General Contractor’s Excess Insurer Denied Equitable Contribution From Subcontractor’s Excess Insurer
December 15, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Advent v. National Union Fire Ins. Co., etc. (No. H041934 filed 12/6/16), a California appeals court refused to order a subcontractor’s excess insurer to contribute to a general contractor’s excess insurer because the general contractor did not qualify as an additional insured of the subcontractor’s insurer, and the policy wording made the subcontractor’s excess insurer second level excess above the general contractor’s own excess insurance.
Advent was the general contractor on a housing development and Johnson was a sub-subcontractor providing concrete on perimeter walls. A Johnson employee dispatched to retrieve plywood dumped between some of the buildings somehow fell down an open stairwell inside one of the unfinished buildings and suffered serious injury. He sued Advent and others for negligence, but could not remember how he fell.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Why Biden’s Infrastructure Plan Is a Green Jobs Plan
April 26, 2021 —
Gernot Wagner - Bloomberg“Once you put capital money to work, jobs are created.”
These are not the words of President Joe Biden, announcing his administration’s infrastructure plan in Pittsburgh on Wednesday. Nor were they the words of Transportation Secretary Pete Buttigieg, standing on a train platform to announce expanded service, or of any of the administration’s economists charged with touting the virtues of the $2.25 trillion spending plan.
It was Michael Morris, then-CEO of Ohio utility American Electric Power, who uttered them on an investor call a decade ago. AEP was fighting an Environmental Protection Agency proposal to reduce mercury and other pollutants from power plants, citing the expense of creating jobs to install new scrubbers on smokestacks or build cleaner plants. Morris, taking his fiduciary responsibility to the utility’s investors seriously, argued these new roles would come at a cost to AEP and were, thus, bad. What he did not question, and correctly so, was whether more investments would indeed create more jobs.
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Gernot Wagner, Bloomberg
Amid the Chaos, Trump Signs Executive Order Streamlining Environmental Permitting and Disbands Infrastructure Council
August 24, 2017 —
Garret Murai - California Construction Law BlogWe’ve been trying to stay focused here at the California Construction Law Blog. But it’s been hard.
This past week, a couple of new developments took place at the federal level on infrastructure, although if you blinked, you may have missed it.
Executive Order on Environmental Permitting
This past Tuesday, at a press conference quickly overshadowed by the President’s comments about the tragic events that took place in Charlottesville, President Trump announced that he had signed a new executive order aimed at streamlining the environmental permitting process for federally-funded projects.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Pennsylvania Federal Court Addresses Recurring Asbestos Coverage Issues
March 04, 2019 —
Craig O’Neill & Laura Rossi - Complex Insurance Coverage ReporterIn a pair of recent asbestos coverage decisions, a Pennsylvania federal court issued rulings addressing expedited funding orders, number of “occurrences,” and the applicability of aggregate limits under the Fourth Circuit’s Wallace & Gale approach.
Zurn Industries, LLC v. Allstate Insurance Company, 2018 U.S. Dist. LEXIS 197481 (W.D. Pa. Nov. 20, 2018)
Policyholder Zurn, a manufacturer and distributor of boilers, was named as a defendant in thousands of underlying asbestos-related bodily injury suits. After its primary insurers claimed exhaustion, Zurn moved on an expedited basis to require two of its excess insurers to each assume fifty percent of its defense and indemnity costs until they reached a permanent cost-sharing agreement. In denying Zurn’s expedited request for interim funding, the court held that the record was insufficient “in the opening stages of litigation, before discovery has occurred” to determine whether the underlying coverage had been properly exhausted but left the door open for Zurn to refile its motion on a more developed record.
Reprinted courtesy of
Craig O’Neill, White and Williams LLP and
Laura Rossi, White and Williams LLP
Mr. Levine may be contacted at oneillc@whiteandwilliams.com
Ms. Rossi may be contacted at rossil@whiteandwilliams.com
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The 2024 Colorado Legislative Session Promises to be a Busy One for the Construction Industry and its Insurers
January 16, 2024 —
David M. McLain – Colorado Construction LitigationJanuary 10th marked the first day of the 2024 Colorado legislative session. After the pomp and circumstance of opening day, a total of eighty-six bills were introduced. Among them, two impact the construction and insurance industries. First,
House Bill 24-1008 would make general contractors and their subcontractors, which are direct employers of an employee, jointly and severally liable for all debts owed based on wage claims or investigations. Essentially, if HB 24-1008 were to become law, general contractors would become the guarantors of wage payments to their subcontractors’ employees. The second bill,
House Bill 24-1083, would require the Colorado Division of Insurance to conduct a study of construction liability insurance for construction professionals in Colorado and would require that, 14 days prior to closing the sale of a new residence, the seller provide the purchaser and the county clerk and recorder’s office certain information regarding the insurance coverage for the home. In a year when the legislature should be focusing on construction defect reform and affordable housing for Coloradoans, these first two bills will likely drive up the cost of new construction.
House Bill 20-1008, sponsored by Representatives Duran and Froelich, Brown, deGruy Kennedy, Epps, Garcia, Hamrick, Hernandez, Joseph, Lieder, Lindstedt, Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, and Vigil and Senators Danielson and Jaquez Lewis, Exum, Gonzales, Kolker, Marchman, and Sullivan, has been assigned to the House Committee on Business Affairs & Labor but has not yet been scheduled for a hearing. The bill summary states:
For wage claims brought by individuals working in the construction industry, the bill:
- Requires that a subcontractor that receives a written demand for payment forward a copy of the written demand for payment to the general contractor within 3 business days after receipt;
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lack of Flood Insurance for New York’s Poorest Residents
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFProperty Casualty 360 reported that for residents of the flood-prone area of Queens, New York, even “the slightest downpour could mean evacuating their homes for a night or even weeks at a time.” The problem is that “[m]uch of Southeast Queens, an area that includes the neighborhoods of Jamaica, St. Albans and Hollis, and parts of the Rockaways, sits on a massive aquifer that swells with groundwater and spills over into streets and eventually into basements and homes after heavy rains.” However, according to Property Casualty 360, Southeast Queens residents “have been battling insurance agencies for over a decade.”
“I would say more than 90% of the homeowners I speak to out here, they’re looking for insurance and they’re not getting it,” Councilman Donovan Richards, who represents Roseland and Far Rockaway, told Property Casualty 360. “Insurance companies obviously don’t want to take the risk.”
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Banks Loosening U.S. Mortgage Standards: Chart of the Day
August 13, 2014 —
Jody Shenn – BloombergPerhaps more U.S. banks than at any time in two decades are making it easier to qualify for a mortgage.
The CHART OF THE DAY shows the net share of banks telling the Federal Reserve that they’re tightening standards in the home-loan market. In the central bank’s July survey of senior loan officers released last week, the net percentage for prime mortgages was negative 18.3 percent, by far the most loosening since it started asking the question by loan-quality category in 2007. It was also greater than the highest net share of banks easing in “all” mortgages in the 1990s or 2000s.
Still, lenders have a long way to go before they unwind the restrictions they imposed in the wake of the global financial crisis that risky home loans helped to create. The current trend is mainly about “small tweaks around the edges,” according to JPMorgan Chase & Co. mortgage-bond analysts.
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Jody Shenn, BloombergMs. Shenn may be contacted at
jshenn@bloomberg.net
Court Strikes Expert Opinion That Surety Acted as a “De Facto Contractor”
November 27, 2023 —
David Adelstein - Florida Construction Legal UpdatesDesignating and admitting experts is a vital component of any construction dispute. Many construction disputes require experts. Many construction disputes can only be won with the role of an expert. Thus, experts and construction disputes go hand-in-hand. No doubt about it! Time needs to be spent on developing the right expert opinions to support your burden of proof. This means you want to designate the right expert that can credibly and reliably render an expert opinion.
It is common for one party to move to strike the testimony and expert opinions of another party. This is referred to as a Daubert motion. Sometimes the motion is about gamesmanship. Sometimes it is to see how the judge rules on the issue. Sometimes there is a legitimate reason associated with the expert opinion. And, sometimes, it is a combination of the above. Regardless of the reason, parties know the weight expert opinions can have and, therefore, treat the opinions seriously prompting the Daubert motion.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com