Contribution Claims

News & Analysis as of

Double-Breasted Company Owners, Officers Can Be Indicted for Underpaying Benefit Contributions

The U.S. District Court for the District of Massachusetts held in September that the shareholders and officers of a double-breasted construction company can be indicted and could go to prison if the government proves they...more

Assignment v. Subrogation — Prosecuting Recovery Actions Arising from Personal Injury Claims

It is common in most jurisdictions that personal injury claims cannot be assigned. This can occasionally present a concern when an insurance carrier attempts to bring a contribution action against a third-party tortfeasor...more

Massachusetts Supreme Judicial Court Rejects "Selective Tender Rule" As Exception to Doctrine of Equitable Contribution Among...

On Monday, March 7, 2016, the Massachusetts Supreme Judicial Court (“SJC”) rejected the “selective tender rule” as contrary to Massachusetts insurance law and sound public policy in Insurance Company of the State of...more

Contribution Claims: Uncertain Jurisdictional Basis

An automotive component producer and an insurer have separately challenged the jurisdiction of the High Court in Iveco SpA & Iveco Ltd v Magna Electronics Srl [2015] EWHC 2887 (TCC), 13 November 2015 & XL Insurance Co SE v...more

Blog: Commercial Court Considers Jurisdictional Issues Affecting Contribution Claims

In XL Insurance Company SE v AXA Corporate Solutions Assurance [2015] EWHC 3431 (Comm), the Commercial Court has held that, pursuant to Article 4 of EU Regulation 1215/2012, it had no jurisdiction to hear a dispute between a...more

Michigan Court Dismisses Cross-Claim as Insurer Not Properly Subject to a Claim for Breach of Fiduciary Duty

In Van Loo v. Cajun Operating Co, No. 14-cv-10604 (E.D. Mich. Sept. 17, 2015), the Eastern District of Michigan, a Sixth Circuit district court, held that the requirement for evidence of insurability was triggered based on...more

Court Extends Insurer Rights to Equitable Contribution

In Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action,...more

Change in Limitation Period Law Significant for Construction Projects

In Whitecourt Power Limited Partnership v Elliott Turbomachinery Canada Inc., 2015 ABCA 252 (Whitecourt Power), the Alberta Court of Appeal interpreted a recent amendment to the Limitations Act that changed the limitation...more

CERCLA Statute of Limitations Applies To Contribution Claims By A Party to a Private Settlement

Sometimes cases seem to be deciding issues that are so obvious it’s hard to figure out why they get any serious attention from the courts. One such case is ASARCO, LLC v. Celanese Chemical Company recently decided by the...more

South Carolina Court Limits CERCLA Remedies

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) allows the federal government to collect funds from or to order a “potentially responsible party” (“PRP”) to clean up contaminated sites. 42...more

Are Concurrent CERCLA Claims For Section 107(a) Cost Recovery and Section 113(f) Contribution Permissible?

Given the uncertainties after Cooper Industries v. Aviall about what cause of action a PRP has for recovering response costs under CERCLA, many parties take the prudent course of pleading claims under both for cost recovery...more

No Statute of Limitations for Private Contribution Claims Under New Jersey’s Spill Act

Selling a piece of commercial property often requires much negotiation and planning, and generally represents the culmination of a result of a well-reasoned business decision. And at the conclusion of the deal—and depending...more

CERCLA’s Confusion Between Section 107 and Section 113

Over a decade after the Supreme Court’s decision in Cooper Industries v. Aviall, the divide between CERCLA Section 107 cost recovery claims and Section 113 contribution claims remains unsettled. PRPs incurring response costs...more

Mixing Concrete, Like Baking a Cake, is Fraught with Problems When the Recipe is Not Followed

“Mixing concrete, like baking a cake, is fraught with problems when the recipe is not followed.” – Justice Kenneth Yegan, State Ready Mix, Inc. v. Moffatt & Nichol, California Court of Appeal for the Second District, Case No....more

A Win for Nonsettling Defendants Facing Securities Act Claims

Nonsettling defendants that faced Securities Act claims were protected from disproportionate liability following a partial settlement. On February 3, Judge William H. Orrick of the U.S. District Court for the Northern...more

New Jersey Supreme Court Rules Unanimously: There is No Statute of Limitations Defense to Contribution Actions Under the Spill Act

On January 26, 2015, the New Jersey Supreme Court unanimously ruled in Morristown Associates v. Grant Oil Co. that the general six-year statute of limitations for injury to real property does not apply to contribution claims...more

New Jersey Supreme Court Rules No Time Bar for Spill Act Contribution Claims

In a unanimous decision on January 26, 2015, the Supreme Court of New Jersey, in Morristown Associates v. Grant Oil Co., overturned two lower-court decisions and held that the six-year statute of limitations for damage to...more

Case Settled! New Jersey Supreme Court Says No Time Limits to Spill Act Contribution Claims

Action Item: Defendants can no longer assert a statute of limitations defense to claims of contribution under the New Jersey Spill Compensation and Control Act, N.J.S.A. 58:10-23.11, et seq. (“Spill Act”). ...more

New Jersey Supreme Court: No Statute of Limitations for Private Claims for Contribution Under NJ Spill Act

Following principles of strict statutory construction and refusing to “unsettle a decades-long understanding in this State,” on January 26, 2015, the New Jersey Supreme Court unanimously ruled that there is no statute of...more

Oregon Court Denies HOA’s Effort to Proceed Against Subcontractors for Construction Defect

In Liberty Oaks Homeowner’s Ass’n v. Liberty Oaks, LLC, 2014 Ore. App. LEXIS 1696, the Liberty Oaks Homeowners’ Association (“HOA”) sued the developers of townhomes, alleging that they were responsible for construction...more

NJ Spill Act Contribution Rights in Jeopardy Under Proposed Bill: Points to Consider - M&E Environment & Energy Alert

A bill (A-3880/S-444) recently introduced in both houses of the New Jersey legislature would prevent companies and private individuals from exercising their existing contribution rights under New Jersey’s Spill Act to recover...more

CERCLA Cost Recovery v. Contribution Again: It’s Still Unfair

Parties in CERCLA cases continue to deal with the consequences of the Supreme Court decisions in Aviall and Atlantic Research which essentially created two classes of PRPs: (1) PRPs who entered into CERCLA settlements with...more

Construction Case Law Update - September #2 2014

FLORIDA FEDERAL CASES - - Contribution, Equitable Subrogation, and Breach of Contract – Insurer adequately alleged elements of contribution, equitable subrogation, and breach of contract claims in construction defect...more

CERCLA’s Three Year Statute of Limitations for Contribution Applies To Non-CERCLA Settlements

Parties which settle environmental liability in a judicially approved settlement have three years from the date of that settlement in which to seek contribution even if the settlement is not a CERCLA settlement. That is the...more

In a Case of First Impression, District Court Finds an Insurer May Not Seek a Declaration as to Another Insurer’s Duty to Defend

An insurance company may not seek to require another insurer to defend its insured via declaratory judgment according to the United States District Court for the District of South Carolina in Auto-Owners Insurance Company v....more

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