Additional Insured Not Covered Where Injury Does Not Arise Out Of Insured's Work
April 15, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court found the contractor did not have coverage as an additional insured under the subcontractor's policy. Walton Constr. v. First Fin. Ins. Co., 2015 US. Dist. LEXIS 30710 (E.D. La. March 12, 2015).
John Maestri was injured while working on a construction project for the Jefferson Parish School Board. Maestri was a commercial glazier for A-1 Glass Services Inc. A-1 was a subcontractor for Walton Construction. While Maestri was installing glass on the project, a high-voltage power line maintained by Entergy Louisiana, LLC electrocuted him, causing burns on his body.
Maestri sued Entergy. Entergy filed a third-party complaint against A-1 and Walton, alleging that the Louisiana Overhead Power Line Safety Act had been violated by failing to give advance notice that their workers would be working near the power lines. Entergy argued that under the statute, A-1 and Walton are liable for any damages that Entergy had to pay Maestri.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Ghosts of Projects Past
December 17, 2015 —
Craig Martin – Construction Contractor AdvisorSean Minahan, one of my partners, and I were discussing a construction dispute the other day and we commented again and again about the significant organization required to get a construction project to completion. From the contracts, to the schedule, to the funding—everything has to be in lock step or there will be problems that could bring the project to a halt, or worse yet litigation.
The same is true of construction claims. To present a claim effectively, it has to be simple. But, to make it simple will require substantial documentation and organization of all aspects of a claim.
This point was driven home this week when I received Long International’s Construction Claims Analysis Checklist Long International. The Checklist is 11 pages long and identifies various aspects of a claim, from the simple to the complicated.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
D&O Insurer Must Cover Mortgage Broker’s $15 Million Settlement of Alleged False Claims Act Violations
November 15, 2022 —
Michael S. Levine, Geoffrey B. Fehling & Matthew J. Revis - Hunton Insurance Recovery BlogA Delaware court recently
granted summary judgment to a mortgage broker targeted in a federal government investigation for alleged False Claims Act violations, holding that the company’s directors and officers liability (“D&O”) insurer was required to indemnify more than $15 million in settlement costs with the U.S. Department of Justice. Guaranteed Rate, Inc. v. ACE American Insurance Company, No. N20C-04-268 MMJ CCLD (Del. Super. Ct. Sept. 6, 2022). We
previously reported on the policyholder’s earlier victory in this case, in which the court held that a Civil Investigative Demand (“CID”) from federal authorities triggered the insurer’s obligation to pay defense costs under the D&O policy.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth,
Geoffrey B. Fehling, Hunton Andrews Kurth and
Matthew J. Revis, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Mr. Revis may be contacted at mrevis@HuntonAK.com
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Construction Law Alert: Builder’s Alternative Pre-litigation Procedures Upheld Over Strong Opposition
April 01, 2014 —
Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLPLast week, the Court of Appeal, Fifth Appellate District, was tasked with evaluating the enforceability of provisions in home purchase contracts containing alternative pre-litigation procedures which differ from the standard Right to Repair Act procedures. The Court of Appeal, in McCaffrey v. Superior Court of Fresno, et al. ultimately upheld the contractual provisions, and in overturning the trial court's decision, preserved the rights of builders to contract around certain requirements set forth in the Right to Repair Act.
The McCaffrey Group, Inc. constructed single-family homes in a Fresno development. Plaintiffs consisted of 24 homeowners within the development who brought suit against McCaffrey for construction defects in their homes. The homeowners were comprised of three categories: (1) the original purchasers who bought their homes from McCaffrey before January 1, 2003 and had a 2001 version of McCaffrey's contract; (2) the original purchasers who bought their homes from McCaffrey on or after January 1, 2003 and signed a 2003 version of McCaffrey's contract; and (3) the subsequent purchasers who did not buy their homes directly from McCaffrey, but purchased their homes subject to either the 2001 or 2003 version of McCaffrey's home purchase agreement.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Whitney L. Stefko, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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Court Exclaims “Enough!” To Homeowner Who Kept Raising Wrongful Foreclosure Claims
April 01, 2015 —
Krsto Mijanovic and Annette F. Mijanovic – Haight Brown & Bonesteel LLP“There are no free houses,” began the decision issued by the Court of Appeal on March 23, 2015 in Boyce v. T.D. Service Company (B255958). Examining three years of litigation in bankruptcy court, unlawful detainer court, and the superior court, and each of their respective appellate courts, the Court of Appeal held that the plaintiff’s wrongful foreclosure claims were barred by res judicata and collateral estoppel.
Plaintiff was a borrower who purchased a home subject to a deed of trust. After plaintiff defaulted on the loan, nonjudicial foreclosure proceedings were initiated. To avoid foreclosure, plaintiff engaged in a series of stall tactics, including filing an emergency bankruptcy petition, appealing the bankruptcy court’s decision to grant the trustee relief of stay, refusing to leave the property following the trustee’s sale thereby causing an unlawful detainer action to be filed, and appealing the granting of summary judgment in favor of the defendants in the unlawful detainer action. Once evicted, plaintiff sued all the entities involved in the foreclosure process for wrongful foreclosure, declaratory relief, violation of Unfair Practices Act, and quiet title. When the trial court sustained the defendants’ demurrers on the grounds of res judicata/collateral estoppel, plaintiff naturally appealed.
Reprinted courtesy of
Krsto Mijanovic, Haight Brown & Bonesteel LLP and
Annette F. Mijanovic, Haight Brown & Bonesteel LLP
Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com
Ms. Mijanovic may be contacted at amijanovic@hbblaw.com
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Building in the Age of Technology: Improving Profitability and Jobsite Safety
June 10, 2019 —
Maria Laguarda-Mallo - Construction ExecutiveNew virtual design and construction (VDC) technologies are quickly shifting how the AEC industry is designing, documenting and building. From the use of new software, apps and laser scanners, to the deployment of drones and robots, many early adopters are benefitting from fully integrating these solutions into their workflows.
Virtual and Augmented Reality
In an industry where collaboration is becoming increasingly important, regardless of the firm size, VR is enabling stakeholders to “see” and “walk” through a building before ground is broken. In other words, teams can foresee issues, ask questions and provide feedback in the preconstruction phase.
The inclusion of AR and VR in the daily workflows of AEC firms signifies expedited decision-making, reduced rework and real-time collaboration, which in turn translates to a reduction of unexpected costs.
Reprinted courtesy of
Maria Laguarda-Mallo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Laguarda-Mayllo may be contacted at
maria.laguarda-mallo@viatechnik.com
First Railroad Bridge Between Russia and China Set to Open
August 06, 2019 —
Saibal Dasgupta - Engineering News-RecordWork was completed on the first-ever railroad bridge connecting Russia to China in early April, as Russian engineers installed the final steel beam in its section of the structure over the river called the Amur in Russian and the Heilongjiang. China finished its part of the work last October, as the structure successfully spanned the world's 10th longest river, which markets the boundary between the two countries. Officials say the bridge will open for public use after the necessary inspections in July this year.
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Saibal Dasgupta, ENRENR may be contacted at
ENR.com@bnpmedia.com
Ohio: Are Construction Defects Covered in Insurance Policies?
January 09, 2015 —
Beverley BevenFlorez-CDJ STAFFAmanda M. Leffler of Brouse McDowell analyzed Ohio’s 2012 Supreme Court case Westfield Ins. Co. v. Custom Agri Sys., Inc., which ruled that “’[c]laims of defective construction or workmanship brought by a property owner are not claims for ‘property damage’ caused by an ‘occurrence’ under a commercial general liability policy.’”
Leffler stated that the Ohio Supreme Court decision wasn’t as “sweeping” as it might at first appear: “Rather, the Ohio Supreme Court adopted the rule that construction defects are covered ‘occurrences’ within the meaning of commercial general liability (‘CGL’) policies, but only to the extent that property other than the policyholder’s own work is damaged.“
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