Maryland Finally set to Diagnose an Allocation Method for Progressive Injuries
February 18, 2020 —
William S. Bennett - Saxe Doernberger & Vita, P.C.Maryland’s highest court recently heard arguments regarding the proper method of allocation of the covered damages from a slowly progressing asbestos injury amongst insurance policies in place over a period of years. Rossello v. Zurich American Insurance Company, Case No. 2436 (Md. 2019). The court may also be forced to determine what the proper trigger of coverage is for latent bodily injury claims, although the plaintiff has not framed the issue in that manner.
In Rossello, the plaintiff, Patrick Rossello, worked for a period of years for the now-defunct Lloyd E. Mitchell, Inc. (“Mitchell”), a construction company operating until 1976. In 1974 he was exposed to and inhaled asbestos fibers. He was ultimately diagnosed in 2013 with malignant mesothelioma as a result of that exposure. Rossello obtained a judgment for approximately $2,700,000 against Mitchell and secured the right to pursue its insurance. As relevant to this dispute, Mitchell carried liability insurance policies, which provide coverage for asbestos related claims, from 1974 to 1977.
Rossello seeks to hold Zurich, as successor to Maryland Casualty Company, accountable for the full value of his award, based on the 1974 policy. Although this contention actually implicates two separate issues, plaintiff’s counsel passed over the initial trigger of coverage issue and focused instead on the issue of allocation of coverage.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
New-Home Sales in U.S. Unexpectedly Fall to Four-Month Low
January 07, 2015 —
Victoria Stilwell – BloombergPurchases of new U.S. homes unexpectedly declined in November to a four-month low, underscoring a lack of momentum this year in residential real estate.
Sales dropped 1.6 percent to a 438,000 annualized pace last month following a 445,000 rate in October that was weaker than previously estimated, Commerce Department figures showed today in Washington. The median estimate of 73 economists surveyed by Bloomberg called for a 460,000 pace in November.
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Victoria Stilwell, BloombergMs. Stilwell may be contacted at
vstilwell1@bloomberg.net
Differing Site Conditions: What to Expect from the Court When You Encounter the Unexpected
September 05, 2022 —
Margarita Kutsin - Ahlers Cressman & Sleight[
1]Seattle Tunnel Partners (“STP”), a joint venture of Dragados USA and Tutor Perini, entered into a $1.4 billion contract with the Washington State Department of Transportation (“WSDOT”) to replace the Highway 99 viaduct. In December 2013, a tunnel boring machine (“TBM”) bearing the moniker “Bertha,” then the largest TBM ever built, measuring 425 feet long and 57 feet in diameter, struck an underground pipe. Shortly after the impact, Bertha overheated and eventually could no longer make forward progress. A massive repair effort ensued causing a 2.5-year delay in reaching substantial completion.
WSDOT sued STP for the delay, seeking liquidated damages of $57 million. In response, STP argued its delay was excusable because it was caused by Bertha’s impact with the pipe, and the steel well casing was a Differing Site Condition (DSC) undisclosed in the contract documents. STP asserted counterclaims against WSDOT, alleging breach of contract and seeking $300 million in damages. Ultimately, a jury found that the steel well casing on the pipe was not a DSC, foreclosing STP’s excusable delay defense and counterclaims, and resulting in a $57 million verdict, plus interest, in favor of WSDOT.
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Margarita Kutsin, Ahlers Cressman & SleightMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
CGL Coverage Dispute Regarding the (J)(6) And (J)(7) Property Damage Exclusions
April 18, 2023 —
David Adelstein - Florida Construction Legal UpdatesA new insurance coverage opinion dealing with a commercial general liability’s (CGL) duty to defend involved exclusions commonly known as the (j)(6) and (j)(7) property damage exclusions (and in certain policies known as the (j)(5) and (j)(6) exclusions). These are the exclusions that apply during ongoing operations. Exclusion (l), or the “your work” exclusion, applies post-completion, i.e., it is an exclusion for “property damage” to “your work” included in the “products-completed operations hazard.”
Exclusions (j)(6) and (j)(7) in the policy at-issue exclude coverage for property damage to:
(j)(6) That particular part of real property on which any insured or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations;
(j)(7) That particular part of any property that must be restored, repaired or replaced because “your work” was incorrectly performed on it.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Sinking S.F. Tower Prompts More Lawsuits
January 19, 2017 —
JT Long - Engineering News-RecordHomeowners on Jan. 6 added another lawsuit to the list pending against Millennium Partners, developer of the 645-ft-tall Millennium Tower, located in San Francisco’s South-of-Market district. The suit alleges that, as early as 2009, the developers knew the $350-million condo building was sinking faster than expected.
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JT Long, ENRENR may be contacted at
ENR.com@bnpmedia.com
California Supreme Court Rejects Third Exception to Privette Doctrine
July 03, 2022 —
Lewis BrisboisWalnut Creek, Calif. (May 25, 2022) - In Gonzalez v. Mathis (August 19, 2021) 12 Cal. 5th 29, the California Supreme Court considered whether to create a third exception to the Privette Doctrine specific to known hazards on a worksite, when a contractor cannot remedy the hazard by taking reasonable safety precautions to protect against it.
Privette Background
Under the Privette Doctrine, the hirer of an independent contractor generally cannot be liable for injuries sustained by the independent contractor or its employees while on the job. This is due to the “strong presumption” that the hirer delegates all responsibility for workplace safety to the independent contractor. See Privette v. Superior Court (1993) 5 Cal. 4th 689. Since the Privette ruling in 1993, the California Supreme Court has identified two circumstances in which the presumption may be overcome. First, the hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury. Hooker v. Dept. of Transportation (2002) 27 Cal. 4th 198, 213. Second, a landowner who hires an independent contractor may be liable if the landowner knew, or should have known, of a concealed hazard to the property that the contractor did not know of and could not have reasonably discovered, and the landowner failed to warn the contractor of the hazard. Kinsman v. Unocal Corp. (2005) 37 Cal. 4th 659, 664. Here, in the Gonzalez case, the court considered whether a landowner could be liable for known hazards on the property.
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Lewis Brisbois
Heat Stress Deaths Show Europe Isn’t Ready for Climate Change
August 07, 2023 —
Olivia Rudgard - BloombergMore than 60,000 people died as a result of record-breaking temperatures in Europe last summer, a study has found, raising concerns about multiple countries’ lack of preparation for extreme heat fueled by climate change.
Between May 30 and Sept. 4 of last year, there were 61,672 deaths caused by hot weather across 35 European countries, according to the study by researchers at the Barcelona Institute for Global Health and the French National Institute of Health,
published in the journal Nature Medicine. Last year’s was the warmest summer ever recorded on the continent, breaking a record set just one year earlier. Temperatures were more than 2C above the recent average for countries that included France, Switzerland and Spain.
Last year’s extreme-heat casualties echo an earlier hot summer in 2003, when 70,000 excess deaths were recorded across Europe. The loss of life led several countries to introduce early-warning systems for heat waves, as well as more planning around health care services. But the large number of deaths in 2022 shows the limitations of these measures, the study’s authors noted.
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Olivia Rudgard, Bloomberg
Consultant’s Corner: Why Should Construction Business Owners Care about Cyber Liability Insurance?
July 13, 2017 —
David Adelstein - Florida Construction Legal UpdatesRecently, I wrote an article on the importance of cyber liability insurance for design professionals. The reality, however, is that this is important insurance for all professionals in today’s day and age.
A modern, online insurance broker called
Embroker was kind enough to submit a guest post on cyber liability insurance. Check it out!!!
According to the Cybersecurity Ventures Report, the cost of cybercrime could reach $6 trillion by 2021. That same report predicts that cybercrime will expand into new sectors, such as the construction industry. Assuming your construction business has moved beyond pencil and paper drawings, paper invoices and mailed checks, this prediction is cause for concern. In fact, it’s already come true, as the 2013 Target cyber breach which led to a $39 million court settlement came through a HVAC contractor, a development which underscores the need for Cyber Liability insurance.
Considering the numerous issues facing construction business owners — from budget and time constraints to production methods to fire hazards — Cyber Liability insurance may seem like a low priority. But f you expect to stay in business and be profitable, that’s simply not the case.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com