Discovery Requests in Bad Faith Litigation Considered by Court
June 10, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court considered a variety of discovery requests by the insured in a bad faith case against State Farm. Stephens v. State Farm Fire and Cas. Co., 2015 WL 1638516 (M.D. Pa. April 13, 2015).
The insured plaintiff was a quadriplegic. His complaint alleged that he notified State Farm, through its agent, that he would have to leave his residence for medical treatment and intended to rent the home while he received care for his disabling condition. The complaint further alleged that the insured was told by State Farm's agent that his insurance would remain unaffected by his departure while he sought medical care. Nevertheless, when the insured reported loss due to vandalism and water damage at his home, State Farm relied upon his departure from the residence to cancel his insurance.
In discovery, the insured requested three categories of documents from State Farm. First, he requested State Farm's claims manuals, guidelines and instructions materials relating to insurance claims like those made by this insured. Second, the plaintiff requested performance reviews and performance incentive programs for all of State Farm's employees who played a role in decisions in this case from 2009 to the present. Finally, the plaintiff demanded that State Farm compile information relating to other insurance lawsuits brought against State Farm involving theft, vandalism and water damage claims, as well as all lawsuits or complaints regarding the conduct of this particular claims adjuster. When the materials were not produced, plaintiff filed a motion to compel.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Contract Language and Insurance Coverage Must Be Consistent
July 30, 2015 —
Craig Martin – Construction Contract AdvisorHow often do you review both the additional insured language in the contract and the insurance policy provided by a subcontractor? My guess is, unless the project has gone off the rails, NEVER. Well, perhaps you should to make absolutely sure the extent of the subcontractor’s insurance obligations and whether those obligations are being fulfilled.
This point was recently addressed in a recent DRI article analyzing the Deepwater Horizon/BP lawsuit. My partner, Anne Marie O’Brien, also blogged on this a few months ago.
As you will recall, Transocean’s Deepwater Horizon oil-drilling rig exploded, killing 11 workers, and polluted the Gulf of Mexico. BP demanded that Transocean’s insurer pay for the loss. Transocean’s insurer said no, and the litigation ensued, in state court, federal court, and the Texas Supreme Court. It was quite an odyssey of litigation.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
A Recap of the Supreme Court’s 2019 Summer Slate
September 16, 2019 —
Anthony B. Cavender - Gravel2GavelAs usual, the last month of the Supreme Court’s term generated significant rulings on all manner of cases, possibly presaging the new directions the Court will be taking in administrative and regulatory law. Here’s a brief roundup:
An Offshore Dispute, Resolve – Parker Drilling Management v. Newton
On June 10, 2019, the Court held, in a unanimous ruling, that, under federal law, California wage and hour laws do not apply to offshore operations conducted on the Outer Continental Shelf (OCS). Newton, the plaintiff, worked on drilling platforms off the coast of California, and alleged that he was not paid for his “standby time” which is contrary to California law if not federal law. He filed a class action in state court, which was removed to federal court, where it was dismissed on the basis of a 1969 decision of the U.S. Court of Appeals for the Fifth Circuit, which held that state law applies on the OCS only to the extent that it is necessary to use state law to fill a significant gap or void in federal law, and this is not the case here. On appeal to the Ninth Circuit, that court disagreed with the Fifth Circuit, and ruled that state law is applicable on the OCS whenever it applies to the matter at hand. The Supreme Court, in an opinion written by Justice Thomas, conceded that “this is a close question of statutory interpretation,” but in the end the Court agreed with the argument that if there was not a gap to fill, that ended the dispute over which law applies on the Outer continental Shelf. This ruling, recognizing the preeminent role that federal law plays on the OCS, may affect the resolution of other offshore disputes affecting other federal statutes.
Preemption Prevention – Virginia Uranium, Inc. v. Warren. et al.
On June 17, 2019 the Court decided important cases involving federal preemption and First Amendment issues. In a 6-to-3 decision, the Court held that the Atomic Energy Act does not preempt a Virginia law that “flatly prohibits uranium mining in Virginia”—or more precisely—mining on non-federal land in Virginia. Virginia Uranium planned to mine raw uranium from a site near Coles, Virginia, but acknowledging that Virginia law forbade such an operation, challenged the state law on federal preemption grounds, arguing that the Atomic Energy Act, as implemented by the Nuclear Regulatory Commission, preempts the ability of the state to regulate this activity. However, the majority, in an opinion written by Justice Gorsuch, notes that the “best reading of the AEA does not require us to hold the state law before us preempted,” and that the1983 precedent that Virginia Uranium cites, Pacific Gas & Electric Company v. State Energy Resources Conservation and Development Commission, can easily be distinguished. Justice Gorsuch rejected arguments that the intent of the Virginia legislators in passing the state law should be consulted, that the Court’s ruling should normally be governed by the exact text of the statute at hand. However, both the concurring and dissenting opinions suggest that the what the legislators intended to do is important in a preemption context.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Downtown Sacramento Building Riddled with Defects
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Board of Equalization tower in Sacramento, California has gone through $60 million in repairs to deal with issues such as bats, floods, leaky windows, mold, and glass panels that would “pop off the building with no warning and shatter on the sidewalk,” according to Insurance News. However, an additional $115 million in repairs are planned to deal with “crumbling core plumbing” and “concrete-and-glass exterior,” among other problems.
Now, “a Sacramento attorney filed a $50 million tort claim this month, a first step toward suing the tax-collecting department on behalf of employees who say their bosses downplayed the building's ailments and put workers' health at risk.”
"Even though my lawyers told me not to say this, I don't think it's safe," board Chairman Jerome Horton told Insurance News.
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Happy Thanksgiving from CDJ
November 27, 2013 —
CDJ STAFFAs Thanksgiving kicks off this holiday season, all of us at CDJ would like to gratefully acknowledge all of our valued readers and contributors in the construction defect and claims community. This November marks CDJ’s third anniversary. With your continued support we are looking forward to expanded coverage and features in our 4th year. Best wishes to you and yours this holiday season!
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Apple to Open Steve Jobs-Inspired Ring-Shaped Campus in April
February 23, 2017 —
Adam Satariano - BloombergApple Inc. co-founder Steve Jobs’ last public event in 2011 was a city council meeting in Cupertino, California, where he presented plans for a sprawling new campus with a spaceship-shaped building and tree-filled park. Apple announced Wednesday that it will begin moving employees into the 2.9 million-square-foot facility in April.
Apple said a new 1,000-seat auditorium at the facility will be named the Steve Jobs Theater in honor of its co-founder, who died four months after his city council presentation and would have turned 62 on Feb. 24.
As with many large-scale construction projects, Apple faced budget overruns and delays. The building cost an estimated $5 billion (though Apple has never said how much), and the opening date had initially been set for 2015.
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Adam Satariano, BloombergMr. Satariano may be followed on Twitter @satariano
Opoplan Introduces Generative AI Tools for Home-Building
February 06, 2023 —
Aarni Heiskanen - AEC BusinessOpoplan introduces its suite of generative AI architectural tools for builders and real estate brokers. The initiative intends to bridge the technological gap in custom home planning and building.
The tools introduced by the company also aim to reduce the overdependence on manual efforts and limited design options when it comes to lot analysis, design briefing, design planning, and many other pre-build tasks.
Through its AI-powered tools, Opoplan assists builders and home designers in saving time, money, and energy and more successfully close contracts, managing plans, and delivering single-family homes.
A series of tools for the home-building industry
Opoplan is headquartered in Dublin, Ireland, with a new US office in Raleigh, North Carolina, and was established in 2019. They provide pre-build house planning and design tools for custom builders, real estate brokers, and house designers.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
When a Construction Lender Steps into the Shoes of the Developer, the Door is Open for Claims by the General Contractor
February 18, 2015 —
Kevin Brodehl – California Construction Law BlogThank you to my partner Garret Murai for giving me the opportunity to post again on his excellent California Construction Law Blog. I am the author/editor of the Money and Dirt Blog, where I focus on issues relating to real estate investment, development, and secured lending.
On the
Money and Dirt Blog, I recently posted an
article on an interesting new secured lending opinion from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti. That blog post focused on guaranty liability, and the court’s holding that there are limits to the defenses that a guarantor can lawfully waive.
But that same decision also highlights valuable lessons regarding the relationship between construction lenders and general contractors in distressed projects, which I’ll cover here. In short, the court held that when a construction lender “steps into the shoes” of the developer to manage a distressed project, the lender might open the door to liability to the general contractor under theories of breach of contract and promissory estoppel.
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Kevin Brodehl, Wendel Rosen Black & Dean LLPMr. Bordehl may be contacted at
kbrodehl@wendel.com