Insurance Law Alert: Ambiguous Producer Agreement Makes Agent-Broker Status a Jury Question
September 10, 2014 —
Valerie A. Moore & Christopher Kendrick - Haight Brown & Bonesteel LLPIn Douglas v. Fidelity National Ins. (No. A137645; filed 8/29/14), a California appeals court held that it was a jury question whether a retail insurance service with limited binding authority should be deemed a broker or an agent for the purpose of determining if application misrepresentations would void coverage.
In Douglas, the homeowners needed insurance for a house they had used as a group home. They sought coverage from Cost-U-Less, which provided personal lines insurance from, among others, Fidelity National Insurance Company. According to the couple’s wife, she went to a Cost-U-Less office where she answered application questions from a person on the telephone, who was later identified as an employee of another company, InsZone.
InsZone had a producer contract with Fidelity. In practice, InsZone would be contacted by Cost-U-Less via telephone, at which point an InsZone employee would verbally solicit information from the client, with the information being entered into a computer by the InsZone employee and then transmitted electronically to Fidelity.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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ACS Recognized by Construction Executive Magazine in the Top 50 Construction Law Firms of 2021
September 06, 2021 —
Ahlers Cressman & Sleight PLLCACS is pleased to announce that the firm has been recognized by Construction Executive magazine in The Top 50 Construction Law Firms™ for 2021. Construction Executive ranked ACS number 31 among the top 50 construction practices in the country.
ACS is known for our depth of knowledge of the construction industry and experience in construction law. Our lawyers hold leadership positions within state and national industry organizations. Two of our lawyers are past chairs of the Washington State Bar Association’s Construction Law Section and the current chair, five of our lawyers have served as the Chair of the Associated General Contractors of Washington’s Legal Affairs Committee, and the majority of our lawyers are recognized as Super Lawyers and Rising Stars in Super Lawyers Magazine/Thomson Reuters.
Since it was first published in 2003, Construction Executive has become the leading trade magazine for news, market developments, and business issues impacting the construction industry. The magazine reaches more than 55,000 commercial, industrial, and institutional contractors and construction-related business owners. Each issue of Construction Executive includes articles designed to help owners and top managers run a more profitable and productive construction business.
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Ahlers Cressman & Sleight PLLC
Federal Court Predicts Coverage In Nevada for Damage Caused by Faulty Workmanship
April 03, 2013 —
Tred Eyerly - Insurance Law HawaiiMethodically analyzing the damage claims, the federal district court largely denied the insurers' motions for summary judgment for coverage of construction defect claims. Big-D Constr. Corp. v. Take It for Granite Too, 2013 U.S.Dist. LEXIS 8377 (D. Nev. Jan. 22, 2013).
Big-D was the general contractor for a remodeling project of International Gaming Technologies' (IGT) building. Big-D subcontracted with Take it for Granite Too (TIFGT) to install various tiling and stonework on the interior and exterior of the building.
After TIFGT began its stonework, a stone tile fill from an exterior wall. Over the next several months and after completion of TIFGT's work, two additional stones fell from exterior walls. IGT directed Big-D to replace TIFGT's stonework on the walls. Big-D notified TIFGT and requested that it make immediate repairs. TIFGT did not respond and eventually went out of business.
Experts opined that the cause of the stones falling was efflorescence between the tile and the wall. Efflorescence occurred when the stone started to deteriorate, spall, and become soft. It was caused by water entering through an open joint and getting behind the stone tile.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Appeals Court Rules that Vertical and Not Horizontal Exhaustion Applies to Primary and First-Layer Excess Insurance
August 31, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Santa Fe Braun v. Ins. Co. of North America (No. A151428, filed 7/13/20), a California appeals court relied on Montrose Chemical Corp. of California v. Superior Court (2020) 9 Cal.5th 215 (Montrose III), to hold that absent express policy wording to the contrary, horizontal exhaustion of all primary insurance is not required in order to trigger first-layer excess coverage.
Beginning in 1992, Braun was sued for asbestos injuries from refineries it constructed and maintained. Braun had primary coverage and multiple layers of excess coverage for the relevant time period. After defending for years, the primary insurers reached a settlement under which they paid their limits into a trust which would fund the ongoing defense and settlements. Certain of the excess insurers settled and also contributed to the trust.
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
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NYC-N.J. Gateway Rail-Tunnel Work May Start in 2023
March 28, 2022 —
Elise Young - BloombergThe $12.3 billion Gateway rail tunnel linking New York City and New Jersey has reached a major preconstruction milestone with the completion of geotechnical studies necessary for the engineering phase.
The analysis of rock and silt from 75 earth samples on both sides of the Hudson River marks the latest in a series of swift leaps toward a potential 2023 start date. The project had been delayed years by former President Donald Trump, who had argued that costs should be covered solely by the states, not U.S. taxpayers.
The samples, from depths of 48 feet to 505 feet (14.6 meters to 154 meters), will guide design, according to the Gateway Development Commission, the project’s overseer. Some areas of particular interest to the researchers were on Manhattan’s West Side, parts of which were underwater before landfill was added many years ago.
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Elise Young, Bloomberg
Certificates of Merit: Is Your Texas Certificate Sufficient?
January 22, 2024 —
Gus Sara - The Subrogation StrategistIn Eric L. Davis Eng’g, Inc. v. Hegemeyer, No. 14-22-00657-CV, 2023 Tex. App. LEXIS 8899, the Court of Appeals of Texas (Court of Appeals) considered whether the plaintiffs’ certificate of merit, in support of their professional malpractice claim against the defendant engineers, adequately set forth the experience and qualifications of the expert who submitted the certificate. The defendants filed a motion to dismiss, alleging that the certificate of merit was inadequate because it failed to establish that the expert practiced in the same specific areas as the defendants in relation to the work at issue. The lower court denied the defendants’ motion. The Court of Appeals affirmed the lower court’s decision, finding that there was sufficient information for the lower court to have reasonably found that the plaintiffs’ expert practiced in the same area as the defendants.
In Hegemeyer, the plaintiffs sued Eric L. Davis Engineering, Inc. (Davis) and Kenneth L. Douglass (Douglass), alleging improper design of their home’s foundation. The plaintiffs retained Davis to design and engineer the home and Douglass prepared the plans for the home. The plans called for the installation of post-tension cables in the home’s foundation. The plaintiffs alleged that the foundation design was improper and brought professional malpractice claims against Davis and Douglass.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Connecting Construction Project Information: Open Technology Databases Improve Project Communication, Collaboration and Visibility
March 14, 2018 —
Andy Kayhanfar - InEightThe construction industry has been plagued for decades with projects coming in over budget and behind schedule. There are many reasons this happens, but it ultimately comes down to just one thing – a lack of connected information.
Today, gigabytes and even terabytes of data are generated on a project and housed in different systems that do not talk or share information, which creates a closed approach and inhibits collaboration. Data is siloed and only accessible to certain companies, departments or disciplines, which gives each project stakeholder a very limited view into the status of the project as they are making decisions.
To be successful, the construction industry needs to free project data from closed systems. There must be a way to give all project stakeholders access to accurate information within the context of how it applies to the overall project that will empower everyone from owners to engineers to contractors to make timely, fully informed decisions that bring projects in on time and within budget.
INTRODUCING THE OPEN TECHNOLOGY DATABASE
The need for deep visibility into project information across systems and stakeholders has given rise in the construction industry to the open technology database. This approach enables project stakeholders to link the data in their existing software systems and connect that information into one centralized location. Project stakeholders can continue to use and maintain the data in their own systems while still feeding the information to the shared environment, which brings together critical project details, provides context for decisions and makes it easier for all parties to collaborate.
Project stakeholders are now able to connect business data related to estimating, cost control, scheduling, contracts, purchasing, accounting and more. This creates a common data set across the project that can be quickly accessed and can easily be put in the hands of project decision makers.
Innovative companies are taking this connectivity to a new level. They see the potential to use 3D models beyond simply the design aspects of a project and bring them into the activities of construction. Innovators are taking all the project information available in the shared environment and connecting it to the 3D model to create a comprehensive view of the project.
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Andy Kayhanfar, Construction Executive, a Publication of Associated Builders and Contractors. All Rights Reserved
Jury Instruction That Fails to Utilize Concurrent Cause for Property Loss is Erroneous
March 22, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida District Court reversed erroneous jury instructions that adopted the efficient proximate cause doctrine in determining whether the insurer was responsible for the insureds’ collapsed roof. Jones v. Federated National Ins. Co., 2018 Fla. App. LEXIS 561 (Fla. Ct. App. Jan. 17, 2018).
The insureds filed a claim for their damaged roof, contending that the damage was caused by a hailstorm. Federal National Insurance Company denied the claim based upon exclusions for “wear and tear, marring, deterioration;” “faulty, inadequate or defective design;” “neglect;” “existing damage;” or “weather conditions.”
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
