Engineer at Flint Negligence Trial Details Government Water Errors
April 04, 2022 —
Richard Korman & Jeff Yoders - Engineering News-RecordWarren Green, vice president and chief engineer of Lockwood, Andrews & Newnam, an engineering consultant to Flint, Mich. during its disastrous water crisis of 2014 and 2015, testified in federal court last week that city officials forged ahead to switch its source of drinking water without adequate water softening or testing after one municipal manager assured him that the more extensive testing would be done.
Reprinted courtesy of
Richard Korman, Engineering News-Record and
Jeff Yoders, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
Mr. Yoders may be contacted at yodersj@enr.com
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Wildfire Insurance Coverage Series, Part 5: Valuation of Loss, Sublimits, and Amount of Potential Recovery
July 25, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogInsurance policies provide different levels of insurance coverage and even if the amount purchased was adequate at one time, developments over time (e.g., inflation, upgrades, regulatory changes and surge pricing) may leave the policyholder underinsured. In this post in the Blog’s Wildfire Insurance Coverage Series, we emphasize the need for policyholders to take a close look at the policy’s terms to select the right type and amount of coverage for a potential loss.
Various types of coverage are available and there has been extensive litigation concerning the amount of coverage provided by one policy form or another. For example, the policyholder may have purchased market value coverage (the value of the house at the time of the wildfire), replacement coverage subject to a policy limits cap, guaranteed replacement cost coverage, or some variation on the theme. While the property may be properly valued when the insurance is purchased, it may become undervalued at the time of loss due to factors like inflation or home improvements that were not disclosed to the insurer. And, however generous the limits may be when the policy is procured, as one court discussed, it may be insufficient when “surge pricing” occurs after a wildfire.
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Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Meet the Forum's In-House Counsel: KATE GOLDEN
February 19, 2024 —
Jessica Knox - The Dispute ResolverCompany: Mortenson
Email: kate.golden@mortenson.com
Website: www.mortenson.com
College: University of Iowa (Bachelor of Science in Engineering, 1991)
Graduate School: University of Minnesota (Master of Science in Civil Engineering, 1994)
Law School: William Mitchell College of Law (now Mitchell | Hamline School of Law) (JD 1999)
States Where Company Operates/Does Business: Mortenson is a national builder and developer with 13 regional office locations.
Q: Describe your background and the path you took to becoming in-house counsel.
A: In high school, I loved math and science, so I attended the University of Iowa College of Engineering and studied civil engineering, with a focus on environmental engineering. To practice environmental engineering at that time, you generally needed a master’s degree, so I attended the University of Minnesota, where my thesis for my degree program was “Organochlorines in Lake Michigan.” I then worked as an environmental engineer for a consulting firm called Montgomery Watson (now MWH) assisting clients with various environmental issues from air permitting to watershed reports to risk assessments of contaminated sites.
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Jessica Knox, Stinson LLPMs. Knox may be contacted at
jessica.knox@stinson.com
Condominium Exclusion Bars Coverage for Construction Defect
August 17, 2011 —
Tred R. Eyerly - Insurance Law HawaiiCoverage was denied under the policy’s condominium exclusion in California Traditions, Inc. v. Claremont Liability Ins. Co.,2011 Cal. App.LEXIS912 (Cal. Ct. App., ordered published July 11, 2011).
California Traditions was the developer and general contractor for a housing development. California Traditions subcontracted with Ja-Con to perform the rough framing work for 30 residential units. The project had 146 separate residences that were freestanding with no shared walls, roof, halls, or plumbing or electrical lines. To allow a higher density development, the project was developed, marketed and sold as condominiums.
The purchaser of one of the units filed a complaint against California Traditions alleging property damage from the defective construction. California Traditions cross-complained against Ja-Con.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Montana Supreme Court: Insurer Not Bound by Insured's Settlement
December 02, 2019 —
K. Alexandra Byrd - Saxe Doernberger & Vita, P.C.In Draggin’ Y Cattle Co., Inc. v. Junkermier, et al.1 the Montana Supreme Court held that where an insurer defends its insured and the insured subsequently settles the claims without an insurer’s participation, a court may approve the settlement as between the underlying plaintiff and underlying defendant, but the settlement will not be presumed reasonable as to the insurer. Therefore, an insurer who defends its insured cannot be bound by a stipulated settlement that the insurer did not expressly consent to.
The case involved Draggin’ Y Cattle Company (the “Cattle Company”), a ranching and cattle business that utilized the services of an accounting firm, Junkermier, Clark, Campanella, Stevens, P.C. (“Junkermier”), to structure the sale of real property to take advantage of favorable tax treatment. It was discovered that Junkermier’s employee misinformed the Cattle Company’s owners of the tax consequences of the sale. The Cattle Company’s owners subsequently filed suit against Junkermier and its employee and alleged nearly $12,000,000 in damages due to the error. Junkermier’s insurer, New York Marine, provided a defense for Junkermier and its employee.
The Cattle Company’s owners offered to settle the claims against Junkermier and its employee for $2,000,000, the policy limit of the New York Marine policy. New York Marine refused to give its consent or tender the policy’s limit. Subsequently, Junkermier, its employee, and the Cattle Company entered into their own settlement agreement for $10,000,000. The settlement was contingent upon a reasonableness hearing to approve the stipulated agreement.
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K. Alexandra Byrd, Saxe Doernberger & Vita, P.C.Ms. Byrd may be contacted by
kab@sdvlaw.com
Subcontractors Have Remedies, Even if “Pay-if-Paid” Provisions are Enforced
February 19, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLCIn a recent case in Kentucky[1], a sub-tier subcontractor sued the general contractor and owner for failure to pay for extra work. At the trial, the court held the subcontractor was entitled to recover under the theories of implied contracts and unjust enrichment, even though the subcontract contained a “pay-if-paid” clause. All parties appealed. In particular, the general contractor asserted that the pay-if-paid provision in the subcontract precluded recovery by the subcontractor. The issue was petitioned to the Supreme Court of Kentucky.
The question to be resolved by the Supreme Court of Kentucky was whether a pay-if-paid provision was enforceable as between a general contractor and subcontractor, and if so, whether the subcontractor could nevertheless pursue the owner directly for payment notwithstanding a lack of privity between the owner and subcontractor.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Building Inspector Jailed for Taking Bribes
September 30, 2011 —
CDJ STAFFThe LA Times reports that Raoul Germain, a city Los Angeles building inspector has been sentenced to 21 months in prison after pleading guilty to taking bribes. Germain was caught as part of an FBI sting operation in which he approved work in exchange for thousands of dollars in bribes. The Times notes that that in some cases, Germain never visited the construction sites. Germain was offered a chance to cooperate with investigators. His lawyer, Steve Cron asked the Times, “What do you think happens to someone who cooperates?”
In addition to Germain, another city inspector has pleaded guilty to taking bribes and two more employees of the Department of Building and Safety have been fired in connection with the investigation.
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Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue
March 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question.
In Henry Schein, Inc., the contract at-issue provided:
This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina.
The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com