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DIRECTORY AND CAPABILITIES

The Pandemic of Litigation Sure to Follow the Coronavirus

March 30, 2020 — Aaron Lovaas - Newmeyer Dillion
As the Coronavirus crisis persists, America’s richly diverse private business sector finds itself increasingly subject to unprecedented governmental orders and restrictions that were unheard of only a few weeks ago. While the various “shutdown,” “shelter in place,” and “non-essential business” orders all aim to protect the public health, there is no doubt that the wave of litigation to follow is already swelling. Business interruption, civil authority, and cyber insurance coverages have already been widely discussed as issues certain to be litigated over the coming months and beyond. Additionally, breach of contract litigation is likely to spike as parties attempt to recoup their losses from canceled events, unfulfilled purchase commitments and other unmet obligations. Moreover, regional and national businesses are now in the difficult position of managing their respective affairs to comply with a patchwork of executive orders that are inconsistent from state to state. And, as the pandemic wears on, many are questioning the authority under which some of these executive orders and emergency regulations are being issued in the first place. Indeed, constitutional challenges are almost certain to follow as the business community reframes the characterization of their losses into notions of unconstitutional takings of private property and governmental impairment of private contract rights. Read the court decision
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Reprinted courtesy of Aaron Lovaas, Newmeyer Dillion
Mr. Lovaas may be contacted at aaron.lovaas@ndlf.com

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Estoppel Certificate? Estop and Check Your Lease

May 06, 2019 — Lauren Podgorski - Snell & Wilmer Real Estate Litigation Blog
If you are leasing space in a building, there may come a time when you receive a request from your landlord to fill out and sign an estoppel certificate. Estoppel certificates are usually sent to tenants in connection with the sale or refinance of a building, and a third party may rely on the accuracy of the statements and information contained in the estoppel certificate in connection with that transaction. Estoppel certificates can range from a very simple, one-page document, to several pages. I’ve received an estoppel certificate in the mail. What do I do now? Consider the following: Check your lease. Your lease may require you to deliver the signed estoppel certificate and may even give you a timeframe within which you are required to return it. A form of estoppel certificate may also be included in your lease as an exhibit. If you’ve previously agreed to a form of estoppel certificate in your lease, check to ensure the one you have received matches the form you previously agreed to and if it doesn’t make sure to review it carefully to make sure it is acceptable. Review the estoppel certificate and confirm that all of the information is accurate. Be on the lookout for any terms or provisions that you did not agree to in your lease. If it seems like the landlord is trying to modify your lease, you likely do not need to consent to the change in this document. Cross off (or modify or delete, if you have an electronic copy) any information that is inaccurate. Fill in all blanks (if the blank is not applicable, write “N/A”), and if any exhibits are referenced in the body of the document, make sure they are actually attached. Read the court decision
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Reprinted courtesy of Lauren Podgorski, Snell & Wilmer
Ms. Podgorski may be contacted at lpodgorski@swlaw.com

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Client Alert: Expert Testimony in Indemnity Action Not Limited to Opinions Presented in Underlying Matter

February 18, 2015 — R. Bryan Martin and Kristian B. Moriarty – Haight Brown & Bonesteel, LLP
In National Union Fire Insurance Co. of Pittsburgh Pa. v. Tokio Marine and Nichido Fire Insurance Co. (filed 2/4/2015, B24899 and B247258), the California Court of Appeal, Second District, held that the insurer of Costco Wholesale Corporation, in a subsequent indemnity action, could offer expert opinions which were not developed by the third-party plaintiff’s experts in an underlying dispute. Jack Daer filed suit against Costco and Yokohama Tire Corporation, alleging a tire manufactured by Yokohama (and sold by Costco), was defective and caused an accident resulting in Mr. Daer’s injuries. The case proceeded through expert discovery and depositions. On the first day of trial, Costco settled with Daer for $5.5 million, and Yokohama settled for $1.1 million. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com, Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Liability Coverage For Construction Claims May Turn On Narrow Factual Distinctions

March 25, 2024 — Scott S. Thomas - Payne & Fears
In a recent trial court decision, a Montana federal court reminds us how fragile insurance coverage can be for construction-related insurance claims. Specifically, this case illustrates how seemingly small factual nuances can make or break coverage. The case turned on the application of policy provisions familiar to all who deal with these kinds of cases. (See Nautilus Ins. Co. v. Farrens, No. CV 22-193-M-DWM, 2024 WL 885109 (D. Mont. Mar. 1, 2024)) First, the court rebuffed the insurer’s argument that damage resulting from defective workmanship (in this case, the flawed design and installation of an elaborate floating-floor pool system) is not “caused by an occurrence.” The court correctly applied the test followed by most states: if either act causing injury is unintentional or the resulting injury is unexpected or unintended, the “occurrence” requirement is met. Fortunately, the court distinguished sloppy language from earlier Montana federal court decisions suggesting otherwise. Read the court decision
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Reprinted courtesy of Scott S. Thomas, Payne & Fears
Mr. Thomas may be contacted at sst@paynefears.com

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Update Your California Release Provisions to Include Amended Section 1542 Language

April 02, 2019 — Amy L. Pierce & William S. Hale, P.E. - Gravel2Gavel Construction & Real Estate Blog
Most companies have been involved in a situation where they want to end their relationship with another company, or with an employee, and to permanently terminate their mutual obligations (e.g., a settlement agreement resolving end-of-project litigation). In 1992, a California Court of Appeals, in Winet v. Price, confirmed that upholding general releases is “in harmony… with a beneficial principle of contract law: that general releases can be so constructed as to be completely enforceable.” In California, agreements with a release of claims (or s general release) include what is often referred to as a California Civil Code § 1542 waiver for the purpose of ensuring that the releasing party is consciously releasing both known and unknown claims that may be later discovered. Such a waiver provision generally confirms that the Releasing Party acknowledges that it understands and waives the provisions of Section 1542, followed by the quoted text of Section 1542 (typically in all capital letters). Reprinted courtesy of Amy L. Pierce, Pillsbury and William S. Hale, Pillsbury Ms. Pierce may be contacted at amy.pierce@pillsburylaw.com Mr. Hale may be contacted at william.hale@pillsburylaw.com Read the court decision
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London’s Best Districts Draw Buyers on Italian Triple Dip

August 27, 2014 — Neil Callanan – Bloomberg
Italians were the biggest group of foreigners to buy homes in London’s best districts in the seven months through July as weak domestic growth prompted investment abroad. Italy, which fell into a triple-dip recession in the second quarter, accounted for 6.7 percent of all homes sold in the 13 neighborhoods that Knight Frank LLP defines as prime central London, the broker said in an e-mail today. France was second as euro-area investors accounted for 14.5 percent of purchases, the most in the period since 2011. Russia led the group a year ago, followed by the United Arab Emirates. The European Central Bank’s monetary-policy easing “is driving more euro-zone residents to search for yield abroad,” Goldman Sachs analysts including New York-based chief currency strategist Robin Brooks wrote in a note last week. Yields for homes in prime central London rose in July for the first time since April 2011 as more people opted to rent on concerns that home taxes may rise if the Conservative Party-led government loses next year’s elections, Knight Frank said on Aug. 11. Read the court decision
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Reprinted courtesy of Neil Callanan, Bloomberg
Mr. Callanan may be contacted at ncallanan@bloomberg.net

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Limiting Services Can Lead to Increased Liability

December 16, 2019 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday Musings, we welcome Nick Pacella. Nick is an architect licensed in New York, New Jersey and Connecticut. His practice has spanned several economic swings and he has been able to reposition the eggs in his basket to make the most of each recovery. He is currently focusing on adapting existing commercial buildings to take advantage of materials and processes that promote improved energy efficiency for both the owner and the tenants. For a more colorful rendition of projects you can visit his company’s website. I remember as a kid when the attendant at gas stations would not only clean your windows but also check the oil level of your vehicle as it was filling up with $0.25 per gallon gas. (I did say that I have seen several economic swings) These services have mostly disappeared, and to no great effect to your car since most cars go much longer between oil changes. Other than a slightly dirtier windshield it hasn’t affected your ability to drive and maintain your car. This is not so with professional services. Architects used to include many services that are now sourced to others. Project Management, Owner’s Representatives and Program Managers now populate the landscape. In many cases they came to be because architects either did not provide the service their client’s were looking for or they allowed themselves to be put into an adversarial relationship with their clients. They were likened to foxes watching the chicken coop, especially for project management and owners representative services. Client’s have had others buzzing in their ears “are architects really going to look out for my interests above theirs?’” Of course the clients never ask if the new wave will do any better at rallying behind their interests. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Making the Construction Dispute Resolution Process More Efficient and Less Expensive, Part 2

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
John P. Ahler, on the Ahlers & Cressman PLLC blog, has posted the second part of his two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive. In this post, Ahler discussed “tips on how lawyers and stakeholders can make things move quicker in arbitration.” For example, Ahler looked at the arbitration clause in the initial contract, various options for arbitration, evidence decisions, and others. Read the court decision
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