Triable Issue of Fact Exists as to Insurer’s Obligation to Provide Coverage Under Occurrence Policy
March 08, 2021 —
Valerie A. Moore & Kathleen E.M. Moriarty – Haight Brown & Bonesteel LLPIn Guastello v. AIG Specialty Ins. Co. (No. G057714. filed 2/19/21 ord. pub. 2/23/21), a California appeals court held that triable issues of material fact exist which precluded summary judgment for an insurer seeking to disclaim coverage on the basis that the “occurrence” pre-dated the policy period where a dispute exists as to the timing of the subject “occurrence.”
In Guastello, a subcontractor built retaining walls from 2003 to 2004 for a housing development in Dana Point, California. In 2010, one of these retaining walls collapsed causing damage to a residential lot owned by Thomas Guastello.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Kathleen E.M. Moriarty, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com
Ms. Moriarty may be contacted at kemoriarty@hbblaw.com
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EPA Fines Ivory Homes for Storm Water Pollution
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFF“Utah’s largest home builder [Ivory Homes] has agreed to a $250,000 fine and to take several steps…to comply with Clean Water Act requirements to control pollution associated with storm-water runoff from construction sites,” reported The Salt Lake Tribune.
David Broadbent, Ivory Homes’ chief operating officer, stated in an email to The Salt Lake Tribune: “We are proud of our environmental record, particularly our storm-water compliance record. We are the first and the only home builder in Utah to implement a robust, companywide program to safeguard against sediment from entering Utah waters as a result of home-building activities.” Furthermore, Broadbent declared that the “inspections that led to the violations notices” did not yield any evidence that their “home-building practices resulted in any sediment discharge in any amount, let alone harm, to Utah waters.”
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Los Angeles Delays ‘Mansion Tax’ Spending Amid Legal Fight
April 25, 2023 —
Laura Curtis - BloombergLos Angeles plans to hold off spending most of the money collected from a voter-approved “mansion tax” until legal challenges against the initiative are resolved.
Mayor Karen Bass revealed in her 2023-24 budget plans that the city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month to fund the construction of more affordable housing.
The decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount.
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Laura Curtis, Bloomberg
Georgia Court of Appeals Holds That Policyholder Can “Stack” the Limits of Each Primary Policy After Asbestos Claim
December 19, 2018 —
Michael S. Levine & Alexander D. Russo - Hunton Insurance Recovery BlogA Georgia Court of Appeals judge recently ruled that Scapa Dryer Fabrics was entitled to $17.4 million worth of primary coverage from National Union Fire Insurance Company of Pittsburgh, PA for claims of injurious exposure to Scapa’s asbestos-containing dryer felts. Nat’l Union Fire Ins. Co. of Pittsburgh, PA v. Scapa Dryer Fabrics, Inc., No. A18A1173, 2018 WL 5306693, at *1 (Ga. Ct. App. Oct. 26, 2018). Scapa sought coverage under five National Union policies issued from 1983–1987. The 1983, 1984 and 1985 National Union policies had limits of $1 million per occurrence and $1 million in the aggregate. The liability limits for the 1986 and 1987 renewal policies were amended by endorsement to $7.2 million. Scapa sought to recover the full $17.4 million from all five policies. National Union argued that a “Non-Cumulative Limits of Liability Endorsement” in the 1986 and 1987 policies limited Scapa’s recovery to only $7.2 million. Scapa sued National Union and its sister company, New Hampshire Insurance Company (from which Scapa purchased excess liability coverage), in Georgia state court.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Alexander D. Russo, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Russo may be contacted at arusso@HuntonAK.com
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Congratulations to San Diego Partner Alex Giannetto and Senior Associate Michael Ibach on Settling a Case 3 Weeks Into a 5-Week Trial!
April 15, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPartner Alex Giannetto and Senior Associate Michael Ibach of BWB&O’s San Diego office started a trial in San Diego set to last at least five weeks. Plaintiffs alleged causes of action of negligence, trespass and nuisance against BWB&O’s client, arguing the owner/property manager did not properly handle alleged overwatering of the front yard, allegedly resulting in a landslide impacting 8 homes on a City slope in Carlsbad. Cross-Complainant City alleged independent negligence to fix the slope it owned and controlled as well as various indemnity-based causes of action against BWB&O’s client. Plaintiffs claimed over $24 million in damages, while Cross-Complainant placed sole blame for the incident on BWB&O’s client around $6 million.
Heading into trial, it was made clear that neither Plaintiffs nor Cross-Complainant would accept anything less than 7-figures to settle BWB&O’s client out of the case. In the first week of trial, BWB&O was able to leverage motions in limine, opening statements, and cross-examinations to secure a dismissal of three of the four causes of action alleged by Plaintiff that were associated with pain & suffering. In the second week of trial, BWB&O secured a dismissal of Cross-Complainant’s negligence cause of action paving the way for a settlement with Plaintiffs. Leveraging the threat of a non-suit when Plaintiffs rested, BWB&O secured resolution of Plaintiffs’ complaint for a fraction of what had previously been sought. Finally, BWB&O was able to secure a dismissal of the remaining indemnity-based causes of action in the cross-complaint and fully extract the client from the matter.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Accident/Occurrence Requirement Does not Preclude Coverage for Vicarious Liability or Negligent Supervision
June 06, 2018 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel, LLPIn Liberty Surplus Ins. Corp. v. Ledesma & Meyer Construction Co., Inc. (No. S236765, filed 6/4/18) (L&M), the California Supreme Court ruled that the liability insurance requirement that injury be caused by an “occurrence,” defined as an “accident,” does not preclude coverage of an employer’s independent tort liability for injury deliberately caused by its employee.
In L&M, Liberty insured a construction company that contracted to manage a construction project at a middle school in San Bernardino, California. A 13-year-old student subsequently sued the company in state court, alleging that she had been sexually molested by a company employee, Hecht. Among others, she alleged a cause of action for negligent hiring, retention and supervision of the employee. The construction company tendered to Liberty, which defended the employer under a reservation of rights while seeking declaratory relief in federal court. The district court granted summary judgment for Liberty, ruling that the injury was not caused by an “occurrence.” On appeal, the 9th Circuit Court of Appeals certified the question to the California Supreme Court as a matter of state law.
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
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Heat Stress Deaths Show Europe Isn’t Ready for Climate Change
August 07, 2023 —
Olivia Rudgard - BloombergMore than 60,000 people died as a result of record-breaking temperatures in Europe last summer, a study has found, raising concerns about multiple countries’ lack of preparation for extreme heat fueled by climate change.
Between May 30 and Sept. 4 of last year, there were 61,672 deaths caused by hot weather across 35 European countries, according to the study by researchers at the Barcelona Institute for Global Health and the French National Institute of Health,
published in the journal Nature Medicine. Last year’s was the warmest summer ever recorded on the continent, breaking a record set just one year earlier. Temperatures were more than 2C above the recent average for countries that included France, Switzerland and Spain.
Last year’s extreme-heat casualties echo an earlier hot summer in 2003, when 70,000 excess deaths were recorded across Europe. The loss of life led several countries to introduce early-warning systems for heat waves, as well as more planning around health care services. But the large number of deaths in 2022 shows the limitations of these measures, the study’s authors noted.
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Olivia Rudgard, Bloomberg
Federal Public Works Construction Collection Remedies: The Miller Act Payment Bond Claim
July 30, 2015 —
William L. Porter – The Porter Law Group BulletinFederal public work construction projects are unique in that there are no Stop Payment Notice or Mechanics Lien remedies available. Furthermore, although a remedy is available by proceeding against the original contractor’s payment bond under a federal law known as the “Miller Act” and its corresponding Federal Regulations (40 USCS 3131 et seq. and 48 CFR 28.101-1 et seq.), this remedy is not available to all subcontractors or suppliers. In addition, there are circumstances where a different form of security can be substituted for the payment bond (40 USCS 3131(b)(2)).
Among those who generally cannot sue on the Miller Act Payment Bond are third-tier subcontractors and suppliers to suppliers. (See J.W. Bateson Company v. Board of Trustees, 434 U.S. 586 (1978)). As a general rule, every subcontractor, laborer, or material supplier who deals directly with the prime contractor may bring a lawsuit against the bond company providing the Miller Act Payment Bond. Further, every subcontractor, laborer, or material supplier who has a direct contractual relationship with a first tier subcontractor may bring such an action.
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William L. Porter, The Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com