Insurer Doomed in Delaware by the Sutton Rule
September 12, 2023 —
Katherine Dempsey - The Subrogation StrategistIn Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the defendants. As applied in Delaware, the Sutton Rule explains that landlords and tenants are co-insureds under the landlord’s fire insurance policy unless a tenant’s lease clearly expresses an intent to the contrary. If the Sutton Rule applies, the landlord’s insurer cannot pursue the tenant for the landlord’s damages by way of subrogation. Here, the Supreme Court affirmed the trial court’s decision that the Sutton Rule applied because the lease did not clearly express an intent to hold the tenants liable for the landlord’s damages.
In Thangavel, the plaintiff, Donegal Mutual Insurance Company (Insurer), provided property insurance to Seaford Apartment Ventures, LLC (Landlord) for a residential property in Delaware. Sathiyaselvam Thangavel and Sasikala Muthusamy (Tenants) leased an apartment (the Premises) from Landlord and signed a lease. Insurer alleged that Tenants hit a sprinkler head while flying a drone inside the Premises which caused water to spray from the damaged sprinkler head, resulting in property damage to the Premises. Landlord filed an insurance claim with Insurer, who paid Landlord $77,704.06 to repair the damage. Insurer then sought to recover the repair costs from Tenants via subrogation.
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Katherine Dempsey, White and Williams LLPMs. Dempsey may be contacted at
dempseyk@whiteandwilliams.com
Manhattan Luxury Condos Sit on Market While Foreign Buyers Wait
January 21, 2015 —
Prashant Gopal, Oshrat Carmiel and John Gittelsohn – BloombergManhattan real estate agent Lisa Gustin listed a four-bedroom Tribeca loft for $7.45 million in October, expecting a quick sale. Instead, she cut the price this month by $550,000.
“I thought for sure a foreign buyer would come in,” said Gustin, a broker at Brown Harris Stevens who is still marketing the 3,800-square-foot (353-square-meter) apartment at 195 Hudson St. “So many new condos are coming up right now. They’ve been building them for the past few years and now they’re really hurting the resales.”
Mr. Gopal may be contacted at pgopal2@bloomberg.net; Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net
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Prashant Gopal, Oshrat Carmiel and John Gittelsohn, Bloomberg
With VA Mechanic’s Liens Sometimes “Substantial Compliance” is Enough (but don’t count on it) [UPDATE]
October 14, 2019 —
Christopher G. Hill - Construction Law MusingsVirginia mechanic’s liens are a powerful and tricky beast that in most cases require absolute precision in their preparation. However, an interesting opinion recently came out of the Virginia Supreme Court that may provide a bit of a “safe harbor” from the total form over function nature of a mechanic’s lien.
In Desai, Executrix v. A.R. Design Group Inc., the Court considered a lien memorandum that had what could be described as technical flaws in the preparation of the mechanic’s lien by A. R. Design Group. The basic facts are that A. R. Design Group used the form of lien found in Va. Code Sec. 43-5 (also found as Form CC-1512 at the Virginia Judiciary website) when it recorded two lien memoranda for two pieces of property owned by a trust. Relating to one of the two properties, the memorandum failed to identify the “Owner” as the trustee of the trust. On the memoranda relating to both properties the affidavit verifying the amounts claimed did not identify the signatory as agent for A. R. Design Group, instead listing the agent as the claimant and further failed to state a date from which interest is claimed or a date on which the debt was due.
Needless to say, the owner argued that each of these technical defects invalidated the memoranda and therefore they should have been released. Somewhat surprisingly the Fairfax, Virginia Circuit Court disagreed and held the liens to be valid. On appeal, the Virginia Supreme Court affirmed the lower court. The held that the failure to add the word “Trustee” after Ulka Desai’s name did not invalidate the lien because the trustee had all of the rights of ownership and furthermore that naming Desai in the memorandum served the purpose of putting third parties on notice of the lien.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
English v. RKK. . . The Rest of the Story
December 04, 2018 —
Christopher G. Hill - Construction Law MusingsBack in February, I discussed a case relating to indemnity and ambiguity. The opinion in that case, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al., allowed a breach of contract and indemnity claim to move forward despite the fact that conflicting term sheets between the plaintiff and defendant could have been read to violate Virginia law by requiring indemnity for English’s own negligence. In other words, the ambiguity worked in English’s favor (though that is not something to count on). The Court did not however address whether there was any negligence on English’s part and if there was, what was the contractual effect.
I’ll bet you were wondering what happened later in that case. Well, here’s the answer. In a subsequent opinion, the Court looked at the same ambiguous and conflicting term sheets between and among those defendants that were required to provide quality assurance services for the construction of a bridge in western Virginia. For the full procedural and factual analysis, be sure to read the full memorandum opinion linked above.
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Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
AB 3018: Amendments to the Skilled and Trained Workforce Requirements on California Public Projects
February 18, 2019 —
Alex R. Bagdassarian & Nathan A. Cohen - Peckar & AbramsonWhat California Contractors Need To Know About AB 3018
California contractors used to face limited consequences for non-compliance with the state’s skilled and trained workforce requirements on public works projects. A sea-change to the statutory landscape went into effect on January 1, 2019 as a result of Assembly Bill No. 3018 (“AB 3018”).1 The Code re-defines what constitutes a skilled/trained workforce by eliminating existing exemptions, strengthens monthly reporting guidelines and agency oversight, and empowers the Labor Commissioner and public agencies with enforcement tools that include monetary penalties and debarment. Contractors who fail to institute a program to comply with AB 3018’s reporting requirements do so at their peril.
What Does The 30% Requirement Mean?
Previously, in order to comply with the skilled workforce requirements2, 30% of skilled journeypersons had to be graduates of an apprenticeship program, except for certain listed trades which were exempt from the apprenticeship percentage requirement3. AB 3018 eliminates this exception for the listed occupations and requires 30% of all trades to be comprised of apprenticeship program graduates.
Reprinted courtesy of
Alex R. Baghdassarian, Peckar & Abramson and
Nathan A. Cohen, Peckar & Abramson
Mr. Baghdassarian may be contacted at Abaghdassarian@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
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The National Labor Relations Board Joint Employer Standard is Vacated by the Eastern District of Texas
April 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverMany employment laws use the concept of joint employer to make more than one business entity responsible for complying with employment law obligations towards employees who to varying degrees work for, or under the direction of entities who are not technically the employees primary employer. Nowhere is that issue more prevalent than in contractor subcontractor relationships. Over the years the National Labor Relations Board (NLRB) has developed various tests for determining joint employer status. Unless a business entity is an employer of individuals, the NLRB has no jurisdiction over a dispute between the workers and a business entity for whom they work.
It is important for contractors to understand the importance of being an employer and the obligations that flow from such status. Likewise, it is also important to understand when a contractor may be classified as a “joint employer” over certain individuals. Depending on the specific laws involved, such a finding of joint-employer status can happen under the “joint employer doctrine” which often exists in subcontractor and temporary employment arrangements. The “joint-employer doctrine” may render a contractor responsible for another company’s employment liabilities.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
The 2017 ASCDC and CDCMA Construction Defect Seminar and Holiday Reception
November 21, 2017 —
Beverley BevenFlorez-CDJ STAFFThe annual Construction Defect Seminar and Holiday Reception presented jointly by the Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDCMA) takes place this November 30th at the Hilton Costa Mesa. This one-day seminar includes two sessions: Session 1, Recent developments in Insurance Coverage and Related Impacts on Case Resolution; Session 2, Impact of Design Claims in Construction Defect Actions. A holiday reception will immediately follow the seminar.
The keynote speaker this year is Hon. Charles Margines, Presiding Judge of the Orange Superior Court. Other speakers include David Napper, Esq., of Chapman Glucksman Dean Roeb & Barger, Adrienne Cohen, Esq., Law Offices of Adrienne D. Cohen, Blenda Eyvazzadeh, Chub North American Claims, and many others. This activity has been approved for Minimum Continuing Legal Education Credit by the State Bar of California in the amount of 3.0 hours.
November 30th, 2017
Hilton Costa Mesa
3050 Bristol Street
Costa Mesa, California 92626
United States
PDF Registration...
Online Registration...
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ENR 2024 Water Report: Managers Look to Potable Water Reuse
July 15, 2024 —
Pam McFarland - Engineering News-RecordWith nearly all seven states within the 250,000-sq-mile Colorado River basin scrambling to conserve their apportionments from the river system’s increasingly depleted resources, interest in securing alternative local drinking water supplies is soaring.
Reprinted courtesy of
Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
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