Extrinsic Evidence, or Eight Corners? Texas Court Sheds Light on Determining the Duty to Defend
December 18, 2022 —
Nathan A. Cazier - Payne & FearsLast year, the Texas Supreme Court adopted a narrow exception to the state’s eight-corners rule, and allowed the consideration of extrinsic evidence to determine the duty to defend. The exception arguably raised more questions than it resolved. Last month, a Texas federal court answered some of these questions by rejecting an insurer’s attempt to introduce extrinsic evidence under the newly minted exception.
Texas permits few, if any, deviations from its eight-corners rule, which determines an insurer’s duty to defend by only considering the operative pleading and the terms of the policy, without any regard to extrinsic evidence or facts. This protects policyholders by erring on the side of defending claims, even if coverage is questionable. In Monroe Guar. Ins. Co. v. Bitco Gen. Ins. Corp., 640 S.W.3d 195, 199 (Tex. 2022) (“Monroe”), the Texas Supreme Court adopted an exception to the eight-corners rule, holding that extrinsic evidence may be considered when an “information gap” between the pleading and the policy makes it impossible to determine coverage, but only in limited scenarios where the extrinsic evidence (1) goes solely to an issue of coverage and does not overlap with the merits of liability, (2) does not contradict facts alleged in the pleading, and (3) conclusively establishes the coverage fact to be proved.
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Nathan A. Cazier, Payne & FearsMr. Cazier may be contacted at
nac@paynefears.com
Taylor Morrison v. Terracon and the Homeowner Protection Act of 2007
June 11, 2014 —
Buck Mann – Colorado Construction LitigationOn January 30, 2014, the Colorado Court of Appeals decided the case of Taylor Morrison of Colorado, Inc. v. Bemas Construction, Inc. and Terracon Consultants, Inc. 2014WL323490. The case addressed a substantial issue of Colorado constitutional law, as well as a variety of procedural issues of potential importance to construction litigation attorneys. Of particular interest is the question of whether the provisions of the 2007 Homeowner Protection Act (“HPA”) are limited in application to contracts between residential homeowners and construction professionals, or whether they have broader application between commercial construction professional parties as well. As discussed below, the Court of Appeals stated that it would not answer the question, and then, separately, implied that the statute might only apply to homeowner transactions – with the resulting exclusion of commercial transactions. However, after its analysis, it left the actual decision of that issue to a future court in a later case.
The factual background for the case involved claims of breach of a contract for soils engineering by Terracon Consultants, Inc. (“Terracon”) and negligent excavation work by Bemas Construction, Inc. (“Bemas”). Plaintiff was Taylor Morrison of Colorado (“Taylor Morrison”), the developer and general contractor for a residential subdivision called Homestead Hills. After it constructed many homes, Taylor Morrison began to receive complaints of cracking drywall resulting from foundation movement and it made repairs at significant expense. Taylor Morrison then filed suit against Terracon and Bemas in connection with their respective roles in the original construction.
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Buck Mann, Higgins, Hopkins, McLain & Roswell, LLCMr. Mann may be contacted at
mann@hhmrlaw.com
Newmeyer & Dillion Welcomes Three Associates to Newport Beach Office
January 26, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – JANUARY 24, 2017 – Enjoying rapid expansion in many primary practice areas, Newmeyer & Dillion LLP is pleased to welcome new associates
Jenny Guzman and
Jason Moberly Caruso, and welcomes back
Lily (Toubi) Razai to the Newport Beach office. The addition of these three associates fortifies the firm’s commitment to provide unparalleled service to our clients.
Firm Managing Partner,
Jeff Dennis, explained that each hire addresses the immediate and long-term needs of our clients, and firm's desire for strategic growth. "We always remain focused on what will allow us to better represent our clients, not just now but far into the future. We are excited to bring these three talented lawyers aboard as we continue to expand our capabilities across practice areas.”
Guzman, Caruso and Razai each practice business and real estate litigation, with Razai’s practice including land use and eminent domain matters. Caruso also practices construction law and Guzman's practice also focuses on business and real estate transactions.
Each attorney has unique strengths that continue to diversify the firm’s approach to their clients. In addition to serving clients in state and federal courts, Razai has extensive experience in alternative dispute resolution proceedings, and has served as a mediator in state courts. Awarded Super Lawyers 2016 Rising Star, Caruso utilizes his extensive judicial experience to argue on behalf of his clients at various levels from arbitration to the Ninth Circuit Court of Appeals. Guzman draws on her past experience in private equity and venture capital to protect businesses and help them achieve their full potential. These three associates, along with their diverse experience and cohesive strengths, further reinforce N&D’s foundation for continued growth and excellence.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Second Circuit Upholds Constitutionality of NY’s Zero Emissions Credit Program
November 21, 2018 —
Anthony B. Cavender - Gravel2GavelOn September 27, the U.S. Court of Appeals for the Second Circuit affirmed the District Court’s ruling that the “Zero Emissions Credit” (ZEC) program of the New York Public Service Commission is not unconstitutional. The case is Coalition for Competitive Electricity, et al. v. Zibelman, Chair of the New York Public Service Commission, et al.
In effect, the ZEC program provides subsidies to qualifying New York nuclear power plants as a way to reduce greenhouse gas emissions. The ZEC program is intended to prevent nuclear plants from being prematurely retired from generating power until suitable replacement facilities are operating.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
The Miller Act Explained
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on his California Construction Law Blog, goes over the nuances of the Federal Miller Act. Murai explained, “Named after John E. Miller, former Arkansas Congressman, later U.S. Senator and still later federal judge, the Miller Act was enacted in 1935 in the middle of the Great Depression, to help ensure that subcontractors and material suppliers working on federal projects get paid, by requiring contractors who contract directly with the federal government on federal construction projects furnish payment and performance bonds.”
Murai answered questions such as what is required under the act, who is protected, how a general contractor could protect itself from a Miller Act claim, as well as others.
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Leaning San Francisco Tower Seen Sinking From Space
November 30, 2016 —
The Associated Press (Jocelyn Gecker) – BloombergSan Francisco (AP) -- Engineers in San Francisco have tunneled underground to try and understand the sinking of the 58-story Millennium Tower. Now comes an analysis from space.
The European Space Agency has released detailed data from satellite imagery that shows the skyscraper in San Francisco's financial district is continuing to sink at a steady rate — and perhaps faster than previously known.
The luxury high-rise that opened its doors in 2009 has been dubbed the Leaning Tower of San Francisco. It has sunk about 16 inches into landfill and is tilting several inches to the northwest.
A dispute over the building's construction in the seismically active city has spurred numerous lawsuits involving the developer, the city and owners of its multimillion dollar apartments.
Engineers have estimated the building is sinking at a rate of about 1-inch per year. The Sentinel-1 twin satellites show almost double that rate based on data collected from April 2015 to September 2016.
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Bloomberg
Video: Contractors’ Update on New Regulations Governing Commercial Use of Drones
September 01, 2016 —
David R. Cook Jr. – AHHC Construction Law BlogAt a presentation before the AGC of Georgia, AHHC attorneys Mark Hanrahan, David Cook, and Chadd Reynolds covered “Contractors’ Update on New Regulations Governing Commercial Use of Drones.” View the presentation here: https://vimeo.com/177566370
On June 23, 2016, the Department of Transportation and Federal Aviation Administration issued new regulations regarding non-hobby and non-recreational civil operation of small unmanned aircraft systems. These regulations are intended to limit interference with federal airspace while advancing research and safety in commercial industries. They also addressed practical implications and how to comply by the August 29, 2016 deadline.
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David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Manhattan Trophy Home Sellers Test Buyer Limits on Price
February 14, 2014 —
Oshrat Carmiel – BloombergBroker Alon Chadad’s client purchased a $14.3 million apartment on Manhattan’s Central Park South, then spent nine months seeking approval for plans to overhaul it. In January, the buyer changed course, listing the unit for sale at more than double what he paid just a year ago.
“He filed all the documents for renovation and he was ready to go and he decided, ‘You know what? I see opportunity in the market,’” said Chadad, co-founder of Blu Realty Group and the agent for the 6,160-square-foot (572-square-meter) condominium, which has an asking price of $29.5 million.
Luxury-apartment owners in New York are listing a record amount of properties for sale, testing the upper limits of what buyers are willing to pay even as median prices remain off their peak set almost six years ago. Sellers have taken notice of a handful of record-shattering deals, triggered by an $88 million purchase at 15 Central Park West, and demand for trophy homes by international investors seeking havens for their cash.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net