Deadlines. . . They’re Important. Project Owner Risks Losing Claim By Failing to Timely Identify “Doe” Defendant
December 21, 2020 —
Garret Murai - California Construction Law BlogEarlier this year I filed a complaint in a court which I won’t identify other than to say that it wasn’t the San Francisco Superior Court. Immediately upon filing the complaint the Court gave notice of a trial date. As counsel for the party bringing the action, I appreciate this, as it eliminates the back and forth jostling that can sometimes occur when trying to get a trial date.
Here’s the kicker though. While I appreciate getting a trial date straight out of the gate. The date I got was . . . wait for it . . . not until 2022!
Those who litigate in California state courts know that the courts are understaffed and overworked. But you’ve got to give this un-named court credit for being upfront. Forget the “well, let’s see where this goes” niceties. Trial within a year? Fugetaboutit. Trial within a year and a half. Don’t even think about it. Trial within two years. It’s about as good as you’re going to get.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Insured's Testimony On Expectation of Coverage Deemed Harmless
August 30, 2017 —
Tred R. Eyerly - Insurance Law HawaiiAffirming the district court, the Third Circuit found that the insured's testimony that she expected her loss to be covered was harmless. Gordon v .Allstate Prop. & Cas. Ins. Co., 2017 U.S. App. LEXIS 13507 (3rd Cir. July 26, 2017).
After a storm, portions of the stone facade of the insured's home collapsed. Allstate denied coverage because her policy was limited to "sudden and accident physical loss to the property" caused by a named peril, including windstorm. Allstate contended that the damage to the home was caused by neglect, not the storm.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
New Megablimp to Deliver to Remote Alaskan Construction Sites
January 13, 2017 —
Ryan W. Sternoff - Ahlers & Cressman PLLC BlogFor nearly 20 years, Lockheed Martin has been working on developing a “Hybrid Airship” that may transform the ability to construct facilities in remote project locations.[i]
On September 13, 2016, the Daily Journal of Commerce reported that the first of these “Hybrid Airships,” which can land in snow, ice, gravel, and water, are set to deliver from a facility operated by PRL Logistics in Kenai, Alaska, beginning in 2019.[ii] PRL will be operating the blimps in partnership with UK-based Straightline Aviation who placed the first order for the airships this year. According to PRL, the hope is that the airships will provide low cost solutions for moving freight in Alaska, where runways and roads are not always available. The helium-lifted behemoth blimps have space for 47,000 pounds of cargo and 18 passengers and cost about $40 million dollars.
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Ryan W. Sternoff, Ahlers & Cressman PLLCMr. Sternoff may be contacted at
rsternoff@ac-lawyers.com
Application of Efficient Proximate Cause Doctrine Supports Coverage
January 06, 2012 —
Tred R. Eyerly - Insurance Law HawaiiRelying on the efficient proximate cause doctrine, the court determined coverage potentially existed for damage caused by water. Union Sav. Bank v. Allstate Indem. Co., 2011 U.S. Dist. LEXIS 134398 (S.D. Ind. Nov. 21, 2011).
The Tods purchased property that was mortgaged by Union Savings. The Tods obtained a Landlords Policy for the property from Allstate. When the Tods were in default on their loan, Union Savings notified them that foreclosure proceedings would commence. Union Savings sent an appraiser to the property who discovered water in the basement. Water and electricity to the building were off. Union Savings notified Allstate and later filed a formal claim under the mortgagee clause in the Landlords Policy. This clause stated, "A covered loss will be payable to the mortgagees named on the policy declaration. . . ."
Allstate denied coverage, citing exclusions for water damage.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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No Coverage For Construction Defects When Complaint Alleges Contractual Damages
September 01, 2011 —
Tred R. Eyerly - Insurance Law HawaiiThe underlying plaintiff’s allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage.See Nat’l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).
Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.
Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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In Oregon Construction Defect Claims, “Contract Is (Still) King”
April 25, 2012 —
CDJ STAFFWriting in Oregon’s Daily Journal of Commerce, David Anderson looks at the aftermath of the case Abraham v. T. Henry Construction, Inc. In that case, Anderson notes that “the homeowners hired a contractor to build their house, and subsequently discovered extensive water damage” “after expiration of the time to sue for breach of contract.” The homeowners claimed negligence. Oregon’s Supreme Court concluded that “homeowners only had to prove that the contractor negligently caused reasonably foreseeable harm to the homeowner’s property.”
Anderson views this decision as leading to two risks for contractors. “First, contractors can be held liable in tort for breaching building code standards; second, they can be held liable for violating the often-difficult-to-define ‘reasonable care’ standard.” But here, “contract can be king.” The Oregon Supreme Court noted that the contractor “could have avoided exposure to the general ‘reasonable care’ standard by more carefully defining its obligations in the original construction contract.”
He notes that contractors who fail to define their obligations or use generic definitions “may be exposing themselves to a more vague scope of liability.”
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Saved By The Statute: The Economic Loss Doctrine Does Not Bar Claims Under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law
May 10, 2021 —
Gus Sara - The Subrogation StrategistIn Earl v. NVR, Inc., No. 20-2109, 2021 U.S. App. LEXIS 6451, the U.S. Court of Appeals for the Third Circuit (Third Circuit) considered whether, under Pennsylvania law, the plaintiff’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) claims against the builder of her home were barred by the economic loss doctrine. The UTPCPL is a Pennsylvania statute that prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” 73 Pa. Stat. Ann. § 201-3. The Third Circuit previously addressed the impact of the economic loss doctrine on UTPCPL claims in Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002). In Werwinski, the court held that the plaintiff’s UTPCPL claim was barred by the economic loss doctrine. The Court of Appeals overturned its decision in Werwinski and held that the economic loss doctrine does not bar UTPCPL claims since such claims are statutory, and not based in tort.
In Earl, the plaintiff, Lisa Earl, entered into an agreement with defendant NVR, Inc. (NVR) for the construction and sale of a home in Allegheny County, Pennsylvania. Ms. Earl learned of the home through NVR’s marketing, which described the home as containing “quality architecture, timeless design, and beautiful finishes.” Ms. Earl alleged that during the construction of the home, she had further discussions with agents of NVR, who made representations that the home would be constructed in a good and workmanlike manner and that any deficiencies noted by Ms. Earl would be remedied. The defendant also assured Ms. Earl that the home would be constructed in accordance with relevant building codes and industry standards. After moving into the home, Ms. Earl discovered several material defects in the construction. She provided notice of these defects to NVR, but NVR’s attempts to repair some of the defects were inadequate.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
#2 CDJ Topic: Valley Crest Landscape v. Mission Pools
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFIn July of this year,
Christopher Kendrick and
Valerie A. Moore of
Haight Brown & Bonesteel LLP analyzed the results of the Valley Crest Landscape v. Mission Pools case, in which “a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to defend and indemnify claims arising out of its performance of work under the subcontract.”
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In the article, “General Liability Insurer Entitled to Subrogate Against its Insured’s Indemnitor,”
Matthew S. Foy and
Michael A. Pursell of
Gordon & Rees LLP also discussed the details of the Valley Crest v. Mission Pools case that involved installing a swimming pool on a St. Regis hotel property: “In Valley Crest Landscape Development, Inc. v. Mission Pools of Escondido, Inc., the California Court of Appeal for the Fourth Appellate District held that an insurer was entitled to equitably subrogate a breach of express indemnity claim against its insured’s indemnitor.”
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This month,
Graham C. Mills of
Newmeyer & Dillion reported on the decision by the Court of Appeals regarding the Valley Crest case, which “reinforces the right of a general contractor to defense and indemnity by a subcontractor when the parties have contractually allocated risk to the subcontractor. To ensure compliance with that right, the Valley Crest court imposed a strong penalty against a subcontractor that defaulted on its obligation.”
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