City Covered From Lawsuits Filed After Hurricane-Damaged Dwellings Demolished
January 15, 2014 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit affirmed the District Court's finding that a duty to defend was owed St. Bernard Parish after it was sued for condemning and demolishing housing destroyed by Hurricane Katrina. Lexington Ins. Co. v. St. Bernard Parish Gov't, 2013 U.S. App. LEXIS 24292 (5th Cir. Dec. 6, 2013).
St. Bernard's policies with Lexington provided coverage for "property damage" and "personal and advertising injury." The policies included a $10,000,000 per occurrence and aggregate limit, subject to a $250,000 retained limit.
Lexington denied coverage and filed for a declaratory judgment that the policies' $250,000 retained limit applied separately to each alleged demolition or property damage asserted in the underlying actions. Under this theory, no defense would be owed because no property had a value exceeding $250,000. The District Court found that only one retained limit applied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Product Liability Alert: Evidence of Apportionment of Fault Admissible in Strict Products Liability Action
March 26, 2014 —
R. Bryan Martin and Kristian B. Moriarty - Haight Brown & Bonesteel LLPIn Romine v. Johnson Controls, Inc. (No. B239761, filed March 17, 2014), the California Court of Appeal for the Second District held that a trial court must permit a defendant, in a products liability action, to present evidence of apportionment of fault among settling and non-settling entities. The case involved an automobile collision in which the plaintiff was struck from behind, causing the driver’s seat to recline and propel plaintiff into the back seat where she struck her head. Plaintiff was left quadriplegic as a result.
Plaintiff brought suit against the driver who caused the accident, the Nissan entities who manufactured the car plaintiff was driving, Johnson Controls, Inc. (“Johnson”), Ikeda Engineering Corporation (“Ikeda”), Vintec Co. (“Vintec”), and Autoliv ASP, Inc., who designed and manufactured the driver’s seat of the vehicle plaintiff was driving, and against Faurecia Automotive Seating, Inc. who manufactured the recliner mechanism of plaintiff’s vehicle’s front seat. Ikeda participated in the design of the driver’s seat and Vintec manufactured the driver’s seat. Johnson manufactured the seat belt for the driver’s seat of plaintiff’s vehicle in accordance with Nissan’s design. Prior to trial, plaintiff settled with the defendant driver, the Nissan defendants, the Autoliv defendants, and Faurecia Automotive Seating, Inc. Plaintiff elected to proceed to trial solely on a cause of action for strict products liability against Ikeda and Vintec. Pursuant to a stipulation, Johnson agreed it would be legally responsible for damages awarded to plaintiff at trial based upon the actions of Vintec or Ikeda.
At trial, the court precluded Vintec and Ikeda from offering evidence that: (1) plaintiff would not have been injured if her vehicle’s seat belt was designed in a different manner by Nissan; (2) Nissan chose the manufacturer of the recliner mechanism and required defendants to use that manufacturer and that part in the seat; and (3) The other defendants had already reached settlements with plaintiff.
Reprinted courtesy of
R. Bryan Martin, Haight Brown & Bonesteel LLP and
Kristian B. Moriarty, Haight Brown & Bonesteel LLP
Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Moriarty may be contacted at kmoriarty@hbblaw.com
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Mixing Concrete, Like Baking a Cake, is Fraught with Problems When the Recipe is Not Followed
February 26, 2015 —
Garret Murai – California Construction Law Blog“Mixing concrete, like baking a cake, is fraught with problems when the recipe is not followed.” – Justice Kenneth Yegan, State Ready Mix, Inc. v. Moffatt & Nichol, California Court of Appeal for the Second District, Case No. B253421 (January 8, 2015).
I love jurists who aren’t afraid to mix in a little humour in their opinions.
But “[t]he law,” as a framed needlepoint in one of my colleague’s offices says, “is serious business.” And the State Ready Mix case involved one of the thorniest problems in construction litigation:
What to do when you’re sued and you think someone else is to blame.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
How the California and Maui Wildfires Will Affect Future Construction Projects
October 30, 2023 —
Susan Doering - Construction ExecutiveJust like any kind of fire, wildfires are caused by the presence of fuel and a spark. In the case of the
2017 fires in the wine country of California, along with the state's 2018
Camp Fire, the fuel was dry leaf litter, branches and downed trees. And the spark, in some cases, resulted from electric utility lines and, in other cases, due to contractor’s work.
More recently, this summer's Maui fires have taken hundreds of lives—deceased and missing—and burned more than 2,500 acres. Lahaina’s historic sites cannot be replaced, and estimates of the rebuild costs are near $5 billion. In Hawaii, the fuel was the same as in California: dried forest debris. It is alleged that the spark was from a powerline downed by extreme winds from Hurricane Dora. While sparks were present, it is the increased volume of fuel that has been the true source of the disastrous recent wildfires.
The increased presence of fuel is the result of recent changes in forestry-management practices, coupled with accelerated climatic shifts in recent years toward hotter, drier weather from 2011 to 2020 in California and 2022 to 2023 in Maui, increasing both frequency and severity.
Reprinted courtesy of
Susan Doering, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Couple Sues Attorney over Construction Defect Case, Loses
June 10, 2011 —
CDJ STAFFThe California Court of Appeals has ruled against a couple who sued their lawyer, after they were unhappy with the results of a construction defect case. Craig and Jeanne Petrik sued Mahaffey and Associates for legal malpractice and breach of contract. Their lawyer, Douglas L. Mahaffey, had settled their case for $400,000. The Petricks claimed Mahaffey did not have the authority make an offer to compromise.
In the original case, Mahaffey held back the $400,000 awarded in the settlement until he and the Petricks came to terms on how much of that was owed to Mahaffey. The lower court concluded that the Petricks were due $146,323,18. The jury did not agree with the Petrik’s claim that conditions had been met in which Mahaffey would not be charging them costs.
Judges O’Leary and Ikola wrote the opinion, with the third judge on the panel, Judge Bedworth offering a dissent only on their view of the cost waiver clause.
Read the court’s opinion
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Denver’s Mayor Addresses Housing and Modifying Construction Defect Law
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFDuring his State of the City Address, Mayor Michael Hancock discussed housing, specifically calling “on the state legislature to modify a construction defects law,” according to KWGN news.
“…it is my sincere hope that the 2015 State Legislature will recognize the chilling effect the construction defects law has on the for sale condo market,” Hancock stated, as reported in The Denver Post. “I encourage lawmakers to modify the law so that we can experience the full potential of housing in metro Denver.”
Hancock also claimed that though the population has increased, the “housing stock has not kept pace,” according to KWGN. “This gap is exacerbated by rising home prices, which are good news for homeowners and our local economy, but a challenge for many residents and families.”
Read the full story, KWGN...
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Washington Supreme Court Interprets Ensuing Loss Exception in All-Risk Property Insurance Policy
May 20, 2024 —
David G. Jordan & William E. Phillips IV - Saxe Doernberger & Vita, P.C.The "ensuing loss" clause is a provision that restores coverage for property insurance claims that are subject to certain policy exclusions, such as “faulty workmanship” and “faulty design.” It applies in cases where there is damage from a covered cause of loss that ensues, or results from, the excluded cause of loss. Courts across jurisdictions have grappled with interpreting the breadth of this clause, leading to varying conclusions regarding its scope and applicability. One of the primary challenges in interpreting “ensuing loss” lies in determining the ultimate cause of damage. Courts must ascertain whether the ensuing loss is sufficiently distinct from the excluded event to warrant coverage under the policy. This analysis often hinges on whether the cause of loss is thought to constitute a separate and independent occurrence or is merely a continuation or exacerbation of the excluded event.
Reprinted courtesy of
David G. Jordan, Saxe Doernberger & Vita, P.C. and
William E. Phillips IV, Saxe Doernberger & Vita, P.C.
Mr. Jordan may be contacted at DJordan@sdvlaw.com
Mr. Phillips may be contacted at WPhillips@sdvlaw.com
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How a 10-Story Wood Building Survived More Than 100 Earthquakes
June 26, 2023 —
Todd Woody - BloombergOne sunny morning last month, an earthquake jolted northeast San Diego. Minutes later, another temblor hit, causing a 10-story wood building to sway.
The quakes, though, were triggered by a computer and the shaking was confined to a 1,000-square-foot platform on which the building — a full-size test model — stood.
The structure is the tallest ever subjected to simulated earthquakes on the world’s largest high-performance “shake table,” which uses hydraulic actuators to thrust the steel platform through six degrees of motion to replicate seismic force. The shake-table trials at a University of California at San Diego facility are part of the TallWood Project, an initiative to test the seismic resiliency of high-rise buildings made of mass timber. An engineered wood building material, mass timber is increasingly popular as a more sustainable alternative to carbon-intensive concrete and steel.
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Todd Woody, Bloomberg