Rancosky Adopts Terletsky: Pennsylvania Supreme Court Sets Standard for Statutory Bad Faith Claims
September 28, 2017 —
John Anooshian & Sean Mahoney - White & Williams LLPEarlier today, in a case of first impression, the Pennsylvania Supreme Court adopted the Terletsky two-part test for proving a statutory “bad faith” claim under 42 Pa. C.S.A. § 8371, which requires that a plaintiff present “clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington National Insurance Company, No. 28 WAP 2016 (Pa. Sept. 28, 2017). The court further ruled that proof of an insurer’s “subjective motive of self-interest or ill-will,” while potentially probative of the second prong of the test, is not a requirement to prevail under § 8371. Evidence of an insurer’s “knowledge or reckless disregard for its lack of a reasonable basis” for denying a claim alone, according to the court, is sufficient even in cases seeking punitive damages.
Reprinted courtesy of
John Anooshian, Saxe Doernberger & Vita, P.C. and
Sean Mahoney, Saxe Doernberger & Vita, P.C.
Mr. Anooshian may be contacted at anooshianj@whiteandwilliams.com
Mr. Mahoney may be contacted at majoneys@whiteandwilliams.com
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2017 Legislative Changes Affecting the Construction Industry
July 13, 2017 —
Melinda S. Gentile – Peckar & Abramson, P.C.The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor.
Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017.
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Melinda S. Gentile, Peckar & Abramson, P.C.Ms. Gentile may be contacted at
mgentile@pecklaw.com
Homeowners Sued for Failing to Disclose Defects
December 30, 2013 —
CDJ STAFFThe Madison-St. Clair Record reports that a Wisconsin homeowner has sued the former owners of her home, alleging that they failed to disclose a defect. According to the lawsuit, David and Doris Stephens informed Jennifer Davies that a basement window well had previously leaked, but that the problem had been fixed and not recurred in three years. Ms. Davies had problems with the leaks after she moved in.
And while the window was the only defect the Stepehenses reported, Ms. Davies found problems with the home’s heating and air conditioning as well. Though she paid only $112,000 for the home, Ms. Davies is suing for $400,000 for the repairs, loss of property value, and the court fees.
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What Construction Contractors Should Know About the California Government Claims Act
May 28, 2024 —
Garret Murai - California Construction Law BlogIf you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity.
What types of claims does the Government Claims Act apply to?
The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Electronic Signatures On Contracts: Are They Truly Compliant?
April 10, 2023 —
Rebecca S. Glos - ConsensusDocsElectronic Signatures On Contracts: Are They Truly Compliant
As companies move to work-from-home situations in the wake of the COVID-19 pandemic, the issue of whether electronic signatures are legally recognized becomes more relevant. For many platforms, an electronic signature merely requires logging in, clicking a button, or typing your name. This process, which replaces the mighty pen and quill, is so effortless that oftentimes an electronic signature may feel like it does not carry the same weight as a handwritten signature. Thus, the question that we should be asking ourselves is whether the law recognizes this type of signature as being valid? Additionally, if electronic signatures are, indeed, valid, are there exceptions on whether they can be used?
Difference Between “Electronic” And “Digital” Signatures
Before delving into this issue, an understanding of some related terms may be helpful. In basic terms, an electronic signature (or “e-signature”) is any signature created or captured through a computer or other electronic device. Electronic signatures can include touch-sensitive screens where you use your finger or a stylus to sign your name as you would on a paper document. Electronic signatures can also include forms where you merely type in your name and perhaps other identifying information, then check a box stating that you intend to sign the document. They cover the full range of technologies and solutions to create signatures electronically such as:
- Clicking “I Agree” on a website;
- Signing with your finger on a mobile device;
- Typing your name or PIN into an online form; or
- Using e-signature software
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Rebecca S. Glos, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)Ms. Glos may be contacted at
rglos@watttieder.com
Fence Attached to Building Covered Under Dwelling Provisions
March 01, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Texas Supreme Court determined that a damaged fence attached to the insureds' dwelling was covered under the dwelling provisions, not the "other structure" portion of the policy. Nassar v. Liberty Mutual Fire Ins. Co., 2017 Tex. LEXIS 113 (Tex. Jan. 27 ,2017).
The insureds' owned six acres of property. Hurricane Ike caused significant damage to the property on September 13, 2008. The insureds submitted a claim to Liberty Mutual under their homeowners' policy. Liberty Mutual paid several claims, but disputes arose over the value of various items of damaged property, including the fencing on the property. The insured's fencing spanned over 4,000 linear feet, including a white picket fence at the northeast corner of the dwelling, an ornamental iron fence in front of the dwelling, numerous cross fences, garden fences, and a larger, perimeter fence.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Vallagio v. Metropolitan Homes: Colorado Supreme Court Upholds Declarant Consent Provision to Amend Arbitration Out of Declarations
June 15, 2017 —
Jean Meyer - Colorado Construction LitigationOn June 5, 2017, the Colorado Supreme Court announced the Vallagio at Inverness Residential Con. Ass’n v. Metro. Homes, Inc., No. 15SC508, 2017 CO 69 (Colo. June 5, 2017) decision. In short, the Colorado Supreme Court upheld the validity of declarant “consent-to-amend” provisions and expressly held that claims under the Colorado Consumer Protection Act are arbitrable.
By way of background, the Vallagio at Inverness Residential Condominiums were developed by Metro Inverness, LLC, (“Declarant”) which also served as the declarant for its homeowners association. Metropolitan Homes was Metro Inverness’ manager and the general contractor on the project. Greg Krause and Peter Kudla served as declarant-appointed members of the Association’s board during the period of declarant control.
When it set up the Association, the Declarant included within the Association’s declaration a mandatory arbitration provision specifically for construction defect claims. This provision stated that it “shall not ever be amended without the written consent of Declarant and without regard to whether Declarant owns any portion of the Real Estate at the time of the amendment.”
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Assignment of Insured's Policy Ineffective
April 06, 2016 —
Tred R. Eyerly – Insurance Law HawaiiAn assignment of policy rights made before the policy was issued was ineffective. W. Alliance Bank v. Nat'l Union Fire Ins. Co., 2016 U.S. Dist. LEXIS 19936 (N.D. Cal. Feb. 18, 2016).
The bank issued a loan to Sorrento Networks, Inc. in 2011. As collateral, Sorrento gave the bank a continuing security interest in all of Sorrento's personal property, including its inventory, commercial tort claims and insurance proceeds. The loan agreement authorized the back to act on Sorrento's behalf in collecting any money owed to Sorrento and prosecuting any claims that Sorrento might have.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com