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Insurer Waives Objection to Appraiser's Partiality by Waiting Until Appraisal Issued

October 21, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit affirmed the district court's denial of the insurer's objections on partiality grounds to the insured's appraiser. Biscayne Beach Club Condominium Association, Inc. v. Westchester Surpus Lines Ins. Co., 2024 U.S. App. LEXIS 19663 (11th Cir. Aug. 6. 2024). Storms damaged buildings at Biscayne Beach Club Condominium. Biscayne Beach filed claims with its insurer, Westchester. Unsatisfied with Westchester's payments, Biscayne Beach sued. Westchester then invoked the appraisal provision in the policy. The district court abated the action so the parties could pursue appraisal. Biscayne Beach appointed Lester Martin, its public adjuster, as its appraiser on a 10 percent contingency fee. Westchester objected because Martinez's retainer created a conflict of interest that would hinder his impartiality. Biscayne Beach then retained Blake Pyka as its appraiser. Westchester appointed its appraiser and and umpire was selected by the parties' two appraisers. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

GRSM Multi-Office Team Secures Dismissal of Claims for Global Paint and Coatings Manufacturer Under the Federal Hazardous Substances Act

February 03, 2025 — Gordon Rees Scully Mansukhani, LLP
Philadelphia Partners Ty Havey and Cathy Slavin, Sacramento Senior Counsel Jennifer Paez, and Associate Erica Briggs successfully defended a leading global manufacturer of premium paint and coating products in a high-stakes case brought under the Federal Hazardous Substances Act (FHSA), 15 U.S.C. § 1261 et seq. On November 4, 2024, the United States District Court for the Northern District of California granted summary judgment and dismissed all claims against the firm’s client. The case, brought by a subrogating insurance carrier and its policyholders—a vineyard and winery—arose from a total loss structure fire in Sonoma County. The plaintiffs alleged that discarded rags soaked with the client’s wood stain product spontaneously combusted due to inadequate labeling. The GRSM team denied the spontaneous combustion claim and argued that the FHSA, which governs product labeling for hazardous substances, preempted plaintiffs’ claims for additional warnings about spontaneous combustion. Read the full story...
Reprinted courtesy of Gordon Rees Scully Mansukhani, LLP

Real Estate & Construction News Roundup (10/1/24) – Hybrid Work Technologies, AI in Construction and the Market for Office Buildings

November 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, commercial mortgage bond market in trouble, commercial real estate investments, pressure on mortgage REITs, and more!

Short-term issues facing U.S. commercial real estate have made it an investment opportunity and values have bottomed out. (CNBC)
As organizations report plans to shake up their real estate portfolios, the flight to quality spurs interest in space planning, amenities and hybrid work technologies. (Joe Burns, Facilities Dive)
The conversation about AI’s potential benefits and risks has been a common refrain in construction recently. (Matthew Thibault, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Deterioration of Bridge Infrastructure Is Increasing Insurance Needs

December 03, 2024 — Grace Calengor - Construction Executive
As the world is taken by storm—literally, with increasing hurricanes, tornadoes, wildfires and more—insuring construction projects and infrastructure is becoming more complicated yet more necessary. Sean Pender, senior vice president of construction and development at CAC Specialty, is a leading specialty insurance broker and advisor. As major-storm season for the Northern hemisphere rounds out, he speaks with Construction Executive about the potential risk and insurance implications to the process of ensuring proper repairs, replacements and other forms of maintenance to one of the country’s most pivotal pieces of infrastructure: bridges. What does insurance coverage look like for building bridges in various environments throughout the country? Insurance is essential to protect the entity that owns the bridge during construction. Bridges under construction are at the highest risk of collapse because they are not yet fully stabilized and are exposed to severe weather and natural disasters, which could cause significant damage to the structure or injury to workers and civilians. Therefore, comprehensive liability insurance programs—typically with coverage limits of $50 to $100 million or higher—are crucial, especially with activities on or over waterways. Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

Significant Increase in Colorado Tort Damages Caps Now in Effect Under Recent Legislation

January 28, 2025 — Gordon Rees Scully Mansukhani, LLP
Colorado’s recently enacted legislation (HB 24-1472), which significantly increases damages caps for tort actions, is now in effect. Given the legislation’s January 1, 2025, effective date, an early-2025 increase in new filings is anticipated for cases that otherwise could have been filed in 2024. The increases include:

For noneconomic damages in tort actions (other than against medical professionals), more than double the previous cap to $1.5 million (with future inflation adjustment).[1]
In wrongful death actions (other than against medical professionals), a greater than threefold increase from the previous limit to $2.125 million (with future inflation adjustment).[2]
In medical professional actions for wrongful death, a 50% increase from the previous overall cap to $1.575 million in 2029 (with future inflation adjustment). For injury claims, more than double the previous cap for noneconomic damages to $875,000 in 2029 (with future inflation adjustment).[3]

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Reprinted courtesy of Gordon Rees Scully Mansukhani, LLP

America’s Bridges and the Need for Bridge Infrastructure Investment

January 07, 2025 — Lisa D. Love - The Dispute Resolver
During the October 2024 meeting of the American Bar Association’s Forum on Construction held in Pittsburgh, a city of many bridges, the importance of bridges to our nation’s transportation infrastructure was apparent. Just two years ago, the Forbes Avenue bridge in Pittsburgh collapsed—resulting in several vehicles and a bus falling into a ravine. Ten people were injured in the event. It was later reported that the bridge had received a “poor” rating but was still permitted to remain open to traffic. The event resulted in several lawsuits which, just this past September, the City of Pittsburgh requested $500,000 from the city council to settle. The Forbes Avenue bridge is hardly a unique case and is just one example of the litigation that can ensue if we fail to maintain our aging infrastructure. The State of Our Nation’s Bridges As of June 2024, the United States has more than 616,000 bridges located on public roads, including interstate highways, U.S. highways, state and county roads, as well as publicly accessible bridges on federal and tribal lands. Read the full story...
Reprinted courtesy of Lisa D. Love, JAMS

New Jersey Law Firm Announces $4 Million Settlement from Construction Site Accident

November 11, 2024 — Greenberg Minasian, LLC
WEST ORANGE, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Greenberg Minasian, LLC, a personal injury law firm located in Essex County, New Jersey, has announced a $4 million settlement stemming from a roofer who suffered serious injuries after a construction site fall. Veteran trial attorney Mitchell Goldstein represented the injured client, who suffered multiple fractures and injuries, permanently affecting his ability to work. In 2018, Robert Smith, who was 61 at the time, fell backward through or over a temporary guard rail at the American Dream Mall in East Rutherford, NJ. The 30-foot fall caused him to suffer serious injuries to his pubis, sacrum, clavicle, and humerus, leading to multiple surgeries and a hip replacement. On behalf of his client, Mr. Goldstein brought suit against the mall developer and construction company, successfully arguing that the temporary guardrails were improperly constructed and insufficiently elevated according to Occupational Safety and Health Administration (OSHA) guidelines. The case was settled just two days before trial, marking a significant victory for the plaintiff and his family. Despite the defense's attempt to argue that Mr. Smith was responsible for his fall, Goldstein was able to refute their claims, asserting that the temporary guardrail's improper construction directly led to the accident. About Greenberg Minasian LLC Based in West Orange, Greenberg Minasian represents clients who have been seriously injured as the result of negligence by others. The firm handles cases anywhere in New Jersey including West Orange, Jersey City, Newark, Essex County and all surrounding areas. The firm continues to achieve the highest awards for its clients and families.

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