SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Insurer Must Defend Claims of Alleged Willful Coal Removal

June 21, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insured was entitled to a defense against claims for its alleged willful removal of coal from third parties' land. Liberty Mut. Fire Ins. Co. v. Bizzack Constr, 2017 U.S. Dist. LEXIS 70285 (W.D. Va. April 27, 2017). The Virginia Department of Transportation (VDOT) contracted with Bizzack to perform work in widening U.S. Route 460. VDOT notified coal owners that it had been "necessary to remove certain coal" from their land during the construction of Route 460. Some of the coal owners sued Bizzack, seeking compensation for lost coal. They alleged Bizzack had illegally removed and sold their coal, and "damaged the remaining coal in place on the property." Bizzack sought coverage from Liberty Mutual. Liberty Mutual filed suit seeking a declaration that it had no duty to defend or indemnify Bizzack. Cross-motions for summary judgment were filed. Liberty Mutual argued: (1) there was no "occurrence"; (2) exclusion j (5) applied; and (3) the "expected or intended injury" exclusion applied. 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

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Massachusetts Business Court Addresses Defense Cost Allocation and Non-Cumulation Provisions in Long-Tail Context

March 06, 2022 — Eric B. Hermanson & Austin D. Moody - White and Williams
A business court in Massachusetts has weighed in on two key issues affecting allocation of insurance coverage for long-tail liabilities in Massachusetts. Specifically, in Crosby Valve LLC et al. v. OneBeacon America Insurance Company, et al.,[1] involving asbestos bodily injury claims, Judge Kenneth Salinger of the Suffolk County Business Litigation Session addressed:

• whether defense costs in long-tail cases were subject to the same pro rata allocation scheme the Supreme Judicial Court (SJC) adopted to govern successively triggered insurers' indemnity obligations in Boston Gas Company v. Century Indemnity Company;[2] and
• whether “non-cumulation” provisions, like those addressed by the New York Court of Appeals in Matter of Viking Pump,[3] were consistent with this pro rata allocation methodology.

As to the first issue — i.e., allocation of defense costs — Judge Salinger declined to follow Boston Gas, and found the SJC’s holding in that case was limited to an insurers’ indemnity obligations. The SJC in Boston Gas had focused on the language of the policy insuring agreement, saying “[t]his policy applies to ... property damage ... which occurs anywhere during the policy period.” The SJC had also pointed to the policy definition of “occurrence” as “an accident, including injurious exposure to conditions, which results, during the policy period, in property damage neither expected nor intended from the standpoint of the insured.”[4] Reprinted courtesy of Eric B. Hermanson, White and Williams LLP and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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Couple Sues for Construction Defects in Manufactured Home

July 31, 2013 — CDJ STAFF
A West Virginia couple has sued the manufacturer of their home for construction defects and damage. Darrell and Teri Pearson claim that the home they purchased from Giles Industries was defective. They further claim that Kitchen’s Construction failed to set the home up properly and that the firm did not repair damaged sections of home. The suit also names the firm that sold the home and others. Read the court decision
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Melissa Dewey Brumback Invited Into Claims & Litigation Management Alliance Membership

October 14, 2013 — CDJ STAFF
Melissa Dewey Brumback has been invited to join the Claims & Litigation Management Alliance, an “invitation only” organization of insurance companies, litigation and risk managers, claims professionals, and attorneys. Ms. Brumback, an attorney at Ragsdale Ligget PPLC, has a practice that focuses on construction law and business disputes. Her clients include architects and engineers in construction-related claims. Ms. Brumbuck is respected as an author and lecturer on construction law. The Claims & Litigation Management Alliance comprises the leaders of claims and litigation management. Members are risk and litigation managers, insurance and claims professionals, and corporate and outside counsel. Read the court decision
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Supreme Court Opens Door for Challenges to Older Federal Regulations

August 05, 2024 — Jane C. Luxton - Lewis Brisbois
Washington, D.C. (July 1, 2024) – On July 1, 2024, the U.S. Supreme Court issued another end-of-term major decision limiting the scope of federal agency actions in Corner Post, Inc. v. Board of Governors of the Federal Reserve System. Adding to the tectonic shift in the regulatory landscape created by the Court’s June 27 and 28 rulings constraining the role of administrative law judges and overturning longstanding “Chevron deference” by courts to federal agency expertise, the decision in Corner Post establishes a newly expanded time frame for affected entities to challenge final agency action. Instead of confirming that final agency action is subject to a default six-year statute of limitations, the Court held that under the Administrative Procedure Act (APA), the time limit for appeal begins to run when a plaintiff is injured by the agency's action, not when the action becomes final. This decision has important implications for businesses and others affected by federal regulations. The case arose when Corner Post, a truck stop and convenience store in North Dakota that opened in 2018, challenged a 2011 Federal Reserve Board regulation (Regulation II) that set maximum interchange fees for debit card transactions. Corner Post filed suit in 2021, arguing that Regulation II allowed higher fees than permitted by statute. The lower courts dismissed the suit as time-barred under 28 U.S.C. § 2401(a), which effectively requires APA claims to be filed "within six years after the right of action first accrues." Read the court decision
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Reprinted courtesy of Jane C. Luxton, Lewis Brisbois
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com

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A New Study on Implementing Digital Visual Management

July 31, 2024 — Aarni Heiskanen - AEC Business
A new paper, “Implementing Digital Visual Management: A Case Study on Challenges and Barriers,” discusses situational management in complex infrastructure projects. It’s worth reading for anyone interested in improving project management with digital tools. A complex infrastructure project The authors interviewed nine project management professionals who worked for the client on constructing the western part of the Metro in Helsinki and Espoo, Finland. The project lasted eight years and had a budget of 1,200 million euros. The project used a Digital Visual Management (DVM) tool, and the paper discusses the challenges and barriers faced during the tool’s implementation. At the time of the study, the system was used to manage the final documentation and testing status. KPI management The project management team was involved in developing a system for combining collected data into a central dashboard and using it to manage the whole project. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Construction Managers, Are You Exposing Yourselves to Labor Law Liability?

February 22, 2021 — Timothy P. Welch - Hurwitz & Fine, P.C.
When dealing with construction site accidents, who a party is matters. Under Labor Law sections 200, 240(1) and 241(6) owners, contractors, and their agents have a non-delegable duty to provide reasonable and adequate protection to workers from risks inherent at work sites, with a specific emphasis placed on elevation-related hazards. Given the near strict liability nature of Labor Law section 240(1), it is critical to identify whether a party is a proper Labor Law defendant from the get-go. While identifying the owner (and usually the contractor) may be relatively straightforward, identifying “their agents” has proven to be a more complex undertaking. It should be noted that the requirements set forth in the Labor Law are non-delegable from the standpoint of the owner or contractor, however, the duties themselves can be assigned to “agents” of an owner or “agents” of a contractor. When such an assignment occurs, the same non-delegable duty held by the owner or contractor is imposed on the agents as well. Moreover, “once an entity becomes an agent under the Labor Law it cannot escape liability to an injured plaintiff by delegating the work to another entity.[1]” An entity that often skirts the line between being an agent and not, is the Construction Manager. Traditionally, the Construction Manager has been found to be outside the purview of the Labor Law when its scope of work is narrowly focused on scheduling and general coordination of the construction process. However, when a Construction Manager’s scope expands, so does its risk that it may, in fact, become a proper Labor Law defendant. Read the court decision
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Reprinted courtesy of Timothy P. Welch, Hurwitz & Fine, P.C.
Mr. Welch may be contacted at tpw@hurwitzfine.com

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Supreme Court of Canada Broadly Interprets Exception to Faulty Workmanship Exclusion

November 10, 2016 — C. Lily Schurra – Saxe Doernberger & Vita P.C.
In a recent policyholder-friendly decision, the Supreme Court of Canada found coverage under an exception to the faulty workmanship exclusion in an all-risk policy. The decision provided the insureds with millions to cover the cost of replacing the faulty work. Read the court decision
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Reprinted courtesy of C. Lily Schurra, Saxe Doernberger & Vita P.C.
Ms. Schurra may be reached at cls@sdvlaw.com

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