Client Alert: Catch Me If You Can – Giorgio Is No Gingerbread Man
November 26, 2014 —
Steven M. Cvitanovic, Jesse M. Sullivan, & Colin T. Murphy - Haight Brown & Bonesteel LLPIn Giorgio v. Synergy Management Group, LLC (2014) Case No. B248752, a California Court of Appeal held in an opinion published on November 6, 2014, that the Los Angeles County trial court did not abuse its discretion in permitting service by publication on Defendant John Giorgio ("Giorgio") after numerous attempts to find his current address produced a single address in Los Angeles from which mailed service was returned. The Court ruled that publication in a Los Angeles newspaper was proper because Plaintiff had a reasonable belief that service by publication in that county was most likely to give actual notice to the party to be served.”
In this intentional tort action, Synergy Management Group, LLC ("Synergy") alleged in its Complaint that Giorgio converted assets of Synergy's assignor by submitting false expense reports which resulted in the misappropriation of the assignor's assets. Synergy personally served Giorgio with the original Complaint at a North Carolina airport and Giorgio failed to respond. Synergy subsequently filed a First Amended Complaint and attempted service via an address in the Netherlands. Again, Giorgio did not respond. Synergy then filed a request for entry of default against Giorgio which was entered that day.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Steven M. Cvitanovic,
Jesse M. Sullivan and
Colin T. Murphy
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Mr. Sullivan may be contacted at jsullivan@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com
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HVAC System Collapses Over Pool at Gaylord Rockies Resort Colorado
June 12, 2023 —
Jennifer Seward - Engineering News-RecordThe collapse May 6 of the HVAC system above an indoor pool at the Gaylord Rockies Resort near Denver sent six people to local hospitals, two with life-threatening injuries. An estimated 50 to 100 people were in the water or on the pool deck as pieces of the system fell into the pool and hot tub.
Reprinted courtesy of
Jennifer Seward, Engineering News-Record
Ms. Seward may be contacted at sewardj@enr.com
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The Hidden Price of Outdated Damage Prevention Laws: Part I
November 21, 2018 —
Brigham A. McCown - Construction ExecutiveExcavators know that dialing 811 triggers a process that requires all utilities operating in the service area to find and mark the location of their underground facilities so that they are not damaged during the excavation process. In addition, marking the location of the utilities is intended to keep the public safe, for instance by preventing an excavator from striking a gas line.
But excavators also know that in most states, the laws and regulations that govern these procedures are weak and that enforcement is even weaker. It’s an unfortunate fact that excavators and the public – typically the least culpable parties – suffer the consequences of weak damage prevention laws and lack of strong enforcement regimes.
Reprinted courtesy of
Brigham A. McCown, a publication of Associated Builders and Contractors. All rights reserved.
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English High Court Finds That Business-Interruption Insurance Can Cover COVID-19 Losses
November 02, 2020 —
Lorelie S. Masters, Scott P. DeVries, Patrick M. McDermott & Jorge R. Aviles - Hunton Insurance Recovery BlogIn a decision that will influence how policyholders and insurers around the world address business-interruption coverage for COVID-19 losses, the English High Court recently handed down its much-anticipated judgment in the “Test Case,” The Financial Conduct Authority (FCA) v. Arch et al. The High Court’s comprehensive analysis will likely serve as an additional tool in policyholders’ arsenal in the ongoing battles over COVID-19 coverage.
The Panel, composed of two well-respected judges, one from the High Court (the UK’s trial court) and the other from the English Court of Appeal, analyzed 21 sample policy wordings in coverage extensions for business-interruption losses due to disease or the issuance of public authority orders. (Many of these wordings are also found in policies sold to US policyholders.) The High Court found that the COVID-19 pandemic and ensuing government actions fell within the coverage provided by the sample policy wordings.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth,
Scott P. DeVries, Hunton Andrews Kurth,
Patrick M. McDermott, Hunton Andrews Kurth and
Jorge R. Aviles, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Mr. Aviles may be contacted at javiles@HuntonAK.com
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Pennsylvania Court Finds that Two Possible Causes Can Prove a Product Malfunction Theory of Liability
September 29, 2021 —
Gus Sara - The Subrogation StrategistIn Allstate Ins. Co. v. LG Elecs. USA, Inc., No. 19-3529, 2021 U.S. Dist. LEXIS 127014, the United States District Court for the Eastern District of Pennsylvania considered whether plaintiff’s expert engineer’s opinion that there were two possible causes of a fire—both related to alleged product defects within a refrigerator manufactured by the defendant—was sufficient to support the malfunction theory of products liability. The court found that because both potential causes imposed liability on the product manufacturer and the expert ruled out misuse of the product, as well as all external causes of the fire, it was not necessary for the engineer to identify a specific cause under the malfunction theory. The court also found that the expert’s investigation and opinions met the criteria set forth in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993) and the Federal Rules of Evidence and, thus, were admissible.
LG Electronics arose from a fire at the home of Thomas and Lisa Ellis. The public sector fire investigator identified the area of fire origin as the top of a refrigerator manufactured by LG Electronics USA, Inc. (LG). The Ellises filed a claim with their homeowner’s insurance carrier, Allstate Insurance Company (Insurer). Insurer retained a fire investigator and an electrical engineer to investigate the origin and cause of the fire. The fire investigator agreed with the public sector investigator that the fire originated at the top of the refrigerator. The engineer conducted a forensic inspection of the scene and ruled out all potential external ignition sources. He then examined the internal components of the refrigerator. He found arcing activity on a wire at the front top of the refrigerator. He opined that there were two possible causes of the fire: either the heater circuit insulation failed over time due to mechanical damage, or the heat from the internal light fixture ignited combustible components of the refrigerator. Since the engineer ruled out improper use of the refrigerator, he opined that the damage was caused by a manufacturing defect.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
When it Comes to Trials, it’s Like a Box of Chocolates. Sometimes You Get the Icky Cream Filled One
October 14, 2019 —
Garret Murai - California Construction Law BlogAccording to the California Judicial Council you have about a one in three chance your case will go to trial. In 2018, of the 210,028 unlimited civil cases that were filed (i.e., cases with an amount at issue of more than $25,000) only 33 percent made it all the way to trial. The odds are even less if you’re involved in a limited civil case (i.e., cases with an amount at issue of less than $25,000) where only 15 percent make it all the way to trial.
The reason: Lawyers are expensive. The other reason: Trials are risky. As well prepared as your counsel may be for trial, when it comes to trials, like boxes of chocolates, “Ya never know what you’re gonna get.” And sometimes you really, really don’t know what you’re going to get.
I had a client involved in a trial once. The defendant’s representative at trial was a well-to-do young man and heir to a hotel fortune. He was young, athletic and had a confident, carefree way about himself that reminded me of “Dickie” Greenleaf from the Talented Mr. Ripley. And I wasn’t the only one who noticed.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
No Duty to Defend Under Renter's Policy
May 03, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court agreed that the insurer had no potential liability under a policy where the insured allegedly concealed facts and made misrepresentations regarding the condition of the property it sold. State Farm Fire & Cas. Co. v. TFG Enterprises, LLC, 2021 Neb. LEXIS 27 (Neb. Feb. 19, 2021).
TFG sold a house to Jeffrey Barkhurst. Thereafter, Barkhurst filed suit alleging that TFG failed to disclose and actively concealed several defects, including water intrusion, the presence of mold, substandard repairs and structural issues. State Farm agreed to TFG defend under a reservation of rights. State Farm then filed a declaratory judgment action to determine its obligations under the policy.
State Farm relied upon various exclusions in the rental policy issued to TFG. The exclusions provided there would be no liability coverage for "property damage to property owned by an insured"; "property damage to property rented to, occupied or used by or in the care of the insured"; or "property damage to premises the insured sells. . . if the property damage arises out of these premises."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Jersey Supreme Court Upholds $400 Million Award for Superstorm Sandy Damages
February 22, 2021 —
Kerianne E. Kane - Saxe Doernberger & Vita In New Jersey Transit Corp. v. Certain Underwriters at Lloyd’s London,1 New Jersey’s highest court upheld an appellate decision2 finding that New Jersey Transit Corporation (“NJT”) was entitled to full coverage under its property insurance policy for damages caused by Superstorm Sandy.
In July 2012, NJT secured a multi-layered “all risks” property insurance program from eleven insurers for the policy period of July 1, 2012, to July 1, 2013. The policies covered all perils and damage to NJT’s property unless specifically excluded. The primary layer, issued by Lexington Insurance Company, provided the first $50 million of coverage. The second layer provided coverage up to $100 million, the third layer provided an additional $175 million, and the fourth layer provided coverage of $125 million, for a total of $400 million in coverage.
The excess layer insurers included Certain Underwriters At Lloyd’s, London, Torus Specialty Insurance Company, and several other carriers. All participating insurers’ policies included a standard policy form and separate endorsements, some of which were included in all policies and some of which were unique to specific insurers.
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Kerianne E. Kane, Saxe Doernberger & VitaMs. Kane may be contacted at
kkane@sdvlaw.com