Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?
January 17, 2023 —
Christopher G. Hill - Construction Law MusingsAll Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.”
A recent case in Fairfax County, Virginia,
Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
New WA Law Caps Retainage on Private Projects at 5%
May 29, 2023 —
Brett M. Hill & Ryanne S. Mathisen - Ahlers Cressman & Sleight PLLCThis month, Governor Jay Inslee signed into law a new statute that caps retainage on private construction projects to five percent (5%), provides a mechanism for subcontractors to get paid their retainage prior to project completion, and allows for contractors and subcontractors to post a retainage bond and get paid their retainage early. For those interested in reading the full text of this new law, the statute can be found
here.
The new statute goes into effect on July 23, 2023. Under the statute, when a contractor or subcontractor considers their work under a contract subject to retainage complete, they may notify the party they contracted to perform the work for. Within 15 days of receiving the notice of completion of work, the party receiving the notice must respond with either (1) notice of acceptance of work or (2) notice of uncompleted items to the contractor or subcontractor.
If the party receiving notice does not provide notice of uncompleted items within 15 days or fails to respond to the notice of completion entirely, the unpaid retainage will begin to accrue interest at a rate of one percent (1%) per month, 30 days after the initial 15-day period. However, this interest will not accrue against a contractor who has not been paid the retainage by an upper-tier contractor or owner until payment has been received, so long as that contractor has submitted its subcontractor’s notice of completion to the upper-tier contractor or owner within 30 days of receipt.
Reprinted courtesy of
Brett M. Hill, Ahlers Cressman & Sleight PLLC and
Ryanne S. Mathisen, Ahlers Cressman & Sleight PLLC
Mr. Hill may be contacted at brett.hill@acslawyers.com
Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com
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Ten ACS Lawyers Recognized as Super Lawyers or Rising Stars
August 30, 2021 —
Cameron Sheldon - Ahlers Cressman & Sleight PLLCACS is very honored and pleased to announce ten members of our firm were awarded the distinction of top attorneys in Washington. Our blog articles usually cover Construction Legal News, but we feel this is a newsworthy accolade to be shared with friends and clients.
To become candidates to receiving the Super Lawyer nomination, lawyers are nominated by a peer or identified by research. After completing this first step in the process, Super Lawyer’s research department analyzes 12 indicators, such as experience, honors/awards, verdicts/settlements, and others. As for the third step, there is a peer evaluation by practice area. Finally, for step four, candidates are grouped into four firm-size categories. In other words, solo and small firm lawyers are compared only with other solo and small firm lawyers, and large firm lawyers are compared with other large firm lawyers. The process is very selective and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers.
John P. Ahlers, one of the firm’s founding partners, was recognized as
the third Top Lawyer out of all Washington lawyers in the State.
Named partner Scott R. Sleight and partner Brett M. Hill were both recognized as one of the 100-Best Lawyers in the State.
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Cameron Sheldon, Ahlers Cressman & Sleight PLLCMs. Sheldon may be contacted at
cameron.sheldon@acslawyers.com
On the Ten Year Anniversary of the JOBS Act A Look-Back at the Development of Crowdfunding
May 02, 2022 —
J. Kyle Janecek & Jeffrey M. Dennis - Newmeyer DillionLast month marked the ten-year anniversary of the Jumpstart Our Business Startups (JOBS) Act, which was signed into law by President Obama on April 5, 2012. On May 16, 2016, Title III of the JOBS Act was enacted, as the final piece of the JOBS Act, which gave businesses better access to crowdfunding tactics due to the ability to raise funds based on equity. Today, the JOBS Act and the impact of equity crowdfunding more generally has grown among multiple industries, from entertainment and technology to real estate and construction, and has come a long way from the non-equity crowdfunding of Kickstarter and Indiegogo. So what have been the powers that businesses gained from Title III of the JOBS Act? What has been the impact of the last ten years? Where do businesses go from here to better utilize this source of funding?
WHAT ARE THE CROWDFUNDING POWERS GIVEN BY THE JOBS ACT?
The main difference and change that the JOBS Act had on the field of "crowdfunding" was that for the first time, unaccredited investors could obtain equity stakes in businesses through online solicitations. However, a business was still required to go through the proper approved channels, like accredited crowdfunding portals to solicit and receive funding. Prior to this, crowdfunding had gotten more of an impact and reputation from platforms like Kickstarter and Indiegogo, platforms that benefitted creative works or could act as a "pre-order" system with no guaranty of performance or quality of goods by the party seeking funds.
Reprinted courtesy of
J. Kyle Janecek, Newmeyer Dillion and
Jeffrey M. Dennis, Newmeyer Dillion
Mr. Janecek may be contacted at kyle.janecek@ndlf.com
Mr. Dennis may be contacted at jeff.dennis@ndlf.com
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LaGuardia Airport Is a Mess. An Engineer-Turned-Fund Manager Has a Fix
May 26, 2019 —
Sree Vidya Bhaktavatsalam - BloombergThierry Déau’s engineering training in France led him early in his career to building government-funded infrastructure. But it was his entrepreneur father back home in Martinique who inspired him to strike out on his own in 2005. He started Paris-based Meridiam to finance, build, and manage long-term projects. Now, with €7 billion ($7.83 billion) in seven funds and nine offices across Europe, the Middle East, Africa, and North America, Meridiam is playing a key role in high-profile projects such as the upgrade of New York’s LaGuardia Airport and a road tunnel under the Port of Miami. Déau describes Meridiam’s investment approach in an interview with Bloomberg Markets.
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Sree Vidya Bhaktavatsalam, Bloomberg
Florida Governor Signs COVID-19 Liability Shield
May 17, 2021 —
Andrea de Oña - Lewis BrisboisOn March 29, 2021, Florida Governor Ron DeSantis signed into law Florida Statute 768.38, granting significant protections to business entities, educational institutions, governmental entities, and religious institutions from claims related to COVID-19 if they made a good faith effort to follow guidelines to prevent the spread of the coronavirus. The law is effective immediately and applies to actions filed after March 29, 2021.
Recognizing the financial impact that the pandemic has had across the State of Florida, the new law aims to dissuade potential claimants from filing meritless claims for personal injuries, wrongful death, or other damages allegedly due to COVID-19 exposure in a few key ways.
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Andrea de Oña, Lewis BrisboisMs. Oña may be contacted at
Andrea.deOna@lewisbrisbois.com
New York Court Grants Insured's Motion to Dismiss Construction Defect Case and Awards Fees to Insured
February 05, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe New York Supreme Court granted the insured's motion to dismiss the insurer's complaint seeking relief on its duty to indemnity and awarded fees to the insured. Utica Mut. Ins. Co. v. Crystal Curtain Wall Sys. Corp., 2023 N.Y. Misc. LEXIS 22368 (N.Y. Sup. Ct. Nov. 27, 2023).
The case arose from a construction-related property damage action. Crystal entered a subcontract with the general contractor to design and install window and curtain systems in mixed residential and commercial buildings. When unit owners took possession, water infiltration during a rainstorm caused property damage and moldy conditions.
The unit owners sued asserting claims against Crystal for the cost of repair or replacement of the allegedly defective curtain wall, damage to unit owners' personal property, diminution in value of the units, and delay damages consisting of increasing interest and carrying costs.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurance Law Alert: California Supreme Court Limits Advertising Injury Coverage for Disparagement
June 18, 2014 —
Valerie A. Moore and Chris Kendrick - Haight Brown & Bonesteel LLPIn Hartford Casualty Ins. v. Swift Distribution (No. S207172, filed 6/12/14), the California Supreme Court affirmed a 2012 appeals court holding that there is no advertising injury coverage on a theory of trade disparagement if the competitor's advertisements do not expressly refer to the plaintiff's product and do not disparage the plaintiff's product or business. In doing so, the Supreme Court expressly disapproved Travelers Property Casualty Company of America v. Charlotte Russe Holding, Inc. (2012) 207 Cal.App.4th 969 ("Charlotte Russe"), which held that coverage could be triggered for "implied disparagement" by allegations that a retailer's heavy discounts on a manufacturer's premium apparel suggest to consumers that the manufacturer's products are of inferior quality.
In Hartford v. Swift the plaintiff, Dahl, held a patent for the "Multi-Cart," a collapsible cart that could be manipulated into different configurations. When Dahl's competitor Ultimate began marketing the "Ulti-Cart," Dahl sued alleging that Ultimate impermissibly manufactured, marketed, and sold the Ulti-Cart, which infringed patents and trademarks for Multi-Cart and diluted Dahl's trademark. Dahl alleged patent and trademark infringement, unfair competition, dilution of a famous mark, and misleading advertising arising from Ultimate's sale of Ulti-Carts. However, the advertisements for Ulti-Cart did not name the Multi-Cart, Dahl, or any other products beside the Ulti-Cart.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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