No Indemnity Coverage Where Insured Suffers No Loss
November 05, 2014 —
Tred R. Eyerly - Insurance Law HawaiiThe insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014).
MKB contracted with the Lower Yukon School District (LYSD) to place gravel fill for a new building pad upon which a school building would be placed in Emmonak, Alaska. The project site was built on tundra that melted in the summer, becoming marshy and pocketed by pools of standing water. LYSD provided the bidding contractors with information stating that settlements of 3 to 9 inches could be expected in areas with 30 inches of fill.
The contract was awarded to MKB, who subsequently realized it had under bid the amount of gravel fill that would be required. The estimated difference in the amount bid and the amount that would be needed was 6,583 cubic yards. LYSD refused to increase the contract price.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Texas Supreme Court Holds Anadarko’s $100M Deepwater Horizon Defense Costs Are Not Subject To Joint Venture Liability Limits
February 27, 2019 —
Sergio F. Oehninger & Michael S. Levine - Hunton Andrews KurthReversing a Texas Court of Appeals decision that allowed Anadarko’s Lloyd’s of London excess insurers to escape coverage for more than $100 million in defense costs incurred in connection with claims from the Deepwater Horizon well blowout, the Supreme Court of Texas held that the insurers’ obligations to pay defense costs under an “energy package” liability policy are not capped by a joint venture coverage limit for “liability” insured. Anadarko Petroleum Corp. et al. v. Houston Casualty Co. et al., No. 16-1013 (Tex. Jan. 25, 2019).
While the Lloyd’s of London insurers had agreed to pay Anadarko $37.5 million for damages, they declined to cover $100 million-plus in defense fees, arguing that both Anadarko’s liability and defense expenses are subject to the $37.5 million joint venture limit for “liability” insured. Anadarko asserted that only amounts paid as damages to third parties are subject to that limit. Defense costs, however, are not amounts paid as damages to a third party and, thus, are not a “liability.” Those amounts, therefore, are not subject to the joint venture limit and are instead subject to the policy’s $150 million coverage limit.
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Construction Resumes after Defects
June 28, 2013 —
CDJ STAFFWhen inspectors found defective bolts in the construction of the Media Arts Center at L. A. Mission College, the contractor walked off the job. The project had been underway for about eighteen months. After problems were found with welds and bolts, the contractor informed the school that it could not complete the job. The California Division of the State Architect then required inspection of every weld and joint, leading to a dispute as to who was going to pay for it.
At this point, only the first story has been inspected. Although the other two stories must be inspected, the new contractor is about to begin work on the building. James O’Reilly, the executive director for facilities, planning and development, said that “the main focus is on fixing the defective issues and getting construction completed so we can serve the Mission campus.” Still at question is how much SMC Construction received before they walked off the job.
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Victoria Kajo Named One of KNOW Women's 100 Women to KNOW in America for 2024
May 13, 2024 —
Lewis Brisbois NewsroomLos Angeles, Calif. (April 30, 2024) – Los Angeles Partner Victoria Kajo has been named to global media company KNOW Women's 2024 100 Women to KNOW in America list, which honors the top 100 female leaders across North America. The honorees were recognized at the annual KNOW Women Summit, held from April 21-23 at The Palomar Hotel in Phoenix, Arizona.
The annual 100 Women to KNOW in America award, presented by JPMorgan Chase, recognizes women entrepreneurs, executives, creatives, and philanthropists who "exemplify what it means to be high achieving and ambitious on the next level and who continue to pour into their communities as they do so," according to KNOW Women. Ms. Kajo was selected as one of this year's honorees following a nomination and interview process.
Ms. Kajo is a member of Lewis Brisbois' Professional Liability Practice. She has extensive experience with professional liability litigation, having defended lawyers, design professionals and real estate professionals against claims of alleged negligent acts and omissions in the performance of their professional services. Ms. Kajo also has broad experience in general civil litigation matters involving errors and omissions, real estate, wrongful foreclosures, labor and employment law, civil rights, fraud, personal injury, breach of contract and unlawful detainer matters, amongst others.
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Lewis Brisbois
New York’s Highest Court Reverses Lower Court Ruling That Imposed Erroneous Timeliness Requirement For Disclaimers of Coverage
June 18, 2014 —
Robert F. Walsh and Paul A. Briganti – White and Williams LLPOn June 10, 2014, the New York Court of Appeals (the state’s highest court) issued a unanimous decision in KeySpan Gas East Corp. v. Munich Reinsurance America, Inc. (No. 110, June 10, 2014), reversing a lower court decision which had erroneously imposed on insurers a duty to disclaim coverage for property damage claims as soon as possible or risk waiving their coverage defenses. White and Williams represented one of the insurance company defendants in the action.
The case involved an action against three excess insurers for insurance coverage for underlying environmental claims arising from Manufactured Gas Plant sites. Upon receiving notice of the underlying claims, the three insurers reserved their rights to deny coverage on various grounds, including late notice of an occurrence, pending an investigation. The insurers ultimately denied coverage on the basis of late notice several years later based on information developed in discovery in the litigation. The policyholder/plaintiff KeySpan argued that the insurers had unreasonably delayed in issuing their disclaimers and that there was a triable issue of fact on whether such a delay amounted to a waiver of the late notice defense.
Reprinted courtesy of
Robert F. Walsh, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com; Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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Real Estate & Construction News Round-Up (08/10/22)
August 29, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThe Senate passes the Inflation Reduction Act, construction costs continue to rise across the U.S., commercial real estate advances the adoption of ESG strategies, and more.
- The recently-passed Inflation Reduction Act of 2022 leaves out the carried interest tax hike, much to the relief of real estate investors worldwide. (Taylor Driscoll, Bisnow)
- Commercial real estate continues to push forward ESG strategies, given the significant carbon footprints left by most office buildings. (Ted Jackson, CFO)
- “Space as a Service” tech company Neighbor, which re-purposes under-utilized real estate into storage for tenants, hits its stride in the post-pandemic landscape as the excess of unprofitable space rises. (The Real Deal)
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Pillsbury's Construction & Real Estate Law Team
Montana Federal Court Holds that an Interior Department’s Federal Advisory Committee Was Improperly Reestablished
December 09, 2019 —
Anthony B. Cavender - Gravel2GavelOn August 13, 2019, in a case that may have an impact on the leasing of federal lands for energy development in the future, the U.S. District Court for the Missoula, Montana Division, issued a ruling in the case of Western Organization of Resource Councils v. Bernhardt, which involves the application of the Federal Advisory Committee Act (FACA) to the Department of the Interior’s Royalty Policy Committee. This advisory committee, initially established in 1995 to provide advice to the Secretary on issues related to the leasing of federal and Indian lands for energy and mineral resources production, is subject to the provisions of FACA, codified at 5 U.S.C. app. Sections 1-16. The plaintiffs challenged the operations of this advisory committee, which was reestablished for two years beginning in 2017, because it allegedly “acts in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal.” More specifically, the plaintiffs alleged that this advisory committee violated FACA because: (a) it was not properly established as provided in the implementing GSA rules (which are located at 41 CFR Section 102-3); (b) did not provide public notice of its meetings and publicly disseminate its materials; (c) ensure that its membership was fairly balanced; and (d) failed to exercise independent judgment without inappropriate influences from special interests.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
The Quiet War Between California’s Charter Cities and the State’s Prevailing Wage Law
April 20, 2016 —
Garret Murai – California Construction Law BlogBehind the scenes a quiet war is raging.
A war pitting local sovereignty, on one hand, against a Depression-era law intended to help those working on state and local public works projects, on the other.
California’s Prevailing Wage Law
Beginning in 1929 and continuing through the late 1930s, the Great Depression is widely considered to be the longest, most widespread depression of the 20th century. In 1931, the federal government enacted the Davis-Bacon Act to help workers on federal construction projects. The Davis-Bacon Act, also known as the federal prevailing wage law, sets minimum wages that must be paid to workers on federal construction projects based on local “prevailing” wages. The law was designed to help curb the displacement of families by employers who were recruiting lower-wage workers from outside local areas.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com