Claimants’ Demand for Superfluous Wording In Release Does Not Excuse Insurer’s Failure to Accept Policy Limit Offer Within Time Specified
September 15, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Barickman v. Mercury Casualty Co. (No. B260833, filed 7/25/16, ord. pub. 8/15/16) a California appeals court affirmed a $3 million bad faith award against Mercury Casualty Co. based upon its failure to accept a policy limit demand within the time provided, finding that wording inserted by the claimants’ counsel into the release did not affect the insured’s rights such that the refusal to agree to the wording was unreasonable and in bad faith, exposing the insurer to liability for the insured’s stipulated judgment.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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BHA has a Nice Swing Benefits the Wounded Warrior Project
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates (BHA) would like to congratulate the winners of the BHA Has a Nice Swing golf game for charity at the 2015 West Coast Casualty Construction Defect Seminar. With the help of the participants, BHA was able to raise $1925 to benefit the Wounded Warrior Project. BHA would also like to congratulate the raffle winners. Prizes included a DJI Phantom 2 Vision+ Drone and Dodger baseball tickets.
The Wounded Warrior Project’s purpose is to raise awareness and enlist the public’s aid for the needs of injured service members; to help injured service members aid and assist each other; and to provide unique, direct programs and services to meet the needs of injured service members.
Learn more about the Wounded Warrior Project...
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“But it’s 2021!” Service of Motion to Vacate Via Email Found Insufficient by the Eleventh Circuit
June 21, 2021 —
Justin K. Fortescue - White and WilliamsWhile we are all getting used to the “new normal” of working remotely and relying on emails for almost all communications, a recent decision from the United States Court of Appeals for the Eleventh Circuit provides arbitration practitioners with a stark reminder – the “notice” requirements of the Federal Arbitration Act (FAA) will be strictly enforced and providing notice of a motion to vacate via email may not qualify as proper service.
In O'Neal Constructors, LLC v. DRT Am., LLC, 991 F.3d 1376 (11th Cir. 2021), O’Neal Constructors, LLC (O’Neal) and DRT America (DRT) entered into a contract containing an arbitration provision. Following a dispute, the parties went to arbitration and, on January 7, 2019, the panel issued an award requiring DRT to pay O’Neal a total of $1,415,193. The amount awarded to O’Neal consisted of two parts: $765,102 for the underlying contract dispute and $650,090 for reimbursement of O’Neal’s attorneys’ fees. While DRT paid O’Neal the first portion of the award, DRT refused to pay the portion that related to O’Neal’s attorneys’ fees.
On April 4, 2019, as a result of DRT’s refusal to pay O’Neal’s attorneys’ fees, O’Neal filed a motion to confirm the award in Georgia state court (which was subsequently removed to the Northern District of Georgia). The next day, in a separate action, DRT filed a motion to vacate the attorneys’ fees portion of the award and, that same night, DRT’s counsel emailed O’Neal’s counsel a “courtesy copy” of DRT’s memorandum in support of the motion to vacate. A few weeks later, on April 30, 2019 (i.e., more than three months after the award was issued), DRT served O’Neal (via U.S. Marshall) with a copy of the motion to vacate.
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Justin Fortescue, White and WilliamsMr. Fortescue may be contacted at
fortescuej@whiteandwilliams.com
Ambiguous Application Questions Preclude Summary Judgment on Rescission Claim
July 19, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Duarte v. Pacific Specialty Ins. (No. A143828; filed 6/12/17, ord. pub. 6/29/17) a California appeals court held that an insurer was not entitled to summary judgment on its rescission claim because the disputed questions in the insurance application were ambiguous.
In Duarte, the insured/owner purchased a tenant-occupied property in Oakland. Several years later the tenant’s daughter moved in, and continued living there after the tenant died. The insured/owner served the daughter with an eviction notice and shortly thereafter applied for Owners, Landlords & Tenants (“OLT”) liability coverage. The tenant/daughter responded to the eviction notice by filing a habitability lawsuit, claiming emotional distress and physical injury, among other things.
The insurer denied coverage and a defense, drawing a bad faith lawsuit for failure to defend and “wrongful cancellation” of the policy. The insurer answered and raised rescission as an affirmative defense, based on alleged fraud and misrepresentation in the OLT policy application.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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2021 Real Estate Trends: New Year, New Reality—A Day of Reckoning for Borrowers and Tenants
February 08, 2021 —
Robert J. Grados & Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogOn the one-year anniversary of China’s Wuhan lockdown, COVID-19 has become a part of everyday life and as we enter the new year, real estate borrowers and lenders alike will need to understand this new normal and face the reality that is fast approaching. In 2020, as the COVID-19 pandemic swept across the United States, many state and local governments instituted eviction moratoria and other protections for real estate tenants and borrowers. These protections created a window of opportunity for tenants and borrowers to negotiate reasonable solutions with their respective landlords and lenders regarding rent and debt payments amid the COVID-19 pandemic. This temporary period of restricted remedies also allowed courts to analyze legal arguments on how the COVID-19 pandemic impacts the real estate industry.
However, with court rulings forthcoming and many of these eviction protections set to expire in 2021, landlords and tenants as well as borrowers and lenders will be forced to have discussions regarding the realities of their industry and their ability to pay their respective rents and mortgages amid the ongoing COVID-19 crisis. Throughout 2020, lenders and landlords were forced to accommodate workout negotiations as their ability to evict or foreclose upon defaulting tenants or borrowers was prohibited. Many commercial real estate parties were able to come to agreements on what borrowers and tenants were able to pay, given the impact of the COVID-19 pandemic on their respective industries. As the legal protections are rolled back and the leverage shifts back into the hands of the lenders and landlords, we will likely see a trend of aggressive landlords and lenders and an increased number of evictions and foreclosures, especially in industries that are most vulnerable to the COVID-19 pandemic: retail and hospitality.
Reprinted courtesy of
Robert J. Grados, Pillsbury and
Adam Weaver, Pillsbury
Mr. Grados may be contacted at robert.grados@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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Ackman Group Pays $91.5 Million for Condo at NYC’s One57
April 15, 2015 —
David M. Levitt and Oshrat Carmiel – BloombergA group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever.
The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls.
The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office.
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David M. Levitt, Bloomberg and
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Steven Cvitanovic to Present at NASBP Virtual Seminar
January 13, 2017 —
Steven M. Cvitanovic - Haight Brown & Bonesteel LLPPartner Steven Cvitanovic will speak at the National Association of Surety Bond Producers (NASBP) Virtual Seminar on Tuesday, January 31 at 11:00 A.M. PST. The presentation will provide a brief overview of risks covered by traditional insurance products, and will then expand on significant exposures arising from a contractors operations/contracts that are not covered by traditional insurance. The session will provide examples of these non-traditional risks and strategies to mitigate them.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
Earthquake Hits Mid-Atlantic Region; No Immediate Damage Reports
November 30, 2017 —
The Associated Press (Randall Chase) - BloombergDover, Del. (AP) -- An earthquake has jolted the Mid-Atlantic region of the East Coast, but there are no immediate reports of damage or injuries.
The U.S. Geological Survey says the 4.1 magnitude quake struck just after 4:45 p.m. Thursday, and was centered about 6 miles (10 kilometers) east-northeast of Dover, Delaware. It was felt as far away as Baltimore.
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The Associated Press (Randall Chase), Bloomberg