Will European Insurers’ Positive Response to COVID-19 Claims Influence US Insurers?
August 10, 2020 —
Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery BlogLast month we wrote a piece concerning AXA’s agreement to pay COVID-19 related business interruption claims by a group of restaurants in France after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under its insurance policies. AXA reportedly has already agreed to pay over 200 COVID-19 related claims.
Another European insurer recently made headlines for similar reasons. Despite initially denying liability, Swiss insurance company, Helvetia Insurance, announced that most of its policyholders in the hospitality industry have accepted settlements following coverage disputes for COVID-19 related business interruption losses. The settlements reportedly included policyholders from Switzerland, Austria, and Germany.
The positive response from the European insurers appears to have influenced the insurance industry across the continent. For instance, in the U.K., the Financial Conduct Authority announced that it is taking certain insurers to court to seek clarity as to coverage for COVID-19 related losses. In Germany, the government and a group of insurers reached an agreement whereby the government will pay for 70% of business interruption losses for policyholders in the hospitality industry, and the insurers will pay for half of the business interruption losses not covered by the government.
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Daniel Hentschel, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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DC District Court Follows Ninth Circuit’s Lead Dismissing NABA’s Border Wall Case
April 10, 2019 —
Anthony B. Cavender - Gravel2GavelOn February 14, the U.S. District Court for the District of Columbia dismissed the complaint of the National American Butterfly Association (NABA) alleging that the U.S. Government’s border wall preparation and law enforcement activities at NABA’s National Butterfly Center, located in South Texas along the Rio Grande River, violated federal environmental laws (National Environmental Policy Act (NEPA)) and the Endangered Species Act (ESA)) as well as NABA’s constitutional rights. The case is National American Butterfly Association v. Nielsen, et al.
On January 25, 2017, the President issued an Executive Order to the Secretary of the Department of Homeland Security (Secretary) to “take all appropriate steps to immediately plan, design, and construct a physical wall along the southern border” with Mexico. A few weeks later, the Secretary issued a memorandum to the U.S. Customs and Border Enforcement to implement the Executive Order. The land occupied by the NABA has been affected by these actions, as well as other actions taken by the Secretary pursuant to her authority under the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA), located at 8 U.S.C. § 1103.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Look Out! Texas Building Shedding Marble Panels
November 13, 2013 —
CDJ STAFFThe streets around the Omni Building in Lubbock, Texas have been barricaded for an indefinite period, since the marble panels have been falling off the building. The panels weight about 300 pounds each.
The building’s owners attempted to remedy the problem by replacing the marble with stucco, but that too came loose in the wind and fell to the ground. The city issued a stop work order preventing the installation of any more stucco. The city “told them that all needed to come down, both the old and the new,” according to Steve O’Neil, the city’s chief building official.
The city has filed a lawsuit to compel the owners to fix the building. Glen Robertson, Lubbock’s mayor, sees another possible solution, “or demolish it because, as it stands right now, it is truly a health and safety hazard to our citizens.
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Extreme Weather Events Show Why the Construction Supply Chain Needs a Risk-Management Transformation
July 24, 2023 —
Brad Barth - Construction ExecutiveA perfect storm of recent extreme weather events has exposed the fragility of North America’s construction supply chains amid an increasingly fluctuating, fast-changing risk landscape. Supply chains that were already reeling from resurgent demand for raw materials coming out of the pandemic have been further disrupted by major storms such as recent tornados in Arkansas and Mississippi. Such events can have a ripple effect across many distinct supply lines as exemplified when the 2021 Texas freeze caused railroad closures and knocked out both petrochemical and semiconductor plants, causing shortages that affected construction and many other industries.
The wide-ranging reverberations from these events demonstrate how stakeholders across all stages of capital projects increasingly share common vulnerabilities. Crucially, the way in which disruption from extreme weather events has caused project delays and cost overruns shows how time, cost and scope are increasingly interlinked and equally vulnerable to systemic risks.
Traditional project-management methods where risks are not collectively managed and mitigated by all stakeholders are becoming increasingly inadequate, as risks to cost, time and scope are often considered in isolation. The domino effect of supply-chain disruption across capital projects similarly shows the inadequacy of project-management models where suppliers are not afforded a key stake in the project (or sometimes even a seat at the planning table). This traditional model cannot adapt to sudden, systemic risks that disrupt multiple suppliers and ripple out across all stakeholders, deliverables and project-management metrics.
Reprinted courtesy of
Brad Barth, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Attorneys' Fees Awarded as Part of "Damages Because of Property Damage"
October 07, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court for the district of Hawaii found that an arbitrator's award of attorneys' fees was part of the "damages because of property damage" and covered under a CGL policy. Ass'n of Apt. Owners of the Moorings v. Dongbu Ins. Co., 2016 U.S. Dist. LEXIS 110283 (Aug. 18, 2016 D. Haw).
The Moorings AOAO was the named insured under the policy issued by Dongbu. Jo-Anne and Brent Braden, owners of a residential unit at the Moorings, filed a demand for arbitration against the AOAO. The Bradens alleged that the AOAO had failed to repair and maintain their lanai roof, which caused water damage to their unit. The arbitrator awarded the Bradens $6,103.49 in special damages, which was the amount they paid to repair their roof and interior damage. The arbitrator also awarded $85,644.30 in attorneys' fees and $8,515.91 in costs to the Bradens.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Settlement Reached on Troubled Harbor Bridge in Corpus Christi, Texas
November 16, 2023 —
Daniel Tyson - Engineering News-RecordA $400-million settlement was reached between the Texas Dept. of Transportation and general contractor Flatiron/Dragados over Corpus Christi’s Harbor Bridge in mid-October. The accord ends all disagreements and damage claims concerning the cable-stayed bridge, a project halted multiple times.
Reprinted courtesy of
Daniel Tyson, Engineering News-Record
Mr. Tyson may be contacted at tysond@enr.com
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Inside the Old Psych Hospital Reborn As a Home for Money Managers
October 28, 2015 —
Simone Foxman – BloombergIt’s the most exclusive club for financiers in Dallas.
With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors.
Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display.
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Simone Foxman, Bloomberg
Reroof Blamed for $10 Million in Damage
November 06, 2013 —
CDJ STAFFA renovation of the city hall in Bay City, Michigan went wrong when roof repairs lead to fire and flooding of the historic building. Bay City has sued Gregory Construction and Mihm Enterprises, who earlier had been awarded a $1.5 million contract to reroof the building. The cost of repairing the building is expected to exceed the city’s insurance limit of $10 million.
The fire that damaged the building is alleged to have started when a roofer allegedly used a DeWalt grinder in attempt to remove some bolts. Under the contract with the city, the contractor was not going to use grinders, due to the risk of fire. The suit alleges that further water damage was caused, beyond the damage due to the firefighting, due to the contractor failing to “secure a section of the roof which was part of the Roofing Project with a tarp or other water-resistant covering.”
The contractors dispute the claims made by Bay City, with Gregory Construction describing them as “untrue and contrary to the facts.” Gregory Construction also claims that their obligations were delegated to Mihn Enterprises. Mihn Enterprises disputes this and states that they do not “owe a duty to the Plaintiffs; as a result their negligence claim is unenforceable as a matter of law.”
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