Seattle Washington Building Expert Directory

Ohio Court Refuses to Annualize Multi-Year Policies’ Per Occurrence Limits

June 19, 2023 — Patricia Santelle, Adam Berardi & Lynndon Groff - White and Williams LLP
White and Williams recently obtained summary judgment against an insured on behalf of an insurer and a guarantor, establishing that two multi-year insurance policies provide per occurrence limits on a per policy rather than a per year basis, which shielded potential exposure by over $100 million. The insured had previously sought and obtained coverage under two policies in connection with a single occurrence arising out of massive environmental contamination claims involving a large industrial site. The issue of whether the policies provide per occurrence limits on a policy term or annual basis was not resolved in this earlier litigation. The first policy was effective for three years and provides per occurrence limits of $40 million. The second policy was effective for up to three years and provides per occurrence limits of $15 million. Reprinted courtesy of Patricia Santelle, White and Williams LLP, Adam Berardi, White and Williams LLP and Lynndon Groff, White and Williams LLP Ms. Santelle may be contacted at santellep@whiteandwilliams.com Mr. Berardi may be contacted at berardia@whiteandwilliams.com Mr. Groff may be contacted at groffl@whiteandwilliams.com Read the court decision
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No Coverage for Co-Restaurant Owners Who Are Not Named In Policy

August 24, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court denied two plaintiffs' claims for breach of the policy and for bad faith because they were not insureds under the policy. Tu v. Dongbu Ins. Co., 2017 U.S. Dist. LEXIS 115200 (N.D. Calif. July 24, 2017). Dongbu, a Hawaii insurance company, issued a two-year policy to Plaintiff Ken Tu for his business. He was the only named insured under the policy. The waste system at Plaintiffs' restaurant failed, causing fumes to impact neighboring tenants and waste to contaminate the underlying soil. Plaintiffs were forced to close the restaurant. A claim was tendered for damage and repair, loss of business income, and other insured losses. Dongbu denied coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?

October 15, 2024 — Steven H. Lee - Lewis Brisbois Newsroom
Atlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause. This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause. At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely. Read the court decision
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Reprinted courtesy of Steven H. Lee, Lewis Brisbois
Mr. Lee may be contacted at Steven.Lee@lewisbrisbois.com

The Latest News on Fannie Mae and Freddie Mac

May 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Federal Housing Finance Agency released a report on April 30th, which stated that in a severe economic downturn Fannie Mae (FNMA) and Freddie Mac (FMCC) “could require an additional bailout of as much as $190 billion… according to the results of stress tests,” according to Clea Benson writing for Bloomberg. “These results of the severely adverse scenario are not surprising given the company’s limited capital,” FNMA Senior Vice President Kelli Parsons said in a statement, as reported by Benson published in Bloomberg. “Under the terms of the senior preferred stock purchase agreement, Fannie Mae is not permitted to retain capital to withstand a sudden, unexpected economic shock of the magnitude required by the stress test.” Furthermore, in another Bloomberg article, Cheyenne Hopkins and Clea Benson reported that Democrats remain divided on how to replace FNMA and FMCC. “If we don’t get this right, we’ll create major disturbances in the housing market which will have a profound impact on families, on homeownership and certainly on our national economy,” Oregon Democrat Jeff Merkley said in an interview, as reported by Cheyenne and Benson. “Merkley described himself as ‘still in negotiations’ with the bill’s sponsors.” Read the full story, Clea Benson Article... Read the full story, Cheyenne Hopkins & Clea Benson Article... Read the court decision
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Determining the Cause of the Loss from a Named Windstorm when there is Water Damage - New Jersey

March 23, 2020 — Anna M. Perry - Saxe Doernberger & Vita
Water damage, while one of the leading causes of loss under a property policy, often results in some of the most complex claims due to the intersection of exclusions, sublimits, and complex wording within the policy. One particularly difficult issue is whether water damage caused by a storm surge is covered by the flood sublimit, or under the general policy or water limit. In New Jersey Transit Corp. v. Certain Underwriters at Lloyd’s (“NJTC v. Lloyd’s”), the New Jersey Appeals Court found that the “flood” sublimit of the policy should not apply as the cause of the loss was a “named windstorm” and not a “flood.” In NJTC v Lloyd's the court was asked to determine whether a flood sublimit applied to losses sustained during Superstorm Sandy. The court found that although there was “flooding,” the water damage was more closely related to the “named windstorm”, and therefore, the $400 million policy limits should apply. The court focused its analysis on the definitions for “flood” and “named windstorm” and by applying the efficient proximate cause doctrine to determine which would apply. When reviewing the definitions within the property policies, the court determined that although the loss would qualify under the definition of “flood,” the policy also contained a definition for “named windstorm” which “more specifically encompasses the wind driven water or storm surge associated with a ‘named windstorm’”1. In addition, the policy did not specifically state that “storm surge” associated with a “named windstorm” should be considered a “flood” event and fall under the “flood” sublimit. Read the court decision
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Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita
Ms. Perry may be contacted at amp@sdvlaw.com

Insurer's Summary Judgment Motion to Reject Claim for Construction Defects Upheld

August 15, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Third Circuit upheld the district court's order granting summary judgment in favor of the insurer on a claim seeking coverage for construction defects. Lenick Constr. v. Selective Way Ins. Co., 2018 U.S. App. LEXIS 15197 (3d Cir. June 6, 2018). Westrum was the general contractor for a 92 unit development, and it subcontracted with Lenick to perform rough and finish carpentry and to install paneling, windows, and doors provided by the developer. After the project was completed, it was discovered that some units experienced water infiltration, leaks and cracked drywall. The condominium development sued Westrum, alleging contract and warranty claims. Westrum impleaded Lenick, asserting claims for breach of contract and indemnification. Lenick sought a defense from its insurer, Selective. Selective defended under a reservation of rights. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurer's Motion to Dismiss Business Interruption, COVID-19 Claims Under Pollution Policy Fails

January 11, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer was unsuccessful in seeking to dismiss business interruption claims due to COVID-19 under a pollution policy. New York Botanical Garden v. Allied World Assur., 2021 N.Y. Misc. LEXIS 6012 (N.Y. Sup. Ct. Oct.15, 2021). The insured was forced to cease operation after executive orders by the governor and mayor were issued in March 2020. The insured also had to reduce its in-person workforce by 100%. The insured's claim for business interruption and contingent business interruption were denied by Allied. The insured sued for a declaratory judgment. Allied moved to dismiss, arguing that the executive orders were issued for prophylactic reasons in an effort to mitigate the spread of the virus. They were not issued solely to address the presence of COVID-19 at any non-insured owned location, but were issued broadly to limit the risk of spreading the COVID-19 virus. The insured responded that its broader pollution liability policy was not a typical civil authority policy that required the physical loss or damage to property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Canada Housing Surprises Again With July Starts Increase

August 13, 2014 — Greg Quinn – Bloomberg
Canada’s housing starts beat economist predictions for a fourth straight month in July, led by the most single-family home projects in almost two years. The pace of work on new homes rose 0.7 percent to a seasonally adjusted annual pace of 200,098 units, the fastest since October, from a revised 198,665 in June, Ottawa-based Canada Mortgage & Housing Corp. reported today. Economists forecast a decline to 193,000, according to the median of 18 responses in a Bloomberg News survey. Most economists and the central bank have predicted that rising prices and near-record debt loads would curb demand for housing. Instead, home resales, prices and starts have climbed after a tough winter, as mortgage rates remain near record lows. Read the court decision
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Reprinted courtesy of Greg Quinn, Bloomberg
Mr. Quinn may be contacted at gquinn1@bloomberg.net

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