Dorian’s Wrath: How Event Cancellation Insurance Helps Businesses Recoup Losses from Severe Weather
December 16, 2019 —
Sergio F. Oehninger, Andrea DeField & Daniel Hentschel - Hunton Insurance Recovery BlogAs the 2019 hurricane season peaks, the Bahamas and the Southeast United States have already endured a catastrophic storm. Hurricane Dorian not only tragically caused loss of life and substantial property damage, but it also led to the cancellation or postponement of major events, resulting in considerable economic losses for affected companies.
For instance, Hurricane Dorian forced the cancellation of one of the Rolling Stones’ concerts at Hard Rock Stadium in Miami, as well as the cancellation of R&B singer Chris Brown’s concert in Fort Lauderdale. Dorian also affected the college football game between Florida State University and Boise State University in Jacksonville. Having sold 45,000 tickets to the game, officials were forced to move the game inland to Tallahassee at great expense and effort.
The planners, headliners, teams and fans of these and similar events were not the only ones affected by the cancellations and schedule changes. Hotels, restaurants and businesses relying on tourism also were severely impacted by the schedule changes resulting from Hurricane Dorian over Labor Day weekend. Other programming that may have been affected includes conventions and meetings, fairs and festivals, trade shows and exhibitions, or any other corporate events planned to take place outdoors, requiring travel or with ticket-paying audiences.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Sergio F. Oehninger,
Andrea DeField and
Daniel Hentschel
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Drafting a Contractual Arbitration Provision
February 11, 2019 —
David Adelstein - Florida Construction Legal UpdatesA recent Florida case discussing a contractual arbitration provision in a homebuilder’s contract discussed the difference between a narrow arbitration provision and a broad arbitration provision. See Vancore Construction, Inc. v. Osborn, 43 Fla.L.Weekly D2769b (Fla. 5th DCA 2018). Understanding the distinction between the two types of arbitration provisions is important, particularly if you are drafting and/or negotiating a contractual arbitration provision.
A narrow contractual arbitration provision includes the verbiage “arises out of” the contract such that disputes arising out of the contract are subject to arbitration. Arbitration is required for those claims the have a direct relationship with the contract.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Lessons from the Sept. 19 Mexico Earthquake
October 19, 2017 —
Nadine M. Post - Engineering News-RecordOn the 32nd anniversary of the magnitude-8.1 earthquake that devastated Mexico City on Sept. 19, 1985, 41 U.S. seismic experts were in a workshop near Los Angeles, polishing a new tool to identify “killer” buildings: non-ductile concrete structures that often perform poorly in quakes. Suddenly, the attendees started getting pager alerts from the U.S. Geological Survey: A magnitude-7.1 quake had struck about 120 kilometers from Mexico City.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com
Lawsuit Gives Teeth to Massachusetts Pay Law
September 16, 2024 —
Joseph Barra - Robinson+Cole“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered.
Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds.
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Joseph Barra, Robinson+ColeMr. Barra may be contacted at
jbarra@rc.com
Eleventh Circuit Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond
February 27, 2019 —
CDJ STAFFOn October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision.
The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond.
Reprinted courtesy of
Gary M. Stein, Peckar & Abramson and
K. Stefan Chin, Peckar & Abramson
Mr. Stein may be contacted at gstein@pecklaw.com
Mr. Chin may be contacted at kschin@pecklaw.com
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Wildfire Insurance Coverage Series, Part 2: Coverage for Smoke-Related Damages
July 03, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogFor many policyholders, smoke emanating from wildfire causes as much if not more damage than the fire itself. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss damages caused by smoke emanating from wildfires.
Some insurers argue that policies are limited to fire damage to the insured property and do not include smoke damage associated with nearby fires. A treatise frequently cited by insurers states otherwise: “The concept that fire insurance covers non-fire damage which is the proximate result of fire finds application also when the fire occurs on other property and causes harm to the insured property. In such case, the harm to the insured property, even though it is a non-fire harm, has long been recognized to be the result of fire, and, therefore, within the policy coverage.”
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Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses
April 06, 2016 —
David A. Harris – Haight Brown & Bonesteel LLPPayment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs until it receives funding from the owners. The subs, of course, want their progress and final payments as soon as possible.
Up until 1997, two different payment provisions were used in California contracts to manage payments by a general to its subcontractors. The first was called a “pay if paid” clause, and provided a contractor did not have to pay its subcontractors for work performed unless the subcontractor was first paid by the owner of the project. The second was the “pay when paid clause.” It required subcontractors to be paid for their work after the general was paid by the owner, or within “a reasonable time” after the subcontractors finished their work if the owner did not pay the general.
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David A. Harris, Haight Brown & Bonesteel LLPMr. Harris may be contacted at
dharris@hbblaw.com
#5 CDJ Topic: David Belasco v. Gary Loren Wells et al. (2015) B254525
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFChapman Glucksman Dean Roeb & Barger attorneys
Richard H. Glucksman,
Jon A. Turigliatto, and
David A. Napper analyzed the above mentioned Belasco case, in which “the Second District Court of Appeal made clear that settlement agreements containing waviers of unknown claims in connection with a construction of a property, absent fraud or misrepresentation, will be upheld.” Glucksman, et al. explained that “the homeowner plaintiff had made a claim against the builder pursuant to California Code of Civil Procedure Section 896 (“Right to Repair”) and settled for a cash payment and obtained a Release of all Claims including for all known and unknown claims. The court held that homeowner’s subsequent construction defect claim was barred pursuant to the terms and conditions of the earlier release.”
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In another article on the subject,
Edward A. Jaeger, Jr. and
William L. Doerler of
White and Williams LLP concluded, “The Court of Appeal’s holding establishes that, despite the prohibition against the release of unknown claims set forth in section 1524 and the protections provided to homeowners by the Right to Repair Act, California homeowners can, in fact, release or waive claims against homebuilders for future, latent construction defects. To release or waive such claims, the language of any settlement agreement should be unequivocal.”
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