The Hunton Policyholder’s Guide to Artificial Intelligence: SEC’s Recent AI-Washing Claims Present D&O Risks, Potential Coverage Challenges
July 08, 2024 —
Geoffrey B. Fehling, Michael S. Levine & Alex D. Pappas - Hunton Insurance Recovery BlogWe have previewed in prior posts the ways artificial intelligence is rapidly changing the way business operate, including the many ways AI has influenced the insurance market, creating both opportunities and risks for policyholders. We later highlighted, based on a recent securities lawsuit, how corporate management may be at risk for the alleged use or misuse of AI and how companies should evaluate their directors and officers (D&O) and management liability policies to ensure that they are prepared to respond to and mitigate AI-driven risks, including claims alleging that a company or its officers and directors made misrepresentations about AI.
That potential risk now has regulatory teeth, as the US Securities and Exchange Commission recently charged the founder of an AI hiring startup with fraud based on claims about using AI to help clients find diverse and underrepresented candidates to fulfill diversity, equity, and inclusion hiring goals.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and
Alex D. Pappas, Hunton Andrews Kurth
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Pappas may be contacted at apappas@HuntonAK.com
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Connecticut Reverses Course for Construction Managers on School Projects
August 05, 2024 —
Anand Gupta - Construction Law Zone BlogOn June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively.
Reprinted courtesy of
Anand Gupta, Robinson+Cole
Mr. Gupta may be contacted at agupta@rc.com
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Contractor Definition Central to Coverage Dispute
July 22, 2024 —
Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & BermanHow do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy.
Factual Background
In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision.
Reprinted courtesy of
Stacy R. Goldscher, Wood Smith Henning & Berman and
Tracy M. Lewis, Wood Smith Henning & Berman
Ms. Goldscher may be contacted at sgoldscher@wshblaw.com
Ms. Lewis may be contacted at tlewis@wshblaw.com
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Traub Lieberman Attorneys Recognized in the 2025 Edition of The Best Lawyers in America®
September 09, 2024 —
Traub LiebermanTraub Lieberman is pleased to announce that five Partners have been selected by their peers for inclusion in the 2025 edition of The Best Lawyers in America®. In addition, seven attorneys have been included in the 2025 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Hawthorne, NY; Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices.
2025 Best Lawyers®
Hawthorne, NY
- Lisa L. Shrewsberry – Commercial Litigation
Chicago, IL
- Brian C. Bassett – Insurance Law
Palm Beach Gardens, FL
- Rina Clemens – Personal Injury Litigation – Defendants, Product Liability Litigation – Defendants
St. Petersburg, FL
- Lauren S. Curtis – Insurance Law
- Scot E. Samis – Appellate Practice
Read the full story...Reprinted courtesy of
Traub Lieberman
What You Need to Know to Protect the Project Against Defect Claims
October 28, 2024 —
Scott L. Baker - Los Angeles Litigation BlogIf a property owner claims there is a construction defect, that not only brings the project’s integrity into question but also your business’s reputation. So, how can you take steps to prevent these claims from causing such damage?
Here are three things to know before beginning a project to effectively protect it and
manage construction defect claims.
1. Documentation is key
California and Los Angeles County require certain permits and documents in order for a construction project to move forward. Los Angeles County
will also conduct plan checks to ensure everything is up to code. Detailed documentation will be important while making your plans.
However, keeping notes throughout every step of the project will also be essential. Documenting all aspects of the project helps you:
- Stay updated and aware of the project’s progress
- Proactively catch and handle issues that could result in disputes
- Create a record of evidence that can help manage defect claims
Read the full story...Reprinted courtesy of
Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Construction Litigation Roundup: “D’Oh!”
August 12, 2024 —
Daniel Lund III - LexologyThe U.S. DOL found itself on June 24 on the wrong end of a preliminary injunction concerning recent changes to the Davis-Bacon Act.
The lawsuit, initiated in Texas federal court by the Associated General Contractors of America and other concerned citizens, sought a preliminary injunction barring implementation and enforcement of “specified portions of § 5.2 and § 5.5(e) of the DOL’s ‘Updating the Davis-Bacon and Related Acts Regulations’” – the “Final Rule,” published August 23, 2023.
After determining the appropriateness of the “standing” of the plaintiffs based upon the plaintiffs being “adversely affected” by the Final Rule, the federal court preliminarily enjoined enforcement of the Final Rule. In noting its disagreement with the Final Rule, the court stated:
“… the Final Rule amends the DBA [the Davis-Bacon Act] by imposing a stealth selfimplementing DBA requirement in the contract by an operation-of-law provision that contradicts the express statutory language of the Act [the court bristling at the idea that contracts might exclude with impunity the otherwise mandated DBA clauses]. Further, the Final Rule amends the Act to extend the DBA to apply to workers who are not mechanics and laborers, and to extend the scope of the work covered by DBA to include work is not performed ‘directly on the site of the work.’
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Let’s Get Surety Podcast – #126 Building the Future: AI, Construction and Law
December 31, 2024 —
Denis Serkin - Peckar & Abramson, P.C.Denis Serkin, partner in P&A’s New York and New Jersey offices, joins the latest episode of the NASBP podcast “
Let’s Get Surety” to delve into the transformative impact of AI on the construction industry and construction law.
In this insightful discussion, Denis explores how AI tools are already enhancing design and supply chains and shares his vision for AI’s eventual integration across every facet of the industry.
Read the full story...Reprinted courtesy of
Denis Serkin, Peckar & Abramson, P.C.Mr. Serkin may be contacted at
dserkin@pecklaw.com
Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak
September 09, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024).
Carbon monoxide leaked in a building addition to a middle school, prompting 23 lawsuits to be filed against the insured, Allied Design Consultants, Inc. Allied was retained to perform certain architectural services to the building addition. Pekin Insurance Company had issued a business owners liability policy and a commercial umbrella liability policy to Allied. Pekin denied a defense to Allied based upon the policies' professional services exclusions.
Allied filed suit for declaratory relief against Pekin. Pekin filed a counterclaim, seeking a declaratory judgment that it had no duty to defend. The parties filed cross-motions for summary judgment. The parties agreed the allegations in the personal injury complaint filed by Ferguson were typical and representative of the allegations in the other 22 underlying lawsuits.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com