Fairfield Connecticut Building Expert Directory

Texas Supreme Court Holds that Invoking Appraisal Provision and Paying Appraisal Amount Does Not Insulate an Insurer from Damages Under the Texas Prompt Payment of Claims Act

September 16, 2019 — John C. Eichman & Grayson L. Linyard - Hunton Insurance Recovery Blog
In two cases decided June 28, 2019, the Texas Supreme Court held that an insurer’s invocation of a contractual appraisal provision after denying a claim does not as a matter of law insulate it from liability under the Texas Prompt Payment of Claims Act (“TPPCA”). But, on the other hand, the court also held that the insurer’s payment of the appraisal award does not as a matter of law establish its liability under the policy for purposes of TPPCA damages. In Barbara Techs. Corp. v. State Farm Lloyds, No. 17-0640, 2019 WL 2666484, at *1 (Tex. June 28, 2019), State Farm Lloyds issued property insurance to Barbara Technologies Corporation for a commercial property. A wind and hail storm damaged the property, and Barbara Tech filed a claim under the policy. State Farm denied the claim, asserting that damages were less than the $5,000 deductible. Barbara Tech filed suit against State Farm, including for violation of the TPPCA. Six months later, State Farm invoked the appraisal provision of the policy. More than a year after the suit was filed, appraisers agreed to a value of $195,345.63. State Farm then paid that amount, minus depreciation and the deductible. Barbara Tech amended its petition to include only TPPCA claims. Reprinted courtesy of John C. Eichman, Hunton Andrews Kurth and Grayson L. Linyard, Hunton Andrews Kurth Mr. Eichman may be contacted at jeichman@HuntonAK.com Mr. Linyard may be contacted at glinyard@HuntonAK.com Read the court decision
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New Spending Measure Has Big Potential Infrastructure Boost

February 14, 2018 — Tom Ichniowski – ENR
Construction and engineering companies find lots of good news in a newly enacted budget and appropriations package that keeps federal agencies open until late March, provides $89 billion for post-disaster relief and rebuilding and also holds out the prospect of an additional $20 billion in infrastructure funding over the next two years. Read the court decision
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Reprinted courtesy of Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Search in Florida Collapse to Take Weeks; Deaths Reach 90

July 25, 2021 — The Associated Press (Freida Frisaro & Bobby Caina Calvan) - Bloomberg
Authorities searching for victims of a deadly collapse in Florida said Sunday they hope to conclude their painstaking work in the coming weeks as a team of first responders from Israel departed the site. Miami-Dade County Mayor Daniella Levine Cava said 90 deaths have now been confirmed in last month's collapse of the 12-story Champlain Towers South in Surfside, up from 86 a day before. Among them are 71 bodies that have been identified, and their families have been notified, she said. Some 31 people remain listed as missing. The Miami-Dade Police Department said three young children were among those recently identified. Crews continued to search the remaining pile of rubble, peeling layer after layer of debris in search of bodies. The unrelenting search has resulted in the recovery of over 14 million pounds (about 6.4 million kilograms) of concrete and debris, Levine Cava said. Read the court decision
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Reprinted courtesy of Bloomberg

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 Kurth
The 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 Read the court decision
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Wall Failure Due to Construction Defect Says Insurer

October 09, 2013 — CDJ STAFF
A wall built by J. F. Smith Construction collapsed during Hurricane Isaac, and Bankers Insurance Group is blaming the builder not the hurricane. The insurer claims that if the wall had been built properly it would have withstood the storm. The suit is being filed in the Louisiana courts. Bankers Insurance is seeking $49,625.25 in damages. Read the court decision
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Blackstone Said in $1.7 Billion Deal to Buy Apartments

January 21, 2015 — Hui-yong Yu – Bloomberg
Blackstone Group LP (BX), the biggest owner of U.S. single-family houses, agreed to buy 36 apartment properties across the country for about $1.7 billion as it expands its rental business, according to two people with knowledge of the transaction. The low-rise, garden-style properties are being sold by Praedium Group, a New York-based real estate investment firm, and contain about 11,000 apartments, said the people, who asked not to be identified because the deal is private. About half of the buildings are in California, Washington, D.C., and Boston, with the rest located around the U.S., they said. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

Appellate Court reverses district court’s finding of alter ego in Sedgwick Properties Development Corporation v. Christopher Hinds (2019WL2865935)

August 13, 2019 — Frank Ingham - Colorado Construction Litigation
Division V of the Colorado Court of Appeals addressed, for the first time, corporate veil-piercing in the context of a single-member, single-purpose LLC that is managed under a contract by another company. On July 3, 2019, the Court of Appeals reversed the order of the Honorable Ross B. Buchannan, Denver District Court Judge (17CA2102), who held that Plaintiff/Appellee Christopher Hinds satisfied the elements required to pierce the corporate veil of Sedgwick Properties Development Corporation (“Sedgwick”). Background Defendant 1950 Logan, LLC (“1950 Logan”) was the developer of a building located at 1950 Logan Street, in Denver, called The Tower on the Park (“Project”), which contained 141 individually owned condominium units. The Project was completed in 2006. 1950 Logan was a single-purpose entity created for the construction of the Project, which is a common practice in the construction industry. After the units were sold in 2006, the LLC wrapped up operations. Read the court decision
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Reprinted courtesy of Frank Ingham, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Ingham may be contacted at ingham@hhmrlaw.com

Rattlesnake Bite Triggers Potential Liability for Walmart

February 02, 2017 — James R. Lynch - Ahlers & Cressman, PLLC
A customer shopping at Walmart’s outdoor garden center in Clarkston, Washington, reached down to brush aside a stick covering a price tag for bags of mulch stored on wooden pallets. The “stick” turned out to be a rattlesnake, and bit his hand. The customer sued Walmart on the legal basis of “premises liability,” claiming that as Walmart’s business invitee (one who enters the owner’s property primarily for the owner’s benefit), the store owed him a duty to warn or guard against hazardous conditions such as the rattlesnake. In many cases, a property owner’s duty to protect invitees applies only where the owner knows or reasonably should know of the hazardous condition. The owner’s liability therefore often hinges on where the hazard is located, how long it has been present, whether it has occurred in the past, and similar considerations. Read the court decision
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Reprinted courtesy of James R. Lynch, Ahlers & Cressman, PLLC
Mr. Lynch may be contacted at jlynch@ac-lawyers.com

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