Seattle Washington Building Expert Directory

Insurer's Bad Faith is Actionable Tort for Purposes of Choice of Law Analysis

January 08, 2024 — Janeen M. Thomas - Saxe Doernberger & Vita, P.C.
When an insurer handles a claim in violation of its duty to act in good faith, policyholders are often eager to sue the insurer for bad faith, seeking extra contractual damages. Before filing suit, however, it is critical that policyholders consider what state’s law applies to the bad faith claim. In the recent case of Scott Fetzer Co. v. Am. Home Assurance Co., Inc.1, the Ohio Supreme Court held that Restatement (Second), Conflict of Laws, § 145 (“Section 145"), governed the choice of law dispute, which meant that the insured would be able to obtain discovery of Travelers’ claims-handling procedures, guidelines, internal documents, and communications relating to the claim.2 The insured, Scott Fetzer, argued that the materials were discoverable because documents evidencing an insurer’s bad faith are not protected by attorney-client privilege in Ohio. In response, Travelers argued that the laws of either Indiana (the place where the parties entered into the insurance contract), or Michigan (the location of the insured risk) governed the discovery dispute because Restatement (Second) § 193 (“Section 193”) governs the choice of law analysis for claims that “arise out of insurance contracts.”3 The laws of either Indiana or Michigan were more favorable for Travelers because Indiana does not allow discovery of materials covered by attorney-client privilege, and Michigan does not even recognize a cause of action for bad faith. Read the court decision
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Reprinted courtesy of Janeen M. Thomas, Saxe Doernberger & Vita, P.C.
Mr. Thomas may be contacted at JThomas@sdvlaw.com

Biden’s Solar Plans Run Into a Chinese Wall

May 23, 2022 — Liam Denning - Bloomberg
A new and unexpected obstacle to President Joe Biden’s green ambitions has emerged: a tiny solar-power company based in San Jose. Auxin Solar Inc., which accounts for all of 2% of U.S. solar-module manufacturing, recently persuaded the Commerce Department to open a potentially devastating trade inquiry. After the U.S. imposed anti-dumping measures against Chinese solar-cell and module manufacturers just over a decade ago, alternative suppliers sprang up in South Korea and Southeast Asia. Auxin now contends that those other Asian suppliers are effectively used by Chinese companies to circumvent the anti-dumping measures. If Commerce ultimately agrees, then more than four-fifths of solar-module imports to the U.S. and half of all cells could suddenly be subject to steep tariffs, perhaps levied retroactively. The Solar Energy Industries Association warns of dire consequences for U.S. solar-power development — critical to Biden’s decarbonization targets — claiming that some suppliers are already backing away because of the risk. Heavyweight NextEra Energy Inc. warns that the investigation may delay 2.8 gigawatts of projects slated for this year. Timothy Fox of ClearView Energy Partners, a Washington-based analysis firm, says Commerce’s “structural” inclination toward protectionism may lead it to concur with Auxin. Read the court decision
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Reprinted courtesy of Liam Denning, Bloomberg

Rachel Reynolds Selected as Prime Member of ADTA

April 05, 2021 — Rachel Tallon Reynolds - Lewis Brisbois
Seattle Partner Rachel Tallon Reynolds was recently selected as a prime member of the Association of Defense Trial Attorneys (ADTA), an exclusive designation bestowed upon only one lawyer per one million population for each city, town, or municipality. The ADTA is a select group of diverse and experienced civil defense trial attorneys whose mission is to improve their practices through collegial relationships, educational programs, and business referral opportunities, while maintaining the highest standards of professionalism and ethics. ADTA members possess the highest skill level of civil defense trial attorneys. Moreover, because ADTA invites only one defense trial attorney to be its prime member per one million in population for each city, town, or municipality across the United States, the District of Columbia, Puerto Rico, Canada, France and The United Kingdom of Great Britain, as well as Northern Ireland and the Republic of Ireland, a prime membership represents the high regard in which that defense trial attorney is held by his or her peers in the defense trial bar of their city and state or province. Read the court decision
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Reprinted courtesy of Rachel Tallon Reynolds, Lewis Brisbois
Ms. Reynolds may be contacted at Rachel.Reynolds@lewisbrisbois.com

Meet D1's Neutrals Series: BILL FRANCZEK

August 14, 2023 — Jessica Knox - The Dispute Resolver
Company: Woods Rogers Vandeventer Black PLC Office Location: Norfolk, VA Email: Bill.Franczek@wrvblaw.com Website: https://wrvblaw.com/attorney_/william-e-franczek/ Law School: Syracuse University Law – JD, 1982, Magna Cum Laude, Order of the Coif Types of ADR services offered: Arbitration, Dispute Resolution Boards and Panels, Mediation and Neutral Evaluations Affiliated ADR organizations: American Arbitration Association (AAA); International Institute for Conflict Prevention and Resolution (CPR); London Court of International Arbitration (LCIA); International Court of Arbitration (ICC) Geographic area served: Nationwide Q: Describe the path you took to becoming an ADR neutral. A: I have an undergraduate degree in Civil Engineering and a Professional Engineering License in NY and VA. So, when I became a lawyer, I applied for membership in the AAA, and was accepted as a construction neutral in 1987. I now practice construction law and serve as an ADR Neutral in matters across the country and internationally. Read the court decision
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Reprinted courtesy of Jessica Knox, Stinson LLP
Ms. Knox may be contacted at jessica.knox@stinson.com

Illusory Insurance Coverage: Real or Unreal?

August 24, 2017 — David Adelstein - Florida Construction Legal Updates
In insurance coverage declaratory relief actions, there are times an insured will argue that the insurance policy coverage is illusory. Typically, an insured will raise this illusory argument if its insurer is denying coverage based on an exclusion or limitation in the policy. If a court agrees and deems the coverage illusory, the court will construe the policy to afford coverage to the insured. This is the obvious value of the argument: coverage! “A policy is illusory only if there is an internal contradiction that completely negates the coverage it expresses to provide.” The Warwick Corp. v. Turetsky, 42 Fla.L.Weekly D1797a (Fla. 4th DCA 2017). Thus, if a policy grants coverage in one section but then excludes the same coverage in another section, the coverage would be deemed illusory. Id. quoting Tire Kingdom, Inc. v. First S. Ins. Co., 573 So.2d 885, 887 (Fla. 3d DCA 1990). An illusory policy was found in the following examples: (a) a policy covered certain intentional torts but then excluded intended acts; (b) a policy covered advertising injury but elsewhere excluded advertising injury; and (c) a policy covered parasailing but excluded watercrafts. Id. (citations omitted). In all examples, coverage in the policy was completely swallowed up by an exclusion rendering the coverage illusory. Stated differently, coverage was completely contradicted by an exclusion in the policy rendering the policy absurd. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

California Supreme Court Rules Developers can be Required to Include Affordable Housing

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Los Angeles Times reported that in a unanimous decision, the California Supreme court justices declared that “cities and counties” can “require developers to sell some housing at below-market rates.” Chief Justice Tani Cantil-Sakauye wrote, “It will come as no surprise to anyone familiar with California’s current housing market that the significant problems arising from a scarcity of affordable housing have not been solved over the past three decades,” as quoted in the Los Angeles Times. Los Angeles Mayor Eric Garcetti applauded the decision: “This gives Los Angeles and other local governments another possible tool to use as we tackle our affordable housing crisis.” Read the court decision
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Reprinted courtesy of

Product Manufacturers Beware: You May Be Subject to Jurisdiction in Massachusetts

July 05, 2023 — Timothy Keough & Audrey Schoenike - White and Williams LLP
Say you are a Floridian product manufacturer that does business in Massachusetts and you receive a Complaint filed in Massachusetts that alleges your product injured a Nova Scotian resident in Nova Scotia. You know that the only time that product was in Massachusetts was during its transport up the eastern seaboard to its final destination at a retailer in Nova Scotia. Can you be hailed into a Massachusetts court for this accident? The answer is seemingly not so simple following the Supreme Judicial Court’s holding in Doucet v. FCA US LLC. On June 8th, the Massachusetts Supreme Judicial Court, in Doucet v. FCA US LLC, held that FCA US LLC is subject to jurisdiction in Massachusetts for a personal injury action arising out of a motor vehicle accident that occurred in New Hampshire. No. SJC-13354, slip. op. (Mass. June 8, 2023). The vehicle had been purchased in New Hampshire by a New Hampshire resident. The Court explained that federal due process does not require a causal connection between a company’s business dealings with the jurisdiction and the injury; instead, a mere relationship between the business dealings and the injury will suffice to establish jurisdiction. Because the vehicle at issue was first sold in Massachusetts and FCA US LLC had extensive business dealings unrelated to the vehicle in question in Massachusetts, the Court concluded that a strong enough relationship existed between FCA US LLC, Massachusetts, and the litigation for jurisdiction to exist. Reprinted courtesy of Timothy Keough, White and Williams LLP and Audrey Schoenike, White and Williams LLP Mr. Keough may be contacted at keought@whiteandwilliams.com Ms. Schoenike may be contacted at schoenikea@whiteandwilliams.com Read the court decision
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Arbitration Provisions Are Challenging To Circumvent

May 13, 2019 — David Adelstein - Florida Construction Legal Updates
Arbitration provisions are enforceable and they are becoming more challenging to circumvent, especially if one of the parties to the arbitration agreement wants to arbitrate a dispute versus litigate a dispute. Remember this when agreeing to an arbitration provision as the forum for dispute resolution in your contract. There is not a one-size-fits-all model when it comes to arbitration provisions and how they are drafted. But, there is a very strong public policy in favor of honoring a contractual arbitration provision because this is what the parties agreed to as the forum to resolve their disputes. By way of example, in Austin Commercial, L.P. v. L.M.C.C. Specialty Contractors, Inc., 44 Fla.L.Weekly D925a (Fla. 2d DCA 2019), a subcontractor and prime contactor entered into a consultant agreement that contained the following arbitration provision:

Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be subject to the dispute resolution procedures, if any, set out in the Prime Contract between [Prime Contractor] and the [Owner]. Should the Prime Contract contain no specific requirement for the resolution of disputes or should the [Owner] not be involved in the dispute, any such controversy or claim shall be resolved by arbitration pursuant to the Construction Industry Rules of the American Arbitration Association then prevailing, and judgment upon the award by the Arbitrator(s) shall be entered in any Court having jurisdiction thereof.

The prime contract between the owner and prime contractor did not require arbitration. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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