Leonard Fadeeff v. State Farm General Insurance Company
September 21, 2020 —
Michael Velladao - Lewis BrisboisIn Fadeeff v. State Farm Gen. Ins. Co., 50 Cal.App.5th 94 (May 22, 2020), the California Court of Appeal reversed the entry of summary judgment in favor of State Farm General Insurance Company (“State Farm”) in connection with a smoke and soot damage claim made by Leonard and Patricia Fadeeff (the “Fadeeffs”) for damage sustained by their home due to the 2015 Valley Fire. The parties’ dispute arose out of the Valley Fire, which took place in Lake County, California. The Fadeeffs’ home was located in Hidden Valley Lake.
The Fadeeffs submitted a claim to State Farm under their homeowners policy. Initially, after an adjuster inspected the home and noted that it was “well maintained” with no apparent maintenance issues, State Farm made a series of payments and arranged for ServPro to clean the smoke and soot damage. Subsequently, the Fadeeffs retained an independent adjuster and submitted a supplemental claim in the amount of $75,000. State Farm retained a different unlicensed adjuster to investigate the claim and retained expert, Forensic Analytical Consulting Services (FACS) to inspect the Fadeeffs’ home, and another company referred to as HVACi, to inspect the Fadeeffs’ HVAC system.
The independent adjuster used to investigate the Fadeeffs’ supplemental claim failed to follow company guidelines in connection with using experts, which required specific questions to be addressed by the expert. In addition, FACS only took surface samples of the walls in the Fadeeffs’ home. Ultimately, the reports prepared by FACS and HVACi concluded that no additional work was required to remediate the damage sustained by the Fadeeffs’ home. Thereafter, State Farm denied the Fadeeffs’ supplemental claim.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Erasing Any Doubt: Arizona FED Actions Do Not Accrue Until Formal Demand for Possession is Tendered
July 13, 2017 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogClearing up any lingering confusion, in Carrington Mortgage Services, LLC v. Woods, 767 Ariz. Adv. Rep. 4 (June 22, 2017), the Arizona Court of Appeals confirmed that residential forcible entry and detainer actions in Arizona accrue for statute of limitations purposes when a party entitled to possession makes a formal demand for return of possession not when the party could have made a demand for return of possession.
In Carrington, the borrowers (the Woodses) remained in property that they had acquired in 2008 but then lost to foreclosure several years later. The original lender obtained title to the property at a trustee’s sale on February 16, 2010, but did not take any action to remove the Woodses at that time. Title to the property was then transferred through a series of transactions over the next six years. Ultimately, Carrington acquired the title and, in 2016, sent a formal “Notice to Vacate” the premises to the Woodses. After the Woodses failed to timely vacate pursuant to the demand, Carrington initiated an FED action to evict them from the property.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
Construction May Begin with Documents, but It Shouldn’t End That Way
March 02, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Rob Mathewson. In his role as CEO, Rob handles strategy and partnerships for Geedra in addition to overseeing technology architecture and implementation. He has spent twenty years in sales and marketing management roles with experience in industrial, consumer and construction markets. Rob believes the construction industry is ripe for innovation, based on its massive size, yet low productivity. Even with such inefficiencies, a building still rises from the ground. Rob’s goal with Geedra is to leverage technology to increase transparency and communication so that projects can be completed with less risk, effort and cost. Prior to founding Geedra, Rob was the Chief Marketing Officer for Construction Documentation Services, where he was responsible for sales, marketing and business development. He spent 15 years in the chemical distribution business, including eleven years as the Northwest Branch Manager of a $50 million distributor. Rob was the founder and CEO for On The Spot Games, a board game startup. He is currently in the midst of a streak of over 2,900 consecutive days without a bad hair day.
An avid mentor himself, his own business inspirations come from problem solvers like Dean Kamon, innovative communicators like Seth Godin, fierce competitors like Lance Armstrong and global gurus like Thomas Friedman. When he’s not creating innovations in the construction industry, his passions include bike riding, throwing the ball around with his kids, and cooking. He is an accomplished public speaker and is a past president of Emerald City Toastmasters. Rob holds a B.S. in Manufacturing Engineering from Boston University and a MBA from Seattle University.
Construction folks are a focused bunch. Once a contractor signs a deal for a project, its team will immediately get to work generating and then executing a construction document set. For the entire duration of the schedule to follow, the construction team eats, sleeps and dreams about those documents. Their monomaniacal efforts continue until a building rises up from a patch of dirt in a matter of months.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Washington Court Denies Subcontractor’s Claim Based on Contractual Change and Notice Provisions
January 29, 2024 —
Wendy Rosenstein - Ahlers Cressman & Sleight PLLCThe recent unpublished case, Cascade Civil Construction, LLC v. Jackson Dean Construction, Inc., et al.,[1] provides a legal justification for contractors to require a directive or change order in advance of performing changed work—thereby preventing the party who requested the changed work from later arguing that notice provisions were not complied with.
In the case, Jackson Dean, the prime contractor, hired Cascade to perform excavation work on a project to build a new Costco Corporate headquarters. Due to the Covid-19 pandemic and other issues, Jackson Dean directed resequencing, which required Cascade to perform excavation concurrent to dewatering. Jackson Dean also required deeper-than-planned excavation under one of the buildings.
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Wendy Rosenstein, Ahlers Cressman & Sleight PLLCMs. Rosenstein may be contacted at
wendy.rosenstein@acslawyers.com
Hawaiian Electric Finalizes $2 Billion Maui Fire Settlement
November 18, 2024 —
Mark Chediak - BloombergHawaiian Electric Industries formalized a $2 billion agreement to settle damage claims from a wildfire that razed the historic town of Lahaina and killed more than 100 people.
The utility-owner had reached a tentative agreement in August in which it, along with other defendants including the state of Hawaii, Maui County and landowners, would pay $4 billion to resolve hundreds of lawsuits stemming from last year’s wildfire, according to a filing Tuesday.
The settlements don’t resolve claims with insurers that are part of separate lawsuits.
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Mark Chediak, Bloomberg
Condo Buyers Seek to Void Sale over Construction Defect Lawsuit
November 07, 2012 —
CDJ STAFFA Michigan couple seeks to void their purchase of a condo in Texas after discovering that the complex was undergoing a construction defect lawsuit. ABQ Journal reports that Charles M. Lea and Olga Y. Ziabrikova said that they would not have purchased the condo if they had known the association was already alleging construction defects. The condo association discovered the defects “by at least late 2010,” according to the suit. The couple bought their condo in August 2011 and heard of the defects only in March 2012.
The couple notes that no one involved with the sale informed them of the construction defect complaints. The community association’s lawsuit states that problems have lead to $2.5 million in damages. The developer, Vegas Verde Condo Partners, have filed a general denial of the construction problems.
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Florida Adopts Daubert Standard for Expert Testimony
October 07, 2019 —
Michael L. DeBona - The Subrogation StrategistSeven months ago, the Florida Supreme Court declined to adopt Daubert as the standard for admitting expert testimony in Florida state courts. In DeLisle v. Crane Co., 258 So. 3d 1219 (2018), the court reaffirmed that “Frye, not Daubert, is the appropriate test in Florida.” On May 23, 2019, however, Florida’s high court did an about-face. In In Re: Amendment to the Florida Evidence Code, No. SC19-107, the Florida Supreme Court overruled its decision in DeLisle and declared that Florida will now apply the Daubert standard to determine whether scientific evidence is admissible.
The Daubert standard comes from the case of Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993), which held that the longstanding Frye test[1] for admitting expert testimony was superseded by Rule 702 of the Federal Rules of Evidence. Daubert instructed that federal judges should act as “gatekeepers” to ensure expert testimony is rooted in scientifically valid principles and that those principles are properly applied to the facts at issue. In determining whether scientific evidence should be admitted, Daubert sets forth several factors to consider: the testability of the theory or technique; the peer review and publication of the theory or technique; the error rate for the technique; the standards controlling the technique’s operation; and the general acceptance of the theory or technique.[2] The Daubert standard is generally considered a more onerous test than Frye, precluding expert testimony that might otherwise go to the jury under Frye.[3] Whereas Frye is a single factor test that applies only to new or novel science, Daubert is a multifactor test that applies to all expert testimony.
Since Daubert, a growing number of states have moved away from the Frye test in favor of the Daubert standard; it is now followed by a majority of jurisdictions in the country. In 2013, the Florida State legislature attempted to move Florida in this direction by amending the Florida Evidence Code to codify the Daubert standard. But because the Florida Supreme Court is vested with the power to make procedural rules and it was unclear whether the Daubert standard was a procedural or substantive rule, it was uncertain whether the 2013 Daubert amendments were controlling law. Then in 2017, in In Re: Amendment to the Florida Evidence Code, No. SC16-181, the Florida Supreme Court expressly declined adopting the Daubert amendments to the extent they were procedural. This decision signaled that, if faced with the Daubert standard on appeal from a litigated case, the Florida Supreme Court would reaffirm that Frye – not Daubert – controlled the admissibility of expert testimony in Florida state courts.
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Michael L. DeBona, White and Williams LLPMr. DeBona may be contacted at
debonam@whiteandwilliams.com
Should a Subcontractor provide bonds to a GC who is not himself bonded? (Bonding Agent Perspective)
May 03, 2017 —
Christopher G. Hill - Construction Law MusingsGuest Post Friday is back, and for this week, Construction Law Musings welcomes Steve Moore. Steve has been the Construction & Surety Manager for Towne Insurance Agency-Invincia, in Chesterfield, VA since 2010. Steve’s experience in the Virginia surety bonding marketplace started in 1985 with USF&G. His underwriting travels took him from USF&G to starting National Grange Mutual’s mid-Atlantic bond department over Virginia, Maryland, Delaware, North & South Carolina, to being Reliance Surety’s “Firemark” bond manager in Virginia. Reliance was purchased by Travelers, where Steve continued to grow the surety book of business and build expertise and relationships. Experience with Travelers and Zurich had Steve handling surety bonds for some of Virginia’s largest and best-of-class contractors. Recently, he was contracted by the Commonwealth’s Attorney’s office to serve as a contract surety expert witness on behalf of the state. He is a 1985 graduate of Virginia Tech with double-major B.S. degrees in Finance and Marketing.
Today, Steve has business and relationships with Travelers, The Hartford, Westfield, CNA, CBIC, Selective, Liberty Mutual, Ohio Casualty, Cincinnati, and many other companies. Steve’s strong foundation of insurance knowledge and in bonding principles and practices allow him to serve as a great resource for his clients.
An old Aesop fable comes to mind when I am asked whether a Sub should bond to an unbonded GC:
"A woodsman entered the forest and asked the trees to give him a handle made of the best wood. After giving the woodsman a stave of hickory, the forest watched the woodsman fashion an axe onto the handle. In a flash, the woodsman began to chop down the various oaks and maples in the forest. The oak then said to a pine, “It serves us right, since we gave our adversary the very thing that contributes to our doom…"
When a subcontractor client of mine asks about bonding to an un-bonded general contractor, a number of questions immediately come to mind. Why isn’t the GC bonded? What is the existing relationship between the GC and Sub? How well is the job financed? While wanting to help my subcontractor procure work, and surely enjoying the commissions from writing a bond, I also want to help my sub client manage unforeseen risk. What are the risks to a sub, when posting a bond to an unbonded GC?
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
