New York City Targeting Safety Violations And Corruption In the Construction Industry
Posted on Aug 7, 2015
New York City is targeting corruption and fraud in the construction industry. On Wednesday, the Manhattan District Attorney’s Office, the New York City Department of Investigation (“DOI”), the Port Authority of New York and New Jersey Office of the Inspector General, the Metropolitan Transportation Authority Office of the Inspector General, and the Business Integrity Commission for the City of New York announced the creation of a Construction Fraud Task Force. DOI Commissioner Mark Peters announced, “those who ignore integrity also undermine safety.” The...
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Supreme Court Asked To Clear Up Maritime Contracting Circuit Split
Posted on Aug 4, 2015
An ocean carrier and its on-land rail subcontractor have asked the U.S. Supreme Court to resolve the uncertainty in maritime contracting created by an apparent conflict between the Seventh Circuit and a recent Second Circuit decision that arise from the interpretation of the U.S. Supreme Court’s case of Kawasaki Kisen Kaisha, Ltd. v. Regal-Beloit, 561 U.S. 89 (2010), a case that involved the same trainwreck as the present appeal. In the Regal-Beloit case, the U.S. Supreme Court held that the Carriage of Goods by Sea Act governed the ocean carrier’s and railroad’s...
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Airline Faces Significant Proposed Penalties By FAA For Alleged Safety Violations
Posted on Jul 11, 2015
The Federal Aviation Administration announced yesterday that it was proposing a $911,000 civil penalty against a U.S. airline for allegedly operating two aircraft that were not in compliance with federal aviation regulations. Specifically, the FAA alleges that the airline failed to inspect the cargo door skins on two regional jets at required intervals. In 2006, the FAA determined that regular inspections for potential fatigue testing in aluminum cargo doors could help prevent cracks that could lead to accidents. The airline allegedly operated 15,969 flights since the inspections were...
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Punitive Damage Claims Can Go Forward Against New York City Asbestos Defendants
Posted on Jul 11, 2015
In the New York City Asbestos Litigation that has been pending for decades, an intermediate New York appellate court determined that the motion judge had the authority to amend the Case Management Order to allow for Plaintiffs to seek punitive damages upon application to their respective trial court, even though the defendants in the case had opposed the amendment. The previous Case Management Order, set forth in 1996, stated that “Counts for punitive damages are deferred until such time as the Court deems otherwise.” The defendants argued that the Case Management Order could...
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Texas Appellate Court Declines Invitation To Expand Employer’s Duty To Provide Medical Care To Employees
Posted on Jul 10, 2015
A Texas worker began having symptoms of a stroke over several hours of his shift and eventually called 911. He later sued his employer arguing that the employer breached a duty of ordinary care owed the worker by failing to provide him medical attention. After the trial court granted summary judgment to the employer, the worker appealed and argued that although as a general rule an employer owes no duty to provide medical care to an employee who becomes injured or ill, that his situation was governed by an exception that arises when an employee becomes helplessly injured or ill, is...
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Insurance Coverage Dispute Arising From $22 Million Verdict To Injured Worker Continues In Illinois
Posted on Jul 2, 2015
In March 2014, an Illinois state court jury found in favor of an injured worker and returned a judgment of approximately $22 million against Company A, which was hired for work on a trade show. Company A had filed a third-party complaint against Company B, the worker’s employer for contribution and the jury determined that Company B had to contribute 75% of the judgment. Company B had a commercial general liability insurance policy providing $1 million per occurrence limit; an umbrella liability policy providing a $5 million per occurrence limit; and a workers’ compensation and...
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Insurer Has Duty To Defend Even Though Insured Did Not Immediately Notify Insurer Of Underlying Lawsuit
Posted on Jun 30, 2015
The United States sued Company A for discharging pollutants from an offshore platform in the Gulf of Mexico in February 2013 after giving notice to Company A of the alleged violations in March 2012. Company A failed to give notice to its insurer of the potential violations until September 2013 despite an insurance policy that required “immediate notice” of any occurrence that gave rise to a claim under the policy. In determining whether to enforce the notice provision, the U.S. Bankruptcy Court for the Southern District of Texas had to determine whether to apply the policy’s choice of law...
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