English High Court Finds That Business-Interruption Insurance Can Cover COVID-19 Losses
November 02, 2020 —
Lorelie S. Masters, Scott P. DeVries, Patrick M. McDermott & Jorge R. Aviles - Hunton Insurance Recovery BlogIn a decision that will influence how policyholders and insurers around the world address business-interruption coverage for COVID-19 losses, the English High Court recently handed down its much-anticipated judgment in the “Test Case,” The Financial Conduct Authority (FCA) v. Arch et al. The High Court’s comprehensive analysis will likely serve as an additional tool in policyholders’ arsenal in the ongoing battles over COVID-19 coverage.
The Panel, composed of two well-respected judges, one from the High Court (the UK’s trial court) and the other from the English Court of Appeal, analyzed 21 sample policy wordings in coverage extensions for business-interruption losses due to disease or the issuance of public authority orders. (Many of these wordings are also found in policies sold to US policyholders.) The High Court found that the COVID-19 pandemic and ensuing government actions fell within the coverage provided by the sample policy wordings.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth,
Scott P. DeVries, Hunton Andrews Kurth,
Patrick M. McDermott, Hunton Andrews Kurth and
Jorge R. Aviles, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Mr. Aviles may be contacted at javiles@HuntonAK.com
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Helsinki is Building a Digital Twin of the City
May 20, 2019 —
Aarni Heiskanen - AEC BusinessThe capital of Finland first tested city modeling as long back as 1987. But the most recent model of the Kalasatama district demonstrates the new state-of-the-art possibilities of this technology: creation of a highly accurate digital twin of the city.
My hosts, Helsinki’s city modeling specialists Jarmo Suomisto and Enni Airaksinen, showed me their latest projects. One of them offered a glimpse of history through a lens of the future.
With 3D glasses on, I was able to experience the unrealized city plan made by Eliel Saarinen, the father of the world-renowned architect Eero Saarinen. The virtual model in question was a digitized version of a huge physical model from 1915. Being able to stroll the streets and fly over the roofs of the imagined city really made me understand how awesome the original design was. I had seen a scale model of this same plan while it was laid in the foyer of the Museum of Finnish Architecture many years ago, but this experience was quite different.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
CSLB Reminds California Public Works Contractors to Renew Their Public Works Registration
October 02, 2015 —
Garret Murai – California Construction Law BlogA friendly reminder from the Contractors State License Board . . .
CSLB Urges Public Works Contractors to Renew Dept. of Industrial Relations Registration before October 1 to Avoid Hefty Penalty
SACRAMENTO — A mandatory renewal deadline is approaching for licensees who work on public works projects. Contractors whose registration with the California Department of Industrial Relations (DIR) expired June 30, 2015, and have ongoing public works projects or plan to bid on new ones, must pay the $300 renewal fee
before October 1, 2015, or face an additional $2,000 late penalty after that date.
As a result of
Senate Bill (SB) 854, all contractors have been required since April 1, 2015, to register with DIR to be awarded a public works contract, even if the project did not go out to bid.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Eight Ways to Protect a Construction Company Before a Claim Is Filed
November 04, 2019 —
Mary Bacon - Construction ExecutiveClaims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers.
TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED
- Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
- Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
- Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.
Reprinted courtesy of
Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Bacon may be contacted at
mbacon@spencerfane.com
Federal Court Finds Occurrence for Faulty Workmanship Under Virginia Law
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe Federal District Court in Virginia found that allegations of faulty workmanship could arise from an occurrence. Nautilus Ins. Co. v. Strongwell Corp., 2013 U.S. Dist. LEXIS 79163 (W. D. Va. June 4, 2013).
Strongwell supplied certain fiberglass reinforced plastic materials to a subcontractor of Black & Veatch for a construction project at power plant. Black & Veatch subsequently sued Strongwell, claiming that numerous defects in Strongwell's materials and work were discovered after the project was completed. The complaint further alleged that as a result of the defects, there was widespread property damage to portions of the power plant.
Nautilus defended under a reservation of rights. Nautilus also filed suit for a declaratory judgment that to establish it had no duty to defend or indemnify Strongwell. Strongwell moved to dismiss the complaint insofar as it requested a declaration that there was no duty to defend. Strongwell also filed a motion to stay the coverage action until the underlying case was completed.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Colorado Senate Committee Approves Construction Defect Bill
March 19, 2015 —
Jesse Howard Witt – Acerbic WittLate last night, the Colorado Senate Business, Labor, and Technology Committee voted to refer
SB 15-177 to the committee of the whole. The vote followed nearly seven hours of testimony from those in favor of construction defect legislation and those opposed.
As I have
previously discussed, the bill sponsors have argued that their measure will encourage the construction of more affordable housing by giving builders de facto immunity for claims of defective workmanship and property damage in common interest communities. The bill achieves this by establishing difficult voting and disclosure requirements for homeowner associations and requiring costly, private arbitration of any disputes that can overcome the procedural hurdles. During the recent hearing, proponents echoed these statements and testified that insulating homebuilders from claims would lower home prices and rents by increasing the supply of cheaply-built condominiums.
Opponents questioned whether the bill contained any provisions that would actually help the affordable housing market. They also argued that it was improper for the legislature to shift the cost of fixing construction defects onto those homeowners who can least afford to pay for necessary repairs.
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Jesse Howard Witt, The Witt Law FirmMr. Witt welcomes comments at www.acerbicwitt.com
California Court Invokes Equity to Stretch Anti-Subrogation Rule Principles
June 18, 2019 —
Gus Sara & William L. Doerler - The Subrogation StrategistIn Western Heritage Ins. Co. v. Frances Todd, Inc. 2019 Cal. App. Lexis 299, the Court of Appeals of California, First Appellate District, addressed whether a commercial condominium association’s carrier could subrogate against the tenants (aka lessees) of one of its member unit owners. After examining the condominium association’s declarations, as well as the lease terms between the owner and the lessees, the court held that the association’s carrier could not subrogate against the lessees because they were implied co-insureds on the policy. To reach its decision, the court explained that an insurer steps into the shoes of its insured, not the party with whom it is in privity. Although the first-party property portion of the association’s insurance policy did not, as required by the association’s declarations, have the owner listed as an additional named insured, the court held that it would be inequitable to treat the association as the sole insured for purposes of determining Western Heritage’s right to bring a subrogation action.
In Western Heritage, William R. de Carion d/b/a Surfwood Properties (de Carion or Lessor), owned a commercial unit within a multi-unit commercial building. The building was managed by the East Shore Commercial Condominiums Owners’ Association (the Association). As a unit owner, de Carion was a member of the Association. The Association’s Declarations of Codes, Covenants and Restrictions (CC&Rs) required the Association to procure fire insurance for the commercial units by adding the unit owners as additional named insureds. The CC&Rs also prohibited owners and their “tenants” from procuring their own fire insurance policies for the premises. In 2013, de Carion leased his commercial space to Frances Todd, Inc. d/b/a The Wooden Duck, Eric Todd Gellerman and Amy Frances Feber (Lessees).
Reprinted courtesy of
Gus Sara, White and Williams LLP and
William L. Doerler, White and Williams LLP
Mr. Sara may be contacted at sarag@whiteandwilliams.com
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com
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Disgruntled Online Reviews of Attorney by Disgruntled Former Client Ordered Removed from Yelp.com
June 30, 2016 —
Renata L. Hoddinott & David W. Evans – Haight Brown & Bonesteel LLPThe Court of Appeal of the State of California – First Appellate District in Hassell v. Bird (6/7/16 – Case No. A143233) affirmed an order from a judgment in favor of an attorney and her firm and against a disgruntled former client directing non-party Yelp.com to remove defamatory reviews posted to its site.
Attorney Dawn Hassell (“Hassell”) filed suit against Ava Bird (“Bird”) arising out of Hassell’s brief legal representation. The attorney/client relationship lasted a total of 25 days after which Hassell withdrew from the representation because of difficulties communicating with Bird and Bird expressed dissatisfaction with Hassell. When legal representation terminated, Bird had 21 months before the expiration of the statute of limitations on her personal injury claim.
Reprinted courtesy of
Renata L. Hoddinott, Haight Brown & Bonesteel LLP and
David W. Evans, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
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