BP Is Not an Additional Insured Under Transocean's Policy
April 01, 2015 —
Tred R. Eyerly – Insurance Law HawaiiResponding to a certified question from the Fifth Circuit, the Texas Supreme Court determined that BP was not an additional insured under Transocean's liability policy and had no coverage under the policy for the deaths caused by the explosion of the Deepwater Horizon. In re Horizon, 2015 Tex. LEXIS 141 (Tex. Feb. 13, 2015). We have previously posted on this case in the federal courts here and here.
Transocean owned the Deepwater Horizon, a mobile offshore drilling unit operating in the Gulf of Mexico pursuant to a contract with BP. After an explosion in April 2010, the rig caught fire, killing eleven crew members. Both Transocean and BP sought coverage under Transocean's primary and excess policies. Although they did not dispute that BP was an additional insured, Transocean and its insurers argued that BP was not entitled to coverage for pollution-related liabilities arising from subsurface oil releases in connection with the Deepwater Horizon accident.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newmeyer & Dillion Ranked Fourth Among Medium Sized Companies in 2016 OCBJ Best Places to Work List
September 01, 2016 —
Newmeyer & Dillion LLPProminent business and real estate law firm
Newmeyer & Dillion LLP is proud to announce that it has been ranked fourth among medium sized companies in the
Best Places to Work in Orange County – 2016 Survey. The firm was the only law firm to make the top 25 of its category. This marks the fifth consecutive year Newmeyer & Dillion LLP has made the list showing that its deep commitment to professionalism and client service is shared and appreciated by its workforce.
Jeff Dennis, Newmeyer & Dillion’s Managing Partner, believes the award is representative of the team effort and atmosphere that is fostered at the firm. “We believe that client satisfaction goes hand-in-hand with work-place satisfaction. By combining an environment in which individual effort is recognized, with a team approach in which everyone is respected, we have achieved the perfect balance for success. We are honored that our employees appreciate our efforts in this regard.”
Created in 2009, the awards program evaluates entries based on workplace policies, practices, demographics and also collects employee surveys to measure overall satisfaction and experience. The Best Companies Group worked alongside the Orange County Business Journal in collecting and analyzing the data and is a partner in the project.
Newmeyer & Dillion has been honored in the July 25 issue of the Orange County Business Journal. For more information on the survey process and to see other award recipients contact Jackie Miller at 877-455-2159 or visit www.BestPlacestoWorkOC.com.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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“Slow and Steady Doesn’t Always Win the Race” – Applicability of a Statute of Repose on Indemnity/Contribution Claims in New Hampshire
November 24, 2019 —
Rahul Gogineni - The Subrogation StrategistIn Rankin v. South Street Downtown Holdings, Inc., 2019 N.H. LEXIS 165, the Supreme Court of New Hampshire considered, pursuant to a question transferred by the trial court, whether RSA 508:4-b, the statute of repose for improvements to real property, applies to indemnity and contribution claims. The court concluded that based upon the plain reading of the statute, it applies to indemnity and contribution claims. As noted by the court, a holding to the contrary would violate the intent of a statute of repose, which is to establish a time limit for when a party is exposed to liability.
In Rankin, after falling and injuring himself while leaving a building, John Rankin and his wife brought an action against the property owner, South Street Downtown Holding, Inc. (South Street) in 2017. South Street subsequently filed a third-party complaint against multiple parties including an architectural company, Wagner Hodgson, Inc. (Wagner), who was involved in a renovation project at the property. The project was substantially complete in 2009. Wagner responded by moving to dismiss the action, arguing that South Street’s indemnification and contribution claims were barred by the applicable statute of repose.
RSA 508:4-b specifically states,
Except as otherwise provided in this section, all actions to recover damages for injury to property, injury to the person, wrongful death or economic loss arising out of any deficiency in the creation of an improvement to real property, including without limitation the design, labor, materials, engineering, planning, surveying, construction, observation, supervision or inspection of that improvement, shall be brought within 8 years from the date of substantial completion of the improvement, and not thereafter. (Emphasis added).
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Rahul Gogineni, White and Williams LLPMr. Gogineni may be contacted at
goginenir@whiteandwilliams.com
Giant Gas Pipeline Owner, Contractor in $900M Payment Battle
January 22, 2024 —
David Godkin, Debra K. RubinA Canadian partnership including energy developer TC Energy that is building the $10.6-billion Coastal GasLink pipeline, and a key project contractor, are disputing more than $900 million in project costs in court and in upcoming arbitration. The 670-kilometer line in British Columbia that announced mechanical completion last year is set to carry liquefied natural gas to the LNG Canada export terminal under construction on the province’s Pacific Coast—the country’s first such facility.
Reprinted courtesy of
David Godkin, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. Rubin may be contacted at rubind@enr.com
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Funding the Self-Insured Retention (SIR)
August 17, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnlike a deductible, a self-insured retention (referred to an “SIR”) is, as the name suggests, a self-insured obligation of the insured before its insurer picks up coverage. The SIR needs to be exhausted by the insured (as the primary self-insurance component) before the carrier’s excess defense and indemnification obligations kick-in under the terms of the policy. However, an insured can generally exhaust an SIR by paying legal fees and costs associated with a claim.
Oftentimes, the language in the policy requires the SIR to be paid for by the named insured or an insured under the policy. This was an issue addressed by the Florida Supreme Court in Intervest Const. of Jax, Inc. v. General Fidelity Ins. Co., 133 So.3d 494 (Fla. 2014).
In this matter, a personal injury claimant asserted a claim against the contractor dealing with a residential home. The contractor hired a subcontractor to install attic stairs and the subcontract required the contractor to indemnify it. The owner of the house injured herself on the attic stairs and sued the contractor. The contractor, in turn, sought indemnification against the subcontractor that installed the attic stairs.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The (Jurisdictional) Rebranding of The CDA’s Sum Certain Requirement
April 15, 2024 —
Jordan A. Hutcheson and Stephanie Rolfsness - Watt TiederThe Contract Disputes Act (the “CDA”), 41 U.S.C.A. §§ 7101 et seq., which has provided the statutory framework for resolution of most contract disputes between the federal government and its contractors since 1978, has recently been the subject of changes in judicial interpretation, despite no corresponding statutory changes. The CDA’s implementing provisions in the Federal Acquisition Regulations (FAR), require that contractors submit a claim to the government in the form of written demand to a contracting officer requesting a final decision and seeking the payment of money in a sum certain prior to pursuing resolution via board or court. However, with respect to the sum certain requirement, the United States Court of Appeals for the Federal Circuit issued an opinion in late 2023 determining that this requirement “should not be given the jurisdictional brand” as it has categorically received in the past. Rather, the court concluded that the sum certain requirement is merely an element of a claim for relief under the CDA that a contractor must satisfy to recover. This rebranding does not debase the sum certain requirement, but it does indicate a renewed focus on what constitutes “jurisdictional” in government contracts litigation.
Reprinted courtesy of
Jordan A. Hutcheson, Watt Tieder and
Stephanie Rolfsness, Watt Tieder
Ms. Hutcheson may be contacted at jhutcheson@watttieder.com
Ms. Rolfsness may be contacted at srolfsness@watttieder.com
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Insurance Company’s Reservation of Rights Letter Negates its Interest in the Litigation
November 12, 2019 —
Frank Ingham - Colorado Construction LitigationThe Colorado Court of Appeals held that an insurance company, which issues a reservation of rights letter to its insured, loses its interest in the litigation, pursuant to C.R.C.P. 24(a)(2), when the insured settles the claims and assigns the bad faith action against the insurance company to the plaintiff. Bolt Factory Lofts Owners Association, Inc. v. Auto-Owners Insurance Company, 2019WL 3483901(Colo. App. 2019).
In a 2016 lawsuit in Denver District Court, 2016CV3360, the Bolt Factory Loft Owners Association, Inc. (“Association”) asserted construction defect claims against six contractors. Two of those contractors then asserted claims against other subcontractors, including Sierra Glass Co., Inc. (“Sierra Glass”). After multiple settlements, the only remaining claims were those the Association, as assignee of the two contractors, asserted against Sierra Glass.
Auto-Owners Insurance Company (“AOIC”) issued policies to Sierra Glass and defended it under a reservation of rights. The policy afforded AOIC the right to defend Sierra Glass, and it required Sierra Glass to cooperate in the defense of the legal action. The Association presented a settlement demand of $1.9 million to Sierra Glass, which AOIC refused to pay. To protect itself from an excess judgment that AOIC might not have paid, Sierra Glass entered into an agreement with the Association whereby Sierra Glass would refrain from offering a defense at trial and assign its bad faith claim against AOIC to the Association in exchange for the Association’s promise that it would not pursue recovery against Sierra Glass of any judgment entered against it at trial. Such agreements, known as Bashor or Nunn Agreements, are allowed in Colorado. Nunn v. Mid-Century Insurance Co., 244 P.3d 116 (Colo. 2010). Therefore, Sierra Glass was entitled to protect itself in the face of AOIC’s potential denial of coverage and refusal to settle. Bolt Factory Lofts, at ¶ 15.
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Frank Ingham, Higgins, Hopkins, McLain & Roswell, LLCMr. Ingham may be contacted at
ingham@hhmrlaw.com
Court Calls Lease-Leaseback Project What it is: A Design-Bid-Build Project
August 19, 2015 —
Garret Murai – California Construction Law BlogFirst there was “Prince.”
Then there was “The Artist Formerly Known as Prince.”
Then there was “The Artist Formerly Known as Prince (Because he Changed His Name to a Symbol), But Then Realized That No One Could Pronounce the Symbol (and What Good is a Symbol if Everyone Has to Wave Their Hands Wildly at You to Get Your Attention or Scream ‘Hey You!’), and So Changed His Name Back to Prince Again.”
Whatever name (or symbol) he was going by, everyone knew him as the guy who told us to party like it was 1999 (when 1999 still seemed like the distant future), who sang about a girl with a “pocket full of horses” (which totally flew past my junior high school brain at the time), and gave us such great metaphors as “if the elevator tries to bring you down, go crazy, punch a higher floor!”
Like Prince or his symbol, sometimes it doesn’t matter what label you put on something when everyone knows what that something is. In law, we call it looking at the “substance” rather than its “form.” And, in the next case, Davis v. Fresno Unified School District, the California Court of Appeals for the Fifth District made quick work of a purported “lease-leaseback” project – a project delivery method available to school districts whereby a school district leases property it owns to a developer for a minimum of $1, who in turns builds a school facility on the site and leases the facility and the site back to the school district, who in turn takes ownership of the facility and site at the end of the lease – and called it for what it was: a run-of-the-mill “design-bid-build” project.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
