Construction Litigation Roundup: “A Close Call?”
August 05, 2024 —
Daniel Lund III - LexologyNot really, said a Florida state appellate court when a public construction project owner sued a defaulted general contractor after recovering from the general contractor’s surety.
The general contractor, Close Construction, entered into a contract for a lift station rehabilitation construction project with the City of Riviera Beach in Florida. During the course of the work the public owner terminated the contract, whereupon the GC and the owner brought claims against each other in court. A jury ultimately held against the general contractor and in favor of the public owner in the amount of approximately $1.9 million. The general contractor appealed.
On appeal, the general contractor noted that the public works surety which it was required by the contract to obtain for the project had hired another company to complete the work when the general contractor was terminated and had otherwise “settled with the District under its bond for $1,000,000.” Based on that settlement, the general contractor had moved, unsuccessfully, in the trial court for a post-trial setoff because the “settlement covered the same damages that the jury assessed” against the GC, and because the surety was “jointly and severally liable” with the GC – pursuant to the terms of the bond – for those damages. In essence, the general contractor sought to avoid having the public owner “obtain a double recovery.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
A Court-Side Seat: Waters, Walls and Pipelines
August 03, 2020 —
Anthony B. Cavender - Gravel2GavelSeveral interesting decisions have recently been made by federal and state courts.
FEDERAL APPELLATE COURTS
The U.S. Seventh Circuit Court of Appeals – ARCO Shifts from State to Federal and No Vigor for VIM
On June 18, 2020, the court decided the case of Baker, et al. v. ARCO, holding that the revised federal removal statutes authorize the removal to federal court of a state-filed complaint against several defendants by the former residents of an Indiana housing complex who contended that the defendants were responsible for the industrial pollution attributed to the operations of a now-closed industrial plant. The housing complex was constructed at the site of the former U.S. Smelter and Lead Refinery. During the Second World War, the plant produced products for the use of the government war effort, thus triggering the applicability of the federal removal statutes.
On June 25, 2020, the court decided the case of Greene, et al. v. Westfield Insurance Company. As the court notes, this is a matter that “began as a case about environmental pollution and evolved into a joint garnishment action.” An Indiana wood recycling facility, VIM Recycling, was the subject of many complaints by nearby residents that its operations and waste disposal activities exposed then to dust and odors in violation of federal law and triggered state tort law claims. VIM was sued in state court, but neglected to notify its insurer, as required by its insurance policy with Westfield Insurance. One thing led to another, and a default judgment in the amount of $ 50 million was entered against VIM. Since VIM at that point had no assets, the plaintiffs and later VIM sought recovery from Westfield. When this dispute landed in federal court, the court, after reviewing the policy, concluded that there was a provision excluding coverage when the insured knew it had these liabilities when it purchased the insurance. As a result, the lower court dismissed the lawsuit, and this decision has been affirmed by the Seventh Circuit.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Court’s Ruling on SB800 “Surprising to Some”
October 16, 2013 —
CDJ STAFFDescribing it as “surprising to many in the residential home building industry,” Jay Drake of Reuben, Junius & Rose LLP has a piece discussing the recent California Court of Appeals decision that SB800 is not a homeowner’s only remedy for construction defects. The court found, according to Mr. Drake that “the primary purpose of the Act was to provide a property owner with remedies for repair of construction defects before the defects caused actual damages.” In the case before the court, the construction defects had already lead to further damages.
Mr. Drake notes that the legislative history of SB800 puts the bill in response to an earlier California court case in which the courts determined that without actual damage to property, a homeowner could not file a construction defect lawsuit. The court concluded that SB800 was not intended to limit the homeowner’s rights after a construction defect situation has lead to damage.
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Insurer Must Pay for Matching Siding of Insured's Buildings
December 02, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Seventh Circuit found that the insurer was obligated to pay for siding of a building that was not damaged by hail so that it matched the replaced damaged portions of the siding. Windridge of Naperville Condominium Association v. Philadelphia Indem. Ins. Co., 2019 U.S. App. 23607 (7th Cir. Aug. 7, 2019).
A hail and wind storm damaged buildings owned by Windridge. The storm physically damaged the aluminum siding on the buildings' sought and west sides. Philadelphia Indemnity, Windridge's insurer, contended that it was only required to replace the siding on those sides. Windridge argued that replacement siding that matched the undamaged north and east elevations was no longer available, so Philadelphia had to replace the siding on all four sides of the buildings to that all of the siding matched.
Windridge sued and moved for summary judgment. The district court ruled that matching was required. The only sensible result was to treat the damage as having occurred to the building's siding as a whole.
The policy was a replacement-cost policy. Philadelphia promised to "pay for direct physical 'loss' to 'Covered Property' caused by or resulting from" the storm, with the amount of loss being "the cost to replace the lost or damaged property with other property . . . of comparable material and quality . . . and . . . used for the same purpose." The loss payment provision offered four different measures for loss, leaving Philadelphia free to choose the least expensive: (1) pay the value of the lost or damaged property; (2) pay the cost of repairing or replacing the lost or damaged property; (3) take all or any part of the property at an agreed or appraised value; or (4) repair, rebuild or replace the property with other property of like kind and quality.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
17 Snell & Wilmer Attorneys Ranked In The 2019 Legal Elite Edition Of Nevada Business Magazine
July 01, 2019 —
Snell & WilmerSnell & Wilmer is pleased to announce that 17 of its attorneys in the Nevada offices have been ranked in Nevada Business Magazine’s 2019 Legal Elite edition, an annual list that highlights Nevada’s top attorneys as chosen by their peers. This year marks Legal Elite’s 12th year of presenting the Silver State’s top attorneys.
Polling for Legal Elite 2019 began at the end of February and nearly 5,000 nominations were submitted by licensed attorneys in Nevada, according to Nevada Business Magazine. Each submission then went through an extensive verification process resulting in the top attorneys in the state, chosen by their peers. The Legal Elite list includes only the top 3 percent of attorneys in the state broken down by location.
In addition, Legal Elite includes special lists ranking Nevada’s best “Up and Coming” and best government attorneys. Each nominee went through several levels of verification and scrutiny before being approved to appear on this list. Upon the nomination process closing, each ballot was individually reviewed for eligibility and every voting attorney was verified with the State Bar of Nevada. More information on the scoring can be viewed here.
The following Snell & Wilmer attorneys have been named Legal Elite for 2019:
- Brian L. Blaylock, Associate
- Justin L. Carley, Partner
- John S. Delikanakis, Partner
- Kelly H. Dove, Partner
- Alex L. Fugazzi, Partner
- Charles E. Gianelloni, Associate
- Daniel S. Ivie, Associate
- Nathan G. Kanute, Partner
- Wayne O. Klomp, Associate
- Kade D. Miller, Associate
- William E. Peterson, Partner
- Jacey Prupas, Partner
- Mandy S. Shavinsky, Partner
The following Snell & Wilmer attorneys have been named Best Up and Coming for 2019:
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Nancy Conrad Recognized in Lehigh Valley Business 2024 Power in Law List
July 31, 2024 —
White and Williams LLPNancy Conrad, Chair of the Higher Education Group, Managing Partner of the Lehigh Valley Office and the President of the Pennsylvania Bar Association (PBA), has been named to the Lehigh Valley Business 2024 Power in Law List, for her work as a leader in the legal field.
This year’s honorees were asked to relate inspiration that pushed the pursuit of their career. One of her inspirations, as explained by Nancy in the article, was the opportunity to instruct and impact students while teaching during the day and pursuing a legal career in the evening at Temple Law which cemented a “commitment to excellence in the practice of law and service to the community.”
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Super Lawyers Recognized Five Lawyers from Hunton’s Insurance Recovery Group
August 29, 2022 —
Hunton Insurance Recovery BlogPartners,
Larry Bracken,
Lorie Masters, and
Koorosh Talieh (KT), were each recognized as Super Lawyers, while associates
Yaniel Abreu and
Rachel Hudgins were selected as Rising Stars for Insurance Coverage in 2022. Super Lawyers, part of Thomson Reuters, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations. Ultimately, no more than 5% of lawyers in a state are selected as Super Lawyers, and less than 2.5% are recognized as Rising Stars. Congratulations on this achievement!
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Hunton Andrews Kurth LLP
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Victoria Kajo Named One of KNOW Women's 100 Women to KNOW in America for 2024
May 13, 2024 —
Lewis Brisbois NewsroomLos Angeles, Calif. (April 30, 2024) – Los Angeles Partner Victoria Kajo has been named to global media company KNOW Women's 2024 100 Women to KNOW in America list, which honors the top 100 female leaders across North America. The honorees were recognized at the annual KNOW Women Summit, held from April 21-23 at The Palomar Hotel in Phoenix, Arizona.
The annual 100 Women to KNOW in America award, presented by JPMorgan Chase, recognizes women entrepreneurs, executives, creatives, and philanthropists who "exemplify what it means to be high achieving and ambitious on the next level and who continue to pour into their communities as they do so," according to KNOW Women. Ms. Kajo was selected as one of this year's honorees following a nomination and interview process.
Ms. Kajo is a member of Lewis Brisbois' Professional Liability Practice. She has extensive experience with professional liability litigation, having defended lawyers, design professionals and real estate professionals against claims of alleged negligent acts and omissions in the performance of their professional services. Ms. Kajo also has broad experience in general civil litigation matters involving errors and omissions, real estate, wrongful foreclosures, labor and employment law, civil rights, fraud, personal injury, breach of contract and unlawful detainer matters, amongst others.
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