Providing Your Insurer Prompt Notice
May 20, 2024 —
David Adelstein - Florida Construction Legal UpdatesSometimes, when it comes to insurance, you may hear the argument that you breached your insurance policy by failing to provide your insurer with prompt notice as the insurance policy requires. Well, this is not such an absolute issue. With that said, you should absolutely provide your insurer with prompt notice of a claim or loss. No legitimate reason not to. But, if you don’t, it is not an absolute get out of jail free card for your insurer, but it does give them a good argument, which you don’t really want to deal with.
In Gulfpoint Construction Co., Inc. v. Westfield Ins. Co., 2024 WL 1759228 (11th Cir. 2024), an insured appealed a trial court’s ruling that found it did not provide prompt notice to its property insurer as the policy required. In this case, notice was provided two years after a loss from a hurricane. The insurer denied coverage and, in doing so, relied on the insured’s failure to provide prompt notice. Although the trial court agreed, the appellate court found this was a genuine issue of material fact.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Justin Clark Joins Newmeyer & Dillion’s Walnut Creek Branch as its Newest Associate
May 03, 2017 —
Newmeyer & Dillion LLPWALNUT CREEK, Calif. – APR. 28, 2017 – Up and coming associate and insurance attorney
Justin Clark is the newest associate to join the ever-growing litigation practice at Newmeyer & Dillion LLP’s Walnut Creek office. Clark brings experience in the areas of insurance litigation, construction defect litigation, and business transactions.
Walnut Creek’s managing partner Brian Morrow explained why he is so excited by the addition of Clark: “We are thrilled to have Clark on board, as his emphasis on insurance coverage will assist in a key area for our clients, and further expand our capabilities in our northern California office.”
Clark has a background in a variety of practice areas, including insurance coverage, products liability, and asbestos litigation. He advocates for manufacturers, suppliers, distributers, and contractors in all phases of litigation. Clark represents developers, builders, and general contractors in construction and insurance disputes. He also helps small business clients draft commercial contracts to better serve their growing business needs. Clark can be reached at justin.clark@ndlf.com or 925-988-3263.
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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Contractor’s Claim for Interest on Subcontractor’s Defective Work Claim Gains Mixed Results
April 27, 2020 —
John J. Gazzola, Associate, Pepper Hamilton LLP - ConsensusDocsThis case concerns calculation of a damages award to a general contractor, Skanska USA Building, Inc., on its claim for breach of contract against its masonry subcontractor, J.D. Long Masonry, Inc., arising from Long’s faulty construction of a masonry façade at a medical research facility in Baltimore. When the façade collapsed and Long failed to repair it, Skanska hired a replacement subcontractor, C.A. Lindman, to remediate Long’s defective work and filed suit against Long to recover the resulting damages. After the court granted Skanska’s motion for summary judgment as to liability, Skanska moved for summary judgment on the issue of damages, relying on the indemnification provision of the subcontract to seek compensatory damages, pre- and post-judgment interest, and litigation fees. In the subcontract, Long agreed to indemnify and hold Skanska harmless from all claims, losses, costs and expenses, including attorneys’ fees, arising before or after completion of Long’s work, caused by, arising out of, resulting from, or occurring in connection with Long’s performance of the work or breach of the subcontract.
The court first applied the terms of this provision to award Skanska compensatory damages, holding that Skanska was, as a matter of law, entitled to recover the amount of the Lindman subcontract and general conditions incurred to supervise remediation of Long’s work. The court, however, denied Skanska’s claim for pre-judgment interest on the entirety of these damages. Skanska asserted that it was entitled to pre-judgment interest on the full award, calculated from the date on which it first paid Lindman. The court disagreed, explaining that, under Maryland law, a claimant is entitled to an award of pre-judgment interest as of right only when the amount due is certain, definite and liquidated by a specific date prior to judgment. The court reasoned that, because much of the Lindman subcontract value was composed of later-executed change orders, an award of pre-judgment interest could not be uniformly calculated back to the date of Skanska’s first payment to Lindman. And moreover, because Skanska continued to withhold sums due to Lindman pending resolution of certain issues, awarding Skanska pre-judgment interest on amounts it had not yet paid would result in a “windfall” to Skanska because there was no “use of income” loss to be compensated.
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John J. Gazzola, Pepper Hamilton LLPMr. Gazzola may be contacted at
gazzolaj@pepperlaw.com
Montreal Bridge Builders Sue Canada Over New Restrictions
April 13, 2017 —
Scott Van Voorhis - Engineering News-RecordThe consortium building the $3.2-billion Champlain Bridge in Montreal has sued Canada’s government for $93 million, claiming transportation officials gave it late notice of stricter load limits that could add to delay and make it liable for tens of millions of dollars in penalties, according to Canadian press reports and a stock analyst’s comments. A spokeswoman for the team’s lead firm, engineer-contractor SNC-Lavalin, confirms the March 28 filing in Quebec Superior Court but declined further comment.
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Scott Van Voorhis, ENRENR may be contacted at
ENR.com@bnpmedia.com
Two Years, Too Late: Time-Barred Hurricane Loss is Timely Reminder to Insureds
November 01, 2021 —
Michael S. Levine & Yaniel Abreu - Hunton Insurance Recovery BlogIt happens every year. A clearly covered loss occurs and for one reason or another, the policyholder delays in notifying its insurer of the loss. Usually, the cause for the delay is innocent. It may even appear to be justified, such as where the insured prioritizes steps to save its property, inventory or assist dependent customers. But no matter the reason, insurers can be hard-lined in their refusal to accept an untimely claim. This is especially true in states that presume prejudice to the insurer, or where the insurer need not show prejudice at all.
In LMP Holdings, Inc. v. Scottsdale Ins. Co., (Case No. 20-24099-CIV) (S.D. Fla.), a twenty‑seven month delay in notifying the insurer of damage from Hurricane Irma proved fatal to the claim. LMP owns a building in Miami, Florida insured under an all-risk commercial property policy issued by Scottsdale. On September 10, 2017, Hurricane Irma struck South Florida and caused extensive damage to LMP’s building, including punctures to the roof and water damage. LMP identified the damage shortly after the storm. Then, in 2018, LMP identified other storm-caused damage, including a water stain on the ceiling. It again identified additional storm damage in 2019. LMP submitted a claim to its insurer on December 10, 2019—about twenty-seven months after it first noticed the damage. Scottsdale agreed to inspect the property but reserved its rights to deny coverage based on late notice. On July 10, 2020, Scottsdale denied coverage for the damage to the property.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii
January 06, 2012 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court ultimately stayed a construction defect case, but offered comments on the current status of coverage disputes for such defects in Hawaii. See National Union Fire Ins. Co. of Pittsburgh, Pa. v. Simpson Mfg. Co., 2011 U.S. Dist. LEXIS 128481(D. Haw. Nov. 7, 2011).
National Union filed a complaint for declaratory relief to establish it had no duty to defend or to indemnify Simpson Manufacturing Company in four actions pending in the Hawaii state courts. The state court actions concerned allegedly defective hurricane strap tie hold downs that were manufactured and sold by Simpson. The hurricane ties allegedly began to prematurely corrode and rust, causing cracking, spalling and other damage to homes.
National Union contended the underlying allegations did not constitute "property damage" caused by an "occurrence," as defined in the policies.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Former Zurich Executive to Head Willis North America Construction Insurance Group
March 01, 2012 —
CDJ STAFFInsurance Journal reports that Sean McGroarty will be directing surety operations for their construction practice in North America. Previously, Mr. McGroarty was the senior vice president and head of international surety with Zurich Financial Services. He has also worked for Liberty Mutual Group and the St. Paul Companies.
Mr. McGroarty will be leading a team of professionals offering brokerage services for contract and commercial surety.
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Recovery Crews Swing Into Action as Hurricane Michael Departs
October 23, 2018 —
Tom Sawyer, Luke Abaffy, Thomas F. Armistead, & Jim Parsons - Engineering News-RecordBy the time the blustery remnants Hurricane Michael departed the East Coast around mid day on Oct. 12, with one last lashing of eastern regions from Virginia to New York, the trail of woe stretched from the Florida Panhandle through the southeastern states and well up the Eastern Seaboard. Authorities report the death toll stood at 16, with victims in Florida, Georgia, North Carolina and Virginia.
Reprinted courtesy of ENR reporters
Tom Sawyer,
Luke Abaffy,
Thomas F. Armistead and
Jim Parsons
Mr. Sawyer may be contacted at sawyert@enr.com
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