Brazil Congress Chiefs Deny Wrongdoing in Petrobras Scandal
March 12, 2015 —
Raymond Colitt, Anna Edgerton and Sabrina Valle – Bloomberg(Bloomberg) -- Brazil’s congressional heads denied involvement in the country’s largest corruption scandal after being named among dozens of politicians for investigation.
Renan Calheiros and Eduardo Cunha, the heads of the Senate and lower house respectively, and Rio de Janeiro Senator Lindbergh Farias all rejected allegations of graft in the kickback scheme dubbed Carwash. Farias told the Folha de Sao Paulo newspaper in an interview published Sunday that while he may have acted improperly, his actions weren’t illegal. The senator said he took a 2 million real-donation ($650,000) from Andrade Gutierrez SA, a Rio-based construction company.
Reprinted courtesy of Bloomberg reporters
Raymond Colitt,
Anna Edgerton and
Sabrina Valle
Mr. Colitt may be contacted at rcolitt@bloomberg.net
Ms. Edgerton may be contacted at aedgerton@bloomberg.net
Ms. Valle may be contacted at svalle@bloomberg.net
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Why You Make A Better Wall Than A Window: Why Policyholders Can Rest Assured That Insurers Should Pay Legal Bills for Claims with Potential Coverage
March 14, 2018 —
Alan Packer and Graham Mills - Newmeyer & Dillion, LLPUnfortunately, policyholders, such as manufacturers and contractors, routinely face the unnecessary challenge of how to access all of the insurance coverage which they have purchased. Frequently, the most pressing need is to get the insurance company to pay the legal bills when the policyholders have been sued. The recent Iowa federal district court opinion in
Pella Corporation v. Liberty Mutual Insurance Company should help a policyholder in a dispute to require its insurance company to pay those legal bills sooner rather than later by highlighting that the duty to defend arises from the potential for coverage, and the insurer may not force the policyholder to prove the damage to obtain a defense.
In
Pella, a window manufacturer purchased several years of insurance coverage from Liberty Mutual. Similar to many companies, Pella had many “layers” of insurance coverage in any given year. These layers collectively function like a tower. The general idea is that each layer provides a certain amount of coverage after the insurance policy below it had paid its money. The Liberty Mutual insurance policies provided excess coverage.
After the
Pella window manufacturer made and sold its windows, it was sued in numerous lawsuits alleging that its windows were defective and that those defective windows caused a wide variety of damage to the structures in which they were installed. The window manufacturer tendered those lawsuits to its insurance companies in its tower of coverage, asking that the insurance companies pay its legal bills incurred in its defense. As to Liberty Mutual, the window manufacturer argued that the Liberty Mutual insurance policies were triggered, and so obligated to reimburse it, if a window was installed during the years that those policies provided coverage or if there was a mere allegation that a window was installed during the years that those policies provided coverage. Liberty Mutual opposed, arguing that the date of installation of the windows was insufficient to trigger the policies, and that the manufacturer was required to demonstrate the date that damage actually occurred to trigger a defense.
The key issue before the
Pella Court in this decision was a simple one: which insurance policies, if any, issued by Liberty Mutual had an obligation to pay the window manufacturer’s legal bills? The answer to that question is critical and financially significant. Getting an insurance company to honor its obligations and start paying the legal bills as soon as possible is very important for a policyholder because of the cost of defending oneself in a lawsuit; often the key reason why an insurance policy is even purchased is to provide the policyholder with the right to call upon the insurance company’s financial resources to defend it should it be sued.
In a ruling that will be welcomed by policyholders, the
Pella Court held that Liberty Mutual’s multiple insurance policies were triggered, and so obligated to pay for the window manufacturer’s defense, if one of two events occurred during the years in which those insurance policies provided coverage: (1) a window was actually installed during a year when the insurance policy provided coverage or (2) the window was alleged to be installed in the year that the insurance policy provided coverage. The Court agreed with the policyholder that once the windows were installed, property damage was alleged and “may
potentially have occurred” from that point on, thus the policies on the risk from that point forward. The practical effect of this ruling meant that Liberty Mutual had to reimburse the window manufacturer for the defense fees and costs that it had paid.
While
Pella was decided under Iowa law, the principles upon which it relied are similar to those applied under California law. Importantly, both California and Iowa law hold that an insurance company must provide a defense in response to a claim that is, or could be, covered by the insurance policy. The mere potential that the claim might be covered is enough for the insurance company to be obligated to pay for policyholder’s legal fees and costs.
Establishing that an insurance company must pay legal fees and costs as soon as possible allows a policyholder to save its own money. Why should a policyholder pay legal bills when it purchased an insurance policy as protection to ensure that it did not have to pay those bills? The answer is that a policyholder should not and, under
Pella, the policyholder does not have to. Rather, the insurance company must start paying for that defense from a very early date. Pella confirms for policyholders the position that their insurance companies should pay legal bills earlier rather than later.
Alan Packer is a partner in the Walnut Creek office for Newmeyer & Dillion, LLP, representing homebuilders, property owners, and business clients on a broad range of legal matters, including risk management, insurance matters, wrap consultation and documentation, efforts to counter solicitation of homeowners, subcontract documentation, as well as complex litigation matters. Alan can be reached at alan.packer@ndlf.com.
Graham Mills is a partner in the Walnut Creek offce of Newmeyer & Dillion, LLP, representing clients in the area of complex insurance law with an emphasis on insurance recovery, construction litigation, real estate litigation, and business litigation. He regularly examines and analyzes a wide variety of insurance policies. Graham can be reached at graham.mills@ndlf.com.
ABOUT NEWMEYER & DILLION LLP
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review’s AV Preeminent® highest rating.
For additional information, call 949.854.7000 or visit www.ndlf.com.
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CGL Coverage for Liquidated Damages and the Contractual Liability Exclusion
October 09, 2023 —
Stu Richeson - The Dispute ResolverLiquidated delay damages are common in construction contracts and are generally imposed when a contractor fails to achieve substantial completion within the time required by the contract. While contracts like the AIA A201-2017 have provisions for extending the time to achieve substantial completion when delays are caused by circumstances beyond the contractor’s control, delays can result from factors other than improper management or planning and the like, for which the owner is not required to give the contractor additional time. Courts are split on whether there is ever coverage under a CGL policy for contractually agreed upon liquidated delay damages.
Liquidated delay damages are often excluded under the contractual liability exclusion of most CGL policies. The contractual liability exclusion excludes coverage for “liability for which the Insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement.” Courts often find the contractual liability exclusion in a CGL policy precludes coverage for liquidated delay damages, because such damages are contractual in nature and are triggered by the failure to bring the contract to substantial completion by a fixed deadline, regardless of the cause of the delay. However, some courts will look to the cause of the delay and find that there is coverage under a CGL policy for liquidated delay damages that are the result of property damage caused by an accident or occurrence.
In Clark Const. Grp., Inc. v. Eagle Amalgamated Serv., Inc., 01-2478-DV, 2005 WL 2092998, at *1 (W.D. Tenn. Aug. 24, 2005) a general contractor entered a contract for the renovation of the convention center in Memphis. Part of the project included the demolition of a structure attached to the convention center. The demolition work was improperly performed by a subcontractor and resulted in damage to the convention center.
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com
Vinci Will Build $580M Calgary Project To Avoid Epic Flood Repeat
June 20, 2022 —
Scott Van Voorhis - Engineering News-RecordVinci Construction has begun work on a giant flood control project in Alberta designed to prevent a repeat of one of the most devastating natural disasters in Canadian history.
Reprinted courtesy of
Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
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Competition to Design Washington D.C.’s 11th Street Bridge Park
May 07, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Architect Magazine, eighty landscape architecture and architecture firms (forty teams) submitted proposals to design the $25-million Washington D.C. 11th Street Bridge Park project. A jury has shortlisted six design teams: “Wallace Roberts & Todd (WRT)/Next Architects, Piet Oudolf with Glenn LaRue Smith/PUSH Studio/WXY Architecture + Urban Design, OLIN/OMA, Workshop: Ken Smith Landscape/Davis Brody Bond, Stoss Landscape Urbanism/Höweler + Yoon Architecture, and Balmori Associates/Cooper, Robertson & Partners.”
The “nonprofit Building Bridges Across the River at THEARC (Town Hall Education Arts Recreation Campus) and the District's Office of Planning” launched the competition in March of this year. Architect Magazine stated that “the goal of” the project is to unify “what some call a ‘long-divided city,’ by connecting Capitol Hill and Anacostia, the neighborhoods on either side of the river.”
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Developer’s Failure to Plead Amount of Damages in Cross-Complaint Fatal to Direct Action Against Subcontractor’s Insurers Based on Default Judgment
January 21, 2019 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLPIn Yu v. Liberty Surplus Ins. Corp. (No. G054522, filed 12/11/18), a California appeals court held that a developer’s failure to allege the amounts of damages sought in its cross-complaint rendered default judgments against a subcontractor void and, therefore, unenforceable against the subcontractor’s insurers in a direct action under Insurance Code section 11580(b)(2).
Yu, the owner, hired ATMI to develop a hotel. ATMI subcontracted with Fitch to perform stucco and paint work. Yu sued ATMI for construction defects and the developer cross-complained against its subcontractors, including Fitch, for breach of contract; warranty; indemnity, etc. Yu’s operative complaint prayed for damages “in an amount not less than $10,000,000, according to proof.” ATMI’s cross-complaint stated that it incorporated the allegations of Yu’s complaint “for identification and informational purposes only,” but “does not admit the truth of any allegations contained therein.” The cross-complaint also prayed for damages with respect to the various causes of action “in an amount according to proof.”
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Wearable Ways to Work in Extreme Heat
July 15, 2024 —
Clare Epstein - Construction ExecutiveEarth experienced its hottest months yet in summer 2023, and
NASA scientists are expecting 2024 to be even hotter. Rising temperatures and high humidity aren’t just uncomfortable for those outside during the summer months: They can cause serious health consequences, including death. While employers are working to find ways to combat the heat, the extreme variability in weather conditions continues to pose threats to employees.
Recently, company leaders have turned to new methods and technologies to help their teams stay safe while working both indoors and outdoors. A balance of methods and technology is necessary to keep everyone safe while they work. As summer approaches, is important to remember that the time to review and update current heat-stress safety plans is in the spring—or better yet, year-round—in order to prioritize employee safety and determine both proactive and reactive measures needed to withstand the hottest months of the year.
TRIED AND TRUE
While we are all navigating new ways of working safely in extreme temperatures, the tried-and-true measures are still extremely useful in preventing heat stress among employees. Employers can support their employees working outdoors by ensuring there are proper amenities available at all times, including shady areas, a water source and electrolyte drinks.
Reprinted courtesy of
Clare Epstein, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Drywall Originator Hopes to Sell in Asia
October 22, 2013 —
CDJ STAFFWith all the talk of problems with drywall coming from China, one company wants to send drywall in the other direction. USG introduced its “Adamant Panel Board” (later Sheetrock) in 1917. But while USG has been a leader in the drywall market in North America, only about 20% of its sales are outside North America.
USG is partnering with Boral Ltd., an Australian building materials manufacturer. Earlier this year, USG sold manufacturing and distribution of certain products to the German company Knauf Verwaltungsgesellschaft. Knauf has sold drywall in the United States that was manufactured in China and found to exit corrosive fumes.
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