Construction Litigation Roundup: “Give a Little Extra …”
July 31, 2024 —
Daniel Lund III - LexologySurplus lines insurers in Louisiana are considered by the state to be “an alternative type of property and casualty insurance coverage for consumers who cannot get coverage on the standard market … for specialty risk or high-risk situations….”
As a quid pro quo for undertaking the exceptional risk, a surplus lines insurer argued to the United States Fifth Circuit Court of Appeals that an arbitration clause within its surplus line policy should be enforceable, notwithstanding a Louisiana statute applying to the insurance industry and prohibiting terms in insurance policies “delivered or issued for delivery” in Louisiana which have the effect of “[d]epriving the courts of this state of the jurisdiction or venue of action against the insurer.” La. R.S. 22:868.
Historically in Louisiana, arbitration clauses have been understood to divest courts of jurisdiction, and, consequently, §22:868 has been held to memorialize an “anti-arbitration policy,” although the statute does not specifically mention arbitration.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Congratulations to BWB&O’s Newport Beach Team for Prevailing on a Highly Contested Motion to Quash!
January 08, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Newport Partners Tyler Offenhauser and Jonathan Cothran, and Associate Anisha Kohli, who recently prevailed on behalf of BWB&O’s client before the Orange County Superior Court on a highly contested Motion to Quash Service based on Plaintiff’s failure to timely file and serve a DOE Amendment, naming our client.
BWB&O’s client was the owner of a building where Plaintiff, a licensed electrician, was electrocuted while performing an upgrade to the building’s electrical infrastructure. Plaintiff’s original lawsuit named only the building’s tenant, who was also represented by BWB&O. BWB&O was successful earlier this year on a Motion for Summary Judgment under the Privette Doctrine and won judgment on behalf of the client/tenant. While that MSJ was pending, Plaintiff surreptitiously added the building’s owner to the suit with a DOE Amendment, after several months earlier learning the owner and then tenant were entities operated by the same individual. However, Plaintiff never informed counsel or any other party of the filing. Moreover, after the MSJ was granted, Plaintiff then waited several more months to serve the building’s owner.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
California Supreme Court Shifts Gears on “Reverse CEQA”
February 23, 2016 —
Garret Murai – California Construction Law BlogThe California Supreme Court has shifted gears on so-called “reverse CEQA” under the California Environmental Quality Act (“CEQA”).
The Supreme Court, in a much-anticipated decision, in California Building Industry Association v. Bay Area Air Quality Management District, Case No. S213478 (December 17, 2015), held that public agencies subject to CEQA are not required to analyze whether existing environmental conditions may impact a proposed project’s future users or residents – also known as “reverse CEQA” or “CEQA in reverse” – as opposed to the more traditional analysis of a proposed project’s impact on the environment, unless:
1. The proposed project risks exacerbating existing environmental hazards – in which case, it is the proposed project’s impact on the environment not the environment’s impact on the proposed project, which compels the evaluation; or
2. A reverse CEQA analysis is already required under statute, for example, on certain airport, school and housing projects.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Court of Appeals Finds Additional Insured Coverage Despite “Care, Custody or Control” Exclusion
September 30, 2019 —
Garret Murai - California Construction Law BlogWhen things go wrong on a construction project it’s often a scramble of finger pointing. In McMillin Homes Construction, Inc. v. National Fire & Marine Insurance Company, Case No. D074219 (June 5, 2019), the California Court of Appeals for the 4th District considered whether an additional insured exclusion, excluding “property in the care, custody or control of the additional insured,” precluded a duty to defend by an insurer.
McMillin Homes Construction, Inc. v. National Fire & Marine Insurance Company
McMillin Homes Construction, Inc. was the developer and general contractor on a residential project known as Auburn Lane in Chula Vista, California. McMillin subcontracted with Martin Roofing Company, Inc. to perform roofing work. Under the subcontract, Martin was required to obtain commercial general liability insurance naming McMillin as an additional insured.
The commercial general liability insurance policy secured by Martin was issued by National Fire and Marine Insurance Company. As is typical, the policy covered “property damage” and “personal injury” arising out of an “occurrence” during the policy period. McMillin was covered as additional insured under ISO endorsement form CG 20 09 03 97.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
LA Metro To Pay Kiewit $297.8M Settlement on Freeway Job
December 08, 2016 —
Greg Aragon – Engineering News-RecordThe Los Angeles County Metropolitan Transportation Authority (LA Metro) has reached an agreement with Kiewit Corp. and will pay the contractor $297.8 million for project change orders on the Interstate 405-Sepulveda Pass Widening Project, in Los Angeles.
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Greg Aragon, Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
Industry Standard and Sole Negligence Defenses Can’t Fix a Defect
June 14, 2021 —
Lian Skaf - The Subrogation StrategistStrict products liability cases have been the subject of much fluctuation in the Pennsylvania courts over the last few years. Utilizing hope created by the courts in recent strict liability cases, defendants have tried to revive defenses based on meeting industry standards and the plaintiff’s contributory negligence. Recently, the Superior Court of Pennsylvania tempered that hope with limitations of how far strict liability defenses can extend.
In Sullivan v. Werner Co., No. 3086 EDA 2019, 2021 Pa. Super. LEXIS 210, an appellate panel of the Superior Court reviewed the lower court’s decision to exclude evidence of industry standards and of the plaintiff’s negligence in a trial that resulted in a $2.5 million verdict for the plaintiff. Upholding the decision of the lower court, the court found that the proffered evidence was within the discretion of the court to exclude.
In Sullivan, Michael Sullivan (Sullivan) was working as a union carpenter at a renovation project for a local school. He and his apprentice were installing exterior sheathing to the outdoor walls. In order to install the sheathing, Sullivan had to use a scaffold. He put together a new SRS-72 scaffold manufactured by Werner Company (Werner) that his foreman bought at Lowe’s Companies, Inc. (Lowe’s) and used the scaffold during the course of his work. While on the scaffold, Sullivan fell through and crashed to the ground. He suffered permanent injuries as a result of the incident.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
The Court-Side Seat: FERC Reviews, Panda Power Plaints and Sovereign Immunity
April 26, 2021 —
Anthony B. Cavender - Gravel2GavelThis is a brief report on new environmental law decisions, regulations and legislation.
THE U.S. SUPREME COURT
Massachusetts Lobsterman’s Association v. Raimondo, Secretary of Commerce
On March 22, 2021, the Supreme Court rejected a petition to review a Presidential decision to invoke the Antiquities Act of 1906 to designate as a monument “an area of submerged land about the size of Connecticut” in the Atlantic Ocean. This action forbids all sorts of economic activity, which compelled the filing of litigation in the First Circuit challenging this designation. Chief Justice Roberts supported the Court’s denial of certiorari, but remarked that a stronger legal case may persuade the Court to review such liberal uses of the Antiquities Act.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Multiple Occurrences Found For Claims Against Supplier of Asbestos Products
May 07, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court found that various claims for bodily injury against a supplier of asbestos products arose from multiple occurrences, increasing indemnity amounts available under the policy. Westfield Ins. Co. v. Continental Ins. Co., 2015 U.S. Dist. LEXIS 45437 (N.D. Ohio April 7, 2015).
Mahoning Valley Supply Company (MVS) was sued by numerous claimants who alleged that they had been injured by asbestos-containing products manufactured by third parties, but supplied by MVS. The claimants alleged exposure to asbestos fibers at a variety of job sites, on numerous dates, and under a variety of conditions. Two insurers shared defense and indemnity costs.
In 2013, Continental informed MVS that the three policies issued to MVS were nearly exhausted. Therefore, the parties disputed whether MVS' asbestos claims arose out of a single "occurrence" rather than multiple occurrences. The policies defined "occurrence" as "an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com