The Great Escape: Non-Invalidation Clauses and Property Damage Claims
October 20, 2026 —
Abigail Smith & Kaarthiga Manimaran - SDV FenchurchAt their core, non-invalidation clauses (“NICs”) recognise an important commercial reality: an insured cannot control everything that happens at its premises.
In the event that an insured finds itself in breach of a condition or warranty owing to events that have increased the risk of damage to its property, but which were outside its authority, knowledge or beyond its control, a NIC may prevent the insurer from avoiding the claim. For that reason, they’re an important tool in an insured’s coverage arsenal.
Although there is relatively little caselaw on NICs, their purpose was recognised in The Seashell of Lisson Grove Ltd v Aviva Insurance Ltd [2011] EWHC 1761 (Comm) (on which we wrote a previous article –
The Good, the Bad & the Ugly: #26 The Good: The Seashell of Lisson Grove Ltd v Aviva)
Reprinted courtesy of
Abigail Smith, SDV Fenchurch and
Kaarthiga Manimaran, SDV Fenchurch
Ms. Smith may be contacted at abigail.smith@sdvfenchurch.uk
Ms. Manimaran may be contacted at kaarthiga.manimaran@sdvfenchurch.uk
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U.S. Supreme Court Decision Alters Course of $745M Louisiana Coastal Damage Judgment
June 15, 2026 —
Jennifer Kretschmann & Jennifer E. Michel - Lewis BrisboisThe U.S. Supreme Court has issued a unanimous decision allowing oil and gas companies to move Louisiana coastal erosion lawsuits from state court to federal court under the federal officer removal statute. While the ruling is procedural, it carries significant implications for environmental- and energy-related risks. The case,
Chevron U.S.A. Inc. v. Plaquemines Parish, Louisiana, Slip Op. 24-813 (April 17, 2026), addressed a threshold jurisdictional question but has broader significance for environmental and climate related litigation. State courts are often viewed as more favorable forums for plaintiffs asserting environmental damage claims, particularly those brought by governmental entities.
The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago. Starting in 2013, Louisiana parishes filed 42 lawsuits against oil and gas companies alleging environmental damage related to historic oil field operations. The parishes alleged that oil and gas companies violated state coastal management laws by failing to properly restore impacted areas. Chevron sought to remove the cases from state court under 28 U.S.C. § 1442(a)(1), known as federal officer removal, which provides federal jurisdiction over “any person acting under [an] officer” of the United States "for or relating to any act under color of such office." The Fifth Circuit rejected the argument and remanded the case, and others like it, to state court. Trial began in March 2025 in Point à la Hache, Louisiana. On April 4, 2025, the jury awarded a total of $745 million to compensate for land loss, contamination and abandoned equipment. On June 16, 2025, the U.S. Supreme Court agreed to review the question of whether a federal contractor can remove to federal court when sued for oil-production activities undertaken to fulfill a federal oil-refinement contract.
Reprinted courtesy of
Jennifer Kretschmann, Lewis Brisbois and
Jennifer E. Michel, Lewis Brisbois
Ms. Kretschmann may be contacted at Jennifer.Kretschmann@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
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Federal Bid Protest Standard of Review and Disparate Treatment with Ratings
August 16, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent decision out of the Federal Claims Court explains the post-award bid protest standard of review.
In Massman Construction Co. v. U.S., 2026 WL 1971985 (Fed.Cl. 2026), a protestor brought a post-award bid protest after the Army Corps of Engineers awarded the contract to another contractor. The protestor argued that the Army Corps (government) acted irrational in its evaluation through disparate treatment. The Court of Federal Claims agreed and remanded for the Army Corps to “either justify this disparity or explain why [awardee’s] lower-priced, but technically inferior proposal provides the best value to the government.” Massman Construction, supra at *1.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Course of Construction Exclusions and the CGL Policy
July 20, 2026 —
Anna M. Perry, Rachel S. Kindseth & Nina Catanzaro - Saxe Doernberger & Vita, P.C.I. Course of Construction Exclusions
Course of Construction (“COC”) exclusions are found on General Liability and excess liability policies, typically a wrap-up or project specific policy, and generally exclude “all property damage occurring during the course of construction.” Insurers claim COC exclusions are not problematic because they are intended to prevent an overlap in coverage between the general liability policy and first-party property Builder’s Risk policy. However, because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors. Therefore, any exclusion on a wrap-up or project specific policy that limits coverage for property damage liability should be scrutinized, and amendments sought when warranted and commercially achievable, for owners, developers and contractors because General Liability policies do not cover the same risk as that of a Builder’s Risk policy.
General liability policies provide defense and indemnity to the insured(s) for claims made by a third-party against the insured. Broad COC exclusions serve to preclude coverage for all property damage, not just property damage to the insured project. This includes property damage to property other than the insured project, e.g. an adjacent property. On the other hand, Builder’s Risk policies provide first-party property coverage for direct physical loss to the project during the course of construction. The Builder’s Risk policy will not provide coverage for property other than the project itself (e.g., adjacent property) and it will not provide a defense or indemnity in the event the owner of the damaged property brings a claim against a potentially at-fault party.
Reprinted courtesy of
Anna M. Perry, Saxe Doernberger & Vita, P.C.,
Rachel S. Kindseth, Saxe Doernberger & Vita, P.C. and
Nina Catanzaro, Saxe Doernberger & Vita, P.C.
Ms. Perry may be contacted at APerry@sdvlaw.com
Ms. Kindseth may be contacted at rkindseth@sdvlaw.com
Ms. Catanzaro may be contacted at NCatanzaro@sdvlaw.com
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Congratulations to Reno Partner Karen Baytosh for Securing a Complete Dismissal via a Motion for Summary Judgment
July 13, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O is proud to announce that Reno Partner Karen Baytosh received a significant victory on behalf of the firm’s Developer Client in a high-exposure personal injury matter.
Plaintiff, a teenager, was struck by an intoxicated driver while walking her dog at night, sustaining catastrophic injuries requiring 24-hour critical care for the remainder of her life. Plaintiff’s Guardian brought suit against the drunk driver and her husband, the City, and BWB&O’s Developer Clients, alleging that the City and Developers failed to improve street lighting and install a sidewalk that would have prevented the accident.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
Insured is Third Party Beneficiary of Forced-Place Policy
October 26, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion to dismiss the insured’s fire damage claims under a forced-place policy because the insured was a third-party beneficiary of the policy. Fredericks v. Assurant Specialty, et al., 2026 U.S. Dist. LEXIS 179779 (E.D. Pa. Aug. 12, 2026).
The insureds’ home burned down on the same day their homeowner’s policy expired. The expiration automatically triggered a forced-placed policy issued by American Security Insurance Company (ASIC) to the insureds’ mortgage company, Rocket Mortgage Company, LLC.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurer Cannot Raise Issues on Appeal that Were Not Presented to the Trial Court
June 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeals affirmed a judgment on a collapse claim for the insured, rejecting the insurer’s arguments that were not presented to the trial court. Homeowner’s Choice Prop. & Cas. Ins, Co. v. Oakes, 2026 Fl. App. LEXIS 2086 (Fl. Ct. App. March 18, 2026).
The insured’s ceiling collapsed in the secondary home on the insured’s property. The claim was reported to the insurer, but coverage was denied after its investigation.
The insured sued the insurer for breach of contract. Under the Additional Coverage provisions of the policy, collapse was covered if it was “abrupt.” An abrupt collapse was not covered, however, if exclusions for “Fungi, Wet or Dry Rot” and “faulty, inadequate or defective design, specifications, workmanship, repair, construction, renovation, remodeling, materials or maintenance” applied. The collapse provisions contained no language stating that the coverage granted in the provision was also subject to all the other exclusions in the policy.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Bad Faith Claim Survives Summary Judgment
June 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com