#10 CDJ Topic: Carithers v. Mid-Continent Casualty Company
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFCraig Martin of
Lamson Dugan and Murray, LLP on his
Construction Contractor Advisor blog used the Carithers case to demonstrate how “[w]hen you are involved in construction litigation, you have battles on several fronts, including those against subcontractors, owners, insurers and the court. Shoring up your defenses on each of these fronts is imperative, or you may lose the battle or, worse yet, the war.” Martin discusses the various “battle fronts” including the “Claim Against Contractor,” “Where Are You Litigating,” “Claim Against Insurance Company,” and “Damages.”
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In the article, “Duty to Defend Construction Defect Case Affirmed, Duty to Indemnify Reversed In Part,” attorney
Tred R. Eyerly also covered the Carithers case. Eyerly explained, “Determining whether there was coverage for the damages awarded required the court to decide which trigger applied. Examining the policy language, the court determined that property damage occurred when the damage happened, not when the damage was discovered or discoverable. Therefore, the district court did not err in applying the injury in fact trigger.”
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Insurer's Denial of Coverage to Additional Insured Constitutes Bad Faith
May 21, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer's unreasonable denial of a defense and indemnity to a lessor/additional insured was found to be in bad faith. Seaway Props. v. Fireman's Fund Ins. Co., 2014 U.S. Dist. LEXIS 55998 (W.D. Wash. April 22, 2014).
Seaway leased restaurant space to Ciao Bella Food, LLC. In January 10, 2010, the underlying plaintiff was on her way to the restaurant when she attempted to step down from a concrete platform between the building parking lot and the entrance to the restaurant. Seaway's lease gave Ciao Bella the right to use the common areas, including the parking lot, but did not grant Ciao Bella exclusive control over the common areas. The plaintiff suffered injuries and claimed both Ciao Bella and Seaway were liable.
Seaway's lease required Ciao Bella to maintain a CGL policy and to name Seaway as an additional insured. Ciao Bella did so by securing a policy with Fireman's Fund. Fireman's Fund had notice of the plaintiff's claim by November 2010. Seaway demanded in March 2012 that Fireman's Fund indemnify and defend it. In September 2012, two years after it first learned of the plaintiff's injury, Fireman's Fund denied coverage, asserting that Seaway was not an insured under the policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Being deposed—not just for dictators! Depositions in the construction lawsuit (Law & Order: Hard Hat files Part 5)
January 17, 2013 —
Melissa Dewey Brumback, Construction Law in North CarolinaMy husband always finds it amusing when I talk about going “to depose” somebody. He wants to know just exactly what sort of coup d’etat I am planning. Despite the awkward language, the deposition process is not supposed to feel like water boarding, although if you don’t know what to expect it can be more miserable than truly necessary.
Simply put, a deposition is a chance for the other side’s lawyer to make you answer a whole bunch of questions (some relevant, some seemingly irrelevant) under oath. That is, first you put your hand on the Bible and swear (or affirm) to tell the truth, the whole truth, and nothing but the truth. In reality, depositions serve a variety of purposes– they educate the lawyers about the facts of the case, they give a preview of how you would “present” to a jury (i.e., would a jury like and believe you?), and they can be used to position a case for certain later dispositive motions (that is, summary judgment– stay tuned for Part 8 of the series on that issue).
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Melissa Dewey BrumbackMs. Brumback can be contacted at
mbrumback@rl-law.com
California Fears El Nino's Dark Side Will Bring More Trouble
September 17, 2015 —
Brian K. Sullivan – BloombergA group of drought experts gathered in California this week, and it wasn’t long before the conversation turned to El Nino.
They weren’t touting it as the savior that will end the state’s four-year drought. Instead, they were looking at a darker scenario where the weather-changing phenomenon adds another year of dryness in the north while ravaging the south with floods.
“What do you say when the governor asks you what to do? ‘You prepare for flood and drought because there is a possibility you can get both,”’ said Mike Anderson, state climatologist.
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Brian K. Sullivan, Bloomberg
The “Climate 21 Project” Prepared for the New Administration
December 21, 2020 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of the recently released “Climate 21 Project” policy memo. It is the work of many former members of the Obama Administration who are deeply concerned about climate change and what steps the new administration can take in the first 100 days to confront a problem. Offering “actionable advice” rather than a policy agenda, the group recognizes that Congress must do its part by providing new statutory authorities within the early days of the new administration, and the President must be prepared to aggressively exercise the powers of his office. As the members of the Group see it, there are four interlocking crises facing the President: (a) the COVID-19 pandemic; (b) the economic devastation visited upon many people by the pandemic; (c) racial injustice; and (d) accelerating threats posed by climate change.
Accordingly:
1. The Executive Office of the President must take stronger steps to reduce greenhouse gas emissions through domestic investment, rulemakings, policy changes, and international diplomacy. A new Special Assistant for Climate Change must be created to take charge of these climate change initiatives. There should also be established in the Executive Office of the President a National Climate Change Council. All agencies must be advised of the urgency of this problem. The paper seems to envision a substantial growth in the White Hose staff.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Courts Favor Arbitration in Two Recent Construction Dispute Cases
November 21, 2018 —
Jason Plaza - The Subrogation StrategistRecent court decisions have signaled the courts’ proclivity to prefer arbitration over full-fledged litigation when provisions in construction contracts are called into question. While the courts recognize a party’s constitutional right to a jury trial, the courts also lean strongly towards resolving disputes via arbitration as a matter of public policy, especially if a construction contract carves out arbitration as an alternative to litigation.
In Avr Davis Raleigh v. Triangle Constr. Co., 818 S.E.2d 184 (N.C. App. 2018), the North Carolina Appeals Court reviewed the issue of whether the contracting parties selected binding arbitration as an alternative to litigation. The contract at issue was an AIA A201-2007 form document. Under the terms of the contract, the parties elected to arbitrate claims under $500,000 but to litigate claims over this amount. However, if there were several claims under $500,000 but the aggregate of all claims exceeded $500,000, then the contract implied that all claims would be arbitrated. Since the claims involved were an amalgamation of the two, the contracting parties disagreed about whether the arbitration provision would apply. The plaintiff interpreted this provision to mean litigation was mandatory when at least one claim exceeded $500,000 and that arbitration was mandatory when no single claim exceeded this amount. In contrast, the defendant interpreted this provision as meaning that when there were several claims worth less than $500,000 individually, but more than $500,000 aggregately, then all claims must be arbitrated. The trial court agreed with the plaintiff’s interpretation.
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Jason Plaza, White & Williams LLP
Deferred Maintenance?
December 17, 2024 —
Daniel Lund III - LexologyA Tennessee-based “outsourced maintenance vendor” to an engine company filed suit in Louisiana state court seeking to recover nearly $150,000 on “open account,” for work previously performed. The engine company removed the case to the Federal District Court in New Orleans and asserted as a defense that the vendor lacked a proper Louisiana construction contractor’s license. The engine company filed a motion for summary judgment based on the defense.
Under Louisiana law, a contract between parties is “absolutely null”--considered to have never existed--where one of the parties performed services without a required Louisiana contractor’s license, and the combined work reaches a $50,000 threshold. The engine company asserted that the vendor performed typical construction contractor work, including plywood flooring, applied epoxy to concrete flooring, erected part of a commercial carport, undertook certain heavy demolition, and installed fences, guardrails, and wire racks.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Do Not Forfeit Coverage Under Your Property Insurance Policy
February 22, 2021 —
David Adelstein - Florida Construction Legal UpdatesIf you have read prior articles (see
here and
here as an example), then you know that when it comes to first-party property insurance policies, an insured must comply with post-loss obligations in the policy. Failure to comply with a post-loss obligation gives the insurer the argument that the insured materially breached the policy and, therefore, forfeited rights to coverage. Naturally, this is avoidable by ensuring post-loss obligations are complied with, ideally under the guidance of counsel and qualified public adjusters to ensure your rights are being preserved and maximized.
[W]hen an insurer has alleged, as an affirmative defense to coverage, and thereafter has subsequently established, that an insured has failed to substantially comply with a contractually mandated post-loss obligation, prejudice to the insurer from the insured’s material breach is presumed, and the burden then shifts to the insured to show that any breach of post-loss obligations did not prejudice the insurer.
Universal Property & Casualty Ins. Co. v. Horne, 46 Fla.L.Weekly D201b (Fla. 3d DCA 2021) quoting American Integrity Ins. Co. v. Estrada, 276 So.3d 905, 916 (Fla. 3d DCA 2019).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com