Landmark Montana Supreme Court Decision Series: Known Loss Doctrine & Interpretation of “Occurrence”
March 06, 2022 —
Lorelie S. Masters, Patrick M. McDermott & Rachel E. Hudgins - Hunton Insurance Recovery BlogIn this final post in the Blog’s
Landmark Montana Supreme Court Decision Series, we discuss the court’s ruling on the known loss doctrine and its interpretation of “occurrence” in
National Indemnity Co. v. State, 499 P.3d 516 (Mont. 2021).
Personal injury claims against the State of Montana arose out of its alleged failure to warn Libby residents about the danger of asbestos exposure despite the State’s regulatory inspections of the Libby Mine as early as the 1950s and through the 1970s. Among other defenses, the insurer contended that there was no coverage for these claims because the asbestos claims arising out of the Libby Mine were a “known loss.” A “known loss” defense, as the court explained, is “not based upon a provision of the Policy, but a common law principle which courts have imposed upon liability policies” that “requires that losses arise without the insureds’ knowledge.”
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth,
Patrick M. McDermott, Hunton Andrews Kurth and
Rachel E. Hudgins, Hunton Andrews Kurth
Ms. Masters may be contacted at lmasters@HuntonAK.com
Mr. McDermott may be contacted at pmcdermott@HuntonAK.com
Ms. Hudgins may be contacted at rhudgins@HuntonAK.com
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How Many New Home Starts are from Teardowns?
April 15, 2015 —
Beverley BevenFlorez-CDJ STAFFIn a NAHB/Wells Fargo Housing Market Index survey, builders were asked “Of the homes you started in 2014, approximately what share were on a site where a previous structure, or evidence of a previous structure, was present before you started?” According to the NAHB, the surveyors reported that “[o]n average, weighted by starts, […] just under five percent of their starts were teardowns according to the survey’s criterion.” When compared to census data, it equates to 31,800 single-family teardown starts in 2014.
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New York High Court: “Issued or Delivered” Includes Policies Insuring Risks in New York
December 20, 2017 —
Bethany Barrese & Samantha Martino - Case Alert BlogOn November 20th, the New York Court of Appeals reinstated a case seeking more than six million dollars in damages against the insurers for DHL Worldwide Express Inc. (“DHL”), originating from a fatal head-on car crash between Claudia Carlson and a truck owned by MVP Delivery and Logistics Inc. (“MVP”), a DHL contractor. The truck, which bore DHL’s logo, was owned by MVP and driven by an MVP employee. The MVP employee was running an errand unrelated to his job at the time of the accident. Mrs. Carlson’s husband sued the employee, DHL, and MVP. The jury award of $20 million was reduced to $7.3 million by the Appellate Division. MVP’s insurer paid Mr. Carlson just over $1 million, and the employee assigned his rights to any other insurance coverage to Mr. Carlson
Mr. Carlson sued DHL and its insurers, seeking the balance of the outstanding judgment pursuant to New York Insurance Law § 3420. The defendants successfully moved to dismiss Mr. Carlson’s claims, which dismissal was affirmed by the Appellate Division on the basis that § 3420 did not apply since the policies in question were not “issued or delivered” in New York; they had been issued in New Jersey and delivered in Washington and Florida. The Court of Appeals was subsequently presented with two questions: (1) whether the DHL policies fell within the purview of Insurance Law § 3420 as policies “issued or delivered” in New York; and (2) whether MVP was an “insured” pursuant to the “hired auto” provisions of DHL’s policies.
Reprinted courtesy of
Bethany Barrese, Saxe Doernberger & Vita, P.C. and
Samantha Martino, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com
Ms. Martino may be contacted at smm@sdvlaw.com
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Contractor’s Assignment of Construction Contract to Newly Formed Company Before Company Was Licensed, Not Subject to B&P 7031
October 04, 2021 —
Garret Murai - California Construction Law BlogAdd one more to the Business and Profession Code section 7031 archives. In Manela v. Stone, Case No. B302660 (July 1, 2021), the 2nd District Court of appeal held that Section 7031 did not apply to a contractor licensed as a sole proprietor who assigned his contract to his newly formed company although at the time of the assignment the contractor’s individual contractor’s license had not yet been reissued to the incorporated company.
The Manela Case
On January 4, 2015, John Stone doing business as Stone Construction Company entered into a home remodeling contract with Yosef and Nomi Manela. At the time, Stone had held a contractor’s license since 1982.
On February 11, 2015, after work on the project had begun, Stone formed JDSS Construction Company, Inc., and filed a fictitious business name using the same name Stone Construction Company. Stone applied to the Contractors State License Board to have his contractor’s license issued from himself personally to his new corporation. On March 15, 2015, while waiting for the CSLB to reissue his contractor’s license, Stone entered into an assignment agreement between himself and his new company assigning the Manela construction contract. The assignment agreement was signed by Stone in his personal capacity and as President of JDSS Construction. The assignment agreement was not signed by the Manelas.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
NYC Rail Tunnel Cost Jumps and Construction Start Pushed Back
October 10, 2022 —
Elise Young - BloombergThe cost of the New York City-area Gateway rail tunnel project climbed to $16.1 billion and the expected start of construction was pushed to 2024, its overseer said Wednesday. The plan is to seek more federal aid to cover the rising cost.
The new estimate, with finance charges, was 14% higher than last year’s projection to build a passenger rail tunnel between New York and New Jersey, and rehabilitate Amtrak and New Jersey Transit’s only existing link. The start of major construction, once proposed for mid-2023, now is expected in mid-2024, according to a statement from the Gateway Development Commission.
The tunnel is anticipated to be in service by 2035.
Half the cost was expected to be covered by the federal government, and the rest by New York and New Jersey, with contributions from Amtrak and the Port Authority of New York and New Jersey. The commission now will seek additional US funding under the 2021 Infrastructure Investment and Jobs Act. It expects a full funding grant agreement in early 2024, with construction starting later that year.
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Elise Young, Bloomberg
Los Angeles Construction Sites May Be on Fault Lines
December 30, 2013 —
CDJ STAFFCalifornia law prohibits building near or on top of earthquake fault lines, but Los Angeles County building officials may have used outdated information that misreported the location of certain faults. The Los Angeles Times reports that after their earlier articles on fault lines, the officials have started using newer maps.
According to the older maps, an apartment building under construction on Brockton Avenue in Los Angeles is 1.9 miles away from the Santa Monica fault. But a more recent map, created by the state in 2010, shows that the fault line could potentially be right under the building site.
The builders of another apartment building potentially located on the Santa Monica fault said that the city did not ask for a fault investigation. The Los Angeles Department of Building and Safety said that there was no official zone designation for the Santa Monica fault, and so did not require seismic studies.
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New York Appellate Court Expands Policyholders’ Ability to Plead and Seek Consequential Damages
February 27, 2019 —
Michael S. Levine & Joshua S. Paster - Hunton Andrews KurthIn a huge win for policyholders, a New York appellate court, in D.K. Property, Inc. v National Union Fire Insurance Company of Pittsburgh, Pa., held that an insured need not provide a detailed factual description or explanation for why consequential damages are recoverable at the pleading stage. Rather, an insured’s complaint must only (i) specify the types of consequential damages claimed; and (ii) allege that those damages reasonably were contemplated by the parties prior to contracting.
Here, D.K. Property’s building was damaged as a result of construction on an adjoining building, and it timely filed a claim with National Union under a policy that covers “direct physical loss or damage to” the building. National Union neither paid the claim nor disclaimed coverage. Instead, according to D.K. Property, National Union made unreasonable and increasingly burdensome information demands over a three-year period, which it alleges was a “tactic” to make pursuing the claim so expensive that D.K. Property would abandon the claim. As a result of the delay, D.K. Property alleges the structural damage to its building has worsened.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Joshua S. Paster, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Paster may be contacted at jpaster@HuntonAK.com
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Not So Universal Design Fails (guest post)
April 28, 2016 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday we have a guest post from Carla Williams, who works in customer service for the
Williams Brothers Corporation of America. Carla humorously brings light to a serious problem– the intent behind ADA and Universal Design is very often not met with poorly-thought out applications in the real world. Enjoy, and feel free to leave a comment for Carla below.
Universal design is the idea that architecture should be inherently accessible to everyone. The growing number of architects adopting universal design is great news for people with accessibility needs. Instead of having separate entrances and walkways to make a building accessible, universal design allows people of all abilities to move together.
Unfortunately, many buildings are stuck back in 1990 right after the Americans with Disabilities Act was made law. These buildings may be technically “accessible,” but they aren’t spaces people with accessibility needs can maneuver very easily. Until all building designers come to understand and implement the beauty and functionality of universal design, the world is left with less than ideal accessibility. “Less than ideal” is a bit of an understatement. Many times full-on “accessibility fails” take place.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com