Second Circuit Finds Potential Ambiguity in Competing “Anti-Concurrent Cause” Provisions in Hurricane Sandy Property Loss
November 28, 2018 —
CDJ STAFFThe Second Circuit recently held that competing “anti-concurrent cause” provisions in a commercial property policy present a potential ambiguity that could result in favor of coverage for losses sustained by Madelaine Chocolate after storm surge from Hurricane Sandy combined to cause substantial damage to Madelaine’s property and a resulting loss of income.
Madelaine was insured under an all-risk insurance policy issued by Chubb subsidiary Great Northern Insurance Company. By endorsement, Madelaine’s policy added “windstorm” as a covered peril and defined “windstorm” as “wind… regardless of any other cause or event that directly or indirectly contributes concurrently to, or contributed in any sequence to, the loss or damage.” The policy also included a common flood exclusion that removed coverage for loss or damage caused by or resulting from waves, tidal water, or tidal waves, or the rising, overflowing, or breaking of any natural harbors, oceans, or any other body of water, whether driven by wind or not. Like the windstorm endorsement, the flood exclusion contained concurrency language that broadened the exclusion to any loss to which flood contributed, regardless of any other cause or event that directly or indirectly contributed to the loss.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Tae Andrews, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Andrews may be contacted at tandrews@HuntonAK.com
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The Contract Disputes Act: What Every Federal Government Contractor Should Know
February 07, 2018 —
Sarah K. Carpenter – Smith Currie BlogClaims on construction projects are unpleasant, but sometimes unavoidable. Contract with the federal government and you are by statute and by contract required to resolve any and all disputes under the Contract Disputes Act. So what is the Contract Disputes Act? This article sets forth basic information all federal government contractors should know when faced with the necessity of making or defending a claim on a federal project.
What Is the Contract Disputes Act?
The Contract Disputes Act of 1978 (CDA or Act) was enacted by Congress to implement a comprehensive statutory scheme for the resolution of government contract claims. The CDA provides a framework for asserting and handling claims by either the government or a contractor. All disputes under the CDA must be submitted to either the U.S Court of Federal Claims or to an administrative board of contract appeals. The vast majority of board cases are handled by either the Armed Services Board of Contract Appeals or the Civilian Board of Contract Appeals. The ASBCA is generally responsible for deciding appeals from decisions of contracting officers in the Department of Defense, the Department of the Army, the Department of the Navy, NASA, and when specified, the CIA. The CBCA hears disputes from all other executive agencies except the United States Postal Service (USPS), the Postal Rate Commission, and the Tennessee Valley Authority.
The USPS is served by the Postal Service BCA. In addition, the Government Accountability Office Contract Appeals Board handles contract disputes arising in the legislative branch, and the Office of Dispute Resolution for Acquisition handles contract disputes and bid protests arising out of Federal Aviation Administration procurements.
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Sarah K. Carpenter, Smith Currie
Witt Named to 2017 Super Lawyers
March 29, 2017 —
Jesse Howard Witt - The Witt Law FirmThe Witt Law Firm is proud to announce that Super Lawyers has recognized lawyer Jesse Howard Witt as Top Rated Construction Litigation Attorney in Boulder Colorado.
Super Lawyers is a rating service of outstanding lawyers who have attained a high-degree of peer recognition and professional achievement. Super Lawyers selects attorneys using a patented multiphase selection process. Peer nominations and evaluations are combined with independent research. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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Michigan: Identifying and Exploiting the "Queen Exception" to No-Fault Subrogation
May 13, 2014 —
Robert M. Caplan – White and Williams LLPIn Michigan, an employee’s entitlement to compensation for injuries sustained in a motor vehicle accident is governed by both the Workers’ Disability Compensation Act of 1969, MICH. COMP. LAWS ANN. § 418.801 et seq., and Chapter 31 of The Insurance Code of 1956, MICH. COMP. LAWS ANN. § 500.3101 et seq., commonly referred to as the “no-fault act.” Polkosnik v. United Canada Ins. Co., 421 N.W.2d 241, 242 (Mich. App. 1988).
PIP1 benefits payable arising from a motor vehicle accident in Michigan include, principally, (1) medical benefits unlimited in amount and duration, and (2) 85% of lost wages for up to three years. See DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES, Brief Explanation of Michigan No-Fault Insurance. As of October 2013, lost wages are capped at $5,282 per month. Id. Such benefits constitute an injured worker’s “economic loss.” See generally Wood v. Auto-Owners Ins. Co., 668 N.W.2d 353, 355 (Mich. 2003).
Michigan’s no-fault legislation is no different than other no-fault legislation in regard to its purpose: The automobile insurer pays without any right of reimbursement out of any third party tort recovery. Sibley v. Detroit Auto. Inter-Ins. Exch., 427 N.W.2d 528, 530 (Mich. 1988). Moreover, just like in New York, for example, “where benefits are provided from other sources pursuant to state or federal law, the amount paid by the other source reduces the automobile insurer’s responsibility.” Id. at 530.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
Burden Supporting Termination for Default
January 11, 2021 —
David Adelstein - Florida Construction Legal UpdatesTerminating a contractor for default is a “‘drastic sanction’ and ‘should be imposed (or sustained) only for good grounds and on solid evidence.’” Cherokee General Corp. v. U.S., 150 Fed.Cl. 270, 278 (Fed.Cl. 2020) (citation omitted). This is true with any termination for default because terminating a contract for default is the harshest recourse that can be taken under a contract. It is a caused-based termination. For this reason, the party terminating a contract for default needs to be in a position to carry its burden supporting the evidentiary basis in exercising the default-based (or caused-based) termination. Stated differently, the party terminating a contract for default needs to justify the reasonableness in terminating the contract for default.
A party looking to terminate a contract for default should smartly work with counsel to best position its justification in exercising the termination for default. Likewise, a contractor terminated for default should immediately work with counsel to best position the unreasonableness or the lack of justification for the default-based termination.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Home Prices in 20 U.S. Cities Rose at Slower Pace in May
July 30, 2014 —
Victoria Stilwell – BloombergResidential real-estate prices rose in the 12 months ended May at the slowest pace in more than a year as a lull in the U.S. housing market limits appreciation.
The S&P/Case-Shiller index of property values in 20 cities increased 9.3 percent from May 2013, the smallest year-to-year advance since February 2013, after rising 10.8 percent in the year ended in April, the group said today in New York. The median projection of 30 economists surveyed by Bloomberg called for a 9.9 percent year-over-year advance. Compared with the prior month, prices dropped for the first time in two years.
Higher mortgage rates and strict lending requirements are bridling sales, which will probably prompt sellers to lower their expectations of how much they can get for their properties. Continued job growth and greater balance between supply and demand will be needed to bring some potential homebuyers back into the market.
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Victoria Stilwell, BloombergMs. Stilwell may be contacted at
vstilwell1@bloomberg.net
Philadelphia Proposed Best Value Procurement Bill
December 08, 2016 —
Wally Zimolong – Supplemental ConditionsAn opinion piece in today’s Philadelphia Inquirer concerning proposed legislation that would change the way the City of Philadelphia awards public construction projects is causing quite a stir. The article concerns legislation that would allow the City to award public construction contracts based on a “best value” approach rather than the current requirement that the contract be awarded to the lowest responsible and responsive bidder. The author worries that by removing the current objective criteria and replacing it with subjective ones, contracts can be steered to politically favored contractors. The author cites the recent no-bid contract awarded to a law firm run by the friend of Mayor Jim Kenney as an example of the chaos would ensue if this bill was passed.
Considering that the Bill’s sponsor, Bobby Hennon, is under FBI investigation, and some of the Mayor’s biggest supporters are as well, the author has ever right to be concerned. However, article comes up short in explaining what the Bill says and what best value procurement, if adopted, would mean for public construction work in Philadelphia.
First, the Bill that Councilman Hennon is proposing is actually a Bill that would make the best value procurement question a ballot question next November. In other words, the Bill, if passed, would but to a City wide vote the question of whether the City should change it procurement practices to permit the best value approach to be used in addition to the low bid approach that is current used.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Nine ACS Lawyers Recognized as Super Lawyers – Two Recognized as Rising Stars
August 26, 2024 —
Ahlers Cressman & Sleight PLLCGoing outside the norm of our blogs, which usually discuss construction related issues, Ahlers, Cressman, & Sleight is pleased to announce that nine members of our firm have been selected to the 2024 Washington Super Lawyers list.
Each year, a rigorous process that involves a nomination by peers and a third-party verification of honors, awards, verdicts, settlements, and other criteria relating to their work as an attorney, aims to select no more than five percent of the lawyers in Washington state from no more than seventy practice areas for this distinction. As mentioned, the first step in the process is to be evaluated on their work as an attorney, next candidates are evaluated by their peers and given ratings based on the information known about their work. Finally, candidates are grouped into four firm-size categories and final selections are made. The grouping process is done so that candidates are compared fairly to their peers by firm size, eliminating the potential unfairness that comes with comparing large and small firm outcomes and attorney practices.
The Rising Star list involves an even narrower criteria than the Super Lawyers list. The initial process is the same, however, candidates for the Rising Stars list must be under the age of forty or have less than ten years of experience. For this category less the two and a half percent of lawyers in Washington are selected, making this quite a feat for those who have accomplished the honor.
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Ahlers Cressman & Sleight PLLC