California Appellate Court Holds “Minimal Causal Connection” Satisfies Causation Requirement in All Risk Policies
July 20, 2020 —
Scott P. DeVries & Michael S. Levine - Hunton Andrews KurthOn May 26, 2020, a California Court of Appeals (4th District) issued its decision in Mosley et al. v. Pacific Specialty Ins. Co. The case arose in the context of a marijuana-growing tenant who rerouted a home’s electrical system and caused an electrical fire. The issue was whether the homeowner’s policy covered the loss. The trial court granted the insurer’s motion for summary judgment and, in a divided decision, the Court of Appeals reversed in part.
The policy excluded losses “resulting from any manufacturing, production or operation, engaged in … the growing of plants.” The parties agreed that the fire resulted from the rewiring of the electrical system, but disagreed on “whether that means the damage” “result[ed] from” “the growing of plants.” The Court held that “resulting from” “broadly links a factual situation with the event creating liability, and connotes only a minimal causal connection or incidental relationship.” In doing so, it equated the terms “results from” and “arising from.” Concluding that a “common sense” approach was to be used, it found a “minimal causal connection” to be present. This expansive standard could be beneficial to policyholders in arguing the causal connection between COVID-19 and ensuing business interruption losses; specifically, that the pandemic, a covered event, is the underlying and proximate cause of the insureds’ physical loss and/or damage and the insured’s resulting business interruption loss, and that intervening events, whether they be orders of civil authority, prevention of ingress/egress or otherwise, would not sever the chain of causation.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
The Anatomy of a Construction Dispute Stage 3- The Last Straw
January 28, 2015 —
Christopher G. Hill – Construction Law MusingsOver the past two weeks here at Construction Law Musings, I’ve discussed the first two stages of a typical construction dispute (if such a thing exists): the claim, and how to bring heat short of litigation/arbitration. As promised, this week I’ll be discussing the next step or “last straw” in a construction dispute, namely, arbitration or litigation to enforce all of those rights that you preserved in the first two stages.
Construction litigation is expensive, time consuming, and, quite frankly, a pain in the neck. Because of this fact, I almost always recommend that my construction clients exhaust all of the non-litigation methods (including mediation of course) of resolving their disputes prior to “going nuclear” and filing suit. Unfortunately, even the most diligent attempts at less formal resolution means can be unfruitful and more formal means become necessary.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
A Survey of New Texas Environmental Laws
December 30, 2019 —
Anthony B. Cavender - Gravel2GavelThis is a brief survey of many of the environmental and regulatory laws passed by the Texas Legislature and signed by the Governor in the 86th Regular Session of the Legislature, which ended in May 2019. Altogether, more than 1,300 laws were enacted in this session, including a surprising number of environmentally related bills. Most of these new laws take effect on September 1, 2019. This survey places them in the following broad categories: Air, Water; Waste; Disaster (principally because of the effects of Hurricane Harvey); and Miscellaneous.
(Special thanks to Jay Bowlby, a summer intern in our Houston office, who made a significant contribution to this survey.)
1.
Air
HB 1627—amends Section 386.001(2) of the Health and Safety Code to remove several counties from the list of counties with deteriorating air quality subject to the Texas Emissions Reductions Plan.
HB 1346—relates to the diesel emissions reductions incentives and gives the TCEQ flexibility in administering this program.
HB 2726—concerns amended air quality permit applications. The law provides that construction of a project may proceed, at the applicant’s own risk, after the TCEQ Executive Director has issued a draft permit including the permit amendment. However, this provision does not apply to a permit amendment affecting a concrete batch plant located within 888 yards of a residence.
HB 3725—creates the Texas Emissions Reduction Plan Trust Fund, which will be held by the Comptroller and administered by the TCEQ, which also administers the TERP program.
SB 698—authorizes the TCEQ to provide expedited processing of certain Texas Clean Air Act permit applications by increasing the agency’s permitting staff.
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Scary Movie: Theatre Developer Axed By Court of Appeal In Prevailing Wage Determination Challenge
July 19, 2017 —
Steven M. Cvitanovic & Omar Parra - Haight Brown & Bonesteel LLPThe First Appellate District of the California Court of Appeal recently held that the construction of a movie theater, which was performed in furtherance of a city’s redevelopment agenda, constitutes a “public work” within the meaning of California’s prevailing wage law. Cinema West, LLC v. Christine Baker, No. A144265, (Cal. Ct. App. June 30, 2017).
Like many California cities, the City of Hesperia (the “City”) endeavored to revitalize its downtown. In furtherance of this goal, the City acquired vacant property in its downtown with the hope of turning it into a new city hall, a public library, and “complimentary retail, restaurant, and entertainment establishments.” After completing construction of the civic buildings, the City entered into discussions with Cinema West, LLC (“Cinema West”) for the construction of a “state-of-the-art cinema experience.”
Under the agreement with the City, Cinema West agreed to purchase the property from the City at fair market value, obtain financing for the construction costs, and build and maintain the movie theater. The City, on the other hand, agreed to provide Cinema West with an interest-bearing loan forgivable over ten years, and to construct an adjacent parking lot “for use by Cinema West... as a parking lot for the movie theater.” The City, moreover, agreed to issue Cinema West a one-time payment as consideration for the operating covenant.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
U.S. Homeownership Rate Rises for First Time in Two Years
October 28, 2015 —
Prashant Gopal – BloombergThe homeownership rate in the U.S. rose for the first time in two years as sustained job growth and low borrowing costs fueled demand for housing.
The share of Americans who own their homes was 63.7 percent in the third quarter, up from 63.4 percent in the previous three months, the Census Bureau reported Tuesday. It was the first quarterly increase since the third quarter of 2013.
The pool of eligible buyers is expanding as U.S. employment improves and families who lost properties during the recession repair their credit and seek another chance at owning. Sales of existing homes rebounded in September to the second-highest level since February 2007.
Read the court decisionRead the full story...Reprinted courtesy of
Prashant Gopal, Bloomberg
Claims Made Insurance Policies
November 04, 2019 —
David Adelstein - Florida Construction Legal Updates“Claims-made policies are common in the professional liability insurance market. They “differ from traditional ‘occurrence’-based policies primarily based upon the scope of the risk against which they insure.” With claims-made policies, coverage is provided only where the act giving rise to coverage “is discovered and brought to the attention of the insurance company during the period of the policy.” In contrast, coverage is provided under an occurrence-based policy if the act giving rise to coverage “occurred during the period of the policy, regardless of the date a claim is actually made against the insured.” “The essence, then, of a claims-made policy is notice to the carrier within the policy period.”
Crowely Maritime Corp. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2019 WL 3294003 (11thCir. 2019)
The recent Eleventh Circuit Court of Appeal opinion in Crowely Maritime Corp. discussed the distinction between a claims-made insurance policy and an occurrence-based insurance policy. Professional liability policies are generally claims-made policies whereas commercial general liability policies are generally occurrence-based policies. While this opinion does not involve a construction matter, the case did concern the definition of a “claim” in a claims-made policy and whether such claim was timely reported to the insurer within the discovery period / extended reporting period.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Know What You’ve Built: An Interview with Timo Makkonen of Congrid
September 09, 2019 —
Aarni Heiskanen - AEC BusinessConstruction contains thousands of big and small tasks. How can a client and contractor know if they have all been completed as intended? Congrid offers an answer to that question.
Congrid is a Finnish construction software developer. The company provides software for punch lists, quality and safety audits, and design document distribution. It operates in Finland, Sweden, and the U.K.
The company’s founding team members, collectively, offer a combination of expertise in construction management, software development, and marketing and sales. “I come from the electronics industry. I came into this business through my old schoolmates,” says Timo Makkonen, Congrid’s CEO. “My specialty is business development and leadership.”
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
US Homes Face Costly Retrofits for Induction Stoves, EV Chargers
May 20, 2024 —
Kendra Pierre-Louis - BloombergBuyers of new homes in the US may find themselves saddled with electrical systems better suited to the 20th century than the 21st.
The International Code Council, which sets model construction standards for new homes, was expected to include building electrification measures in its 2024 energy code on March 20. But following appeals lodged by industry groups, the ICC board moved the measures to the code’s appendices, effectively making them optional, as first reported by the Huffington Post.
If new homes aren’t wired for increasing power needs from electric appliances and car chargers, it will bump the effort and cost of making such upgrades onto homeowners — a deterrent to going electric. Energy efficiency advocates say this could slow the pace of the energy transition, costing both jobs and the planet.
Read the court decisionRead the full story...Reprinted courtesy of
Kendra Pierre-Louis, Bloomberg