Anti-Assignment Provision Unenforceable in Kentucky
December 20, 2012 —
TRED EYERLY, INSURANCE LAW HAWAIIOn a certified question from the Federal District Court, the Supreme Court of Kentucky decided that an anti-assignment provision in a policy is unenforceable.
Wehr Constructors v. Paducah Div. Assur. Co. of Am., 2012 Ky. LEXIS 183 (Ky. Oct. 25, 2012).
Before building an addition to its hospital, Murray Calloway County Hospital purchased a builder's risk policy from Assurance Company of America.The policy provided, "Your rights and duties under this policy may not be transferred without Assurance's written consent . . . ." The Hospital contracted with Wehr Constructors to install concrete subsurfaces and vinyl floors in order to expand the hospital. After installation, a portion of the floors and subsurface work was damaged. The Hospital submitted a claim to Assurance for $75,000, but the claim was denied.
Wehr sued the Hospital to recover money for its work on the construction project. In settling the case, the Hospital assigned to Wehr any claim or rights the Hospital had against Assurance.
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Tred R. Eyerly, Insurance Law Hawaii.Mr. Eyerly can be contacted at
te@hawaiilawyer.com
Insurer Must Defend Claims of Alleged Willful Coal Removal
June 21, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insured was entitled to a defense against claims for its alleged willful removal of coal from third parties' land. Liberty Mut. Fire Ins. Co. v. Bizzack Constr, 2017 U.S. Dist. LEXIS 70285 (W.D. Va. April 27, 2017).
The Virginia Department of Transportation (VDOT) contracted with Bizzack to perform work in widening U.S. Route 460. VDOT notified coal owners that it had been "necessary to remove certain coal" from their land during the construction of Route 460. Some of the coal owners sued Bizzack, seeking compensation for lost coal. They alleged Bizzack had illegally removed and sold their coal, and "damaged the remaining coal in place on the property."
Bizzack sought coverage from Liberty Mutual. Liberty Mutual filed suit seeking a declaration that it had no duty to defend or indemnify Bizzack. Cross-motions for summary judgment were filed. Liberty Mutual argued: (1) there was no "occurrence"; (2) exclusion j (5) applied; and (3) the "expected or intended injury" exclusion applied.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Factual Issues Prevent Summary Judgment Determination on Coverage for Additional Insured
May 01, 2014 —
Tred R. Eyerly – Insurance Law HawaiiNumerous factual issues prevented the court from deciding at the summary judgment stage whether the additional insured was covered for a personal injury claim that happened on a construction site. Paynes Cranes v. Am States Ins. Co., 2014 U.S. Dist. LEXIS 40485 (E.D. N.Y. March 26, 2014).
Intermetal Fabricators, Inc. hired Paynes to provide a crane and driver for the construction of a store. A construction worker was injured while working with the crane. The injured worker sued several defendants, including Paynes.
Intermetal had coverage for the project that included additional insureds. The policy provided, “Any person or organization . . . for whom you [Intermetal] are required by written contract, agreement or permit to provide insurance is an insured, subject to the following additional provisions: a. The contract, agreement or permit must be in effect during the policy period . . . and must have been executed prior to the ‘bodily injury,’ ‘property damage,’ 'person and advertising injury.’”
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
DOI Aims to Modernize its “Inefficient and Inflexible” Type A Natural Resource Damages Assessment Regulations
March 25, 2024 —
Amanda G. Halter, Jillian Marullo & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogThe U.S. Department of the Interior (DOI) published a
proposed rule aimed at modernizing and streamlining the “Type A” Natural Resource Damage Assessment (NRDA) regulations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA). (The comment deadline was later
extended.) The revisions,
first previewed in a January 2023 Advanced Notice of Proposed Rulemaking (ANPR), are intended to fulfill “the original statutory purpose of providing a streamlined and simplified assessment process” with the overarching goal of facilitating settlements and expediting restoration efforts following injury resulting from pollution in a broader range of cases.
The NRDA regulations provide two paths to assessing natural resource damages (NRD): (1) the more complex, site-specific Type B procedures for detailed NRDAs and (2) what is intended to be the standard, simplified Type A assessment procedures requiring minimal field observation. Particularly, the Type A process is reserved for two specific aquatic environments (coastal and marine areas or Great Lakes environments) when a relatively minor release of a single hazardous substance occurs, resulting in a smaller scale and scope of natural resource injury, and the rebuttal presumption for the Type A procedure is limited to damages of $100,000 or less under the current version of the rule.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Jillian Marullo, Pillsbury and
Ashleigh Myers, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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House of the Week: Spanish Dream Home on California's Riviera
July 30, 2014 —
Emily Heffter – BloombergFamous clients of renowned Los Angeles architect Richard Landry are not known for their restraint.
The Brentwood estate he designed for Tom Brady and Gisele Bundchen has a moat and just sold to Dr. Dre for $40 million. Michael Jackson died in a home Landry designed (a rental), and he has designed luxurious mansions for Wayne Gretzky, Michael Bolton, Mark Wahlberg and Kenny G.
Still, homeowner Lorna Auerbach did something unique when Landry started designing her dream home in Pacific Palisades: She flew him to Spain, with her, for 10 days.
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Emily Heffter, Bloomberg
New Certification Requirements for Veteran-Owned Small Business Concerns and Service-Disabled Veteran-owned Small Business Concerns Seeking Public Procurement Contracts
March 27, 2023 —
Jennifer Harris, Timothy D. Matheny & Abby Bello Salinas - ConsensusDocsEffective January 1, 2023, Veteran-Owned Small Business Concerns (VOSBs) and Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBs) will be required to obtain Small Business Administration (SBA) certification to participate in any federal government agency VOSB or SDVOSB sole source or set-aside prime contracts. This change originated from a Final Rule (87 FR 73400) published by the SBA on November 29, 2022. As a result of this Final Rule, not only will VOSBs and SDVOSBs be required to re-visit, and in some cases re-apply for various certifications, but these new regulations will also impact joint ventures that rely on their member’s VOSB or SDVOSB status to bid public work.
New Regulation
Previously, a VOSB and SDVOSB could self-certify to perform set-aside and sole source projects on non-U.S. Department of Veteran Affairs (VA) procurements—a VOSB and SDVOSB only needed to be certified by the VA Center for Verification and Evaluation (CVE) when bidding on VA procurements contingent on its status.
Reprinted courtesy of
Jennifer Harris, Peckar & Abramson, P.C.,
Timothy D. Matheny, Peckar & Abramson, P.C. and Abby Bello Salinas, Law Clerk, Peckar & Abramson, P.C.
Ms. Harris may be contacted at jharris@pecklaw.com
Mr. Matheny may be contacted at tmatheny@pecklaw.com
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Best Practices for Installing Networks in New Buildings
August 14, 2023 —
Patrick Chown - Construction ExecutiveA previous article, "
How to Install Networks in an Old Building," discussed the various challenges of implementing networking infrastructure in older spaces. The building layout, age of the building and use cases were the major challenges involved. New buildings provide an opportunity to incorporate state-of-the-art networking infrastructure from the ground up. Careful planning and foresight are essential to ensure optimal network performance and avoid future issues.
In new buildings, including corporate offices, multifamily residential complexes, hospitals, educational institutions and retail spaces, the potential use cases and users can vary significantly. Each of these spaces comes with its unique networking requirements. Regardless of the specific network applications, there are fundamental frameworks and best practices that can be employed to build a solid network foundation. By following these guidelines and adapting them to the specific needs of your new building, you can ensure a robust and flexible network infrastructure that accommodates ever-evolving technological demands.
Reprinted courtesy of
Patrick Chown, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Texas Supreme Court: Breach of Contract Not Required to Prevail on Statutory Bad Faith Claim
June 06, 2018 —
Bethany L. Barrese - Saxe Doernberger & Vita, P.C.In USAA Texas Lloyds Company v. Menchaca, the Supreme Court of Texas clarified long-standing confusion regarding whether damages for bad faith are recoverable in the absence of a breach of contract under Texas law. The Menchaca case takes an in-depth dive into decades’ worth of Texas precedent and concludes that, under certain circumstances, an insured can recover policy benefits as damages for bad faith without finding that the insurer was in breach of contract.
The story of this case begins with Hurricane Ike in September 2008. Homeowner Gail Menchaca contacted her homeowner’s insurance company, USAA Texas Llloyds Company (“USAA”) to report that the storm had damaged her home. USAA sent an adjuster to investigate the claim, and USAA determined that although the policy covered some of the damage, no benefits would be paid under the policy because the repair estimate did not exceed the policy deductible. Five months later, at Ms. Menchaca’s request, another USAA adjuster inspected the property and reached the same conclusion.
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Bethany L. Barrese, Saxe Doernberger & Vita, P.C.Ms. Barrese may be contacted at
blb@sdvlaw.com