Accident/Occurrence Requirement Does not Preclude Coverage for Vicarious Liability or Negligent Supervision
June 06, 2018 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel, LLPIn Liberty Surplus Ins. Corp. v. Ledesma & Meyer Construction Co., Inc. (No. S236765, filed 6/4/18) (L&M), the California Supreme Court ruled that the liability insurance requirement that injury be caused by an “occurrence,” defined as an “accident,” does not preclude coverage of an employer’s independent tort liability for injury deliberately caused by its employee.
In L&M, Liberty insured a construction company that contracted to manage a construction project at a middle school in San Bernardino, California. A 13-year-old student subsequently sued the company in state court, alleging that she had been sexually molested by a company employee, Hecht. Among others, she alleged a cause of action for negligent hiring, retention and supervision of the employee. The construction company tendered to Liberty, which defended the employer under a reservation of rights while seeking declaratory relief in federal court. The district court granted summary judgment for Liberty, ruling that the injury was not caused by an “occurrence.” On appeal, the 9th Circuit Court of Appeals certified the question to the California Supreme Court as a matter of state law.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Las Vegas Harmon Hotel to be Demolished without Opening
May 22, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Architectural Record, the Harmon Hotel, part of the CityCenter hotel-casino-entertainment complex on the Las Vegas Strip in Nevada, “is being razed without ever opening.” MGM Resorts International will be demolishing “the unfinished 27-floor, oval-shaped tower following a protracted legal battle with its contractor, Tutor Perini Corp., over building defects.”
Demolition is expected to cost $11.5 million, while the “incomplete construction” had cost $279 million. Problems for the hotel began after the discovery “that reinforcing steel was improperly installed on 15 building floors during construction.” Architectural Record reported that a third-party inspector “had falsified 62 daily reports between March and July of 2008 stating that things were okay when they were not. The findings prompted a temporary project shut-down and eventual building redesign.”
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A Retrospective As-Built Schedule Analysis Can Be Used to Support Delay
May 23, 2022 —
David Adelstein - Florida Construction Legal UpdatesDelay claims are part of construction. There should be no surprise why. Time is money. A delay claim should be accompanied by expert opinions that bolster evidence that gets introduced. The party against whom the delay claim is made will also have an expert – a rebuttal expert. Not surprisingly, each of the experts will rely on a different critical path as to relates to the same project. The party claiming delay will rely on a critical path that shows the actions of the other party impacted their critical path and proximately caused the delay. This will be refuted by the opposing expert that will challenge the critical path and the actions claimed had no impact on the critical path (i.e., did not proximately cause the delay). Quintessential finger pointing!
This was the situation in CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022), where the government terminated the contractor for convenience and the contractor claimed equitable adjustments for, among other things, delay. The contractor’s expert relied on an as-built critical path analysis by “retrospectively creating updates to insert between the contemporaneous updates.” Id., supra, n.3. The government’s expert did not do a retrospective as-built analysis and relied on only contemporaneous schedule updates. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Unravel the Facts Before Asserting FDUTPA and Tortious Interference Claims
September 05, 2022 —
David Adelstein - Florida Construction Legal UpdatesCMR Construction and Roofing, LLC v. UCMS, LLC, 2022 WL 3012298 (11th Cir. 2022) is an interesting opinion where a contractor asserted a Florida’s Deceptive and Unfair Trade Practices Act (known by its acronym “FDUTPA”) claim and tortious interference claims (with a contract and with an advantageous business relationship) against another contractor, i.e., a competitor, that were dismissed from the get-go. It is an opinion worthy of interest based on the claims asserted against a competitor. Throwing around FDUTPA and tortious interference may sound good from an intimidation standpoint, but pleading and then proving these claims are a lot different than loosely throwing around these claims. Before filing a lawsuit for FDUTPA and tortious interference, spend time unraveling the facts and the chronology. Do not rely on conclusory allegations simply to check the box regarding required elements to plead while ignoring the actual facts that support the allegations. These are fact-based claims and it is imperative the facts are fully known from on the onset so that they can be strategically pled and pursued.
In this matter, a contractor, the plaintiff, was hired by a condominium association around April 2018 to repair damage caused by a hurricane which included roofing work. The association was going to have its insurer pay its contractor. In May 2020, the association hired a new contractor to perform the same work (the “new contractor”). The association then directed the plaintiff to cease work since it hired the new contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Absence of Property Damage During Policy Period Equates to No Coverage
April 01, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Montana Supreme Court determined there was no coverage for the insured due to a lack of property damage during the policy period. Truck Ins. Exchange v. O'Mailia, 2015 Mont. LEXIS 54 (Mont. Feb. 17, 2015).
The insured plumbing company, Lolo Plumbing & Heating, installed a water heater at Famous Dave's restaurant. At the time of installation, the insured had a CGL policy with Truck. The policy provided coverage from July 10, 2006 to November 29, 2009.
On March 12, 2010, three years after the water heater was installed, a burning smaell was detected in the restaurant's mechanical room. The fire department turned off the water heater and asked that a plumber look at it. Diamond Plumbing & Heating was called and replaced the combustion air fan assembly, but did not further examine the water heater.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Ahlers Cressman & Sleight PLLC Recognized Among The Top 50 Construction Law Firms TM of 2024 by Construction Executive
July 15, 2024 —
Ahlers Cressman & Sleight PLLCACS is proud to announce that it has once again been ranked among The Top 50 Construction Law Firms in the Construction Executive 2023 rankings.
Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry, and its articles are designed to help owners and top managers run a more profitable and productive construction business.
Construction Executive established the rankings by asking over 600 hundred U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2023 revenues from the firm’s construction practice, the number of attorneys in the firm’s construction practice, percentage of the firm’s total revenues derived from its construction practice, the number of states in which the firm is licensed to practice, the year in which the construction practice was established, and the number of construction industry clients served during the fiscal year 2023.
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Ahlers Cressman & Sleight PLLC
Bailout for an Improperly Drafted Indemnification Provision
February 11, 2019 —
David Adelstein - Florida Construction Legal UpdatesA recent opinion came out that held that even though an indemnification provision in a subcontract was unenforceable per Florida Statute s. 725.06, the unenforceable portion is merely severed out of the indemnification clause leaving the rest of the clause intact. In essence, an otherwise invalid indemnification clause is bailed out by this ruling (which does not even discuss whether this subcontract had a severability provision that states that if any portion of any provision in the subcontract is invalid, such invalid portion shall be severed and the remaining portion of the provision shall remain in full force and effect).
This opinion arose from a construction defect case, CB Contractxors, LLC v. Allens Steel Products, Inc.,43 Fla.L.Weekly D2773a (Fla. 5thDCA 2018), where the general contractor, sued by an association, flowed down damages to subcontractors based on the contractual indemnification provision in the subcontracts. Subcontractors moved to dismiss the contractual indemnification claim because it was not compliant with Florida Statute s. 725.06. The indemnification provision required the subcontractors to indemnify the general contractor even for the general contractors own partial negligence, but failed to specify a monetary limitation on the extent of the indemnification as required by Florida Statute s. 725.06. (The indemnification clause in the subcontract was the standard intermediate form of indemnification that required the subcontractor to indemnify the general contractor for claims regardless of whether the claims were caused in part by the general contractor.)
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
July Sees Big Drop in Home Sales
August 27, 2013 —
CDJ STAFFThe Commerce Department reported a 13.9 percent drop in sale of new homes for July. Over the course of the last 12 months, home sales had risen 7 percent. According to economists, an annual rate of about 700,000 homes would be a sign of a healthy economy. The July sales fell well short of that, at an annual rate of 394,000. New home starts were also down.
Experts attribute the decline in sales and building to increases in mortgage rates, even though the rates remain historically low. Despite the slump in home sales in July, builder confidence rose to a high in August.
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