Eighth Circuit Considers Judicial Estoppel in Hazardous Substance Release-Related Personal Injury Case
April 11, 2018 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog On April 5, the U.S. Court of Appeals for the Eighth Circuit decided the case of
Kirk v. Schaeffler Group USA, Inc., et al., a personal injury action commenced in the U.S. District Court for the Western District of Missouri alleging injury resulting from the release of thousands of gallons of trichloroethylene (TCE) at the FAG Bearings Corporation’s (FAG Bearings) facility in Joplin, MO. The Court of Appeals reversed the District Court’s judicial estoppel ruling on the successor liability issue and concluded that the jury’s verdict on compensatory damages stands but their general verdict requires a new trial on Plaintiff’s punitive damages claim against FAG Bearings.
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Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLPMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
The 2019 ISO Forms: Additions, Revisions, and Pitfalls
February 24, 2020 —
Richard W. Brown, Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & Vita, P.C.The Insurance Services Office, Inc. (ISO) issued several new and revised endorsements for use with Commercial General Liability (CGL) coverage forms, which became effective December 1, 2019, in most jurisdictions. The new ISO endorsements include several notable changes that Policyholders should be aware of, including revisions to existing Additional Insured (AI), Primary and Noncontributory, and Waiver of Subrogation endorsements, as well as a number of new AI and other endorsement forms. A summary of the more significant elements of new ISO endorsements is provided below.
NEW ISO FORMS
- New AI Endorsements - Automatic Status for Completed Operations
For Contractors, Owners and other construction industry stakeholders, there are two new AI endorsements of note, CG 20 39 12 19 – Additional Insured – Owners, Lessee or Contractors – Automatic Status when Required in Written Construction Agreement with You (Completed Operations) and CG 20 40 12 19 – Additional Insured – Owners Lessees or Contractors – Automatic Status for Other Parties when Required in Written Construction Agreement (Completed Operations). AI coverage for Completed Operations is generally provided under form CG 20 37, which requires each additional insured to be listed in the endorsement schedule. The new ISO endorsements automatically extend AI status for Completed Operations without having to specifically identify each additional insured, thereby mirroring current AI endorsements that confer automatic AI status for Ongoing Operations (e.g. CG 20 33 and CG 20 38). Thus, the CG 20 39 and CG 20 40, correspond with CG 20 33 (ongoing operations), and CG 20 38 (ongoing operations), respectively, to extend AI coverage for Completed Operations.
Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys
Richard Brown,
Michael V. Pepe and
Janie Reilly Eddy
Mr. Brown may be contacted at rwb@sdvlaw.com
Mr. Pepe may be contacted at mvp@sdvlaw.com
Ms. Eddy may be contacted at jre@sdvlaw.com
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Litigation Counsel of America Honors Partner Victor Anderson with Peter Perlman Award
November 10, 2016 —
Victor R. Anderson, III – Haight Brown & Bonesteel LLPPartner Victor R. Anderson, III received the Peter Perlman Service Award in recognition of his efforts to improve the lives of others through his community service and charity work. The awards are presented to select attorneys throughout the year by the Litigation Counsel of America (LCA) to candidates whose exemplary contributions merit commendation.
The Litigation Counsel of America is a close-knit, peer-selected, and aggressively diverse honorary society of 3,500 of the best trial lawyers. Less than one-half of one percent of American lawyers, vigorously vetted for skills, expertise, and service are invited to be on the Counsel.
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Victor R. Anderson, III, Haight Brown & Bonesteel LLPMr. Anderson may be contacted at
vanderson@hbblaw.com
Ohio Supreme Court Holds No Occurence Arises from Subcontractor's Faulty Workmanship
January 09, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe Ohio Supreme Court bucked the modern trend by finding that there was no coverage under CGL policy's the subcontractor's exception for faulty workmanship claimed against the insured. Ohio N. Univ. v. Charles Constr. Servs. 2018 Ohio LEXIS 2375 (Ohio Oct. 9, 2018).
The University contracted with Charles Construction Services, Inc. to build a new luxury hotel and conference center on campus. After work was completed, the University discovered extensive water damage from hidden leaks that it believed were caused by the defective work of Charles Construction and its subcontractors. Repairs were made at the cost of $6 million.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
New York Court of Appeals Finds a Proximate Cause Standard in Additional Insured Endorsements
June 15, 2017 —
Geoffrey Miller - Saxe Doernberger & Vita, P.C.In The Burlington Insurance Company v. NYC Transit Authority, et al., No. 2016-00096, the New York Court of Appeals issued a landmark decision with regard to the meaning of “caused, in whole or in part, by” in the additional insured context. In a split decision, the court rejected Burlington Insurance Company’s argument that the language implied a “negligence” standard, but held that coverage was provided to the additional insured only where the named insured’s acts or omissions were the proximate cause of the injury:
While we [the majority] agree with the dissent that interpreting the phrases differently does not compel the conclusion that the endorsement incorporates a negligence requirement, it does compel us to interpret ‘caused, in whole or in part’ to mean more than ‘but for’ causation. That interpretation, coupled with the endorsement’s application to acts or omissions that result in liability, supports our conclusion that proximate cause is required here.[1]
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Geoffrey Miller, Saxe Doernberger & Vita, P.C.Mr. Miller may be contacted at
gjm@sdvlaw.com
Balfour in Talks With Carillion About $5 Billion Merger
July 30, 2014 —
Simon Thiel and Alex Webb – BloombergBalfour Beatty Plc (BBY), the U.K. construction company whose chief quit in May after predicting a profit drop, is in merger talks with rival Carillion Plc (CLLN) to form the country’s biggest builder with a market valuation of about 3 billion pounds ($5 billion).
A deal would create a market-leading service and construction business able to serve more clients and cut costs, the builders said in a statement yesterday, adding that they’re trying to develop a strategy and business plan. Balfour and Carillion surged as much as 13 percent and 14 percent respectively in London trading today.
Balfour, based in London, has struggled since the global recession, with a lack of building work in the U.K. and the cancellation of projects across Australia, where the company cut hundreds of jobs last year. A merged company would benefit from Carillion’s booming services business as the Wolverhampton, England-based builder expands its maintenance offerings for the rail, oil and telecommunication industries.
Mr. Thiel may be contacted at sthiel1@bloomberg.net; Mr. Webb may be contacted at awebb25@bloomberg.net
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Simon Thiel and Alex Webb, Bloomberg
If a Defect Occurs During Construction, Is It an "Occurrence?"
February 12, 2024 —
Brendan J. Witry - The Dispute ResolverEstablishing insurance coverage for construction defects is almost as important as establishing liability in the underlying construction defect litigation itself.
The risk to the defendant contractor of defending a construction claim can place significant burdens on a contractor’s operations and an uninsured judgment might even put the contractor out of business.
For owners, suing a contractor for construction defects can become academic if there is no prospect of insurance coverage; obtaining a $1 million judgment against a contractor with limited assets would be a pyrrhic victory.
Commercial General Liability (CGL) carriers are obligated to defend claims that potentially fall within the coverage granted by the policy.[1] When presented with a claim, CGL insurers typically have three options: (1) assume the defense without reservation; (2) assume the defense asserting defenses to coverage, and depending on the state, reserving the right to recover defense costs if it later determines there is no duty to defend; or (3) deny the claim outright and seek a declaratory judgment holding that the insurer has no duty to defend or indemnify. An insurer may deny the claim outright and not seek a declaratory judgment, but does so at its peril because it can expose the insurer to significant liability if the insured later shows the insurer in fact had a duty to defend.
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Brendan J. Witry, Laurie & Brennan LLPMr. Witry may be contacted at
bwitry@lauriebrennan.com
Effectively Managing Project Closeout: It Ends Where It Begins
August 06, 2019 —
William E. Underwood - ConsensusDocsProject closeout is sometimes one of the last things on a contractor’s mind at the beginning of a project, but project closeout can have a huge impact on a contractor’s overall profitability and success. Effectively managing the closeout process is critical, and it all begins with the negotiation and execution of the project contract. This contract can, and should, provide a complete roadmap for project closeout, as addressing these issues on the front end can set up the parties for successful project completion. It is then equally important to re-review the terms of the contract as project closeout approaches to ensure that everyone, including the owner, adheres to all contractual requirements.
This article examines several pertinent issues related to project closeout that should be addressed during the contracting stage, including defining substantial and final completion, inspection and acceptance, punch lists, and warranties.
Defining Substantial and Final Completion
Having clear definitions for both substantial and final completion in your construction contract is an important and necessary early step in achieving successful project closeout.
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William E. Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com