Federal Court Sets High Bar for Pleading Products Liability Cases in New Jersey
November 11, 2024 —
Lian Skaf - The Subrogation StrategistProducts liability is an area of law that both sides of the aisle vigorously litigate. Like in most litigation, products liability claims provide subrogation attorneys with an important means of prosecuting cases against manufacturers, sellers, and other entities in the stream of commerce. Of course, these claims also come with numerous “buyer beware” requirements.
New Jersey allows products liability claims and the United States District Court for the District of New Jersey (District Court) clarified how such claims should be plead in Cambridge Mut. Fire Ins. Co. a/s/o David Krug vs. Stihl, Inc., No. 22-05893, 2024 U.S. Dist. LEXIS 178804 (D. N.J.). After becoming subrogated to the rights of its insured, Cambridge Mutual Fire Insurance Company (Cambridge) filed suit against Stihl, Inc. (Stihl) in the Superior Court of New Jersey, Morris County, Law Division. Stihl then removed the case to federal court. Once in federal court, Stihl filed a motion to dismiss the action. The District Court granted the motion, doing so in part with prejudice and in part without prejudice.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Real Estate & Construction News Roundup (04/18/23) – Clean Energy, Critical Infrastructure and Commercial Concerns
April 25, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn today’s roundup, construction waxes and wanes, energy goals are set, and concerns abound for the commercial real estate market in the United States and Europe.
- A new AI-driven real estate platform, Land on Earth, will use their ChatGPT-powered HomeMatch technology to match house hunters with their ideal properties. (Business Wire)
- Following a strong show in February, new construction decreased in March, with an 8.8 percent decrease in permits. (Tim Smart, U.S. News)
- The UK’s construction industry made a strong performance this winter, but strikes have offset gains, dimming hopes of economic revival. (Paul Godfrey, UPI)
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Pillsbury's Construction & Real Estate Law Team
Illinois Joins the Pack on Defective Construction as an Occurrence
December 16, 2023 —
Anna M. Perry - Saxe Doernberger & Vita, P.C.Illinois joins the majority of states finding “property damage that results inadvertently from faulty work can be caused by an ‘accident’ and therefore constitute an ‘occurrence’.”
The Illinois Supreme Court’s ruling in Acuity v. M/I Homes of Chicago, LLC1 (“Acuity v. M/I Homes”) is the first high court ruling in Illinois on this critical coverage issue for contractors. M/I Homes of Chicago, LLC (“M/I Homes”) constructed a townhome development. After completion, water entered the townhomes resulting in interior water damage. The townhome owners’ association filed suit against M/I Homes alleging it, or its subcontractors, caused the damage because it used defective materials, conducted faulty workmanship, and failed to comply with applicable building codes (the “Underlying Action”).
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Anna M. Perry, Saxe Doernberger & Vita, P.C.Ms. Perry may be contacted at
APerry@sdvlaw.com
Protecting Your Business From Liability Claims Stemming From COVID-19 Exposure
June 01, 2020 —
Andrew Hamelsky, Jenifer Scarcella & Joshua Tumen - White and WilliamsBusinesses of every nature – including grocery stores, banks, daycares, gyms and restaurants – may face increasing liability claims from customers and third parties claiming to have been exposed to the novel coronavirus, or COVID-19, while at their location. The novel virus raises issues as to whether businesses have a heightened duty of care to their customers, and what type of exposure businesses face if a customer claims to have been exposed to COVID-19 while at their premises.
Recently, a lawsuit was filed against Princess Cruise lines for gross negligence in allowing passengers to be exposed to COVID-19 on a cruise ship. The lawsuit alleges that the cruise ship was allowed to go out to sea knowing that it was infected from two previous passengers who came down with symptoms of COVID-19. It further claims that the passengers were not warned of the potential exposure either before or after they boarded the ship.
In other news reports around the country, business owners have reported taking extraordinary precautions to prevent customers’ risk of contracting COVID-19. For example, one grocery store recently reported that it discarded $35,000 worth of food after a customer coughed on fresh produce.
Reprinted courtesy of White and Williams LLP attorneys
Andrew Hamelsky,
Jenifer Scarcella and
Joshua Tumen
Mr. Hamelsky may be contacted at hamelskya@whiteandwilliams.com
Ms. Scarcella may be contacted at scarcellaj@whiteandwilliams.com
Mr. Tumen may be contacted at tumenj@whiteandwilliams.com
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Navigating the Construction Burrito: OCIP Policies in California’s Construction Defect Cases
November 16, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldIn the early 2000’s, Owner-Controlled Insurance Programs (OCIP) or WRAPS, were traditionally used in large commercial projects of over $50 million in construction costs. As construction defect lawsuits became more prevalent, subcontractors found themselves unable to meet the insurance requirements of their contracts with developers and general contractors because they could not find insurance companies that were willing to insure the risk. This presented a problem for developers and general contractors and left them with no option but to look into new insurance products that would insure them and all subcontractors who worked on the project. OCIPs became in some instances the only insurance option for developers, general contractors, and subcontractors to build single-family or multi-family projects in California and other western states.
OCIPS or WRAPS, often likened to the layers of a savory burrito, offer both enticing benefits and potential pitfalls. Just as a burrito’s ingredients can harmonize or clash, OCIP policies can shape the outcome of legal battles, impacting contractors, developers, and insurers alike.
Pros – Savoring the OCIP Burrito:
1. Wrapped Protection: Much like a well-folded burrito envelops its contents, OCIP policies offer comprehensive coverage for construction projects. Developers, general contractors, and subcontractors find comfort in knowing that their liability risks are bundled into a single policy, ensuring all enrolled parties have coverage in the event of a claim.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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CAUTION: Terms of CCP Section 998 Offers to Compromise Must Be Fully Contained in the Offer Itself
May 12, 2016 —
Jesse M. Sullivan & R. Bryan Martin – Haight Brown & Bonesteel LLPIn Sanford v. Rasnick, (Ct. of Appeal, 1st App. Dist., No. A145704) the First Appellate District addressed whether a CCP § 998 Offer to Compromise requiring plaintiff to execute a release and enter into a separate settlement agreement was valid. Because the settlement agreement could potentially contain additional terms not stated in the CCP 998 Offer, the Court of Appeal held that it was not.
Plaintiff alleged he was injured when the 17-year-old Defendant ran a stop sign and struck his motorcycle. Plaintiff sued the 17-year-old and his father (the owner of the vehicle) for vehicular negligence and general negligence.
Just after discovery closed, defendants jointly served a CCP § 998 Offer to Compromise to plaintiff in the amount of $130,000. The offer contained a condition requiring that in order to accept, plaintiff must provide a “notarized execution and transmittal of a written settlement agreement and general release. Each party will bear its own fees, costs and expenses.”
Mr. Sullivan may be contacted at jsullivan@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
Reprinted courtesy of
Jesse M. Sullivan, Haight Brown & Bonesteel LLP and
R. Bryan Martin, Haight Brown & Bonesteel LLP
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Smart Home Products go Mainstream as Consumer Demand Increases
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFGigaom reported that Wal-Mart announced yesterday that they will begin selling Insteon gear, one of the Smart Home products, in 1,500 of its stores across the country. "The products in store will include a starter kit, motion sensors, dimmers, IP cameras, LED bulbs, leak sensors and door/window sensors among others. Wal-Mart also sells Chamberlain gear and a few other connected devices on its web site." According to Builder, a Savant survey demonstrated that "Americans are eager for home automation, proving that technology is a great way for builders to distinguish their new homes from the rest of the market."
In another article, Gigaom announced that Netgear will be introducing a line of Smart Home products under the name Arlo.
Read the full story, Gigaom, Wal-Mart now sells Insteon gear...
Read the full story, Gigaom, Netgear launches its Arlo smart home brand with a camera...
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Real Estate & Construction News Round-Up (10/05/22) – Hurricane Ian, the Inflation Reduction Act, and European Real Estate
October 24, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up features Hurricane Ian’s effect on the construction labor pool, the Inflation Reduction Act’s projected impact on the real estate and construction industry, Europe’s real estate market, and more.
- The Inflation Reduction Act (IRA), designed to reduce the nation’s carbon footprint by jump-starting innovation and adoption of cleaner energy sources, also contains large segments aimed at real estate and construction. (Chava Gourarie, Commercial Observer)
- Damage caused by Hurricane Ian’s massive storm surge, flooding and winds is projected to hike demand for experienced construction workers. (Zachary Phillips, Construction Dive)
- According to the National Multifamily Housing Council’s monthly construction survey released Sept. 29, 2022, almost all developers are experiencing construction delays. (Paul Bergeron, Globest)
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Pillsbury's Construction & Real Estate Law Team