Seattle Washington Building Expert Directory

Sixth Circuit Affirms Liability Insurer's Broad Duty to Defend and Binds Insurer to Judgment Against Landlord

September 07, 2020 — Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & Vita
In a victory for policyholders, the Sixth Circuit affirmed that a landlord’s insurer owed a duty to defend the landlord in a bodily injury claim arising out of a fire that killed three and injured one. The Court held that the insurer breached its duty to defend and was bound to the insured’s $3 million consented judgment. Transition Investments LLC, an owner of three properties in the Detroit area, purchased a general liability insurance policy with Hamilton Specialty Insurance Company to insure its properties. At one of the properties, a faulty stove started a fire, destroying the building, injuring one person and killing three others. The estates of the deceased and the injured party sued Transition in Michigan state court. In their complaint, the plaintiffs contended that Transition failed to provide a habitable premise and neglected to maintain the property’s stove, which allegedly caused the fire. The plaintiffs argued that Transition’s negligent maintenance of the property led to the fire and the resulting injuries. Transition subsequently tendered the claim to Hamilton. Hamilton claimed that the insurance policy did not cover the fire’s damages and refused to participate in the state court litigation. Ultimately, Transitions entered into a consent judgment with the plaintiffs for $3 million. Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita and Janie Reilly Eddy, Saxe Doernberger & Vita Mr. Pepe may be contacted at mvp@sdvlaw.com Ms. Eddy may be contacted at jre@sdvlaw.com Read the court decision
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KF-103 v. American Family Mutual Insurance: Tenth Circuit Upholds the “Complaint Rule”

May 12, 2016 — Adria Robinson – Colorado Construction Litigation
In Colorado, the “complaint rule” requires insurance carriers to provide a defense to its insured when the allegations contained in the complaint allege any set of facts that may fall within an insurance policy. Some insurers have pushed back on this rule arguing that it may cause an insurer to exercise its duty to defend although the underlying facts ultimately do not fall within the policy. In KF 103-CV, LLC v. American Family Mutual Insurance Company, 2015 WL 6517782, the Tenth Circuit of the United States Court of Appeals upheld the complaint rule. In its decision, the Tenth Circuit cited several Colorado state court rulings recognizing the courts’ intent to incentivize insurers to defend policies that may facially fall within the terms of the policy. Where there is uncertainty about coverage, the Tenth Circuit cited a Colorado Supreme Court case stating, “[t]he appropriate course of action for an insurer who believes that it is under no obligation to defend, is to provide a defense to the insured under the reservation of its rights.” Read the court decision
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Reprinted courtesy of Adria Robinson, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Robinson may be contacted at robinson@hhmrlaw.com

Force Majeure, Construction Delays, Labor Shortages and COVID-19

April 06, 2020 — Elizabeth J. Dye - Gravel2Gavel Construction & Real Estate Law Blog
The global effect of the Coronavirus disease (COVID-19) is still unknown, and the progress of many large-scale construction projects has been affected by “Shelter in Place” orders, although some states and localities have classified construction projects as “essential.” Just last Friday, New York shut down all construction, with few exceptions. Several states have enacted gathering bans of all sizes (including Michigan, Oregon, New Mexico, Washington, New York, New Jersey, Wisconsin, Illinois, Indiana, Ohio, West Virginia, California) and more people are likely to be quarantined as widespread testing becomes available. These decisions will undoubtedly affect the supply of materials and labor necessary for construction projects. Officials have turned to increasingly disruptive and measures to control the spread of the virus in addition to event prohibitions and school closures, including restricting people to their homes, and closing businesses that are not “essential.” While many companies have adopted mandatory telecommuting, this is an impossibility on the construction sites. Eventually, supply and labor shortages due to governmental restrictions or quarantines will affect the critical path of construction projects. Read the court decision
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Reprinted courtesy of Elizabeth J. Dye, Pillsbury
Ms. Dye may be contacted at elizabeth.dye@pillsburylaw.com

Disputes Will Not Be Subject to Arbitration Provision If There Is No “Significant Relationship”

November 29, 2021 — David Adelstein - Florida Construction Legal Updates
As you know from prior articles, arbitration is a creature of contract. This means if you want your disputes to be resolved by binding arbitration, as opposed to litigation, you want to make sure there is an arbitration provision in your contract. If there are certain types of disputes you do not want subject to arbitration, you want to specify those types of disputes/claims in your arbitration provision. If you are not sure, make sure to discuss the pros and cons of arbitration with your counsel when drafting and negotiating the contract. However, even with a broad arbitration provision, there are times where a dispute may still fall out of the scope of the arbitration provision, i.e., the dispute is not arbitrable. If this occurs, such dispute will be resolved by litigation. Parties that have buyer’s remove and do not want to arbitrate their dispute may try to make this argument that the dispute is not subject to the scope of the arbitration provision. There are times this argument carries weight because the dispute has no significant relationship to the agreement with the arbitration provision, as shown below. In Deweees v. Johnson, 46 Fla. L. Weekly D2356b (Fla. 4th DCA 2021), a plaintiff purchased a home in a private residential community. The purchase contract with the developer contained a broad arbitration provision that materially provided that, “all post-closing claims, disputes, and controversies…between purchaser and seller will be resolved by binding arbitration except those arising under section G.5 and G.6 above.” Dewees, supra. Sections G.5 and G.6 provided that the purchaser will not interfere in the sales process with other purchasers and will not interfere with workmen during the construction process. There was also a workmanship and structural defect warranty for the dwelling that also contained an arbitration provision. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Carin Ramirez and David McLain recognized among the Best Lawyers in America© for 2021

March 15, 2021 — Colorado Construction Litigation Blog
Higgins, Hopkins, McLain & Roswell is pleased to announce that Carin Ramirez and David McLain were recently selected by their peers for inclusion in The Best Lawyers in America© for 2021. Carin Ramirez has been recognized for her work in insurance litigation and David McLain has been recognized for his work in construction law. Carin Ramirez has over 11 years of experience in civil defense litigation with an emphasis on the defense of construction defect lawsuits on behalf of developers, general contractors, and other construction professionals. She also practices in the areas of personal injury defense, premises liability, environmental torts, wrongful death, negligent design, property damage, subrogation claims, contract disputes, bad faith, and commercial litigation. David McLain has over 22 years of experience and is well known for his work in the defense of the construction industry, particularly in the area of construction defect litigation. He is a member of the Executive Committee of the CLM Claims College - School of Construction, which is the premier course for insurance, industry, and legal professionals. HHMR is highly regarded for its expertise in construction law and the litigation of construction-related claims, including the defense of large and complex construction defect matters. Our attorneys provide exceptional service to individuals, business owners, Fortune 500 companies, and the insurance industry. The firm is experienced in providing legal support throughout trials and alternative dispute resolution such as mediations and arbitrations. Read the court decision
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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell

Pennsylvania Supreme Court: Fair Share Act Does Not Preempt Common Law When Apportioning Liability

March 09, 2020 — Mark T. Caloyer & Joelle Nelson - Lewis Brisbois Newsroom
On February 19, 2020, the Pennsylvania Supreme Court issued a long awaited opinion in the matter of Roverano v. John Crane, Inc., No. 26 EAP 2018, No. 27 EAP 2018 (Pa. 2020). The Court’s opinion is a must-read for anyone involved in asbestos litigation in Pennsylvania. In Roverano, the Court ruled that Pennsylvania’s Fair Share Act (42 Pa.C.S. § 7102) does not preempt Pennsylvania common law favoring per capita apportionment of liability to strict liability defendants. In addition, the Court ruled that bankruptcy trusts, that are either joined as third-party defendants or that have entered into a release with the plaintiff, may be included on the verdict sheet for purposes of liability. In this case, Mr. Roverano sued 30 defendants in strict liability and Defendant Crane filed a joinder complaint against Johns-Manville Personal Injury Trust. The case proceeded to trial against eight defendants in the Court of Common Pleas of Philadelphia County. At trial, some of the defendants filed motions in limine seeking a ruling that the Fair Share Act applied to asbestos cases. The trial court denied the motion, concluding that asbestos exposure cannot be quantified, and held that that it would apportion liability on a per capita basis consistent with the Court’s opinion in Baker v. AC&S, 755 A.2d 664 (Pa. 2000). Reprinted courtesy of Mark T. Caloyer, Lewis Brisbois and Joelle Nelson, Lewis Brisbois Mr. Caloyer may be contacted at Mark.Caloyer@lewisbrisbois.com Ms. Nelson may be contacted at Joelle.Nelson@lewisbrisbois.com Read the court decision
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The Reptile Theory in Practice

September 06, 2021 — Nicholas P. Hurzeler - Lewis Brisbois
The “Reptile Theory” is a trial strategy that attempts to use fear and anger to make the jury dislike the defendant so strongly they will award a plaintiff a grossly excessive amount of damages. The plaintiff’s attorney will seek to activate the jurors’ “survival mode” instincts by presenting the defendant’s conduct as highly dangerous and worthy of punishment. The defendant’s conduct will be portrayed as a threat to the safety of the general public, and the award as a deterrent needed to protect the community at large. The Reptile Theory appeals to the jurors’ emotions in place of any rational, impartial evaluation of the evidence. The term “Reptile Theory” originated in the writings of nuero-physiologist Paul D. MacLean in the 1950s, who suggested that one major part of the brain consisted of a “reptilian complex” that controlled instinctive behaviors involved in aggression, dominance, and territoriality. Then in the 2009 publication “Manual of the Plaintiff’s Revolution” by David Ball and Don Keenan, the authors first described the “Reptile Theory” in the context of litigation. Since then it has become a hot topic in litigation as defense counsel develop methods to combat “Reptile” tactics resulting in runaway jury awards. Read the court decision
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Reprinted courtesy of Nicholas P. Hurzeler, Lewis Brisbois
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com

Insurer Must Cover Construction Defects Claims under Actual Injury Rule

March 01, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The Texas Court of Appeals held that the insured need not prove the exact dates physical damage occurred in order to trigger defense and indemnity coverage. Vines-Herrin Custom Homes, LLC v. Great Am. Lloyds Ins. Co., 2011 Tex. App. LEXIS 10027 (Tex. Ct. App. Dec. 21, 2011).

In 1999, the insured built a home. He was insured under a CGL policy issued by Great American from November 9, 1998 to November 9, 2000. Thereafter, the insured held a CGL policy issued by Mid-Continent from November 9, 2000 to September 18, 2002.

After construction was completed, the insured sold the house to the buyer in May 2000. After moving in, the buyer found numerous construction defects in the home, including water entering cracks in the home, and sinking and sagging of parts of the house. The buyer sued the insured, who sought coverage under the two policies. When the insurers refused to defend the underlying suit, the insured sued for a declaratory judgment.

The underlying case went to arbitration and an award of $2.4 million was granted to the buyer. The insured assigned to the buyer his claims against the insurers.

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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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