Federal Judge Refuses to Limit Coverage and Moves Forward with Policyholder’s Claims Against Insurer and Broker
December 07, 2020 —
Michael S. Levine & Casey L. Coffey - Hunton Insurance Recovery BlogOn November 10, 2020, a New York federal judge dismissed an insurer’s counterclaims seeking to cap its exposure under a $15 million sublimit and an order estopping the policyholder from pursuing any additional amounts.
In February 2017, Plaintiff Pilkington North America, Inc. (Pilkington), suffered between $60 and $100 million in damage from a tornado that struck its glass manufacturing factory in Illinois. Pilkington sought coverage for its loss under a commercial property and business interruption policy issued by Defendant Mitsui Sumitomo Insurance Company (MSI). Pilkington also claimed its insurance broker, Aon Risk Services Central, Inc. (Aon), is liable for faulty advice provided while brokering the policy. Aon’s negligence allegedly gave way to MSI’s fraudulent revision of the insurance policy, which caused the losses from the tornado to not be fully compensable.
Pilkington’s fraud and faulty brokering claims stem from MSI’s revision of an endorsement contained in the policy. The revision changed the wording of a windstorm sublimit. Allegedly, Aon was informed by MSI of the changes and failed to inform Pilkington that the revision would substantially reduce coverage for windstorms, including tornados.
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Michael S. Levine, Hunton Andrews KurthMr. Levine may be contacted at
mlevine@HuntonAK.com
White and Williams Earns National "Best Law Firm" Rankings from US News
November 02, 2017 —
White and Williams LLPWhite and Williams has achieved national recognition from US News and World Report as a "Best Law Firm" in the practice areas of Insurance Law and Media Law. Our Philadelphia, Boston, and New York offices have also been recognized in their respective metropolitan regions in several practice areas. Firms included in the “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal experience.
National Tier 1
Insurance Law
National Tier 3
Media Law
Metropolitan Tier 1
Boston
Insurance Law
Product Liability Litigation - Defendants
Philadelphia
Personal Injury Litigation - Defendants
Real Estate Law
Tax Law
Metropolitan Tier 2
Philadelphia
Appellate Practice
Commercial Litigation
Construction Law
First Amendment Law
Insurance Law
Legal Malpractice Law- Defendants
Media Law
Trust & Estates Law
Metropolitan Tier 3
New York City
Bankruptcy and Creditor Debtor Rights/ Insolvency and Reorganization Law
Philadelphia
Patent Law
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Three Steps to a Safer Jobsite
January 18, 2021 —
Deb Hilmerson - Construction ExecutiveCreating a conscious and robust safety culture is essential to the bottom line. A history of, and reputation for, stringent safety protocols will help contractors win more bids and reduce potential exposure to costly fines. According to OSHA, one out of every five worker deaths is construction-related. Non-fatal construction-related injuries are rising.
Now is not the time to be complacent, even for contractors with a clean, or relatively clean, safety record. Situations are changing and, in some cases, better, safer and more efficient options are becoming available. There are three areas of concern that deserve construction executives’ close attention.
Safety Glasses or Face Shield Concerns in the Wake of COVID-19
Facial and eye injuries can occur any time a worker is nailing, cutting, grinding, welding, working with concrete or handling hazardous chemicals. Now with COVID-19 protocols requiring face coverings, there is an unanticipated aggravation: fogged safety glasses.
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Deb Hilmerson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Design and Construction Defects Not a Breach of Contract
February 14, 2013 —
CDJ STAFFThe California Court of Appeals tossed out a breach of contract award in Altman v. John Mourier Construction. The decision, which was issued on January 10, 2013, sent the construction defect case back to a lower court to calculate damages based on the conclusions of the appeals court.
The case involved both design issues and construction issues. According to the plaintiffs’ expert, the design plans did not make the buildings sufficiently stiff to resist the wind, and that the framing was improperly constructed, further weakening the structures, and leading to the stucco cracking. Additionally, it was alleged that the roofs were improperly installed, leading to water intrusion. The contractor’s expert “agreed the roofs needed repair, but disputed what needed to be done to repair the roofs and the cost.”
The jury rejected the plaintiffs’ claims of product liability and breach of warranty, but found in their favor on the claims of breach of contract and negligence. The plaintiffs were awarded differing amounts based on the jury’s conclusions about their particular properties.
Both sides sought new trials. JMC, the contractor, claimed that the jury’s verdicts were “inconsistent in that the relieved JMC of liability for strict products liability and breach of warranty, but found JMC liable for breach of contract and negligence.” The plaintiffs “opposed the setoff motion on the ground that the jury heard evidence only of damages not covered by the settlements.” Both motions were denied. After this, the plaintiffs sought and received investigative costs as damages. JMC appealed this amended judgment.
The appeals court rejected JMC’s claims that evidence was improperly excluded. JMC sought to introduce evidence concerning errors made by the stucco subcontractor. Earlier in the trial, JMC had insisted that the plaintiffs not be allowed to present evidence concerning the stucco, as that had been separately settled. When they wished to introduce it themselves, they noted that the settlement only precluded the plaintiffs from introducing stucco evidence, but the trial court did not find this persuasive, and the appeals court upheld the actions of the trial court. Nor did the appeals court find grounds for reversal based on claims that the jury saw excluded evidence, as JMC did not establish that the evidence went into the jury room. Further, this did not reach, according to the court, a “miscarriage of justice.”
The court rejected two more of JMC’s arguments, concluding that the negligence award did not violate the economic loss rule. The court also noted that JMC failed to prove its contention that the plaintiffs were awarded damages for items that were covered in settlements with the subcontractors.
The appeals court did accept JMC’s argument that the award for breach of contract was not supported by evidence. As the ruling notes, “plaintiffs did not submit the contracts into evidence or justify their absence; nor did plaintiffs provide any evidence regarding contract terms allegedly breached.”
The court also did not allow the plaintiffs to claim the full amount of the investigative costs. Noting that the trial court had rational grounds for its decision, the appeals court noted that “the jury rejected most of the damages claimed by plaintiffs, and the trial court found that more than $86,000 of the costs itemized in plaintiffs’ invoices ‘appear questionable’ as ‘investigation’ costs/damages and appeared to the trial court to be litigation costs nonrecoverable under section 1033.5.”
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A Guide to Evaluating Snow & Ice Cases
December 13, 2021 —
Lewis BrisboisNew York, N.Y. (November 9, 2021) - As the winter season nears, defendant property owners are reminded that New York law imposes liability for sidewalk accidents resulting from slip and falls on snow and ice. Within the City of New York, Administrative Code § 7-210 imposes liability on the owners of real property (other than single-family dwellings) to maintain an abutting sidewalk in a reasonably safe condition, which includes the removal of snow and ice.
Some of the most important issues in this area of the law were recently reaffirmed by New York’s Appellate Division in Zamora v. David Caccavo, LLC, 190 A.D.3d 895 (2d Dept. 2021). In particular, that the Court of Appeals made clear in 2019 that the statutory non-delegable duty to remove snow and ice from sidewalks extends even to out-of-possession landowners, who, although they may shift the work of maintaining the sidewalk to another, "cannot shift the duty, nor exposure and liability for injuries caused by negligent maintenance, imposed under [Administrative Code §] 7-210." Xiang Fu He v. Troon Mgt., Inc., 34 N.Y.3d 167, 174 (2019). In other words, even if the defendant leases the property to a tenant who is obligated under the lease to maintain the property in every way, including snow and ice on sidewalks, the defendant cannot escape liability by claiming the tenant is solely responsible for the plaintiff’s loss. On the other hand, property owners are not strictly liable for all personal injuries that occur on the abutting sidewalks, because the statute "adopts a duty and standard of care that accords with traditional tort principles of negligence and causation." Xiang Fu He v. Troon Mgt., Inc., 34 N.Y.3d at 171.
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Lewis Brisbois
Industrialized Construction News 7/2022
August 15, 2022 —
Aarni Heiskanen - AEC BusinessThe
AEC Business newsletter’s Industrialized Construction edition in July featured the following news stories:
The Pros and Cons of Offsite Construction – A French Research Study
The study is titled The current use of industrialized construction techniques in France: Benefits, limits and future expectations. The authors are Emna Attouri, Zoubeir Lafhaj, Laure Ducoulombierb and Bruno Linéatte.
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Rise of the machines? For Construction, Not Yet
Matthew Thibault’s article examines the opportunities and challenges of construction robotics. Robots can improve safety and productivity, but the ROI is still unclear to many contractors.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Insurance Measures Passed by 2015 Hawaii Legislature
June 10, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe 2015 Hawaii legislative session passed three insurance-related bills which have all been signed by the governor. Bills that have been enacted are the following:
SB0589 - We previously devoted this post to the legislation. The bill provides relief for residents in lava zones on the Big Island. The bill limits the number of property policies that an insurer can refuse to renew in a lava zone. Further, a moratorium on the issuance of policies can be lifted in a state of emergency due to the threat of imminent disaster from a lava flow.
SB0736 - Provisions relating to reimbursement for accident and health or sickness insurance benefits are amended. Further, the bill provides that prior to initiating any recoupment or offset demand efforts, an entity must send a written notice to the health care provider at least 30 days prior to engaging in recoupment or offset efforts. An entity may not initiate recoupment or offset efforts more than 18 months after the initial claim payment was received by the health care provider or health care entity.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Defect Litigation at San Diego’s Alicante Condominiums?
March 25, 2011 —
Alicante HOA WebsiteAccording to recent posts in the Alicante HOA website, construction experts and legal counsel have been retained. The HOA board has been informed that testing of a variety of the building’s components are underway or will begin in the near future.
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