Suit Limitation Provision Upheld
March 04, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe policy's one year suit limitation provision was upheld, depriving insureds of benefits under the policy. Oswald v. South Central Mut. Ins. Co., 2018 Minn. App. Unpub. LEXIS 1077 (Dec. 24, 2018).
The Oswalds' hog barn burned down on June 21, 2016. Arson was a possible cause.
The Oswalds were insured under a combination policy issued by North Star Mutual Insurance Company and South Central Mutual Insurance Company. Central provided coverage for basic perils, broad perils, and limited perils, which included fire losses. The Central policy required property claims to be brought within one year after the loss. By endorsement, the North Star policy required suits be brought within two years after the loss. Presumably, the claims was denied, although the decision does not state this.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
When Does a Claim Against an Insurance Carrier for Failing to Defend Accrue?
November 07, 2012 —
David McLain, Colorado Construction LitigationThe following is an update on our December 20, 2010 article regarding United States Fire Insurance Company v. Pinkard Construction Company, Civil Action No. 09-CV-01854-MSK-MJW, and its underlying dispute, Legacy Apartments v. Pinkard Construction Company, Case No. 2003 CV 703, Boulder County Dist. Ct. That article can be found here.
The present action, St. Paul Fire and Marine Insurance Co., et al. v. The North River Insurance Co., et al., Civil Action No. 10-CV-02936-MSK-CBS, encompasses the coverage battle that ensued between Pinkard’s insurers, Travelers Indemnity Company of America (“Travelers”) and United States Fire Insurance Company (“USFI”), following the settlement of Legacy’s construction defect claims against Pinkard. A short history of the underlying facts is as follows:
In 1995, Pinkard constructed the Legacy Apartments housing complex in Longmont, Colorado. Following construction, Legacy notified Pinkard of water leaks associated with various elements of construction. Legacy ultimately filed suit against Pinkard in 2003, and would go on to clarify and amend its defect claims in 2004, 2006, and again in 2008. Following Pinkard’s notification of Legacy’s claims, USFI provided a defense to Pinkard, but Travelers refused to do so, on the purported basis that Legacy’s allegations did not implicate property damage under the terms of Travelers’ policy.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain can be contacted at
mclain@hhmrlaw.com
Harlem Developers Reach Deal with Attorney General
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFJoseph Scarpinito and Shiraz Sanjana, developers of the Mirada condominium in Harlem, New York can avoid a contempt charge from state Attorney General Eric Schneiderman, “if they make the required repairs and obtain a permanent certificate of occupancy at the property,” according to The Real Deal.
Scarpinito and Sanjana “agreed to deposit $200,000 into an escrow account and make repairs to stop flooding and other defects at the 161 East 110th Street condo, which are required to obtain a certificate of occupancy from the city Department of Buildings.”
Last December, the Attorney General “filed suit against the developers, alleging they submitted false filings to his office in claiming that Scarpinito’s 83-year-old mother was the actual developer of the 68-unit condo.” Furthermore, the condo board lawyers submitted a complaint to Schneiderman “detailing extensive defects in the building, including water leaks entering the building from the roof and façade.”
The developers have been ordered “to submit weekly reports to the AG’s office detailing progress on the repairs and obtaining the certificate of occupancy.”
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Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent
June 05, 2017 —
Erik G. Nielsen - Snell & Wilmer Legal AlertColorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue developers for workmanship issues, however trivial. As a result, Colorado has seen significant growth in the development of rental apartments, while development of new, for-sale, multi-unit housing, has declined in the state. In 10 years, new condo development in Colorado dropped from 20 percent to just 3 percent of total new-housing starts. Recognizing this issue, Governor Hickenlooper and the Colorado Legislature have taken an interest in reforming CDARA by, among other things, making it more difficult for condo boards and associations to sue construction professionals. Well on its way to becoming law, HB 17-1279 does exactly that.
After the enactment of HB 17-1279, the executive boards of homeowners’ associations (HOA) in common interest communities will have to satisfy three broad elements before bringing suit against a construction professional on behalf of the community’s individual unit owners.
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Erik G. Nielsen, Snell & WilmerMr. Nielsen may be contacted at
egnielsen@swlaw.com
Construction Litigation Roundup: “The Jury Is Still Out”
October 30, 2023 —
Daniel Lund III - Lexology“The Seventh Amendment guarantees the right to a trial by jury for a legal claim in a civil action.” So, isn’t the law, well, the law?
Well, perhaps.
Some axioms to remember in contracting are that parties are typically able to agree in a contract to anything that is lawful, and that all such lawful agreements essentially become the “law” between the parties. It is on these principles that courts issue jurisprudence which becomes binding on future litigants – for example, concerning waiver of any right to trial by jury.
Hence, when a second-tier subcontractor on a federal project sought a jury for a lawsuit it had against a general contractor’s sureties, the sub was successfully rebuffed by the sureties based upon a waiver to trial by jury contained in the relevant subcontract. The court noted various matters to be considered in connection with the generally enforceable jury waiver – including the conspicuousness of the waiver (and, therefore, whether the subcontractor “knowingly” agreed to the waiver), as well as the relative bargaining power of the parties to the agreement (here, the sub was self-proclaimed to be a “leader in the construction contracting field”) – and affirmed the legality of the waiver.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Department Of Labor Recovers $724K In Back Wages, Damages For 255 Workers After Phoenix Contractor Denied Overtime Pay, Falsified Records
February 01, 2023 —
U.S. Department of LaborPHOENIX – The U.S. Department of Labor has recovered $724,082 in back wages and damages for 255 employees of an electrical contractor in Phoenix who denied them overtime wages and falsified records.
An investigation by the department’s
Wage and Hour Division found IES Residential – a subsidiary of one of the nation’s largest electrical, HVAC and plumbing, solar and cable installation contractors – capped employees’ overtime at eight hours despite some employees working up to 60 hours in a workweek.
The division also learned the employer told workers – some who arrived as early as 4:45 a.m. and worked as late as 7 p.m. to record 40 hours or less on their timesheets unless their overtime was pre-approved. When IES Residential did approve, the employer limited overtime to eight hours per week even when employees worked as many as 23 hours of overtime in a workweek.
“The U.S. Department of Labor will hold employers accountable for wage theft, particularly in cases like this one, where IES Residential deliberately attempted to evade the law by instructing employees to falsify timesheets to avoid paying overtime wages,” said Wage and Hour Division District Director Eric Murray in Phoenix. “Employers who fail to pay workers their full wages may face costly consequences, including penalties for intentional acts to cover-up their violations.”
In fiscal year 2022, the division
recovered nearly $32.9 million in back wages for 17,127 construction industry workers. The division completed more than 2,200 investigations in FY22 in the construction industry and by wages recovered, the industry ranks second among the division’s low wage, high violation industries.
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DC Circuit Issues Two Important Clean Air Act and Administrative Law Decisions
December 16, 2019 —
Anthony B. Cavender - Gravel2GavelThe U.S. Court of Appeals or the District of Columbia has recently issued two important rulings on the Clean Air Act in particular and administrative law in general: California Communities Against Toxics, et al., v. EPA and Murray Energy Corporation v. EPA.
The Battle of the Memos: Seitz Makes Way for Wehrum
In the California Communities case, decided on August 20, 2019, the court held, in a 2 to 1 decision, that a petition to review a change in EPA policy announced in an agency memorandum which reversed an agency policy announced nearly 25 years ago in another agency memo must be rejected because the memo at issue was not a “final agency action” subject to the Administrative Procedure Act (APA). In 1995, the “Seitz Memo,” which interpreted Section 112 of the Clean Air Act and addresses the regulation and control of hazardous air pollutants from stationary sources, stated that once a source of toxic emissions is classified as “major,” the facility remains subject to regulation as a major source even if the facility makes changes to the facility to limit its potential to emit such toxics below the major source threshold. Then, in 2018 under a new administration, the “Wehrum Memorandum” was issued which reversed this policy and its interpretation of the law. (Both memos were issued without any kind of advance notice or opportunity to comment.) If a source takes steps to limit its potential to emit, then it may be regulated as an area source, and subject to less rigid regulation. The court majority held that the Wehrum Memo was not a final agency action and was not subject to judicial review when it was measured against both prongs of the “finality test” devised by the Supreme Court in the cases of Bennet v. Spear, 520 US 154 (1997) and US Army Corps of Engineers v. Hawkes, 136 S. Ct. 1807 (2016). While the memo undoubtedly represented the consummation of the agency’s decision-making process, the memo had no direct and appreciable legal consequences, and not therefore being a final action, the case must be dismissed. Judge Rogers filed a strong dissenting opinion.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Number of Occurrences Is On the Agenda at This Year's ICLC Seminar
February 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThis year's Insurance Coverage Litigation Committee's CLE Seminar will be conducted in Tucson, Arizona, from March 4-7, 2015. Each year, the conference offers informative, cutting-edge sessions on a variety of insurance-related topics. Participants from across the country with varying perspectives on insurance coverage, including lawyers, judges, risk managers, and insurance professionals, will be attendance. The seminar's brochure is attached
here.
"Number of Occurrences" will be the topic my panel presents on March 7. We will be honored to have on our panel Alaska Supreme Court Justice Peter Maassen, my old skiing and running buddy from my Alaska days. Justice Maassen's opinion in United Servs. Auto. Ass'n. v. Neary, 307 P.3d 907 (Alaska 2013) was the genesis for our topic.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com