Is Construction Defect Notice under Florida Repair Statute a Suit?
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFIn Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., “the United States District Court for the Southern District of Florida addressed what constitutes a ‘suit’ within the context of Florida’s right-to-repair procedure for construction defect disputes,” according to Keith Moskowitz, Michael Barnes, J. Stephen Berry, and Cynthia Liu of Dentons. The district court “held that a notice under Chapter 558 of the Florida statutes, the ‘notice and repair’ statute, ‘does not constitute a “civil proceeding”’ and thus ‘is not a “suit”’ triggering an insurer’s duty to defend under Altman’s Crum & Forster commercial general liability (CGL) policies.”
The article states that “[w]hether the 11th Circuit affirms the district court’s decision or not, its opinion will be important to insurers questioning when insurance coverage is triggered by an event other than a formal proceeding initiated in a court of law.”
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Building Amid the COVID Challenge
November 29, 2021 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogAt longtime client Clark Construction, Dave Beck took charge of risk management just weeks before the COVID-19 pandemic struck.
David Beck made a big career move last year—just how big, he soon learned. In January 2020, Beck became division president for risk management at Clark Construction Group, a major national builder based in Bethesda, Md., with more than 4,000 employees across the U.S. In business since 1906, Clark has grown from a small, local excavator into one of the country’s best-known providers of construction services.
Beck took up his position at Clark shortly before COVID-19 changed life for everyone. We recently reached out to him to learn how his role has evolved since then.
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Pillsbury's Construction & Real Estate Law Team
Texas Supreme Court to Review Eight-Corners Duty-to-Defend Rule
April 05, 2021 —
Jared De Jong - Payne & FearsThe Texas Supreme Court has accepted certified questions from the Fifth Circuit Court of Appeals to clarify Texas’ eight-corners rule for determining the existence of a duty to defend.
In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2021 WL 955155 (5th Cir. Mar. 12, 2021), certified question accepted (Mar. 19, 2021), the Fifth Circuit asked the Texas Supreme Court to provide guidance on Texas insurance law. In Bitco, the insured was sued for negligently drilling an irrigation well. The insured allegedly got a drilling bit stuck in a bore hole, refused to fix the issue, and eventually abandoned the well. The policy did not cover continuing property damage known to the insured before the policy incepted. The policy period ran from Oct. 6, 2015 to Oct. 6, 2016, and the parties stipulated the drill bit became stuck in November 2014.
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Jared De Jong, Payne & FearsMr. De Jong may be contacted at
jdj@paynefears.com
Unjust Enrichment and Express Contract Don’t Mix
August 23, 2021 —
Christopher G. Hill - Construction Law MusingsI am a huge fan of clearly written construction contracts. Virginia state and federal courts will interpret contract provisions as written and will seek to enforce all of those terms where possible. Where the contract is ambiguous, we construction attorneys make money and the courts are forced to make decisions that the parties may not like.
A recent case out of the Eastern District of Virginia federal court highlights the ways in which a clear contract affects the claims that can be brought and limits the scope of possible litigation. In First Call Environmental LLC v. Murphy Oil USA LLC, the Court looked at a relatively typical Owner, Contractor, Subcontractor set of agreements. In this matter, Murphy Oil entered a contract with National Rapid Response, Inc. (“NRR”) whereby NRR would provide emergency and environmental management and waste disposal services to Murphy Oil. NRR then subcontracted with the Plaintiff First Call to perform the services for Murphy Oil. First Call filed suit against Murphy Oil alleging two counts: breach of contract (based on a third-party beneficiary theory), and unjust enrichment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Triable Issue of Fact Exists as to Insurer’s Obligation to Provide Coverage Under Occurrence Policy
March 08, 2021 —
Valerie A. Moore & Kathleen E.M. Moriarty – Haight Brown & Bonesteel LLPIn Guastello v. AIG Specialty Ins. Co. (No. G057714. filed 2/19/21 ord. pub. 2/23/21), a California appeals court held that triable issues of material fact exist which precluded summary judgment for an insurer seeking to disclaim coverage on the basis that the “occurrence” pre-dated the policy period where a dispute exists as to the timing of the subject “occurrence.”
In Guastello, a subcontractor built retaining walls from 2003 to 2004 for a housing development in Dana Point, California. In 2010, one of these retaining walls collapsed causing damage to a residential lot owned by Thomas Guastello.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Kathleen E.M. Moriarty, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com
Ms. Moriarty may be contacted at kemoriarty@hbblaw.com
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Solutions To 4 Common Law Firm Diversity Challenges
April 27, 2020 —
Alexandra DeFelice - Payne & FearsMinority attorneys continue to depart law firms at a higher rate than those in the majority and continue to be substantially underrepresented at the partner level. With the continued demands of clients and other organizations to improve diversity, law firms need to embrace new and creative solutions.
To address the concern, the California Minority Counsel Program, or CMCP, held an interactive workshop in February for members to brainstorm and develop solutions to specific diversity challenges and share them with their peers. This was a rare occasion for attorneys to be able to discuss real issues they are facing in their firms and to develop a potential road map to success as opposed to listening to a panel discussion followed by the usual Q&A session.
Payne & Fears LLP is a member of CMCP, so our firm had the opportunity to participate in this workshop. Law firm leaders and HR professionals may want to pay particular attention to the suggestions outlined in this article as their firms strive to diversify. The topics can be uncomfortable, but if not addressed, the problem of underrepresentation will continue to spread. Many of these ideas do not cost much in the way of money, but they do require time and commitment to change.
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Alexandra DeFelice, Payne & FearsMs. DeFelice may be contacted at
adefelice@paynefears.com
Three's a Trend: Second, Fourth and Ninth Circuits Uphold Broad "Related Claims" Language
February 23, 2016 —
Greg Steinberg – White and Williams LLPThe hallmark of a claims-made insurance policy is that the policy only provides coverage for claims that are “first made” during the policy period. As noted by the Texas Supreme Court, “for the insurer, the inherent benefit of a claims-made policy is the insurer's ability to close its books on a policy at its expiration and thus to attain a level of predictability unattainable under standard occurrence policies.”[1]
To ensure this “level of predictability,” claims-made insurance policies contain provisions stating that all “Related Claims” will be treated as a single claim deemed first made at the time the earliest of such claims was made. The “Related Claims” provision is an issue that comes up time and again – claims can span years, especially in the context of regulatory investigations, which often culminate in enforcement proceedings and litigation. This inevitably leads to disputes regarding whether later claims can be related back to the earlier claim, an issue that becomes even thornier when different insurers participate on different policy years.
Over time, case law on “Related Claims” has been mixed and somewhat inconsistent, with each case tending to hinge on its own unique set of facts, making it difficult to identify a clear standard for determining whether claims are related. However, three recent decisions out of the Second, Fourth and Ninth Circuits show that courts are increasingly deferring to the plain language of the policy and applying these provisions broadly.
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Greg Steinberg, White and Williams LLPMr. Steinberg may be contacted at
steinbergg@whiteandwilliams.com
Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
August 10, 2021 —
Justin K. Fortescue - White and WilliamsThe selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust Financial Services, No. 21-cv-03573, 2021 U.S. Dist. LEXIS 129464 (N.D. Ca. July 12, 2021), the court provided answers on all three of these issues.
In Amtrust, the parties filed cross-motions to compel arbitration. Although both parties agreed the dispute was arbitrable, they disagreed about whether Public Risk Innovations, Solutions and Management’s (PRISM) arbitrator was qualified under the terms of the applicable contract. In seeking to have PRISM’s arbitrator disqualified, Amtrust argued that he: (1) was not a “current or former official of an insurance or reinsurance company”; and (2) was not “disinterested.” Amtrust also argued that because PRISM named an unqualified arbitrator (and presumably the time to appoint had passed), PRISM should be deemed to have failed to select an arbitrator as required by the contract and that Amtrust had the right to select a second arbitrator of its choice.
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Justin K. Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com