New York Appellate Court Applies Broad Duty to Defend to Property Damage Case
January 03, 2022 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn the recent case of New York Marine and Gen. Ins. Co. v. Eastman Cooke & Associates, 153 N.Y.S.3d 840, 841 (N.Y. App. Div. 1st Dept. 2021), New York’s first department affirmed a duty to defend under New York law. In the underlying action, the plaintiff alleged property damages due to prolonged construction work in a different unit of the subject property. The underlying plaintiff sued the owner of the subject property, which in turn sued Eastman Cooke, the general contractor at the premises. New York Marine denied coverage to Eastman Cooke, asserting that the underlying suit did not seek damages occurring during the New York Marine policy period, and commenced a declaratory judgment action.
The trial court held—and the First Department affirmed—that New York Marine has a duty to defend Eastman Cooke. Initially, the court found that the underlying suit alleged property damage as required for coverage, because there were allegations regarding loss of use of the property. The court also found that the underlying suit alleged damages occurring during the New York Marine policy period. Although the underlying complaint alleged that the underlying plaintiffs were reimbursed for damages occurring during the New York Marine policy period by another insurer, the court held that the evidence was that the payments only covered a certain part of the damages sought. Accordingly, because there was a reasonable possibility that some unreimbursed damages may fall within the New York Marine policy period.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Pensacola Bridge Halted Due to Alleged Construction Defects
July 21, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.The Pensacola News Journal reported that cracks were discovered again in the Pensacola Bay Bridge, which caused construction of said bridge to be halted once more: “Cracks found in a portion of the concrete in the Pensacola Bay Bridge project have twice halted construction in the last several months, raising concerns about oversight and disclosure from the state, particularly in light of the Miami bridge collapse earlier this year.”
The Florida Department of Transportation stated “that the cracks were found during a routine visual inspection of newly placed concrete in March,” according to the Pensacola News Journal. The $400 million project began in 2017 and was scheduled to be completed by 2020.
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Judge Who Oversees Mass. Asbestos Docket Takes New Role As Chief Justice of Superior Court
January 02, 2024 —
Lewis Brisbois NewsroomBoston, Mass. (December 13, 2023) - Judge Michael Ricciuti, who presides over the Massachusetts state asbestos litigation docket, has been appointed to a new role as Chief Justice of Massachusetts Superior Court, effective December 22, 2023. The appointment is expected to result in the end of his tenure overseeing the state asbestos litigation.
Judge Ricciuti was appointed by Governor Charlie Baker to the Superior Court in 2017. He has served in five counties and serves six-month rotations in the Business Litigation Session, in addition to his role overseeing the Massachusetts Asbestos Litigation docket. His current committee participation includes serving on the Superior Court Judicial Education Committee and the Supreme Judicial Court Advisory Committee on Massachusetts Evidence Law. He also serves as a judicial mentor.
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Lewis Brisbois
Time to Repair Nevada’s Construction Defect Laws?
February 10, 2012 —
CDJ STAFFThe Builders Magazine writes that during the previous session of the Nevada legislature, reforms sought by the building industry were stopped by the Speaker of the Nevada Assembly. The new session brings a new speaker and new hope for construction defect reform in Nevada.
Pat Hickey, a member of the Assembly and a small business owner told The Builders Magazine that “we need to apply pressure on the legislators to fix the law.” He also recommended that people “go to Governor Sandoval and ask for his help.” Builders seeks legislation that will include right to repair and it should “define construction defect in such a way that it allows for a fair process.”
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California’s Wildfire Dilemma: Put Houses or Forests First?
November 29, 2021 —
Jim Hinch - BloombergAs record-breaking fires blacken millions of acres in California and elsewhere in the West this year, politicians are mostly sticking to a standard script in response. President Joe Biden’s proposed budget this year includes a $500 million boost to what the White House calls “forest management” and other efforts to reduce wildfire risk. In July, California lawmakers approved $1.5 billion in similar prevention spending.
The funds are in addition to the $2 billion the federal government spends each year fighting fires — a figure twice what it was 10 years ago and roughly five times more than in the 1980s and 1990s. A study last year found that in 2018, wildfires in California caused $148.5 billion in economic damage, including $46 billion outside the state.
Roughly one in three American houses is now in what forest scientists call the wildland-urban interface, where growing cities, remote workers, second-home buyers and commuters priced out of other housing markets are often pushing into fire-prone regions. A 2017 study found that 900,000 homes in the Western U.S. worth a combined $237 billion were “at high risk for fire damage.”
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Jim Hinch, Bloomberg
Notice of Completion Determines Mechanics Lien Deadline
August 13, 2019 —
William L. Porter - Porter Law GroupThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows:
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Insurer in Bad Faith Due to Adjuster's Failure to Keep Abreast of Case Law
June 13, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found that the insurer acted in bad faith when the claim was denied based on the adjuster's lack of knowledge of recent case law in Washington. Sec. Nat'l Ins. Co. v. Constr. Assocs. of Spokane, 2022 U.S. Dist. LEXIS 53533 (E.D. Wash. March 24, 2022).
Construction Associates of Spokane was a general contractor hired for a project at the Paulsen Building in Spokane. Construction Association hired a subcontractor, Merit Electric, for whom Mark Wilson worked. Wilson was seriously injured on August 20, 2016. He sued the Construction Associates along with other defendants three years later.
Construction Associates tendered to Merit Electric's broker, Alliant Insurance Services, Inc. Alliant forward the tender to Security National. The tender letter included a certificate of insurance issued by Alliant to Contractor Associates on September 3, 2019 and the subcontract with Merit. The subcontract required Merit to maintain CGL coverage with limits of $1 million. Further, the subcontractor was to issue certificate of insurance to the Contractor.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Occurrence Definition Trends Analyzed
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFIn The Legal Intelligencer, Gordon S. Woodward, partner at Schnader Harrison Segal & Lewis, analyzed the changing definition of occurrence in the insurance industry, and more specifically in Pennsylvania.
Woodward begins by going over “the traditional view of occurrence as it relates to coverage for faulty products or defective work,” in which “the existence of a defect in a product or an event in which a defective product injures only itself does not constitute an occurrence.” However, he stated that “there is a growing trend in favor of finding that an occurrence can include the circumstance where defective work results in damage only to the work or product itself (so long as the damage was neither intended nor expected by the insured).” Woodward also explained Pennsylvania developments and legislative changes (such as a South Carolina statute).
These changes need to be monitored, Woodward stated, “as they have the potential to dramatically alter the coverage landscape from one jurisdiction to the next.”
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