Construction Firm Settles Suit Over 2012 Calif. Wildfire
January 15, 2019 —
Associated Press - Engineering News-RecordSACRAMENTO, Calif. (AP) — Officials say a construction company and a logging firm have collectively agreed to pay $9 million for damages resulting from a 2012 wildfire that burned more than 1,600 acres of national forest land in Northern California.
The U.S. Attorney's office in Sacramento says Monday that the agreement settles a lawsuit brought by the federal government against Kernen Construction and Bundy & Sons Logging.
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Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
An Additional Insured’s Reasonable Expectations may be Different from the Named Insured’s and Must be Considered to Determine whether the Additional Insured is Entitled to Defense from the Insurer of a Commercial Excess & Umbrella Liability Policy
June 12, 2014 —
Richard H. Glucksman, Esq., Jon A. Turigliatto, Esq. and Kacey R. Riccomini, Esq. – Chapman Glucksman Dean Roeb & BargerThe Second District Court of Appeal’s recent decision, Transport Insurance Company v. Superior Court (2014) 222 Cal.App.4th 1216, immediately affects builders and contractors (collectively “builders”) who are often named as additional insureds (AIs) to contractors’ general liability policies. The decision is an important tool for builders’ counsel because the builder’s reasonable expectations can alter the interpretation of ambiguous terms in policies issued to subcontractors. Essentially, the builder’s intent is relevant to the interpretation of policy terms because the subcontractor’s intent in requesting additional coverage depends on the agreement it made with the builder. The salient aspects of the facts, the Appellate Court’s reasoning, and practical considerations are discussed below.
Transport Insurance Company (Transport) issued a commercial excess and umbrella liability policy (Policy) to Vulcan Materials Company (Vulcan), naming R.R. Street & Co., Inc. (Street) as an AI for its distribution of a solvent. The Policy provided that Transport would indemnify and defend the insured for loss caused by property damage if (1) it was not covered by “underlying insurance” but was within the terms of coverage of the Policy, or (2) if the limits of liability of the “underlying insurance” were exhausted during the Policy period due to property damage. The Policy included a Schedule of Underlying Insurance (Schedule) that listed policies issued to Vulcan. Thereafter, Vulcan and Street were named as defendants in several environmental contamination actions (Underlying Actions).
Transport brought a declaratory relief action against Vulcan regarding Transport’s duty to defend. (Legacy Vulcan Corp. v. Superior Court (Legacy Vulcan) (2010) 185 Cal.App.4th 677). The trial court found the term “underlying insurance” ambiguous as it was not expressly defined to include only the policies on the Schedule and could be interpreted to include all primary policies in effect. Vulcan challenged the trial court’s decision by petition for writ of mandate, contending “underlying insurance” only included policies listed on the Schedule. The Court of Appeal found “underlying insurance” ambiguous because it was an expressly qualified term under other Policy provisions but not in the umbrella coverage provision and, thus, it was a generic term that was not limited to policies listed in the Schedule or inclusive of all primary insurance.
Reprinted courtesy of Chapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto and
Kacey R. Riccomini
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com; Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com, and Ms. Riccomini may be contacted at kriccomini@cgdrblaw.com
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Florida Federal Court Reinforces Principle That Precise Policy Language Is Required Before An Insurer Can Deny Coverage Based On An Exclusion
February 07, 2018 —
Walter J. Andrews and Katherine Miller - Hunton Insurance Recovery Blog A recent ruling by U.S. District Judge Paul Byron of the Middle District of Florida has made clear that the actual words used in an insurance contract matter. The court, in
Mt. Hawley Insurance Co. v. Tactic Security Enforcement, Inc., No. 6:16-cv-01425 (M.D. FL. 2018), denied an insurance company’s motion for summary judgment attempting to rely on an exclusion to deny coverage to its policyholder. The policyholder, Que Rico La Casa Del Mofongo, operated a restaurant establishment in Orlando, Florida, and sought coverage for two negligence lawsuits filed against it for allegedly failing to prevent a shooting and another violent incident on its premises.
Reprinted courtesy of
Walter J. Andrews, Hunton & Williams and
Katherine Miller, Hunton & Williams
Mr. Andrews may be contacted at wandrews@hunton.com
Ms. Miller may be contacted at kmiller@hunton.com
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Candis Jones Named to Atlanta Magazine’s 2021 “Atlanta 500” List
March 01, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones has been named to Atlanta Magazine’s 2021 “Atlanta 500” list of the most powerful business leaders in Atlanta. To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionary by, for example, leading programs for their communities or creating opportunities for employees.
Ms. Jones is a member of Lewis Brisbois’ General Liability Practice. Representing a wide array of clients, including Fortune 500 companies, insurance carriers, and a major metropolitan transit authority, she focuses her practice on insurance defense, premises liability, personal injury, and medical malpractice. She was recently installed as the President of the Gate City Bar Association, the oldest African-American bar association in the state of Georgia, and also serves as a member of the Georgia Defense Lawyers Association and the Georgia Association of Black Women Attorneys.
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
Issuing Judgment After Confirmation of Appraisal Award Overturned
May 01, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeal reversed and remanded the trial court's judgment in favor of the insured because after confirming the appraisal award, judgment was issued before the insurer could offer policy defenses. State Farm Florida Ins. Co. v. Hochreiter, 2023 Fla. App. LEXIS 743 (Fla. Ct. App. Feb. 3, 2023.
After a dispute arose over the scope and amount of damage suffered by the insureds' roof, they sued State Farm. State Farm responded to the complaint by demanding an appraisal, a stay of litigation, and an extension of time to respond to the complaint.
The trial court granted the demand and retained jurisdiction regarding post-appraisal matters once the appraisal was complete. The court further ordered State Farm to respond to the complaint within twenty days of the conclusion of the appraisal "if any issues remain." The order did not specify whether the issues that remained had to relate to the initial appraisal stage of the litigation or the subsequent stage during which the trial court had jurisdiction to adjudicate disputed issues related to coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Sarah P. Long Expands Insurance Coverage Team at Payne & Fears
March 19, 2024 —
Payne & Fears LLPSarah P. Long has joined Payne & Fears LLP as a Partner in the firm’s Insurance Coverage and Litigation Group. Sarah has represented clients in all aspects of insurance coverage and litigation and also focus on construction defect claims and litigation.
Before joining Payne & Fears, Sarah was a partner at Koeller, Nebeker, Carlson, Haluck, LLP, where she represented many of the nation’s builders in construction defect actions and bad faith insurance coverage disputes for 17 years.
Known for her dependability, efficiency, and creative problem-solving, Sarah always strives to secure the best results for her clients in the most efficient manner.
“We are excited to welcome Sarah to P&F as we continue to expand and add depth to our Insurance Litigation Group. I have known Sarah in a professional and personal capacity for more than 16 years. She is well respected by clients and peers in the legal profession. She is a bright, efficient, and innovative attorney and a wonderful person,” said Sarah Odia, the group’s co-chair.
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Payne & Fears LLP
Construction Costs Must Be Reasonable
May 17, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to proving a construction cost, particularly a cost in dispute, the cost must be REASONABLE. Costs subject to claims must be reasonably incurred and the party incurring the costs must show the costs are reasonable.
An example of the burden falling on the contractor to prove the reasonableness of costs is found in government contracting.
“[T]here is no presumption that a [government] contractor is entitled to reimbursement ‘simply because it incurred…costs.’” Kellogg Brown & Root Services, Inc. v. Secretary of Army, 973 F.3d 1366, 1371 (Fed. Cir. 2020) (citation omitted). Stated differently, a federal contractor is not entitled to a presumption of reasonableness just because it incurs costs. Id.
In government contracting, the Federal Acquisition Regulations (known as “FAR”) puts the burden of reasonableness on the contractor that incurred the costs. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
"On Second Thought"
October 28, 2024 —
Daniel Lund III - LexologyRehearing requests are seldom granted by courts, and when they are, there’s usually something uniquely compelling in the request and the granting.
So is the case in a matter involving monies deposited in the registry of the federal court in New Orleans related to work performed on cleanup after Hurricanes Maria and Irma in the U.S. Virgin Islands. The party depositing monies – which represented subcontract sums paid to it by the general contractor – held back several hundred thousand dollars based on withholding provisions in the various contracts in play. The Court was tasked with evaluating not only a pay-when-paid provision in the subcontract of the claiming party, but also incorporation of the terms of a higher tiered contract which allowed for the withholding.
The Court initially granted summary judgment allowing the monies to be withheld. However, on request for rehearing, it was pointed up that while monies could be retained for purposes of covering attorney’s fees and costs related to litigation initiated by the plaintiff subcontractor’s vendors, there was a particular process for that withholding – and an assertion that the process was not followed.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com