Court of Appeal Puts the “Equity” in Equitable Subrogation
October 05, 2020 —
Garret Murai - California Construction Law BlogSubrogation as a concept is well understood in insurance circles. According to the Institute of Risk Management Institute’s glossary of insurance terms subrogation is “the assignment to an insurer by the terms of [a] policy or by law, after payment of a loss, of the rights fo the insured to recover the amount of the loss from one legally liable for it.” In other words, if an insurer comes out of pocket for something someone else broke, the insurer can turn to that responsible party for reimbursement of its out of pocket costs.
Typically, subrogation is, as stated in IRMI’s glossary of insurance terms, a matter of contract and the rights and responsibilities of parties are set forth within the terms of a policy. However, subrogation may, as stated in IRMI’s glossary, also be matter of law. And this is where equitable subrogation comes in.
“Equitable subrogation,” according to IRMI, is “the right of subrogation granted under common law when one party has made a payment on behalf of another and becomes entitled to whatever recovery rights the other party has against a responsible third party.”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Domtar Update
June 11, 2014 —
Robert M. Caplan – White and Williams LLPOn May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”
In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
Is the Obsession With Recordable Injury Rates a Deadly Safety Distraction?
May 16, 2022 —
Richard Korman - Engineering News-RecordOn the first morning of 2021, laborer Mason Mack Harris, 25, reported for work that would have qualified for extra holiday pay. On that New Year’s Day, the onsite manager for his employer, Midwest Demolition Co., assigned Harris and a workmate to complete demolition of a 9-ft-high concrete balcony slab at a children’s home renovation project in Lincoln, Neb. According to U.S. Labor Dept. records, they used a concrete saw since neighbors had complained about jackhammer noise from earlier work.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Living With a Millennial. Or Grandma.
July 23, 2014 —
Zara Kessler – BloombergIt turns out millennials really do live in their parents’ houses -- at least according to a Pew Research Center report out today.
Almost 57 million people in the U.S. -- 18.1 percent of the population -- lived in a multigenerational household in 2012, including almost one in four 25- to 34-year-olds. This provides needed context to the "millennials living in the basement" phenomenon, and, well, stereotype.
Of course, "multigenerational household" is not synonymous with "millennial living in the basement." Pew's definition of the former term is more expansive than the one used by the U.S. Census Bureau (whose data Pew analyzes in the report). There's more detail in the report, but here’s the Sparknotes version:
A multi-generational household is a household that includes at least two adult generations (for example, parents and adult children ages 25 or older where either generation can be the household head) or two non-sequential generations (for example, grandparents and grandchildren of any age).
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Zara Kessler, BloombergMs. Kessler may be contacted at
zkessler@bloomberg.net
Documenting Contract Changes in Construction
December 07, 2020 —
J.D. Holzheauser - Construction ExecutiveConstruction projects are almost inevitably subject to changes in the contract. A fundamental understanding of construction changes, how those changes are governed and what is necessary to ensure a complete change are of paramount importance to all parties involved in a construction project. This article is not a treatise on construction contract changes; rather, it provides advice on actions a contractor can take during construction that will help the contractor recover time or money when a contract’s schedule or scope of work needs to be changed.
Changes Defined
Changes to a construction project affect two broad spheres—timing and scope of work. Changes usually present themselves as either a change order or a change directive. Each may go by a different name depending on the contractual scheme in the project’s prime contract, but they essentially have the same characteristics.
The difference between a change order and a change directive is one of agreement. A change order (in the owner-prime contractor context) occurs when the contractor and the owner agree to a change in the timing or scope of work in the contract. Normally, the change order is a written agreement to change the contract and is executed by the contractor and owner.
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J.D. Holzheauser, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Holzheauser may be contacted at jdholzheauser@pecklaw.com
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Three Kahana Feld Attorneys Selected to 2024 NY Metro Super Lawyers Lists
October 28, 2024 —
Linda Carter - Kahana FeldKahana Feld is pleased to announce that
Tim Capowski was selected to the 2024 NY Metro Super Lawyers list, and
Christopher Theobalt and
Sofya Uvaydov were selected to the 2024 NY Metro Rising Stars list. All three attorneys were recognized in the Appellate practice area.
Tim Capowski is a partner at Kahana Feld and chair of the firm’s
National Appellate Litigation & Consulting Group. He has spent the better part of three decades at the forefront of the insurance defense bar. Tim has litigated hundreds of appeals and thousands of motions in state and federal and appellate courts throughout New York and around the country. He handles a variety of complex litigation including catastrophic property and casualty claims, construction defect, professional liability, labor and employment law, mass torts, insurance coverage, and more.
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Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
Court Dismisses Cross Claims Against Utility Based on Construction Anti-Indemnity Statute
August 14, 2018 —
David R. Cook - Autry, Hall & Cook, LLPWhen a plane crashed and several passengers and crew died or were injured, their representatives sued several defendants, including a nearby plant owner, Milliken & Company (“Plant Owner”), based on claims that transmission lines on Plant Owner’s property were too close to the runways, were too high, and encroached on the airport easements. Plant Owner cross claimed against utility owner, Georgia Power Company (“Utility”). Plant Owner’s claim was based on an easement it granted to Utility, which required Utility to indemnify it for any claims arising out of Utility’s construction or maintenance of the transmission lines.
In defense, Utility argued that the easement’s indemnity provision violated Georgia’s construction anti-indemnity statute.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
It’s All a Matter of [Statutory] Construction: Supreme Court Narrowly Interprets the Good Faith Dispute Exception to Prompt Payment Requirements in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co.
May 30, 2018 —
Erinn Contreras & Joy O. Siu - Sheppard Mullin Construction & Infrastructure Law BlogOn May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good faith” exception to the general rule that a direct contractor must make retention payments to its subcontractors within 10 days of receiving any retention payment. The exception provides that “[i]f a good faith dispute exists between the direct contractor and a subcontractor, the direct contractor may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” Cal. Civ. Code section 8814(c).
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Erinn Contreras, Sheppard Mullin and
Joy O. Siu, Sheppard Mullin
Ms. Contreras may be contacted at econtreras@sheppardmullin.com
Ms. Siu may be contacted at jsiu@sheppardmullin.com
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