Claims for Negligence? Duty to Defend Triggered
July 09, 2019 —
Michael S. Levine & Adriana A. Perez - Hunton Andrews KurthOn June 17, 2019, the First Circuit held that an insurer’s duty to defend was triggered because the underlying complaint set forth claims that required a showing of intent as well as claims that sought recovery for conduct that “fits comfortably within the definition of an ‘accident.’” In Zurich American Ins. Co v. Electricity Maine, LLC, Zurich sought declaratory judgment that, under a D&O policy, it had no duty to defend the insured, Electricity Maine, an electrical utility company being sued in the underlying class action. Zurich argued it had no duty to defend because the underlying complaint failed to allege that Electricity Maine engaged in conduct that qualified as an “occurrence” or that caused “bodily injury” under the terms of the policy. The First Circuit disagreed.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Adriana A. Perez, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Perez may be contacted at aperez@HuntonAK.com
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Nevada Supreme Court Reverses Decision against Grader in Drainage Case
June 30, 2011 —
CDJ STAFFThe Nevada Supreme Court has issued an opinion in the case of Rayburn Lawn & Landscape Designers v. Plaster Development Corporation, reversing the decision of the lower court and remanding the case for a new trial.
The case originated in a construction defect suit in which Plaster Development Corporation was sued by homeowners. Plaster filed a third-party complaint against its subcontractor, Reyburn. The testimony of Reyburn’s owner was considered to be admission of liability and so the court limited the scope of Reyburn’s closing argument and did not allow the jury to determine the extent of Reyburn’s liability. Reyburn appealed.
Plaster, in their case, cited California’s Crawford v. Weather Sheild MFG, Inc. The court held the application of these standards, but noted that the “an indemnitor’s duty to defend an indemnitee is limited to those claims directly attributed to the indemnitor’s scope of work and does not include defending against claims arising from the negligence of other subcontractors and the indemnittee’s own negligence.”
On the matter of law against Reyburn, the court concluded, “Given the conflicting evidence at trial as to whether Reyburn’s work was implicated in the defective retaining walls and sidewalls, and viewing the evidence and inferences in Reyburn’s favor, we conclude that a reasonable jury could have granted relief in favor of Reyburn.” The Nevada Supreme Court conduced that the district court should not have granted Plaster’s motion for judgement.
Further, the Nevada Supreme Court found that the district court should have apportioned the fees and costs to those claims directly attributed to Reyburn’s scope of work, “if any,” and should not have assigned all attorney costs and court fees to Reyburn.
Read the court’s decision…
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DC Circuit Upholds EPA’s Latest RCRA Recycling Rule
September 23, 2019 —
Anthony B. Cavender - Gravel2GavelOn July 2, 2019, the U.S. Court of Appeals for the District of Columbia Circuit decided the case of California Communities Against Toxics, et al. v. EPA. In this decision, the court rejected the latest petition to strike or vacate EPA’s 2018 revisions to the Resource Conservation and Recovery Act (RCRA) hazardous waste recycling rules. In 1985, EPA promulgated a new regulatory definition of “solid waste,” which is the linchpin of the agency’s very stringent hazardous waste management rules. (See the rules located at 40 CFR Sections 260-268.) Unless a material is a “solid waste” as defined by the rules, it cannot also be a hazardous waste.
The 1985 rules grappled with the challenges posed by recycling practices, and attempted to distinguish between legitimate recycling which is not subject to hazardous waste regulation, and other more suspect forms of recycling. The rules are complex and replete with nuance. In doing so, EPA was adhering to RCRA’s statutory mandate that it develop appropriate rules to govern the treatment, storage and disposal of hazardous waste, while also promoting “properly conducted recycling and reuse.” The DC Circuit reviewed the 1985 rules in the seminal case of American Mining Congress v EPA, 824 F.2d 1177 (1987), (AMC) and stressed that only those materials that were truly discarded could be regulated as solid waste; for instance, those materials that were destined for immediate recycling or recovery in an ongoing production process were not discarded and hence were not solid waste. Over the years, the court has struggled to clarify the basic holding of AMC in numerous cases while EPA has frequently revised and amended the RCRA rules, and in particular the definition of solid waste, in an attempt to balance the policies mandated by the statute.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Ohio School Board and Contractor Meet to Discuss Alleged Defects
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Insurance News, The Greeneview School Board will be meeting with contractor Sfaffco Construction Inc. to discuss findings in a 122-page report produced by “Mays Consulting & Evaluation Services Inc. that outlines numerous alleged construction defects in the roofing system.”
"It's really the first time we have everybody together to discuss the deficiencies," said Isaac Seevers, the Greeneview Local Schools superintendent told Insurance News.
The school board estimates that the alleged problems will take up to $3.5 million to fix.
Meanwhile, Staffco has hired their own consultant. "The report from Mays is one sided," Staffco President Jon Stafford said according to Insurance News. "We take issue with some of the findings in there."
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Wilke Fleury ranked in Best Lawyers’ Best Law Firms!!
December 03, 2024 —
Wilke Fleury LLPWilke Fleury is pleased to announce its inclusion in the 2025 edition of ‘Best Law Firms’ ranked by Best Lawyers! Firms included in the 2025 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal expertise.
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Wilke Fleury LLP
Mechanic’s Liens- Big Exception
January 22, 2024 —
Christopher G. Hill - Construction Law MusingsMusings has discussed mechanic’s liens on
numerous occasions.
As we discussed in earlier posts, the general rule is that a
mechanic’s lien jumps to the head of the line of liens when filed. This is true in most instances. In the typical case, a contractor puts up a building and, when the owner refuses payment, it files a mechanic’s lien that takes priority over all other liens on that property, including the construction loan
deed of trust (or
mortgage, depending on your state’s property laws).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language
December 20, 2017 —
Garret Murai - California Construction Law BlogIn McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project.
In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units.
The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing.
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Garret Murai, Wendel Rose Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Millennium’s Englander Buys $71.3 Million Manhattan Co-Op
September 03, 2014 —
Oshrat Carmiel – BloombergIsrael Englander, the founder and chief executive officer of hedge-fund firm Millennium Management LLC, bought a duplex apartment on New York’s Park Avenue for $71.3 million, a record price for a Manhattan co-op.
The seller was the government of France, New York City property records filed on Aug. 30 show. The six-bedroom unit at 740 Park Ave. was listed for $48 million in April, according to real estate website StreetEasy.com.
The Park Avenue tower, completed in 1931 and designed by Rosario Candela and Arthur Loomis Harmon, has been home to John D. Rockefeller Jr. and Jacqueline Kennedy Onassis, according to StreetEasy. Its 31 units include duplexes and triplexes of as much as 20,000 square feet (1,900 square meters). The 18-room co-op bought by Englander includes a private elevator, 35-foot (10.6-meter) marble gallery and five fireplaces, said the listing by John Burger of Brown Harris Stevens.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net