A Win for Policyholders: California Court of Appeals Applies Vertical Exhaustion for Continuous Injury Claims
August 24, 2020 —
Celia B. Waters - Saxe Doernberger & VitaFresh off the heels of the California Supreme Court’s landmark decision in Montrose Chemical Corp. v. Super. Ct. of L.A. Cty. (“Montrose III”),1 policyholders scored another victory as another California court rejected horizontal exhaustion in the context of continuous injury cases. The Court of Appeal of the State of California, First Appellate District, Division Four, in SantaFe Braun Inc. v. Ins. Co. of N. Am., adopted a rule of vertical exhaustion, holding that “[absent an explicit policy provision to the contrary] the insured becomes entitled to the coverage it purchased from the excess carriers once the primary policies specified in the excess policy have been exhausted.”2
The dispute in SantaFe Braun began in 1992 when asbestos-related claims were first filed against Braun. In 1998, Braun’s three primary insurers agreed in writing to defend and settle the underlying claims against Braun while resolving allocation among themselves. In 2004, Braun filed the current suit against its excess insurers, seeking a declaration that the excess insurers were obligated to help cover the costs of the underlying asbestos-related lawsuits.
Read the court decisionRead the full story...Reprinted courtesy of
Celia B. Waters, Saxe Doernberger & VitaMs. Waters may be contacted at
cbw@sdvlaw.com
CDJ’s #9 Topic of the Year: Nevada Supreme Court Denies Class Action Status in Construction Defect Case
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Sean Whaley of the Las Vegas Review-Journal, “The Nevada Supreme Court has rejected a request for class action status for claims of damaged stucco from faulty construction by Del Webb Communities involving nearly 1,000 Sun City Summerlin residents.” However, “the court upheld the award of damages to 71 homeowners following a jury trial in Clark County District Court in 2008.” Whaley reported that this construction defect case was touted as the largest in Nevada history.
Read the court decisionRead the full story...Reprinted courtesy of
No Coverage For Construction Defects Under Alabama Law
September 14, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found there was no coverage for alleged defects caused by the insured homebuilder. Canal Indem. Co. v. Carbin, 2017 U.S. Dist. LEXIS 126662 (N.D. Ala. Aug. 10, 2017).
Carbin Construction filed suit against Aaron and Sherry Ford, asserting mechanic's and materialman's liens, and seeking sums allegedly due for work performed under a construction contract. The Fords filed a counterclaim, alleging that over a year had passed since Carbin was to complete construction, and that Carbin refused to do any further work on the house until he was paid an additional $11,771.43. The Fords further contended that Carbin had walked off the job after receiving 96.6 percent of the money owed under the contract although only 88 percent of the construction work had been completed. Carbin tendered the counterclaim to Canal. Canal then filed suit seeking a declaration that it had no duty to defend.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Make Your Business Great Again: Steven Cvitanovic Authors Construction Today Article
April 20, 2017 —
Steven M. Cvitanovic - Haight Brown & Bonesteel LLPThere is a lot of uncertainty regarding how President Trump’s immigration and trade policies will affect the construction industry. In his Construction Today article, Partner Steven Cvitanovic discusses how businesses can remain competitive and profitable during this period of uncertainty, including updating contract documents, recruiting and retaining employees, and increasing cybersecurity efforts.
“If you do not know when your contract documents were last updated, it’s probably been too long,” writes Cvitanovic. “Unlike wine, contract documents only get worse with age.” Cvitanovic advises teams to sit down together and review contracts to see if they still meet the firm’s needs.
Read the court decisionRead the full story...Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
CDJ’s #4 Topic of the Year: KB Home Greater Los Angeles, Inc. v. The Superior Court of Los Angeles County
December 31, 2014 —
Beverley BevenFlorez-CDJ STAFFKB Home, another case that clarified California’s SB 800, was analyzed by Amy Kuo Alexander of Gordon & Rees LLP in her article on “New Developments Related to SB 800.”
Read the full story...
KB Home was also discussed by Cvitanovic and Stefco of Haight Brown & Bonesteel in their article on Burch.
Read the court decisionRead the full story...Reprinted courtesy of
TOP TAKE-AWAY SERIES: The 2023 Annual Meeting in Vancouver
May 22, 2023 —
Marissa L. Downs - The Dispute ResolverProgram coordinators Katie Kohm and Peter Marino put together an amazing annual meeting last week in Vancouver. While its impossible to retread all of the ground we covered in discussing the "future of construction law," here are my top 10 take-aways:
10. Public-private partnerships may finally be taking off in the United States. P3s were slow to be pursued within the United States. According to panelists Peter Hahn, John Heuer, Sean Morley, and Lee Weintraub, this was chiefly because of the reticence of public bodies to deviate from the standard vendor model. Looking at the recent trends, it seems as though the United States--the "sleeping giant of public-private partnerships"--may finally be waking up. In 2022, a total of 29 public-private partnership projects were signed or reached financial close within the United States, representing an increase of 16% from the prior year. Thirty-eight states also now have some form of P3 enabling legislation. While we still lag behind our Canadian cousins, the future of P3s in this country is looking a little brighter.
9. The value proposition for the architecture profession is broken. Architects Lakisha Ann Woods (the CEO of AIA) and Phillip Bernstein (Associate Dean & Professor Adjunct Yale University) shared their thoughts with moderator Kelly Bundy on the challenges facing the architecture profession. The biggest issue they noted was the need to recruit qualified (and diverse) candidates into the profession. Unfortunately, this is difficult to do given the long career track (on average, it becomes 13.1 years to become a licensed architect) and the low salaries paid compared to other professions. Phillip shared that the high average starting salary for architecture grads from Yale (one of the leading programs in the country) is just $76,000. If we want to recruit the best and most innovative candidates into the field, the value proposition needs to change.
Read the court decisionRead the full story...Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Chambers USA 2022 Ranks White and Williams as a Leading Law Firm
July 18, 2022 —
White and Williams LLPWhite and Williams is once again recognized by Chambers USA as a leading law firm in Pennsylvania for achievements and client service in the areas of insurance law and real estate finance law. The firm has also been recognized for achievements and client service in banking and finance law in Philadelphia and the surrounding area. In addition, seven lawyers received individual honors: two for their work in insurance, two for their work in real estate finance, another for his work in real estate, one for her work in bankruptcy and restructuring and one for his work in commercial litigation.
White and Williams is acknowledged for our renowned practice offering expert representation to insurers and reinsurers across an impressive range of areas including coverage, bad faith litigation and excess liability. The firm is recognized for notable strength in transactional and regulatory matters, complemented by the team's adroit handling of complex alternative dispute resolution proceedings. Chambers USA also acknowledged the firm's broad trial capabilities include handling data privacy, professional liability and toxic tort coverage claims. White and Williams’ lawyers have further expertise in substantial claims arising from bodily injury and wrongful death suits.
Read the court decisionRead the full story...Reprinted courtesy of
White and Williams LLP
In Colorado, Primary Insurers are Necessary Parties in Declaratory Judgment Actions
December 09, 2011 —
Heather M. Anderson, Colorado Construction LitigationThe United States District Court for the District of Colorado recently ruled that primary insurers are necessary parties, under Fed. R. Civ. P. 19, in a declaratory judgment action being pursued by an excess carrier. See Insurance Co. of State of Pennsylvania v. LNC Communities II, LLC, 2011 WL 5548955 (D. Colo. 2011). Federal Rule of Civil Procedure 19 is almost identical to Colorado Rule of Civil Procedure 19 and pertains to the joinder of persons needed for “just adjudication.” The Insurance Co. of the State of Pennsylvania (“ICSOP”) sought a declaratory judgment that it did not have a duty to defend or indemnify the defendants (collectively referred to as “Lennar Companies”) with regard to the underlying lawsuit brought by The Falls at Legend Trail Owners Association, Inc. (the “HOA”). Id. at *2. In its lawsuit, the HOA alleged Lennar Companies were liable for construction defects at The Falls at Legend Trail residential development.
Lennar Companies held two primary insurance policies, one issued by OneBeacon Insurance Company f/k/a General Accident Insurance Company (“General Accident”) and the other issued by American Safety Risk Retention Group, Inc. (“American Safety”). Lennar Companies also carried excess policies issued by ICSOP and Ohio Casualty Insurance Company (“Ohio Casualty”).
Read the full story…
Reprinted courtesy of Heather M. Anderson of Higgins, Hopkins, McClain & Roswell, LLP. Ms Anderson can be contacted at anderson@hhmrlaw.com
Read the court decisionRead the full story...Reprinted courtesy of