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DIRECTORY AND CAPABILITIES

Insurer Must Defend Where Possible Continuing Property Damage Occurred

January 13, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal overturned the trial court's issuance of summary judgment based upon the possibility of continuing property damage during the insurer's policy period. Tidwell Enters. v. Fin. Pac. Ins. Co., 2016 Cal. App. LEXIS 1038 (Cal. Ct. App. Nov. 29, 2016). Financial Pacific insured Greg Tidwell, Tidwell Enterprises, Inc. and Tidwell Enterprises Fireplace Division (Tidwell) under CGL policies issued between March 2003 and March 2010. In 2006 or 2007, Tidwell installed a fireplace in a home. On November 11, 2011, 20 months after the end of the last policy period of Financial Pacific's coverage, the home owned by Kendall Fox, was damaged by fire. Fox was insured by State Farm. State Farm's attorney advised Tidwell of the fire, and Tidwell forwarded the information to Financial Pacific. State Farm hired an investigator who reported that the fire was caused by the installation of an "unlisted shroud at the top of the chimney chase". This prevented the fireplace from drafting properly, resulting in overheating of the fireplace and heat transfer to the surround wood framing members. This resulted in the ignition of the framing members at the sides, top and bottom of the fireplace. State Farm sent the report to Financial Pacific. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Certified Question Asks Washington Supreme Court Whether Insurer is Bound by Contradictory Certificate of Insurance

January 21, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The Ninth Circuit certified a question to the Washington Supreme Court as follows:

Under Washington law, is an insurer bound by representations made by its authorized agent in a certificate of insurance with respect to a party's status as an additional insured under a policy issued by the insurer, when the certificate includes language disclaiming its authority and ability to expand coverage?

T-Mobile USA Inc. v. Selective Ins. Co lf Am., 2018 U.S. App. LEXIS 31863 (9th Cir. Nov. 9, 2018). In 2010, T-Mobile entered into a Field Services Agreement (FSA) with Innovative Engineering, Inc. under which Innovative would provide services in connection with the construction of rooftop cellular antennae towers in New York City. The FSA required Innovative to maintain general liability insurance naming T-Mobile as an additional insured, and required that Innovative provide T-Mobile with certificates of insurance documenting the coverage. Innovative obtained coverage from Selective Insurance Company of America. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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East Coast Evaluates Damage After Fast-Moving 'Bomb Cyclone'

March 06, 2022 — Scott Van Voorhis - Engineering News-Record
Coastal areas in the northeast US are assessing damage from a fast-moving “bomb cyclone” that caused temperatures to plummet, triggered heavy flooding and high winds, and dumped 2 ft of snow in some New England areas. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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Sept. 11 Victims Rejected by U.S. High Court on Lawsuit

July 01, 2014 — Greg Stohr – Bloomberg
The U.S. Supreme Court turned away an appeal by thousands of Sept. 11 attack victims who sought to sue Middle Eastern companies and people for allegedly providing crucial support to al-Qaeda. The victims sought to revive their claims against relatives of Osama bin Laden, Saudi Arabia’s state-owned National Commercial Bank and Saudi Binladen Group, a construction company controlled by the former al-Qaeda leader’s family. A federal appeals court threw out those claims in 2013, saying the victims didn’t allege a close enough connection between the defendants’ activities and the attacks. The appellate panel also said some defendants lacked sufficient ties to the U.S. to bring them within the jurisdiction of American courts. Read the court decision
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Reprinted courtesy of Greg Stohr, Bloomberg
Mr. Stohr may be contacted at gstohr@bloomberg.net

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Real Estate & Construction News Roundup (11/8/23) – New Handling of Homelessness, Decline in Investments into ESG Funds, and Shrinking of a Homebuyer’s Dollar

December 11, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Our latest roundup includes two large flood control projects in New Jersey, how residential REITs could benefit from higher interest rates, how the downfall of WeWork could cause expansive collateral damage, and more!

• The Federal Reserve said the possibility of large losses in the $24 trillion U.S. commercial real estate market poses a top risk to financial stability. (Jim Tyson, CFO Dive)
• According to proptech firm MRI Software, apartment leasing patterns are “reverting to pre-pandemic patterns and becoming more predictable.” (Leslie Shaver, Multifamily Dive)
• Los Angeles has developed a new way to handle homelessness—real estate agents for those without a home. (Jennifer Ludden, NPR)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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School District Settles Construction Lawsuit with Additional Million

April 03, 2013 — CDJ STAFF
The southern New York town of Liberty has settled a lawsuit filed by the contractor with an agreement that the school district will pay an additional $1.1 million. Darlind Construction of LaGrangeville, New York had alleged that “errors, omissions, and other defects” in the plans provided to them required additional work. The school project had previously cost the town about $36 million. Darlind Construction’s initial claim had been for $1.6 million. Funds for the settlement will come from monies appropriated for the project, most of which were contributed by the State of New York. Read the court decision
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Key Legal Issues to Consider Before and After Natural Disasters

November 25, 2024 — Patrick Kelly - Construction Executive
While legal considerations are often the last thing on the minds of project owners and contractors during an emergency, construction industry stakeholders should bear in mind the impact of natural disasters on their legal rights, remedies and potential exposure to claims. For all stakeholders, two of the most pressing considerations are: (1) what provisions in their contracts are impacted by a natural disaster and (2) do they have any potential exposure to price-gouging claims? Reprinted courtesy of Patrick Kelly, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Kelly may be contacted at pkelly@grayreed.com

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