Washington Supreme Court Finds Agent’s Representations in Certificate of Insurance Bind Insurance Company to Additional Insured Coverage
February 03, 2020 —
Jason Taylor - Traub LiebermanIn T-Mobile USA Inc. v. Selective Ins. Co. of Am., 450 P.3d 150 (Wash. 2019) the Washington Supreme Court addressed whether an insurance company is bound by its agent’s written representation—made in a certificate of insurance—that a particular corporation is an additional insured under a given policy. The question arose in a case where: (1) the Ninth Circuit had already ruled that the agent acted with apparent authority, but (2) the agent’s representation turned out to be inconsistent with the policy and (3) the certificate of insurance included additional text broadly disclaiming the certificate’s ability to “amend, extend or alter the coverage afforded by” the policy. According to the Court, under Washington law the answer is yes: an insurance company is bound by the representation of its agent in those circumstances. Otherwise, the Court reasoned, an insurance company’s representations would be meaningless and it could mislead without consequence.
At the heart of this case were two T-Mobiles entities: T-Mobile USA and T-Mobile Northeast (“T-Mobile NE”), which were distinct legal entities. T-Mobile NE engaged a contractor to construct a cell phone tower on a rooftop in New York City. The contract between T-Mobile NE and the contractor required the contractor to obtain a general liability insurance policy, to annually provide T-Mobile NE “with certificates of insurance evidencing [that policy’s] coverage,” and to name T-Mobile NE as an additional insured under the policy. T-Mobile USA was not a party to the contract, but was nonetheless aware of it and approved the contract as to form.
The contractor obtained the required insurance policy from Selective. The policy provided that a third party would automatically become an “additional insured” under the policy if the contractor and the third party entered into their own contract that required the contractor to add the third party to its insurance policy as an additional insured. Because T-Mobile USA did not have a contract with the contractor, it did not automatically become an additional insured under the policy. Nevertheless, over the course of several years, Selective’s agent issued a series of certificates of insurance to “T-Mobile USA Inc., its Subsidiaries and Affiliates” that stated that those entities were “included as an additional insured [under the policy] with respect to” certain areas of coverage. The agent signed those certificates as Selective’s “Authorized Representative.”
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
16 Wilke Fleury Attorneys Featured in Sacramento Magazine 2021 Top Lawyers!
September 20, 2021 —
Wilke Fleury LLPCongratulations to Wilke Fleury’s featured attorneys who made the Sacramento Magazine’s Top Lawyer List for 2021!
The voting for Professional Research Services’ survey to determine the top attorneys in 2021 for Sacramento Magazine was open to all licensed attorneys in Sacramento, Calif. Attorneys were asked whom they would recommend among 56 legal specialties, other than themselves, in the Sacramento area. Each attorney was allowed to recommend up to three colleagues in each given legal specialty. Once the online nominations were complete, each nominee was carefully evaluated on the basis of the survey results, the legitimacy of their license, and their current standing with the State Bar of California. Attorneys who received the highest number of votes in each specialty are reflected in the following list. – Sacramento Magazine
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Wilke Fleury LLP
Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
June 15, 2020 —
Patrick McNamara - Porter Law GroupA California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision typically found in subcontracts is contrary to the “reasonable time” statutory requirement and will not be enforced. This represents a major shift in California construction payment bond claim rights.
Plaintiff Crosno Construction, Inc. (“Crosno) was a subcontractor to general contractor Clark Brothers (“Clark”), who was principal on a public works payment bond issued by Travelers. The owner was a public agency district (“District.”) Crosno had completed most of its subcontract work when a dispute between District and Clark arose, causing the project to stop. Crosno then sought payment through a payment bond claim against Travelers. Travelers denied the claim, relying on the subcontract’s payment provisions and asserting the defense that it had no obligation to pay on the bond claim because the litigation between Clark and the District had not yet reached its conclusion.
Subcontract. The subcontract between Clark and Crosno contained a “pay-when-paid” provision stating that Clark would pay Crosno within a reasonable time after receiving payment from the District. In defining “a reasonable time,” the subcontract language provided that the time for payment “in no event shall be less than the time [Clark] and [Crosno] require to pursue to conclusion their legal remedies against [District] or other responsible party to obtain payment.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
Construction Defect Fund Approved for Bankrupt Las Vegas Builder
February 11, 2013 —
CDJ STAFFA federal bankruptcy judge has given his approval to a fund set up to settle potential construction defect claims as a Las Vegas home builder, America West Development, works its way out of bankruptcy. The U.S. Trustee had objected to the trust fund's structure, and claimed that it was insufficiently independent from America West. Judge Mike Nakagawa found no legal objections to the trust.
The trust will be initially funded from $1.5 million of the $10 million that Lawrence Canarelli will be paying to buy back the company he founded. Construction defect claims against the company could possibly reach $20.9 million. The Las Vegas Review-Journal reports that the fund "could pick up funding from certain legal claims and insurance.
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Former NYC Condo Empire Executive Arrested for Larceny, Tax Fraud
March 11, 2024 —
Ava Benny-Morrison - BloombergA former New York executive facing lawsuits over the collapse of real estate empire HFZ Capital Group has been arrested in Miami, charged with grand larceny and tax fraud.
Nir Meir, 48, was arrested Monday, a spokesperson for the Miami-Dade Police Department confirmed. Meir was detained on an out-of-state warrant, suggesting his arrest may be the result of an investigation by law enforcement in New York.
A spokesperson for the Manhattan District Attorney’s Office didn’t immediately respond to a request for comment. Meir’s attorney also didn’t immediately respond to an email.
Meir, the former managing principal of HFZ Capital Group, has been battling multiple lawsuits in New York over his involvement in the once-prominent real estate firm. He’s denied wrongdoing.
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Ava Benny-Morrison, Bloomberg
Competition to Design Washington D.C.’s 11th Street Bridge Park
May 07, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Architect Magazine, eighty landscape architecture and architecture firms (forty teams) submitted proposals to design the $25-million Washington D.C. 11th Street Bridge Park project. A jury has shortlisted six design teams: “Wallace Roberts & Todd (WRT)/Next Architects, Piet Oudolf with Glenn LaRue Smith/PUSH Studio/WXY Architecture + Urban Design, OLIN/OMA, Workshop: Ken Smith Landscape/Davis Brody Bond, Stoss Landscape Urbanism/Höweler + Yoon Architecture, and Balmori Associates/Cooper, Robertson & Partners.”
The “nonprofit Building Bridges Across the River at THEARC (Town Hall Education Arts Recreation Campus) and the District's Office of Planning” launched the competition in March of this year. Architect Magazine stated that “the goal of” the project is to unify “what some call a ‘long-divided city,’ by connecting Capitol Hill and Anacostia, the neighborhoods on either side of the river.”
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Just Because You Record a Mechanic’s Lien Doesn’t Mean You Get Notice of Foreclosure
September 15, 2016 —
Christopher G. Hill – Construction Law MusingsAs longtime (or new readers for that matter) know, mechanic’s liens are near and dear to my heart here at Construction Law Musings. These powerful tools to collect for your hard work on a construction project are great when prepared and recorded in the very specific fashion required by the Virginia legislature and courts. In most situations, if done properly, a mechanic’s lien gives you some security and priority for your construction claim that you would not have with a simple judgment lien.
Despite the power of a properly perfected and enforced mechanic’s lien (and the fact that the end result of a full mechanic’s lien suit that remains unsettled is in fact a foreclosure), a recent case in the Eastern District of Virginia, Weinberg v. J.P. Morgan Chase, et. al., (thanks for the head’s up on this case to the folks at the Construction Payment Blog) held that under Virginia statute mechanic’s lien holders are not entitled to notice of foreclosure. In the Weinberg case, the plaintiff, a pro se lien claimant that recorded two different liens, one pre-foreclosure and one post-foreclosure, and who had not received notice of the intervening foreclosure, argued, among other things, that he should have been given notice of the foreclosure on the deed of trust on the property by J. P. Morgan Chase.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Jarred Reed Named to the National Black Lawyers’ “Top 40 Under 40” List for Second Consecutive Year
August 07, 2023 —
Lewis BrisboisMadison County, Ill. (July 21, 2023) – Madison County Associate Jarred Reed was named to The National Black Lawyers (NBL) “Top 40 Under 40” list for the
second year in a row.
The NBL “Top 40 Under 40” recognizes the most talented Black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary, and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members.
“We feel so blessed to be able to call Jarred our colleague," said Madison County Managing Partner Jeffrey Bash. "He is a joy to work with and our clients are well served with him as part of their defense team.”
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Lewis Brisbois