Colorado Supreme Court Decision Could Tarnish Appraisal Process for Policyholders
September 16, 2019 —
Michael V. Pepe - Saxe Doernberger & Vita, P.C.On June 24, 2019, the Colorado Supreme Court ruled that the plain language of appraisal provisions in insurance policies, requiring “impartial appraisers,” direct appraisers to be “unbiased, disinterested, and unswayed by personal interest,” regardless of who hires them, and prohibits the party-appointed appraisers from acting as advocates.
A common and attractive alternative dispute resolution option, the appraisal process usually entails the policyholder and insurer each hiring their own appraiser, who estimates how much the claim is worth. These appraisers also select a third-party umpire, and if they cannot agree upon one, a court appoints one. The umpire analyzes the conflicting estimates and presents a number to resolve the dispute. If two of the three parties agree with the outcome, the number becomes binding.
Owners Ins. Co. v. Dakota Station II Condo. Ass'n, Inc.1 began when Dakota Station II Condominium Association Inc. (“Dakota”) and its insurer, Owners Insurance Company (“Owners”) could not agree on how to value two claims arising out of weather damage. To settle the differences and come to a resolution, Dakota invoked the appraisal provision in the insurance policy instructing each party to select its own “competent and impartial appraiser.” Ultimately, a court-appointed umpire considered six cost categories in dispute and adopted four of Owners’ estimates and two of Dakota’s.
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Michael V. Pepe, Saxe Doernberger & Vita, P.C.Mr. Pepe may be contacted at
mvp@sdvlaw.com
More Clear, But Not Yet Crystal: Virginia Amends its Prompt Payment Law and Legislation Banning “Pay-If-Paid Clauses in Construction Contracts Effective July 1, 2023
November 16, 2023 —
Hanna Lee Blake - ConsensusDocsThe Virginia General Assembly has joined a minority of jurisdictions that ban pay-if-paid clauses in construction contracts on public and private projects. Senate Bill 550 went into effect applying to contracts executed after January 1, 2023, and most recently has been amended effective July 1, 2023. This update highlights the recent amendments to Virginia’s prohibition against pay-if-paid provisions, of which owners and contractors should be aware to ensure that their contracts comply with developing law in the Commonwealth.
Recap on Senate Bill 550
On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which amended Virginia Code §§ 2.2-4354 and 11-4.6, which govern both public and private sector contracts. In short, SB 550 (as the bill is commonly known) prohibited pay-if-paid clauses, and established fixed deadlines for the payment of invoices on private projects. Previously, Virginia’s Prompt Payment Act only applied to public projects.
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Hanna Lee Blake, Watt TiederMs. Blake may be contacted at
hblake@watttieder.com
Times Square Alteration Opened Up a Can of Worms
January 26, 2017 —
Nadine M. Post – Engineering News-RecordCompared with some of its Manhattan neighbors, a high-rise on the corner of Seventh Avenue and West 47th Street looks standard. Like many buildings in Times Square, the 41-story retail-entertainment-hotel development, nearly topped out, has a tower springing from a boxy base that will sport a flashy billboard.
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Nadine M. Post, Engineering News-RecordMs. Post may be contacted at
postn@enr.com
General Liability Alert: A Mixed Cause of Action with Protected and Non-Protected Activity Not Subject to Anti-SLAPP Motion
February 18, 2015 —
Valerie A. Moore, Lawrence S. Zucker II and Blythe Golay – Haight Brown & Bonesteel LLPIn Baral v. Schnitt (filed 2/5/2015, No. B253620), the California Court of Appeal, Second Appellate District, held that California’s anti-SLAPP statute does not authorize the striking of allegations of protected activity in a cause of action that also contains meritorious allegations of non-protected activity not within the purview of the statute. In so holding, the court attempted to resolve, or at least add its voice to, the growing conflict among appellate districts on the issue.
A SLAPP lawsuit (Strategic Lawsuit Against Public Participation) seeks to chill or punish the exercise of constitutional rights to free speech and to petition the government for redress of grievances. California’s Legislature enacted the anti-SLAPP statute to permit a defendant to file a special motion to strike as to any cause of action that arises out of an act in furtherance of such rights. In Baral, the plaintiff alleged that his business partner had violated fiduciary duties in usurping the plaintiff’s ownership and management interests in their jointly owned company, so that the defendant could benefit from a secret sale of the company. The complaint alleged that the defendant hired a public accounting firm and prevented the plaintiff from participating in its investigation in order to force the plaintiff's cooperation of the sale of the company. The defendant filed an anti-SLAPP motion, seeking to strike all references to the accounting firm's audit. The trial court denied the motion, on the ground that the anti-SLAPP statute applies to causes of action, not allegations.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Valerie A. Moore,
Lawrence S. Zucker II and
Blythe Golay
Ms. Moore may be contacted at vmoore@hbblaw.com.
Mr. Zucker may be contacted at lzucker@hbblaw.com.
Ms. Golay may be contacted at bgolay@hbblaw.com.
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DRCOG’s Findings on the Impact of Construction Defect Litigation Have Been Released (And the Results Should Not Surprise You)
November 13, 2013 —
Derek Lindenschmidt — Higgins, Hopkins, McLain & Roswell, LLC.The downward trend in attached-housing construction in Colorado is well-known and discussed often within the region’s construction, insurance, finance, and legal communities. In recent years, builders and insurers in particular have striven to bring greater awareness to local governments and lawmakers regarding the impact that construction defect lawsuits have on the builders’ ability to introduce desirable, affordable, yet cost-efficient attached-housing options, such as condominiums and townhomes, into the marketplace. The Denver Regional Council of Governments (“DRCOG”) has been aware of the builders’ and insurers’ plight, largely because of the impact that the scarcity of affordable attached-housing has had on their respective communities.
On October 29th, DRCOG released its long-awaited Denver Metro Area Housing Diversity Study, prepared by Economic & Planning Systems, Inc., which investigated the factors contributing to the recent (downward) attached-housing development trends and conditions. The Study evaluated factors including changing financing and insurance requirements for builders and homebuyers, the impacts of foreclosures, changes in prospective homebuyer demographics, economic conditions which limit options for prospective homebuyers, and the costs and risks associated with construction defect regulations and lawsuits.
Despite the retorts and rebukes of the naysayers, the negative impact of construction defect regulations and lawsuits on Colorado’s housing market is significant.
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Derek LindenschmidtDerek Lindenschmidt can be contacted at
lindenschmidt@hhmrlaw.com
Starting July 1, 2020 General Contractors are “Employers” for All Workers on Their Jobsite
June 08, 2020 —
Christopher G. Hill - Construction Law MusingsI have discussed the impactful legislation to the Virginia construction industry in prior posts here at Construction Law Musings. One of those statutes that will take effect on July 1, 2020 will fundamentally change the relationships between general contractors and their subcontractors and suppliers.
Senate Bill 838 does the following on construction projects with a value of $500,000 or greater that are not single family residential construction projects:
- Makes the general contractor, and all tiers of subcontractors on a particular project contractually liable to pay their subcontractors’ (at any tier) employees wages.
- Requires that the payments are equal or exceed those required by other statutes.
- Deems contractors to be the employers of their subcontractors’ employees for purposes of Va. Code Section 40.1-29 that imposes criminal and civil penalties for failure to pay wages when due, and
- Grants employees a private right of action for any violations, including the right to a class or joint action, award of liquidated damages, reasonable attorney fees and possible treble damages for “knowing” violations by the contractor.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
NCDOT Aims to Reopen Helene-damaged Interstate 40 by New Year's Day
December 10, 2024 —
Derek Lacey - Engineering News-RecordInterstate 40, closed in late September when flooding from Hurricane Helene caused multiple landslides and washouts in the Pigeon River Gorge between North Carolina and Tennessee, is expected to partially reopen on New Year’s Day 2025, more than three months after the storm. Long-term reconstruction plans are still in early development.
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Derek Lacey, ENRMr. Lacey may be contacted at
laceyd@enr.com
Eleven WSHB Lawyers Honored on List of 2016 Rising Stars
July 28, 2016 —
Beverley BevenFlorez-CDJ STAFFWood Smith Henning & Berman LLP (WSHB) announced that eleven of their attorneys were recognized on the list of 2016 Rising Stars. According to their press release, “The attorneys honored on the Rising Stars list are 40 years or younger and demonstrate the finest qualities of a good lawyer: first-rate legal skills, preparation, judgment, creativity, dedication and ethics. No more than 2.5 percent of the lawyers in each state are named to Rising Stars.”
The WSHB lawyers on the list practice out of Southern California, Northern California, the Pacific Northwest, Arizona, and Florida, and include Raymond Babaian, Emil Macasinag, Amy Pennington, Christopher Perez, Keith Smith, Kevin Gillispie, Alicia Kennon, Eugene Zinovyev, Timothyf Repass, Jodi Mullis, and Vincent Beilman.
“We are pleased to have 11 of our best selected for this year’s lists,” said Dan Berman, Firm Chairman and Founding Partner. “We value our selections to Rising Stars because the choices come from our peers. It is truly an honor and a validation of all of the great work we do at WSHB.”
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