New York Appellate Court Applies Broad Duty to Defend to Property Damage Case
January 03, 2022 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn the recent case of New York Marine and Gen. Ins. Co. v. Eastman Cooke & Associates, 153 N.Y.S.3d 840, 841 (N.Y. App. Div. 1st Dept. 2021), New York’s first department affirmed a duty to defend under New York law. In the underlying action, the plaintiff alleged property damages due to prolonged construction work in a different unit of the subject property. The underlying plaintiff sued the owner of the subject property, which in turn sued Eastman Cooke, the general contractor at the premises. New York Marine denied coverage to Eastman Cooke, asserting that the underlying suit did not seek damages occurring during the New York Marine policy period, and commenced a declaratory judgment action.
The trial court held—and the First Department affirmed—that New York Marine has a duty to defend Eastman Cooke. Initially, the court found that the underlying suit alleged property damage as required for coverage, because there were allegations regarding loss of use of the property. The court also found that the underlying suit alleged damages occurring during the New York Marine policy period. Although the underlying complaint alleged that the underlying plaintiffs were reimbursed for damages occurring during the New York Marine policy period by another insurer, the court held that the evidence was that the payments only covered a certain part of the damages sought. Accordingly, because there was a reasonable possibility that some unreimbursed damages may fall within the New York Marine policy period.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Navigating the Hurdles of Florida Construction Defect Lawsuits
April 03, 2013 —
CDJ STAFFThe Florida law firm of Williams Law Association reminds readers that under the law, homeowners “cannot immediately file a lawsuit against their contractor if they subsequently discover construction defects.” The contractor must first have a chance to fix the defect. Further, there is a waiting period between informing the contractor and actually filing the lawsuit. For individual homeowners, that wait is 60 days, but for associations of more than 20 parcels, it’s 120 days.
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Traub Lieberman Team Obtains Summary Judgment in Favor of Client Under Florida’s Newly Implemented Summary Judgment Standard
August 23, 2021 —
Heather Fleming & Gregory H. Lercher - Traub LiebermanOn July 27, 2021, the Circuit Court of the Ninth Judicial Circuit in and for Osceola County, Florida granted summary judgment in favor of a client insurer defended by Traub Lieberman Partner Heather M. Fleming and Associate Gregory H. Lercher in connection with a first party property lawsuit arising from Hurricane Irma that involved multiple, comingled claims, in part resolved via prior appraisal.
As of May 1, 2021, Florida state courts have applied a new summary judgment standard after Florida’s longstanding rule was amended by the Supreme Court of Florida. The amendment aligns Florida’s standard with that of the federal courts and the supermajority of states that have already adopted the federal summary judgment standard codified in Rule 56 of Federal Rules of Civil Procedure. The Supreme Court of Florida’s stated goal in adopting the new standard across the Sunshine State was to improve the fairness and efficiency of Florida's civil justice system, to relieve parties from the expense and burdens of meritless litigation, and to save the work of juries for cases where there are real factual disputes that need resolution.
Reprinted courtesy of
Heather Fleming, Traub Lieberman and
Gregory H. Lercher, Traub Lieberman
Ms. Fleming may be contacted at hfleming@tlsslaw.com
Mr. Lercher may be contacted at glercher@tlsslaw.com
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WARN Act Exceptions in Response to COVID-19
April 13, 2020 —
Yvette Davis & Kyle R. DiNicola - Haight Brown & BonesteelCalifornia’s WARN Act requires employers of certain covered establishments to provide 60 days written notice of any mass layoff, relocation, or termination. This notice is required to be given to employees and the Employment Development Department. An employer’s failure to comply with this requirement can result in being held liable for back-pay and value of the cost of any benefits to which the affected employee(s) may have been entitled for up to a maximum of 60 days.
Due to the COVID-19 crisis and emergency circumstances in which many employers now find themselves, the Governor of California has issued Executive Order N-31-20, which temporarily suspends the 60-days advance notice requirement and the provisions that impose liability and penalties on an employer for the duration of the COVID-19 emergency.
Reprinted courtesy of
Yvette Davis, Haight Brown & Bonesteel and
Kyle R. DiNicola, Haight Brown & Bonesteel
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. DiNicola may be contacted at kdinicola@hbblaw.com
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Virginia Allows Condominium Association’s Insurer to Subrogate Against a Condominium Tenant
August 10, 2020 —
Gus Sara - The Subrogation StrategistIn Erie Insurance Exchange v. Alba, Rec. No. 190389, 2020 Va. LEXIS 53, the Supreme Court of Virginia considered whether the trial court erred in finding that a condominium association’s property insurance provider waived its right of subrogation against a tenant of an individual unit owner. The Supreme Court reversed the lower court’s decision, holding that the insurance policy only named unit owners as additional insureds, not tenants, and thus the subrogation waiver in the insurance policy did not apply to tenants. The court also found that the condominium association’s governing documents provided no protections to the unit owner’s tenant because the tenant was not a party to those documents. This case establishes that, in Virginia, a condominium association’s insurance carrier can subrogate against a unit owner’s tenant where the tenant is not identified as an additional insured on the policy.
The Alba case involved a fire at a condominium building originating in a unit occupied by Naomi Alba (Alba), who leased the condominium under a rental agreement with the unit owner, John Sailsman (Sailsman). The agreement explicitly held Alba responsible for her conduct and the conduct of her guests. An addendum to the lease stated that Sailsman’s property insurance only applied to the “dwelling itself” and that Alba was required to purchase renters insurance to protect her personal property. Along with the rental agreement, Alba received the condominium association’s Rules & Regulations, Declarations and Bylaws.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Remote Trials Can Control Prejudgment Risk
September 07, 2020 —
Robert G. Devine, Victor J. Zarrilli & Kimberly M. Collins - White and Williams LLPWhile courts across the country are largely unavailable to litigants demanding a jury trial, pre-judgment interest rules present an increasing penalty risk to a defendant wanting its day in court and may not always make a plaintiff whole. The COVID-19 pandemic has altered the manner in which people and industries operate across the board. In light of the need to maintain social distancing whenever possible, the use of technology to replace in-person appearances is becoming more commonplace. As more attorneys become comfortable with the remote platform, the willingness to consider a remote trial grows.
With in-person jury trials suspended until further notice, it is important for attorneys and parties to consider the attendant consequences of the indefinite delay in waiting for a traditional jury trial. Aside from general inconvenience, continued delays may have a substantial financial impact, particularly with regard to the accumulation of pre-judgment interest.
Reprinted courtesy of White and Williams LLP attorneys
Robert G. Devine,
Victor J. Zarrilli and
Kimberly M. Collins
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Zarrilli may be contacted at zarrilliv@whiteandwilliams.com
Ms. Collins may be contacted at collinsk@whiteandwilliams.com
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Developer Sues TVA After It Halts Nuke Site Sale
December 19, 2018 —
Mary B. Powers - Engineering News-RecordThe multibillion-dollar completion of a nuclear unit at the Tennessee Valley Authority’s unfinished 1,260-MW Bellefonte plant in Alabama is in limbo after the federal power producer refused to complete its sale to Nuclear Development LLC, which has since filed a breach of contract complaint in federal district court.
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Mary B. Powers, ENRENR may be contacted at
ENR.com@bnpmedia.com
Is There Direct Physical Loss Under A Property Policy When COVID-19 is Present?
April 06, 2020 —
Tred R. Eyerly - Insurance Law HawaiiMost property policies provide coverage for property damage only when there is "direct physical loss" to covered property. Early indications are that COVID-19 remains on surfaces. The duration can last from a few hours to three weeks, depending on the type of surface material. If an employee is infected and the store or restaurant must closed because the virus may rest on surfaces within the building, is there direct physical loss, even though the building structure itself is unharmed?
To answer this question, cases from jurisdictions outside Hawaii may provide guidance. In a case from Louisiana, the homeowner had to move out of her home when excessive levels of organic lead were discovered in the kitchen, living room, master bedroom, and attic. Widder v. La. Citizens Prop. Ins. Corp., 82 So. 3d 294 (La. Ct. App. 2011). The insurer denied coverage because there was no direct physical loss. The trial court agreed; since the home was still intact, no direct physical loss had occurred, so there was no coverage under the policy. The appellate court reversed. It compared the presence of inorganic lead in the home to cases that found a direct physical loss from the existence of Chinese drywall, from which gaseous fumes were released, rendering the home unusable or uninhabitable. Physical damage was not necessary.
What if smoke from a nearby wildfire fills an outdoor theater, forcing cancellation of performances and loss of business income? This was the situation in Oregon Shakespeare Festival Ass'n v. Great Am. Inc. Co., 2016 U.S. DIst. LEXIS 74450 (D. Ore. Jun 7, 2016). Wildfires in the area caused smoke, soot, and ash to accumulate on the surface of seats and concrete ground of the open-air theater. The air quality was poor, but no federal, state or local agency ordered cancellation of the performances. Further, the theater did not suffer any permanent or structural damage to its property. The insurer denied coverage, contending that the loss or damage must be structural to the building itself. After all, the smoke in the air at the theater did not require any repairs to the structure of the property. The court disagreed. The theater sustained "physical loss or damage to property" when the wildfire smoke infiltrated the theater and rendered it unusable for its intended purpose. The decision in Oregon Shakespeare Festival was eventually vacated by a joint stipulation of the parties. Oregon Shakespeare Festival Ass'n v. Great Am. Ins.Co., 2017 U.S. Dist. LEXIS 33208 (D. Ore. March 6, 2017), but the reasoning is still sound.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
