WARN Act Exceptions in Response to COVID-19
April 13, 2020 —
Yvette Davis & Kyle R. DiNicola - Haight Brown & BonesteelCalifornia’s WARN Act requires employers of certain covered establishments to provide 60 days written notice of any mass layoff, relocation, or termination. This notice is required to be given to employees and the Employment Development Department. An employer’s failure to comply with this requirement can result in being held liable for back-pay and value of the cost of any benefits to which the affected employee(s) may have been entitled for up to a maximum of 60 days.
Due to the COVID-19 crisis and emergency circumstances in which many employers now find themselves, the Governor of California has issued Executive Order N-31-20, which temporarily suspends the 60-days advance notice requirement and the provisions that impose liability and penalties on an employer for the duration of the COVID-19 emergency.
Reprinted courtesy of
Yvette Davis, Haight Brown & Bonesteel and
Kyle R. DiNicola, Haight Brown & Bonesteel
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. DiNicola may be contacted at kdinicola@hbblaw.com
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A Property Tax Exemption, Misapplied, in Texas
June 18, 2019 —
Anthony B. Cavender - Gravel2GavelIn an important ruling for Texas businesses, the Texas Supreme Court has unanimously ruled that the TCEQ misapplied the Texas property tax’s exemption for specified pollution control equipment.
Since 1993, the Texas Constitution has included a provision which authorizes the Texas Legislature to exempt from ad valorem taxation “all or part of real and personal property used … wholly or partly … for the control or reduction of air, water or land pollution.” This provision is implemented by Section 11.31 of the Texas Tax Code, which is administered by the Texas Commission on Environmental Quality. (See the rules at Title 30, Chapter 17 of the Texas Administrative Code.) If the Executive Director of the TCEQ determines that the equipment is used wholly or partly for pollution control, he issues a “positive use determination”; in the event it does not, the Executive Director issues a “negative use determination and rejects the application for the exemption. In 2007, Section 11.31 was amended at 11.31 (k) to list several items of equipment that are presumed to be pollution-control equipment, including “heat recovery steam generators” or HRSGs. This equipment is used by powerplants to reduce nitrogen oxide emissions that are the product of generation of electricity. Several applications were submitted to the TCEQ by the Brazos Electric Power Cooperative, seeking a tax exemption for its HRSG units. In July 2012, the TCEQ denied these applications, with the flat declaration that HRSGs are not pollution-control equipment—“they are used solely for production.” The Brazos Cooperative sued the Commission, and on May 3, 2019, in the case of Brazos Electric Power Cooperative, Inc. v. TCEQ, the Texas Supreme Court issued a unanimous opinion reversing the Commission, and the lower court (the Eight Court of Appeals, sitting in El Paso) that affirmed the Commission’s action.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Insured's Commercial Property Policy Deemed Excess Over Unobtained Flood Policy
June 10, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion for summary judgment, deciding that there was no breach of the policy for failure to pay for flood damage when the insured failed to obtain a policy under the National Flood Insurance Program (NFIP). 570 Smith St. Realty Corp. v. Seneca Ins. Co. Inc., 2019 N.Y. Misc. LEXIS 1773 (N.Y. Sup. Ct. April 4, 2019).
The insured's property in Brooklyn was insured by Seneca. Included in the policy was flood coverage in the amount of $1 million with a $25,000 deductible. While the policy was in effect, Hurricane Sandy hit, damaging the property. Plaintiffs timely filed a claim seeking reimbursement of up to policy limits. Seneca paid only $35,883 and later made an additional payment of $33,015.
The insured sued for, among other things, breach of the policy for failure to properly indemnify for the losses. Seneca moved for partial summary judgment dismissing the breach of policy claims. Seneca pointed out that the "Other Insurance" provision in the Flood Coverage Endorsement of the policy stated that if the loss was eligible to be covered under a NFIP policy, but there was no such policy in effect, the insurer would only pay for the amount of loss in excess of the maximum limit payable for flood damage under the policy. The maximum NFIP coverage was $500,000. The insured's loss caused by flood was less than $500,000.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insureds' Summary Judgment Motion on Mold Limitation Denied
November 10, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe insureds' motion for partial summary judgment on the applicability of the homeowner's mold limitation was denied. R.W.& R. v. Liberty Mutual Fire Ins. Co., 2016 U.S.Dist. LEXIS 131586 (W.D. Wash. Sept. 26, 2016).
The policy imposed a $5,000 limit on losses caused by mold. Plaintiffs discovered that their dishwasher was leaking and reported the loss to Liberty. Liberty's contractor concluded that the bottom of the dishwasher had rusted out, causing water to seep into parts of the kitchen and the laundry/utility room below. The contractor used dehumidifiers to extract moisture from the affected areas and removed damaged cabinetry, drywall and tiling. The contractor discovered mold that it believed predated the dishwasher leak. Although the contractor took steps to remove the mold, its dehumidification efforts exacerbated the problem by dispersing mold spores throughout portions of the house.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court of Appeal Shines Light on Collusive Settlement Agreements
October 21, 2015 —
Kristian B. Moriarty & R. Bryan Martin – Haight Brown & Bonesteel LLPIn Diamond v. Reshko, (filed 8/20/2015, No. A139251) the California Court of Appeal, First District, held that a defendant was entitled to introduce evidence at trial reflecting amounts paid by co-defendants in settlement of a plaintiff’s claim.
Plaintiff, Christine Diamond, was injured during an automobile accident that occurred while she was a passenger in a taxi driven by Amir Mansouri. Christine, and her husband Andrew, filed suit against Mr. Mansouri, the Yellow Cab Collective (“Yellow Cab”), and the driver of the vehicle that collided with the taxi, Serge Reshko. Before trial, Mansouri and the Yellow Cab Collective settled with Plaintiffs, but agreed to appear and participate as defendants at the jury trial of the action. Mansouri and Yellow Cab paid a total of $400,000 to Plaintiffs in settlement.
Reshko filed a pre-trial motion seeking an order permitting Reshko to admit evidence of the settlement between Plaintiffs and the other defendants. The trial court refused to rule on the motion before trial. Ultimately, evidence of the settlement between Plaintiffs, Mansouri and Yellow Cab was excluded during trial. The jury returned a verdict in favor of Plaintiffs in the total amount of $745,778, finding Mansouri 40 percent at fault, and Reshko 60 percent at fault. The Trial Court entered judgment against Reshko in the sum of $406,698.
Reshko appealed the judgment. The First District Court of Appeal reversed, holding that evidence of the settlement should have been admitted at trial because the settling defendant’s position should be revealed to the court and jury to avoid committing a fraud on the court, and in order to permit the trier of fact to properly weigh the settling defendant’s testimony.
Reprinted courtesy of
Kristian B. Moriarty, Haight Brown & Bonesteel LLP and
R. Bryan Martin, Haight Brown & Bonesteel LLP
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
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Federal Courts Keep Chipping Away at the CDC Eviction Moratorium
March 22, 2021 —
Kriston Capps - BloombergIn a March 10 decision, a federal court in Cleveland blocked the national eviction moratorium, making it the second court to challenge the emergency measure implemented under President Donald Trump and extended by the Biden administration. The order clears the way for courts and landlords to resume evictions against tenants across much of Ohio. But the landlord groups who brought the suit believe that the decision could have a broader national application, setting the stage for an earlier-than-anticipated resumption of eviction activity before the ban expires on March 31.
The judge ruled that the Centers for Disease Control and Prevention, which introduced its ban on evictions in September, lacks the authority to enact such a policy. While the court stopped short of issuing an injunction against the CDC ban, its decision goes further than the Texas court that made a similar call late in February.
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Kriston Capps, Bloomberg
No Coverage for Building's First Collapse, But Disputed Facts on Second Collapse
January 10, 2018 —
Tred R. Eyerly – Insurance Law Hawaii While building's first collapse was not covered, there were disputed facts regarding the second collapse, leading to a reversal of the order granting summary judgment to the insurer on both collapses. Intergroup Int'l Ltd. v. Cincinnati Ins. Cos, 2017 Ohio app. LEXIS 5099 (Ohio Ct. App. Nov. 22, 2017). Intergroup bought a building after it was inspected. While leaks on the roof were repaired and a roof truss that was sagging was replaced, the inspector found the roof to be in good shape.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at te@hawaiilawyer.com
Nevada Provides Independant Counsel When Conflict Arises Between Insurer and Insured
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Nevada Supreme Court, responding to certified questions, determined that an insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and insured. State Farm Mut. Auto. Ins. Co. v. Hansen, 2015 Nev. LEXIS 86 (Nev. Sept. 24, 2015).
The insured struck the vehicle of another driver, Hansen. Hansen sued the insured alleging both negligence and various intentional torts. State Farm agreed to defend under a reservation of rights. The reservation of rights letter reserved the right to deny coverage for liabiltiy resulting from intentional acts and punitive damages.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com