Mortenson Subcontractor Fires Worker Over Meta Data Center Noose
April 19, 2022 —
James Leggate - Engineering News-RecordA worker on a data center project for Facebook parent company Meta in Utah was fired after admitting to tying a noose at the worksite where racist graffiti had also been found months earlier.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim
October 14, 2019 —
Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis.
The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment.
Reprinted courtesy of
Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and
Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com
Ms. Barrese may be contacted at blb@sdvlaw.com
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Colorado Nearly Triples Damages Caps for Cases Filed in 2025, Allows Siblings to File Wrongful Death Claims
July 22, 2024 —
Amy Johnson - Lewis BrisboisDenver, Colo. (June 13, 2024) - On June 3, 2024, Colorado Governor Jared Polis signed HB24-1472 to increase the damages caps for personal injury and wrongful death claims. The law nearly triples the amounts available to plaintiffs, which will continue to increase for inflationary adjustments beginning in 2028 and every two years thereafter. These new damages caps affect not only claims that accrue in 2025 and beyond, but they also change the caps for any civil cases filed on or after January 1, 2025. This law was enacted as a compromise to a ballot measure that would have removed any cap on damages. The new caps are as follows:
- The cap on noneconomic damages for personal injuries will be $1.5 million.
- The cap on noneconomic damages for wrongful death will be $2.125 million.
Plaintiffs are likely to delay filing new actions through the rest of 2024 as long as they are not up against a statute of limitations deadline.
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Amy Johnson, Lewis BrisboisMs. Johnson may be contacted at
Amy.Johnson@lewisbrisbois.com
Drop in Civil Trials May Cause Problems for Construction Defect Cases
August 27, 2013 —
CDJ STAFFOver the last fifty years, the number of lawsuits that have been settled by trial have dropped sharply, according to Kenneth Childs, writing in the Idaho Business Review. Childs notes that in 1962, 11.5% of federal civil cases were resolved at trial, but in 2002, only 1.8 % percent went to trial. He makes the supposition that, due to their complexity, construction defect trials are even less likely to be resolved at trial.
Instead, they are being resolved in mandatory arbitration. Views on arbitration have changed over the years and the courts have gone from what he describes as “somewhat hostile to it” to embracing, encouraging, and even mandating it.
Childs notes there are some problems to this climate of arbitration. He notes that arbitrators can “operate by their own rules and according to their own standards.” The decisions made by arbitrators “are not subject to appellate review,” which allows arbitrators “to ignore the law entirely.”
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So a Lawsuit Is on the Horizon…
August 10, 2021 —
Sean Donoghue - Construction ExecutiveAs certain as death and taxes, documents will need to be exchanged in the event of a lawsuit. Here is what to expect and a few tips for reducing costs and protecting the case.
What Needs to Be Produced?
Discovery is broad, but proportional to the needs (i.e., usually the dollar value) of the case. Cost reports, bid back up and scheduling information are often at the heart of damages issues in construction disputes. Thus, while it will depend on the nature of the dispute, these items will generally need to be produced.
It is no secret that electronically stored information (ESI) can be a big part of discovery in litigation, particularly in a document intensive industry like construction. In addition to electronically stored project files, expect that the inboxes of employees who are close to the dispute will need to be searched. How many will depend on the size of the dispute and the number of players involved. Hard-drives and text messages of those employees may also be discoverable.
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Sean Donoghue, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Donoghue may be contacted at
sdonoghue@eckertseamans.com
Insurer's Bad Faith is Actionable Tort for Purposes of Choice of Law Analysis
January 08, 2024 —
Janeen M. Thomas - Saxe Doernberger & Vita, P.C.When an insurer handles a claim in violation of its duty to act in good faith, policyholders are often eager to sue the insurer for bad faith, seeking extra contractual damages. Before filing suit, however, it is critical that policyholders consider what state’s law applies to the bad faith claim.
In the recent case of Scott Fetzer Co. v. Am. Home Assurance Co., Inc.1, the Ohio Supreme Court held that Restatement (Second), Conflict of Laws, § 145 (“Section 145"), governed the choice of law dispute, which meant that the insured would be able to obtain discovery of Travelers’ claims-handling procedures, guidelines, internal documents, and communications relating to the claim.2 The insured, Scott Fetzer, argued that the materials were discoverable because documents evidencing an insurer’s bad faith are not protected by attorney-client privilege in Ohio. In response, Travelers argued that the laws of either Indiana (the place where the parties entered into the insurance contract), or Michigan (the location of the insured risk) governed the discovery dispute because Restatement (Second) § 193 (“Section 193”) governs the choice of law analysis for claims that “arise out of insurance contracts.”3 The laws of either Indiana or Michigan were more favorable for Travelers because Indiana does not allow discovery of materials covered by attorney-client privilege, and Michigan does not even recognize a cause of action for bad faith.
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Janeen M. Thomas, Saxe Doernberger & Vita, P.C.Mr. Thomas may be contacted at
JThomas@sdvlaw.com
Ohio Supreme Court Rules That Wrongful Death Claims Are Subject to the Four-Year Statute of Repose for Medical Claims
January 16, 2024 —
Lewis Brisbois NewsroomCleveland, Ohio (January 2, 2024) - In a landmark 4-3 ruling, the Supreme Court of Ohio ruled on December 28 that wrongful death claims are subject to the four-year statute of repose contained in O.R.C. 2305.113(C) (“Medical Claim Statute of Repose”). Everhart v. Coshocton County Memorial Hospital, Slip No. 2023-Ohio-4670. Statutes of repose create an absolute bar to filing a lawsuit. When applicable, they bar plaintiffs from filing claims outside a specified time frame. The Medical Claim Statute of Repose creates a four-year window for commencing medical claims, which begins to run from “the occurrence of the act or omission constituting the alleged basis of the medical…claim.” O.R.C. 2305.113(C)(1). Medical claims commenced after the four-year period are barred.
The primary question before the Court was whether a wrongful death claim, which is separate and distinct from a medical negligence claim, can qualify as a “medical claim” within the context of the Medical Claim Statute of Repose. The Court answered in the affirmative. A wrongful death claim can qualify as a medical claim if the wrongful death claim “…arises out the medical diagnosis, care, or treatment, of any person.” O.R.C. 2305.113(E)(3). According to the majority, a wrongful death claim can fall within the broad definition of “medical claim” and, if it does, is subject to the Medical Claim Statute of Repose.
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Lewis Brisbois
New Jersey Firm’s Fee Action Tossed for not Filing Substitution of Counsel
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFEven though their client had terminated their services by email, a “New Jersey appeals court has tossed out a firm’s fee action” finding that the firm had “remained counsel of record because it did not file a substitution of counsel until almost a year later,” the New Jersey Law Journal reported.
In Arturi, D’Argenio, Guagliardi & Meliti v. Sadej, Jesse and Carla Sadej had retained the firm, Arturi, D’Argenio, Guagliardi & Meliti, “to defend them in the underlying land use litigation brought in 2002 by the borough of Seaside Park, N.J.” The case had been dismissed, but was reinstated in 2009 by an appeals court.
At that time, Arturi D’Argenio told the Sadejs that they would need to sign a new retainer agreement in order to continue representation. On July 18, 2010, the Sadejs emailed the firm stating that they were “officially terminated,” according to the opinion as quoted by the New Jersey Law Journal.
The firm sued the Sadejs “for about $100,000 in fees it was allegedly owed from the Seaside Park case and other matters on behalf of Jesse Sadej.” However, a substitution of attorney wasn’t filed until months later.
The case went to the appeals court, which stated that the firm should have withdrawn immediately after receiving the email notification from their client: “Because it failed to do so, it remained counsel of record and therefore was precluded from initiating the collection action at that point,” the judges said, as quoted by the New Jersey Law Journal.
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