Cambridge Massachusetts Building Expert Directory

Hawaii Federal District Court Rejects Bad Faith Claim

November 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court for the district of Hawaii rejected the insured's argument that the insurer acted in bad faith because the insured had to contribute to a settlement of the underlying case. Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 146114 (D. Haw. Oct. 21, 2016). After a prior round of briefing, the court determined that Hanover had a duty to defend, but rejected Anova's claim for pre-tender fees. 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

Third Circuit Affirms Use of Eminent Domain by Natural Gas Pipeline

November 28, 2018 — Anthony B. Cavender - Gravel2Gavel
On October 30, the U.S. Court of Appeals for the Third Circuit decided the case of Transcontinental Gas Pipe Line Co., LLC v. Permanent Easements for 2.14 Acres, et al. , affirming the District Court’s grant of a preliminary injunction to Transcontinental Gas Pipe Line Company, LLC (Transcontinental). This case involves the construction of the “Atlantic Sunrise Expansion Project,” a natural gas pipeline that runs through Pennsylvania, Maryland, Virginia, North Carolina and South Carolina. Under the Natural Gas Act (NGA), pipeline companies can exercise powers of eminent domain when they are acting in the public interest. The Third Circuit cautions that this is a “standard” eminent domain power, and not a “quick take” that is permitted under another statute. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Deescalating Hyper Escalation

July 05, 2023 — Paul F. Williamson - Construction Executive
Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present. Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained. Reprinted courtesy of Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Montana Significantly Revises Its Product Liability Laws

May 22, 2023 — William L. Doerler - The Subrogation Strategist
On May 4, 2023, Montana changed its product liability laws when the Governor signed SB 216, which was effective upon passage and applies to claims that accrue on or after May 4, 2023. Among the changes is the adoption of a sealed container defense and the application of comparative negligence principles in strict liability actions. Montana also adopted a defense based on certain actions not being brought within 10 years. In addition, Montana adopted a rebuttable presumption with respect to a product’s defective condition. A jury must be informed about this rebuttable presumption with respect to certain warnings claims, premarket licensing procedures or claims involving drugs and/or medical devices. The changes to the Montana Code are further described below.

In situations where there are multiple defendants, a defendant in a strict liability or breach of warranty action may now assert, as a defense, that the damages of the claimant were caused in full or in part by a person with whom the claimant has settled or released from liability. See MCA § 27-1-703(6)(a) (as revised). Comparative negligence or fault defenses are also available in actions against sellers, even where there are not multiple defendants. See MCA § 27-1-719(4)(e) (discussing a seller’s defenses in situations other than multiple defendant situations) (as revised).

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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Pennsylvania Court Finds that Two Possible Causes Can Prove a Product Malfunction Theory of Liability

September 29, 2021 — Gus Sara - The Subrogation Strategist
In Allstate Ins. Co. v. LG Elecs. USA, Inc., No. 19-3529, 2021 U.S. Dist. LEXIS 127014, the United States District Court for the Eastern District of Pennsylvania considered whether plaintiff’s expert engineer’s opinion that there were two possible causes of a fire—both related to alleged product defects within a refrigerator manufactured by the defendant—was sufficient to support the malfunction theory of products liability. The court found that because both potential causes imposed liability on the product manufacturer and the expert ruled out misuse of the product, as well as all external causes of the fire, it was not necessary for the engineer to identify a specific cause under the malfunction theory. The court also found that the expert’s investigation and opinions met the criteria set forth in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993) and the Federal Rules of Evidence and, thus, were admissible. LG Electronics arose from a fire at the home of Thomas and Lisa Ellis. The public sector fire investigator identified the area of fire origin as the top of a refrigerator manufactured by LG Electronics USA, Inc. (LG). The Ellises filed a claim with their homeowner’s insurance carrier, Allstate Insurance Company (Insurer). Insurer retained a fire investigator and an electrical engineer to investigate the origin and cause of the fire. The fire investigator agreed with the public sector investigator that the fire originated at the top of the refrigerator. The engineer conducted a forensic inspection of the scene and ruled out all potential external ignition sources. He then examined the internal components of the refrigerator. He found arcing activity on a wire at the front top of the refrigerator. He opined that there were two possible causes of the fire: either the heater circuit insulation failed over time due to mechanical damage, or the heat from the internal light fixture ignited combustible components of the refrigerator. Since the engineer ruled out improper use of the refrigerator, he opined that the damage was caused by a manufacturing defect. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Modification: Exceptions to Privette Doctrine Do Not Apply Where There is No Evidence a General Contractor Affirmatively Contributed to the Injuries of an Independent Contractor’s Employee

November 23, 2016 — Renata L. Hoddinott & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP
In a case which was the subject of our Alert dated October 31, 2016 (click here for prior alert), the Court of Appeal of the State of California – Second Appellate District on November 17, 2016 issued a modification to the opinion in Khosh v. Staples Construction Company, Inc. (10/26/16 – Case No. B268937) with no change in judgment. In Khosh, the Court affirmed the trial court’s granting of summary judgment in favor of the defendant under the Privette doctrine where plaintiff presented no evidence that the defendant affirmatively contributed to his injuries. Reprinted courtesy of Renata L. Hoddinott, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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California Supreme Court Finds Negligent Supervision Claim Alleges An Occurrence

July 21, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Answering a question posed by the Ninth Circuit, the California Supreme Court found that a suit against a employer for negligent hiring, retention and supervision of a employee who intentionally injures a third party alleges an occurrence under a CGL policy. Liberty Surplus Co. Corp. v. Ledesma & Meyer Construction Co., 2018 Cal. LEXIS 4063 (Cal. June 4, 2018) Ledesma & Meyer Construction Company (L&M) contracted with the school district to manage a construction project at a middle school. L&M hired Darold Hecht as an assistant superintendent on the project. In 2010, Jane Doe, a 13-year-old student at the school, sued alleging that Hecht had sexually abused her. Doe’s claims included a cause of action against L&M for negligent hiring, retaining, and supervising Hecht. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

California Clarifies Its Inverse Condemnation Standard

December 30, 2019 — Gus Sara - The Subrogation Strategist
In City of Oroville v. Superior Court, 446 P.3d 304 (Cal. 2019), the Supreme Court of California considered whether the City of Oroville (City) was liable to a dental practice for inverse condemnation damages associated with a sewer backup. The court held that in order to establish inverse condemnation against a public entity, a property owner must show that an inherent risk in the public improvement was a substantial cause of the damage. Since the dental practice did not have a code-required backwater valve — which would have prevented or minimized this loss — the court found that the city was not liable because the sewage system was not a substantial cause of the loss. This case establishes that a claim for inverse condemnation requires a showing of a substantial causal connection between the public improvement and the property damage. It also suggests that comparative negligence can be a defense to inverse condemnation claims. In December 2009, a dental practice, WGS Dental Complex (WGS), located in the City, incurred significant water damage as a result of untreated sewage from the City’s sewer main backing up into WGS’ building. WGS submitted a claim to its insurance carrier, The Dentists Insurance Company (TDIC) and, in addition, sued the City for its uninsured losses, alleging inverse condemnation and nuisance. TDIC joined the litigation, alleging negligence, nuisance, trespass and inverse condemnation. Under California law, when a government entity fails to recognize that an action or circumstance essentially amounts to a taking for public use, a property owner can pursue an inverse condemnation action for compensation. The City filed a cross-complaint against WGS for failing to install a code-required backwater valve on their lateral sewer line, which would have prevented or minimized the backup. The City filed a motion for summary judgment, which the trial court denied. WGS then sought a judicial determination on the issue of inverse condemnation. The City presented evidence that the sewage system was designed in accordance with industry standards, and that WGS failed to comply with the City’s plumbing code by failing to install a backwater valve on its private sewer lateral. The trial court found the City liable for inverse condemnation because the blockage that caused the backup originated in the City’s sewer line. The court held that the blockage was an inherent risk of sewer operation. The Court of Appeals affirmed the decision, holding that the City would have had to prove that the WGS’s lack of a backwater valve was the sole cause of the loss in order to absolve itself of liability. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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