Court Holds That Insurance Producer Cannot Be Liable for Denial of COVID-19 Business Interruption Claim
November 23, 2020 —
Christopher P. Leise & Marc L. Penchansky - White and Williams LLPAfter an insurance carrier denied a lawyer and her law firm’s claim for lost business income due to the COVID-19-related shutdown, she sued both her carrier and the insurance producer that procured the policy. See Wilson v. Hartford Casualty Company, No. 20-3384 (E.D.Pa. Sep. 30, 2020). In one of the first cases to consider producer liability in COVID-19 cases, Judge Eduardo Robreno dismissed the lawsuit against the producer and the carrier.
USI procured the Policy from Hartford for Rhonda Hill Wilson and her law firm. The Policy included coverage for lost business income and extra expense caused by direct physical loss of, or damage to property. Similarly, the Policy covered lost business income if a nearby property experienced a direct physical loss that caused a civil authority to issue an order that prohibited access to the law firm’s property. The Policy also included a virus exclusion “for loss or damage caused directly or indirectly by . . . [p]resence, growth, proliferation, spread or any activity of . . . virus.”
Judge Robreno did not decide whether the Policy afforded any coverage to Wilson and her law firm for their COVID-19 losses. Rather, he found that even if they could, the virus exclusion unambiguously barred any coverage they could possibly claim. For that reason, Judge Robreno dismissed the claims against Hartford.
Reprinted courtesy of
Christopher P. Leise, White and Williams LLP and
Marc L. Penchansky, White and Williams LLP
Mr. Leise may be contacted at leisec@whiteandwilliams.com
Mr. Penchansky may be contacted at penchanskym@whiteandwilliams.com
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Gilroy Homeowners Sue over Leaky Homes
February 10, 2012 —
CDJ STAFFTwo years into a lawsuit against Shapell Homes, the builder of a subdivision called Eagle Ridge in Gilroy, California, homeowners have joined or left the lawsuit. About fifty homeowners are still in the suit, which contends that construction defects have lead to water intrusion in their homes. The lawyer for the homeowners contends that more than a hundred homes have construction defects.
One homeowner said that soon after he joined the suit, Sharpell sent workers to his home who repaired problems to his satisfaction. “They came in within two weeks and fixed everything,” said Frank Lowry. Another homeowner, Wilson Haddow, said that he was “quite happy” after Shapell repaired problems.
Others weren’t quite so happy. Greg Yancey said that problems had “been a nightmare” and that “it just doesn’t feel like home.” He said that his “house is possessed,” with problems that include walls that bow out and a balcony that drips rainwater to the front door. His home is currently worth far less than the $700,000 he paid in 2007.
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Quick Note: Third-Party Can Bring Common Law Bad Faith Claim
July 01, 2019 —
David Adelstein - Florida Construction Legal UpdatesA third-party claimant may bring a common law bad faith claim against a defendant’s liability insurer. Mccullough v. Royal Caribbean Cruises, 2019 WL 2076192, *2 (S.D.Fla. 2019). “A bad faith claim may be brought by a third party absent an assignment from the [defendant] insured.” Id. This can only be done in the third-party bad faith context with the argument that the insurer’s “bad faith” conduct resulted in a judgment against the defendant-insured in excess of the policy limits. However, in any third-party bad faith claim (and, really, bad faith claim in general), coverage must first be determined under the policy.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Newmeyer Dillion Announces Jason Moberly Caruso As Its Newest Partner
February 01, 2021 —
Newmeyer DillionProminent business and real estate law firm Newmeyer Dillion is pleased to announce that Newport Beach attorney
Jason Moberly Caruso has been elected to partnership.
"Jason has continually shown himself to be a gifted attorney, both in his ability to expand the firm's offerings in land use, environmental law, and the firm's growing appellate practice, as well as in his exceptional approach to client service," said the firm's Managing Partner, Paul Tetzloff. "His positive presence is felt wherever he goes, and we're honored to have him join the firm's partnership."
Caruso focuses his practice on various aspects of "contaminated sites" environmental legal work, complex litigation, and appellate matters. He counsels and represents current and former facility owners and operators in state and federal proceedings, administrative actions, cost recovery cases, and non-litigation site remediation situations. The litigated matters frequently involve the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and its parallel California Hazardous Substances Account Act (HSSA). When clients must go to court, Caruso applies his significant experience in complex state and federal litigation over a broad range of substantive areas, including environmental, business, real estate, construction, and products liability. His experience extends from pre-litigation through trial and post-trial proceedings.
Caruso's practice also includes a special emphasis on appellate matters. Caruso has briefed and argued multiple appeals in the state and federal courts, obtaining victories for clients in general appellate and extraordinary writ proceedings. Caruso has prosecuted and defended appeals involving the firm's existing cases and clients, but has also been engaged by outside clients after the conclusion of trial court proceedings.
An active member of the community, Caruso serves as a mock trial attorney coach for University High School through the Constitutional Rights Foundation Orange County (CRF-OC) and as a member of CRF-OC's Board of Directors. He also serves as a member and secretary of the Orange County Bar Association's Professionalism & Ethics Committee, and is a member of the executive committee of the William P. Gray Legion Lex Inn of Court. Caruso is also committed to pro bono work, endeavoring always to be representing at least one pro bono client via Orange County's Public Law Center.
Caruso earned his B.A., cum laude, from the University of Southern California, and his J.D., cum laude, from the University of California, Hastings College of Law.
About Newmeyer Dillion
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 65 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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Couple Perseveres to Build Green
August 27, 2013 —
CDJ STAFFMost homeowners don’t want to make their way through the mountain of paperwork required for LEED certification. But according to the Patriot News, Jens and Donna Damgaard aren’t most homeowners. The Damgaards set out to build a LEED-certified home, and struck with it to the end.
The Damgaards started out by assembling a team so there wouldn’t be any questions down the road. They also kept going green as a goal, no matter what. Don Park, their contractor, said that “it worked out well. There was never a cost issue.”
Jens Damgaas is an attorney in Harrisburg, and he put his skills as a lawyer to work in going through the paperwork, as if he were the projet’s LEED consultant. One further takeaway from the contractor, “everyone wants two-button toilets.”
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Don’t Waive Too Much In Your Mechanic’s Lien Waiver
December 22, 2019 —
Christopher G. Hill - Construction Law MusingsIn the past few years, the Virginia General Assembly has, with certain caveats, precluded pre-furnishing waiver of mechanic’s lien rights. While this essentially outlawed the types of mechanic’s lien waiver clauses that pervaded construction contracts in Virginia, the key to the previous sentence is “pre-furnishing.” What the General Assembly left intact were the usual waivers of mechanic’s lien rights typically required to be provided to Owners and others in the payment chain in exchange for payment.
These lien waivers come in a few “flavors” from conditional to unconditional, partial to full. Their terms usually include an acknowledgement of receipt of payment (we’ll get to this later), and a statement that the one seeking payment knows of no possible claims by lower tier subcontractors and then waives all mechanic’s lien rights against the property for work performed and included in the request for payment. Often over my years as a Virginia construction attorney, I have noticed that these waivers are often signed without comment or review. They are just part of the process and more often than not are not even an issue for most projects. Of course, if they are an issue they can be a big one, and their terms can come back to bite a claimant that has not properly vetted them.
The first potential issue is waiving lien rights while acknowledging receipt prior to actual receipt of the check or wire. Many of the waiver forms that are out there list a payment amount, or possibly simply state that the waiver is in exchange for some small payment, and then state “receipt of which is acknolwedged” or something similar. The issue here is that receipt may not have happened yet because these lien waivers are submitted as part of the payment package in order to get paid in the first place. In short, should you sign the waiver prior to payment, you may have acknowledged a non-event and in the event of non-payment have a written document stating that you waived your claim to a lien for that money. What a court would do with this, I am unsure, but why risk it? My advice, be sure your waiver is contingent on actual clearance of payment as well as receipt.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Deadly Fire in Older Hawaii High-Rise Causes Sprinkler Law Discussion
July 19, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Last Friday, at least three people died and twelve were injured during a fire at a Honolulu high-rise that did not have sprinklers, according to CBS News. The fire began on the 26th floor and spread to at least the 28th floor and several units, the Honolulu Fire Department spokesman, Captain David Jenkins, stated.
“Without a doubt if there were sprinklers in this apartment, the fire would be contained to the unit of origin,” Captain Jenkins concluded, as reported by CBS News.
The Marco Polo development “was built four years before Honolulu required fire sprinkler systems in new residential high-rises,” the LA Times reported. “In 2005, the Honolulu City Council created a task force to estimate the cost of retrofitting and installing fire sprinkler systems in about 300 residential condominium buildings. A report estimated that retrofitting the Marco Polo would cost $4,305.55 for each unit.” A separate report estimated the cost would be $4.5 million to retrofit the entire building.
According to Samuel Dannway, chief fire protection engineer for Coffman Engineers in Honoloulu, stated that the owners “lobbied strongly against any retrofitting” due to cost.
Retrofitting sprinklers is more challenging in residential high-rises than office buildings, Glenn Corbett, associate professor of fire science at John Jay College of Criminal Justice in New York told the LA Times. “Wall after wall, you have to penetrate with piping, and that means moving people around in apartments,” Corbett said. “They can’t live there while workers are drilling holes in their walls.”
Mayor Kirk Caldwell stated that Honolulu “needs to look at passing a new law requiring sprinklers in older high-rises.”
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Mortgage Firms Face Foreclosure Ban Until 2022 Under CFPB Plan
April 05, 2021 —
Alex Wittenberg - BloombergMillions of homeowners who’ve fallen behind on mortgage payments due to the pandemic would have more time before facing foreclosure under rules proposed Monday by the Consumer Financial Protection Bureau.
The revamp would generally prohibit mortgage servicers from starting foreclosures until after Dec. 31, the CFPB said in a statement. The goal is to give the nearly 3 million borrowers who’ve delayed or stopped making payments a chance to resume them before lenders initiate forced home sales.
A key reason why the CFPB said the change is necessary is because an estimated 1.7 million consumers will exit U.S. forbearance relief programs in September and the ensuing months, meaning they will have to start making payments again.
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Alex Wittenberg, Bloomberg
