Insurer Could Not Rely on Extrinsic Evidence to Circumvent Its Duty to Defend
February 14, 2023 —
Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery BlogIn
First Mercury Insurance Co. v. First Florida Building Corp., et al., a federal district court ordered that an insurer had a duty to defend its insured against an underlying personal injury lawsuit. 2023 WL 23116, at *1 (M.D. Fla. Jan. 3, 2023). First Mercury is a cautionary tale about how insurers may try to circumvent their obligations by improperly considering extrinsic evidence when determining whether they have a duty to defend their insureds.
First Mercury is a coverage dispute over an underlying personal injury lawsuit that was filed against the insured, a construction company, for injuries the claimant allegedly sustained at a construction site. Id. The claimant alleged that he was at the construction site as an invitee who was “working with” the insured. Id. The insurer agreed to defend the insured against the personal injury lawsuit under a reservation of rights. Id. However, the insurer filed a coverage action seeking a declaration that coverage for the personal injury lawsuit was excluded under the policy. Id. Specifically, the insurer, on summary judgment, argued that the claimant was an employee of the insured who was injured in the course of his employment, thus falling within the employer’s liability and workers’ compensation exclusions in the policy. Id. Although the insurer acknowledged that the personal injury complaint against the insured triggered its duty to defend under the policy, the insurer argued that those exclusions relieved its duty to defend or indemnify the insured. Id.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Ten Firm Members Recognized as Super Lawyers or Rising Stars
July 13, 2017 —
Ceslie Blass - Ahlers & Cressman PLLCWhile we avoid using this blog as a platform for self-promotion, we recently received share-worthy distinctions, which both flatter and humble us. We invite you, our loyal readers, to celebrate in our success, which in great measure is due to you.
John P. Ahlers, one of the firm's founding partners, was ranked third overall across all practicing industries in Washington 2017 Super Lawyers and founding partner Paul R. Cressman, Jr. was ranked in the Top 100. The following other firm members were also recognized as Super Lawyers: Founding partner Scott R. Sleight, Bruce A. Cohen (Partner), Brett M. Hill (Partner), and Lawrence Glosser (Partner). In addition, Ryan W. Sternoff (Partner), James R. Lynch (Partner), Tymon Berger (Associate), and Lindsay (Taft) Watkins (Associate) were selected as Super Lawyers Rising Stars. Over half of the firm's lawyers received Super Lawyers distinction.
Super Lawyers selects attorneys using a patented multiphase selection process. Peer nominations and evaluations are combined with third party research. Each attorney candidate is evaluated on 12 indicators of peer recognition and professional achievement. Only five percent of the total lawyers in Washington State are selected for the honor of Super Lawyers and no more than 2.5 percent are selected for the honor of Super Lawyers Rising Stars.
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Ceslie Blass, Ahlers & Cressman PLLCMs. Blass may be contacted at
cblass@ac-lawyers.com
Review the Terms and Conditions of Purchase Orders- They Could be Important!
February 15, 2018 —
Christopher G. Hill – Construction Law MusingsThere are many moving parts on a commercial construction project. These range from site surveys to weather events to ordering materials. On most large construction projects, the prime contract and subcontracts are generally
drafted ahead of time and hopefully reviewed by both in house personnel and an
experienced construction attorney. However, there are situations, particularly where the contract may be one for service or provision of materials where individual purchase orders are issued as opposed to what would likely be looked at as a long form subcontract.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PC
FAA Plans Final Regulation on Commercial Drone Use by Mid-2016
June 17, 2015 —
Rachel Adams-Heard and Alan Levin – BloombergThe Federal Aviation Administration intends to issue final regulations for operating small commercial drones by the middle of 2016, a top administrator told a U.S. House committee Wednesday.
“The rule will be in place within the year,” FAA Deputy Administrator Michael Whitaker said at the House Oversight Committee hearing. He said, “hopefully before June 17, 2016.”
While the FAA has previously said it was seeking to complete the rule as swiftly as possible, Whitaker’s comments in answering lawmakers’ questions are the most specific yet about timing.
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Rachel Adams-Heard, Bloomberg and
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Cal/OSHA’s Toolbox Has Significantly Expanded: A Look At Senate Bill 606
December 13, 2021 —
Michael J. Studenka - Newmeyer DillionGovernor Gavin Newsom recently signed into law Senate Bill 606, set to take effect on January 1, 2022. With proponents of the bill citing the need to hold large employers accountable for COVID-related workplace hazards, SB 606 creates two new categories of employer violations. First, SB 606 creates a rebuttable presumption that if a type of violation is discovered at one particular worksite, Cal/OSHA can extrapolate that the violation is an “enterprise-wide” violation at all of the other company worksites. Additionally, SB 606 adds a new category of “egregious violations” to Cal/OSHA’s arsenal, adding a penalty multiplier for such violations. Finally, SB 606 increases Cal/OSHA’s investigative capabilities by authorizing Cal/OSHA to issue a subpoena to employers should they fail to “promptly provide” information requested during an investigation. As further explained below, the consequences of violating Cal/OSHA regulations has become significantly greater and more expensive, particularly for larger employers with multiple worksites.
ENTERPRISE-WIDE VIOLATIONS AND THE SEVERE REMEDIES THAT FOLLOW
Under SB 606, employers with more than one worksite will now face a rebuttable presumption that a violation at one location is actually “enterprise-wide” if either of the following are true:
- A written policy or procedure violates any Cal/OSHA standard, rule, order or regulation; OR
- Cal/OSHA finds evidence of a “pattern or practice” of the same violation being committed by the employer at one or more of its worksites.
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Michael J. Studenka, Newmeyer DillionMr. Studenka may be contacted at
michael.studenka@ndlf.com
A Few Things You Might Consider Doing Instead of Binging on Netflix
April 13, 2020 —
Garret Murai - California Construction Law BlogGovernments throughout the world have issued “shelter in place” orders requiring that residents stay at home except for “essential” purposes. As a result, in the United States, more than a third of Americans have been ordered to stay at home. This, in turn, has had a direct impact on construction projects which have slowed or have been temporarily shuttered altogether, and it will (not may) have an impact on the flow of project funds. So what can project owners and contractors do? We’ve got a few tips.
1. Read Your Contract, Paying Particular Attention to Force Majeure, No Damages for Delay and Notice Provisions
For the most part, with the exception of statutory rights and remedies which we will discuss below, your contract spells out your rights and remedies should the proverbial “S” hit the fan. It is, in other words, the rules you agreed to, and you should know what those rules provide. Three provisions you should look for, and if they’re in your contract, you should review carefully are: (1) Force majeure provisions; (2) No damages for delay provisions; and (3) notice provisions.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Keeping KeyArena's Landmark Lid Overhead at Climate Pledge Arena Redevelopment Is A 22,000-Ton Balancing Act
November 30, 2020 —
Nadine M. Post - Engineering News-RecordMost contractors would jump at the chance to have a roof overhead during a major rebuild. But for the team turning earthquake-prone Seattle’s 411,000-sq-ft KeyArena into the 932,000-sq-ft Climate Pledge Arena, the city-owned facility’s historic helmet has been a 44-million-lb design and construction headache.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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To Catch a Thief
March 06, 2023 —
Christopher Durso - Construction ExecutiveTony Rader calls it “peeling back the onion”—the slow, methodical process of uncovering the full extent of an embezzlement scam that eventually totaled more than $1 million. What National Roofing Partners (NRP) first discovered was bad enough. The Coppell, Texas–headquartered company, which oversees a nationwide network of nearly 250 commercial roofing contractors, learned in 2018 that a South Texas firm called Statewide Texas Roofing was billing clients for work on behalf of NRP and pocketing all the money. It turned out to be a scheme masterminded by NRP’s then-president, who created Statewide, staffed the company with his kids and used phony work orders to steal hundreds of thousands of dollars in client fees from NRP. He’d been president for six years and with the company since it was created in 2007. It was a huge betrayal—and still just the tip of the iceberg.
“Initially, we thought it was only half a million [dollars] or so,” says Tony Rader, NRP’s chief operating officer. “But I’ll never forget, [Chief Executive Officer] Steve [Little] and I were talking over a bourbon one night, and that’s when I told him, ‘I’ve seen this once before, and this is like an onion. You’ve only peeled off the outer layers. We’re going to be finding stuff for a year, and it’s just going to get bigger and bigger and bigger.’ He said, ‘You think?’ And I said, ‘Oh, I’m pretty sure.’” Rader was all too correct. Working with a third-party forensic accountant, NRP found that not only were its then-chief financial officer and several other employees involved in the scheme, but the president had also abused his corporate credit card, racking up personal charges going back to 2013—on luxury vacations, expensive dinners, clothes, jewelry, even his daughter’s destination wedding in Jamaica. The final tally on his scams: $1.4 million.
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Christopher Durso, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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