Court Agrees to Stay Coverage Matter While Underlying State Action is Pending
October 29, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court granted the insured's motion to stay the coverage action while the construction defect case was pending in state court. Auto Owners Ins. Co. v. Essex Homes Southeast, Inc., 2014 U.S. Dist. LEXIS 133120 (D. S.C., Sept. 23, 2014).
The homeowners sued Essex Homes in state court for construction defects in a home built and sold to them by Essex Homes. The suit sought damages for property damage based on negligence, breach of implied warranty, and breach of express warranties arising out of the alleged construction defects. The complaint alleged that a water leak in the house caused water damage and resulted in mold growth that was not discovered for several years.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Zealand Using Plywood Banned Elsewhere
October 30, 2013 —
CDJ STAFFCopper chromium arsenate helps protect wood against insect damage and fungal growth. Unfortunately, its use leads to arsenic exposure. The safety concerns over CCA for both construction workers and the people who later use the buildings have led to the CCA-treated plywood being banned or restricted in most countries, including the United States, Canada, France, the United Kingdom, and Germany.
New Zealand is not on the list of countries restricting or banning CCA-treated wood. Dr. Merial Watts, a science coordinator for Pesticide Action Network NZ described the product as an “unacceptable public health risk,” and said that “wrapping homes in CCA-treated plywood is a very bad idea.”
One construction official, speaking anonymously, noted that “workers have to handle it with gloves and full body suits,” but those guidelines may not be followed. A foreman on a building site said “I know about the treatment but I don’t take many precautions.”
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Lewis Brisbois Moves to Top 15 in Law360 2022 Diversity Snapshot
August 15, 2022 —
Rima Badawiya - Lewis Brisbois NewsroomLos Angeles, Calif. (August 4, 2022) - Lewis Brisbois has ranked 13th in Law360’s 2022 Diversity Snapshot – a measure of the overall presence of individuals from underrepresented backgrounds in law firms of all sizes.
Throughout Lewis Brisbois’ history, the firm has been recognized for high achievements in the areas of diversity, equity, and inclusion. Over the past year, its focus on capturing the full picture of its diversity has led to the firm’s rise in several diversity rankings – including the Law360 Diversity Snapshot. As described in the Law360 Pulse article,
"Diversity Snapshot: Representation in the Ranks," the Diversity Snapshot serves as a “comprehensive ranking of law firms on their overall representation of minority attorneys,” providing “a picture of where firms are now, and where the future might lead.”
Moreover, as explained in the main article of this special publication,
"Diversity Snapshot: How Firms Stack Up," Law360 used its own historical surveys as well as data from the American Bar Association to evaluate the diversity in firm headcounts against benchmarks that reflected diversity in the potential marketplace of new hires. Lewis Brisbois’ efforts to capture its diversity numbers has led to a significant increase in the firm’s position from 58th to 13th. This year's Snapshot includes 291 law firms, with 75 in the 600+ attorneys category.
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Rima Badawiya, Lewis BrisboisMs. Badawiya may be contacted at
Rima.Badawiya@lewisbrisbois.com
Construction Defect Notice in the Mailbox? Respond Appropriately
August 04, 2011 —
Douglas Reiser, Builders Council BlogRecently, I have seen a rash of ignored construction defect notices. What is a construction defect notice? It’s a statutorily required notice, sent from a homeowner to a contractor, listing a number of defects found at their property. If you get one, don’t ignore it.
The Revised Code of Washington includes a number of provisions intended for residential construction disputes. Among them is the “Notice to Customer” requirement in RCW 18.27.114, which can preempt a contractor’s lien rights, and the “Notice of Construction Defects” found in RCW 64.50.020.
The Notice of Construction Defects is a standard notice mandated by RCW 64.50, a chapter in the Revised Code of Washington, intended to provide a pre-litigation resolution process for contractors and consumers. The chapter applies only to those losses “caused by a defect in the construction of a residence or in the substantial remodel of a residence.”(See “Action” RCW 64.50.010).
Unfortunately, many contractors will simply ignore these notices or tell the homeowner to make a warranty claim. But, the notice actually provides a contractor with a forty-five (45) day window to alleviate the dispute.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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Professor Stempel's Excpert Testimony for Insurer Excluded
October 07, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied Daubert motions for several experts with the exception of Professor Stempel's expert testimony opining that the insurer did not act in bad faith Adell Plastics, Inc. v. Mt. Hawley Ins. Co., 2019 U.S. Dist. LEXIS 102942 (D. Md. June 19, 2019).
A fire demolished several buildings at Adell's facility. Adell was insured under a commercial property policy issued by Mt. Hawley. Mt. Hawley sued Adell, seeking a declaration that it owed no coverage, and requesting recoupment of a substantial advance payment. Adell filed a counterclaim, alleging that Mt. Hawley had breached the policy and had acted with a lack of good faith. Before the court were several pretrial motions, including motions to exclude testimony of eight expert witnesses.
The court denied Adell's motion to exclude several experts to be called by Mt. Hawley. The accountant's testimony was relevant. Adell had to prove damages on its breach of contract claim, and the accountant's testimony would aid the jury in evaluating Adell's documentation and calculating documented damages. Mt. Hawley's fire safety expert investigated the Adell fire. Mt. Hawley had shown that his expert opinion would be sufficiently reliable for admissibility. Further, three fire protection engineers offered by Mt. Hawley and two fire protection engineers to be called by Adell were allowed to testify. Each expert based his investigation and conclusions on the standards of fire investigation as set out in the NEPA Guide for Fire and Explosion Investigations. This was a fire insurance case, and fire protection engineers would be allowed to testify and illuminate the circumstances of the fire.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Luxury Home Sales are on the Rise
February 04, 2014 —
Beverley BevenFlorez-CDJ STAFFThe New York Times reports that the sale of luxury homes is on the rise: “Yet despite the bursting of the housing bubble, the ensuing recession and the slow recovery, buyers have not abandoned luxury homes. It turns out that they just took a break. In July 2013, sales of homes costing more than $1 million were up 46.6 percent from the previous July.”
“The housing market is being driven by the move-up buyer, the luxury buyer,” Brad Hunter, chief economist and director of consulting at Metrostudy told the New York Times. “And those who have strong incomes, secure jobs, their stock portfolio is doing well — they are able to buy whatever they want. And what they are buying is larger houses.”
Toll Brothers design director, Tim Gehman, said that “the homes that sell best today are those with the biggest kitchens and most expansive master suites — much as they were before the recession,” according to the New York Times.
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Vermont Supreme Court Reverses, Finding No Coverage for Collapse
May 18, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Vermont Supreme Court reversed the trial court's decision for collapse coverage. Commercial Constr. Endeavors, Inc. v. Ohio Sec. Ins. Co., 2019 Vt. LEXIS 173 (Vt. Sup. Ct. Dec. 13,2019).
Commercial Construction Endeavors, Inc. (CCE) built a livestock barn. By late December 2014, the barn was partially complete, with the foundation laid, wood framing erected, and roof trusses installed. In late December, strong winds caused the structure to collapse. CCE started clearing debris and rebuilding the barn, incurring additional labor and material costs.
CCE reported the collapse to Ohio Security. The policy covered loss to "Covered Property." Ohio Security determined that the loss was covered for "Off-Premises Property Damage Including Care, Custody or Control." This endorsement provided coverage for damage to real property upon which CCE was performing operations where the damage resulted from those operations. Ohio Security paid CCE $24,750, the full amount available under the endorsement, less a $250 deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Miller Act Payment Bond Surety Bound to Arbitration Award
December 29, 2020 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting case binding a Miller Act payment bond surety to an arbitration award against its prime contractor (bond principal) that it received sufficient notice of. Notice is the operative word. The surety could have participated in the arbitration, elected not to, and when its prime contractor (bond principal) lost the arbitration, it was NOT given another bite out of the apple to litigate facts already been decided.
In BRC Uluslararasi Taahut VE Ticaret A.S. v. Lexon Ins. Co., 2020 WL 6801933 (D. Maryland 2020), a prime contractor was hired by the federal government to make security upgrades and interior renovations to a United States embassy in the Czech Republic. The prime contractor hired a subcontractor to perform all of the installed contract work. The prime contractor terminated the subcontractor for default during the course of construction.
The subcontractor demanded arbitration in accordance with the subcontract claiming it was wrongfully terminated. The subcontractor also filed a lawsuit asserting a Miller Act payment bond claim against the prime contractor’s surety (as well as a breach of contract action against the prime contractor). The subcontractor made clear it intended to pursue its claims in arbitration and hold the payment bond surety jointly and severally liable. The parties agreed to stay the lawsuit since the facts were identical to those being arbitrated. The arbitration went forward and an award was entered in favor of the subcontractor and against the prime contractor for approximately $2.3 Million.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com