Insurer's Motion for Summary Judgment to Dispose of Hail Damage Claim Fails
November 25, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer's motion for summary judgment seeking to dismiss the insured's complaint requesting coverage for hail damage and a claim for bad faith. Rodriquez v. State Farm Lloyds, 2024 U.S. Dist. LEXIS 160007 (W.D. Tex. Sept. 5, 2024).
Mr. Rodriquez sought coverage under his homeowners policy after a hail and wind storm damaged his roof. After inspection, State Farm agreed that some minimal loss caused by hail was covered, but determined that the covered loss was less than the amount of the deductible. State Farm further determined that any hail damage to the roof was excluded by an endorsement, Exclusion of Cosmetic Loss to Metal Roof Coverings Caused by Hail. State Farm also determined that some damage was caused by previous faulty workmanship or wear and tear, both of which were excluded from coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Construction Professionals Could Face More Liability Exposure Following California Appellate Ruling
December 17, 2024 —
Jamison Rayfield & Brian Slome - Lewis BrisboisSan Diego/San Francisco, Calif. - The California Court of Appeal
recently reversed a summary judgment ruling in favor of a geotechnical engineering firm that had conducted a brief inspection of a residential construction project's footing trench for $360. The case arose when homeowner Cheryl Lynch experienced significant property damage after her home's foundation failed and the structure began subsiding into a slope. Lynch sued Peter & Associates for professional negligence and nuisance, despite having no direct contractual relationship with the firm, which had been hired by her contractor to perform the geotechnical inspection.
The court distinguished this case from Bily v. Arthur Young & Co. (1992) 3 Cal.4th 370, which had limited auditors' professional duty to third parties, noting that Bily dealt with purely economic damages, whereas Lynch involved physical property damage, making Bily's policy concerns about unlimited liability inapplicable. The court emphasized that construction professional negligence cases, particularly those involving residential property damage, warrant a different analysis than cases involving economic loss.
Reprinted courtesy of
Jamison Rayfield, Lewis Brisbois and
Brian Slome, Lewis Brisbois
Mr. Rayfield may be contacted at Jamison.Rayfield@lewisbrisbois.com
Mr. Slome may be contacted at Brian.Slome@lewisbrisbois.com
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Traub Lieberman Attorneys Lisa M. Rolle and Justyn Verzillo Win Motion for Summary Judgment
December 23, 2024 —
Lisa M. Rolle & Justyn Verzillo - Traub LiebermanIn this subrogation action brought in the Supreme Court of the State of New York, Dutchess County, Traub Lieberman attorneys Lisa M. Rolle and Justyn Verzillo successfully obtained dismissal of a third-party complaint against their client, a fire-system protection company. In the underlying case, a fire sprinkler system within a commercial building leaked water into multiple tenant spaces, causing damage. The tenants’ insurers alleged that they each paid several hundred thousand dollars to cover their insureds’ claims. The insurers then filed complaints against the company which originally installed the sprinkler (the “Installer”), asserting that the company breached its duty of care. The Installer commenced a third-party action against the property owner and two fire-system protection companies—including Traub Lieberman’s client—who had separately conducted annual inspections of the sprinkler system over the years. The property owner and the two fire-system protection companies each asserted cross-claims against each other.
Reprinted courtesy of
Lisa M. Rolle, Traub Lieberman and
Justyn Verzillo, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Verzillo may be contacted at jverzillo@tlsslaw.com
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Wildfire Threats Make Utilities Uninsurable in US West
August 12, 2024 —
Mark Chediak - BloombergTrinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat.
Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers.
The utility’s exposure comes as wildfires are already flaring up across the US West in what could be a dangerous and prolonged fire season.
“If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million.
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Mark Chediak, Bloomberg
Supreme Court Opens Door for Challenges to Older Federal Regulations
August 05, 2024 —
Jane C. Luxton - Lewis BrisboisWashington, D.C. (July 1, 2024) – On July 1, 2024, the U.S. Supreme Court issued another end-of-term major decision limiting the scope of federal agency actions in Corner Post, Inc. v. Board of Governors of the Federal Reserve System. Adding to the tectonic shift in the regulatory landscape created by the Court’s June 27 and 28 rulings constraining the role of administrative law judges and overturning longstanding “Chevron deference” by courts to federal agency expertise, the decision in Corner Post establishes a newly expanded time frame for affected entities to challenge final agency action. Instead of confirming that final agency action is subject to a default six-year statute of limitations, the Court held that under the Administrative Procedure Act (APA), the time limit for appeal begins to run when a plaintiff is injured by the agency's action, not when the action becomes final. This decision has important implications for businesses and others affected by federal regulations.
The case arose when Corner Post, a truck stop and convenience store in North Dakota that opened in 2018, challenged a 2011 Federal Reserve Board regulation (Regulation II) that set maximum interchange fees for debit card transactions. Corner Post filed suit in 2021, arguing that Regulation II allowed higher fees than permitted by statute. The lower courts dismissed the suit as time-barred under 28 U.S.C. § 2401(a), which effectively requires APA claims to be filed "within six years after the right of action first accrues."
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Jane C. Luxton, Lewis BrisboisMs. Luxton may be contacted at
Jane.Luxton@lewisbrisbois.com
Higgins, Hopkins, McLain & Roswell, LLC Announces Leadership Changes and New Vision for Growth
January 21, 2025 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCHiggins, Hopkins, McLain & Roswell, LLC (“HHMR”) is excited to announce several significant developments as the firm transitions into an exciting new chapter of growth and innovation. Sheri Roswell, one of the firm’s founding members, is stepping out of ownership to serve as “Of Counsel,” continuing her vital work with clients and strengthening relationships that have been the cornerstone of HHMR’s success. Her tireless contributions since the firm’s inception have helped establish HHMR as a leader in Colorado’s construction law landscape.
“Sheri has been a pillar of HHMR since day one. Her commitment to our clients and her unwavering dedication to the firm’s success have left an indelible mark. We are excited for her to continue contributing her expertise and leadership in this new capacity,” said David McLain at the firm’s recent holiday celebration.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Suffolk Construction Drywall Suits Involve Claim for $3 Million in Court Costs
November 11, 2024 —
Richard Korman - Engineering News-RecordSuffolk Construction lost a breach-of-contract contract lawsuit in July with a former drywall subcontractor's surety—but the contractor's payout may dramatically increase if the presiding U.S. district court judge in Miami allows the surety to collect $3 million more in requested attorneys' fees and trial costs.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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How U.S. Design and Architecture Firms Can Profit from the Chinese Market and Avoid Pitfalls
December 23, 20
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