Florida Issues Emergency Fraud Prevention Rule to Protect Policyholders in Wake of Catastrophic Storms
November 05, 2024 —
Geoffrey B. Fehling & Olivia G. Bushman - Hunton Insurance Recovery BlogLast week, just before Hurricane Milton made landfall, Florida state officials issued an emergency decree to all licensed insurance adjusters in the state to protect homeowners against “unfair and deceptive acts” and “post-storm fraud” by insurance carriers. According to The Washington Post, the Florida Department of Financial Services is requiring that all claim adjusters provide an explanation for each change they make to a consumer’s loss estimate, document those changes, and retain all versions of the estimate and identify who made those revisions. When processing claims, adjusters must also use an electronic estimating system that provides an itemized report of all damage, as well as labor, materials, equipment and supplies. Those costs should be consistent with what a contractor or a repair company in that particular area would charge.
“Property damage from Hurricane Milton will be catastrophic and may result in billions of dollars in property losses,” the emergency rule states. “Fair and transparent loss estimates and claims adjustments will be crucial to ensure Floridians are properly and fairly compensated under the terms of their property insurance contracts, while also ensuring ongoing insurer solvency after potentially momentous financial losses.”
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth and
Olivia G. Bushman, Hunton Andrews Kurth
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Ms. Bushman may be contacted at obushman@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
Court Affirms Summary Adjudication of Bad Faith Claim Where Expert Opinions Raised a Genuine Dispute
July 06, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn 501 East 51st Street etc. v. Kookmin Best Ins. Co., Ltd. (No. B293605, filed 4/2/20, ordered pub. 4/16/20), a California appeals court affirmed summary adjudication and dismissal of a bad faith claim based on the genuine dispute doctrine.
501 East 51st Street Long-Beach-10, LLC (501) was the owner of a 10-unit apartment complex, insured by Kookmin Best. In 2017, an underground water main alongside the building burst which, according to 501, caused the building to move and crack. 501 made a claim and supplied a geotechnical report finding cracks in the foundation walls, cracks in the stucco and significant floor deformation and tilting near the water leak. The engineer’s opinion concluded that that “existing building distress was substantially contributed to by the water main break. The water introduced to the soil medium appears to have triggered differential foundation movement causing the stress features to develop.”
Kookmin retained its own engineers to investigate, who returned an opinion that the leak had exacerbated long-term pre-existing settlement which would continue. Under the policy, damage to the building caused by earth movement and settlement were excluded, but water damage resulting from an “accidental discharge” of water was covered. Kookmin then obtained an opinion from coverage counsel, who opined that only damage allocable to the water leak would be covered.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
WSHB Expands into the Southeast
March 18, 2019 —
William Silverman – Wood Smith Henning & Berman LLPNational law firm Wood, Smith Henning & Berman LLP (WSHB) announced the opening of its North Carolina office, bringing the total number of offices nationwide to 24. Leading this office is prominent trial attorney William Silverman.
Mr. Silverman enjoys a well deserved reputation for consistent results throughout the Carolinas in complex commercial litigation. His practice areas include construction and corporate disputes, insurance coverage, first and third party insurance bad faith litigation, environmental, and catastrophic injury matters. He is an “AV Preeminent” rated attorney by Martindale-Hubbell, and has been listed in Business North Carolina’s Legal Elite in the Young Guns and Construction categories. Mr. Silverman comes to the Firm from a seven year tenure at Wall Templeton, where he served as a Shareholder.
Read the court decisionRead the full story...Reprinted courtesy of
William Silverman, Wood Smith Henning & Berman LLPMr. Silverman may be contacted at
wsilverman@wshblaw.com
Beyond the Disneyland Resort: World Class Shopping Experiences
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFIf you don’t want to venture far from the Disneyland Resort, consider heading to
the Outlets at Orange. Formerly known as the Block of Orange, this open air shopping center features outlet stores such as Neiman Marcus Last Call, Nordstrom Rack, and Sax Fifth Avenue’s Off Fifth, as well as an AMC movie theater, restaurants, Lucky Strike Bowling Alley, and Dave and Buster’s.
For another local option, head to
the Brea Mall, where you can find department stores such as Macy’s and Nordstrom’s and a host of other stores like Apple, Guess, and Tommy Bahama.
For a more exclusive shopping experience, travel to south Orange County's
Fashion Island of Newport Beach. Their department stores include Bloomingdale’s, Macy’s, Neiman Marcus’s, and Nordstroms, and the shopping center also contains many boutique shops and eateries.
Read the court decisionRead the full story...Reprinted courtesy of
Chinese Millionaire Roils Brokers Over Shrinking Mansion
August 20, 2014 —
John Gittelsohn and Karen Gullo – BloombergMillionaire Hiroshi Horiike spent two years searching California for a dream home, one grander than any he could find in his native China.
After visiting more than 80 properties in the Los Angeles area with an agent from Coldwell Banker, Horiike paid $12.25 million in cash for a four-bedroom, six-bath Tuscan-style mansion with a swimming pool, spa and guest house on 5.1 acres (2.1 hectares) overlooking the Pacific Ocean.
There was just one catch. After settling in, Horiike found the Malibu home had less living space than he’d been told -- a third less. It had 9,434 square feet (876 square meters) instead of the 15,000 square feet shown in marketing brochures from the seller’s agent, who also worked with Coldwell Banker.
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Ms. Gullo may be contacted at kgullo@bloomberg.net
Read the court decisionRead the full story...Reprinted courtesy of
John Gittelsohn and Karen Gullo, Bloomberg
Timely Legal Trends and Developments for Construction
February 18, 2019 —
Matt Viator - Construction ExecutiveThe construction industry is broad and the legal concerns of industry members can be far-reaching. What seems like tomorrow’s problem often jumps to the forefront and becomes a high priority today. 2018 was full of moments like these – and it’s important to keep track of legal developments for a glimpse at what may be waiting around the corner. With that in mind, here are some of the most important legal developments for the construction industry from the second half of 2018.
Sureties and Litigation – a Broad Topic
Sureties play a vital role on construction projects. On federal jobs and state, county or municipal jobs, surety bonds are typically required. That means it’s important to stay on top of how the courts are treating surety agreements.
Reprinted courtesy of
Matt Viator, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Construction Contract Clauses Only a Grinch Would Love – Part 4
November 30, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The fourth and final part in a multi-part series, here are some other important construction contract clauses that can put a damper on your holidays.
Provision: Warranty Provisions
- Typical Provision: “Subcontractor warrants to Contractor that all materials and equipment furnished shall be new unless otherwise specified and that all Work performed shall be performed in a good and workmanlike manner, of good quality and free from defects, and in conformance with industry standards, manufacturer’s recommendations and the Contract Documents. All work not conforming to these requirements, including substitutions not properly approved, shall be considered defective. Subcontractor agrees to promptly make good any and all defects due to faulty workmanship, materials and/or equipment which may appear within the Contract Documents, and if no such period is stipulated in the Contract, then for a period of one year from the date of acceptance by the Owner. Nothing herein shall shorten or limit any applicable periods of limitations including, but not limited to, those set forth in Civil Code, Part 2, Title 2, Chapter 3.”
- What it Means: Warranty periods are subject to the agreement of the parties. However, warranties are different than limitations periods, such as California’s 4 year statute of repose for patent defects and 10 year statute of repose for latent defects (note: a statute of repose is different than a statute of limitation. A statute of repose sets a deadline based on an event. So, for example, under the 10 year statute of repose for latent defects a claimant must bring a latent defect claim within 10 years following substantial completion even if the latent defect wasn’t discovered until 10 years and 1 month following substantial completion. A statute of limitation, in contrast, sets a deadline based on the occurrence of an injury or damage. So, for example, California has a 2 year statute of limitation for personal injuries, which sets a deadline of 2 years from the date of injury to bring a personal injury claim). Warranty periods are also different from limitations periods because most warranties require work to be corrected at no cost, and because many contracts include attorney’s fee provisions, breach of a warranty can give rise to claim for attorney’s fees as well.
- What You Can Do: Lower-tiered parties should examine warranty provisions to see if they are reasonable, and if not reasonable, should seek to either eliminate or limit those provisions, such as by reducing the warranty period or providing different warranty periods for different components of work, etc.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
CA Supreme Court Set to Rule on Important Occurrence Issue Certified by Ninth Circuit
March 22, 2018 —
William S. Bennett – SDV BlogThe California Supreme Court recently heard oral arguments over whether an insurer is required to cover allegations that a builder negligently failed to supervise an employee who sexually assaulted a middle school student while working at the student’s school. The question was originally certified to the California Supreme Court by the Ninth Circuit in 2016, but nothing happened until the court heard arguments on March 6, 2018.
Read the court decisionRead the full story...Reprinted courtesy of
William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com