Rio de Janeiro's Bursting Real-Estate Bubble
September 17, 2015 —
Juan Pablo Spinetto & Peter Millard – BloombergAt opposite ends of downtown Rio de Janeiro, projects tied to Donald Trump and Eike Batista-- one a billionaire-turned-politician, the other Brazil’s most famous ex-billionaire -- have come to represent the city’s real estate bust.
The 23-story Serrador building, a granite-and-glass art deco tower near Rio’s Santos Dumont airport, has sat empty since Batista’s failed empire of commodities companies abandoned it last year. Four miles away, in the city’s gritty port district, an ambitious office project that Trump lent his name to is still nothing more than a weed-filled lot about a year after construction was slated to begin.
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Juan Pablo Spinetto, Bloomberg and
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Indemnity Payment to Insured Satisfies SIR
March 11, 2014 —
Tred Eyerly – Insurance Law HawaiiIn response to certified questions from the Eleventh Circuit, the Florida Supreme Court found that a contractual indemnity payment to the insured satisfied the policy's SIR requirement. Intervest Constr. of Jax v. Gen. Fid. Ins. Co., 2014 Fl. LEXIS 568 (Fla. Feb. 6, 2014).
ICI Homes, Inc. a general contractor, hired Custom Cutting, Inc. to provide trim work, including installation of attic stairs in a residence ICI was building. Under the contract, Custom Cutting agreed to indemnify ICI for any damages resulting from Custom Cutting's negligence. The owner of the residence fell while using the attic stairs installed by Custom Cutting, injurying herself. The owner sued ICI, who sought indemnification from Custom Cutting.
ICI's policy with General Fidelity had a $1 million SIR. The policy also had a transfer of rights clause granting the insurer some subrogation rights.
The case was mediated. The parties agreed to a settlement of $1.6 million. Custom Cutting's insurer proposed paying $1 million to ICI to settle the indemnification claim. ICI, in turn, would pay that $1 million to the residence owner. A dispute arose over wither ICI or General Fidelity was responsible for paying the remaining $600,000.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Court Forces Insurer to Play Ball in COVID-19 Insurance Coverage Suit
December 13, 2022 —
Latosha M. Ellis & Yosef Itkin - Hunton Insurance Recovery BlogOne of the threshold issues in COVID-19 insurance coverage cases that have been brought across the country is whether the policyholder’s allegations meet the applicable pleading standard in alleging that the virus caused physical loss or damage. In many cases, the courts have gotten it wrong, effectively holding policyholders to a higher standard than required. But recently, a California federal judge righted those wrongs by acknowledging the correct pleading standard in that case, which is whether the allegations state a plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The Court, here, correctly recognized that the policyholder, the Los Angeles Lakers, met that pleading standard when it alleged that the COVID-19 virus can cause physical loss or damage by physically altering property.
In its complaint, the Los Angeles Lakers alleged that the virus physically altered its property by changing its chemical and physical property conditions, creating viral vectors that required remedial measures before the property was safe again. Los Angeles Lakers, Inc. v. Fed. Ins. Co., 591 F. Supp. 3d 672 (C.D. Cal. 2022), adhered to on reconsideration, 2022 WL 16571193 (C.D. Cal. Oct. 26, 2022). The Court agreed that these allegations by the Lakers adequately pled physical alteration to support a claim for property damage. The insurer requested reconsideration of the decision, and the Court emphatically affirmed its prior decision, explaining its rationale as follows:
The Court lacks the scientific expertise necessary to conclude, based solely on the allegations in the FAC . . . that it is not plausible for the Lakers’ property to have been physically altered by the Virus, which the Lakers adequately alleged. Consequently, the Court, in the March 17 Order, concluded that the Lakers’ theory was plausible. Whether the Lakers can actually prove its theory will be determined at summary judgment or trial.
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Latosha M. Ellis, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Ms. Ellis may be contacted at lellis@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Aurora Joins other Colorado Cities by Adding a Construction Defect Ordinance
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Aurora Sentinel, the city council of Aurora, Colorado, approved an ordinance targeted at making it more difficult for homeowners to sue builders over construction defect claims.
Similar to other recent Colorado city construction defect measures, “the new rule gives builders the right to repair defects before the litigation is pursued, requires that the majority of home owners in a home owners association – as opposed to just a majority of HOA board members – approve of any lawsuits, and allows builders to offer monetary settlements to homeowners in lieu of repairs.”
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North Carolina Court Rules In Favor Of All Sums
July 13, 2020 —
Lorelie S. Masters & Patrick M. McDermott - Hunton Andrews KurthA North Carolina court recently ruled in favor of all sums allocation. Duke Energy Carolinas, LLC v. AG Insurance SA/NV, No. 17 CVS 5594 (N.C. Sup. Ct.). In that case, Duke Energy is seeking coverage for “liabilities linked to coal combustion residuals (‘CCRs’), i.e., coal ash, at fifteen Duke-owned power plants in North and South Carolina.” In a recent summary judgment decision, the court resolved a dispute between Duke and TIG Insurance Company, as successor to Ranger Insurance Company, about whether all sums allocation or pro rata allocation applied.
The court found that “the non-cumulation provisions make plain” that all sums allocation applied. It also noted that “a large majority of the courts in other jurisdictions that have considered this issue have recognized that non-cumulation provisions such as those here compel all sums rather than pro rata allocation.” The decisions to the contrary, according to the court, had ruled “done so on public policy grounds” and not based on “the application of the rules of contract interpretation.”
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Lorelie S. Masters, Hunton Andrews Kurth and
Patrick M. McDermott, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
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EEOC Suit Alleges Site Managers Bullied Black Workers on NY Project
June 15, 2020 —
Emell D. Adolphus - Engineering News-RecordBullying, threats and racial slurs detail alleged “hostile” working conditions for black employees at a now complete cement plant modernization project near Albany, N.Y., in a lawsuit filed June 2 by the U.S. Equal Employment Opportunity Commission against CCC Group Inc., a San Antonio, Texas-based general contractor.
Emell D. Adolphus, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiJeff City Industries was the general contractor for a sewer system improvement project in Branson, Missouri. Bituminous Cas. Corp. v. United HRB Gen. Contractors, Inc., 2011 U.S. Dist. LEXIS 145666 (W.D. Mo. Dec. 19, 2011). Branson sued Jeff City, alleging breach of the construction contract for the project. The claims included improperly bedded sewer piping, improper aligning portions of trenching for the sewer piping, improper service line connections to the sewer piping, etc.
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Town Sues over Defective Work on Sewer Lines
January 13, 2014 —
CDJ STAFFThe Handy Sanitary District in North Carolina has filed a lawsuit against one of the subcontractors on the Badin Lake Sewer Project, which the Lexington Dispatch describes as “delay riddled.” The town claims that the materials used by Hobbs, Upchurch and Associates “were not adequate for the project.” Additionally, the town claims that valves were improperly installed or damaged, and that pipes were of the incorrect type and improperly connected.
The Sanitary District Board of Commissioners has additionally settled a lawsuit over non-payment for work on the sewer project. The Handy Sanitary District has settled claims brought by Monroe Roadways Contractors and Young Construction with a payment of $250,000.
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