Damages in First Trial Establishing Liability of Tortfeasor Binding in Bad Faith Trial Against Insurer
October 22, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court considered whether, in a second trial for bad faith, the insured was required to again prove her damages, instead of relying on the jury's damage determination in the first trial where the tortfeasor's liability was established. Geico Gen. Ins. Co. v. Paton, 2014 Fla. Ct. App. LEXIS 14362 (Fla. Ct. App. Sept. 17, 2014).
The insured was injured in a car accident caused by the negligence of the underinsured driver. Geico paid the insured the $10,000 policy limit under her policy. The insured's mother also had uninsured/underinsured coverage with Geico, with policy limits of $100,000. When the insured demanded the $100,000 policy limits from her mother's policy, Geico offered $1,000. Later, Geico offered $5,000, but returned to the $1,000 offer after the insured refused to settle. When the insured reduced her demand to $22,500, Geico did not respond.
The insured sued and the case went to trial. The jury awarded $10,000 for past pain and suffering, and $350,000 for future pain and suffering. The verdict set the insured's total damages at $469,247. Geico did not file a motion for new trial nor did it appeal. Judgment was entered in favor of the insured, but was limited to the $100,000 UM policy limits.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
OSHA Updates: You May Be Affected
July 19, 2017 —
Louis “Dutch” Schotemeyer – Newmeyer & Dillion LLPGovernor Brown Signs Legislation Increasing Cal/OSHA Fines
Cal/OSHA has increased its maximum fines for the first time in more than twenty years pursuant to legislation recently signed into law by Governor Brown. The changes nearly double the maximum fines and have brought California in line with the Federal standard. The increase in fines will not be isolated to this year, as fines will now be automatically increased annually based on the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U). Additionally, any employer who repeatedly violates any occupational safety or health standard, order, or special order, or Section 25910 of the Health and Safety Code, can no longer receive any adjustment of a penalty assessed based on the good faith or the history of previous violations. Such adjustments were previously commonplace.
Specific increases are listed below (all increases refer to maximum fines, Cal/OSHA has discretion as to the amount of the fine when issuing the citation):
- Section 6427 of the Labor Code was amended to increase fines, not of a serious nature, from $7,000 for each violation to $12,471 for each violation.
- Section 6429 of the Labor Code has increased fines for repeat violations; raising the maximum fine from $70,000 to $124,709 for each violation. Additionally, Section 6429 also raised the minimum fine for repeat violations from $5,000 to $8,908.
- Section 6431 raised fines for posting or recordkeeping violations from $7,000 to $12,471 per violation.
Full text of the penalty section of the labor code may be found
here
California OSHA Emergency Action Plan elements revised; California now more consistent with Federal Standards
Revisions to General Safety Orders section 3220(b) became effective on June 5, 2017 and contain two minor changes for California employers with regards to Emergency Action Plans (EAP).
The first change requires that an employer’s EAP be more detailed in describing the type of evacuation that is to be performed, not just the route for an evacuation. The previous element of the EAP simply required that the plan contain, “[e]mergency escape procedures and emergency escape route assignments.” The current element of the EAP requires that, “[p]rocedures for emergency evacuation, including type of evacuation and exit route assignments,” be identified.
The second change clarifies the language surrounding employees performing rescue or medical duties. Previously the only requirement in the EAP regarding rescue and medical duties was for employees that performed rescue and medical duties. The current version requires that the EAP contain, “[p]rocedures to be followed by employees performing rescue or medical duties. The use of the word and created potential gaps in plans as it is likely that employees may not be performing both rescue and medical duties, instead performing just rescue or medical duties. Plans must now include procedures to be followed by employees who perform either rescue or medical duties.
It is recommended that your EAP be in writing and updated to comply with the revised General Safety Orders section 3220. The full text of General Safety Orders section 3320 can be seen
here. Please contact us if you would like further details regarding your Emergency Action Plan.
Deadline for Electronic Submission of OSHA 300 Log Records for Injuries and Illnesses Delayed
On May 12, 2016, the Federal Occupational Safety and Health Administration (OSHA) published a rule entitled “Improve Tracking of Workplace Injuries and Illnesses” which required certain employers subject to Federal OSHA regulations to submit the information from their completed 2016 Form 300A to OSHA via electronic submission no later than July 1, 2017. On June 28, 2017, OSHA, via a
Notice of Proposed Rule Making, has proposed a December 1, 2017 deadline for the electronic reporting; the electronic reporting system is scheduled to be available on August 1, 2017.
Per the California Department of Industrial Relations, California employers are not required to follow the new requirements and will not be required to do so until "substantially similar" regulations go through formal rulemaking, which would culminate in adoption by the Director of the Department of Industrial Relations and approval by the Office of Administrative Law.
Cal/OSHA drafted a proposed rulemaking package to conform to the revised federal OSHA regulations by amending the California Code of Regulations, title 8, sections 14300.35, 14300.36, and 14300.41; these are currently under review with the State.
It is currently unclear what, if any, impact the delay by OSHA will have on the proposed amendments to the California Code.
We will keep you posted as to the changes in California recordkeeping requirements. Please contact Louis “Dutch” Schotemeyer with any questions regarding Cal OSHA or your safety program. Dutch is located at Newmeyer & Dillion’s Newport Beach office and can be reached at dutch.schotemeyer@ndlf.com or by calling 949.271.7208.
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.
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The Relevance and Reasonableness of Destructive Testing
August 17, 2017 —
David Adelstein - Florida Construction Legal UpdatesDestructive testing is a routine investigatory procedure in construction defect disputes. The destructive testing is necessary to determine liability (causation), the extent of damage, and the repair protocol. Destructive testing is designed to answer numerous questions: Why did the building component fail? Was the building component constructed incorrectly? What is the magnitude of the damage caused by the failure? What specifically caused the damage? What is the most effective way to fix the failure and damage? There are different iterations to the same questions, but in many instances, destructive testing is necessary to answer these questions.
Claimants sometimes prohibit destructive testing. Of course, destructive testing is intrusive. In many instances, it is very intrusive. But, this testing is a necessary evil. Without this testing, how can a defendant truly analyze their potential exposure and culpability? They need to be in a position to prepare a defense and figure out their liability. This does not mean destructive testing is warranted in every single construction defect dispute. That is not the case. However, to say it is never warranted is irrational.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
End of an Era: Los Angeles County Superior Court Closes the Personal Injury Hub
October 24, 2022 —
Elizabeth A. Evans & Angela S. Haskins - Haight Brown & Bonesteel LLPOn September 21, 2022, the Los Angeles County Superior Court announced that it would start a gradual shutdown of the Personal Injury Hub, currently located at the Spring Street Courthouse. This closure will see the return of personal injury cases being venued in the district where they occurred.
The Personal Injury Hub was established in 2012 as a means of consolidating personal injury cases after several civil courtrooms around the County were closed due to significant budget cuts. It first began as two courtrooms in Stanley Mosk Superior Court, then moved to the Spring Street Courthouse and ballooned to six courtrooms, each handling a case load of reportedly over 9,000 cases at times. Case Management Conferences were abolished and the parties were largely left to their own devices to move cases along. At times, slow chaos ensued. With a new and increased budget, Los Angeles Superior Court has now decided that enough is enough.
Effective October 10, 2022, new personal injury cases will be filed and handled from start to finish in independent calendar courtrooms in the districts where the events giving rise to the claims occurred. Any cases properly filed in the Central District will continue to be heard in the Personal Injury Hub for now. A new Civil Case Cover Sheet Addendum that reflects this change will be available on the Los Angeles County Superior Court website for use as of October 10th.
Reprinted courtesy of
Elizabeth A. Evans, Haight Brown & Bonesteel LLP and
Angela S. Haskins, Haight Brown & Bonesteel LLP
Ms. Evans may be contacted at eevans@hbblaw.com
Ms. Haskins may be contacted at ahaskins@hbblaw.com
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New York Court Grants Insured's Motion to Dismiss Construction Defect Case and Awards Fees to Insured
February 05, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe New York Supreme Court granted the insured's motion to dismiss the insurer's complaint seeking relief on its duty to indemnity and awarded fees to the insured. Utica Mut. Ins. Co. v. Crystal Curtain Wall Sys. Corp., 2023 N.Y. Misc. LEXIS 22368 (N.Y. Sup. Ct. Nov. 27, 2023).
The case arose from a construction-related property damage action. Crystal entered a subcontract with the general contractor to design and install window and curtain systems in mixed residential and commercial buildings. When unit owners took possession, water infiltration during a rainstorm caused property damage and moldy conditions.
The unit owners sued asserting claims against Crystal for the cost of repair or replacement of the allegedly defective curtain wall, damage to unit owners' personal property, diminution in value of the units, and delay damages consisting of increasing interest and carrying costs.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer Doomed in Delaware by the Sutton Rule
September 12, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the defendants. As applied in Delaware, the Sutton Rule explains that landlords and tenants are co-insureds under the landlord’s fire insurance policy unless a tenant’s lease clearly expresses an intent to the contrary. If the Sutton Rule applies, the landlord’s insurer cannot pursue the tenant for the landlord’s damages by way of subrogation. Here, the Supreme Court affirmed the trial court’s decision that the Sutton Rule applied because the lease did not clearly express an intent to hold the tenants liable for the landlord’s damages.
In Thangavel, the plaintiff, Donegal Mutual Insurance Company (Insurer), provided property insurance to Seaford Apartment Ventures, LLC (Landlord) for a residential property in Delaware. Sathiyaselvam Thangavel and Sasikala Muthusamy (Tenants) leased an apartment (the Premises) from Landlord and signed a lease. Insurer alleged that Tenants hit a sprinkler head while flying a drone inside the Premises which caused water to spray from the damaged sprinkler head, resulting in property damage to the Premises. Landlord filed an insurance claim with Insurer, who paid Landlord $77,704.06 to repair the damage. Insurer then sought to recover the repair costs from Tenants via subrogation.
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Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
Housing Starts in U.S. Drop to Lowest Level in Three Months
February 23, 2016 —
Michelle Jamrisko – BloombergNew-home construction in the U.S. unexpectedly cooled in January, indicating there is a limit to how much gains in residential real estate will boost growth at the start of 2016.
Housing starts dropped 3.8 percent to a 1.1 million annualized rate, the weakest in three months, from a 1.14 million pace the prior month, a Commerce Department report showed Wednesday in Washington. The median forecast of 76 economists surveyed by Bloomberg was 1.17 million. Permits, a proxy for future construction, were little changed.
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Michelle Jamrisko, Bloomberg
A Proactive Approach to Construction Safety
February 20, 2023 —
The Hartford Staff - The Hartford InsightsThe number of injuries and illnesses in the construction industry is trending downward, but companies need to continue making worker safety a priority – especially as they address the ongoing labor shortage.
According to the most recent data from the U.S. Bureau of Labor Statistics, the incident rate of nonfatal injuries and illnesses in the construction industry was 2.5 per 100 full-time employees.1 The total number of cases of nonfatal injuries and illnesses in the industry was 174,100.2 These numbers are lower than the incident rates and total cases in 2019 and 2018.3, 4, 5, 6
Despite the declining trend of injuries, professionals at The Hartford believe construction firms need to keep worker safety at the forefront as they address the ongoing talent and
labor shortage in construction. Companies are getting creative to find workers. From recruiting veterans to working closely with trade schools, construction firms are trying to find skilled laborers to meet project deadlines.
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The Hartford Staff, The Hartford Insights
