Late Notice Bars Insured's Claim for Loss Caused by Hurricane
October 24, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the failure to provide prompt notice of damage caused by Hurricane Irma barred plaintiff's claim for coverage. Garcia v. Scottsdale Ins. Co., 2022 U.S. Dist. LEXIS 149312 (S.D. Fla. Aug. 18, 2022).
On September 10, 2017, plaintiff's property allegedly suffered damage due to Hurricane Irma. Shortly thereafter, plaintiff observed a water stain on the ceiling of the bedroom which was painted over. She did not take any pictures of the water stain before repainting. Plaintiff reported to her experts that she observed other water stains in various areas in 2017, 2018 and 2019, and that she painted over them each time. She again observed water stains in several rooms in 2020, at which time she became aware of the magnitude of the problem and went to an attorney. Plaintiff did not report her claim until May 27, 2020.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Halted in Wisconsin Due to Alleged Bid Issues
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFA $9 million construction project in Middleton, Wisconsin has been halted due to an allegation that the construction company, Newcomb, did not comply with the advertised bid requirements and they were not the lowest bidder, according to the Wisconsin State Journal.
“Dane County Judge Rhonda Lanford issued a temporary restraining order at the request of Associated General Contractors of Wisconsin asking the city to stop work on the…facility,” the Wisconsin State Journal reported.
“We are pleased with the court’s decision. Fairness and transparency in public contracting is critical for the industry,” Robert Barker, Associated’s executive vice president, told the Wisconsin State Journal. “The city must abide by the rules so that all bidders are given a fair shake.”
However, the city stated that Newcomb was the construction company with the lowest bid in that category.
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When Does a Claim Against an Insurance Carrier for Failing to Defend Accrue?
November 07, 2012 —
David McLain, Colorado Construction LitigationThe following is an update on our December 20, 2010 article regarding United States Fire Insurance Company v. Pinkard Construction Company, Civil Action No. 09-CV-01854-MSK-MJW, and its underlying dispute, Legacy Apartments v. Pinkard Construction Company, Case No. 2003 CV 703, Boulder County Dist. Ct. That article can be found here.
The present action, St. Paul Fire and Marine Insurance Co., et al. v. The North River Insurance Co., et al., Civil Action No. 10-CV-02936-MSK-CBS, encompasses the coverage battle that ensued between Pinkard’s insurers, Travelers Indemnity Company of America (“Travelers”) and United States Fire Insurance Company (“USFI”), following the settlement of Legacy’s construction defect claims against Pinkard. A short history of the underlying facts is as follows:
In 1995, Pinkard constructed the Legacy Apartments housing complex in Longmont, Colorado. Following construction, Legacy notified Pinkard of water leaks associated with various elements of construction. Legacy ultimately filed suit against Pinkard in 2003, and would go on to clarify and amend its defect claims in 2004, 2006, and again in 2008. Following Pinkard’s notification of Legacy’s claims, USFI provided a defense to Pinkard, but Travelers refused to do so, on the purported basis that Legacy’s allegations did not implicate property damage under the terms of Travelers’ policy.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain can be contacted at
mclain@hhmrlaw.com
NTSB Pittsburgh Bridge Probe Update Sheds Light on Collapse Sequence
June 06, 2022 —
Tom Ichniowski - Engineering News-RecordThe National Transportation Safety Board (NTSB) has issued an update in its investigation of the Jan. 28 collapse of Pittsburgh's Fern Hollow Bridge that provides additional information about how the collapse proceeded, but does not discuss why the accident occurred. That finding of a probable cause isn't expected until sometime in 2023.
Reprinted courtesy of
Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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Las Vegas HOA Case Defense Attorney Alleges Misconduct by Justice Department
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Las Vegas Review-Journal, "Daniel Albregts, who represents Benzer, filed court papers accusing Justice Department lawyers of misconduct that allowed the newspaper to obtain what are now sealed FBI and Las Vegas police reports of the failed negotiations in the summer of 2011." Albregts claimed that "prosecutors promised lawyers for Benzer’s co-defendant, attorney Keith Gregory, that they would not object if the lawyers filed reports of the negotiations under seal in a related matter in September, but then turned around in court and told a federal judge the reports should be made public."
The investigative reports had been sealed, however, "after prosecutors argued to make them public, U.S. Magistrate Judge George Foley Jr. ordered them unsealed." The reports were sealed again two days later, but the media (including the Las Vegas Review-Journal) obtained the documents while they were public.
“This conduct, when viewed in the light of the ceaseless and inflammatory reporting, particularly with regard to this defendant, is the kind of conduct which can only be remedied through dismissal,” Albregts wrote, as quoted in the Las Vegas-Review Journal.
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Contract Change #1- Insurance in the A201 (law note)
April 11, 2018 —
Melissa Dewey Brumback – Construction Law in North CarolinaInsurance– everyone needs it; everyone would just as soon not have to deal with it. I get it, I do. Attorneys, Insurance Agents– no one likes spending time with those folk! Good news though. The changes to the A201 mean that you may end up spending less time with both!
The most important change to the Insurance requirements of the AIA contract is that most of it has moved to a new Exhibit. Why is this important?
Instead of having to send the entire contract to your agent or broker, you can now send them only the section that they really need to review for compliance. This also means that if insurance policies change (as they surely will), the entire contract document does not need to be re-written– the Exhibit can be updated accordingly, leaving the rest of the A201 alone. Nice, right? This change was made to streamline insurance review and provide for that flexibility of the changing insurance market.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional
September 20, 2021 —
Anthony L. Miscioscia & Frank J. Perch, III - White and Williams LLPAwarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property damage” are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such claims were inherently intentional and do not state a covered “occurrence.”
In Velez v. AR Management Company, et al., 2021 N.J. Super. Unpub. LEXIS 1675 (Law Div. Bergen Co. Aug. 10, 2021), owners of a condominium unit rebuilt after a fire sued the condominium association, several association board members, the association’s property management company and the general contractor for the reconstruction work. The owners’ suit alleged faulty workmanship and incomplete repairs. In addition, the owners asserted fraud and breach of fiduciary duty claims against the management company, alleging conflicts of interest and self-dealing between the management company and the general contractor, which had common ownership.
In a third-party complaint, the management company sought coverage from the condo association’s liability and D&O insurer. The court dismissed the D&O coverage claim, noting that the management company was not a director or officer or otherwise entitled to insured status for the D&O coverage part.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Frank J. Perch, III, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Perch may be contacted at perchf@whiteandwilliams.com
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Coverage Rejected Under Owned Property and Alienated Property Exclusions
June 06, 2011 —
Tred R. EyerlyThe insured’s request for a defense when sued in a construction defect action was denied under the owned property exclusion and the alienated property exclusion in1777 Lafayette Partners v. Golden Gate Ins. Co., 2011 U.S. Dist. LEXIS 48562 (N.D. Cal. April 29, 2011).
In 1999, Lafayette Partners purchased an abandoned walnut processing factory to convert into living and working units. The property was developed into a rental property from 2000-2001, and thereafter rented. In May 2003, Lafayette Partners entered into a sales agreement with Wolff Enterprises LLC. The sale closed in February 2005. Wolff then converted the rental units into condominiums.
In December 2007, the Walnut Factory Owners Association sued Wolff for construction defects. In Lafayette Partners was added to the suit in 2009. The suit alleged a variety of defective conditions, including the roofs, exteriors, windows, electrical , plumbing, and mechanical components and systems.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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