Federal Magistrate Judge Recommends Rescission of Policies
February 12, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of Union Mut. Fire Ins. Co. v. 142 Driggs LLC, 2023 U.S. Dist. LEXIS 220393, Magistrate Judge Lois Bloom of the United States District Court for the Eastern District of New York recommended granting the insurer's default judgment and holding that of three policies issued to 142 Driggs LLC ("Driggs") be rescinded ab initio.
Driggs had represented on its insurance applications that it did not provide parking to anyone other than itself, tenants, and its guests at the subject insured premises. However, Union Mutual learned that Driggs had been renting out three garages to non-tenants. Second, Driggs represented that the mercantile square footage was around 1,000 square feet, when in actuality, it was larger than allowed under the policies.
Union Mutual provided underwriting guidelines in connection with its default motion, which state that "parking provided for anyone other than the insured, tenants and their guests," presents an "unacceptable risk." The guidelines also state that answering yes to any "preliminary application questions (which presumably included those regarding mercantile square footage and parking) is an "unacceptable risk." The court held that these guidelines supported a finding that Driggs made material misrepresentation and that Union Mutual relied on these misrepresentations in issuing the policies. The court, as such, recommended that the policies at issue be rescinded from inception.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Haight Celebrates 2024 New Partner Promotions!
January 22, 2024 —
Haight Brown & Bonesteel LLPHaight is celebrating new partner promotions in 2024. Congratulations to Gary LaHendro, Melvin Marcia and Philip McDermott!
Gary LaHendro became a member of the California State Bar in December 1993. He is a member of the Risk Management & Insurance Law Practice Group. He focuses his practice on insurance coverage and bad faith litigation. Gary’s clients include carriers within the United States and London Markets for whom he has provided coverage advice on various lines of coverage, including commercial general liability, excess, errors and omissions, auto, and representations and warranties. Gary also monitors the defense of insureds with respect to third-party lawsuits. In addition to coverage work, Gary has over 20 years of litigation experience as lead defense counsel on cases involving soil and groundwater contamination, professional liability, construction defect and personal injury cases. He is also a skilled appellate attorney and Certified Mediator.
Melvin Marcia became a member of the California State Bar on June 1, 2016. Melvin is a member of the firm’s Transportation Law, General Liability, Product Liability and Fire Litigation Practice Groups. His practice focuses on litigation of high value cases, ranging from catastrophic injury, wrongful death, premises liability, business disputes, product liability, uninsured/underinsured arbitrations and subrogation matters.
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Haight Brown & Bonesteel LLP
Meet the Forum's ADR Neutrals: LESLIE KING O'NEAL
January 29, 2024 —
Marissa L. Downs - The Dispute ResolverCompany: JAMS
Office Location: Orlando, FL
Email: lkoneal1117@gmail.com
Website: https://www.jamsadr.com/oneal/
Law School: University of Florida, J.D. (1977)
Types of ADR services offered: Mediation, arbitration, neutral evaluation
Geographic area served: Nationwide
Q: Describe the path you took to becoming an ADR neutral.
A: Florida was one of the first states to allow judges to send civil cases to mediation. When I was an advocate, nearly all my cases went to mediation at least once—sometimes more than once! I became a firm believer in the value of mediation and other ADR methods. I became a Florida certified circuit court mediator in 2021 and I joined JAMS in 2022, after retiring as in-house counsel with Brasfield & Gorrie, a large commercial general contractor. I am also an adjunct professor at Pepperdine Law School, teaching arbitration theory and practice in its master of dispute resolution and master of laws programs.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Perez Broke Records … But Should He Have Settled Earlier?
February 19, 2024 —
Sofya Uvaydov & John F. Watkins - Kahana FeldIn 2021, Mark Perez’ Labor Law 240(1) lawsuit made legal news by breaking the record of the highest appellate-sustained pain and suffering award in New York history. While that record was short-lived, it still maintains its place as New York’s highest-ever pain and suffering award for a brain injury. This January 17th, the Appellate Division, First Department revisited the litigation but, this time, in a dispute between Perez and his then-lawyer, Ben Morelli and the Morelli Law Firm. Mr. Perez claims breach of contract over a 10% additional contingency fee charge related to the Perez v. Live Nation appeal and breach of fiduciary duty by his counsel in failing to convey settlement offers during the lifetime of the case. The Morelli firm counters, among other things, that the prior settlement offers – a $30 million offer during the 2019 trial and intermediate sums during the appellate stage – were still lower than the ultimate $55 million settlement. No harm, Mr. Morelli argues, and thus no foul in failing to convey the offers.
But is that so? Did Mark Perez ultimately receive more money in his $55 million settlement than from the $30 million settlement offer mid-trial? Despite the glaring $25 million difference, the surprising calculations show that Perez would have been financially better off taking the $30 million mid-trial settlement.
Reprinted courtesy of
Sofya Uvaydov, Kahana Feld and
John F. Watkins, Kahana Feld
Ms. Uvaydov may be contacted at suvaydov@kahanafeld.com
Mr. Watkins may be contacted at jwatkins@kahanafeld.com
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Sarah P. Long Expands Insurance Coverage Team at Payne & Fears
March 19, 2024 —
Payne & Fears LLPSarah P. Long has joined Payne & Fears LLP as a Partner in the firm’s Insurance Coverage and Litigation Group. Sarah has represented clients in all aspects of insurance coverage and litigation and also focus on construction defect claims and litigation.
Before joining Payne & Fears, Sarah was a partner at Koeller, Nebeker, Carlson, Haluck, LLP, where she represented many of the nation’s builders in construction defect actions and bad faith insurance coverage disputes for 17 years.
Known for her dependability, efficiency, and creative problem-solving, Sarah always strives to secure the best results for her clients in the most efficient manner.
“We are excited to welcome Sarah to P&F as we continue to expand and add depth to our Insurance Litigation Group. I have known Sarah in a professional and personal capacity for more than 16 years. She is well respected by clients and peers in the legal profession. She is a bright, efficient, and innovative attorney and a wonderful person,” said Sarah Odia, the group’s co-chair.
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Payne & Fears LLP
The National Labor Relations Board Joint Employer Standard is Vacated by the Eastern District of Texas
April 22, 2024 —
Andrew G. Vicknair - The Dispute ResolverMany employment laws use the concept of joint employer to make more than one business entity responsible for complying with employment law obligations towards employees who to varying degrees work for, or under the direction of entities who are not technically the employees primary employer. Nowhere is that issue more prevalent than in contractor subcontractor relationships. Over the years the National Labor Relations Board (NLRB) has developed various tests for determining joint employer status. Unless a business entity is an employer of individuals, the NLRB has no jurisdiction over a dispute between the workers and a business entity for whom they work.
It is important for contractors to understand the importance of being an employer and the obligations that flow from such status. Likewise, it is also important to understand when a contractor may be classified as a “joint employer” over certain individuals. Depending on the specific laws involved, such a finding of joint-employer status can happen under the “joint employer doctrine” which often exists in subcontractor and temporary employment arrangements. The “joint-employer doctrine” may render a contractor responsible for another company’s employment liabilities.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
A Termination for Convenience Is Not a Termination for Default
April 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesA termination for convenience is NOT a termination for default. They are NOT the same. They should NOT be treated as the same. I am a huge proponent of termination for convenience provisions because sometimes a party needs to be able to exercise a termination for convenience, but the termination is not one that rises to a basis for default. However, exercising a termination for convenience does not mean you get to go back in time and convert the termination for convenience into a termination for default. It does not work like that. Nor should it.
An opinion out of the Civilian Board of Contract Appeals – Williams Building Company, Inc. v. Department of State, CBCA 7147, 2024 WL 1099788 (CBCA 2024 – demonstrates a fundamental distinction between a termination for convenience and a termination for default, i.e., that you don’t get to conjure up defaults when you exercise a termination for convenience:
Because a termination for convenience essentially turns a fixed-price construction contract into a cost-reimbursement contract, allowing the contractor to recover its incurred performance costs, the resolution of this appeal will involve identifying the total costs that [Contractor] incurred in performing this contract before [Government] terminated it for convenience. Since [Government] terminated the contract for convenience rather than for default, it no longer matters whether, in the past,[Contractor] acted intentionally in overstating the amount of its incurred costs or committed a contract breach. Ultimately, as permitted in response to a termination for convenience, [Contractor] will recover those allowable costs that [Contractor]establishes it incurred in performing the contract.
Williams Building Company, supra.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Jersey Shore Town Trying Not to Lose the Man vs. Nature Fight on its Eroded Beaches
February 26, 2024 —
Associated Press - BloombergNORTH WILDWOOD, N.J. (AP) — A New Jersey shore town locked in a legal battle with the state over tens of millions of dollars it has spent trying -- mostly in vain -- to hold back the ocean now is more vulnerable than ever.
A recent winter storm destroyed part of the sand dunes in North Wildwood, leaving tiny piles about the size of a child’s sand castle to protect a popular resort town with $2.5 billion worth of private property, and at least that much in government buildings and infrastructure.
New Jersey has
fined the town $12 million for unauthorized beach repairs that it says could worsen erosion, while
the city is suing to recoup the $30 million it has spent trucking sand to the site for over a decade.
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Bloomberg