Court Grants Partial Summary Judgment on Conversion Claim Against Insurer
February 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the court was incredulous that the parties were disputing the possession of a gate opener allegedly damaged in a lightning strike, it granted the insured's motion for partial summary judgment finding the insurer had converted the gate opener. Privratsky v. Liberty Mut. Fire Ins Co., 2022 U.S. Dist. LEXIS 196002 (D. Haw. Oct. 27, 2022). (Full disclosure, our office is co-counsel for the insured).
Mr. Privratsky alleged his home on Maui was struck by lightning which caused an electrical surge. The home and personal property were damaged. The alleged cost of repair work at one point was as much as $325,000. A claim was submitted under a homeowner's policy issued by Liberty Mutual. Liberty paid for only some of the damage. Privratsky filed suit alleging three causes of action for: (1) declaratory judgment that the losses were covered by the policy issued by Liberty; (2) bad faith; and (3) conversion of personal property, namely, the damaged gate operator.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Fifth Circuit Reverses Summary Judgment Award to Insurer on Hurricane Damage Claim
December 18, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit reversed the district court's grant of summary judgment to the insurer on a property damage claim arising from Hurricane Harvey. Advanced Indicator and Manufacturing, Inc. v. Acadia Ins. Co., 50 F.4th 469 (2022).
After Hurricane Harvey struck southern Texas in 2017, Advanced submitted a claim to Acadia for damage to its building that it claimed was caused by the hurricane's winds. Acadia sent an adjuster, Nick Warren, as well as an engineer, Jason Watson. Watson determined that pre-existing conditions - including ongoing leaks from deterioration and poor workmanship - caused the damage, rather than winds from Hurricane Harvey. Warren adopted these conclusions in his recommendations to Acadia. Acadia denied Advanced's claim based on these reports.
Advanced sued Acadia, alleging breach of contract and bad faith. Advanced filed a motion to remand to state court which was denied. Acadia moved for summary judgment arguing that it did not breach the policy and that Advanced could not segregate any damages caused by hurricane from pre-existing damage. The district court granted Acadia's motion, finding that Acadia's denial of Advanced's claim was based on "extensive consideration of the evidence." Further, Advanced failed to carry its burden of showing that covered and non-covered damages could be segregated as required by Texas's concurrent causation doctrine. Finally, the bad faith claim was dismissed because there was no breach of contract.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
MGM Begins Dismantling of the Las Vegas Harmon Tower
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFMGM has begun to dismantle the $8.5 billion, incomplete Harmon Hotel in Las Vegas, Nevada, according to the Las Vegas Review-Journal. The demolition process is expected to take up to a year.
The Las Vegas Review-Journal reported that construction of the tower was halted in 2008 after construction defects were allegedly discovered. Later, “the building was deemed structurally unsound.”
“Instead of blowing the building up in grand fashion, contractors hired by MGM Resorts are now removing scrap metal and other materials from the building, along with taking off the blue-tinged glass that has covered the structure for the last five years,” Howard Stutz wrote in the Las Vegas-Review Journal. “The process also includes installing pedestrian protection systems outside the structure above adjacent sidewalks and walkways.”
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WCC and BHA Raised Thousands for Children’s Cancer Research at 25th West Coast Casualty CD Seminar
May 24, 2018 —
Beverley BevenFlorez-CDJ STAFFThis year’s annual West Coast Casualty Construction Defect Seminar was once again, a huge success. On May 16-18, 2018 attendees from the legal, insurance, builder, contractor, subcontractor and numerous other industries came from across the United States and several foreign countries to discuss current trends, learn about new laws and regulations affecting the construction defect industry, and meet up with colleagues.
Bert L. Howe & Associates, Inc.’s (BHA) Has a Nice Swing Golf Challenge raised $3,500.00 split evenly between the three deserving charities supported by West Coast Casualty:
Hawaii’s Children’s Cancer Foundation ,
St. Jude Children’s Research Hospital, and
Shriners Hospital for Children.
The West Coast Casualty Construction Defect Seminar has been promoting charitable work for the past twenty-five years. Each year, they promote different charities, and provide multiple ways for individuals and companies to contribute. Whether it’s Buy a Banner, Tennis Shoe Thursday, or Flip Flop Friday, industry members are given opportunities to support worthwhile causes.
WCC also supports charitable organizations through every award that they present each year. Donations are made in the winner’s name: For Jerrold S. Oliver Award of Excellence awardees,
Habitat for Humanity as well as a local California and Nevada charity; For Legend of an Era Award, the designated charity of West Coast Casualty’s Construction Defect Seminar; and for The Larry Syhre Commitment to Service Award, a donation to The Larry Syhre Foundation.
BHA hopes to see you at the next West Coast Casualty Construction Defect Seminar in 2019!
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Damage to Plaintiffs' Home Caused By Unmoored Boats Survives Surface Water Exclusion
April 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe magistrate's recommended decision found that damage to plaintiffs' home caused by boats that became loose during Hurricane Sandy was not barred as "water borne material" under the surface water exclusion. Spindler v. Great N. Ins. Co., 2016 U.S. Dist. LEXIS 16532 (E.D. N. Y. Feb. 2, 2016).
Plaintiffs' home abutted the East Bay. The property had an exterior deck and a long dock that floated on the bay. Hurricane Sandy damaged plaintiffs' home and dock. A neighbor witnessed two boats, driven by the storm, repeatedly strike plaintiffs' dock, house, and deck. There was no dispute that water infiltrated plaintiffs' yard prior to the entry of the boats. Plaintiffs spent $286,280 to repair damaged items from the storm.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
CA Supreme Court Permits Insurers to Bring Direct Actions Seeking Reimbursement of Excessive Fees Against Cumis Counsel Under Limited Circumstances
August 19, 2015 —
David W. Evans & Valerie A. Moore – Haight Brown & Bonesteel LLPThe California Supreme Court held in Hartford Casualty Insurance Company v. J.R. Marketing, L.L.C. (Squire Sanders) (8/10/2015 - #S211645) that if Cumis counsel, operating under a court order which such counsel drafted and which expressly provided that the insurer would be able to recover excessive fees, sought and received fee payments from the insurer that were fraudulent or otherwise manifestly and objectively useless and wasteful when incurred, Cumis counsel have been unjustly enriched at the insurer’s expense and the insurer will be permitted under such limited circumstances to seek reimbursement directly from Cumis counsel.
Certain Hartford insureds who had been issued commercial general liability policies were sued in multiple proceedings for a variety of claims, including unfair competition, defamation and intentional misrepresentation. Hartford disclaimed a duty to defend or to indemnify the defendants on the grounds that the acts complained of occurred prior to Hartford’s policy, and that some of the defendants were not Hartford insureds. A coverage action was filed by some of the insureds against Hartford; they were represented by the Squire Sanders law firm. Although Hartford subsequently agreed to defend several of the defendants subject to a reservation of rights, it declined to pay defense expenses incurred prior to the date of such agreement. Some months later, the trial court entered a summary adjudication order, finding that Hartford had a duty to have defended the liability action on the date it was originally tendered; the order required Hartford to fund the insured’s defense with independent counsel (i.e., so-called “Cumis” counsel; see San Diego Federal Credit Union v. Cumis Insurance Society, Inc. (1984) 162 Cal.App.3d 358). The insureds retained Squire Sanders as their Cumis counsel.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Just Because You Caused it, Doesn’t Mean You Own It: The Hooker Exception to the Privette Doctrine
March 06, 2023 —
Garret Murai - California Construction Law BlogWe’ve written before about the Privette doctrine, which establishes a presumption that a hirer of an independent contractor delegates to the contractor all responsibility for workplace safety. In other words, if a general contractor hires a subcontractor, the subcontractor is solely responsible for the safety of its workers.
There are two major exceptions to the Privette doctrine. The first, the Hooker exception, holds that a hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the worker’s injury. The second, the Kinsman exception, holds that a hirer may be liable for injuries sustained by a worker of an independent contractor if the hirer knew, or should have known, of a concealed hazard on the property that the contractor did not know of and could not have reasonably discovered and the hirer failed to warn the contractor of the hazard.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Ohio: Are Construction Defects Covered in Insurance Policies?
January 09, 2015 —
Beverley BevenFlorez-CDJ STAFFAmanda M. Leffler of Brouse McDowell analyzed Ohio’s 2012 Supreme Court case Westfield Ins. Co. v. Custom Agri Sys., Inc., which ruled that “’[c]laims of defective construction or workmanship brought by a property owner are not claims for ‘property damage’ caused by an ‘occurrence’ under a commercial general liability policy.’”
Leffler stated that the Ohio Supreme Court decision wasn’t as “sweeping” as it might at first appear: “Rather, the Ohio Supreme Court adopted the rule that construction defects are covered ‘occurrences’ within the meaning of commercial general liability (‘CGL’) policies, but only to the extent that property other than the policyholder’s own work is damaged.“
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