New Jersey Supreme Court Hears Insurers’ Bid to Overturn a $400M Decision
January 25, 2021 —
Lawrence J. Bracken II, Michael S. Levine & Daniel Hentschel - Hunton Andrews KurthNew Jersey’s highest court heard arguments Monday in the appeal of a ruling that the New Jersey Transit Corp.’s (“NJ Transit”) insurers are required to insure $400 million of water damage loss caused by Hurricane Sandy.
The matter stems from an insurance claim NJ Transit made after the super storm rocked the East Coast in 2012. NJ Transit claimed over $400 million in losses as a result of damage to its tracks, bridges, tunnels and power stations. In response, its tower of property insurers took the position that a $100 million flood sublimit applied to limit NJ Transit’s recovery under its insurance tower, not the policy’s $400 million overall limits.NJ Transit filed a coverage action in state court. The trial court granted summary judgment to NJ Transit, holding that NJ Transit was entitled to full coverage of $400 million under the tower’s named windstorm coverage. The insurers appealed, again arguing that the flood sublimit applied to the claim.
Reprinted courtesy of
Lawrence J. Bracken II, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Bracken may be contacted at lbracken@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Denver Parking Garage Roof Collapses Crushing Vehicles
February 12, 2014 —
Beverley BevenFlorez-CDJ STAFFOn Monday night, a parking garage ceiling collapsed at the Park Mayfair Condos in Denver, Colorado, according to KKTV News. Residents claim that “between five and ten vehicles were completely destroyed after the ceiling of the underground garage caved in.” No one was injured from the incident. Structural engineers have not commented “yet on how the collapse occurred, but residents told sister station KCNC that the ceiling fell after a cement beam holding up one side of the roof collapsed.”
According to KWGN News, FOX31 interviewed a “passerby” who alleged that he lived in the condominium five years ago, but moved out “because inspectors repeatedly sent notices to fix problems with the garage, but, to his knowledge, no action was taken by the condo complex.”
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The Importance of the Recent Amendment to Rule 702 of the Federal Rules of Evidence
January 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverEvery litigator understands that expert witnesses play a key role in litigation, especially when dealing with construction issues. Expert testimony at trial can be a deciding factor in persuading a judge or jury in your client’s favor. It is so important that, as parties get closer to trial, litigators often spend considerable time filing motions to limit or disqualify certain aspects of expert testimony in an effort to gain an advantage at trial. Because experts are a key aspect of the trial process, it is important to understand the various rules governing use of expert testimony, primarily Rule 702 of the Federal Rules of Evidence.
On December 1, 2023, amendments to Rule 702 of the Federal Rules of Evidence went into effect which added the language in underline below and removed the language which is crossed out:
Rule 702. Testimony by Expert Witness
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:
(a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
(b) the testimony is based on sufficient facts or data;
(c) the testimony is the product of reliable principles and methods; and
(d) the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Newmeyer & Dillion Named for Top-Tier Practice Areas in 2018 U.S. News – Best Law Firms List
November 02, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – NOVEMBER 2, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that U.S. News-Best Lawyers® recognized the firm's Orange County office in its "Best Law Firms" 2018 list, ranking five of its practice areas with its highest ranking possible - Tier 1. These areas include Commercial Litigation, Construction law, Insurance law, Litigation - Construction and Litigation - Real Estate.
"We continue to be honored that our clients and peers recognize the foundational principles this firm was built on - personalized service and achieving the best results possible." said Jeff Dennis, Newmeyer & Dillion's Managing Partner.
Firms included in the 2018 "Best Law Firms" list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal expertise.
The 2018 rankings are based on a rigorous evaluation process that includes the collection of client and lawyer evaluations, peer review from leading attorneys in their field, and review of additional information provided by law firms as part of the formal submission process. To be eligible for a ranking, a firm must have a lawyer listed in The Best Lawyers in America, which recognizes the top 4 percent of practicing attorneys in the U.S. More than 21,000 attorneys provided almost 700,000 law firm assessments, and more than 8,0000 clients provided more than 47,000 evaluations.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier, and have been given Martindale-Hubbell Peer Review's AV Preeminent highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Newmeyer & Dillion Welcomes Three Associates to Newport Beach Office
January 26, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – JANUARY 24, 2017 – Enjoying rapid expansion in many primary practice areas, Newmeyer & Dillion LLP is pleased to welcome new associates
Jenny Guzman and
Jason Moberly Caruso, and welcomes back
Lily (Toubi) Razai to the Newport Beach office. The addition of these three associates fortifies the firm’s commitment to provide unparalleled service to our clients.
Firm Managing Partner,
Jeff Dennis, explained that each hire addresses the immediate and long-term needs of our clients, and firm's desire for strategic growth. "We always remain focused on what will allow us to better represent our clients, not just now but far into the future. We are excited to bring these three talented lawyers aboard as we continue to expand our capabilities across practice areas.”
Guzman, Caruso and Razai each practice business and real estate litigation, with Razai’s practice including land use and eminent domain matters. Caruso also practices construction law and Guzman's practice also focuses on business and real estate transactions.
Each attorney has unique strengths that continue to diversify the firm’s approach to their clients. In addition to serving clients in state and federal courts, Razai has extensive experience in alternative dispute resolution proceedings, and has served as a mediator in state courts. Awarded Super Lawyers 2016 Rising Star, Caruso utilizes his extensive judicial experience to argue on behalf of his clients at various levels from arbitration to the Ninth Circuit Court of Appeals. Guzman draws on her past experience in private equity and venture capital to protect businesses and help them achieve their full potential. These three associates, along with their diverse experience and cohesive strengths, further reinforce N&D’s foundation for continued growth and excellence.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Specific Source of Water Not Relevant in Construction Defect Claim
June 28, 2013 —
CDJ STAFFThe Nebraska Court of Appeals has concluded that a lower court came to the correct conclusion in a construction defect case involving water intrusion. The Hiatts built a home in North Platte, Nebraska, in in 2004 which they sold to the Oettingers in May, 2006. Shortly thereafter, the Oettingers started experiencing problems with water intrusion and contacted the Hiatts. The Hiatts responded by replacing the septic lift. Subsequently, the Oettingers landscaped their yard, which they allege was done with the assistance of the Hiatts. The water problems continued and “the parties took substantial remedial measures, including excavating the sidewalk and inspecting the downspouts.” The water problems continued, getting worse and requiring increasingly aggressive responses.
The Oettingers then had a series of inspections, and they hired the last of these inspectors to actually fix the water intrusion problem. At that point, they filed a lawsuit against the Hiatts alleging that the Hiatts “breached their contact by constructing and selling a home that was not built according to reasonable construction standards,” and that they “were negligent in the repair of the home in 2009.”
During the trial, Irving Hiatt testified that they “tarred the outside of the basement and put plastic into the tar and another layer of plastic over the top of that.” He claimed that the problem was with the Oettingers’ landscaping. This was further claimed in testimony of his son, Vernon Hiatt, who said the landscaping lacked drainage.
The Oettingers had three experts testify, all of whom noted that the landscaping could not have been the problem. All three experts testified as to problems with the Hiatts’ construction. The court concluded that the Hiatts had breached an implied warranty, rejecting the claim that the water intrusion was due to the landscaping. The Hiatts appealed the decision of the county court to the district court. Here, the judgment of the lowest court was confirmed, with the district court again finding a breach of the implied warranty of workmanlike performance.
The Hiatts appealed again. They alleged that the district court should not have held a breach of implied warranty existed without proving the source of the water intrusion, and that damages should have been apportioned based on the degree to which the Oettingers’ landscaping and basement alterations were responsible. The appeals court dispensed with the second claim first, noting that “they do not argue this error in their brief nor do they explain how or why the trial court should have apportioned damages.” The court also noted that although the Oettingers made a negligence claim in their suit, the case had been decided on the basis of a breach of implied warranty.
The appeals court upheld the Oettingers’ claim of a breach of implied warranty. In order to do this, the court noted that the Oettingers had to show that an implied warranty existed, that the Haitts breached that warranty, damage was suffered as a result, and that no express warranty limited the implied warranty. That court noted that “the record is sufficient to prove that the Hiatts breached the implied warranty in the method in which they constructed the basement” and that “this breach was the cause of the Oettingers’ damages.”
The court concluded that the Oettingers “provided sufficient evidence that the Hiatts’ faulty construction allowed water, whatever its source, to infiltrate the basement.” The court rejected the Hiatts’ claim that the Oettingers’ repairs voided the warranty, as it was clear that the Hiatts were involved in carrying out these repairs. The court’s final conclusion was that “the evidence in the record supports the trial court’s factual finding that the Hiatts’ flawed construction caused water damage to the Oettingers’ basement.”
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Drywall Originator Hopes to Sell in Asia
October 22, 2013 —
CDJ STAFFWith all the talk of problems with drywall coming from China, one company wants to send drywall in the other direction. USG introduced its “Adamant Panel Board” (later Sheetrock) in 1917. But while USG has been a leader in the drywall market in North America, only about 20% of its sales are outside North America.
USG is partnering with Boral Ltd., an Australian building materials manufacturer. Earlier this year, USG sold manufacturing and distribution of certain products to the German company Knauf Verwaltungsgesellschaft. Knauf has sold drywall in the United States that was manufactured in China and found to exit corrosive fumes.
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Design-Assist, an Ambiguous Term Causing Conflict in the Construction Industry[1]
December 02, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLC“Design-Assist” is one of the recent cost-saving trends being touted for construction projects and, in particular, construction projects utilizing alternative procurement methods. If an internet search for the term, “design-assist” is made, the result will be numerous construction industry articles and white papers lauding “design-assist” as a recent cost-saving trend in construction procurement. From a legal perspective, however, the term “design-assist” is notably absent from court opinions and most state licensing laws. With the exception of the ConsensusDocs, few standard form contracts even include the term “design-assist” in their text.
The ConsensusDocs agreement provides examples of the Constructor’s obligations to perform “assisting activities” (the term “design-assist” is not used) and states that, notwithstanding the performance of such “assisting activities” by the Constructor, the responsibility of the design remains with the Designer unless otherwise stated in the Contract:
- Article 4.5 DESIGN PROFESSIONAL’S RESPONSIBIITIES The Designer shall furnish or provide all design and engineering services necessary to design the Project in accordance with the Owner’s objectives … the Designer shall draw upon the assistance of Constructor and others in developing the design, but the Designer shall retain overall responsibility for all design decisions….
- Article 4.6 CONSTRUCTOR’S RESPONSIBILITIES [T]he Constructor shall assist the Designer in the development of the Project Plan and Project Design but shall not provide professional services which constitute the practice of architecture or engineering unless the Constructor needs to provide such services in order to carry out its responsibilities … or unless specifically called for by the Contract Documents.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com