Third Circuit Limits Pennsylvania’s Kvaerner Decision; Unexpected and Unintended Injury May Constitute an “Occurrence” Under Pennsylvania Law
December 22, 2019 —
Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery BlogThe Third Circuit ruled on Friday that differing “occurrence” definitions can have materially different meanings in the context of whether product defect claims constitute an “occurrence” triggering coverage under general liability insurance policies. The Court held in Sapa Extrusions, Inc. v. Liberty Mutual Insurance Company, that product claims against Sapa may be covered under policies that define an “occurrence” as an accident resulting in bodily injury or property damage “neither expected nor intended from the standpoint of the insured.” However, the Court affirmed that coverage was not triggered under policies lacking the “expected” or “intended” limitation, reasoning that, under those policies, there was no question that the intentional manufacturing of Sapa’s product was too foreseeable to amount to an “accident.”
The coverage dispute arose from an underlying action in which Marvin, a window manufacturer, alleged that, between 2000 and 2010, Sapa sold it roughly 28 million defective aluminum window extrusions. Marvin alleged that the extrusions, which are metal frames that hold glass window panes in place, began to oxidize and break down shortly after they were installed, causing Marvin to incur substantial costs to fix and replace them.
Marvin sued Sapa in 2010 in Minnesota federal court, and the parties settled in 2013. Sapa sought coverage for the settlement from its eight general liability insurers for the period implicated by Marvin’s allegations. The insurers denied coverage and Sapa brought suit in the Middle District of Pennsylvania.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Michelle M. Spatz, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. Spatz may be contacted at mspatz@HuntonAK.com
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Alabama Federal Magistrate Recommends Dismissal of Construction Defect Declaratory Judgment Action Due to Expanded Duty to Defend Standard
May 31, 2021 —
Anthony L. Miscioscia & Margo Meta - White and WilliamsWhile the starting point for assessing an insurer’s duty to defend requires comparing the allegations contained within a complaint to the language contained within the insured’s policy, the majority of states require an insurer to do more. In Alabama, a failure of the underlying complaint to allege damages falling within the policy’s terms is not necessarily fatal to coverage – if there are facts provable by admissible evidence to place the loss within coverage.
The U.S. District Court for the Southern District of Alabama recently examined Alabama’s broadened duty to defend standard in Frankenmuth Mutual Insurance Company v. Gates Builders, No. 20-00596, 2021 U.S. Dist. LEXIS 83645 (S.D. Ala. Apr. 29, 2021). In Frankenmuth, the magistrate judge was tasked with determining whether the court should abstain from hearing an insurer’s declaratory judgment coverage action pending the resolution of the underlying state court action.
The underlying state court action arose out of an allegedly defective construction project. Frankenmuth’s insured, Gates Builders, was hired to perform exterior and structural rehabilitation work at the Resort Conference Center Condominium (the Condominium) in Gulf Shores, Alabama. The project began in July 2014 and concluded in June 2015. In 2019, Gates Builders was informed that the Condominium’s decks were sagging. Gates Builders shored up the decks and provided the Condominium with a quote for the cost of repairs. In July 2020, the Condominium’s Association filed suit, alleging that the work performed in 2014 and 2015 was faulty and had caused damage to the Condominium.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams and
Margo Meta, White and Williams
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Ms. Meta may be contacted at metam@whiteandwilliams.com
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Court Grants Summary Judgment to Insurer in HVAC Defect Case
August 04, 2011 —
CDJ STAFFThe US District Court in Colorado has determined in the case of RK Mechanical, Inc. v. Travelers Property Casualty Company of America that Travelers did not breach its insurance contract when it refused to cover RK Mechanical.
RK Mechanical performed an HVAC installation for a residential project for which J.E. Dunn Rocky Mountain was the general contractor. As part of the work, RK “installed approximately one hundred seventy-one CPVC flanges, which were manufactured by Charlotte Pipe and Foundry Company.” Two of these flanges failed in June, 2009 leading to water damage. RK replaced the cracked flanges and engaged in water remediation. “Travelers paid Dunn and RK for the costs associated with the water damage associated with the Flange Failure.” The court notes that Travelers did not pay for the cracked flanges, however.
Subsequently, RK examined the remaining flanges, finding many cracked ones. These were replaced with new ones. Later, all the Charlotte flanges were replaced with ones from another manufacturer. RK applied for coverage.
All sides brought in their experts: “Microbac Laboratories, Inc. prepared a report on behalf of RK concluding that the Flange Failure was due, in part, to an assembly or workmanship defect in addition to manufacturing defects in the flanges. Higgins & Associates prepared a report on behalf of Travelers concluding that the flanges failed due to improper installation. Plastic Failure Labs prepared a report on behalf of the flange manufacturer concluding that the flanges failed due to improper installation by RK.”
At this point, Travelers denied coverage. RK sued alleging that the coverage for flange failure and water damage implicitly includes mitigation costs. The court rejected this claim, noting it would do so even if Travelers had paid for the replacement of the first two flanges. Nor did the court find that replacement of the faulty flanges is not "a covered cause of loss." RK also argued that as it was required to mitigate, Travelers was obligated to cover costs. However, the court found that “the mitigation costs expended by RK were not incurred in an effort to avoid damages from a potential breach of contract by Travelers.” The court additionally noted that despite RK’s claims, the Colorado courts have not found a common law duty to mitigate. Finally, the court found that the exclusions in the policy were not in violation of public policy.
Read the court’s decision…
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A Deep Dive Into an Undervalued Urban Marvel
December 26, 2022 —
Linda Poon - BloombergDeep beneath the city, an intricate network of pipes and pumps carries our waste to treatment facilities. Ideally, the entire process is hidden from the eyes — and nose — of the urban dweller who, from the moment the toilet flushes, remains blissfully unaware of what it takes to direct billions of gallons of wastewater out of a city.
The development of sewer infrastructure is one of the perks of modern urban living, rendering the consequences of our daily habits out of sight, out of mind — until it doesn’t.
In the US and beyond, many sanitation systems date back to the early 20th century or earlier, and they’re showing their age: Increasingly heavy downpours as a result of climate change often overwhelm antiquated combined sewers that collect stormwater as well as wastewater, while leaky pipes and trash-laden clogs bring stinky backups that can poison local waterways. But as cities scramble to repair and update their networks, another challenge lurks: Getting people to stop taking for granted a public good that’s essential but invisible.
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Linda Poon, Bloomberg
The Contributors to This Blog Are Pleased to Announce That….
November 02, 2017 —
Snell & Wilmer Real Estate Litigation BlogSnell & Wilmer’s Real Estate Litigation Group, which provides the content for The Real Estate Litigation Blog, is pleased to announce that it has been recognized in both the national and metropolitan rankings by U.S. News Media Group and Best Lawyers for the 2018 edition of “Best Law Firms.” We achieved the following rankings:
- National Tier 1: Litigation – Real Estate
- Phoenix (AZ) Tier 1: Litigation – Real Estate
- Utah Tier 1: Litigation – Real Estate
- Colorado Tier 1: Litigation – Real Estate
- Reno (NV) Tier 1: Litigation – Real Estate
- Tucson (AZ) Tier 1: Litigation – Real Estate
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Kaylin Jolivette Named LADC's Construction and Commercial Practice Chair
October 09, 2023 —
Kaylin Jolivette - Lewis BrisboisLafayette, La. (August 15, 2023) – Lafayette Associate Kaylin E. Jolivette was recently named Practice Chair of the Louisiana Association of Defense Counsel (LADC) Construction and Commercial practice.
LADC is comprised of over 1,400 attorneys in Louisiana who are engaged in the defense of civil litigation. The organization creates CLE programs tailored to individual practices throughout the year to provide members with the knowledge and skills to be among the top litigators in the region.
Ms. Jolivette is a member of the General Liability Practice. Her past experience includes practice in an array of civil litigation matters as both plaintiff and defense counsel from the pre-trial litigation phases, to trial and appeals, in various areas including products liability, privacy law, health care law, energy litigation, contractual disputes, personal injury, alternate dispute resolution, and construction litigation.
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Kaylin Jolivette, Lewis BrisboisMs. Jolivette may be contacted at
Kaylin.Jolivette@lewisbrisbois.com
Water Backup Payment Satisfies Insurer's Obligation to Cover for Rain Damage
February 16, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's attempt to secure additional coverage beyond a $10,000 payment for water damage after a rain storm damaged the interior of its building failed. Bible World Christian Ctr. v. Colony Insurance Co, 2016 U.S. Dist. LEXIS 175766 (M.D La. Dec. 20, 2016).
The interior of Bible World's building was damaged by water that leaked in from the roof after a heavy rain storm. Bible World's officials met with Robert Chandler, an employee of Omni Insurance Group, the day after the rain event. Chandler had assisted Bible World in procuring its commercial property policy with Colony Insurance Company. Chandler told Bible World to fix the property and that its costs would be covered under the policy. Bible World spent $79,876.81 in repairs.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Termination Part 2: How to Handle Construction Administration When the Contractor Is Getting Fired
August 01, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaIf you’ve been working as a design professional for any length of time, you know that you must be a chameleon on the construction project. You need to “step into the skin” of both the Owner and the Contractor to determine who is at fault, and who should pay.
You are usually the Initial Decision Maker (IDM), and so you have a duty under the AIA documents to act fairly and impartially in making those decisions. See AIA B101§3.6.2.4.
Even if you are not under an AIA contract, you still have that duty if you are the IDM or handling construction administration for the project. More often than not, however, it will be the owner asking you to support its termination of the contractor “for cause.”
Should you do so?
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
