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Federal Courts Reject Insurers’ Attempts to Recoup Defense Costs Expended Under Reservation of Rights

April 11, 2022 — Anthony L. Miscioscia & Margo Meta - White and Williams
In situations where there is a dispute over a duty to defend, an insurer may provide a defense to its insured, subject to a reservation of rights, to not only deny coverage for a defense, but also to file a declaratory judgment action and recoup defense costs in the event it is determined there is no duty to defend. But are defense costs recoupable? Last week, federal trial courts in Georgia and Pennsylvania answered this question with a resounding “no”. In Chemical Equipment Labs, Inc. v. Travelers Property Casualty Company of America, Case No. 19-3441, 2022 U.S. Dist. LEXIS 61298 (E.D.Pa. Mar. 31, 2022), the United States District Court for the Eastern District of Pennsylvania was called to determine whether Travelers Property Casualty Company of America (Travelers) was entitled to reimbursement of defense costs after it was determined that it had no duty to defend its insured in an arbitration for breach of a charter agreement. The Travelers’ policies did not contain an express reimbursement provision. The court found that Travelers was not entitled to reimbursement because under Pennsylvania law, “[r]eimbursement of defense costs requires an express provision in the written insurance contract.” Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Margo Meta, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Meta may be contacted at metam@whiteandwilliams.com Read the court decision
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Creative Avenue for Judgment Creditor to Collect a Judgment

October 27, 2016 — David Adelstein – Florida Construction Legal Updates
I have a judgment against another entity. Now what? I want to briefly talk about this “now what?” in the context of the recent decision in MYD Marine Distributor, Inc. v. International Paint, Ltd., 41 Fla. L. Weekly D2364a (Fla. 4th DCA 2016). Although this case is not a construction case, it poses an interesting issue for any entity that has a judgment entered against it (known as the judgment debtor) while it is contemporaneously the plaintiff and pursuing monetary damages in an unrelated case or cases. This case also presents an avenue for any judgment creditor to pursue in the event other post-judgment collection efforts are unsuccessful. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

Wreckage Removal Underway at Site of Collapsed Key Bridge in Baltimore, But Weather Slows Progress

April 15, 2024 — Jim Parsons - Engineering News-Record
Note: The text of this article was updated 4/3/24 to reflect new information. Weather and water conditions are hampering the piece-by-piece process of cutting and removing wreckage from the collapsed Francis Scott Key Bridge in Baltimore, while officials consider potentially utilizing progressive design-build for a replacement bridge. Officials remain uncertain as to how long the meticulous effort to clear the key shipping channel will take. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Protecting Your Business From Liability Claims Stemming From COVID-19 Exposure

June 01, 2020 — Andrew Hamelsky, Jenifer Scarcella & Joshua Tumen - White and Williams
Businesses of every nature – including grocery stores, banks, daycares, gyms and restaurants – may face increasing liability claims from customers and third parties claiming to have been exposed to the novel coronavirus, or COVID-19, while at their location. The novel virus raises issues as to whether businesses have a heightened duty of care to their customers, and what type of exposure businesses face if a customer claims to have been exposed to COVID-19 while at their premises. Recently, a lawsuit was filed against Princess Cruise lines for gross negligence in allowing passengers to be exposed to COVID-19 on a cruise ship. The lawsuit alleges that the cruise ship was allowed to go out to sea knowing that it was infected from two previous passengers who came down with symptoms of COVID-19. It further claims that the passengers were not warned of the potential exposure either before or after they boarded the ship. In other news reports around the country, business owners have reported taking extraordinary precautions to prevent customers’ risk of contracting COVID-19. For example, one grocery store recently reported that it discarded $35,000 worth of food after a customer coughed on fresh produce. Reprinted courtesy of White and Williams LLP attorneys Andrew Hamelsky, Jenifer Scarcella and Joshua Tumen Mr. Hamelsky may be contacted at hamelskya@whiteandwilliams.com Ms. Scarcella may be contacted at scarcellaj@whiteandwilliams.com Mr. Tumen may be contacted at tumenj@whiteandwilliams.com Read the court decision
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AI Systems and the Real Estate Industry

April 03, 2023 — Robert G. Howard & Craig A. de Ridder - Gravel2Gavel Construction & Real Estate Law Blog
Artificial intelligence (AI) systems captured considerable attention with the release of a large language chatbot, ChatGPT, by OpenAI, in November of last year. On March 14, OpenAI unveiled GPT-4, a more powerful “multimodal” chatbot responding to both text and images. And, on March 21, Google launched its conversational computer program, Bard, to compete with GPT-4. These chatbots allow users to initiate detailed queries or requests and receive prompt responses in complete sentences. Users are not forced to scroll through a list of results like those produced by search engines and follow-up questions can be asked. AI systems have been touted for many years and these new breakthroughs may drastically change the way that we create content. Notwithstanding their unprecedented capabilities, AI systems can produce imperfect results. New chatbots, for example, can generate plausible-sounding but nonsensical, biased or false responses. Accordingly, heavy fact-checking is necessary. OpenAI has warned that ChatGPT is prone to filling in replies with incorrect data if there is not enough information available on the topic on the internet. Bard includes a website disclaimer that it “may display inaccurate or offensive information that doesn’t represent Google’s views.” On March 20, a breach at OpenAI allowed users to see other people’s chat histories before the service was shut down. Further, there is a real risk that courts will rule that certain content generated by these systems infringes the copyright or database rights of the owner of the materials and data that the technologies relied on. When entering into agreements with AI software providers, companies should also be concerned about other risks, including misappropriation of data, security, confidentiality, privacy and third-party claims. Reprinted courtesy of Robert G. Howard, Pillsbury and Craig A. de Ridder, Pillsbury Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. de Ridder may be contacted at craig.deridder@pillsburylaw.com Read the court decision
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Recovering Unabsorbed Home Office Overhead Due to Delay

May 30, 2022 — David Adelstein - Florida Construction Legal Updates
In the preceding article, I discussed the use of a retrospective as-built delay analysis in a case before the Civilian Board of Contract Appeals (CBCA). This case also discussed a damages component in certain delay claims known as unabsorbed home office overhead—a challenging damages component to recover because this deals with indirect costs as opposed to direct costs. Unabsorbed home office overhead is a damages component when the contractor is on standby, but this is NOT as easy as just claiming standby thereby you are automatically entitled to unabsorbed home office overhead. There are requirements that MUST be met.

To obtain an equitable adjustment for unabsorbed home office overhead as compensation for being on standby, [the contractor] must initially show “[1] a government-caused delay of uncertain duration,” that “[2] the delay extended the original time for performance” or precluded the contractor from finishing earlier than scheduled, and that “[3] the contractor [was] on standby and unable to take on other work during the delay period. CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022) quoting Nicon, Inc. v. U.S., 331 F.3d 878, 883 (Fed. Cir. 2003).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Industry News: New Partner at Burdman Law Group

March 30, 2016 — Burdman Law Group
Burdman Law Group, a boutique civil litigation law firm with offices in California, Nevada, and Arizona, is pleased to announce that Pieter M. O’Leary, was named a Partner in January 2016. Mr. O’Leary is an experienced litigator who has represented individuals and businesses in both state and federal court in actions involving breach of contract, negligence, construction, fraud, product defect, and business torts. Read the court decision
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LA Metro To Pay Kiewit $297.8M Settlement on Freeway Job

December 08, 2016 — Greg Aragon – Engineering News-Record
The Los Angeles County Metropolitan Transportation Authority (LA Metro) has reached an agreement with Kiewit Corp. and will pay the contractor $297.8 million for project change orders on the Interstate 405-Sepulveda Pass Widening Project, in Los Angeles. Read the court decision
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Reprinted courtesy of Greg Aragon, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

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