COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay

August 20, 2019 — Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLP
On May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim, demand or suit.” C.M.S. Investment Ventures, Inc. v. American European Insurance Company, No. A-2056-17T3, 2019 N.J. Super. Unpub. LEXIS 1215, at *8-9 (N.J. Super. Ct. App. Div. May 28, 2019) (CMS). The CMS case is also notable because the Appellate Division held that a 20-month delay in disclaiming coverage was unreasonable and therefore warranted estoppel. In CMS, the insured was allegedly warned by its tenant about a faulty ground-floor window that failed to lock properly. Afterward, an intruder broke into the tenant’s apartment and sexually assaulted the tenant, who sued the insured on a premises liability claim. Before she filed suit, the tenant sought payment from the insured’s CGL insurer directly. The insurer denied coverage based on the assault-and-battery exclusion and closed the file, but never informed the insured. Later, the tenant sued the insured, which sought a defense and indemnity from its insurer, which again denied coverage based on the exclusion. The insured then sought a declaration of coverage on grounds that the exclusion was ambiguous, and the insurer “was estopped from denying coverage, because it waited [20] months to inform CMS of its coverage decision.” The trial court ruled in the insured’s favor which led to the appeal in CMS. Reprinted courtesy of Timothy Carroll, White and Williams LLP and Anthony Miscioscia, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Read the court decision
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Sweet News for Yum Yum Donuts: Lost Goodwill is Not an All or Nothing Proposition

October 07, 2019 — Josh Cohen - California Construction Law Blog
Last month a California Court of Appeals clarified that a property owner facing eminent domain is only required to prove partial loss of goodwill, not total loss of goodwill, to be entitled to a trial on the amount of goodwill lost. Yum Yum Donuts operated a shop in Los Angeles that was subject to eminent domain by the Los Angeles Metropolitan Transportation Authority (MTA) to make way for light railway track. At trial, Yum Yum sought loss of goodwill as part of its condemnation damages under Code of Civil Procedure section 1263.510. At trial the MTA’s expert testified that Yum Yum could have reduced its goodwill loss if it relocated to one of three alternative locations rather than simply closing the shop. But the expert conceded that even if Yum Yum had relocated, it would have lost some goodwill. Yum Yum refused to relocate, arguing that its relocation costs would render the move unprofitable. The trial court found that Yum Yum’s failure to mitigate its damages barred Yum Yum from having a jury trial to recover any goodwill damages. Read the court decision
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Reprinted courtesy of Josh Cohen, Wendel, Rosen, Black & Dean LLP
Mr. Cohen may be contacted at jcohen@wendel.com

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A Chicago Skyscraper Cements the Legacy of a Visionary Postmodern Architect

December 31, 2024 — Mark Byrnes - Bloomberg
A handsome and eclectic stretch of buildings along Michigan Avenue known as “Chicago’s Front Door” offers a view that reflects the city’s status as a destination for serious architecture. Louis Sullivan and Dankmar Adler’s Auditorium Building, where a young Frank Lloyd Wright designed interiors, is right there on Grant Park; so is Daniel Burnham’s Railway Exchange, where he drew up the 1909 Plan of Chicago. Now a glass-and-aluminum apartment tower anchors the southern end of this scene, filling in a rare gap within this landmarked streetwall and putting a bow on the career of another heroic figure in Chicago’s architectural history: Helmut Jahn. Read the court decision
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Reprinted courtesy of Mark Byrnes, Bloomberg

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Will European Insurers’ Positive Response to COVID-19 Claims Influence US Insurers?

August 10, 2020 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
Last month we wrote a piece concerning AXA’s agreement to pay COVID-19 related business interruption claims by a group of restaurants in France after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under its insurance policies. AXA reportedly has already agreed to pay over 200 COVID-19 related claims. Another European insurer recently made headlines for similar reasons. Despite initially denying liability, Swiss insurance company, Helvetia Insurance, announced that most of its policyholders in the hospitality industry have accepted settlements following coverage disputes for COVID-19 related business interruption losses. The settlements reportedly included policyholders from Switzerland, Austria, and Germany. The positive response from the European insurers appears to have influenced the insurance industry across the continent. For instance, in the U.K., the Financial Conduct Authority announced that it is taking certain insurers to court to seek clarity as to coverage for COVID-19 related losses. In Germany, the government and a group of insurers reached an agreement whereby the government will pay for 70% of business interruption losses for policyholders in the hospitality industry, and the insurers will pay for half of the business interruption losses not covered by the government. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Avoid the Headache – Submit the Sworn Proof of Loss to Property Insurer

October 12, 2020 — David Adelstein - Florida Construction Legal Updates
Property insurance policies (first party insurance policies) contain post-loss obligations that an insured must (and should) comply with otherwise they risk forfeiting insurance coverage. One post-loss obligation is the insurer’s right to request the insured to submit a sworn proof of loss. Not complying with a post-loss obligation such as submitting a sworn proof of loss can lead to unnecessary headaches for the insured. Most of the times the headache can be avoided. Even with a sworn proof of loss, there is a way to disclaim the finality of damages and amounts included by couching information as estimates or by affirming that the final and complete loss is still unknown while you work with an adjuster to quantify the loss. The point is, ignoring the obligation altogether will result in a headache that you will have to deal with down the road because the property insurer will use it against you and is a headache that is easily avoidable. And, it will result in an added burden to you, as the insured, to demonstrate the failure to comply did not actually cause any prejudice to the insurer. By way of example, in Prem v. Universal Property & Casualty Ins. Co., 45 Fla. L. Weekly D2044a (Fla. 3d DCA 2020), the insured notified their property insurer of a plumbing leak in the bathroom. The insurer requested for the insured to submit a sworn proof of loss per the terms of the insured’s property insurance policy. The insurer follow-up with its request for a sworn proof of loss on a few occasions. None was provided and the insured filed a lawsuit without ever furnishing a sworn proof of loss. The insurer moved for summary judgment due the insured’s failure to comply with the post-loss obligations, specifically by not submitting a sworn proof of loss, and the trial court granted the insurer’s motion. Even at the time of the summary judgment hearing, the insured still did not submit a sworn proof of loss. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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No Additional Insured Coverage Under Umbrella Policy

March 12, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The additional insured was not covered under a property policy for an injury occurring after work was completed. Lewark v. Davis Door Servs., 2014 Wash. App. LEXIS 341 (Wash. Ct. App. Feb. 10, 2014). Public Storage, Inc. hired Davis Door Service Inc. to perform work at its facilities. The master agreement required Davis Door to maintain a CGL policy that insured Public Storage "during the entire progress of the work." Davis Door secured a CGL policy with American Economy. It also took out an umbrella liability policy with American States. After Davis Door completed work on a door, Terrie Lewark injury her back opening the door. She sued Public Storage and Davis Door. Lewar and Public Storage settled. Public Storage assigned to Lewark its rights under the umbrella policy with American States. Lewark then sued Davis Door and American States. The trial court found that Public Storage was not an additional insured under the American States umbrella policy. 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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Connecticut Federal District Court Follows Majority Rule on Insurance Policy Anti-Assignment Clauses

March 20, 2023 — Saxe Doernberger & Vita, P.C.
A recent decision by the United States District Court for the District of Connecticut further confirms that Connecticut courts follow the majority rule that contractual anti-assignment clauses do not bar assignment of an insured’s claim after the loss occurred.1 The September 2022 decision in Am. Guarantee & Liability Ins. Co. v. 51 Roses Mill LLC arose out of a fire that destroyed a property under contract for sale. At the time of the fire, the property was owned by Bridge33 Capital LLC (“Bridge33”), insured by American Guarantee & Liability Insurance Company (“American Guarantee”), and under contract for sale to 51 Roses Mill LLC (“51 Roses”). After the fire, Bridge33 assigned its insurance claim to 51 Roses. American Guarantee filed suit seeking a declaratory judgment that the assignment was invalid, or that, if it was valid, 51 Roses could only recover under the actual cash value, rather than the replacement cost value, of the lost property. 51 Roses brought counterclaims for breach of contract and bad faith and sought a declaratory judgment that it was entitled to replacement cost value under the policy. Read the court decision
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Reprinted courtesy of Saxe Doernberger & Vita, P.C.
Saxe Doernberger & Vita, P.C. may be contacted at coverage@sdvlaw.com

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Canada's Ex-Attorney General Set to Testify About SNC-Lavalin Scandal

April 03, 2019 — Associated Press - Engineering News-Record
TORONTO (AP) — Canada's former attorney general is expected to testify Wednesday about whether she was inappropriately pressured by Prime Minister Justin Trudeau's office to avoid prosecuting a major Canadian engineering company. Ex-Attorney General Jody Wilson-Raybould has said she wants to tell "her truth" and she will speak at a hearing of the Parliament justice committee. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

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