Federal Court Enforces “Limits” and “Most We Will Pay” Clauses in Additional Insured Endorsement
September 13, 2021 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn the recent case of Zurich Am. Ins. Co. v. XL Ins. Am., Inc., 20-CV-4614 (LJL), 2021 WL 3617218 (S.D.N.Y. Aug. 16, 2021), the United States District Court for the Southern District of New York—in deciding a motion for consideration—had occasion to review the 2013 ISO changes to the additional insured endorsement, and held that coverage under a policy providing additional insured coverage was limited to the $1,000,000 required by contract, and not the $2,500,000 limit to the policy.
In Zurich, Zurich and its named insured D.A. Collins sought the full limits of the primary policy issued by XL to the D.A. Collins’ subcontractor, HBI, which are $2,5000 per occurrence and in the aggregate, for an underlying personal injury lawsuit. XL also issued an excess policy in the amount of $5,000,000 to HBI.
The contract between D.A. Collins and HBI required HBI to obtain commercial liability coverage “in an amount of $1,000,000 per occurrence and $2,000,000 in the aggregate. It further provides that the “required limits for the umbrella excess coverage shall be sufficient to provide a total of $5,000,000 per occurrence/aggregate.”
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Experts Weigh In on Bilingual Best Practices for Jobsites
February 22, 2018 —
Jim Parsons – ENRIt’s the rare construction firm that doesn’t cite people as its most important resource. And over the past two decades, that asset has become increasingly bilingual. Indeed, more than 27% of workers in construction are Hispanic or of Latino ethnicity, according to the most recent available data from the U.S. Bureau of Labor Statistics (BLS).
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Jim Parsons, Engineering News-Record
Court Clarifies Sequence in California’s SB800
December 20, 2012 —
CDJ STAFFAs California’s Right-To-Repair law, SB800, nears its ninth birthday, it has remained “largely untested in the legal system” as noted by Megan MacNee of Wood, Smith, Henning & Berman LLP on the site RealEstateRama. She writes that some homeowners have requested documents prior to filing a claim, which she describes as an attempt to “game the system,” and “analogous to requiring a party to litigation to comply with discovery before a complaint is filed.”
The court determined that homeowners may not request documents from the builder until they have actually filed a claim. The court noted that SB800 lacks any clear indication that homeowners may request documents before filing a claim (and also does not indicate that a builder would have to provide documents in these circumstances). The court concluded that the section that sets up the prelitigation procedures occurs before they section on documents discovery. “Because the document request is part of the prelitigation procedure, and the prelitigation procedure does not begin until the homeowner has served notice of a claim, it follows that there can be no prelitigation obligation to produce documents under section 912, subdivision (a) unless the homeowner has commenced the prelitigation procedure by serving notice of a claim.”
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What a Difference a Day Makes: Mississippi’s Discovery Rule
November 16, 2023 —
William L. Doerler - The Subrogation StrategistThe discovery rule applies to latent injuries, such that the statute of limitations does not begin to run until the plaintiff knows of or should have known of the injury. In Western World Ins. Group v. KC Welding, LLC, No. 2022-CA-00527-SCT, 2023 Miss. LEXIS 278 (KC Welding), a majority of the justices on the Supreme Court of Mississippi (Supreme Court) affirmed the trial court’s ruling that Western World Insurance Group (Insurer) filed its lawsuit one day late. Thus, the statute of limitations barred Insurer’s lawsuit.
In KC Welding, on July 12, 2018, KC Welding, LLC (KC Welding) sent an employee to Sunbelt Shavings, LLC (Sunbelt) to repair the door of a box containing wood chips. Sunbelt’s employees discovered that KC Welding employees were welding a storage bin that had not been emptied of wood chips and Sunbelt’s employees asked KC Welding’s employees to leave. After that, Sunbelt’s employees attempted to soak the area with water. Later than night, a fire started on Sunbelt’s property, apparently as the result of smoldering wood shavings, a fire that was extinguished on July 13, 2018.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
Coping with Labor & Install Issues in Green Building
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFBuilder reported on the problem that builders have with using green techniques—finding skilled laborers and subs. “If a green product is not installed correctly it most likely won’t do its job,” building scientist Carl Seville said to Builder.
Austin Trautman of Vali Homes told Builder that the biggest problem he had with his first net-zero prototype house was the HVAC work. “It’s actually a simpler system with straightforward installation, but they just couldn’t figure it out.”
Cliff Majersik, executive director of the Institute for Market Transformation, said that teaching subs the new techniques is worthwhile: “Once you know how to do it, an energy-efficient house can even be less expensive to build.”
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A Riveting (or at Least Insightful) Explanation of the Privette Doctrine
May 02, 2022 —
Garret Murai - California Construction Law Blog“The wheels of justice turn slowly, but grind exceedingly fine” – Plutarch
And grind they do . . . slowly. For long time readers of the California Construction Law Blog you may recall a case we reported on over three years ago in 2018 – Sandoval v. Qualcomm Incorporated – a rather sad case about a severely injured employee of an electrical subcontractor with an even more surprisingly ending.
In Sandoval, the 4th District Court of Appeals affirmed a $7 million judgment against project owner Qualcomm Incorporated in which a jury found that Qualcomm was liable under the Privette doctrine for injuries sustained by the employee who was severely burned over one third of his body by an “arc flash” from a live circuit breaker. The Court of Appeals, in a surprising decision, upheld the verdict holding that Qualcomm was liable even through: (1) Qualcomm had informed the electrical subcontractor that certain live circuit breakers were energized; (2) Qualcomm had not authorized the lower-tiered contractor to remove a panel that resulted in the arc flash; and (3) employees of Qualcomm were not in the room when the accident happened.
Fast forward three years to September 2021. Qualcomm attorneys petition the California Supreme Court for review of the Court of Appeal’s decision. And the Supreme Court granted review.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Strategic Communication Considerations for Contractors Regarding COVID-19
April 06, 2020 —
Sarah Skidmore - Construction ExecutiveThe COVID-19 is a worldwide wildcard. Around the globe, organizations are forced to communicate with a wide variety of audiences. Audiences range from employees to customers and vendors—and more. A pandemic of this nature is new for the modern globalized workforce. Societies realize the breadth of international influence involved in a single supply chain now more than ever before. Domestically based organizations realize their place in the larger global system—and the construction industry is a perfect example.
Here are key questions for leaders to ponder.
1. Who are your audience groups?
In a wildcard situation, organizations are often tasked with communicating to many different audience groups and stakeholders. So, take some time to think beyond the groups that come top-of-mind such as customers, vendors, partners and owners.
- Does the organization have any community-based events on the calendar?
- Does the organization have professional development sessions on the calendar?
- Does the organization have planned maintenance or facilities work scheduled with third parties?
- Does the organization have interns or apprenticeship programs with local colleges?
Reprinted courtesy of
Sarah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Skidmore may be contacted at
sarah@skidmore-consulting.com
Under Privette Doctrine, A Landowner Delegates All Responsibility For Workplace Safety to its Independent Contractor, and therefore Owes No Duty to Remedy or Adopt Measures to Protect Against Known Hazards
September 29, 2021 —
Krsto Mijanovic, Jeffrey C. Schmid & John M. Wilkerson - Haight Brown & BonesteelIn Gonzalez v. Mathis (2021 WL 3671594) (“Gonzalez”), the Supreme Court of California held that a landowner generally owes no duty to an independent contractor or its workers to remedy or adopt other measures to protect them against known hazards on the premises. The Court applied the Privette doctrine which establishes a presumption that a landowner generally delegates all responsibility for workplace safety to its independent contractor. (See generally Privette v. Superior Court (1993) 5 Cal.4th 689; SeaBright Ins. Co. v. US Airways, Inc. (2011) 52 Cal.4th 590.) As such, the independent contractor is responsible for ensuring that the work can be performed safely despite a known hazard on the worksite, even where the contractor and its workers are unable to take any reasonable safety precautions to avoid or protect themselves from the known hazard.
In Gonzalez, the landowner, Mathis, had hired an independent contractor, Gonzalez, to clean a skylight on his roof. To access the skylight, Gonzalez needed to utilize a narrow path between the edge of the roof and a parapet wall. While walking along this path, Gonzalez slipped and fell to the ground, sustaining serious injuries. Gonzalez alleged this accident was caused by several dangerous conditions on the roof, including a slippery surface, a lack of tie-off points to attach a safety harness, and a lack of a guardrail. Gonzalez was aware of all of these hazards prior to the accident.
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Krsto Mijanovic, Haight Brown & Bonesteel,
Jeffrey C. Schmid, Haight Brown & Bonesteel and
John M. Wilkerson, Haight Brown & Bonesteel
Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com
Mr. Schmid may be contacted at jschmid@hbblaw.com
Mr. Wilkerson may be contacted at jwilkerson@hbblaw.com
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