Montana Federal Court Upholds Application of Anti-Concurrent Causation Clause
November 08, 2021 —
Tred R. Eyerly - Insurance Law HawaiiInterpreting Montana law, the federal district court found that the policy's anti-concurrent causation clause prevented coverage for the insured's damaged home. Ward v. Safeco Ins. Co. of Am., 2021 U.S. Dist. LEXIS 149051 (D. Mont. Aug. 9, 2021).
Plaintiff was advised by her tenants that water was bubbling up from the ground. It was determined that water was leaking from a main pipe serving the property. Subsequently, this old pipe was abandoned, left in the ground, and replaced with a new pipe in a new path with new excavation. Nevertheless, the insured reported the incident to her agent under her Landlord Protection Policy issued by Safeco, but reported there was no damage to the property.
Two months later, it was discovered a pipe burst again. The insured called her agent, who maintained the loss would not be covered, but agreed to submit a claim to Safeco. Safeco hired an inspector. A report stated that a portion of cracks found in the concrete perimeter of the home were not new and that the shape of the structure on which the house sat could explain their presence. The report noted that new cracks in the foundation could have been caused by a lack of care to make sure that the foundation was sufficient supported by consolidated soil during the excavation of the new water line. Based upon this report, Safeco denied coverage based upon the earth movement and water damage exclusions.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Few Things You Might Consider Doing Instead of Binging on Netflix
April 13, 2020 —
Garret Murai - California Construction Law BlogGovernments throughout the world have issued “shelter in place” orders requiring that residents stay at home except for “essential” purposes. As a result, in the United States, more than a third of Americans have been ordered to stay at home. This, in turn, has had a direct impact on construction projects which have slowed or have been temporarily shuttered altogether, and it will (not may) have an impact on the flow of project funds. So what can project owners and contractors do? We’ve got a few tips.
1. Read Your Contract, Paying Particular Attention to Force Majeure, No Damages for Delay and Notice Provisions
For the most part, with the exception of statutory rights and remedies which we will discuss below, your contract spells out your rights and remedies should the proverbial “S” hit the fan. It is, in other words, the rules you agreed to, and you should know what those rules provide. Three provisions you should look for, and if they’re in your contract, you should review carefully are: (1) Force majeure provisions; (2) No damages for delay provisions; and (3) notice provisions.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Auburn Woods Homeowners Association v. State Farm General Insurance Company
January 11, 2021 —
Michael Velladao - Lewis BrisboisIn Auburn Woods HOA v. State Farm Gen. Ins. Co., 56 Cal.App.5th 717 (October 28,2020) (certified for partial publication), the California Third District Court of Appeal affirmed the trial court’s entry of judgment in favor of State Farm General Insurance Company (“State Farm”) regarding a lawsuit for breach of contract and bad faith brought by Auburn Woods Homeowners Association (“HOA”) and property manager, Frei Real Estate Services (“FRES”) against State Farm and the HOA’s broker, Frank Lewis. The parties’ dispute arose out of the tender of two different lawsuits filed against the HOA and FRES by Marva Beadle (“Beadle”). The first lawsuit was filed by Beadle as the owner of a condominium unit against the HOA and FRES for declaratory relief, injunctive relief, and an accounting related to amounts allegedly owed by Beadle to the HOA as association fees. The second lawsuit filed by Beadle was for the purpose of setting aside a foreclosure sale, cancelling the trustee’s deed and quieting title, and for an accounting and injunctive relief against an unlawful detainer action filed by Sutter Group, LP against Beadle. The complaint filed in the second lawsuit alleged that Allied Trustee Services caused Beadle’s property to be sold at auction and that Sutter Capital Group, LP purchased the unit and obtained a trustee’s deed upon sale. Beadle claimed the assessments against her were improper and the trustee’s deed upon sale was wrongfully executed. Beadle sought an order restoring possession of her unit and damages.
The HOA and FRES tendered both lawsuits to State Farm. As respects the first lawsuit, State Farm denied coverage of the lawsuit based on the absence of alleged “damages” covered by the policy issued to the HOA affording liability and directors and officers (“D&O”) coverages. State Farm agreed to defend the HOA under the D&O coverage in the second lawsuit. However, State Farm denied coverage of FRES in both lawsuits as it did not qualify as an insured under the State Farm policy issued to the HOA. Subsequently, the HOA and FRES filed an action against State Farm arguing that a duty to defend was triggered under its policy for the first lawsuit and a duty to defend FRES was also owed under the D&O policy for the second lawsuit. After a bench trial, the trial court entered summary judgment in favor of State Farm based on the failure of the first lawsuit to allege damages covered by the State Farm policy under the liability and D&O coverages afforded by the policy. As respects the second lawsuit, the trial court held that FRES did not qualify as an insured and State Farm did not act in bad faith by refusing to pay the HOA’s alleged defense costs in the second lawsuit before it agreed to defend the HOA against such lawsuit.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
No Coverage for Counterclaim Arising from Insured's Faulty Workmanship
August 03, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit found there was no coverage for the insured's faulty workmanship. Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC, 958 F.3d 748 (8th Cir. 2020).
Mid-American contracted with Lehenbauer to design and construct a grain storage and distribution facility for Lehenbauer. Before the work was competed, Lehenbauer terminated Mid-American's services. Mid-American then sued Lehenbauer for breach of contract. Lehenbauer counterclaimed against Mid-American, alleged breach of "implied duties of workmanlike performance and fitness for a particular purpose" and negligence. Mid-American tendered the counterclaim to American Family. American Family accepted the tender under a reservation of rights, but sued Mid-American for a declaratory judgment.
The district court granted American Family's motion for summary judgment, concluding that the counterclaims did not allege an occurrence.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Lightstone Committing $2 Billion to Hotel Projects
February 26, 2015 —
Nadja Brandt – Bloomberg(Bloomberg) -- David Lichtenstein, whose real estate company owned Extended Stay Hotels when the chain went bankrupt, is committing $2 billion to developing and investing in lodging properties.
Lightstone Group is choosing “top-branded” select-service properties, those with limited amenities, in proven U.S. markets for its projects, Lichtenstein said in an interview. As part of the strategy, Lightstone has teamed up with Marriott International Inc. to build five Moxy hotels in New York -- four in Manhattan and one in Brooklyn. The “micro” lodgings, with high-tech features and smaller-than-average rooms, are geared toward younger travelers.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
HHMR is pleased to announce that David McLain has been selected as a 2020 Super Lawyer
June 29, 2020 —
David M. McLain – Colorado Construction LitigationDavid McLain is a founding member of Higgins, Hopkins, McLain & Roswell. Mr. McLain has over 22 years of experience and is well known for his work in the defense of the construction industry, particularly in the area of construction defect litigation. He is a member of the Executive Committee of the CLM Claims College - School of Construction, which is the premier course for insurance, industry, and legal professionals. Law Week Colorado recently named Mr. McLain as the 2019 People’s Choice for Best Construction Defects Lawyer for Defendants.
HHMR is highly regarded for its expertise in construction law and the litigation of construction-related claims, including the defense of large and complex construction defect matters. Our attorneys provide exceptional service to individuals, business owners, and Fortune 500 companies. The firm is experienced in providing legal support throughout trials and alternative dispute resolution such as mediations and arbitrations.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
National Engineering and Public Works Roadshow Highlights Low Battery Seawall Restoration Project in Charleston
April 29, 2024 —
Engineering and Public Works RoadshowCHARLESTON, SC — On Thursday, the nationwide Engineering and Public Works Roadshow stopped at the Low Battery Seawall Restoration Project in Charleston. The event highlighted the role engineers and public works professionals play in infrastructure projects like the local seawall improvements that increase coastal resiliency along the historic urban shoreline.
The event, which took place along the newly constructed battery wall section between King Street and Battery Place along Murray Boulevard, marked the latest stop of the Engineering and Public Works Roadshow – a joint effort by the American Council of Engineering Companies, the American Public Works Association, and the American Society of Civil Engineers to bring public attention to the essential role engineers and public works professionals play in making our modern world possible.
The battery project underscores the importance of innovative engineering solutions in addressing the challenges of climate change and rising sea levels. Thursday's event was also a chance to spotlight the engineering, construction, and public officials involved in the project, whose work often goes unrecognized.
About the Engineering and Public Works Roadshow: The Engineering and Public Works Roadshow is a series of nationwide events highlighting critical infrastructure projects and the skilled professionals who make them possible. It is an opportunity to learn about the importance of infrastructure investment, showcase the work of engineers and public works professionals, and celebrate these projects' positive impact on our communities. Learn more at www.infrastructureroadshow.org.
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Court Holds That Trimming of Neighbor’s Trees is Not an Insured Accident or Occurrence
June 10, 2015 —
Christopher Kendrick and Valerie A. Moore – Haight Brown & Bonesteel LLPIn Albert v. Mid-Century Insurance Co. (No. B257792, filed 4/28/15, ord. pub. 5/20/15), a California Court of Appeal held that an insured’s trimming of a neighbor’s trees which allegedly damaged the trees was not an accident or occurrence covered by her homeowners insurance, despite a mistaken and good faith belief as to where the property line lay.
Ms. Albert was sued by her adjoining neighbor, who alleged damage to his property when she erected an encroaching fence and pruned nine mature olive trees on his property. The two parcels shared a reciprocal roadway easement providing for access to the main public road. At some point, Ms. Albert erected a fence that was subsequently determined to be on the neighbor’s land, and which enclosed a grove of nine mature olive trees. Ms. Albert claimed that the trees straddled the property line and were mutually owned. She pointed out that she had regularly been notified by the Los Angeles Fire Department to clear the area, and that she had been trimming the trees for years. Thus, she claimed a good faith belief that the trees were hers and that she was required to trim them.
Contending that her trimming had caused severe damage by reducing the aesthetic and monetary value of the trees, the neighbor sued alleging causes of action for trespass to real property and trees; abatement of private nuisance; declaratory relief; and for quiet title. He sought treble damages under Civil Code sections 733 and 3346, for injury to timber or trees.
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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