Federal Court Asks South Dakota Supreme Court to Decide Whether Injunction Costs Are “Damages,” Adopts Restatement’s Position on Providing “Inadequate” Defense
August 13, 2019 —
Anthony L. Miscioscia & Timothy A. Carroll - White and Williams LLPDo costs associated with complying with an injunction constitute covered “damages?” The U.S. District Court for the District of South Dakota recently certified that question to the South Dakota Supreme Court, in Sapienza v. Liberty Mutual Fire Insurance Company, No. 3:18-CV-03015-RAL, 2019 U.S. Dist. LEXIS 84973 (D.S.D. May 17, 2019). If the South Dakota Supreme Court takes on the question, it will become one of the few highest state courts to do so.[1] The Sapienza case is also notable because the court adopted § 12 of the Restatement of the Law of Liability Insurance (Restatement) regarding an insurer’s potential liability for providing an “inadequate” defense. In doing so, the Sapienza court joins a growing list of courts to rely upon or cite to the Restatement.
The Sapienza case arose out of an underlying dispute between residential neighbors over the size and location of the Sapienzas’ new house they built in a historic district in Sioux Falls, SD. The newly-built house allegedly prevented the neighbors from using their fireplace, blocked natural light the neighbors previously enjoyed, and decreased the value of the neighbors’ house. The neighbors sought a permanent injunction requiring the Sapienzas to modify or relocate the house. The Sapienzas’ homeowners’ insurer provided them with defense counsel, but the insurer instructed the Sapienzas that it would not cover any costs associated with an injunction as such costs did not constitute covered “damages.”
Reprinted courtesy of
Timothy Carroll, White and Williams LLP and
Anthony Miscioscia, White and Williams LLP
Mr. Schulman may be contacted at carrollt@whiteandwilliams.com
Mr. Anderson may be contacted at misciosciaa@whiteandwilliams.com
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Substitutions On a Construction Project — A Specification Writer Responds
July 03, 2022 —
Melissa Dewey Brumback - Construction Law in North CarolinaIn response to the post about
Substitute Materials on a construction project, Phil Kabza explains how his company,
SpecGuy, handles tracking of all such materials on a project.
Phil writes:
Excellent and important topic, about which there is much confusion among design professionals and contractors. We try to maintain definitions for:
- Pre-bid requests for prior approval of proposed comparable products where products are named in the specifications
- True pre-bid substitution requests that present an alternate type of product from that specified (ie., not “comparable” but perhaps suitable)
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com
Construction Wall Falls, Hurts Three
November 06, 2013 — CDJ STAFF
A construction wall collapsed on November 1 during heavy rainfall in New York City. Two women were briefly trapped under the rubble, while other bystanders worked to free them. Einstein Construction Group, a contractor based in Texas, was remodeling the first floor for a new tenant, a Japanese restaurant. The company, which disclaims responsibility for the occurrence, were cited for violations and a stop work order was issued.
Just prior to the incident, high winds whipped through the area. The construction wall allegedly had not been securely attached to the building.
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Nader Eghtesad v. State Farm General Insurance Company
September 28, 2020 — Michael Velladao - Lewis Brisbois
In Eghtesad v. State Farm Gen. Ins. Co., 51 Cal.App.5th 406 (June 29, 2020), the California Court of Appeal reversed the trial court’s entry of judgment in favor of State Farm General Insurance Company (“State Farm”) based on an order sustaining a demurrer without leave to amend regarding a complaint filed by Nader Eghtesad. Mr. Eghtesad, representing himself, filed a form complaint checking a box for breach of contract. The complaint alleged two paragraphs contending that State Farm had acted in bad faith and concealed benefits due under a policy issued to a former tenant who rented space in a building owned by Eghtesad. Eghtesad was an additional insured under the tenant’s policy. In that regard, the building was damaged during the time that the building was rented and Eghtesad tendered a claim under the State Farm policy contending that he was an additional insured pursuant to the terms of the lease with the tenant. According to Eghtesad, State Farm advised him that he could only make a claim for slander against the former tenant and that coverage was not afforded for his property damage claim.
After Eghtesad filed his form complaint, State Farm demurred to the complaint and argued that it did not state facts supporting a cause of action for breach of contract. Ultimately, the trial court agreed with State Farm and entered an order sustaining the demurrer without leave to amend, such that a judgment was entered in State Farm’s favor. Due to health reasons, Eghtesad was never able to file an opposition to the demurrer, despite two extensions of time provided by the trial court intended to allow Eghtesad time to retain counsel and to recover from injuries sustained as a result of an automobile accident. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com
Michigan Civil Engineers Give the State's Infrastructure a "C-" Grade, Improving from "D+" Grade in 2018
May 08, 2023 — The American Society of Civil Engineers
LANSING, MI. — The Michigan Section of the American Society of Civil Engineers (ASCE) released the 2023 Report Card for Michigan's Infrastructure today, with 14 categories of infrastructure receiving an overall grade of 'C-', an improvement over the 'D+' grade issued in the state's 2018 report card. That means Michigan's infrastructure systems are improving but are still in average condition and require attention. Michigan's grade is on par with the national average of 'C-' given in the 2021 Report Card for America's Infrastructure. Civil engineers graded Michigan's aviation (C), bridges (D+), dams (C-), drinking water (D+), energy (D), inland waterways (C), public parks (C), rail (C), roads (D), schools (C-), solid waste (C+), stormwater (D), transit (C-), and wastewater (C). The report also included a chapter on the state's broadband infrastructure, which did not receive a grade due to insufficient available data.
Michigan policymakers have driven progress in the last five years to improve infrastructure assets by implementing short-term funding solutions to address decades of deferred maintenance, including surface transportation funding through the Rebuilding Michigan plan and improved water infrastructure systems through the MI Clean Water Plan. The state will also benefit from recent federal infrastructure investments included in the Bipartisan Infrastructure Law (BIL), Coronavirus Aid, Relief, and Economic Security (CARES) Act, and American Rescue Plan Act (ARPA). However, Michigan generally lacks sufficient long-term funding mechanisms to ensure all infrastructure sectors reach and sustain a state of good repair.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Why You Should Consider “In House Counsel”
September 22, 2016 — Christopher G. Hill – Construction Law Musings
We construction lawyers have occasionally taken it on the chin as one of the obstacles in the construction process. However, I have often argued what I believe to be true, that early consultation with a construction lawyer, before problems occur, is a great way for a construction company to avoid issues and to, yes, save money in the long run. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com
Florida’s Third District Court of Appeal Suggests Negligent Repairs to Real Property Are Not Subject to the Statute of Repose
June 29, 2017 — Nicole Rodolico, Esq. - Florida Construction Law News
Florida’s Third District Court of Appeal (“Third District”) recently addressed the applicable statute of limitations for repairs under Section 95.11, Florida Statutes, including the issue of whether a repair constitutes an improvement to real property. In Companion Property & Casualty Group v. Built Tops Building Services, Inc., No. 3D16-2044, 2017 Fla. App. LEXIS 6584 (Fla. 3d DCA May 10, 2017) (“Companion”), the Third District ruled that the trial court erred in finding that a subrogation action arising out of an alleged defective roof repair was time-barred because the statute of limitations had run.
On February 8, 2016, Companion Property & Casualty Group (“Companion”) filed its complaint against a building services company, Built Tops Building Services, Inc. (“Built Tops”), for negligent repair of its insured’s roof. Companion alleged that the defective roof repair was performed on November 21, 2006. Companion further alleged that as a result of Built Tops’ work, the insured suffered water damage to the condominium building on February 9, 2012. Built Tops moved to dismiss the action on the basis that the applicable four-year statute of limitations had run on Companion’s claim, which Built Tops argued accrued on the date the repair was performed, November 21, 2006. The trial court granted the motion to dismiss. Read the court decision
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Reprinted courtesy of Nicole Rodolico, Cole, Scott & Kissane, P.A.
Ms. Rodolico may be contacted at nicole.rodolico@csklegal.com
New Jersey Law Firm Announces $4 Million Settlement from Construction Site Accident
November 11, 2024 — Greenberg Minasian, LLC
WEST ORANGE, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Greenberg Minasian, LLC, a personal injury law firm located in Essex County, New Jersey, has announced a $4 million settlement stemming from a roofer who suffered serious injuries after a construction site fall. Veteran trial attorney Mitchell Goldstein represented the injured client, who suffered multiple fractures and injuries, permanently affecting his ability to work.
In 2018, Robert Smith, who was 61 at the time, fell backward through or over a temporary guard rail at the American Dream Mall in East Rutherford, NJ. The 30-foot fall caused him to suffer serious injuries to his pubis, sacrum, clavicle, and humerus, leading to multiple surgeries and a hip replacement.
On behalf of his client, Mr. Goldstein brought suit against the mall developer and construction company, successfully arguing that the temporary guardrails were improperly constructed and insufficiently elevated according to Occupational Safety and Health Administration (OSHA) guidelines. The case was settled just two days before trial, marking a significant victory for the plaintiff and his family.
Despite the defense's attempt to argue that Mr. Smith was responsible for his fall, Goldstein was able to refute their claims, asserting that the temporary guardrail's improper construction directly led to the accident.
About Greenberg Minasian LLC
Based in West Orange, Greenberg Minasian represents clients who have been seriously injured as the result of negligence by others. The firm handles cases anywhere in New Jersey including West Orange, Jersey City, Newark, Essex County and all surrounding areas. The firm continues to achieve the highest awards for its clients and families.
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