Gordon & Rees Ranked #4 of Top 50 Construction Law Firms in the Nation by Construction Executive Magazine
July 11, 2022 —
GRSM Construction Team - Gordon & Rees Construction Law BlogGordon Rees Scully Mansukhani has been ranked as the No. 4 construction law firm in the nation by Construction Executive in the magazine’s 2022 ranking of The Top 50 Construction Law Firms™. As the only law firm with offices and attorneys in all 50 states, Gordon & Rees’ construction group (with over 150 construction lawyers) delivers maximum value to our clients by understanding their business and combining the resources of a full-service national firm with the local knowledge of a regional firm.
Led by Allen Estes and Angela Richie, the construction lawyers at Gordon & Rees are uniquely situated to serve our construction clients. We have attorneys with professional training and practical experience in related fields such as engineering and construction management, as well as lawyers with leadership experience in various construction industry related trade associations, legal advisory committees and government agencies. “If a client is looking for a legal partner in multiple states who understands their business, Gordon & Rees is that partner,” said Angela Richie.
Read the court decisionRead the full story...Reprinted courtesy of
GRSM Construction Team, Gordon Rees Scully Mansukhani
Court Finds Duty To Defend Environmental Claim, But Defense Limited to $100,000
August 14, 2023 —
Tred R. Eyerly - Insurance Law HawaiiWhile agreeing with the insured there was a duty to defend, the court determined the defense of an environmental claims was limited to $100,000. Casa Nido Partnership v. JAE Kwon, 2023 U.S. Dist. LEXIS 97701 (N.D. Calif. June 5, 2023).
In 1976, Casa Nido purchased the property and remains the current owner to this day. Catherine O'Hanks owned and operated a dry-cleaning facility at the property from 1960 to 1992.
In August 2016, Casa Nido learned of Tetrachloroethylene (PCE) subsurface contamination. Casa Nido stipulated that it did not know, nor had any reason to know, before 2016, of the existence of the subsurface contamination. Casa Nido alleged that due to equipment malfunction or improper usage, there were sudden and accidental spills and equipment overflows of PCE during the 32-year period that defendant O'Hanks operated the dry-cleaning business on the property. Casa Nido spent hundreds of thousands of dollars remediating the environmental damage.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court Finds That $400 Million Paid Into Abatement Fund Qualifies as “Damages” Under the Insured’s Policies
November 21, 2022 —
Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery BlogIn
Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, et al., the Court of Appeals for Ohio’s Eighth District reversed the lower court, finding that money paid by the insured into an abatement fund was “damages” as that undefined term was used in the policyholder’s insurance policies. 2022-Ohio-3031, ¶ 1. Sherwin-Williams is a cautionary tale about how insurers may try to narrow the meaning of undefined terms in their insurance policies.
The dispute in Sherwin-Williams focused on coverage for $400 million that the policyholder and other defendants were ordered to pay into an abatement fund to be used by California cities and counties to mitigate the hazards caused by lead paint in homes. Id. ¶ 1. Although the underlying litigation proceeded in California, Ohio law governed coverage, which raised issues of first impression in Ohio. Id. Among other things, the insurers argued that the money paid into the abatement fund did not qualify as “damages” under the policies. Id. ¶ 57. The insured argued that, because the insurers did not define “damages” in the policies, the term had to be given its ordinary meaning. Id. ¶ 56.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
Read the court decisionRead the full story...Reprinted courtesy of
Mitsubishi Estate to Rebuild Apartments After Defects Found
March 19, 2014 —
Kathleen Chu and Takahiko Hyuga – BloombergMitsubishi Estate Co. (8802), Japan’s biggest developer by market value, will rebuild a Tokyo residential complex where it stopped selling apartments that went for as much as 350 million yen ($3.4 million) after finding defects.
The reconstruction will take about three to four years to complete, and builder Kajima Corp. will be in charge of the project and cover the cost, said Masayuki Watanabe, a spokesman at Tokyo-based Mitsubishi Estate. The building was constructed by Kajima along with Kandenko (1942) Co., according to the developer.
Mitsubishi Estate stopped selling apartments in the building in central Tokyo’s upscale Aoyama neighborhood after finding it needed repairs, including to some of the pipes, the developer said in an e-mail on Feb. 3. Eighty-three out of 86 units were under contract and were expected to be handed over to the owners on March 20, the company said last month.
Ms. Chu may be contacted at kchu2@bloomberg.net; Mr. Hyuga may be contacted at thyuga@bloomberg.net
Read the court decisionRead the full story...Reprinted courtesy of
Kathleen Chu and Takahiko Hyuga, Bloomberg
Don’t Put Yourself In The Position Of Defending Against An Accord And Satisfaction Defense
October 10, 2022 —
David Adelstein - Florida Construction Legal UpdatesThe doctrine of accord and satisfaction lives and breathes in disputes including construction disputes. Unfortunately, a contractor, in the case discussed below, found out the hard way after it cashed checks that were accompanied with a letter that clearly indicated the checks were final payment. Once those payments were cashed, there was no “buyer’s remorse” that would allow it to still pursue disputed amounts. Remember this the next time you accept and cash a payment that says on the check it is full and final payment OR is accompanied by a letter that makes clear the payment is full and final payment. If you cash it, there is no second bite out of the apple, so to speak. If you are not interested in the payment being full and final payment, return the check. If you are not sure, either return the check or inquire and get that response in writing. Don’t put yourself in the position of defending against an
accord and satisfaction defense.
Even without the doctrine of accord and satisfaction, the contract between the contractor and owner discussed below made clear that contractor’s acceptance of final payment meant that contractor was unconditionally waiving other claims against the owner, further reinforcing that there would be no second bite out of the apple.
The morale:
(1) read the letter that accompanies a check and do NOT cash a check that indicates it is for final payment unless you are prepared to accept that amount; and
(2) read your contract to understand any contractual obligation that kicks-in with the acceptance of final payment.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Insurers' Motion to Void Coverage for Failure to Attend EUO Denied
January 04, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment and disposal of the insureds' claim due to failure to attend an examination under oath (EUO) was denied. Perkins v Syndicate 4242 of Lloyd's of London, 2022 U.S. Dist. LEXIS 196922 (W.D. La. Oct. 28, 2022).
The insureds' home suffered damage from Hurricane Laura on August 27, 2020, and Hurricane Delta on October 9, 2020. The insureds reported damage after Hurricane Laura under the homeowners policy. They filed suit in August 2021, alleging that Lloyds failed to adequately inspect their claims. The court issued a Case Management Order (CMO) that governed initial disclosures and the parties' participation in a streamlined settlement process for hurricane claims. The dispute did not settle, however, so the matter was set for a bench trial.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
City of Seattle Temporarily Shuts Down Public Works to Enforce Health and Safety Plans
April 13, 2020 —
Masaki J. Yamada - Ahlers Cressman & Sleight BlogThe Governor’s Stay Home, Stay Safe Order mandates that essential businesses must establish and implement social distancing and sanitation measures established by OSHA and the WA State DOH:
With construction work continuing on essential construction projects, some jurisdictions, such as the City of Seattle, are taking additional steps to enforce and oversee the establishment and implementation of updated Health and Safety plans on construction projects. The City of Seattle’s Mayor Jenny Durkan announced yesterday a two-day temporary suspension of Public Works construction beginning on Thursday, April 9th, to conduct health and safety training for workers and update protocols. The announcement may be viewed here. The City of Seattle also sent a letter in this regard and asked all contractors and owners provide project-specific responses to the Washington Building Trades COVID-19 Construction Industry Emergency Requirements. Herein are the links to the
letter and attached
requirements.
Read the court decisionRead the full story...Reprinted courtesy of
Masaki J. Yamada, Ahlers Cressman & SleightMr. Yamada may be contacted at
masaki.yamada@acslawyers.com
The United States Court of Appeals, Fourth Circuit, Finds Wrap-Up Exclusion Does Not Bar Coverage of Additional Insureds
February 18, 2020 —
Callie E. Waers - Florida Construction Law NewsThe United States Court of Appeals, Fourth Circuit, recently took a close look at the application of a “controlled insurance program exclusion” (wrap-up exclusion) to additional insureds on a commercial general liability policy. In Cont’l Cas. Co. v. Amerisure Ins. Co., 886 F.3d 366 (4th Cir. 2018), the Fourth Circuit examined the interplay of an enrolled party’s additional insured status on an unenrolled party’s commercial general liability (“CGL”) policy with a wrap-up exclusion. The court applied North Carolina law and found that pursuant to the policy’s own language, the exclusion only applied to the original named insured, not the additional insureds.
The case arose out of an injury incurred by an employee of a second-tier subcontractor during the construction of a hospital. On this particular project, the owner maintained a “rolling owner controlled insurance program” (wrap-up insurance program) in which all tiers of contractors were required to enroll, but enrollment was not automatic. The general contractor was enrolled in the owner’s wrap-up policy, but neither the steel manufacturer subcontractor nor its sub-subcontractor, the steel installation company, were enrolled. The underlying plaintiff was injured while he was an employee of the steel installation company, but he did not name his employer in his personal injury lawsuit.
The Cont’l Cas. Co. case was instituted by Continental Casualty Company (“Continental”) after it defended and settled the underlying plaintiff’s claims against its insured and additional insured, the steel manufacturer and general contractor, respectively. Continental sought to be reimbursed for the $1.7 million settlement and attorneys’ fees and costs incurred for the defense and indemnity of the underlying lawsuit.
Continental alleged that Amerisure Insurance Company (“Amerisure”) breached its duty to defend and Amerisure’s policy provided the primary coverage for both the general contractor and steel manufacturer, who were additional insureds on the Amerisure policy. Amerisure denied a duty to defend the additional insureds based on the presence of the wrap-up exclusion.
Read the court decisionRead the full story...Reprinted courtesy of
Ryan M. Charlson, Cole, Scott & Kissane, P.A.Mr. Charlson may be contacted at
Ryan.Charlson@csklegal.com
