New Strategy for Deterring Intracorporate Litigation?: Delaware Supreme Court Supports Fee-Shifting Bylaws
May 13, 2014 —
Marc Casarino and Lori Smith – White and Williams LLPA fee-shifting bylaw of a Delaware non-stock corporation is not facially invalid according to the Delaware Supreme Court’s May 8, 2014 opinion in ATP Tour, Inc. v. Deutscher Tennis Bund.
In this case, ATP Tour, Inc., a non-stock membership corporation (“ATP”) governed by a seven member board, had adopted a bylaw provision which provided that current and former members of ATP would be responsible for the litigation costs arising out of any litigation initiated by any such member against ATP or any of the other members in which the initiating party did not obtain a judgment on the merits that substantially achieved in substance and amount the full remedy sought. The bylaw provision had been adopted, in accordance with ATP’s charter, by the Board unilaterally without any consent from the members. The members had agreed at the time they joined ATP to be bound by the bylaws, as amended from time to time. Two members of ATP initiated a suit against ATP relating to certain actions taken with respect the ATP’s tournament schedule and format alleging both federal antitrust claims and Delaware fiduciary duty claims but did not prevail on any of their claims. ATP then moved to recover its legal fees relating to such actions.
Reprinted courtesy of
Marc Casarino, White and Williams LLP and
Lori Smith, White and Williams LLP
Mr. Casarino may be contacted at casarinom@whiteandwilliams.com; Ms. Smith may be contacted at smithl@whiteandwilliams.com
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Court Finds That $400 Million Paid Into Abatement Fund Qualifies as “Damages” Under the Insured’s Policies
November 21, 2022 —
Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery BlogIn
Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, et al., the Court of Appeals for Ohio’s Eighth District reversed the lower court, finding that money paid by the insured into an abatement fund was “damages” as that undefined term was used in the policyholder’s insurance policies. 2022-Ohio-3031, ¶ 1. Sherwin-Williams is a cautionary tale about how insurers may try to narrow the meaning of undefined terms in their insurance policies.
The dispute in Sherwin-Williams focused on coverage for $400 million that the policyholder and other defendants were ordered to pay into an abatement fund to be used by California cities and counties to mitigate the hazards caused by lead paint in homes. Id. ¶ 1. Although the underlying litigation proceeded in California, Ohio law governed coverage, which raised issues of first impression in Ohio. Id. Among other things, the insurers argued that the money paid into the abatement fund did not qualify as “damages” under the policies. Id. ¶ 57. The insured argued that, because the insurers did not define “damages” in the policies, the term had to be given its ordinary meaning. Id. ¶ 56.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Sobering Facts for Construction Safety Day
April 28, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaHappy “Construction Safety Day” everyone! James White of Maxwell Systems, has shared with me an infographic showing all sorts of data about construction fatalities.
As you might expect, falls are the #1 source of construction-site fatalities, followed by being struck by falling objects, electrocution, and being caught between objects, in that order. Together, these “fatal four” make up 57% of all construction worker deaths.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Construction Law Alert: Concrete Supplier Botches Concrete Mix, Gets Thrashed By Court of Appeal for Trying to Blame Third Party
January 21, 2015 —
Steven M. Cvitanovic and Whitney L. Stefko – Haight Brown & Bonesteel LLPOn January 8, 2015, the Second Appellate district affirmed judgment of the lower court in State Ready Mix Inc. v. Moffatt & Nichol, and barred a concrete supplier from blaming a third party consultant for the concrete supplier's failure to deliver concrete that met project specifications.
In 2012, Major Engineering Marine, Inc. was hired by a project manager to construct a harbor pier in the Channel Islands Harbor. Major hired State Ready Mix, Inc. to supply the concrete for the project. State wrote and submitted a concrete mix design and, at the request of Major, civil engineer Moffatt & Nichol reviewed and approved State's mix design at no charge.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Whitney L. Stefko, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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Update: Supreme Court Issues Opinion in West Virginia v. EPA
August 03, 2022 —
Anne Idsal Austin, Shelby L. Dyl & Sheila McCafferty Harvey - PillsburyTakeaways
- The Supreme Court sided with a coalition of states and coal mining companies constraining EPA’s ability to regulate CO2 emissions from power plants.
- The Supreme Court’s deployment of the “major questions doctrine” could have far-reaching implications for agencies’ authority to take actions that are politically and economically significant.
- The Court also announced a broad interpretation of standing, finding that the challengers could bring their suit notwithstanding EPA’s announced nonenforcement of the Clean Power Plan and intent to engage in a rulemaking to replace it.
Introduction
On June 30, 2022, the Supreme Court issued its opinion in West Virginia v. EPA, invalidating the 2015 Obama-era Clean Power Plan (CPP). Chief Justice John Roberts delivered the opinion of the court, holding that Section 111(d) of the Clean Air Act does not authorize EPA to devise emissions caps based on “generation shifting”—the approach EPA took in the CPP wherein power plants would be required to transition from higher-emitting (e.g., coal) to lower-emitting (e.g., natural-gas) to then even lower-emitting (e.g., wind and solar) electricity production.
The Court’s holding that the case was justiciable despite the Biden administration’s stated intent to repeal the Clean Power Plan and engage in a new rulemaking, as well as its deployment of the “major questions doctrine,” is likely to have far-reaching implications for legal challenges to all administrative agency actions.
Reprinted courtesy of
Anne Idsal Austin, Pillsbury,
Shelby L. Dyl, Pillsbury and
Sheila McCafferty Harvey, Pillsbury
Ms. Austin may be contacted at anne.austin@pillsburylaw.com
Ms. Dyl may be contacted at shelby.dyl@pillsburylaw.com
Ms. Harvey may be contacted at sheila.harvey@pillsburylaw.com
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Congratulations to BWB&O’s Newport Beach Team for Prevailing on a Highly Contested Motion to Quash!
January 08, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Newport Partners Tyler Offenhauser and Jonathan Cothran, and Associate Anisha Kohli, who recently prevailed on behalf of BWB&O’s client before the Orange County Superior Court on a highly contested Motion to Quash Service based on Plaintiff’s failure to timely file and serve a DOE Amendment, naming our client.
BWB&O’s client was the owner of a building where Plaintiff, a licensed electrician, was electrocuted while performing an upgrade to the building’s electrical infrastructure. Plaintiff’s original lawsuit named only the building’s tenant, who was also represented by BWB&O. BWB&O was successful earlier this year on a Motion for Summary Judgment under the Privette Doctrine and won judgment on behalf of the client/tenant. While that MSJ was pending, Plaintiff surreptitiously added the building’s owner to the suit with a DOE Amendment, after several months earlier learning the owner and then tenant were entities operated by the same individual. However, Plaintiff never informed counsel or any other party of the filing. Moreover, after the MSJ was granted, Plaintiff then waited several more months to serve the building’s owner.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
A General Contractor’s Guide to Additional Insured Coverage
August 10, 2017 —
Gregory D. Podolak - Saxe Doernberger & Vita, P.C.LAW360.com recently surveyed attorneys to offer tips for what general contractors should – and shouldn’t – do when pursuing additional insured coverage. According to the article, “With the broad array of risks present on a typical construction site, one of a general contractor’s top options to shield itself from liability for property damage and bodily injury claims is to secure expansive “additional insured” coverage through its subcontractors.”
In the piece, Greg Podolak discussed techniques for avoiding potential gaps in coverage:
“Carriers will try to say in the additional insured endorsement that they will only be responsible to provide limits for what is required in the trade contract,” said Greg Podolak, managing partner of Saxe Doernberger & Vita PC’s southeast office. “If it turns out the trade contract requires lower limits than the policy, the insurer will likely say it only wants to be responsible for those lower limits.”
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Gregory D. Podolak, Saxe Doernberger & Vita, P.C.Mr. Podolak may be contacted at
gdp@sdvlaw.com
Where Parched California Is Finding New Water Sources
June 13, 2022 —
Pam McFarland - Engineering News-RecordAs drought-plagued western states watch their water sources literally dry up, California is digging deeper to tap the most basic source of all: groundwater.
Reprinted courtesy of
Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
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