at Newport Beach, California-based Green Street. “In senior housing, new construction has ramped up considerably over the last two years.”
Read the court decisionRead the full story...Reprinted courtesy of
Brian Louis, BloombergMr. Louis may be contacted at
blouis1@bloomberg.net
First Circuit Rules Excess Insurer Must Provide Coverage for Fuel Spill
January 18, 2021 —
Syed S. Ahmad & Adriana A. Perez - Hunton Andrews KurthThe First Circuit recently held that a “Special Hazard and Fluids Limitation Endorsement” was ambiguous and therefore there was excess coverage for a fuel spill that occurred after a tanker-truck overturned.
In Performance Trans. Inc. v. General Star Indem. Co., the First Circuit reversed the District Court’s grant of summary judgment in favor of General Star Indemnity Company. The District Court held that the excess policy General Star issued to Performance Trans. Inc. precluded coverage for a spill that resulted in the leaking of thousands of gallons of fuel. The District Court relied on the existence of a total pollution exclusion to bar coverage and held that the policy’s Special Hazards and Fluids Limitation Endorsement could not create an ambiguity that would afford coverage.
Reprinted courtesy of
Syed S. Ahmad, Hunton Andrews Kurth and
Adriana A. Perez, Hunton Andrews Kurth
Mr. Ahmad may be contacted at sahmad@HuntonAK.com
Ms. Perez may be contacted at pereza@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
Checking the Status of your Contractor License During Contract Work is a Necessity: The Expanded “Substantial Compliance” under B&P 7031 is Here
June 05, 2017 —
Ivo G. Daniele – Newmeyer & Dillion LLP News AlertIt is paramount that a contractor diligently maintains its license prior to and during the performance of any contract work. Failure to do so could result in barring a contractor from receiving payment and/or disgorgement of profits received under the construction contract.
California Business and Professions Code section 7031 is part of the Contractors State License Law (Business & Prof. section 700 et seq.), and is both feared and loathed by all contractors performing work in the state of California. This draconian statute is known as the “Shield” and was enacted over 70 years ago for the singular purpose to bar all actions by contractors seeking compensation for unlicensed contract work – even precluding a contractor from enforcing his or her mechanic’s lien rights. However, a contractor could potentially avoid the harshness of B&P 7031 by establishing that he or she had substantially complied with the appropriate licensing requirements.
SUBSTANTIAL COMPLIANCE WITH LICENSE REQUIREMENTS PRIOR TO 2017 AMENDMENT
The substantial compliance exception is found in section B&P 7031(e), which authorizes the court to determine that there has been substantial compliance with licensure requirements, if the contractor has shown at an evidentiary hearing that he or she engaged in the unlicensed work had:
- Been duly licensed as a contractor in this state prior to the performance of the act or contract;
- Acted reasonably and in good faith to maintain the license;
- Did not know or reasonably should not have known that he or she was not licensed when he or she performed the work; and
- Acted promptly and in good faith to reinstate the license once it learned the license had lapsed.
Although not impossible, satisfying all four requirements of the exception was challenging for the contractor, specifically, requirement # (3) – the lack of knowledge that he or she was unlicensed during performance of work.
SUBSTANTIAL COMPLIANCE POST 2017
Fortunately, Governor Brown heard the collective cry for relief and signed Assembly Bill 1793 (“AB 1793”) into law. The new bill revises the criteria for the court to determine if a contractor is in substantial compliance with the licensing requirements by deleting requirement # (3) in its entirety and modestly amending requirement # (4) to require the contractor to act promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.
As a result, the substantial compliance exception under B&P 7031(e) reads as follows:
(e) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor
(1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.
This new legislation has tempered the burden of proof born by the contractor in establishing substantial compliance, although be it minor in its modification, the fact of the matter remains the same – be diligent in maintaining your license during all phases of contract work.
Ivo Daniele is a seasoned associate in the Walnut Creek office focusing his practice on commercial transactions and business and construction litigation. For questions regarding California Business and Professions Code section 7031, please feel free to contact Ivo Daniele at (925) 988-3222 or ivo.daniele@ndlf.com.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
Read the court decisionRead the full story...Reprinted courtesy of
Court of Federal Claims: Upstream Hurricane Harvey Case Will Proceed to Trial
July 02, 2018 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog On May 24, the U.S. Court of Federal Claims decided one of what may be many cases involving the terrible flooding wrought by Hurricane Harvey in the Houston, TX region. The Court of Federal Claims has divided thousands of pending claims into “upstream” and “downstream” categories, depending on whether the flooded properties were located upstream or downstream of two U.S. Army Corps of Engineers (Corps) flood control reservoirs that were constructed in the 1940s and 1950s. The case is In re Upstream Addicks and Barker (Texas) Flood-Control Reservoirs; however, the Court of Federal Claims’ order in this case applies to “all upstream cases.”
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLPMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
