Seattle Washington Building Expert Directory

New York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material Terms

February 15, 2021 — Gregory S. Capps & Marianne E. Bradley - White and Williams LLP
In the long-tail insurance context, it is not unusual to have issues arise addressing “lost” or “missing” policies. In an opinion issued on January 22, 2021, a New York court ruled that an insurer did not owe coverage to its insured for underlying asbestos claims because the insured had failed to establish the material terms of a “lost” policy under which it sought coverage for the underlying claims. The lawsuit, Cosmopolitan Shipping Company, Inc. v. Continental Insurance Company,[1] arose out of a coverage dispute between Plaintiff Cosmopolitan Shipping Co., Inc. (Cosmopolitan) and its insurance carrier, Continental Insurance Company (CIC), in connection with bodily injury claims arising out of asbestos exposure. The case provides a good analysis of what an insured must do to establish coverage under a “lost” or “missing” policy. During and after World War II, Cosmopolitan chartered and operated a number of shipping vessels on behalf of United Nations Relief and Rehabilitation Administration (UNRRA). In the 1980s, seamen who had worked on board Cosmopolitan’s vessels between 1946 and 1948 filed lawsuits against Cosmopolitan seeking damages for injuries arising out of alleged exposure to asbestos on Cosmopolitan’s vessels. Cosmopolitan sought coverage from CIC for the claims, alleging that CIC had insured Cosmopolitan’s vessels during the relevant time period under a protection and indemnity policy issued to the UNRAA (the P&I Policy). Reprinted courtesy of Gregory S. Capps, White and Williams LLP and Marianne E. Bradley, White and Williams LLP Mr. Capps may be contacted at cappsg@whiteandwilliams.com Ms. Bradley may be contacted at bradleym@whiteandwilliams.com Read the court decision
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Wildfire Is Efficient Proximate Cause of Moisture Reaching Expansive Soils Under Residence

November 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The court considered whether a wildfire (covered risk) or moisture in the soils (excluded risk) was the cause of damage to the insureds' home. Encompass Ins. Co. v. Berger, 2014 U.S. Dist. LEXIS 142870 (C.D. Cal. Oct. 7, 2014). In May 2009, the Jesusita Fire caused damage to the insureds' home and surrounding area. The west wall of the house was burned, causing damage to a bedroom. A shed, hot tub, wooden decks and some vegetation, including eucalyptus trees, were damaged. The insureds submitted a claim to Encompass. Eventually, Encompass spent $400,000 repairing the property. 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

Mexico Settles With Contractors for Canceled Airport Terminal

August 26, 2019 — Eric Martin - Bloomberg
Mexico City's airport authority settled a dispute with builders on an 85 billion peso ($4.45 billion) contract for the terminal at a new Mexico City airport that President Andres Manuel Lopez Obrador canceled a month before taking office. Grupo Aeroportuario Ciudad de la Mexico will pay 14.2 billion pesos, equivalent to 16.7% of the contract's total cost, to Constructora Terminal de Valle de Mexico, a consortium that includes Carlos Slim's Operadora Cicsa, the Communications and Transportation Ministry said in an emailed statement. The contracts represented 45% of the airport's total cost, the ministry said. Read the court decision
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Reprinted courtesy of Eric Martin, Bloomberg

Changes to Comprehensive Insurance Disclosure Act in New York Introduced

February 07, 2022 — Craig Rokuson & Lisa M. Rolle - Traub Lieberman Insurance Law Blog
As discussed in our post on Friday, January 7, 2022, Governor Kathy Hochul signed into law the Comprehensive Insurance Disclosure Act, mandating comprehensive, automatic disclosures regarding insurance in all cases pending in New York courts. Although the law was signed as written, Governor Hochul also made proposed amendments to the law, in the form of a “redline” in an attempt to make the law less onerous on insurance companies and businesses. On January 18, 2022, Senator Andrew Gounardes introduced Senate Bill 7882, incorporating Governor Hochul’s proposed amendments:

The time for disclosure would be 90 days of service of the answer, instead of 60.
The proof of insurance could constitute a declaration page only, if a party agrees in writing.
The required policies to be disclosed only relate to the claim litigated.

Reprinted courtesy of Craig Rokuson, Traub Lieberman and Lisa M. Rolle, Traub Lieberman Mr. Rokuson may be contacted at crokuson@tlsslaw.com Ms. Rolle may be contacted at lrolle@tlsslaw.com Read the court decision
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Real Estate & Construction News Round-Up 01/26/22

February 07, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The future of traditional real estate skills for virtual land buys is questioned, China’s property sector might experience policy easing, U.S. commercial real estate sales set records in 2021, and more.

As the platforms and business case for virtual land buys mature, the future of traditional real estate skills remains unclear when it comes to managing virtual ownership and development. (Patrick Sisson, Bisnow)
China’s real estate sector is likely to see “significant easing” in the policies that govern it after stricter financing rules for property development set in 2020 were met with debt, causing a contraction in the market. (Reuters)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Is Your Business Insured for the Coronavirus?

March 16, 2020 — J. Kelby Van Patten & Jared De Jong - Payne & Fears
How bad will the pandemic get? How much will it spread in the United States? Will we develop a vaccine in time to do any good? As insurance lawyers, we have no idea. But we can help you figure out whether your business is insured for the coronavirus risks that keep business owners up at night. Risk 1: An outbreak forces my business to close until the outbreak ends. Are my financial business losses covered? Maybe. Many commercial property policies provide “business interruption coverage” which may apply. This coverage typically requires that: (i) Your business is shut down. If your business actually closes for a period of time, you may meet this requirement. However, you wouldn’t meet it if your business slows because half of your staff is home sick. (ii) The shutdown is necessary. “Necessary” means something different than “desirable” or “prudent.” Whether a shutdown is necessary depends on the facts. If it is physically or legally impossible to enter your building, then closure is necessary. But if the government issues a public advisory recommending that businesses close, and you voluntarily comply, that’s a different story. (iii) The shutdown is caused by physical damage to your property. Is a viral outbreak “damage” to your property? There’s not a clear answer. On the one hand, courts have found that hazardous contamination of a building constitutes property damage to the building. For example, asbestos incorporated into a building constitutes property damage to the building under a commercial general liability policy. Environmental contamination can also constitute property damage to the contaminated property. Policyholders whose businesses close during an outbreak will argue that property contaminated by the virus satisfies the “physical damage to property” requirement. On the other hand, insurers may argue that the real cause of the shutdown is not the contaminated building surfaces, but the need for social distancing in a neighborhood with many contagious people. Coverage will depend on the policy language and the details of the shutdown. Reprinted courtesy of J. Kelby Van Patten, Payne & Fears and Jared De Jong, Payne & Fears Mr. Van may be contacted at kvp@paynefears.com Mr. Jong may be contacted at jdj@paynefears.com Read the court decision
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Once Again: Contract Terms Matter

May 11, 2020 — Christopher G. Hill - Construction Law Musings
I know, you’ve heard this over and over again here at Construction Law Musings: courts in Virginia will interpret a contract strictly and in a manner that gives meaning to its unambiguous terms. A recent case out of the Eastern District of Virginia federal court, White Oak Power Constructors v. Mitsubishi Hitachi Power Systems, reinforces this point. The basic facts of the case relevant to this discussion and the Court’s opinion are these. Old Dominion Electric Cooperative (ODEC) hired White Oak Power Constructors (White Oak) to build a natural gas power plant. The contract between ODEC and White Oak provided for liquidated damages for delay and also contained a risk of loss provision making ODEC responsible for certain losses or damages due to property damage at the plant. I highly recommend that you read the facts of the case in full to get the details of the terms of these clauses. Needless to say (or this case wouldn’t be the subject of a construction law blog), the project ran past completion date and liquidated damages were assessed to the tune of more than $50,000,000.00. The delay was alleged to have been caused in substantial part by property damage due to weather, fire, and ice among other causes. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Mediation v. Arbitration, Both Private Dispute Resolution but Very Different Sorts

January 24, 2018 — Christopher G. Hill - Construction Law Musings
I often get calls from clients, potential construction clients, and other construction and business professionals with questions about arbitration or mediation clauses in the contracts that they are reviewing or drafting. When I get these calls, it often becomes clear that, understandably, there is some confusion as to what each of these alternate dispute resolution processes entails. I thought I’d put together a quick primer on what each is and their differences. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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