Buyer's Demolishing of Insured's Home Not Barred by Faulty Construction Exclusion
June 21, 2017 —
Tred R. Eyerly - Insurance Law HawaiiLoss of the insured's home caused by a renter who demolished the home was covered under the homeowner's policy. Fisher v. Garrison Prop. & Cas. Ins. Co., 2017 Idaho LEXIS 143 (Idaho May 26, 2017).
The insured, Shammie L. Fisher, entered a Purchase Agreement to sell her home to Ron Reynoso. The purchase of the property was contingent upon Reynoso obtaining financing. Before completing the purchase, he would lease the property. The Agreement stated, "Buyer intends to make certain improvements to the property upon possession, with the intent to sell the property for a profit."
Within two months of renting the property to Reynoso, Fisher learned that he had demolished the entire house down to the foundation. He then ceased work and left. Fisher made a claim under her policy, but Garrison Property and Casualty Insurance Company denied coverage based upon the exclusion for faulty, inadequate or defective work. When Fisher sued, the trial court granted summary judgment to Garrison.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Families First Coronavirus Response Act: What Every Employer Should Know
April 06, 2020 —
Donald A. Velez, Karissa L. Fox & Sarah K. Carpenter - Smith CurrieSmith Currie provides this update regarding the Families First Coronavirus Response Act as part of its continuing effort to monitor developments concerning the Coronavirus disease (“COVID-19”) and provide guidance as to potential issues that may arise in businesses across the United States.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Act”), which contains provisions requiring certain private employers to provide paid leave to employees who cannot work because of Coronavirus, expanding Family and Medical Leave Act coverage, providing for federal tax credits to affected employers, and providing eligible states the ability to further fund their unemployment trust fund accounts. The Act is effective as of April 2, 2020 and will remain in place through December 31, 2020.
Below, we provide a summary of the Act and several of its key components, including the Emergency Family and Medical Leave Expansion Act (“EFMLEA”), the Emergency Paid Sick Leave Act, and the Emergency Unemployment Insurance Stabilization and Access Act.
Reprinted courtesy of Smith Currie attorneys
Donald A. Velez,
Karissa L. Fox and
Sarah K. Carpenter
Mr. Velez may be contacted at davelez@smithcurrie.com
Ms. Fox may be contacted at klfox@smithcurrie.com
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com
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The Proposed House Green New Deal Resolution
February 27, 2019 —
Anthony B. Cavender - Gravel2GavelA Resolution has been proposed to the House for consideration that would recognize the Federal Government’s duty “to create a Green New Deal.” It sets forth a very ambitious 10-year program to mobilize and transform every aspect of American life to combat the threats of climate change by transitioning to an economy based upon 100% clean and renewable energy.
In doing so, millions of new jobs would be created, and everyone who wants a job would be guaranteed a job. The sponsors’ talking points declare that there is no time to lose, that Americans love a challenge, and “this is our moonshot.” The obvious goal is to eliminate the generation and use of fossil fuel and nuclear energy—they are simply not part of the solution.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
When is a “Willful” Violation Willful (or Not) Under California’s Contractor Enforcement Statutes?
April 17, 2019 —
Garret Murai - California Construction Law BlogThe enforcement statutes applicable to the California Contractors’ State License Board aren’t exactly models in clarity. A few examples:
1. Business and Professions Code Section 7107: Abandonment without legal excuse of any construction project or operation engaged in or undertaken by the license as a contractor constitutes a cause for disciplinary action.
2. Business and Professions Code Section 7109: A willful departure in any material respect from accepted trade standards for good and workmanlike construction constitutes a cause for disciplinary action, unless the departure was in accordance with plans and specifications prepared by or under the direct supervision of an architect.
3. Business and Professions Code Section 7110: Willful or deliberate disregard and violation of the building laws of the state, or any political subdivision thereof, . . . or of the safety or labor laws or compensation insurance laws or Unemployment Insurance Code of the State, or of the Subletting and Subcontracting Fair Practice Act, or violation by any licensee of any provision of the Health and Safety Code or Water Code, relating to the digging, boring, or drilling of water wells, constitutes a cause for disciplinary action.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
2014 WCC Panel: Working Smarter with Technology
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFDon MacGregor, Project Manager and General Contractor with Bert L. Howe & Associates, will be joining Brian Kahn, Esq. of Chapman, Glucksman, Dean, Roeb & Barger, Paul R. Kiesel, Esq. of Kiesel Law, Hon. Peter Lichtmen (ret), Hon. Nancy Wieben Stock (ret), and Peter S. Curry of Curry Stenger Engineering as a panelist in the break-out session Working Smarter With Technology at the 2014 West Coast Casualty Construction Defect Seminar being held May 15th and 16th at the Disneyland Hotel in Anaheim, California.
With a strong focus on the topic of this year’s seminar, Back to Business . . . Working Smarter, Not Harder, the panel will discuss ways that technology can assist our industry in working more efficiently, saving money and providing a better product. Conversely, the panel will also acknowledge the limitations of technology and areas where the use of advanced technology may not be appropriate.
The information provided will be of benefit to the construction defect litigator but equally valuable to other types of complex litigation. Accordingly, this panel will appeal to those whose scope of work goes beyond the bounds of construction defect. A brief outline of topics that will be addressed by each panelist include remote virtual appearance and deposition attendances, document management software, how to create, manage and edit documents using remote technology, technological tools that allow for easier communications, transfer of information and flexibility, expert technology, and technology in mediation and trial.
The panel discussion will go beyond past seminar discussions in that they will discuss and demonstrate tools that are just coming into use now as well as new tools which are being released prior to the seminar.
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Nader Eghtesad v. State Farm General Insurance Company
September 28, 2020 —
Michael Velladao - Lewis BrisboisIn Eghtesad v. State Farm Gen. Ins. Co., 51 Cal.App.5th 406 (June 29, 2020), the California Court of Appeal reversed the trial court’s entry of judgment in favor of State Farm General Insurance Company (“State Farm”) based on an order sustaining a demurrer without leave to amend regarding a complaint filed by Nader Eghtesad. Mr. Eghtesad, representing himself, filed a form complaint checking a box for breach of contract. The complaint alleged two paragraphs contending that State Farm had acted in bad faith and concealed benefits due under a policy issued to a former tenant who rented space in a building owned by Eghtesad. Eghtesad was an additional insured under the tenant’s policy. In that regard, the building was damaged during the time that the building was rented and Eghtesad tendered a claim under the State Farm policy contending that he was an additional insured pursuant to the terms of the lease with the tenant. According to Eghtesad, State Farm advised him that he could only make a claim for slander against the former tenant and that coverage was not afforded for his property damage claim.
After Eghtesad filed his form complaint, State Farm demurred to the complaint and argued that it did not state facts supporting a cause of action for breach of contract. Ultimately, the trial court agreed with State Farm and entered an order sustaining the demurrer without leave to amend, such that a judgment was entered in State Farm’s favor. Due to health reasons, Eghtesad was never able to file an opposition to the demurrer, despite two extensions of time provided by the trial court intended to allow Eghtesad time to retain counsel and to recover from injuries sustained as a result of an automobile accident.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
New York Appellate Court Restores Insurer’s Right to Seek Pro Rata Allocation of Settlements Between Insured and Uninsured Periods
March 28, 2022 —
Patricia B. Santelle & Frank J. Perch, III - White and Williams LLPIn Liberty Mut. Ins. Co. v. Jenkins Bros., 2022 N.Y. App. Div. LEXIS 1846 (App.Div. 1st Dept. March 22, 2022), the New York Supreme Court, Appellate Division, First Department, issued a ruling reversing the trial court and holding that an insurer was entitled to allocate a portion of asbestos claim settlements it negotiated to time periods when its dissolved insured was without coverage.
The decision overturns a trial court ruling that the insurer was barred from denying liability for the full amount of the settlements because the insurer had become the “real party in interest” as a result of a prior court order directing it to accept service of process on behalf of a dissolved insured. The trial court held that the insurer stood in the shoes of the insured for all purposes by accepting service and negotiating settlements, and was therefore estopped from denying liability for the full amount of the settlements.
Reprinted courtesy of
Patricia B. Santelle, White and Williams LLP and
Frank J. Perch, III, White and Williams LLP
Ms. Santelle may be contacted at santellep@whiteandwilliams.com
Mr. Perch may be contacted at perchf@whiteandwilliams.com
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Judge Rejects Extrapolation, Harmon Tower to Remain Standing
November 07, 2012 —
CDJ STAFFCityCenter has filed an emergency motion asking the Nevada Supreme Court to intervene in Judge Elizabeth Gonzalez’ order that the building’s defects cannot be extrapolated from those tested. CityCenter’s structural engineering expert “evaluated 397 of the Harmon’s critical structural elements and found all but one defective,” according to the article on Vegas.Inc. Judge Gonzalez would not permit this to be extrapolated to the untested 1,072, as the locations tested were not random.
Judge Gonzalez also ruled that if CityCenter does additional testing, they may not appeal her order that ruled the extrapolation inadmissible. CityCenter argued to the Nevada Supreme Court that “the notion that CityCenter should be forced to incur additional millions of dollars in testing costs and sanctions – on the condition that it waive its right to appeal this ruling – just to be permitted to present its own damages evidence, shocks the conscience.”
Gonzalez gave the okay to CityCenter to demolish the building, but its demolition would make any further testing impossible. Under Gonzalez’ ruling, the untested structural elements cannot b assumed to be defective.
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