Recent Developments Involving Cedell v. Farmers Insurance Company of Washington
September 05, 2022 —
Donald Verfurth, Sally Kim, Stephanie Ries & Kyle Silk-Eglit - Gordon & Rees Insurance Coverage Law BlogEver since the Washington Supreme Court’s 2013 decision in Cedell v. Farmers Insurance Company of Washington, 176 Wn.2d 686, 295 P.3d 239 (2013), insurance coverage attorneys have been struggling to define the exact parameters of the Cedell ruling in order to safeguard the attorney-client privilege as to the communications between the insurer and its counsel. As a brief background, the Washington Supreme Court held in Cedell that there is a presumption of no attorney-client privilege in a lawsuit involving bad faith claims handling. However, an insurer can overcome the presumption of no attorney-client privilege by showing that its counsel provided legal advice regarding the insurer’s potential liability under the policy and law, and did not engage in any quasi-fiduciary activities, i.e. claims handling activities, such as investigating, evaluating, adjusting or processing the insured’s claim.
Since Cedell, various trial courts have held that the following activities by an insurer’s counsel constitute quasi-fiduciary conduct that do not overcome the presumption of no attorney-client privilege, resulting in an order to produce documents and/or to permit the deposition of the insurer’s counsel:
- Insurer’s attorney being the primary or sole point of contact with the insured for the insurer;
- Insurer’s attorney requesting documents from the insured that are relevant to the investigation of the claim;
- Insurer’s attorney communicating directly with the insured or the insured’s counsel regarding claims handling issues or payments;
- Insurer’s attorney interviewing witnesses for purposes of the investigation of the claim;
- Insurer’s attorney conducting an examination under oath of the insured;
- Insurer’s attorney drafting proposed or final reservation of rights letter or denial letter to the insured; and
- Insurer’s attorney conducting settlement negotiations in an underlying litigation.
Reprinted courtesy of
Donald Verfurth, Gordon Rees Scully Mansukhani,
Sally Kim, Gordon Rees Scully Mansukhani,
Stephanie Ries, Gordon Rees Scully Mansukhani and
Kyle Silk-Eglit, Gordon Rees Scully Mansukhani
Mr. Verfurth may be contacted at dverfurth@grsm.com
Ms. Kim may be contacted at sallykim@grsm.com
Ms. Ries may be contacted at sries@grsm.com
Mr. Silk-Eglit may be contacted at ksilkeglit@grsm.com
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You Need to be a Contractor for Workers’ Compensation Immunity to Apply
November 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesIf you are a contractor, you are aware of workers’ compensation immunity when it comes to injuries on the site; and, if not, you should be. It is this workers’ compensation immunity (where workers compensation is the exclusive form of liability for an injured employee) which is why a contractor should generally always want to ensure its subcontractors have workers’ compensation insurance. Workers’ compensation immunity would protect a contractor that is being sued by a subcontractor’s employees that are injured on the job. For more information on workers’ compensation immunity, please check out this
article and this
article.
In this regard, Florida Statute s. 440.10(1)(b) provides:
In case a contractor sublets any part or parts of his or her contract work to a subcontractor or subcontractors, all of the employees of such contractor and subcontractor or subcontractors engaged on such contract work shall be deemed to be employed in one and the same business or establishment, and the contractor shall be liable for, and shall secure, the payment of compensation to all such employees, except to employees of a subcontractor who has secured such payment.
(If the subcontractor does not have workers’ compensation insurance, the contractor is deemed the statutory employer and its workers’ compensation insurance would apply. Otherwise, the subcontractor’s workers compensation insurance would apply.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Manhattan Homebuyers Pay Up as Sales Top Listing Price
October 01, 2014 —
Oshrat Carmiel – BloombergManhattan apartment prices rose 4.2 percent in the third quarter, bolstered by buyers who increasingly agreed to pay what sellers were asking or more.
The median sale price of condominiums and co-ops was $908,242, up from $872,000 a year earlier, according to a report today from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The average price per square foot increased 12 percent to $1,270, the third-highest in records dating to 1989, the firms said.
Prices in Manhattan have climbed for four consecutive quarters, encouraging more owners to list properties after an inventory shortage last year. With the number of apartments on the market up 28 percent from the third quarter of 2013, buyers focused on those that were not-too-ambitiously priced, said Jonathan Miller, president of New York-based Miller Samuel.
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Oshrat Carmiel, BloombergMr. Carmiel may be contacted at
ocarmiel1@bloomberg.net
Congratulations to Haight Attorneys Selected to the 2020 Southern California Super Lawyers List
April 27, 2020 —
Haight Brown & BonesteelSeven Haight attorneys have been selected to the 2020 Southern California Super Lawyers list.
Congratulations to:
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Haight Brown & Bonesteel LLP
Hail Drives Construction Spending in Amarillo
October 25, 2013 —
CDJ STAFFAmarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million.
The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald.
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Index Demonstrates Increase in Builders’ Sentiment
September 17, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing reported that “[b]uilders’ sentiment jumped four points to 59, the highest level since November 2005, according to the September NAHB/Wells Fargo Housing Market Index.” Furthermore, builders mentioned “renewed interest by potential home buyers and higher traffic in their models and through their phone calls.”
Eye on Housing also reported that the “inventory of new home for sale has increased to over 200,000.” While still lower than the 300,000 typical in 1990s and early 2000s, “the steady increase has provided a better selection for consumers.”
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Colorado’s Federal District Court Finds Carriers Have Joint and Several Defense Duties
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiAn issue that has plagued builders in Colorado construction defect litigation is the difficulty of getting additional insured carriers to fully participate in the builder’s defense, oftentimes leaving the builder to fund its own defense during the course of the litigation.
Many additional insurers offer a variety of positions regarding why they will not pay for fees and costs during the course of a lawsuit. Some insurers argue that, until after trial, it is impossible to determine its proper share of the defense, and therefore cannot make any payments until the liability is determined as to all of the potentially contributing policies. (This is often referred to as the “defense follows indemnity” approach.) Others may make an opening contribution to defense fees and costs, but fall silent as fees and costs accumulate. In such an event, the builder may be forced to fund all or part of its own defense, while the uncooperative additional insured carrier waits for the end of the lawsuit or is faced with other legal action before it makes other contributions.
Recent orders in two, currently ongoing, U.S. District Court cases provide clarity on the duty to defend in Colorado, holding that multiple insurers’ duty to defend is joint and several. The insured does not have to go without a defense while the various insurers argue amongst themselves as to which insurer pays what share.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
New Law Impacting Florida’s Statute of Repose
June 29, 2017 —
Meredith N. Reynolds & K. Stefan Chin – Peckar & Abramson, P.C.On June 14, 2017, Governor Scott signed House Bill 377 into law, clarifying that Florida’s ten-year
Statute of Repose commences either when the work is completed or when final payment becomes
due, whichever is latest. The new law resolves a problem for contractors created by a recent Florida
court ruling that held the Statute of Repose to commence as late as when the owner made final
payment. The applicable amendments to Florida Statute Section 95.11 take effect on July 1, 2017
and apply to all causes of action that accrue on or after that date.
Perhaps the most critical component of a construction professional’s risk management program is
the length of time that it is liable for the work performed on a project. While contractual warranty
periods typically run one or two years from substantial completion, the true length of a contractor’s
post-completion obligation is measured by the “Statute of Repose,” which establishes the period of
time following the completion of construction that a lawsuit can be filed for construction defects.
Reprinted courtesy of
Meredith N. Reynolds, Peckar & Abramson, P.C. and
K. Stefan Chin, Peckar & Abramson, P.C.
Ms. Reynolds may be contacted at mreynolds@pecklaw.com
Mr. Chin may be contacted at kschin@pecklaw.com
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