Texas Supreme Court Holds Anadarko’s $100M Deepwater Horizon Defense Costs Are Not Subject To Joint Venture Liability Limits
February 27, 2019 —
Sergio F. Oehninger & Michael S. Levine - Hunton Andrews KurthReversing a Texas Court of Appeals decision that allowed Anadarko’s Lloyd’s of London excess insurers to escape coverage for more than $100 million in defense costs incurred in connection with claims from the Deepwater Horizon well blowout, the Supreme Court of Texas held that the insurers’ obligations to pay defense costs under an “energy package” liability policy are not capped by a joint venture coverage limit for “liability” insured. Anadarko Petroleum Corp. et al. v. Houston Casualty Co. et al., No. 16-1013 (Tex. Jan. 25, 2019).
While the Lloyd’s of London insurers had agreed to pay Anadarko $37.5 million for damages, they declined to cover $100 million-plus in defense fees, arguing that both Anadarko’s liability and defense expenses are subject to the $37.5 million joint venture limit for “liability” insured. Anadarko asserted that only amounts paid as damages to third parties are subject to that limit. Defense costs, however, are not amounts paid as damages to a third party and, thus, are not a “liability.” Those amounts, therefore, are not subject to the joint venture limit and are instead subject to the policy’s $150 million coverage limit.
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Blackstone Suffers Court Setback in Irish Real Estate Drama
August 20, 2014 —
Donal Griffin and Dara Doyle – BloombergAt 11:15 a.m. on July 29, Irish property developer Michael O’Flynn realized that Blackstone Group LP (BX) was trying to gain control of his real estate empire, which includes the country’s tallest residential tower.
Ten weeks earlier, the private equity firm had bought 1.8 billion euros ($2.4 billion) of loans to O’Flynn’s companies and the developer personally. Coming out of a meeting, he learned Blackstone was demanding the immediate repayment of 16 million euros of personal loans secured on his shareholdings -- even though he wasn’t in default. By the end of the day he had lost control of the business he’d spent more than 30 years building.
“I was shocked that they’d made this demand,” O’Flynn, 57, said in an interview. “It took time to understand the gravity of it because I’ve never been served with a demand in my 36 years of business. I was very recently transferred to Blackstone and I was doing my damnedest to work with them.”
Mr. Doyle may be contacted at ddoyle1@bloomberg.net; Mr. Griffin may be contacted at dgriffin10@bloomberg.net
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Donal Griffin and Dara Doyle, Bloomberg
Strategic Communication Considerations for Contractors Regarding COVID-19
April 06, 2020 —
Sarah Skidmore - Construction ExecutiveThe COVID-19 is a worldwide wildcard. Around the globe, organizations are forced to communicate with a wide variety of audiences. Audiences range from employees to customers and vendors—and more. A pandemic of this nature is new for the modern globalized workforce. Societies realize the breadth of international influence involved in a single supply chain now more than ever before. Domestically based organizations realize their place in the larger global system—and the construction industry is a perfect example.
Here are key questions for leaders to ponder.
1. Who are your audience groups?
In a wildcard situation, organizations are often tasked with communicating to many different audience groups and stakeholders. So, take some time to think beyond the groups that come top-of-mind such as customers, vendors, partners and owners.
- Does the organization have any community-based events on the calendar?
- Does the organization have professional development sessions on the calendar?
- Does the organization have planned maintenance or facilities work scheduled with third parties?
- Does the organization have interns or apprenticeship programs with local colleges?
Reprinted courtesy of
Sarah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Skidmore may be contacted at
sarah@skidmore-consulting.com
California MCLE Seminar at BHA Sacramento July 11th
June 11, 2014 —
Kimberly Albarq-CDJ STAFFThere are just three weeks remaining to sign up for Bert L. Howe & Associate’s next California MCLE seminar, UNDERSTANDING CONSTRUCTION DEFECT LITIGATION.
This activity will be presented on Friday, July 11th at noon, at BHA’s Sacramento office:
2520 Venture Oaks Way
Suite 435
Sacramento, CA 95833
There is no cost for attendance at this seminar and lunch will be provided.
This course has been approved for Minimum Continuing Legal Education credit by the State Bar of California Committee on MCLE in the amount of 1.0 credit hours, of which 0.0 credit hours will apply to legal ethics/professional responsibility credit. The seminar will be presented by Don MacGregor, general contractor and project manager.
Water intrusion through doors, windows and roofing systems, as well as soil and foundation-related movement, and the resultant damage associated therewith, are the triggering effects for the vast majority of homeowner complaints today and serve as the basis for most residential construction defect litigation. The graphic and animation-supported workshop/lecture activity will focus on the residential construction process from site preparation through occupancy, an examination of associated damages most often encountered when investigating construction defect claims, and the inter-relationships between the developer, general contractor, sub trades and design professionals. Typical plaintiff homeowner/HOA expert allegations will be examined in connection with those building components most frequently associated with construction defect and claims litigation.
The workshop will examine:
* Typical construction materials, and terminology associated with residential construction
* The installation process and sequencing of major construction elements, including interrelationship with other building assemblies
* The parties (subcontractors) typically associated with major construction assemblies and components
* An analysis of exposure/allocation to responsible parties.
Attendance at THE UNDERSTANDING CONSTRUCTION DEFECT LITIGATION seminar will provide the attendee with:
* A greater understanding of the terms and conditions encountered when dealing with common construction defect issues
* A greater understanding of contractual scopes of work encountered when reviewing construction contract documents
* The ability to identify, both quickly and accurately, potentially responsible parties
* An understanding of damages most often associated with construction defects, as well as a greater ability to identify conditions triggering coverage
To register for the event, please email Don MacGregor at dmac@berthowe.com. If you have any questions, please feel free to contact Don at (800) 482-1822 (office) or (714) 713-4956 (cell).
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No Coverage for Breach of Contract Claims Against Contractor
March 19, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe U. S. District Court found there was no coverage for breach of contract claims against the contractor who walked off the job before completing the project. Pa. Nat'l Mut. Cas. Ins. Co. v. Snider, 2014 U.S. Dist. LEXIS 16920 (M.D. Ala. Feb. 11, 2014).
The homeowners hired Jeff Beale to build their home for an approximate cost of $650,000. Beale said the job would take six to eight months and construction would be completed in early 2005. Construction did not begin, however, until April 2005. By 2005, the homeowners were becoming increasing displeased with Beale's progress. By March 2006, construction costs were approaching $800,000 and the home was not completed. The homeowners made progress payments on a monthly basis. Beale did not return to the home after April 2006 and another contractor was hired to complete the job.
When the homeowners moved in, they discovered several construction defects, including a cracked retaining wall and water intrusion in many areas of the home. They paid over $150,000 to repair the defects, to complete work Beale left unfinished, and remove mold.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Damages or Injury “Likely to Occur” or “Imminent” May No Longer Trigger Insurance Coverage
January 05, 2017 —
Masaki J. Yamada – Ahlers & Cressman PLLCWashington Courts allow an insurer to determine its duty to defend an insured against a lawsuit based only on the face of the complaint and the limitations of the insurance policy. This is otherwise known as the “eight corners” rule (four corners of the complaint plus the four corners of the policy). In other words, the insurance company is not permitted to rely on facts extrinsic to the complaint in order to deny its duty to defend an insured. See Truck Ins. Exch. v. VanPort Homes, Inc., 147 Wn.2d 751, 763 (2002). The laws in Washington provide greater protection to the insured over the insurer when it comes to the insurer’s duty to defend. The duty to defend a claim is triggered if a claim could “conceivably” be covered under the policy. See Woo v. Fireman’s Insurance, 161 Wn.2d 43 (2007). If there is any ambiguity in a policy with regard to coverage, the ambiguity is interpreted in favor of the insured.
As a result, contractors in Washington regularly tender claims or potential claims to their insurers even when damage has not occurred but will occur in the imminent future. Especially in the context of construction defect cases, a contractor will tender such a claim to its insurer to trigger the broad duty of the insurer to provide a defense. We also regularly recommend this to our contractor clients. For example, if a building owner serves a contractor with a claim that the construction and installation of a window system will imminently cause leaks and corrosion, we would recommend that the contractor tender the claim to its commercial general liability insurer. Washington courts have found a duty to defend when there are allegations in the complaint that covered damages will occur in the imminent future.
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Masaki J. Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
Real Estate & Construction News Roundup (10/23/24) – Construction Backlog Rebounds, Real Estate Sustainability Grows, and Split Incentive Gap Remains Building Decarbonizing Barrier
November 18, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, construction output decreased, office utilization unchanged, September apartment starts fell 15% from a year ago as developers pulled permits, and more!
- Developers pulled permits for a seasonally adjusted rate of 398,000 apartments in buildings with five units or more, a 17.4% YOY drop and a 10.8% decrease compared to August 2024. (Leslie Shaver, Multifamily Dive)
- Construction input prices decreased 0.9% in September due to dips in two of three energy subcategories, reflecting the trend of overall material price stabilization over the past 12 months. (Sebastian Obando, Construction Dive)
- Thanks in part to the Federal Reserve’s lowering of the interest rate, construction backlog rebounded in September after slumping at the end of the summer. (Joe Bousquin, Construction Dive)
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Pillsbury's Construction & Real Estate Law Team
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Annual Construction Defect Seminar
December 04, 2013 —
CDJ STAFF
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Jointly Present the 2013 Construction Defect Seminar and Holiday Party to be Held Thursday, December 5, at the Hilton Hotel, Costa Mesa
Professional development activities will include panel discussions including “What Happened to Simple HOA Actions – Litigating Commercial Projects,” a roundtable discussion by Ross Hart, Keith Koeller, Alex Robertson, Les Robertson, Todd Schweitzer, Wendy Wilcox, and Brian D. Kahn. A timely discussion of California’s “right to repair” laws “SB800 – Is It Still Worth Fighting For?,” will be presented by Nick Cammarota, Timothy Earl, Luke Ryan, Dave Simons, Dave Stern, John Terry, and Adrienne Cohen is also on the the agenda.. Additionally, Assemblyman Donald P. Wagner will serve as the event’s Special Guest Speaker.
Bert L. Howe & Associates, Inc. is pleased to return this year as an event sponsor. BHA will be exhibiting our latest inspection data collection system and forensic analysis platforms newly optimized for the new iOS 7. Visitors of the BHA exhibit booth can enter into our drawing for a 16 GB iPad Air with WiFi.
Professional development activities will be followed by a holiday party and reception honoring the Orange County Judiciary. The reception will be hosted by Glenn Barger, Adrienne Cohen, and Brian Kahn. It will place from 5:30 p.m. through 7.00 p.m.
For further information for the event, please visit http://www.ascdc.org/Events.asp.
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