Seattle Washington Building Consultant Directory

Insurer's Bad Faith is Actionable Tort for Purposes of Choice of Law Analysis

January 08, 2024 — Janeen M. Thomas - Saxe Doernberger & Vita, P.C.
When an insurer handles a claim in violation of its duty to act in good faith, policyholders are often eager to sue the insurer for bad faith, seeking extra contractual damages. Before filing suit, however, it is critical that policyholders consider what state’s law applies to the bad faith claim. In the recent case of Scott Fetzer Co. v. Am. Home Assurance Co., Inc.1, the Ohio Supreme Court held that Restatement (Second), Conflict of Laws, § 145 (“Section 145"), governed the choice of law dispute, which meant that the insured would be able to obtain discovery of Travelers’ claims-handling procedures, guidelines, internal documents, and communications relating to the claim.2 The insured, Scott Fetzer, argued that the materials were discoverable because documents evidencing an insurer’s bad faith are not protected by attorney-client privilege in Ohio. In response, Travelers argued that the laws of either Indiana (the place where the parties entered into the insurance contract), or Michigan (the location of the insured risk) governed the discovery dispute because Restatement (Second) § 193 (“Section 193”) governs the choice of law analysis for claims that “arise out of insurance contracts.”3 The laws of either Indiana or Michigan were more favorable for Travelers because Indiana does not allow discovery of materials covered by attorney-client privilege, and Michigan does not even recognize a cause of action for bad faith. Read the full story...
Reprinted courtesy of Janeen M. Thomas, Saxe Doernberger & Vita, P.C.
Mr. Thomas may be contacted at JThomas@sdvlaw.com

Governmental Action Exclusion Bars Claim for Damage to Insured's Building

November 27, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The lower court's decision finding no coverage based upon the governmental action exclusion was affirmed by the Appellate Court of Illinois. McCann Plumbing, Heating & Cooling v. Pekin Ins. Co., 2023 Ill.App. LEXIS 300 (Ill. App. Ct. Aug. 23, 2023). McCann purchased a building to use for its heating, ventilation, and air conditioning business. The building was surrounded by two unihhabited properties which often flooded. The city determined that a building on the adjacent property had to be demolished. In the course of destruction, the McCann's building was damaged, leaving a portion of their building open to the elements. McCann sought coverage from Pekin for damage incurred in the demolition. The policy provided coverage for "direct physical loss of or damage to" the covered property. Pekin denied coverage under the policy's governmental action exclusion, which provided,

We will not pay for loss or damage caused directly or indirectly by any of the following: . . . c. Governmental Action Seizure or destruction of property by order of governmental authority . . .

Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Toronto Skyscraper With $1.2 Billion of Debt Has Been Put in Receivership

November 16, 2023 — Ari Altstedter - Bloomberg
A landmark condominium project in one of Toronto’s ritziest neighborhoods has been put into receivership after construction delays and cost overruns. Construction of the 85-story tower will be taken over by a court-appointed receiver after its owners, developer Sam Mizrahi and investor Jenny Coco, defaulted on part of the project’s nearly C$1.7 billion in debt ($1.2 billion), according to a Wednesday order from the Ontario Superior Court of Justice. Two funds run by South Korea-based IGIS Asset Management Co. applied for the receivership. Another IGIS fund will extend at least another C$315 million to continue work on the project, court documents said. Read the full story...
Reprinted courtesy of Ari Altstedter, Bloomberg

Traub Lieberman Partner Michael K. Kiernan and Associate Brandon Christian Obtain Dismissal with Prejudice in Favor of Defendant

November 27, 2023 — Michael K. Kiernan & Brandon Christian - Traub Lieberman
In a 14-count breach of contract action brought in the Fifteenth Judicial Circuit in Palm Beach County, Florida, Partner Michael K. Kiernan and Associate Brandon Christian obtained dismissal with prejudice in favor of Defendant St. Joseph’s Episcopal Church of Boynton Beach, Florida (“Church”). Plaintiffs, St. Joseph’s Episcopal School (“School”) and its benefactor, William Swaney, filed suit to enforce an alleged 99-year oral lease agreement which Swaney asserted had been made to him by a prior rector of the Church in exchange for his contributions to the School. Plaintiffs also sought emergency injunctive relief to allow the School to continue to operate on Church property. The Church maintained in part that the only lease in effect was a written lease, approved by the Church Vestry and the Diocese of Southeast Florida, and which the Church Vestry unanimously voted not to renew in 2022. Reprinted courtesy of Michael K. Kiernan, Traub Lieberman and Brandon Christian, Traub Lieberman Mr. Kiernan may be contacted at mkiernan@tlsslaw.com Mr. Christian may be contacted at bchristian@tlsslaw.com Read the full story...

Partner John Toohey and Senior Associate Sammy Daboussi Obtain a Complete Defense Verdict for Their Contractor Client!

December 11, 2023 — Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is excited to share that Newport Beach attorneys John Toohey and Sammy Daboussi obtained a complete defense verdict after years-long litigation in favor of their concrete contractor client. This lawsuit arises from a claim made by Plaintiff for construction defects in a high-end single-family home. Our client was hired to perform concrete work on the foundations of the home. It was alleged that the home’s foundation was incorrectly built. It was further alleged that the construction defects/errors led to delays and substantial expenses. We argued that our client relied on the certifications provided to them by design professionals and the City. We further argued that our client, like any reasonable concrete/foundation subcontractor, has no responsibility or obligation, contractual or otherwise, to review and recheck the work completed by a licensed professional. Read the full story...
Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Breach of Contract Exclusion Bars Coverage for Construction Defect Claim

March 19, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court determined the policy's breach of contract exclusion precluded coverage for a claim against the general contractor insured for construction defects. Mt. Hawley Ins. Co. v. McAtamncy, 2024 U.S. Dist. LEXIS 497 (N. D. Cal. Jan. 2, 2024). McAtamney, a general contractor dong business as Kilrea Construction, was hired by Jeffrey Horowitz for a home-renovation project. After completion of the project, Horowitz discovered defects in the work. He filed a complaint alleging that Kilrea breached obligations to construct and complete the work in an expeditious and workmanlike manner, free from any faults and defects. He brought claims for breach of contract, breach of implied warranty, negligence, neglignet supervision, and declaratory relief. Kilrea's insurer, Mt. Hawley, agreed to defend, but reserved the right to later deny coverage for any uncovered claims. The breach of contract exclusion provided there was no duty to defend a claim for property damage arising from breach of an express or implied contract or warranty. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

NYC Hires Engineer LERA for Parking Garage Collapse Probe

January 29, 2024 — James Leggate - Engineering News-Record
The investigation into the collapse of a Lower Manhattan parking garage last April is still underway. A Jan. 2 notice published in The City Record identified LERA Consulting Structural Engineers RLLP as the engineering firm assisting with the probe. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story...

Meet the Forum's ADR Neutrals: LISA D. LOVE

March 19, 2024 — Marissa L. Downs - The Dispute Resolver
Company: JAMS Office Location: New York, NY Email: llove@jamsadr.com Website: https://www.jamsadr.com/love/ Law School: Georgetown University Law Center (J.D. 1984) Types of ADR services offered: Arbitration, mediation, neutral evaluation and special master services Affiliated ADR organizations: JAMS, Chartered Institute of Arbitrators, and CPR Geographic area served: Domestic and International Q: Describe the path you took to becoming an ADR neutral. A: I started my legal career practicing law as a complex commercial transactions attorney in the corporate department of a major New York law firm for eleven years. After leaving the firm, I served as chief legal counsel to several municipalities and as co-founding partner of a boutique finance, infrastructure and real estate law firm. Read the full story...
Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

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