COVID-19 Win for Policyholders! Court Approves "Direct Physical Loss" Argument
October 12, 2020 —
Gregory D. Podolak & Christine Baptiste-Perez - Saxe Doernberger & VitaLate last week, a Missouri federal district court provided a significant victory for insurance policyholders for COVID-19 losses. In Studio 417, Inc. v. The Cincinnati Insurance Company 6:20-cv-03127-SRB (W.D. MO, So. Div., Aug. 12, 2020), the Court was called upon to decide whether allegations involving the presence of COVID-19 in and around physical structures qualify as “direct physical loss or damage” to covered property. For those actively monitoring the COVID-19 insurance coverage litigation landscape, this has been a central question – and hotly contested debate – in virtually all first-party property and business interruption claims. Through a detailed and well-reasoned discussion, the Court answered the question with an emphatic “Yes.”
The Plaintiffs – a proposed class of hair salons and restaurants - purchased “all-risk” property insurance policies (the “Policies”) from Cincinnati. The Policies provide that Cincinnati would pay for “direct ‘loss’ unless the ‘loss’ is excluded or limited.” They also defined a “Covered Cause of Loss” as “accidental [direct] physical loss or accidental [direct] physical damage.” The Policies did not contain a virus exclusion. Anecdotally, Cincinnati has been vocal about the general lack of virus exclusions on its standard forms, having recently publicized that the company considers such exclusions “unnecessary” because, in its view, “a virus does not produce direct physical damage or loss to property.” From Cincinnati’s perspective, the insuring agreement is not triggered by these events, so there’s no need to analyze exclusions. Cincinnati relied heavily on that analysis in this case.
Reprinted courtesy of
Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and
Christine Baptiste-Perez, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at gdp@sdvlaw.com
Ms. Baptiste-Perez may be contacted at cbp@sdvlaw.com
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EPA Seeks Comment on Clean Water Act Section 401 Certification Rule
July 19, 2021 —
Karen Bennett - Lewis BrisboisThe Environmental Protection Agency (EPA) announced that it will revise a 2020 final rule clarifying requirements for water quality certification under the Clean Water Act (CWA). 85 Fed. Reg. 42210 (June 2, 2021). CWA Section 401 requires states and tribes to certify that any discharges associated with a federal permit will comply with applicable state or tribal water quality requirements.
In an effort to eliminate 401 certification being used as a tool for delaying or imposing conditions unrelated to protecting water quality on federal permits, the 2020 rule established limits on the scope and timeline for review and required any conditions on certification to be water-quality related. State and Tribal governments and environmental groups challenged the rule, arguing it constrained state and tribal decision-making authority by limiting the term “other appropriate requirements of State law” in CWA Section 401(d) to “water quality requirements” and “point source discharges.”
With EPA’s decision to revise the rule, many believe these same scope and timing limitations will be targets for change. Clients with experience, positive or negative, under the 2020 rule should consider submitting comments by the August 2, 2021 deadline.
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Karen Bennett, Lewis BrisboisMs. Bennett may be contacted at
Karen.Bennett@lewisbrisbois.com
Three Firm Members Are Top 100 Super Lawyers & Ten Are Recognized As Super Lawyers Or Rising Stars In 2018
July 28, 2018 —
Scott MacDonald - Ahlers Cressman & Sleight PLLCWith the Fourth of July festivities still ringing in our collective ears, we are having our own celebration at Ahlers Cressman & Sleight PLLC. We avoid using this blog as a platform for self-promotion as we want to keep relevant construction industry news and notes hitting your inboxes. Longtime readers will know, however, that we make an exception to recognize the Super Lawyers of the firm, who are each humbled to receive this peer-voted award. We also share this news in recognition of our clients and industry-partners who have put their trust and confidence in us. Without these relationships, these industry acknowledgments would have no significance.
Super Lawyers is a wholly independent company that identifies outstanding lawyers in the profession. It selects attorneys using a patented multiphase selection process based on legal excellence, industry involvement, and civic leadership. Super Lawyers’ initial pool of candidates is based on peer nominations and evaluations from outside the firm, which is then combined with Super Lawyers’ own third-party research. Only five percent of all lawyers in Washington State are selected for the honor of Super Lawyers and no more than 2.5 percent are selected for the honor of Super Lawyers Rising Stars. What makes this award meaningful is it is based upon evaluation of individual merit—as opposed to a “pay-to-win” award.
John P. Ahlers, one of the firm’s founding partners, is again recognized as one of the 10-Best Lawyers in the State of Washington across all practicing industries.
Founding partner Paul R. Cressman, Jr. and partner Brett M. Hill are also recognized as two of the 100-Best Lawyers across all practicing industries in Washington State.
In addition, three other firm members are also recognized as Super Lawyers: Founding partner Scott R. Sleight, Bruce A. Cohen (of counsel), and Lawrence S. Glosser (partner). In addition, Ryan W. Sternoff (partner), Lindsay (Taft) Watkins (partner), Ceslie A. Blass (associate), and Scott D. MacDonald (associate) were selected as Super Lawyers Rising Stars. Well over half of the firm’s lawyers received Super Lawyers distinction.
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Scott MacDonald, Ahlers Cressman & Sleight PLLCMr. MacDonald may be contacted at
scott.macdonald@acslawyers.com
Congratulations to BWB&O’s 2023 Mountain States Super Lawyers Rising Stars!
August 07, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O is excited to announce Las Vegas Partners Devin Gifford and Madeline Arcellana have been selected in the 2023 Mountain States Super Lawyers list as Rising Stars for their work in Civil Litigation. To read Super Lawyers’ digital publication, please click
here.
SELECTED AS RISING STARS
Devin Gifford: 2023
Madeline Arcellana: 2023
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Landlords Challenge U.S. Eviction Ban and Continue to Oust Renters
October 25, 2020 —
Kriston Capps - BloombergIn September, the Trump administration announced a national moratorium on evictions, via an order by the Centers for Disease Control and Prevention aimed at reducing the spread of coronavirus. The four-month temporary suspension applies to any tenant who can’t make rent due to economic conditions and who presents a written declaration about their circumstances to their landlord.
But the CDC ban now faces legal challenges on multiple fronts, even as landlords continue to routinely file evictions for nonpayment of rent — the very outcome that the order was designed to prevent.
On Oct. 20, the U.S. District Court for the Northern District of Georgia heard the first case against the moratorium, Richard Lee Brown, et al. v. Secretary Alex Azar, et al.. That challenge, brought by a nonprofit called the New Civil Liberties Alliance, has been joined by the National Apartment Association, which represents some 85,000 landlords responsible for 10 million rental units. Lawyers and scholars working on behalf of plaintiffs in the cases say that the CDC lacks the constitutional authority to enact a policy affecting rents.
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Kriston Capps, Bloomberg
NJ Condo Construction Defect Case Dismissed over Statute of Limitations
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article by Matthew D. Stockwell of the firm Pillsbury Winthrop Shaw Pittman, LLP published in Lexology, “a trial court in Bergen County, New Jersey dismissed a condominium association's construction defect claims against several construction entities for failure to comply with the applicable statute of limitations.”
Stockwell stated that the “aftermath will be interesting to follow, because the trial court stripped away some of the protection that New Jersey's discovery rule affords to property owners who become aware of latent defects well after a project is substantially completed.”
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No Coverage for Additional Insured
December 17, 2015 —
Tred R. Eyerly – Insurance Law HawaiiTwo insurers disputed who was responsible for coverage the additional insured contractor. Endurance Am. Spec. Ins. Co. v. Century Sur. Co., 2015 U.S. App. LEXIS 19194 (2nd Cir. Nov. 4, 2015). The district court granted summary judgment to Endurance, finding there was coverage for the additional insured general contractor after being sued by an employee of a subcontractor.
Century's policy included an Action Over Exclusion clause, which excluded insurance coverage for injury to certain employees as follows:
Exclusions:
. . .
e. Employer's Liability
"Bodily injury" to:
(1) an "employee" of the
named insured arising out of and in the course of:
- (a) Employment by the named insured; or
- (b) Performing duties related to the conduct of the named insured's business.
The named insured was Pinnacle Construction & Renovation Corp.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors
November 18, 2024 —
Matthew DeVries - Best Practices Construction LawWhen Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International’s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate 40, making transportation of materials and equipment nearly impossible. Many contractors in western North Carolina found their projects halted, and their schedules thrown off by this force majeure event.
In situations like these, contractors and subcontractor need a plan to mitigate the impact of such natural disasters on their projects. Here are five practical tips to help you secure time extensions and/or compensation for delays:
1. Include a Robust Force Majeure Clause in Your Contract
When disaster strikes, your contract is your first line of defense. A well-drafted force majeure clause can make the difference between bearing the costs yourself and getting an extension or compensation. The clause should clearly list specific events such as hurricanes, floods, and road closures as qualifying force majeure events.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com