California Court Invokes Equity to Stretch Anti-Subrogation Rule Principles
June 18, 2019 —
Gus Sara & William L. Doerler - The Subrogation StrategistIn Western Heritage Ins. Co. v. Frances Todd, Inc. 2019 Cal. App. Lexis 299, the Court of Appeals of California, First Appellate District, addressed whether a commercial condominium association’s carrier could subrogate against the tenants (aka lessees) of one of its member unit owners. After examining the condominium association’s declarations, as well as the lease terms between the owner and the lessees, the court held that the association’s carrier could not subrogate against the lessees because they were implied co-insureds on the policy. To reach its decision, the court explained that an insurer steps into the shoes of its insured, not the party with whom it is in privity. Although the first-party property portion of the association’s insurance policy did not, as required by the association’s declarations, have the owner listed as an additional named insured, the court held that it would be inequitable to treat the association as the sole insured for purposes of determining Western Heritage’s right to bring a subrogation action.
In Western Heritage, William R. de Carion d/b/a Surfwood Properties (de Carion or Lessor), owned a commercial unit within a multi-unit commercial building. The building was managed by the East Shore Commercial Condominiums Owners’ Association (the Association). As a unit owner, de Carion was a member of the Association. The Association’s Declarations of Codes, Covenants and Restrictions (CC&Rs) required the Association to procure fire insurance for the commercial units by adding the unit owners as additional named insureds. The CC&Rs also prohibited owners and their “tenants” from procuring their own fire insurance policies for the premises. In 2013, de Carion leased his commercial space to Frances Todd, Inc. d/b/a The Wooden Duck, Eric Todd Gellerman and Amy Frances Feber (Lessees).
Reprinted courtesy of
Gus Sara, White and Williams LLP and
William L. Doerler, White and Williams LLP
Mr. Sara may be contacted at sarag@whiteandwilliams.com
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com
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First Trump Agenda Nuggets Hit Construction
January 26, 2017 —
Pam Radtke Russell, Mary B. Powers & Debra K. Rubin - Engineering News-RecordPresident Donald J. Trump began making good on campaign promises to put Americans back to work and reduce the size of government, as he signed orders and memoranda setting in motion approval of the Obama administration-halted Keystone XL and Dakota Access pipelines and streamlining of infrastructure and manufacturing permitting processes. But firms and watchdog groups are concerned how an announced freezing of government hiring and contracting will play out, as well as the future of environmental protection.
Reprinted courtesy of Engineering News-Record staff
Pam Radtke Russell,
Mary B. Powers and
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Ms. Rubin may be contacted at
rubind@enr.com
Recovering Attorney’s Fees and Treble Damages in Washington DC Condominium Construction Defect Cases
April 03, 2023 —
Nicholas D. Cowie - Cowie Law GroupDC Condominium Association’s Can Recover Attorney’s Fees, Litigation Costs and Treble Damages in Construction Defect Cases Involving Misrepresentation
The District of Columbia Consumer Protection Procedures Act (“CPPA”) § 28-3905(k)(1)(A) creates a private legal claim (a/k/a “cause of action”) which can be asserted by a condominium unit owners association (“condominium association”) on behalf of two or more of its unit owner members who are misled by a condominium developer regarding the condition or quality of a newly constructed or newly converted condominium. Under the DC CPPA, a successful claimant is entitled to recover “treble damages” (i.e., three times the amount of damages it proves), plus recovery of “reasonable attorney’s fees” incurred in prosecuting the construction defect claim and “[a]ny other relief the court determines proper,” including non-attorney fee litigation expenses. DC CPPA § 28-3905(k)(2)(A), (B) and (F).
The CPPA Creates the Legal Claim that Allows a Condominium Associations to Recover Attorney’s Fees, Litigation Costs and Treble Damages
The DC CPPA is a consumer-oriented statute designed to protect Washington DC consumers misled in connection with the purchase of consumer “real estate,” including transactions involving the purchase of a condominium unit and interest in the condominium common elements. Typically, these cases involve the sale of a newly constructed or newly converted condominium, which, contrary to developer representations, contains latent construction defects.
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Nicholas D. Cowie, Cowie Law GroupMr. Cowie may be contacted at
ndc@cowielawgroup.com
Providing Notice of Claims Under Your Construction Contract
April 02, 2014 —
Beverley BevenFlorez-CDJ STAFFCraig Martin on his blog Construction Contractor Advisor explained the importance of knowing when to provide notice under your construction contract: “Time and time again, courts rule that contractors must follow notice requirements in order to submit a claim for additional time or compensation.”
Martin cited the case JEM Contracting v. Morrison-Maierle, where the contractor provided verbal notice of a claim to the engineer, but failed to submit in writing until eighteen days later, which was past the notice requirement as stated in the contract. The judge denied the contractor’s claim and sided with the engineer and county.
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BHA Sponsors the 9th Annual Construction Law Institute
January 21, 2016 —
CDJ STAFF Bert L. Howe & Associates, Inc. is proud to be partnering with the Florida Bar Continuing Legal Education Committee and the Construction Law Committee of the Florida Bar Real Property, Probate and Trust Law Section, as a sponsor and exhibitor at 9th Annual Construction Law Institute to be held March 11th, 12th & 13th, 2016 at the JW Marriott Orlando Grande Lakes in Orlando.
With offices in Miami serving all of Florida, Bert L. Howe & Associates, Inc. (BHA) offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 6,000 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and sub-contractors.
BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA specializes in coverage, exposure, premises liability, and delay claim analysis as well.
As the litigation climate in Florida continues to change, and as the number of construction defect and other construction related cases continues to rise, it is becoming more important for contractors and builders here to be aggressive in preparing for claims before they are made, and in defending against those claims once they are filed. Since 1993, Bert L. Howe & Associates has been an industry leader in providing construction consulting services, and has been a trusted partner with builders and insurance carriers, both large and small, across the Western and Southern United States. Here in Florida, we have been providing construction defect and construction-claims related forensic expert services for the past decade with a proven track record of successful results.
For those of you planning on attending the conference, or those who may know someone who will be, we encourage you to stop by the BHA booth and we welcome the opportunity to discuss further the broad range of services provided by BHA.
For your convenience, here is a link to the registration page for the 9th Annual Construction Law Institute:
http://www.floridabar.org/FBWEB/CLEReg.nsf/zLocations2/MAOS-A4UK4Z?OpenDocument
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Home-Building Climate Warms in U.S. as Weather Funk Lifts
May 20, 2015 —
Sho Chandra and Steve Matthews – BloombergThe surge in April housing starts sends a clear signal that bad weather was the root cause of weak readings in the first quarter. The question now is whether the rebound is strong enough to lift the world’s largest economy.
Builders broke ground on 1.14 million homes at an annualized rate last month, the most since November 2007 and up 20.2 percent from March, figures from the Commerce Department showed Tuesday in Washington. It was the single-biggest monthly surge since 1991, with both the Northeast and Midwest taking part, clearly showing milder temperatures had a hand.
The rebound in home building is shaping up to be large enough to make a meaningful contribution to economic growth this quarter. Nonetheless, because residential construction accounts for less than 4 percent of the economy, it would take big gains to make up for what’s likely to be sustained weakness in manufacturing caused by slowing exports and cuts in business investment by the energy industry.
Reprinted courtesy of
Sho Chandra, Bloomberg and
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Apartment Investors Turn to Suburbs After Crowding Cities
March 12, 2015 —
Nadja Brandt and Oshrat Carmiel – Bloomberg(Bloomberg) -- Real estate investor Robert Hart pulled into the lot of a 400-unit apartment community in a San Diego suburb last month, prepared to pay up for the recently completed project on a quiet residential street. A competitor from a publicly traded landlord was already there, he said.
“It was on the one hand reassuring to know that we were both chasing the same opportunity,” said Hart, president and chief executive officer of closely held TruAmerica Multifamily. “On the other hand, it reinforced my opinion that large institutional real estate investors will be chasing yield far beyond the urban core.”
Reprinted courtesy of
Nadja Brandt, Bloomberg and
Oshrat Carmiel, Bloomberg
Ms. Brandt may be contacted at nbrandt@bloomberg.net
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net
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Coverage for Faulty Workmanship Denied
September 07, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer had no duty to defend claims against the insured for faulty workmanship. HT Services, LLC v. Western Heritage Ins. Co., 2020 U.S. Dist. LEXIS 123664 (D. Colo. July 10, 2020).
Western Heritage Insurance Company issued three concurrent general liability policies to HT Services, LLC. The policies insured two properties owned by HT in Colorado Springs, its offices and vacant land. HT eventually developed a residential community on the vacant land. In January 2016, the homeowners' association filed suit against HT for negligent design and construction of a retaining wall at the project.
HT requested Western to defend and indemnify against the suit. Western denied coverage and HT sued. HT asserted that Western had a duty to defend and asserted claims for declaratory relief, breach of contract and bad faith. HT moved for partial summary judgment on its claims for declaratory relief, seeking a determination of its rights under the policies. Western moved for summary judgment on all of HT's claims.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com