Measure of Damages for a Chattel Including Loss of Use
November 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesIn a non-construction case, but an interesting case nonetheless, the Second District Court of Appeals talks about the measure of damages when dealing with chattel (property) including loss of use damages. Chattel, you say? While certainly not a word used in everyday language, a chattel is “an item of tangible movable or immovable property except real estate and things (such as buildings) connected with real property.” Equipment, machinery, personal items, furniture, etc. can be considered chattel.
With respect to the measure of damages for a chattel:
“Where a person is entitled to a judgment for harm to chattels not amounting to a total destruction in value,” the plaintiff may make an election out of two theories of recovery in addition to compensation for the loss of use. Badillo v. Hill, 570 So. 2d 1067, 1068 (Fla. 5th DCA 1990) (quoting Restatement of Torts § 928 (Am. Law Inst. 1939)). In addition to compensation for the loss of use, the plaintiff may elect either “the difference between the value of the chattel before the harm and the value after the harm” or “the reasonable cost of repairs or restoration where feasible, with due allowance for any difference between the original value and the value after repairs.” Id. (quoting Restatement of Torts § 928).
Sack v. WSW Rental of Sarasota, LLC, 45 Fla.L.Weekly D2306a (Fla. 2d DCA 2020).
Sack is a good example of a case dealing with the measure of damages with a chattel, here, an aircraft, including loss of use damages.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Duty to Defend Triggered by Damage to Other Non-Defective Property
February 20, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court found the insurer must defend because there was a possibility of damage to property due to work not performed by the insured. B&W Paving & Landscape, LLC v. Employers Mut. Cas. Co., 2022 U.S. Dist. LEXIS 225783 (D. Conn. Dec. 15, 2022).
In 2010, Whiting Turner Contracting Company (WT) contracted with United Illuminating Company (UI) to act as general contractor for the construction of UI's new central facility. WT subcontracted with Cherry Hill Construction, Inc. (Cherry Hill) for work underneath the parking lot and driveways, including installing base and sub base materials. WT also subcontracted with B&W Paving and Landscape, LLC (B&W) for the asphalt paving.
In 2018, UI sued WT for defective and incomplete work. WT then filed a third-party compact against its subcontractors, including B&W. WT sued for contribution for any liability it may have to UI for the paving work.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
You Are Not A “Liar” Simply Because You Amend Your Complaint
March 14, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn litigation, it is common for a plaintiff to amend their complaint. They may amend to add additional parties. To add new claims. To change the factual allegations. Or, to change the theme of their case.
Most of the time, complaints are not verified by the plaintiff. Instead, complaints are drafted and signed by the plaintiff’s counsel.
A question becomes: how prior reiterations of a complaint can be used against the plaintiff to show they are a bunch of “liars” by making amendments to their complaint. Sounds prejudicial to the plaintiff, right? Particularly if there is a jury.
The reality is that amending complaints for various reasons is routine. Doing so does NOT make the plaintiff a liar and is not a vehicle that a defendant should use to create this inference. A defendant that tries to do so simply wants to detract from the substantive facts and issues.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Dispute Over Exhaustion of Primary Policy
May 20, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a dispute between the excess and primary carriers, the Fifth Circuit determined the primary policy was exhausted, triggering coverage under the excess policy. Amerisure Mut. Ins. Co. v. Arch Spec. Ins. Co., 2015 U.S. App. LEXIS 6627 (5th Cir. April 21, 2015).
Amerisure issued a CGL policy to Admiral Glass & Mirror Co. The policy provided excess over any coverage under a controlled insurance program policy. Arch issued an Owner Controlled Insurance Program (OCIP) policy to Endeavor Highrise, LP and to its contrators and subcontractors for bodily injury and property damage arising out of the construction of the Endeavor Highrise. Admiral was a subcontractor insured under the OCIP.
The OCIP had combined bodily injury and property damage limits of $2,000,000 per occurrence, a general aggregate limit of $2,000,000 and a products-completed operations aggregate limit of $2,000,000. The OCIP contained a Supplementary Payments provision which provided that Arch would pay "[a]ll expenses we incur" in connection with any covered claim, and that "[t]hese payments will not reduce the limits of insurance." Endorsement 16, however, expressly deleted and replaced this statement with: "[supplementary payments] will reduce the limits of insurance." The OCIP also provided that Arch's duty to defend ended "when we have used up the applicable limit of insurance in the payment of judgments or settlements."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer Must Defend Contractor Against Claims of Faulty Workmanship
May 30, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe magistrate judge recommended that the insurer's motion for summary judgment seeking to determine there was no coverage for claims of faulty workmanship be denied. Greystone Multi-Family Builders v. Gemini Ins. Co., 2018 U.S. Dist. LEXIS 56770 (S.D. Tex. Feb. 26, 2018).
TPG (Post Oak) purchased an OCIP policy to cover construction of an apartment complex. TPG was sued by the contractor, Greystone, after TPG cancelled the construction contract. TPG filed a counterclaim against the contractor, alleging that Greystone had failed to properly perform in building a luxury apartment complex which resulted in monetary damages to TPG. The complaint further alleged that the project was nine months behind its substantial completion date, far from complete, and over budget when TPG cancelled the contract. The cost to fix the mismanagement caused by Greystone was $18.9 million.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
OSHA Issues Final Rule on Electronic Submission of Injury and Illness Data
September 25, 2023 —
Garret Murai - California Construction Law BlogThe U.S. Occupational Safety and Health Administration (OSHA) has issued its
final rule (Final Rule) on electronic submission of injury and illness information. The Final Rule applies to employers with 100 or more employees in certain high-hazard industries, including construction, and requires such employers to electronically submit injury and illness information to OSHA on a yearly basis. If you fall into that category, here’s what you need to know to comply:
Who do the Final Rules apply to?
The Final Rules apply to companies with 100 or more employees in certain high-hazard industries. This includes construction companies with 100 or more employees working on federal construction projects. The “100 or more employees” threshold applies to companies with 100 or more employees at any time during the previous calendar year.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
PSA: Performing Construction Work in Virginia Requires a Contractor’s License
March 04, 2019 —
Christopher G. Hill - Construction Law MusingsAs a Virginia construction attorney, I often get calls for assistance in dealing with payment disputes. Frequently, these calls come from out of state contractors and subcontractors that have performed work in Virginia.
One of the first questions that I ask is whether these contractors and subcontractors hold a contractor license from the Commonwealth of Virginia. While most do, some do not, likely because they are unaware of the requirement in Virginia that all contractors be licensed when performing work in the Commonwealth. While I haven’t done an exhaustive survey of the statutes and regulations of every state of the union on this point, the confused silence leads me to believe that such is not a requirement in every state. The most common reaction after “I had no idea I needed one” is that the general contractor holds a license so they did not think they needed to hold one. As I stated above, this is incorrect.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
August 10, 2021 —
Justin K. Fortescue - White and WilliamsThe selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust Financial Services, No. 21-cv-03573, 2021 U.S. Dist. LEXIS 129464 (N.D. Ca. July 12, 2021), the court provided answers on all three of these issues.
In Amtrust, the parties filed cross-motions to compel arbitration. Although both parties agreed the dispute was arbitrable, they disagreed about whether Public Risk Innovations, Solutions and Management’s (PRISM) arbitrator was qualified under the terms of the applicable contract. In seeking to have PRISM’s arbitrator disqualified, Amtrust argued that he: (1) was not a “current or former official of an insurance or reinsurance company”; and (2) was not “disinterested.” Amtrust also argued that because PRISM named an unqualified arbitrator (and presumably the time to appoint had passed), PRISM should be deemed to have failed to select an arbitrator as required by the contract and that Amtrust had the right to select a second arbitrator of its choice.
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Justin K. Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com