Is There a Conflict of Interest When a CD Defense Attorney Becomes Coverage Counsel Post-Litigation?
September 01, 2011 —
Chad Johnson of Higgins, Hopkins, McLain & Roswell, LLCIn Weitz Co., LLC v. Ohio Cas. Ins. Co., the U.S. District Court for the District of Colorado was asked to rule on a motion to disqualify counsel in an insurance coverage action. 11-CV-00694-REB-BNB, 2011 WL 2535040 (D. Colo. June 27, 2011). Motions to disqualify counsel are viewed with suspicion, as courts “must guard against the possibility that disqualification is sought to ‘secure a tactical advantage in the proceedings.’” Id. at *2 (citing Religious Technology Center v. F.A.C.T. Net, Inc., 945 F. Supp. 1470, 1473 (D. Colo. 1996).
Weitz Company, LLC (“Weitz”) is a general contractor and defendant in an underlying construction defect suit which had concluded before the action bringing rise to this order. In the underlying action, Weitz made third-party claims against subcontractors, including NPW Contracting (“NPW”). Weitz was listed as an additional insured under NPW’s policies with both Ohio Casualty Insurance Company and Mountain States Mutual Casualty Company (collectively “the Carriers”). The Carriers accepted Weitz’s tender of defense under a reservation of rights. However, neither insurance carrier actually contributed to Weitz’s defense costs in the underlying action. At the conclusion of the construction defect action, the parties unsuccessfully attempted to apportion the attorney’s fees and costs. Eventually, Weitz brought suit against the recalcitrant carriers. The Lottner firm, which had previously represented Weitz in the underlying construction defect action, continued to represent Weitz in this coverage action.
Read the full story…
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. Johnson can be contacted at johnson@hhmrlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
#3 CDJ Topic: Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFMichael R. Vellado and
Nicole R. Kardassakis of
Lewis Brisbois Bisgaard & Smith LLP analyzed the appeals case that “reversed the trial court’s entry of summary judgment in favor of ProBuilders Specialty Insurance Company (“ProBuilders”) and held that the ‘other insurance’ clause in the ProBuilders policy did not relieve it of its duty to participate in the defense of its insured, Pacific Trades Construction & Development, Inc. ('Pacific Trades')."
Read the full story...
Another discussion of the ProBuilders appeal ruling occurred on the
California Construction Law Blog, written by
Yas Omidi of
Wendel Rosen Black & Dean LLP. Omidi explained the appeal’s court decision: “In reversing the trial court’s decision, the appellate court characterized ProBuilder’s ‘other insurance’ clause as an ‘escape clause’—i.e., a clause that attempts to have coverage, paid for with the insured’s premiums, evaporate in the presence of other insurance.” Furthermore, she noted that “California public policy disfavors such clauses.”
Read the full story...
Read the court decisionRead the full story...Reprinted courtesy of
Injury to Employees Endorsement Eliminates Coverage for Insured Employer
February 01, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted summary judgment to the insurer based upon an endorsement which barred coverage for injuries to employees. Northfield Ins. Co. v. Z&J Mgt. LLC, 2020 N.Y. Misc. LEXIS 10801 (N.Y. Sup. Ct. Dec. 18, 2020).
Ravi Sooklal sued his employer, Z&J Management LLC (Z&J), for injuries at the job site. Northfield, who had issued a CGL policy to Z&L, denied coverage based upon two endorsements. The first was titled "Injury to Employees of Insureds" and the second was "Employers' Liability." Northfield sued for a declaratory judgment and now moved for summary judgment.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Hunton Insurance Lawyer, Adriana Perez, Selected to the National Association of Women Lawyers’ 2023 Rising List
March 27, 2023 —
Hunton Insurance Recovery BlogCongratulations to
Adriana Perez on her selection to the
National Association of Women Lawyers’ (NAWL) 2023 Rising List. Adriana is a member of Hunton Andrews Kurth’s national Insurance Recovery practice and is based in the Firm’s Miami, Florida office.
Hunton Insurance Recovery Partner, Michael Levine, commented on the enormous success the team has had in recent years, with recognitions like Adriana’s being emblematic of the team’s high caliber practice and visibility. Team Head, Syed Ahmad, added that the recognition is a tribute to Adriana’s growth as a young lawyer and her trajectory to become an industry leader.
Read the court decisionRead the full story...Reprinted courtesy of
Hunton Andrews Kurth LLP
Recent Bribery and Anti-Corruption Enforcement Trends in Global Construction Industry
August 26, 2019 —
Ralph A. Finizio & Anthony Finizio - ConsensusDocsBribery and corruption have long plagued the construction industry, particularly in the developing world and emerging markets. Large contracts often trickle down through layers of subcontractors, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions, where large corporations may be wholly or partially state-owned enterprises and public officials may expect payment in exchange for state-issued licenses or government contracts.
Recent enforcement trends indicate that both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are increasingly targeting the construction industry for anti-bribery and corruption actions under the Foreign Corrupt Practices Act (FCPA). Several former DOJ officials also recently commented that the construction industry has become a focus of anti-corruption enforcement efforts.
The FCPA is a formidable tool for regulators, making it unlawful to influence a foreign government official with any type of payment or personal reward. While certain safe harbors apply — including de minimis payments made to expedite routine governmental action or the payment being lawful in the foreign jurisdiction — these exceptions are construed narrowly and can be difficult to apply in practice.
Reprinted courtesy of
Ralph A. Finizio, Pepper Hamilton LLP and
Anthony Finizio, Pepper Hamilton LLP
Mr. Finizio may be contacted at finizior@pepperlaw.com
Mr. Finizio may be contacted at finizioa@pepperlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
No Bad Faith in Insurer's Denial of Collapse Claim
July 15, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Tenth Circuit affirmed the district court's grant of summary judgment to the insurer on the insured's claims for collapse and bad faith. Christopher M. Wolpert Saddletree Holding, LLC v. Evanston Ins. Co., 2024 U.S. App. LEXIS 10377 (10th Cir. April 30, 2024).
On May 7, 2019, Saddletree filed a claim with Evanston for damages sustained to its building which was used as a community events center. After a winter of heavy snowfall, Saddletree discovered that the building's steel support columns had buckled two or more inches and the roof had deflected downward approximately six inches.
Evanston retained an engineer to inspect the building. The engineer determined that the damage was the result of the building's inadequate "design and/or construction." Evanston disclaimed coverage under the policy's exclusion for damage caused by "hidden or latent defects" or "any quality in property that causes it to damage or destroy itself."
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida Appellate Court Holds Four-Year Statute of Limitations Applicable Irrespective of Contractor Licensure
June 22, 2016 —
Clay Whittaker – Florida Construction Law UpdateIn Brock v. Garner Window & Door Sales, Inc.,[1] Florida’s Fifth District Court of Appeal rejected a novel attempt to circumvent Florida’s well-established four-year statute of limitations for all actions founded on the construction of an improvement to real property. Plaintiff filed a lawsuit alleging breach of contract as a result of water intrusion damage following the installation of windows.[2] It was undisputed that Plaintiff commenced the litigation more than four years following the discovery of the allegedly latent defect in the window installation.[3] Plaintiff’s counsel argued that the window contractor could not rely on the four-year statute of limitations because the window subcontractor was not a licensed contractor and, therefore, the five-year statute of limitations for actions founded on written contracts should apply.
Read the court decisionRead the full story...Reprinted courtesy of
Clay Whittaker, Cole, Scott, & Kissane, P.A.Mr. Whittaker may be contacted at
clay.whittaker@csklegal.com
Insurer’s Optional Appeals Process Does Not Toll Statute of Limitations Following Unequivocal Written Denial
September 22, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Vishva Dev, M.D., Inc. v. Blue Shield of Cal. (No. B270094, filed 8/31/16), a California appeals court confirmed that the unequivocal denial of a claim, in whole or in part, commences the running of the statute of limitations for suit on the claim, notwithstanding the insurer’s offer to reconsider on new or additional evidence.
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
Read the court decisionRead the full story...Reprinted courtesy of