Recent Bad Faith Decisions in Florida Raise Concerns
November 06, 2018 —
Michael Kiernan, Lauren Curtis & Ashley Kellgren - TLSS Insurance Law BlogThe State of Florida has long been known as one of the most challenging jurisdictions for insurance carriers in the context of bad faith – to say the least. Two recent appellate decisions have taken an already difficult environment and seemingly “upped the ante” in what constitutes good faith claims handling in the context of third-party liability claims. Set forth below is an analysis of the Bannon v. Geico Gen. Ins. Co. and Harvey v. Geico Gen. Ins. Co. decisions.
Reprinted courtesy of Traub Lieberman Straus & Shrewsberry LLP attorneys
Michael Kiernan,
Lauren Curtis and
Ashley Kellgren
Mr. Kiernan may be contacted at mkiernan@tlsslaw.com
Ms. Curtis may be contacted at lcurtis@tlsslaw.com
Ms. Kellgren may be contacted at akellgren@tlsslaw.com
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Subcontractor Sued for Alleged Defective Work
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Louisiana Record reported that “[a] construction company is suing a subcontractor for alleged defective work on two construction projects” in New Orleans, Louisiana.
New Beginnings Enterprises and J. Fernando Arriola are “accused of providing defective labor and materials, failing to properly supervise construction on the properties, failing to obtain inspections required under building codes, failing to construct dwellings in accordance with plans and specifications and failing to perform agreements in a workmanlike manner,” according to the Louisiana Record.
Plaintiffs including Bartel Construction LLC seek $209,500 in damages “as additional sums for defective and incomplete work, lost profits, consequential damages and attorney’s fees.”
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Condos Down in Denver Due to Construction Defect Litigation
November 06, 2013 —
CDJ STAFFA new report suggests that fears of construction defect litigation may be the cause of the slump in condo building in the Denver area. The Denver Business Journal reports that the Denver Regional Council of Governments commissioned the study by Economic & Planning Systems. The conclusion of the report was that the only type of condominium likely to be built is high-cost units with high profit margins. This is not good news for the DRCOG, which is seeking to create more affordable housing.
The report found that builders assess the likeliness of being sued “is nearly 100 percent,” that costs of addressing construction defects are 12% higher than at apartment complexes, and that preparing for litigation adds about $15,000 to the cost of a condo unit.
One possible remedy is to reform Colorado’s construction defect laws. Bob Muphy, the mayor of Lakewook and an advocate of construction defect litigation reform, said that he sees “this as a verification of what I’ve been talking about.”
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Traub Lieberman Partner Lisa Rolle Obtains Summary Judgment in Favor of Defendant
November 15, 2022 —
Lisa M. Rolle - Traub LiebermanTraub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com
Alabama “occurrence” and subcontractor work exception to the “your completed work” exclusion
November 18, 2011 —
CDCoverage.comIn Town & Country Property, LLC v. Amerisure Ins. Co., No. 1100009 (Ala. Oct. 21, 2010), property owner Town & Country contracted with insured general contractor Jones-Williams for the construction of a car dealership. All of the construction work was performed by Jones-Williams subcontractors. After completion, Town & Country sued Jones-Williams for defective construction. Jones-Williams’ CGL insurer Amerisure defended. The case was tried and a judgment was entered against Jones-Williams in favor of Town & Country. After Amerisure denied any obligation to pay the judgment, Town & Country sued Amerisure in a statutory direct action.
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Reprinted courtesy of CDCoverage.com.
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Irene May Benefit Construction Industry
September 01, 2011 —
CDJ STAFFNoting that while it wasn’t the $15 billion disaster some predicted, Hurricane Irene still caused quite a bit of damage on its path up the Eastern Seaboard. Martha White, reporting for MSNBC cites Kinetc Analysis Corp. with an estimate of $7 billion in damage. Carl Van Horn, a professor of public policy at Rutgers University expected an initial decline in construction jobs, due to projects delayed due to the storm’s arrival, but he said, “a few weeks later, employment picks up as people rebuild.”
Kinetic says that one unknown is how much of the damage is insured. They expect only $3 billion of damage will be covered by insurance. This would likely put a drag on consumer spending, as homeowners would have to dig into their own pockets to pay for repairs, according to Karl Smith, associate professor of economics and government at the University of North Carolina at Chapel Hill.
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Connecticut Court Clarifies Construction Coverage
June 28, 2013 —
CDJ STAFFThe Connecticut Supreme Court has recently ruled on a case in which breach of contract and bad-faith claims were made against an insurer in an construction defect case. Joseph K. Scully of Day Pitney LLP discussed the case in a piece on Mondaq.
Mr. Scully noted that the background of the case was that Capstone Building was the general contractor and project developer of a student housing complex for the University of Connecticut. Unfortunately, the building had a variety of problems, some of which were violations of the building code. Mr. Scully noted that the building had “elevated carbon monoxide levels resulting from inadequate venting, improperly sized flues.” Capstone entered into mediation with the University of Connecticut. Capstone’s insurer, the American Motorists Insurance Company (AMICO), declined involvement in the participation. Afterward, Capstone sued AMICO. The issues the court covered involved the insurance on this project.
The court addressed three questions. The first was “whether damage to a construction project caused by construction defects and faulty workmanship may constitute ‘property damage’ resulting from an ‘occurrence.’” The court concluded that it could “only if it involved physical injury or loss of use of ‘nondefective property.’”
The second question dealt with whether insurers were obligated to investigate insurance claims. The court, “agreeing with the majority of jurisdictions,” did not find “a cause of action based solely on an insurer’s failure to investigate a claim.” Under the terms of the contract, it was up to AMICO to decide if it was going to investigate the claim.
Thirdly, the court examined whether “an insured is entitled to recover the full amount of a pre-suit settlement involving both covered and noncovered claims after an insurer wrongfully disclaims coverage.” The court concluded that the limits are that the settlement be reasonable, the policy limit, and the covered claims.
Mr. Scully concludes that the decision will limit “the scope of coverage for construction defect claims” and “also imposes reasonable requirements on an insured to allocate a settlement between covered and noncovered claims.
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Newmeyer & Dillion Announces Three New Partners
January 04, 2018 —
NEWMEYER & DILLION LLPOriginally Published by CDJ on March 16, 2017
NEWPORT BEACH, Calif. – FEBRUARY 7, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that three of the firm’s attorneys – Ben Ammerman, Anne Kelley and Rondi Walsh – have been elected to partnership. Their promotions are effective immediately.
“The elevation of these three attorneys is a testament to their leadership, hard work, and unwavering commitment to superior service for our clients and the firm,” proclaimed Jeff Dennis, Newmeyer & Dillion’s Managing Partner. “This is an exciting time for the firm as we look forward to their continued success and contributions.”
Ammerman (based in Newport Beach, CA) focuses his practice in the areas of business, real estate, and tort litigation. In addition to his private practice, Ammerman presently serves as a Commander in the Navy Reserve Judge Advocate General’s Corps. He's also an active alumnus, currently named co-chair of the University of Southern California’s 20th Reunion Committee.
Kelley (based in Walnut Creek, CA) concentrates primarily in construction litigation and insurance coverage matters. She has over 12 years of experience working closely with builders, developers, contractors and subcontractors throughout Northern California developing legal strategies specific to the needs of each matter and the client’s business and goals. Kelley has litigated a wide variety of complex insurance coverage disputes.
Walsh (based in Newport Beach, CA) has incorporated into her practice the representation of policyholders in first and third-party insurance coverage, and business lawsuits involving contracts, property disputes, products liability and construction defect issues. She also has litigated numerous political and election law matters and has worked both professionally and as a volunteer on numerous political campaigns. Walsh is also an active member with the National Charity League.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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