2016 Hawaii Legislature Enacts Five Insurance-Related Bills
May 12, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe 2016 Hawaii legislative session passed five insurance-related bills. Bills that have been enacted are the following:
HB 260 - The bill establishes motor vehicle insurance requirements for transportation network companies and drivers that will take effect on September 1, 2016. The Insurance Commissioner is directed to examine the effects of this measure on personal motor vehicle insurance policy rates in the State and submit an annual report to the Legislature. The bill will sunset on September 1, 2021. The measure has been transmitted to the Governor for signature.
HB 1705 - Electronic insurance cards, in addition to paper cards, are permitted by the bill. The card serves as proof of insurance for motor vehicles and is to be carried in the vehicle at all times. The legislation has been forwarded to the Governor for signature.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention
March 22, 2018 —
Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law BlogIt is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract.
When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800
et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.)
Reprinted courtesy of
Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and
Joy Siu, Sheppard, Mullin, Richter & Hampton LLP
Ms. Contreras may be contacted at econtreras@sheppardmullin.com
Ms. Siu may be contacted at jsiu@sheppardmullin.com
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Insurance Law Alert: Ambiguous Producer Agreement Makes Agent-Broker Status a Jury Question
September 10, 2014 —
Valerie A. Moore & Christopher Kendrick - Haight Brown & Bonesteel LLPIn Douglas v. Fidelity National Ins. (No. A137645; filed 8/29/14), a California appeals court held that it was a jury question whether a retail insurance service with limited binding authority should be deemed a broker or an agent for the purpose of determining if application misrepresentations would void coverage.
In Douglas, the homeowners needed insurance for a house they had used as a group home. They sought coverage from Cost-U-Less, which provided personal lines insurance from, among others, Fidelity National Insurance Company. According to the couple’s wife, she went to a Cost-U-Less office where she answered application questions from a person on the telephone, who was later identified as an employee of another company, InsZone.
InsZone had a producer contract with Fidelity. In practice, InsZone would be contacted by Cost-U-Less via telephone, at which point an InsZone employee would verbally solicit information from the client, with the information being entered into a computer by the InsZone employee and then transmitted electronically to Fidelity.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Five "Boilerplate" Terms to Negotiate in Your Next Subcontract
November 08, 2017 —
James R. Lynch - Ahlers & Cressman PLLCWhether you negotiate your own subcontracts or rely on your lawyer to do the heavy lifting at contract time, a savvy subcontractor should understand the basic purpose of common subcontract provisions, and be prepared to negotiate for fair and commercially reasonable terms. While most sophisticated subcontractors are skilled at negotiating the core terms of a subcontract—scope of work, price, and time—a few simple but less obvious tweaks to common subcontract terms and conditions can go a long way to protect a subcontractor from unfair results when a dispute arises.
From the desk of an experienced construction lawyer, below are the first three of the top five “boilerplate” provisions that subcontractors too often overlook during contract negotiations, along with tips on language to include and to avoid.
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James R. Lynch, Ahlers & Cressman PLLCMr. Lynch may be contacted at
jlynch@ac-lawyers.com
In Pricey California, Renters Near Respite From Landlord Gouging
September 16, 2019 —
Noah Buhayar - BloombergThe housing crisis engulfing California has state lawmakers racing to pass bills that would boost construction and stop corporate landlords from egregiously jacking up rents.
The bills overcame key hurdles last week and are due for final votes before the legislature adjourns on Sept. 13. The hardest-fought measure would set a higher standard for evictions and cap annual rent increases at 5% plus the rate of inflation. While that’s below the typical pace of lease hikes -- and the bill has many caveats for landlords -- it would still mark the state’s most significant new protection for tenants in decades.
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Noah Buhayar, Bloomberg
Foreign Entry into the United States Construction, Infrastructure and PPP Markets
September 11, 2023 —
Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogTwo major forces are combining to create extraordinary opportunities for infrastructure project participants in the United States. One is the long pent-up demand for overhaul of the nation’s roads, ports, dams and other civil works. The American Society of Civil Engineers (ASCE) routinely
awards “C-” or worse grades for the status and safety of the country’s backbone facilities. The lack of prior investment is apparent to anyone who uses public transit in the U.S. and then uses similar conveniences in major cities around the globe.
The other is the set of political incentives laid down by recent legislation including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which have authorized over $1 trillion for programs, many of which call for new and expanded facilities. According to the 2023 U.S. Construction Industry Databook Report, the national construction market is expected to record a compound annual growth rate of 5.2% during 2023 – 2027, and the aggregate output is expected to reach $1.7 trillion by 2027.
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Robert A. James, PillsburyMr. James may be contacted at
rob.james@pillsburylaw.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
War-Torn Ukraine Looks to Europe’s Green Plans for Reconstruction Ideas
July 18, 2022 —
Laura Millan Lombrana - BloombergUkrainian officials and architects are already thinking about how to rebuild cities torn by the Russian invasion in a way that is also respectful to the environment and helps fight climate change.
Mariupol city hall officials have started to assess the damage caused by Russian shelling as a first step to rebuild the city once the war is over, Deputy Mayor Sergei Orlov told an audience in Brussels at the New European Bauhaus festival, running through Saturday in several European cities. A coalition of Ukrainian and international experts in urban planning, heritage, energy and the circular economy are working toward the same goal.
“We will reconstruct Ukraine, we have to do that and we will do that,” European Commission President Ursula von der Leyen said at the festival. “It’s not only in our interest, it’s our moral obligation to do that — but when we are reconstructing Ukraine, let’s do it the right way, let’s do it in the spirit of the New European Bauhaus.”
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Laura Millan Lombrana, Bloomberg