Issue and Claim Preclusion When Forced to Litigate Similar Issues in Different Forums: White River Village, LLP v. Fidelity and Deposit Company of Maryland
October 10, 2013 —
Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.Often in construction litigation the parties wish to move the case to arbitration. However, there are certain circumstances in which such change of litigation forums should be carefully analyzed. The case of White River Village, LLP v. Fidelity and Deposit Company of Maryland, serves as an example of one of those circumstances.
In March 2013, U.S. District Court Judge Blackburn ruled on a motion for summary judgment filed by Fidelity and Deposit Company of Maryland (“F&D”). The order grants the motion in part and denies it in part. White River Village, LLP (“White River”) was the owner of the project which hired S&S Joint Venture (“S&S”), the contractor, to build two similar developments, directly adjacent to each other. The contracts between Whiter River and S&S for the two projects were so substantially similar that the court referred to them as the S&S Contracts. F&D issued payment and performance bonds guarantying the obligations of S&S under the S&S Contracts.
After S&S defaulted on the construction contracts, F&D, as the surety, undertook to complete performance on the contracts. White River alleged that F&D was liable for construction defects and delays in completing the project, and failed to fulfill its obligations under the performance bonds after it overtook the construction of the projects.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Recession Graduates’ Six-Year Gap in Homeownership
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Zillow Real Estate Research, “Five years after completing their degree, young adults who graduate into a recession still have a lower homeownership rate than peers graduating into normal economic times. But at six years this gap disappears.”
Zillow’s research demonstrated “that graduating into a recession has a lasting adverse effect on young adults’ employment and earning, a phenomenon known as labor market ‘scarring.’” Furthermore, “Homeownership is closely tied to the labor market, particularly among young adults, and some preliminary evidence suggests that a similar ‘scarring’ effect occurs with respect to the homeownership rate among young adults who graduate into a weak economy.”
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Deference Given To Procuring Public Agency Regarding Material Deviation
April 10, 2019 —
David Adelstein - Florida Construction Legal UpdatesDeference will be given to a procuring public agency in a bid protest, particularly when the issue involves whether a bid is non-responsive and constitutes a material deviation from the solicitation. You do not believe me? Perhaps you will after this holding in Biscayne Marine Partners, LLC v. City of Miami, Florida, 44 Fla.L.Weekly D467a (Fla. 3d DCA 2019):
Consequently, no principle of law is clearly established…as to any obligation of the trial court (and, by analogy, an administrative hearing officer) [in a bid protest] to decide or to defer [whether a bid constitutes a material deviation from the solicitation]. If anything, the existing and clearly established principle of law inclines toward judicial deference in public agency competitive bidding disputes when the agency has exercised it discretion absent illegality, fraud, oppression or misconduct.
I do not know about you, but that last underlined sentence is pretty strong language regarding judicial deference!
In this case, Miami (the procuring public agency) issued a Request for Proposals (RFP) for the redevelopment and lease of waterfront property, for the operation of a marina, boatyard, restaurant, wet slips, and a dry storage facility on the property. Miami issued five addenda to the RFP. There were three bidders.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Las Vegas Team Obtains Complete Dismissal of a Traumatic Brain Injury Claim
June 21, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Partner,
Jeffrey W. Saab and Associate,
Shanna B. Carter on their successful Motion to Dismiss!
This personal injury claim arose from an incident whereby Plaintiff allegedly tripped and fell in front of the client’s business and sustained a traumatic brain injury. Initially, a default was entered against the client, and BWB&O was retained to unwind the same, and then defend against the claim. However, during the initial investigation, Shanna uncovered a defect in the service of the Complaint which invalidated not only the default, but more importantly service of the Complaint itself. Working as a team, Shanna performed the research and writing, and Jeff argued the Motion to Dismiss which was granted dispensing of the entire claim.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance
May 01, 2023 —
Jason Feld & Stephanie Wilson - Kahana & Feld LLPArizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in
Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022) adopted a bright line rule that regardless of the contract, the implied warranty of workmanship and habitability (“implied warranty”) cannot be disclaimed or waived under any circumstance. The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty – which is a definitive violation of public policy.
The Zambrano decision involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty. The express warranty was to be the “only warranty applicable to the home.” The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty. The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged “design and construction defects” that were “either time barred or outside the coverage” of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano’s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court.
Reprinted courtesy of
Jason Feld, Kahana & Feld LLP and
Stephanie Wilson, Kahana & Feld LLP
Mr. Feld may be contacted at jfeld@kahanafeld.com
Ms. Wilson may be contacted at swilson@kahanafeld.com
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NYC Shuts 9 Pre-Kindergartens for Health, Safety Issues
September 03, 2014 —
Henry Goldman – BloombergNew York City won’t permit nine of 1,700 planned pre-kindergarten centers to open because of health and safety shortcomings and will delay use of 36 others for incomplete construction, officials in Mayor Bill de Blasio’s administration said.
The announcement in an e-mail from the mayor’s press office came two days before the city was to embark on de Blasio’s signature policy initiative to offer free universal pre-school to the city’s 4-year-olds starting with more than 50,000 this year and expanding to more than 70,000 next year.
The nine shuttered schools each raised health and safety concerns after they were examined by building inspectors, fire officials and the Health Department, said Wiley Norvell, a spokesman for the mayor. Of the 236 students enrolled for those locations, officials had found alternatives for 83. The city is working with parents to find other schools for the rest, Norvell said.
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Henry Goldman, BloombergMr. Goldman may be contacted at
hgoldman@bloomberg.net
Eleventh Circuit Rules That Insurer Must Defend Contractor Despite “Your Work” Exclusion, Where Damage Timing Unclear
May 13, 2019 —
Michael S. Levine & David M. Costello - Hunton Andrews KurthThe Eleventh Circuit has reversed an insurer’s award of summary judgment after finding that uncertainty about when the alleged property damage occurred raised questions about whether the damage came within the scope of the “Your Work” exclusion. More specifically, the court found unclear whether the damage occurred before or after the contractor abandoned the job, thereby triggering an exception to the “Your Work” exclusion for damage to work that had “not yet been completed or abandoned.” The decision illustrates how timing can be a critical factor when it comes to triggering coverage for work and completed operations.
In Southern-Owners Insurance Company v. MAC Contractors of Florida, LLC, a pair of trustees hired MAC Contractors (doing business as KJIMS Construction) to serve as the general contractor for a custom residence. After construction began, disputes between the trustees and KJIMS caused the contractor to abandon the job before completing the project. The trustees followed with a lawsuit alleging, among other things, that KJIMS had damaged wood floors and a metal roof, which KJIMS had promised to remediate but never did.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
David Costello, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Costello may be contacted at dcostello@HuntonAK.com
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The ABCs of PFAS: What You Need to Know About Liabilities for the “Forever Chemical”
February 22, 2021 —
Robert F. Walsh, Gregory S. Capps & R. Victoria Fuller - Complex Insurance Coverage ReporterThis article is based on a presentation the authors made at White and Williams LLP’s Virtual Coverage College® on October 22, 2020. Every year, hundreds of insurance professionals come to Philadelphia—this year via our online platform—to participate in a full day of lectures and interactive presentations by White and Williams lawyers and guest panelists about the latest issues and challenges involved in claim handling and insurance litigation. Visit coveragecollege.com for more information and stay tuned for Coverage College® 2021.
Perfluoroalkyl and polyfluoroalkyl substances, commonly referred to as PFAS or PFOS, have been a key ingredient in numerous industrial and consumer products for decades. These man-made chemicals are prevalent and are also known for their longevity in the environment. More recently, PFAS have been the focus of thousands of lawsuits alleging personal injury and property damage. Some insurers have already questioned whether PFAS could rival asbestos in scope and bottom-line impacts. It is a legacy that confronts manufacturers and other defendants and insurers today.
This article provides a primer on PFAS, including the current regulatory framework and litigation landscape. We also identify some key emerging coverage issues insurers should be aware of when dealing with PFAS claims under liability and first-party property policies.
Reprinted courtesy of
Robert F. Walsh, White and Williams LLP and
Gregory S. Capps, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
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