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DIRECTORY AND CAPABILITIES

Saudi Arabia Awards Contracts for Megacity Neom’s Worker Housing

September 16, 2019 — Vivian Nereim - Bloomberg
Saudi Arabia has awarded to two Saudi firms contracts to build worker housing for its futuristic mega-city called Neom, as plans for the $500 billion project move forward despite skepticism from investors. Tamimi Group and Saudi Arabian Trading & Construction Co. won contracts to finance, build and operate three residential areas with capacity to house 30,000 people, Neom said in a statement on Sunday. The areas will be part of a so-called “Construction Village,” which Neom later plans to expand to accommodate more than 100,000 residents, it said. Neom did not say how much the contracts were worth. Read the court decision
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Reprinted courtesy of Vivian Nereim, Bloomberg

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Scope of Alaska’s Dump Lien Statute Substantially Reduced For Natural Gas Contractors

March 16, 2020 — Trevor Lane - Ahlers Cressman & Sleight PLLC
In All American Oilfield, LLC v. Cook Inlet Energy, LLC,[1] the Supreme Court of Alaska clarified and substantially reduced a natural gas contractor’s ability to secure a preferred lien for its contribution to a natural gas well. Alaska’s dump lien statute (AS § 34.35.140) authorizes a laborer to claim a lien for the amount owed for their labor in the production of a “dump or mass” of “extracted, hoisted and raised” matter from a mine. While Alaska’s dump lien statute is one of three Alaskan statutes allowing laborers to attach liens to mines, mining equipment or minerals,[2] the dump lien statute is unique because it is prior and preferred over other liens, increasing the laborer’s chance of being paid in a bankruptcy proceeding. Attaching a lien to a “dump or mass” of hard-rock minerals piled outside a mine or oil stored in a tank is relatively straightforward. However, natural gas is typically left in its natural reservoir until removed by a pipeline that carries the gas to a location far from the mine. Natural gas is not extracted and stored in a “dump or mass” like other minerals, and until August 2019, controversy existed over how—or if—the dump lien statute could be used by natural gas contractors. Read the court decision
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Reprinted courtesy of Trevor Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at trevor.lane@acslawyers.com

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Holding the Bag for Pre-Tender Defense Costs

February 02, 2017 — John J. Kozak, Esq. - Florida Construction Law News
For a variety of reasons, additional insureds (and even named insureds) under commercial general liability policies will sometimes wait months, and even years, to tender the defense of a claim or lawsuit, incurring significant legal fees in the interim. When the claim finally is tendered, a dispute often arises over who should pay the pre-tender defense costs. Surprisingly, there is very little Florida legal authority specifically dealing with this issue. However, the recent federal 11th Circuit Court of Appeals case of EmbroidMe.com, Inc. v. Travelers Property Casualty Co. of America, No. 14-10616, 2017 U.S. App. LEXIS 368 (11th Cir. Jan. 9, 2017), applying Florida law, addresses the issue head-on and provides CGL carriers with a large hammer in refusing to pay pre-tender fees. Read the court decision
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Reprinted courtesy of John J. Kozak, Esq., Cole, Scott & Kissane, P.A.
Mr. Kozak may be contacted at john.kozak@csklegal.com

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Dispute Over Exhaustion of Primary Policy

May 20, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In a dispute between the excess and primary carriers, the Fifth Circuit determined the primary policy was exhausted, triggering coverage under the excess policy. Amerisure Mut. Ins. Co. v. Arch Spec. Ins. Co., 2015 U.S. App. LEXIS 6627 (5th Cir. April 21, 2015). Amerisure issued a CGL policy to Admiral Glass & Mirror Co. The policy provided excess over any coverage under a controlled insurance program policy. Arch issued an Owner Controlled Insurance Program (OCIP) policy to Endeavor Highrise, LP and to its contrators and subcontractors for bodily injury and property damage arising out of the construction of the Endeavor Highrise. Admiral was a subcontractor insured under the OCIP. The OCIP had combined bodily injury and property damage limits of $2,000,000 per occurrence, a general aggregate limit of $2,000,000 and a products-completed operations aggregate limit of $2,000,000. The OCIP contained a Supplementary Payments provision which provided that Arch would pay "[a]ll expenses we incur" in connection with any covered claim, and that "[t]hese payments will not reduce the limits of insurance." Endorsement 16, however, expressly deleted and replaced this statement with: "[supplementary payments] will reduce the limits of insurance." The OCIP also provided that Arch's duty to defend ended "when we have used up the applicable limit of insurance in the payment of judgments or settlements." 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

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Singer Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final Notice

September 02, 2024 — Katarina Hoije & Fred Ojambo - Bloomberg
A single arched concrete block juts out of a field in Senegal where R&B singer Akon first laid the foundation stone for his $6 billion metropolis four years ago. The West African nation granted the artist 136 acres of land on its Atlantic Coast in 2020 to build his Akon City — envisioned as a real-life Wakanda, the fictional country from Marvel Studios’ Black Panther films. Complete with condominiums, amusement parks and a seaside resort in gravity-defying skyscrapers rising above the rural landscape, Akon City would run on solar power and his Akoin cryptocurrency, the American-Senegalese singer said during a flashy presentation in Senegal’s capital, Dakar. Today, goats and cows graze the deserted pasture 60 miles south of Dakar, and authorities are growing increasingly impatient. Reprinted courtesy of Katarina Hoije, Bloomberg and Fred Ojambo, Bloomberg Read the court decision
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Trump Tower Is Now One of NYC’s Least-Desirable Luxury Buildings

July 08, 2019 — Shahien Nasiripour - Bloomberg
Trump Tower, once the crown jewel in Donald Trump’s property empire, now ranks as one of the least desirable luxury properties in Manhattan. The 36-year-old building has been turned into a fortress since Trump won the presidency, ringed with concrete barriers and the two main entrances partially blocked off. It hasn’t been substantially updated in years. And Trump’s name has been a huge turnoff in liberal New York City. For anyone who owns a unit in the tower, the past two years have been brutal. Most condo sales have led to a loss after adjusting for inflation, property records show. Several sold at more than a 20% loss. By contrast, across Manhattan, just 0.23% of homes over the past two years sold at a loss, according to real-estate data provider PropertyShark, although the firm doesn’t adjust for inflation. Read the court decision
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Reprinted courtesy of Shahien Nasiripour, Bloomberg

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Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.

April 20, 2011 — Beverley BevenFlorez CDJ STAFF

After reviewing the decision in Abraham v. T. Henry Construction, et al., the Oregon Supreme Court affirmed that a tort claim for property damage arising from construction defects may exist even when the homeowner and the builder are in a contractual relationship.



When the case was initially filed, the plaintiffs alleged breach of contract and negligence. The defendants moved for summary judgment arguing that one, the claim was barred by the six-year statute of limitations and two, no special relationship (such as one between a doctor and patient) existed. The court agreed with the defendants. However, the Court of Appeals while affirming the trial court’s decision on breach of contract reversed the decision on negligence. The Court of Appeals stated that an administrative or statute rule could establish a standard of care independent from the contract.



The Oregon Supreme Court gave an example of cases where a tort claim could exist when a contract is present: “If an individual and a contractor enter into a contract to build a house, which provides that the contractor will install only copper pipe, but the contractor installs PVC pipe instead (assuming both kinds of pipe comply with the building code and the use of either would be consistent with the standard of care expected of contractors), that failure would be a breach of contract only. […] If the failure to install the copper pipe caused a reduction in the value of the house, the plaintiff would be able to recover that amount in an action for breach of contract. […] On the other hand, if the contractor installed the PVC pipe in a defective manner and those pipes therefore leaked, causing property damage to the house, the homeowner would have claims in both contract and tort. […] In those circumstances, the obligation to install copper instead of PVC pipe is purely contractual; the manner of installing the pipe, however, implicates both contract and tort because of the foreseeable risk of property damage that can result from improperly installed pipes.”



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The Hunton Policyholder’s Guide to Artificial Intelligence: SEC’s Recent AI-Washing Claims Present D&O Risks, Potential Coverage Challenges

July 08, 2024 — Geoffrey B. Fehling, Michael S. Levine & Alex D. Pappas - Hunton Insurance Recovery Blog
We have previewed in prior posts the ways artificial intelligence is rapidly changing the way business operate, including the many ways AI has influenced the insurance market, creating both opportunities and risks for policyholders. We later highlighted, based on a recent securities lawsuit, how corporate management may be at risk for the alleged use or misuse of AI and how companies should evaluate their directors and officers (D&O) and management liability policies to ensure that they are prepared to respond to and mitigate AI-driven risks, including claims alleging that a company or its officers and directors made misrepresentations about AI. That potential risk now has regulatory teeth, as the US Securities and Exchange Commission recently charged the founder of an AI hiring startup with fraud based on claims about using AI to help clients find diverse and underrepresented candidates to fulfill diversity, equity, and inclusion hiring goals. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Alex D. Pappas, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Pappas may be contacted at apappas@HuntonAK.com Read the court decision
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