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In Construction Your Contract May Not Always Preclude a Negligence Claim

March 30, 2016 — Christopher G. Hill – Construction Law Musings
Here at Construction Law Musings I have discussed the interaction of the so called “economic loss rule,” construction contracts and tort claims on numerous occasions. The general rule is that where a duty to perform in a certain way arises from the contract, the Virginia courts will not allow a plaintiff to turn a contract claim into a tort claim such as fraud or negligence. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Storm Eunice Damage in U.K. Could Top £300 Million

February 28, 2022 — Press Association - Bloomberg
Hundreds of thousands of homes are still without power due after Storm Eunice tore through the country, while insurers have indicated the clean-up could cost more than £300 million. At least four people were killed in the UK and Ireland during one of the worst storms in decades, with a gust of 122mph provisionally recorded at the Needles on the Isle of Wight, which, if verified, would be the highest ever recorded in England. Energy Networks Association (ENA) has said nearly 400,000 homes had no electricity on Friday night, with network providers recording 156,000 disrupted customers for UK Power Networks, 120,000 for Scottish & Southern, 112,000 for Western Power, 6,000 for Northern Power and 260 for Electricity North West. Read the court decision
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Reprinted courtesy of Bloomberg

New Addition To New Jersey Court Rules Impacts More Than Trial Practice

November 16, 2020 — Thomas Regan & Karley Kamaris - Lewis Brisbois Newsroom
On September 1, 2020, New Jersey adopted a brand-new rule of procedure, Rule 4:25-8, which properly defines motions in limine. On its face, the new rule prohibits, broadly, filing motions in limine that may have a dispositive effect on the case. Most notably, the rule expressly eliminates the ability to move, on motion in limine, to bar expert testimony in matters in which such experts are required to sustain a party’s burden of proof. This effectively makes the summary judgment phase of litigation the last chance to bar experts from a jury trial or take any other dispositive action The new rule comes at a time in which the evidentiary standard for experts is shifting in New Jersey. In October 2018, the New Jersey Supreme Court reconciled the framework for analyzing the reliability of expert testimony under N.J.R.E. 702 and 703 in In re: Accutane Litigation. Significantly, New Jersey, a traditional Frye jurisdiction, incorporated certain federal Daubert factors for expert “use by our courts” but, overall, fell short of adopting the Daubert standard as a whole. In applying the relevant Daubert factors, the trial court in Accutane held that the subject experts’ methodologies were unsound due to the failure to apply fundamentals of the scientific method of the medical-evidence hierarchy. The decision resulted in the dismissal of over 3,000 claims. Reprinted courtesy of Thomas Regan, Lewis Brisbois and Karley Kamaris, Lewis Brisbois Mr. Regan may be contacted at Thomas.Regan@lewisbrisbois.com Ms. Kamaris may be contacted at Karley.Kamaris@lewisbrisbois.com Read the court decision
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Insurers Subrogating in Arkansas Must Expend Energy to Prove That Their Insureds Have Been Made Whole

August 06, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
Arkansas employs the “made whole” doctrine, which requires an insured to be fully compensated for damages (i.e., to be “made whole”) before the insurer is entitled to recover in subrogation.[1] As the Riley court established, an insurer cannot unilaterally determine that its insured has been made whole (in order to establish a right of subrogation). Rather, in Arkansas, an insurer must establish that the insured has been made whole in one of two ways. First, the insurer and insured can reach an agreement that the insured has been made whole. Second, if the insurer and insured disagree on the issue, the insurer can ask a court to make a legal determination that the insured has been made whole.[2] If an insured has been made whole, the insurer is the real party in interest and must file the subrogation action in its own name.[3] However, when both the insured and an insurer have claims against the same tortfeasor (i.e., when there are both uninsured damages and subrogation damages), the insured is the real party in interest.[4] In EMC Ins. Cos. v. Entergy Ark., Inc., 2019 U.S. App. LEXIS 14251 (8th Cir. May 14, 2019), EMC Insurance Companies (EMC) filed a subrogation action in the District Court for the Western District of Arkansas alleging that its insureds’ home was damaged by a fire caused by an electric company’s equipment. EMC never obtained an agreement from the insureds or a judicial determination that its insureds had been made whole. In addition, EMC did not allege in the complaint that its insureds had been made whole and did not present any evidence or testimony at trial that its insureds had been made whole. After EMC presented its case-in-chief, the District Court ruled that EMC lacked standing to pursue its subrogation claim because “EMC failed to obtain a legal determination that its insureds had been made whole . . . prior to initiating this subrogation action.” Thus, the District Court granted Entergy Ark., Inc.’s motion for judgment as a matter of law and EMC appealed the decision. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

Update Regarding New York’s New Registration Requirement for Contractors and Subcontractors Performing Public Works and Covered Private Projects

February 06, 2023 — Christopher B. Kinzel, K. Greer Kuras, Aaron C. Schlesinger - Peckar & Abramson, P.C.
Some significant changes are being made by chapter amendments (S.838 and A.984) to Section 220-i of New York’s Labor Law. Contractors and subcontractors bidding on public contracts and performing work on covered private projects will have two years (by December 30, 2024) to register with the Department of Labor, Bureau of Public Works, rather than one year. The amendments also remove the requirement that a contractor submit registration certificates for all its subcontractors at the time its bid is submitted; amend language with respect to notice and hearing requirements; require re-registration to occur not less than 90 days before expiration; and add language to require a monitor to oversee ongoing work if a contractor or subcontractor is found unfit. The stated purpose of the law is to help enforce New York’s prevailing wage and other worker protection laws. The DOL will create an online system through which contractors and subcontractors will have to answer questions and submit documents about:

the business entity and its owners and officers
unemployment and workers’ compensation insurance
any outstanding wage assessments
debarment under New York or federal law, or any other state’s laws
final determinations of a violation of any labor laws, employment tax laws, or workplace safety standards (including OSHA)
association or signatory to an apprenticeship program

Reprinted courtesy of Christopher B. Kinzel, Peckar & Abramson, P.C., K. Greer Kuras, Peckar & Abramson, P.C. and Aaron C. Schlesinger, Peckar & Abramson, P.C. Mr. Kinzel may be contacted at ckinzel@pecklaw.com Ms. Kuras may be contacted at gkuras@pecklaw.com Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Read the court decision
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Top 10 Insurance Cases of 2020

January 11, 2021 — Grace V. Hebbel, Andrew G. Heckler & Jeffrey J. Vita - Saxe Doernberger & Vita P.C.
COVID-19 business interruption coverage litigation may have stolen the show in 2020, but those cases should not eclipse other important insurance coverage cases decided throughout this past year. As the courts nationwide struggled with the insurance coverage implications of COVID-19 related business loss, other significant coverage decisions were overshadowed. Read on to learn about how computer glitches, biometric privacy, and a falling wheelbarrow have all played a role in\ shaping some of the most interesting and influential insurance coverage decisions of 2020, as well as get a sneak peek at the key coverage decisions looming in 2021. Enjoy! 1. Nash Street, LLC v. Main Street America Assurance Company, No. 20389, 2020 WL 5415325 (Conn. 2020) Do exclusions k(5) and k(6) absolve an insurer of its duty to defend its insured for allegations of faulty workmanship? Reprinted courtesy of Grace V. Hebbel, Saxe Doernberger & Vita P.C., Andrew G. Heckler, Saxe Doernberger & Vita P.C. and Jeffrey J. Vita, Saxe Doernberger & Vita P.C. Ms. Hebbel may be contacted at GHebbel@sdvlaw.com Mr. Heckler may be contacted at AHeckler@sdvlaw.com Mr. Vita may be contacted at JVita@sdvlaw.com Read the court decision
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On Rehearing, Fifth Circuit Finds Contractual-Liability Exclusion Does Not Apply

November 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
On rehearing, the Fifth Circuit determined that the contractual-liability exclusion did not apply to bar coverage for damage caused by the insured contractor to the home it constructed. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20727 (5th Cir. Oct. 29, 2014).The court withdrew its prior opinion, summarized here. Arrow Development, Inc. contracted with the Crownovers to construct a home. The contract had a warranty-to-repair clause, which, in paragraph 23.1, provided that Arrow would "promptly correct work . . . failing to confirm to the requirements of the Contract Documents." After the Crownovers moved in, cracks began to appear in the walls and foundation of the home. Additional problems with the heating, ventilation, and air conditioning ("HVAC") caused leaking in the exterior lines and air ducts inside the home. To compensate for defects in the HVAC system, the system's mechanical units ran almost continuously in order to heat or cool the home. Because they were overburdened, the mechanical units had to be replaced. The Crownovers paid several hundred thousand dollars to fix the problems with the foundation and HVAC system. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Relief Bill's Highway Funds Could Help Construction Projects

January 04, 2021 — Tom Ichniowski - Engineering News-Record
Among the many provisions in the coronavirus relief bill, one key item is $10 billion to help state highway agencies make up for losses in state fuel taxes and other revenue due to the pandemic-caused falloff in traffic this year. Construction is one of a list of several eligible uses for the money—one of only a few construction funding provisions in the relief measure. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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