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DIRECTORY AND CAPABILITIES

Supreme Court Addresses Newly Amended Statute of Repose for Construction Claims

June 26, 2023 — David R. Cook Jr. - Autry, Hall & Cook, LLP
We have been following the protracted legal battle concerning Southern States Chemical, Inc. v. Tampa Tank & Welding, Inc. This case had been litigated at the Supreme Court and resulted in legislation. In the latest round, the Supreme Court answered whether Georgia’s statute of repose for construction claims applies to claims arising or brought before the statute was amendment in 2020. What is a Georgia’s statute of repose? Under the statute, “[n]o action to recover damages: (1) For any deficiency in the survey or plat, planning, design, specifications, supervision or observation of construction, or construction of an improvement to real property; (2) For injury to property, real or personal, arising out of any such deficiency; or (3) For injury to the person or for wrongful death arising out of any such deficiency shall be brought against any person performing or furnishing the survey or plat, design, planning, supervision or observation of construction, or construction of such an improvement more than eight years after substantial completion of such an improvement.” The case began ten years ago when Southern States suited Tampa Tank and Corrosion Control for alleged defects in renovating a 24-foot tall, 130-foot wide storage tank. The tank renovation was completed in 2002, and in 2011, the tank was found to leak sulfuric acid. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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Wilke Fleury Attorneys Awarded Sacramento Business Journal’s Best of the Bar

September 30, 2019 — Dan Egan, Steve Williamson & David Frenznick - Wilke Fleury
Wilke Fleury congratulates attorneys Dan Egan, Steve Williamson and David Frenznick on their inclusion in the Sacramento Business Journal 2019 Best of the Bar! The Sacramento Business Journal annually honors the region’s top attorneys after a rigorous process of selection. To be awarded the Best of the Bar, attorneys are nominated by fellow attorneys and then vetted by a panel of peers. Reprinted courtesy of Wilke Fleury attorneys Dan Egan, Steven J. Williamson and David A. Frenznick Mr. Egan may be contacted at degan@wilkefleury.com Mr. Williamson may be contacted at swilliamson@wilkefleury.com Mr. Frenznick may be contacted at dfrenznick@wilkefleury.com Read the court decision
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When “Substantially Similar” Means “Fundamentally Identical”: Delaware Court Enforces Related Claim Provision to Deny D&O Coverage for Securities Class Action

August 10, 2021 — Geoffrey B. Fehling, Lawrence J. Bracken II & Lorelie S. Masters - Hunton Andrews Kurth
A company faces two class action lawsuits—filed by different plaintiffs, complaining of different allegedly wrongful conduct, asserting different causes of action subject to different burdens of proof, and seeking different relief based on different time periods for the alleged harm. Those facts suggest the suits are not “fundamentally identical,” but that is what a Delaware Superior Court recently concluded in barring coverage for a policyholder seeking to recover for a suit the court deemed “related” to an earlier lawsuit first made outside the policy’s coverage period. First Solar Inc. v. National Union Fire Ins. Co. of Pittsburgh, Pa., No. N20C-10-156 MMJ CCLD (Del. Super. Ct. June 23, 2021). The decision, which is not on all fours with some of the authority upon which it relies, underscores the inherent unpredictability of “related” claim disputes and need for careful analysis of the policy language against the factual and legal bases of the underlying claims. Underlying Shareholder Class Actions and D&O Claims Shareholders of solar panel manufacturer First Solar sued the company and its directors and officers in a class action lawsuit (the “Smilovits Action”) for the class period April 2008 to February 2012. The Smilovits Action asserted federal securities violations arising from First Solar’s alleged misrepresentations about the company’s business strategies, product design, financial strength, and ability to offer solar electricity at comparable rates to conventional energy producers (i.e., achieving “grid parity”), artificially inflated stock price, insider trading, manipulation of solar power metrics, and violations of GAAP accounting standards. First Solar submitted a claim to its D&O insurer, National Union, which provided coverage for the Smilovits Action and exhausted the policy. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth, Lawrence J. Bracken II, Hunton Andrews Kurth and Lorelie S. Masters, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Bracken may be contacted at lbracken@HuntonAK.com Ms. Masters may be contacted at lmasters@HuntonAK.com Read the court decision
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Changes to Va. Code Section 43-13: Another Arrow in a Subcontractor’s Quiver

November 02, 2020 — Christopher G. Hill - Construction Law Musings
As is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting. One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code. This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose. Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer. For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases. A key change in the statute occurred during the 2020 legislative session states as follows:

Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Chambers USA 2019 Ranks White and Williams as a Leading Law Firm

June 03, 2019 — David Marion, Patricia Santelle & Maulin Vidwans - White and Williams LLP
Chambers USA once again recognized White and Williams as a leading law firm in Pennsylvania for achievements and client service in the area of insurance law. In addition, three lawyers received individual honors - one for her work in insurance, one for his work in commercial litigation and another for his work in banking and finance. White and Williams is acknowledged for its renowned practice offering expert representation to insurers and reinsurers across an impressive range of areas including coverage, bad faith litigation and excess liability. The firm is recognized for its notable strength in transactional and regulatory matters complemented by its adroit handling of complex alternative dispute resolutions. Chambers also acknowledged the firm's broad trial capabilities, including handling data privacy, professional liability and toxic tort coverage claims, and experience in substantial claims arising from bodily injury and wrongful death suits. White and Williams' individual lawyer honorees include Managing Partner Patti Santelle, who is named an Eminent Practitioner in the area of insurance. Patti's considerable experience advising insurers on a broad range of coverage matters, including asbestos, environmental and toxic tort cases, coupled with her proficiency in coverage actions at the state and federal level earn her a well-regarded reputation as an "excellent lawyer." Reprinted courtesy of White and Williams LLP attorneys David Marion, Patricia Santelle and Maulin Vidwans Mr. Marion may be contacted at mariond@whiteandwilliams.com Ms. Santelle may be contacted at santellep@whiteandwilliams.com Mr. Vidwans may be contacted at vidwansm@whiteandwilliams.com Read the court decision
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Florida’s “Groundbreaking” Property Insurance Reform Law

April 18, 2023 — Bradley S. Fischer & Laura Farrant - Lewis Brisbois
Fort Lauderdale, Fla. (April 18, 2023) – On December 16, 2022, Florida Governor Ron DeSantis signed into law Senate Bill 2-A (S.B. 2-A, or the Act). Widely touted as “groundbreaking,” S.B. 2-A reforms many aspects of the claims process, including the timing for paying and adjusting claims, eliminating one-way attorneys’ fee awards, and banning assignment-of-benefits agreements. This alert provides an overview of the key provisions of S.B. 2-A. Unless otherwise stated in each amended statute, December 16, 2022 appears to be the effective date of the Act. I. Assignment of Benefits – Section 627.7152 (effective January 1, 2023)

• A policyholder may not assign any post-loss insurance benefits under any residential or commercial property insurance policy. Any attempt to assign such benefits is void, invalid, and unenforceable.

Reprinted courtesy of Bradley S. Fischer, Lewis Brisbois and Laura Farrant, Lewis Brisbois Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com Read the court decision
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State-Fed Fight Heats Up Over Building Private Nuclear Disposal Sites

August 03, 2022 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
The U.S. Nuclear Regulatory Commission and Interim Storage Partners, a joint venture that gained a federal license last year to build an interim storage facility for spent commercial nuclear fuel at a Texas site, have until Aug. 3 to answer a federal lawsuit claim by state officials that a new U.S. Supreme Court decision eliminates the federal agency’s licensing authority. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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City and Contractor Disclaim Responsibility for Construction Error that Lead to Blast

November 13, 2013 — CDJ STAFF
The city of Grand Junction, Colorado and their contractor, Aperion Utility Construction, LLC, have both denied any wrongdoing in the construction accident that lead to the destruction of two homes. Aperion was drilling in order to repair traffic signals. Their drill damaged a gas line. In the subsequent explosion, three people were injured and two homes destroyed. Homes for 10 blocks were subsequently evacuated. The three men who were injured have filed a lawsuit claiming negligence on the part of the contractor and the city. The city has released a report from their insurers that concluded that the city was not responsible. Read the court decision
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