In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim
October 14, 2019 —
Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis.
The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment.
Reprinted courtesy of
Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and
Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com
Ms. Barrese may be contacted at blb@sdvlaw.com
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Nonresidential Construction Employment Expands in August, Says ABC
December 16, 2019 —
Associated Builders and Contractors - Construction ExecutiveThe construction industry added 14,000 net new jobs in August, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 177,000 jobs, or 2.4%.
Nonresidential construction employment increased by 11,600 net jobs in August and is up by 114,200 net jobs over the last 12 months, translating into 2.5% growth. The majority of job gains emerged from nonresidential specialty trade contractors, which added 5,400 jobs last month and nearly 103,000 positions over the past year. Heavy and civil engineering added 4,400 net new jobs, while nonresidential building added 1,800 jobs on a monthly basis.
The construction unemployment rate stood at 3.6% in August, up 0.2 percentage points from the same time last year. Unemployment across all industries stood at 3.7% in August, unchanged from the previous month.
“While job growth across all industries fell short of projections, today’s employment report was just about perfect,” said ABC Chief Economist Anirban Basu. “Yes, employment growth has been softening for quite some time, with average monthly job growth totaling 150,000 during the last six months after approaching 200,000 during the prior six-month period. And employment growth estimates were also revised lower for both June and July. That said, looking beyond the headline number, August’s labor market performance was more than respectable, even accounting for about 25,000 of the jobs being added for temporary Census work.
Reprinted courtesy of
ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Home Prices in 20 U.S. Cities Increased 4.3% in November
January 28, 2015 —
Victoria Stilwell – Bloomberg(Bloomberg) -- Home prices in 20 U.S. cities rose at a slower pace in the year ended in November, a sign the industry struggled to find momentum even amid low mortgage rates.
The S&P/Case-Shiller index of property values increased 4.3 percent from November 2013 after rising 4.5 percent in the year ended in October, the group said Tuesday in New York. The median projection of 28 economists surveyed by Bloomberg called for a 4.3 percent year-over-year advance. Nationally, prices rose 4.7 percent after a 4.6 percent gain in the year ended in October.
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Victoria Stilwell, BloombergMs. Stilwell may be contacted at
vstilwell1@bloomberg.net
2019 Promotions - New Partners at Haight
January 15, 2019 —
Haight Brown & Bonesteel LLPHaight proudly announces the promotion of Renata Hoddinott, Sarah Marsey and Annette Mijianovic to Partner in January 2019.
Renata and Sarah joined Haight’s San Francisco office in 2016. Renata relocated from a litigation firm in the Los Angeles area. She focuses her practice on professional liability, general liability, risk management & insurance law and transportation law.
Before coming to Haight, Sarah was with a respected trial firm in Anchorage, Alaska. She handles a variety of complex matters in appellate law, food safety, construction law and general liability.
Annette has been with Haight’s Los Angeles office for almost 12 years. Annette joined the firm as a summer clerk in 2007 and has continued to build her practice handling cases related to commercial litigation, products liability and transportation law.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Renata L. Hoddinott,
Sarah A. Marsey and
Annette F. Mijanovic
Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com
Ms. Marsey may be contacted at smarsey@hbblaw.com
Ms. Mijanovic may be contacted at amijanovic@hbblaw.com
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Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work
September 21, 2020 —
Jeremy S. Macklin - Traub LiebermanMost general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired.
In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016.
At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature.
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Jeremy S. Macklin, Traub LiebermanMr. Macklin may be contacted at
jmacklin@tlsslaw.com
The Shifting Sands of Alternative Dispute Resolution
February 03, 2020 —
Tim Scully - Porter Law GroupIn California there are few tools which work to protect the employer, and California employers may have just lost another one. On October 10, 2019, Governor Gavin Newson signed into law AB 51, which bans the use of mandatory arbitration agreements in employment contracts.
More specifically, AB 51 adds Section 432.6 to the California Labor Code, making it unlawful to require a prospective employee, or current employee, to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act (“FEHA”)(Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code) or the California Labor Code, starting January 1, 2020. Additionally, an employer is also prohibited from threatening, retaliating or discriminating against, or terminating any applicant or employee who may choose not to sign a voluntary arbitration agreement.
Previously, an employer was able to require employees and prospective employees to agree to arbitration to resolve almost any and all disputes between the employee and the employer as a term of their employment. These terms were often the bulk of employers’ written contracts. Employers could have employees waive the right to a jury trial, the right to court costs, and other expenses, provided that the employer paid for the expenses of the alternative dispute resolution. The injured employees right to recover attorney’s fees was always a non-waivable right under the Labor Code. There were only a few actions which could not be arbitrated, the most prominent exception being the right to seek recovery under the Private Attorney’s General Action (PAGA).
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Tim Scully, Porter Law GroupMr. Scully may be contacted at
tscully@porterlaw.com
Blog: Congress Strikes a Blow to President Obama’s “Fair Pay and Safe Workplaces” Executive Order 13673
March 22, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCOn October 25, 2016, the Federal Acquisition Regulatory Council (FAR Council) and the U.S. Department of Labor implemented former President Obama’s Executive Order 13673: “Fair Pay and Safe Workplaces” rules. The rules became effective on October 25, 2016 and fundamentally altered the way federal contractors and subcontractors will need to handle and resolve employment and labor claims, as well as compliance issues involving their entire workforce. The final rules can also result in otherwise-capable companies being “blacklisted” and effectively barred from federal contracts and subcontracts based on labor and employment law violations related or unrelated to prior or current federal contract performance. The centerpiece of the new regulatory scheme was the new disclosure and responsibility requirements. Contractors and subcontractors needed to disclose all “labor law decisions” that they had during the three years (prior to bid submission) as part of the process of applying for a new federal contract or subcontract. If a contractor or subcontractor has too many “labor law decisions” to report or the few it has are too severe, pervasive, repeated, or willful in the eyes of the government “experts,” the company could be deemed “non-responsible” and denied a contract.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
How Many Bridges Does the Chesapeake Bay Need?
August 03, 2022 —
Ethan McLeod - BloombergSteve Kline, a 7th-generation Marylander, knows well the vacation tradition of driving across the twin spans of the Chesapeake Bay Bridge for trips to the beach resort of Ocean City. His grandfather, an ironworker, helped build the bridge’s first span, which opened in 1952.
He’s also very familiar with another seasonal rite: wading through the infamous miles-long traffic backups that last from Memorial Day through the end of summer.
But Kline, president of the nonprofit Eastern Shore Land Conservancy, is not on board with the state’s proposed multibillion-dollar fix — a new 4.3-mile-long crossing, to be built alongside the two current spans of the Bay Bridge. In April, the Maryland Transportation Authority (MDTA) announced it had received federal approval to use this route for a potential new, wider bridge that would be likely to eventually replace its older siblings, addressing the notorious summer bottlenecks for decades to come. And on June 10, at a press conference held near the bridge’s eastbound ramp, Maryland Governor Larry Hogan announced that he would commit $28 million in bridge toll revenue to fund the second phase of an environmental impact study on the idea.
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Ethan McLeod, Bloomberg