No Coverage for Alleged Misrepresentation Claim
January 23, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe court found there was no coverage for a misrepresentation claim against the insured sellers of a residence. Am. Family Mut. Ins. Co. v. Coyne, 2022 U.S. Dist. LEXIS 186417 (E.D. Mo. Oct. 12, 2022).
Aaron and Tobi Beckman purchased a home from Denise Coyne. The Bockmans alleged in the underlying suit that Coyne represented that the property had a "2-car garage." A disclosure statement signed by Coyne stated she had disclosed all conditions which might lower the value of the property or adversely affect the Bockman's decision to buy the property. After purchasing the property, the Bockmans learned that they could not fit their two vehicles in the attached garage. The Bockmans alleged that substantial remediation was necessary to expand the depth of the garage to fit two cars within it.
The underlying suit alleged that Coyne had was engaged in fraud, misrepresentation and concealment by omitting material facts in connection with the sale of the home. Coyne allegedly engaged in negligent misrepresentation by failing to inform the Bockmans of the depth of the attached garage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contractor Prevailing Against Subcontractor On Common Law Indemnity Claim
June 29, 2020 —
David Adelstein - Florida Construction Legal UpdatesCommon law indemnity is not an easy claim to prove as the one seeking common law indemnity MUST be without fault:
Indemnity is a right which inures to one who discharges a duty owed by him, but which, as between himself and another, should have been discharged by the other and is allowable only where the whole fault is in the one against whom indemnity is sought. It shifts the entire loss from one who, although without active negligence or fault, has been obligated to pay, because of some vicarious, constructive, derivative, or technical liability, to another who should bear the costs because it was the latter’s wrongdoing for which the former is held liable.
Brother’s Painting & Pressure Cleaning Corp. v. Curry-Dixon Construction, LLC, 45 Fla. L. Weekly D259b (Fla. 3d DCA 2020) quoting Houdaille Industries, Inc. v. Edwards, 374 So.2d 490, 492-93 (Fla. 1979).
Not only must the one seeking common law indemnity be without fault, but there also needs to be a special relationship between the parties (indemnitee and common law indemnitor) for common law indemnification to exist. Brother’s Painting & Pressure Cleaning Corp., supra (citation omitted). A special relationship has been found to exist between a general contractor and its subcontractors. Id. at n.2.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Georgia Court Reaffirms Construction Defect Decision
August 27, 2013 —
CDJ STAFFIn 2011, the Georgia Supreme Court ruled that construction defects could count as “occurrences” under a general liability policy. John Watkins, writing in Law360, notes that the ruling “has potentially broad implications for Georgia insureds.” He goes on to look at a later Georgia Supreme Court case, in which the court reaffirmed its decision in the 2011 Hathaway case.
In the 2013 case, Taylor Morrison Services Inc. v. HDI-Gerlins Ins., the court held that the property damage had to happen to something other than the work performed by the insured, and that a breaches of warranty without fraud claims may be covered. But Watkins notes that this points to “the continuing efforts of insurers to deny coverage for construction defects under CGL policies.”
This overruled some of the past decisions of the United States District Court for the Northern District of Georgia. Watkins noted that the Eleventh Circuit seemed to wonder about the scope of Hathaway, but with Taylor Morrison, “the Georgia Supreme Court provided a clearly stated response.”
Looking at the implications, he gives an example in which if a window installer work causes a window to leak and the water intrusion damages a floor, the floor, but not the window would be covered. But he cautions, “the result may turn on the policy language and the particular facts.” In any case, he assures us that “coverage disputes regarding construction defects are sure to continue.”
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“Other Insurance” and Indemnity Provisions Determine Which Insurer Must Cover
September 01, 2011 —
Tred R. Eyerly - Insurance Law HawaiiA policy’s “other insurance” clause and a contractual indemnity provision were at the root for determining which of two insurers had to cover for injuries at a construction site. Valley Forge Ins. Co. v. Zurich Am. Ins. Co., 2011 U.S.Dist. LEXIS 76061 (N.D. Calif. July 14, 2011).
Hathaway was the general contractor at a demolition and construction project. Hathaway was insured by Zurich. Reinhardt Roofing was the roofing subcontractor. Reinhardt was insured by Valley Forge under a policy which named Hathaway as an additional insured. The subcontract also required Reinhardt to indemnify Hathaway for acts or omissions arising from Reinhardt’s work unless Hathaway was solely negligent.
Four of Reinhardt’s workers were injured when a canopy roof on which they were working collapsed. At the time of the accident, Hathaway’s on-site supervisor was inspecting a gap in the canopy roof, but did not order Reinhardt’s workers to stop working.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Coverage Rejected Under Owned Property and Alienated Property Exclusions
June 06, 2011 —
Tred R. EyerlyThe insured’s request for a defense when sued in a construction defect action was denied under the owned property exclusion and the alienated property exclusion in1777 Lafayette Partners v. Golden Gate Ins. Co., 2011 U.S. Dist. LEXIS 48562 (N.D. Cal. April 29, 2011).
In 1999, Lafayette Partners purchased an abandoned walnut processing factory to convert into living and working units. The property was developed into a rental property from 2000-2001, and thereafter rented. In May 2003, Lafayette Partners entered into a sales agreement with Wolff Enterprises LLC. The sale closed in February 2005. Wolff then converted the rental units into condominiums.
In December 2007, the Walnut Factory Owners Association sued Wolff for construction defects. In Lafayette Partners was added to the suit in 2009. The suit alleged a variety of defective conditions, including the roofs, exteriors, windows, electrical , plumbing, and mechanical components and systems.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Australia Warns of Multi-Billion Dollar Climate Disaster Costs
October 09, 2023 —
Ben Westcott - BloombergAustralian Treasurer Jim Chalmers highlighted the soaring cost of disaster management in his nation ahead of a potentially disastrous wildfire season in the coming summer, fueled by El Nino.
Government funding for disaster recovery has blown out by 433% over the past three years, Chalmers said in excerpts of a speech to be delivered Tuesday in the northern city of Rockhampton. The costs stood at A$2.5 billion ($1.6 billion) in the year ended June 30.
“The pressure of a changing climate and more frequent natural disasters is constant, cascading, and cumulative,” Chalmers said.
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Ben Westcott, Bloomberg
North Carolina Weakened Its Building Codes in 2013
October 09, 2018 —
Ari Natter - BloombergFive years ago, encouraged by home builders and an anti-regulatory zeal, lawmakers in North Carolina joined other states in weakening building code requirements.
It’s a decision they may regret as Hurricane Florence takes aim at the Carolinas.
The Legislature in 2013 increased the amount of time between updates to its building code from three years to six. That means that updates that set new standards for elevating the floors in flood-prone homes aren’t in effect, according to the Federal Alliance for Safe Homes Inc., a non-profit disaster safety organization.
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Ari Natter, Bloomberg
Angela Cooner Named "Top Lawyer" by Phoenix Magazine in Inaugural Publication
October 10, 2022 —
Angela L. Cooner - Lewis BrisboisPhoenix, Ariz. (September 7, 2022) – Phoenix Partner Angela L. Cooner was recently recognized for her work in Commercial Litigation by Phoenix Magazine in its inaugural list of Top Lawyers.
Ms. Cooner was named a Top Lawyer after Phoenix Magazine partnered with research firm Data Joe to collect and tally online survey results from local practicing attorneys. The survey asks respondents to provide the names of up to three attorneys they deem the best in 39 legal specialties. After the votes are tallied and the nominees are confirmed to be members of Valley-based firms and in good standing, the top 10-20% of vote-getters in each category are named to the Top Lawyers list.
Ms. Cooner is a member of Lewis Brisbois’ Construction and General Liability Practices. For more than two decades, she has managed an array of matters, including construction litigation, complex commercial litigation, professional liability cases, product liability issues, premises liability cases, and real estate litigation. Earlier this year, she was appointed vice-chair of the State Bar of Arizona’s inaugural Board of Legal Specialization Construction Defect Law Advisory Commission.
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Angela L. Cooner, Lewis BrisboisMs. Cooner may be contacted at
Angela.Cooner@lewisbrisbois.com