California Clarifies Its Inverse Condemnation Standard
December 30, 2019 —
Gus Sara - The Subrogation StrategistIn City of Oroville v. Superior Court, 446 P.3d 304 (Cal. 2019), the Supreme Court of California considered whether the City of Oroville (City) was liable to a dental practice for inverse condemnation damages associated with a sewer backup. The court held that in order to establish inverse condemnation against a public entity, a property owner must show that an inherent risk in the public improvement was a substantial cause of the damage. Since the dental practice did not have a code-required backwater valve — which would have prevented or minimized this loss — the court found that the city was not liable because the sewage system was not a substantial cause of the loss. This case establishes that a claim for inverse condemnation requires a showing of a substantial causal connection between the public improvement and the property damage. It also suggests that comparative negligence can be a defense to inverse condemnation claims.
In December 2009, a dental practice, WGS Dental Complex (WGS), located in the City, incurred significant water damage as a result of untreated sewage from the City’s sewer main backing up into WGS’ building. WGS submitted a claim to its insurance carrier, The Dentists Insurance Company (TDIC) and, in addition, sued the City for its uninsured losses, alleging inverse condemnation and nuisance. TDIC joined the litigation, alleging negligence, nuisance, trespass and inverse condemnation. Under California law, when a government entity fails to recognize that an action or circumstance essentially amounts to a taking for public use, a property owner can pursue an inverse condemnation action for compensation. The City filed a cross-complaint against WGS for failing to install a code-required backwater valve on their lateral sewer line, which would have prevented or minimized the backup.
The City filed a motion for summary judgment, which the trial court denied. WGS then sought a judicial determination on the issue of inverse condemnation. The City presented evidence that the sewage system was designed in accordance with industry standards, and that WGS failed to comply with the City’s plumbing code by failing to install a backwater valve on its private sewer lateral. The trial court found the City liable for inverse condemnation because the blockage that caused the backup originated in the City’s sewer line. The court held that the blockage was an inherent risk of sewer operation. The Court of Appeals affirmed the decision, holding that the City would have had to prove that the WGS’s lack of a backwater valve was the sole cause of the loss in order to absolve itself of liability.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
University of Tennessee’s New Humanities Building Construction Set to Begin
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFConstruction preparation of the Tennessee Volunteer’s $30.5 million new humanities building has begun, according to The Tennessean. The 80,000 square-foot facility will become the largest building on the university’s campus, and will feature 23 classrooms, 18 labs, 11 collaborative study areas, 56 offices, 20 adjunct faculty workrooms as well as an outdoor theater and courtyard.
“This is a significant milestone in the history of the college,” President Jerry Faulkner told The Tennessean. “This building has been on our wish list for about 12 years in terms of wanting to have this facility available, so for the first time our humanities division is going to have a home of its own.”
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Two Firm Members Among the “Best Lawyers in America”
September 01, 2016 —
A&C Crew – Ahlers & Cressman PLLCWe are excited to announce that John P. Ahlers has been selected as a “Lawyer of the Year” in Construction Law, and John P. Ahlers and Paul R. Cressman, Jr. have been selected as “Best Lawyers in America” in Construction Litigation by Best Lawyers for 2017. Best Lawyers has recognized Mr. Ahlers and Mr. Cressman as “Best Lawyers in America” since 2007 and 2013, respectively.
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HHMR Lawyers Recognized by Best Lawyers
December 27, 2021 —
David M. McLain – Colorado Construction LitigationFor over twenty years, Higgins, Hopkins, McLain & Roswell has embodied and exemplified the principles of service and stewardship. In everything we do, we focus on serving our clients selflessly and to the best of our ability. In doing so, we always have in the forefront of our minds our obligation to act as the stewards of our clients’ trust, confidences, and resources. The firm itself, along with Carin Ramirez (in the area of Litigation - Insurance), and Dave McLain (in the area of Construction) were all recognized in this year's edition of the U.S. News Best Lawyers Journal. We could not be more proud of the firm we have created, or the service we are able to provide to Colorado's construction industry and its insurers.
Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com
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Traub Lieberman Partner Jonathan Harwood Obtains Summary Judgment Determining Insurer Has No Duty to Defend or Indemnify
February 27, 2023 —
Jonathan R. Harwood - Traub LiebermanTraub Lieberman Partner Jonathan Harwood obtained summary judgment in favor of the Plaintiff determining that it had no duty to defend or indemnify an insured in a personal injury action, in a case brought in the Eastern District of New York.
The Plaintiff, an insurance provider (“the Insurer”), issued a General Commercial Policy (the “Policy”) to the Defendant, a commercial property owner (the “Property Owner”). In the underlying action, a former employee (the “Employee”) of a concrete vendor sued the Property Owner, and others, in New York Supreme Court, Queens County, for an injury that occurred on the street in front of the Property Owner’s premises during the course of repairs of sewer pipes that serviced the Property Owner’s premises.
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Jonathan R. Harwood, Traub LiebermanMr. Harwood may be contacted at
jharwood@tlsslaw.com
Gain in Home Building Points to Sustained U.S. Growth
October 22, 2014 —
Michelle Jamrisko and Danielle Trubow – BloombergBuilders started work on more homes in September and American consumers this month were the most optimistic in seven years, signaling the U.S. economy will ride out a global slowdown.
Housing starts climbed 6.3 percent to a 1.02 million annualized rate from a 957,000 pace in August as multifamily and single-family projects advanced, the Commerce Department reported today in Washington. The Thomson Reuters/University of Michigan preliminary sentiment index for October increased to 86.4, the strongest since July 2007, another report showed.
Gains in residential construction will help underpin the economic expansion as the recent drop in mortgage rates lifts home sales and gives builders reason to take on more projects. Other figures showing factory production rebounded last month and claims for jobless benefits dropped last week to the lowest level in 14 years added to evidence the turbulence in global markets has yet to depress the world’s largest economy.
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net; Ms. Trubow may be contacted at dtrubow@bloomberg.net
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Michelle Jamrisko and Danielle Trubow, Bloomberg
Insurer’s Motion for Summary Judgment Based on Earth Movement Exclusion Denied
October 28, 2011 —
Tred R. Eyerly - Insurance Law HawaiiAfter carefully dissecting the earth movement exclusion, the court denied the insurer’s motion for summary judgment. High Street Lofts Condominium Assoc., Inc. v. Am. Family Mut. Ins. Co., 2011 U.S. Dist. LEXIS 109043 (D. Colo. Sept. 26, 2011).
The City of Boulder performed road repair work near High Street’s property, some of which involved the use of a vibrating compactor to compact and set the roadbed. High Street noticed damage to its building, such as cracks in walls, sloping of floors and separations of porches from the building itself. High Street contacted the City of Boulder, who forwarded the complaint to its contractor, Concrete Express, Inc.
High Street also filed a claim with its business insurer, American Family, who denied the claim. American Family relied on an opinion letter by High Street’s engineer. The letter indicated that the damage was the result of "soil consolidation/settlement," in response to the construction activities. Based on this letter American Family concluded the claim was excluded under the policy’s earth movement exclusion.
High Street sued American Family, who moved for summary judgment.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Extrinsic Evidence, or Eight Corners? Texas Court Sheds Light on Determining the Duty to Defend
December 18, 2022 —
Nathan A. Cazier - Payne & FearsLast year, the Texas Supreme Court adopted a narrow exception to the state’s eight-corners rule, and allowed the consideration of extrinsic evidence to determine the duty to defend. The exception arguably raised more questions than it resolved. Last month, a Texas federal court answered some of these questions by rejecting an insurer’s attempt to introduce extrinsic evidence under the newly minted exception.
Texas permits few, if any, deviations from its eight-corners rule, which determines an insurer’s duty to defend by only considering the operative pleading and the terms of the policy, without any regard to extrinsic evidence or facts. This protects policyholders by erring on the side of defending claims, even if coverage is questionable. In Monroe Guar. Ins. Co. v. Bitco Gen. Ins. Corp., 640 S.W.3d 195, 199 (Tex. 2022) (“Monroe”), the Texas Supreme Court adopted an exception to the eight-corners rule, holding that extrinsic evidence may be considered when an “information gap” between the pleading and the policy makes it impossible to determine coverage, but only in limited scenarios where the extrinsic evidence (1) goes solely to an issue of coverage and does not overlap with the merits of liability, (2) does not contradict facts alleged in the pleading, and (3) conclusively establishes the coverage fact to be proved.
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Nathan A. Cazier, Payne & FearsMr. Cazier may be contacted at
nac@paynefears.com