Collapse Claim Fails Due To Defectively Designed Roof and Deck
May 28, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe insured's claim for collapse of his roof and deck failed due to defective design and other exclusions under the policy. Dudar v. State Farm & Cas. Co., 2024 U.S. Dist. LEXIS 52706 (N.D. Ga. Feb. 6, 2024).
The insured submitted a claim to State Farm for damage to the roof ("Roof Claim"). State Farm's adjuster placed a ladder on the deck to access the roof and a portion of the deck collapsed. The insured then reported a claim to State Farm for damage to the deck ("Deck Claim"). The claims were denied and suit was filed.
The roof had leaked on several occasions prior to submission of the Roof Claim. On February 25, 2022, the insured discovered that a branch had cut a hole in the tarp, causing water to leak into the home. The insured performed repairs on the roof. On March 8, 2022, a storm caused more water to seep through the tarp into the ceilings and walls. Thereafter, the Roof Claim was submitted.
The damage from the leaking roof and the deck collapse were caused by rotting. The rotting, in turn, was caused by a combination of defective building design and resulting water damage from rain and storms over the years. The roof and deck were constructed to provide mutual support to one another. The roof did not contain an adequate slope, which caused water to seep down into the walls and flooring rather than to flow downward and away from the property. Over time, penetrating water caused portions of the roof, the floor, and the supporting wall between the roof and deck to rot.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New York Court Temporarily Enjoins UCC Foreclosure Sale
September 21, 2020 —
Steven E. Ostrow, Timothy E. Davis, Steven E. Coury & Kristen E. Andreoli - White and WilliamsNew York courts have become a battleground for challenges to foreclosure sales under the Uniform Commercial Code (UCC) amidst the COVID-19 pandemic. Another trial court of the New York State Supreme Court (New York County) issued a preliminary injunction in Shelbourne BRF LLC v. SR 677 Bway LLC, halting a mezzanine lender’s August 19, 2020 UCC foreclosure sale. The decision confirms that the impact of the pandemic on the value of commercial real estate, and upon traditional steps taken to conduct a foreclosure auction, are both key factors that courts will continue to consider in determining whether a UCC foreclosure sale scheduled during the pandemic can be conducted in a commercially reasonable manner as required by the UCC.
THE CASE
In Shelbourne, the mezzanine borrowers owned the membership or equity interests in the companies (collectively, the “Property Owner”) that held title to a 12-story office building in Albany, New York. As security for the $3.35 million mezzanine loan, the mezzanine borrowers pledged their equity interests to the mezzanine lender. In May 2020, the mezzanine lender declared a default under the mezzanine loan as a result of the Property Owner’s default under the $28.5 million senior loan secured by a mortgage against the office building. The mezzanine lender then scheduled a public UCC foreclosure sale of the equity interests in the Property Owner for August 19, 2020. If the sale had been held, the equity interests in the Property Owner (and right to control the Property Owner and office building) would have been transferred to the successful bidder, either the mezzanine lender or a third party purchaser.
Reprinted courtesy of White and Williams attorneys
Steven E. Ostrow,
Timothy E. Davis,
Steven E. Coury and
Kristen E. Andreoli
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Davis may be contacted at davist@whiteandwilliams.com
Mr. Coury may be contacted at courys@whiteandwilliams.com
Ms. Andreoli may be contacted at andreolik@whiteandwilliams.com
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Candis Jones Named to Atlanta Magazine’s 2021 “Atlanta 500” List
March 01, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones has been named to Atlanta Magazine’s 2021 “Atlanta 500” list of the most powerful business leaders in Atlanta. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionary by, for example, leading programs for their communities or creating opportunities for employees.
Ms. Jones is a member of Lewis Brisbois’ General Liability Practice. Representing a wide array of clients, including Fortune 500 companies, insurance carriers, and a major metropolitan transit authority, she focuses her practice on insurance defense, premises liability, personal injury, and medical malpractice. She was recently installed as the President of the Gate City Bar Association, the oldest African-American bar association in the state of Georgia, and also serves as a member of the Georgia Defense Lawyers Association and the Georgia Association of Black Women Attorneys.
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
Red Wings Owner, Needing Hockey-Arena Neighborhood, Builds One
August 06, 2014 —
Chris Christoff – BloombergBillionaire Mike Ilitch and his family plan to create an instantaneous neighborhood around Detroit’s new hockey arena and jump-start an economic recovery where other sports ventures fell short.
The 250-acre (101-hectare) project near downtown sets the arena apart from other U.S. stadiums where little or no related development occurred, or arose long after construction. The Ilitches, owners of the National Hockey League’s Detroit Red Wings, will spend $200 million on apartments and retail space to attract residents by the time the arena opens for the 2017 season. They’ll also pay 44 percent of cost to build the arena.
“This isn’t, ‘Build it and they will come.’ This is, ‘We’re coming and we’re building it,” said Mark Morante, a manager for the Michigan Strategic Fund, which must authorize a $450 million bond sale to build the arena, the largest by the state’s economic development arm.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
Hunton Insurance Partner, Larry Bracken, Elected to the American College of Coverage Counsel
March 04, 2019 —
Michael S. Levine - Hunton Andrews KurthLawrence J. Bracken II, a partner in Hunton Andrews Kurth’s Insurance Coverage practice group, has been elected to the American College of Coverage Counsel (ACCC), which is the preeminent association of U.S. and Canadian lawyers who represent the interests of insurers and policyholders. The ACCC’s mission is to advance the creative, ethical and efficient resolution of insurance coverage and extracontractual disputes; to enhance the civility and quality of the practice of insurance law; to provide peer-reviewed scholarship; and to improve the relationships among the members of our profession. The ACCC engages in a rigorous vetting process prior to inviting a lawyer to become a fellow. ACCC fellows include many of the most prominent members of the insurance law bar.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
Additional Dismissals of COVID Business Interruption, Civil Authority Claims
December 29, 2020 —
Tred R. Eyerly - Insurance Law HawaiiAmong the recent decisions dismissing complaints for business interruption and civil authority coverage due to closures caused by COVID-19 are Pappy's Barber Shops, Inc. v. Farmers Group, Inc., 2020 U.S. Dist. LEXIS 166808 (S.D. Calif. Sept. 11, 2020) and Sandy Point Dental v. Cincinnati Insurance Co., 2020 U.S. Dist. LEXIS 171979 (E.D. Ill. Sept. 21, 2020). The difficulty in proving "direct physical loss" was the downfall of both cases.
In Pappy's, claims were made for business income losses insured as a result of local and state closure orders. The policy required "direct physical loss of or damage to property at the described premises." Plaintiffs argued that "direct physical loss of" did not require a tangible damage or alteration to property and that the loss of the ability to continue operating their businesses as a result of the government orders met this requirement.
The court relied upon a prior decision, 10E, LLC v. Travelers Indem. Co. of Connecticut, 2020 U.S. Dist. LEXIS 165252 (C.D. Calif. Sept. 2, 2020) [post here], where the court noted that under California law, losses from inability to use property did not amount to "direct physical loss" within the meaning of the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Commonwealth Court Strikes Blow to Philly Window and Door Ordinance
January 05, 2017 —
Wally Zimolong – Supplemental ConditionsOn December 22, 2016, the Pennsylvania Commonwealth Court issued an important opinion that has flown under the radar somewhat. The case Rufo v. Board of Licenses and Inspection Review, invalidates a major portion of Philadelphia’s so called windows and doors ordinance, which requires owners of vacant properties to install glass windows and doors with frames on vacant properties. A copy of the opinion can be found here. (I only learned about the case because of a tweet by a litigator with the pro-freedom group the Institute for Justice.)
The Windows and Doors Ordinance
The case concerns Section 306.2 of the Property Maintenance Code which requires “the owner of a vacant building that is a blighting influence, as defined in this subcode, [to] secure all spaces designed as windows with windows that have frames and glazing and all entryways with doors.” Property owners found in violation of the ordinance can face stiff fines. Property owners are subject to a daily fine for each door and window in violation of the Ordinance. The fine is $300 per window or door. However, because most vacant properties have multiple windows and doors the fines can add up exponentially.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Mandatory Attorneys’ Fee Award for Actions Brought Under the Underground Utility Damage Prevention Act
September 22, 2016 —
Lindsay K. Taft – Ahlers & Cressman PLLCIn Washington, RCW 19.122 (the Underground Utility Damage Prevention Act or “Call Before You Dig” statute) provides for the protection of underground utilities. The statute was recently updated in 2013 and provides that homeowners and contractors must call “811” to schedule a “utility locate” prior to commencing any excavation. Failure to do so can result in steep penalties, as well as a mandatory fee award for the prevailing party.
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Lindsay K. Taft, Ahlers & Cressman PLLCMs. Taft may be contacted at
ltaft@ac-lawyers.com