"Multiple Claims" Provisions on Contractor's Professional Liability Policy Creates a Trap for Policyholders
May 24, 2021 —
Michael V. Pepe - Saxe Doernberger & VitaIn Berkley Assurance Company v. Hunt Construction Group, Inc., 465 F.Supp.3d 370 (S.D.N.Y., 2020), professional liability insurer Berkley sued its insured, Hunt, a construction management firm, seeking a declaration that it did not owe Hunt a duty to defend and indemnify against breach of contract claims. The United States District Court for the Southern District of New York granted Berkley’s motion for summary judgment and denied Hunt’s motion for partial summary judgment. Among other things, the court held that the policy’s automatic extended reporting period did not apply to Hunt’s first claim. The multiple claims provision barred Hunt’s second claim because the claims were related.
The court’s holding creates a potential trap for policyholders who wait to see how a claim develops before reporting it to their insurance carrier. This case demonstrates that waiting to see how a claim develops can result in a loss of coverage. Policyholders need to be aware of this trap and report all claims and circumstances immediately.
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Michael V. Pepe, Saxe Doernberger & VitaMr. Pepe may be contacted at
MPepe@sdvlaw.com
Kahana Feld Partner Jeff Miragliotta and Senior Associate Rachael Marvin Obtain Early Dismissal of Commercial Litigation Cases in New York and New Jersey
August 26, 2024 —
Rachael Marvin - Kahana FeldKF attorneys Jeff Miragliotta and Rachael Marvin recently secured early dismissal for a commercial real estate client on pre-answer motions to dismiss for two cases involving disputes over commercial properties in Union County, New Jersey and Suffolk County, New York.
Plaintiff argued it was entitled to damages in excess of 50 million dollars, including punitive damages, for claims involving trade libel, defamation, conspiracy, and tortious interference with contract and prospective economic advantage for reports that were prepared in connection with the use of a commercial building in Union County, New Jersey. KF attorneys successfully argued that the statute of limitations had run for each of plaintiff’s claims by utilizing a decision from the Supreme Court of New Jersey in an underlying case filed against Union County.
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Rachel Marvin, Kahana FeldMs. Marvin may be contacted at
rmarvin@kahanafeld.com
Housing Prices Up through Most of Country
December 20, 2012 —
CDJ STAFFHome prices in October were up more than six percent compared with prices in October 2011. The LA Times noted that some of the strongest gains were in California and Arizona. The Phoenix metropolitan area saw a 24.5% rise in home prices. In California, Riverside and Los Angeles were just above the national average, at 7.3% and 6.4%, contributing to the state’s overall nine percent increase.
The news wasn’t good throughout the entire country, as five states did not see any price increases. Mark Fleming, the chief economist at CoreLogic, a research firm in Irvine, California said that “the housing recovery that started earlier in 2012 continues to gain momentum.
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Making the Construction Industry a Safer place for Women
February 22, 2018 —
Laura Parsons - CDJ STAFFWomen make up 47 percent of the total U.S. workforce yet they only hold approximately 9 percent of construction jobs nationwide. Because of this minority, women endure health and safety issues that men usually don’t, according to Safety.BLR.com’s article “OSHA renews alliance to protect women in construction.”
The main areas that women face problems in the construction industry are healthy, safety and workplace culture. Women are potentially exposed to sexual harassment, demeaning remarks, and bodily assaults. Most of personal protective equipment (PPE) and tools are made for the typical male body to use and operate and are too heavy or oversized for many women.
The National Association of Women in Construction (NAWIC) partnered with OSHA in 2013 and just renewed their alliance aiming to improve upon workplace intimidation and violence as well as sanitation and PPE. The partnership is committed “to providing NAWIC members and others with information, guidance, and access to training resources that will help them protect the health and safety of workers, and understand the rights of workers and the responsibilities of employers under the Occupational Safety and Health Act (OSH Act).” This will be achieved by the implementation of national rules, laws, and standards as well as the circulation of preventative information.
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California Court of Appeal Affirms Trial Court’s Denial of anti-SLAPP Motion in Dispute Over Construction of Church Facilities
March 27, 2023 —
Garrett A. Smee & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPOn February 28, 2023, the California Fourth District Court of Appeal, Division One, issued an opinion in Billauer v. Escobar-Eck (D079835), affirming the trial court’s denial of an anti-SLAPP motion stemming from a public debate over a Church construction project.
The Appellant (Billauer) ran several social media sites as a “neighborhood activist.” The Respondent (Escobar-Eck) ran a land use and strategic planning firm in San Diego. The “All People’s Church” had hired Escobar-Eck’s company in 2019 to obtain City approval for a Church campus. During a Zoom presentation by Escobar-Eck to a Church planning group on November 11, 2020, Billauer, as a participant in the meeting sent a chat to Escobar-Eck stating: “I’m going to make sure you get sent back to where you came from.” Over the span of the next six months, from November 11, 2020 to April 8, 2021, Billauer continued the onslaught through a series of five posts on Instagram and Facebook, attacking Escobar-Eck. On December 10, 2020, Escobar-Eck fired back with a Twitter post to Billauer’s employer, Wells Fargo, labeling Billauer as a cyberbullying racist.
Reprinted courtesy of
Garrett A. Smee, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Smee may be contacted at gsmee@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Thirteen Payne & Fears Attorneys Honored by Best Lawyers
August 19, 2024 —
Payne & Fears LLPCongratulations to the 13 Payne & Fears attorneys included in the 2025 Edition of “Lawyer of the Year,” The Best Lawyers In America®, and Best Lawyers: Ones to Watch®. Attorneys have been recognized in the following practice areas:
2025 Edition “Lawyer of the Year”
Orange County
Benjamin A. Nix
Daniel F. Fears
- Litigation – Labor and Employment
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Payne & Fears LLP
Tarriffs, a Pandemic and War: Construction Contracts Must Withstand the Unforeseeable
May 16, 2022 —
Brett Moritz, Adrian Bastianelli III & Adam Handfinger - Construction ExecutiveSince the tariffs on steel and the first wave of the COVID-19 pandemic, the construction industry has been reeling from the impact of material shortages and price increases, labor shortages, breakdowns in the supply chain and the inflationary effect of these issues. Unfortunately, the war in Ukraine has only exacerbated the situation.
International conflicts can constrain supply, resulting in delays and price increases for contractors, subcontractors and suppliers. The disruption caused by the war is expected to be particularly acute due to the role that Russia and Ukraine play in the world economy and the effect of the economic sanctions that have been imposed on Russia by the United States and other countries. Russia controls approximately 10% of the global copper reserves and is estimated to produce about 10% of the world’s nickel supply. It also provides at least 30% of Europe’s oil and natural gas. Ukraine is a significant source of raw materials, such as iron. Thus, the war will cause significant shortages and price increases to the global construction industry. There are already reports of delays and cost increases for commodities such as nickel, aluminum, copper and—most importantly—steel, which have resulted in impacts to construction costs and schedules. Suppliers are especially sensitive to the volatile markets caused by these conditions. Some are insisting on automatic price increases in their purchase orders.
All of this, not to mention the anticipation of what may come next, points to the necessity for a new paradigm to achieve a successful project. It is more important today than ever that owners, contractors, subcontractors and suppliers reasonably address the economic and time impacts of these unforeseeable events in preparing contracts for future work and in administering existing contracts. Otherwise, the risk of a default on more than one level may put projects in jeopardy, to no one’s benefit.
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Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Architects and Engineers Added to Harmon Towers Lawsuit
February 12, 2013 —
CDJ STAFFSince the beginning of the Harmon Towers construction defect lawsuit, it has been CityCenter making claims against Perini, the property owner against the builder. CityCenter now has a new legal team, and with it apparently a new strategy. The Las Vegas Review Journal reports that papers were filed in court on February 8, adding the architect and the engineer as defendants in the case.
According to the filings, the engineering firm Halcrow Yolles should have noticed during inspections that parts of the building’s steel skeleton were improperly installed and should have been repaired. Instead these structures were encased in concrete. CityCenter also contends that there were deficiencies in Halcrow’s blueprints. AAI Architects has been named because its contract made it responsible for Halcrow’s work.
Perini has contended that some problems at the building were due to bad plans and therefore not their responsibility. They have claimed that they can fix the building for $20 million, of which $4 million would be due to their actions.
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