Seventh Circuit Confirms Additional Insured's Coverage for Alleged Construction Defects
August 10, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe Seventh Circuit held that the underlying complaint alleged an occurrence by asserting that the painting subcontractor was negligent in causing damage to the building. Westfield Ins. Co. v. Nat'l Decorating Serv., Inc., 2017 U.S. App. LEXIS 12516 (7th Cir. July 13, 2017).
McHugh Construction, the general contractor for construction of a 24 story condominium building in Chicago, retained National Decorating Service, Inc. as a subcontractor to perform all of the painting work. This meant National Decorating would paint the exterior of the building with a protective coating that was a waterproof sealant.
After completion, the building's board of managers sued McHugh, National Decorating, and others for damages resulting from faulty workmanship. The third amended complaint alleged: (1) significant cracking of the exterior concrete walls, interior walls, and ceilings; (2) significant leakage through the exterior concrete walls, balconies, and windows; (3) defects to the common elements of the building; and (4) damage to the interior ceilings, floors, interior painting, drywall, and furniture in the units.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nevada Assembly Passes Construction Defect Bill
October 30, 2013 —
CDJ STAFFThe Nevada Speaker says that AB401 gives contractors what they want, but a contractors’ group has asked a Senate committee to kill the bill. Supporters of AB 401 say that it clarifies what qualifies as a construction defect and shortens the statute of limitations.
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California Supreme Court Adopts “Vertical Exhaustion” in the Long-Storied Montrose Environmental Coverage Litigation
June 08, 2020 —
Gregory S. Capps & Michael E. DiFebbo - White and Williams LLPOn April 6, 2020, the California Supreme Court issued a decision that held a policyholder is entitled to access available excess coverage under any excess policy once it has exhausted directly underlying excess policies for the same policy period in Montrose Chemical Corporation v. the Superior Court of Los Angeles County, Supreme Court of California, case number S244737. In its unanimous decision adopting this “vertical exhaustion” requirement, the court rejected the “horizontal exhaustion” rule urged by the policyholder’s excess insurers, under which the policyholder would have been able to access an excess policy only after it had exhausted other policies with lower attachment points from every policy period in which the environmental damage resulting in liability occurred.
In 1990, Montrose sought coverage under primary policies and multiple layers of excess policies issued for periods from 1961 through 1985 for environmental damage liabilities arising from its production of insecticide in the Los Angeles area between 1947 and 1982. The ongoing dispute currently arises out of Montrose’s Fifth Amended Complaint which was filed in 2015 seeking declarations concerning exhaustion and the manner in which Montrose may allocate its liabilities across the policies. Each of the excess policies at issue contained a requirement of exhaustion of underlying coverage. The various policies described the applicable underlying coverage in four main ways: (1) some policies contained a schedule of underlying insurance listing all of the underlying policies in the same policy period by insurer name, policy number, and dollar amount; (2) some policies referenced a specific dollar amount of underlying insurance in the same policy period and a schedule of underlying insurance on file with the insurer; (3) some policies referenced a specific dollar amount of underlying insurance in the same policy period and identified one or more of the underlying insurers; and (4) some policies referenced a specific dollar amount of underlying insurance that corresponds with the combined limits of the underlying policies in that policy period. The excess policies also provided, in various ways, that “other insurance” must be exhausted before the excess policy can be accessed.
Reprinted courtesy of
Gregory S. Capps, White and Williams LLP and
Michael E. DiFebbo, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Mr. DiFebbo may be contacted at difebbom@whiteandwilliams.com
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Newmeyer & Dillion Attorneys Selected to the 2016 Southern California Super Lawyers Lists
June 09, 2016 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – JUNE 6, 2016 – Prominent business and real estate law firm
Newmeyer & Dillion LLP is pleased to announce that three of the firm’s attorneys,
Jennifer L. Ferrentino,
Robyn E. Frick and
Michael B. McClellan were selected to the
Southern California Super Lawyers 2016 Rising Stars list for business litigation. Each year, no more than 2.5 percent of the lawyers in the state are selected by Super Lawyers to receive this honor. The attorneys will be recognized in the July 2016 issues of Super Lawyers Magazine, Los Angeles Magazine and Orange Coast magazine.
In addition, twelve of the firm’s Newport Beach attorneys were selected to the
2016 Southern California Super Lawyers list, an honor given to no more than five percent of the lawyers in California.
Michael S. Cucchissi, Real Estate
Mark S. Himmelstein, Construction Litigation
Jane M. Samson, Real Estate
Jeffrey M. Dennis, Construction Litigation
Charles S. Krolikowski, Eminent Domain
Robert K. Scott, Insurance Coverage
Gregory L. Dillion, Business Litigation
Thomas F. Newmeyer, Business Litigation
Michael J. Studenka, Employee Litigation: Defense
Joseph A. Ferrentino, Construction Litigation
John A. O'Hara, Construction Litigation
Carol S. Zaist, Business Litigation
Making the list since it was originally published in 2004 is co-founding litigation partner
Greg Dillion who was again selected to the
Top 50: 2016 Orange County Super Lawyers List. In addition,
Jennifer L. Ferrentino, Robyn E. Frick, Jane M. Samson and
Carol S. Zaist were listed in the
2016 Top Women Attorneys in Southern California by Super Lawyers.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations and peer evaluations. The Rising Stars list is developed using the same selection process except a candidate must be either 40 years old and younger or in practice for 10 years or less.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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New York Governor Expected to Sign Legislation Greatly Expanding Recoverable Damages in Wrongful Death Actions
June 20, 2022 —
Nicholas P. Hurzeler - Lewis BrisboisNew York, N.Y. (June 3, 2022) - The New York Senate and Assembly recently passed
Bill S74A, also known as the Grieving Families Act, and it is expected that Governor Hochul will likely sign the bill into law. If passed, the law would significantly expand the damages available in wrongful death actions in a number of ways.
First, Section 1 would amend EPTL section 5-4.1 to extend the statute of limitations to commence a wrongful death action from two years to three years and six months, a significant increase that will permit many more wrongful death cases to go forward.
Second, Section 2 amends EPTL section 5-4.3, to allow recovery for emotional damages if a tortfeasor is found liable for causing a death. The current law only allows recovery of economic damages, such as economic hardship caused by a loss of parental guidance. The old law did not permit recovery of damages for grief, sympathy, and loss of companionship or consortium (see, e.g., Liff v. Schildkrout, 49 N.Y.2d 622 (1980); Bumpurs v. New York City Hous. Auth., 139 A.D.2d 438, 439 (1st Dept. 1988)), but that would change with passage of the new bill.
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Nicholas P. Hurzeler, Lewis BrisboisMr. Hurzeler may be contacted at
Nicholas.Hurzeler@lewisbrisbois.com
Condo Owners Allege Construction Defects
July 06, 2011 —
CDJ STAFFLast November, mold problems were discovered at the Siena Condominiums in Montclair, New Jersey, which had been described by their developers as “an enclave of luxury in an urban village setting.” The owners have filed a lawsuit against Pinnacle Companies, Kohl Parnters, and Herod Development, seeking “compensatory damages, interest, reasonable attorney’s fee and costs, and for such other, further, and different relief as the Court may deem just and proper.”
According to the article on Baristanet.com, an engineering report commissioned by the condominium association revealed many problems, including improperly installed windows and siding. The developers commissioned two engineering reports themselves and found evidence of water pounding on the roof. Despite these reports and repeated promises, no repairs have been made.
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Insurer Beware: Failure to Defend Ends with Hefty Verdict
June 01, 2011 —
Douglas Reiser, Builders Council BlogServed with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.
Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.
But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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California Supreme Court McMillin Ruling
January 24, 2018 —
Don MacGregor - CDJ STAFFReaction to the recent California Supreme Court ruling in McMillin Albany LLC v. The Superior Court of Kern County has been both swift and diverse, with many notable California law firms weighing in on the potential impact this landmark ruling may have on the Construction Industry and construction defect litigation. In our ongoing desire to serve as a meaningful and comprehensive provider of news and information for Construction and Claims Professionals, we have included a selected number of the submissions we have received regarding this very important judicial ruling.
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