Oregon Court of Appeals Rules That Negligent Construction (Construction Defect) Claims Are Subject to a Two-Year Statute of Limitations
October 20, 2016 —
John P. Ahlers – Ahlers & Cressman PLLCStatutes of limitations are distinct from statutes of repose. There is a lot of confusion between the two.
Generally, a statute of limitations is a law which sets the maximum period of time which one can wait before filing a lawsuit, depending on the type of case or claim. The periods vary by state and by type of claim. Most states also employ a “discovery rule,” which provides that the statute of limitations does not “accrue” until such time as the plaintiff knew or should have reasonably known that the injury or property damage has occurred.
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John P. Ahlers, Ahlers & Cressman, PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Everyone Wins When a Foreclosure Sale Generates Excess Proceeds
August 07, 2018 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogIntroduction
When a foreclosure sale generates more money than needed to pay off the lien, the excess proceeds usually go first to creditors in the order of their priority, and second to the owner after creditors are paid in full. So, in truth, not everyone wins when a foreclosure sale brings in too much money. Amusingly, in Steinmetz v. Everyone Wins, the court awarded excess sale proceeds to….you guessed it…Everyone Wins, despite the owner’s argument that Arizona’s anti-deficiency statutes barred it from recovering anything.
In addition to supplying a clever title for this post, Steinmetz v. Everyone Wins provides an important analysis of how Arizona’s anti-deficiency statutes, homeowner’s assessment lien statutes, and foreclosure statutes apply when determining who “wins” when it comes to excess sale proceeds.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Construction Contract Clauses Which Go Bump in the Night – Part 1
November 10, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The first in a multi-part series, here are some other important construction contract clauses you may (or may not realize you should) be losing sleep over.
Provision: Incorporation and Flow-Down Provisions
- Typical Provision: “The term ‘Contract Documents’ shall include, without limitation, the Prime Contract, drawings, specifications and other agreements between Contractor and Owner, insofar as they relate in any way, directly or indirectly, to Subcontractor’s Work under this Agreement, and are hereby incorporated by reference. Subcontractor agrees to be bound to Contractor in the same manner and to the same extent as Contractor is bound to Owner under the Contract Documents. Where, in the Contract Documents, reference is made to Contractor, and the work and specifications therein pertain to Subcontractor’s trade, craft, or type of work, such work or specifications shall be interpreted to apply to Subcontractor rather than Contractor.”
- What it Means: An incorporation provision literally “incorporates” another document or documents into a contract by merely referring to them by title or description and it is not uncommon for a lower-tiered contractor to never see those documents.
A flow-down provision requires a lower-tiered contractor to comply with all obligations which a higher-tiered contractor, typically a direct contractor, owes to a higher-tiered party, typically, the owner. The intent of the provision to ensure that a lower-tiered subcontractor has no greater rights against a direct contractor has against the owner.
- What You Can Do: Lower-tiered contractors should obtain a copy of all documents to be incorporated into their contract and review them to ensure that they understand the obligations and any limitations to their rights.
Lower-tiered contractors should also seek to include language requiring that a higher-tiered contractor assume toward the lower-tiered contractor all obligations and limitations on their rights that the owner assumes toward or is subject to with respect of the general contractor.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
New Jersey/New York “Occurrence”
July 30, 2014 —
Scott Patterson – CD CoverageIn National Union Fire Insurance Co. of Pittsburgh, PA v. Turner Construction Co., 986 N.Y.S.2d 74 (N.Y. App. Div. 2014), Turner was the general contractor for a high rise office building constructed in New Jersey for owner GSJC. Turner subcontracted with Permasteelisa for the building’s exterior curtain wall which consisted of granite and glass with an attached network of decorative pipe rails. A segment of the pipe rails fell from the building onto the street. GSJC determined that a significant percentage of the pipe rail connections to the curtain wall did not conform to specifications or were defective. GSJC sued Turner and Permasteelisa in New Jersey state court for breach of contract, breach of warranty, and negligence, seeking damages for the damage to the curtain wall and the danger of additional pipe rail falling in the future. National Union, which had issued an OCIP policy for the project, defended Turner and Permasteelisa under a reservation of rights and then filed a declaratory judgment action in New York state court. The New York trial court entered judgment for National Union. On appeal, the intermediate court of appeals affirmed. As to choice of law, the court stated that “it is undisputed that the law of New Jersey governs this action, which turns on insurance policy interpretation, and that New Jersey and New York law are consistent as to the issues in dispute here.”
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Scott Patterson, CD Coverage
Congratulations 2016 DE, NJ, and PA Super Lawyers and Rising Stars
June 02, 2016 —
White and Williams LLPTwenty-one White and Williams lawyers have been named by Super Lawyers as a Delaware, New Jersey, or Pennsylvania "Super Lawyer" while ten received "Rising Star" designations. Each lawyer who received the distinction competed in a rigorous selection process which took into consideration peer recognition and professional achievement. The winners named to this year's Super Lawyer list represent a multitude of practices throughout the firm.
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White and Williams LLP
Dreyer v. Am. Natl. Prop. & Cas. Co. Or: Do Not Enter into Nunn-Agreements for Injuries that Occurred After Expiration of the Subject Insurance Policy
January 20, 2020 —
Jean Meyer - Colorado Construction LitigationWhile Nunn-Agreements[1] may be appealing for both plaintiffs and defendants where an insurer unreasonably fails to defend a lawsuit, a recent opinion from The Honorable Marcia Krieger in the United States District Court of Colorado[2] (“Opinion”) demonstrates the importance of first confirming that there exists a viable insurance claim before proceeding with such a Nunn- Agreement.
The facts giving rise to the Opinion were as follows. In March 2015, a Homeowner couple (the “Homeowners”) suffered damages to their home resulting from a brushfire. Fortunately, the Homeowners were insured, they submitted their claim to their homeowners’ insurance carrier which was in effect at the time of the brushfire (the “Insurance Carrier”), and the Insurance Carrier paid the claim. Ostensibly as part of the Homeowners’ remediation efforts to their home they removed a large bush which left a hole in the ground. After paying the claim, in August 2015 the Insurance Carrier cancelled or elected not to renew the Homeowners’ policy. In October 2015, a repairman working on the Home (the “Repairman”) was injured after his ladder fell over allegedly because of the hole in the ground caused by the bush that had been removed.
As a result of injuries caused by the fall from the ladder, the Repairman brought suit against the Homeowners. In response to the Repairman’s claim, the Homeowners again tendered to their Insurance Carrier. This time, however, the Insurance Carrier denied coverage on the basis that the Repairman’s injuries occurred after the expiration of the relevant policy. Without insurance coverage, the Homeowner’s entered into a Nunn-Agreement with the Repairman, conceding liability, and assigning any claims they might have had against the Insurance Carrier in lieu of execution of any judgment against the Homeowners.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Four Ways Student Debt Is Wreaking Havoc on Millennials
December 10, 2015 —
Natalie Kirtroeff – BloombergNavient, the country's largest student debt servicer, put out a report Wednesday that suggests young people are doing just fine with their finances. The study surveyed 3,000 millennials and concluded that they are happily taking out mortgages, starting families, saving money, and managing their budgets. "Young adults are not only financially healthy but also actively focused on saving," the report said. Navient may be overstating things. Here are four reasons you should not be convinced that things are going that well for young people who took out student loans.
1. Student Debt Seems to Dampen Homebuying
People who finished college were more likely to have a mortgage than people who got only a high school education, the Navient study showed. Students who took out loans for college and didn't graduate, however, are worse off than those who never went at all.
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Natalie Kirtroeff, Bloomberg
NJ Supreme Court Declines to Review Decision that Exxon Has No Duty to Indemnify Insurers for Environmental Liability Under Prior Settlement Agreement
November 29, 2021 —
Patricia B. Santelle & Laura Rossi - White and WilliamsOn November 1, 2021, in a single-sentence Order, the Supreme Court of New Jersey denied a request for review of a decision that ExxonMobil Corporation (Exxon) did not have to indemnify certain of its insurers over environmental liabilities as required by a previous settlement agreement. The case, entitled Home Insurance Company v. Cornell-Dubilier Electronics Incorporated, et al., has a unique and convoluted procedural history but, in short, the denial of review leaves standing a holding by the intermediate appellate court that the insurers’ “untimely notice actually prejudiced Exxon, violated the no-prejudice rule, and breached the covenant of good faith and fair dealing.” The court declined to consider the question framed by the insurers: whether the importance of enforcing settlement agreements outweighs New Jersey’s entire controversy doctrine.
The matter dated back almost thirty years, when the New Jersey Department of Environmental Protection notified the Appearing London Market Insurers (ALMI) of the potential liability of Cornell-Dublier Electronics (CDE), a former indirect subsidiary of Exxon, for pollution at a site in New Jersey. Coverage litigation followed in New Jersey, which ALMI defended under policies issued to CDE. Exxon was not named in the CDE suit nor were the policies which ALMI issued to Exxon at issue in that case; Exxon instead had its own pollution coverage case pending in New York. In June 2000, Exxon and its insurers, including ALMI, entered into a settlement agreement which (a) required Exxon to indemnify the insurers for any environmental liability claims involving its subsidiaries, and (b) provided for application of New York substantive law and litigation in New York City court for any dispute between the parties under it.
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Patricia B. Santelle, White and Williams and
Laura Rossi, White and Williams
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
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