The Subrogation Strategist

In Edifice Constr. Co., Inc. v. Arrow Insulation, Inc., No. 79407-8-1, 2020 Wash App. LEXIS 359, the Court of Appeals of Washington considered whether subcontractors could be bound by the arbitration clause in a contract between an owner and a general contractor. In determining that the subcontractors were not bound by the arbitration clause in the prime contract, the court found that the general contractor failed to meet its burden of showing that the subcontractors were on notice of the specific terms of the prime contract.Continue Reading

Courts often struggle with the question of when the statute of repose starts to run for construction projects that involve multiple buildings or phases. In Village Lofts at St. Anthony Falls Ass’n v. Housing Partners III-Lofts, LLC, 937 N.W.2d 430 (Minn. 2020) (Village Lofts), the Supreme Court of Minnesota addressed how Minnesota’s 10-year statute of repose, Minn. Stat. § 541.051, applies to claims arising from the construction of a condominium complex. The court held that the statute of repose begins to run at different times for: a) statutory residential warranty claims brought pursuant to Minn. Stat. §§ 327A.01 to 327A.08, et. seq.; and b) common law claims arising out of the defective and unsafe condition of the condominium buildings.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 19, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Kawasaki USA Recalls Off-Highway Utility Vehicles Due to Oil Leak, Fire Hazard.

According to the CPSC, “[d]ebris can ignite on the vehicle’s exhaust ... Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 19, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Hawthorne Hydroponics Recalls Grower’s Edge Vaporizers Due To Burn, Shock and Fire Hazard.

According to the CPSC, “[t]he vaporizers can overheat, and the ... Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 17, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

American Honda Recall of Portable Generators Due to Fire and Burn Hazards.

According to the CPSC, “[t]he portable generator’s inverter assembly can short ... Continue Reading

In Travelers Indem. Co. of Am. v. Schwarz Props., L.L.C., 2020 U.S. Dist. LEXIS 18176, the United States District Court for the Western District of North Carolina considered whether the lease between a commercial tenant and its landlord barred the tenant’s insurance carrier from subrogating against the landlord for damages to the tenant’s goods. The court found that the tenant’s carrier could not subrogate against the landlord because the lease clearly and explicitly stated that the landlord was not responsible for the tenant’s property. In addition, the lease required the tenant to insure its own property and to hold the landlord harmless for any damage to the tenant’s goods. This case establishes that, in North Carolina, negligence claims between a landlord and tenant may be barred if the lease includes clear and explicit exculpatory and indemnification provisions.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 12, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Yamaha Guitar Group Recalls Digital Wireless Equipment for Electric Guitars Due to Fire and Injury Hazards.

According to the CPSC, “[t]he lithium-ion ... Continue Reading

In Jensen v. Matute, 2020 La. App. LEXIS 160, the Court of Appeal of Louisiana considered whether the plaintiff could recover compensatory, loss of use damages following a rear-end car collision. The court held that because the plaintiff was able to mitigate the loss of use and, consequently, suffered no actual loss of use damages, he had no recoverable claim.Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On March 5, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

RH Recalls Floor Lamps Due to Fire Hazard.

According to the CPSC, “[t]he lamp’s on/off foot switch can overheat, melt or catch fire, posing a fire hazard.”Continue Reading

In subrogation cases where the insured’s damages were caused by a defective product, the fact that the product at issue is or was subject to a recall announced by the Consumer Product Safety Commission (CPSC) may help to establish that the product was defective when it left the manufacturer’s possession and control. On February 27, 2020, the CPSC announced the following recall related to a product that presents a fire hazard:

Lennox Industries Recalls Ductless Heat Pumps Due to Fire Hazard.

According to the CPSC, “[i]nternal electrical components can fail, allowing the units ... Continue Reading