Historical Long-Tail Claims in California Subject to a Vertical Exhaustion Rule
December 03, 2024 —
Will S. Bennett - Saxe Doernberger & Vita, P.C.California’s complex saga of long-tail injury coverage under general liability policies took an interesting turn in the California Supreme Court’s recent decision in Truck Ins. Exch. v. Kaiser Cement.1 In Truck, the court made it clear that Insureds can access excess policy limits without first exhausting all triggered underlying primary coverage, provided the underlying limits for the same policy period have been exhausted.
A Brief Summary of the History of Coverage for Long-Tail Claims in California2
Understanding the contextual significance of Truck requires a brief survey of California’s gradually developed case law with respect to long-tail progressive injury and damage claims. A “long-tail claim” typically involves progressively manifesting damage, injury, or disease that develops over a period of multiple years. Because general liability insurance is traditionally triggered based on the timing of when bodily injury or property damage occurs, the progressive nature of these claims has led many courts to analyze when injury or damage occurs in these claims. In doing so, California courts have generally found that these injuries occur across numerous years, thereby triggering numerous policies.3
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Will S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
WBennett@sdvlaw.com
Repairs to Water Infrastructure Underway After Hurricane Helene
October 07, 2024 —
Derek Lacey - Engineering News-RecordAs transportation officials in Tennessee and North Carolina brace for long rebuilds of heavily damaged interstates in remote and rugged areas of the Appalachian Mountains, local agencies are also at work restoring water and sewer services to residents nearly one week after Hurricane Helene made landfall.
Reprinted courtesy of
Derek Lacey, Engineering News-Record
Mr. Lacey may be contacted at laceyd@enr.com
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Statutory Bad Faith and an Insured’s 60 Day Notice to Cure
April 11, 2018 —
David Adelstein - Florida Construction Legal UpdatesA recent case came out in favor of an insured and against a first-party property insurer in the triggering of a statutory bad faith action. Florida’s Fifth District Court of Appeal in Demase v. State Farm Florida Insurance Company, 43 Fla. L. Weekly D679a (Fla. 5th DCA 2018)
held that if an insurer pays a claim after the 60-day notice to cure period provided by Florida Statute s. 624.155(3), this “constitutes a determination of an insurer’s liability for coverage and extent of damages under section 624.155(1)(b) even when there is no underlying action.”
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Construction Payment Remedies: You May be Able to Skate by, But Why?
April 06, 2016 —
Garret Murai – California Construction Law BlogMy grandfather used to say that “anything worth doing, is worth doing well.”
It wasn’t until later that I learned the quote wasn’t his, but a quote from Philip Stanhope the Fourth Earl of Chesterfield, who said in his posthumously published and quite lengthily titled Letters to His Son on the Art of Becoming a Man of the World and a Gentleman, that “whatever is worth doing at all, is worth doing well.” I’m not sure where my grandfather, who wasn’t a man of letters, picked up this quote, but I like his version better.
While “anything worth doing, is worth doing well” can be said to apply to a wide variety of things in life, including living itself, it applies equally to the world of construction payment remedies, which have requirements that are both detailed and deadline driven.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Client Alert: Catch Me If You Can – Giorgio Is No Gingerbread Man
November 26, 2014 —
Steven M. Cvitanovic, Jesse M. Sullivan, & Colin T. Murphy - Haight Brown & Bonesteel LLPIn Giorgio v. Synergy Management Group, LLC (2014) Case No. B248752, a California Court of Appeal held in an opinion published on November 6, 2014, that the Los Angeles County trial court did not abuse its discretion in permitting service by publication on Defendant John Giorgio ("Giorgio") after numerous attempts to find his current address produced a single address in Los Angeles from which mailed service was returned. The Court ruled that publication in a Los Angeles newspaper was proper because Plaintiff had a reasonable belief that service by publication in that county was most likely to give actual notice to the party to be served.”
In this intentional tort action, Synergy Management Group, LLC ("Synergy") alleged in its Complaint that Giorgio converted assets of Synergy's assignor by submitting false expense reports which resulted in the misappropriation of the assignor's assets. Synergy personally served Giorgio with the original Complaint at a North Carolina airport and Giorgio failed to respond. Synergy subsequently filed a First Amended Complaint and attempted service via an address in the Netherlands. Again, Giorgio did not respond. Synergy then filed a request for entry of default against Giorgio which was entered that day.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Steven M. Cvitanovic,
Jesse M. Sullivan and
Colin T. Murphy
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Mr. Sullivan may be contacted at jsullivan@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com
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Megaproject Savings Opportunities
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFJoel Levy in Construction Digital interviewed Christopher Dann, a Partner of Booz & Company’s Energy, Chemicals and Utilities practice, regarding how to be more efficient and save money when managing billion dollar construction megaprojects. According to Construction Digital, “Booz & Company, (recently rebranded as Strategy&), is celebrating its 100th anniversary this year, and over a century of working with huge clients in several sectors, has gathered the knowledge to identify what it terms a $40 trillion opportunity for savings in construction megaprojects over the next 20 years as clients combat a 30 percent average figure of overrun in schedule and cost.”
Dann cited several reasons for inefficiencies in megaprojects, including “inefficient advance planning and analysis” and “lack of completion of detail design engineering prior to the start of construction,” reported Construction Digital. The inefficiencies can be countered, according to Dann, “when following a clear strategy.”
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Need to Cover Yourself for “Crisis” Changes on a Job Site? Try These Tips (guest post)
July 02, 2018 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday, we welcome back friend of the blog Christopher G. Hill.
Chris is a LEED AP, a Virginia Supreme Court certified mediator, construction lawyer and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC. Chris authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals.
As construction professionals we’ve all been there. Something happens on a job site that requires immediate attention and possibly a changed sequence of work or possibly a change to a subcontractor’s scope. It could be a buried power line that Miss Utility failed to mark properly or an owner that wants a different HVAC configuration at the last minute. It could also simply be that it rained too much, and work had to slow down.
The above examples are instances of items that are beyond the control of the general contractor or the subcontractors and are the type that require shifts in work schedules and changes in scope that must be dealt with on the fly and require quick decisions and immediate action if the project is to meet any time of completion reasonably close to that which is listed in the contract documents. It can often seem that there is no time to meet the written change order provisions of any well drafted construction contract.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Caltrans Hiring of Inexperienced Chinese Builder for Bay Bridge Expansion Questioned
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFThe construction of the new eastern span of San Francisco’s bay bridge has been criticized for the $6.5 billion cost, welding crack violations, and alleged cover ups by Caltrans. The Sacramento Bee reported that the company Shanghai Zhenhua Port Machinery Co. Ltd. (ZPMC) “had never built a bridge.” In fact, ZPMC “was a manufacturer of giant cranes for container ports.”
How then did ZPMC manage to obtain the contract? The Sacramento Bee stated that the company “had established a reputation as fast and cost-effective, offering savings of about $250 million compared to the competing bidder.” The project was already “years behind schedule and billions of dollars over budget by political squabbles and construction delays” and there were some fears that the “old bridge might not survive a major quake.”
Caltrans was told by an outside expert that ZPMC was a “high risk,” however, the company received a “contingent pass.” Sacramento Bee reported that an audit showed “ZPMC didn’t have enough qualified welders or inspectors…and routinely welded in the rain, a basic error that often causes defects.” Regardless, Caltrans signed off on the project.
“In August 2007, Caltrans auditors approved ZPMC outright, although the firm still lacked adequate quality control, even for ‘fracture critical’ materials,” the Sacramento Bee reported.
During the California Senate committee hearing in January, Doug Coe, a senior Caltrans engineer, said “’The race for time’ created overwhelming pressure to keep moving as planned….But there’s no excuse for building something defective like that because we are in a race for time.”
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