October 2008

NEWS FROM
WALSH & FURCOLO LLP
October 2008
 
Walsh & Furcolo LLP Celebrates Success
"I find that the harder I work, the more luck I seem to have."
- Thomas Jefferson (1743-1826)

The attorneys and staff of Walsh & Furcolo LLP work hard to deliver excellent results for our clients.  In the majority of litigated cases, this means achieving a favorable and early settlement.  But settlement is not always a viable option. Here are some of the recent victories we have been fortunate enough to secure for our clients:
 
• Millard v. Biosources, Inc.                                                        
 Summary Judgment – Fourth District Court of Appeal Published Opinion
 
 Judge Kevin Enright of the San Diego Superior Court granted summary
 judgment to Walsh & Furcolo’s client, defendant and general contractor
 Biosources, Inc., in a case involving a worksite injury to an employee of an
 HVAC subcontractor.  Plaintiff was injured when he fell from a catwalk in an
 attic space to the floor below.  Millard alleged that Biosources had violated
 various OSHA provisions, resulting in unsafe conditions at the site.  Walsh
 & Furcolo partner Dinah McKean argued that the action was barred by the
 case precedent set forth in Privette and Hooker.  The Court agreed that
 OSHA regulations may set standards of care under Elsner, but do not
 establish a duty of care in the absence of direct causation. The Court of 
 Appeal upheld the ruling in a published opinion, Millard v. Biosources
 (2007) 156 Cal.App.4th 1338.
 
• O’Brien, et al. v. Masterpiece Properties, et al.
  San Diego Superior Court Jury Trial – Defense Verdict

  After a three and a half-week trial, the jury deliberated less than two hours
  before rendering a defense verdict on all causes of action including
  negligence, trespass to real property, encroachment, public nuisance,
  nuisance per se and unfair business practices.  Plaintiffs sought
  damages in excess of $500,000 against their Rancho Santa Fe neighbors
  for grading violations, encroaching slopes and excessive and
  contaminated water run-off onto plaintiffs’ property and alleged illegal
  operation of a commercial horse facility.  Walsh & Furcolo attorney Regan
  Furcolo successfully defended the action. 
 
• Jones v. Westcoast Marine Construction, et al.
  Federal Court Trial – Defense Judgment

  The Federal Court rendered judgment in favor of defendant, A.T.C. Rentals 
  & Repair, Inc. – a crane and equipment leasing company represented by   
  Walsh & Furcolo – in a case involving allegations of a ship welder being 
  injured when a crane load of 5,000 pounds slammed him against the side
  of a naval ship.  Plaintiff alleged he was working aboard the U.S.S. 
  Constellation in San Diego Bay when the load struck him, causing career-
  ending back, neck and shoulder injuries.  However, Walsh & Furcolo
  partner John Walsh and attorney Tom Kelleher proved that plaintiff had
  pre-existing complaints of neck and back injuries and that A.T.C. did not
  cause the accident.  Plaintiff had sought $3 million from A.T.C.
 
• Gates v. Hallmark RBSD, et al.
  San Diego Superior Court Bench Trial – Defense Judgment 

  Plaintiffs’ home was destroyed in a wildfire and they contracted with 
  defendants to build a new house on the existing lot.  The contract price per 
  square foot was based on “production” building costs which assumed that
  the house would be built on the same construction schedule as a number
  of others in the same area.  A county agency refused to approve
  construction of the new home due to limitations of the lot’s septic system,
  and delays ensued.  Defendants later offered to build a different house at a
  higher price per square foot.  Plaintiffs sued defendants for breach of
  contract, negligence, fraud, negligent misrepresentation and unfair
  competition and refused to accept less than $500,000 in settlement.  After
  a week-long trial defended by Walsh and Furcolo partner Dinah McKean,
  San Diego Superior Court Judge Steven Denton agreed that the original
  contract was excused by impossibility and found for defendants on all
  causes of action. 
 
 Fredericks v. Jacobson, et al.
  San Diego Superior Court Jury Trial – Defense Verdict 

  A jury voted 12-0 in favor of co-defendants, Rookies Sports Bar and its
  employee, in a case involving a woman who was struck by a car in the
  street after being served at the restaurant.  Walsh & Furcolo represented
  Rookies and its employee.  Plaintiff claimed she was assisted by the
  Rookies’ employee in crossing a busy boulevard without a crosswalk,
  resulting in serious injuries that required life flight transport to the
  hospital.  Walsh & Furcolo attorney Tom Kelleher convinced the jury that
  the Rookies’ employee was not responsible and neither defendant bore  
  any liability for the accident.
 
• O’Brien, et al. v. Mitchell, et al.
  San Diego Superior Court Jury Trial – Defense Verdict
 
  Plaintiffs alleged assault, battery and negligent infliction of emotional  
  distress, claiming defendant property owners had attacked them while  
  plaintiffs were on a nature walk behind their neighbors’ property.  The jury
  rendered a unanimous defense verdict.  Walsh & Furcolo attorney Regan
  Furcolo successfully proved that plaintiffs were trespassing in an attempt
  to gather evidence in support of a separate lawsuit and had initiated the
  altercation. 
 
• Reese v. Morrison Drilling, Inc., et al.
  San Diego Superior Court Jury Trial – Favorable Result

  Plaintiff, the owner of extensive rural property, including a residence and a
  palm tree nursery, demanded $2.4 million in property damage and
  physical injuries as a result of defendant servicing a water well which
  rendered the well unusable.  No replacement water well was located, and
  the property was left without a water source.  As a result, plaintiff alleged all
  of the valuable palm trees died and that the family suffered health ailments
  such as rashes from trucked-in potable water.  Plaintiff sued for
  continuous nuisance.  The case was defended by Walsh & Furcolo partner
  John Walsh and attorney Christopher Lea.  The jury awarded a total of
  $233,000, which was reduced to $141,500 in post-trial motions.  Plaintiff
  had previously rejected a defense settlement offer of $250,000, insisting
  that damages were over $2.0 million.
 
• American Safety Indemnity Co. v. Admiral Insurance Company
  San Diego Superior Court – Summary Judgment (Insurance Coverage)
 
  San Diego Superior Court Judge Jeffrey Barton held that American Safety
  was not entitled to any reimbursement or contribution from Walsh &
  Furcolo’s client, Admiral, for over $2.0 million in defense fees and costs
  paid by American Safety in defending a landslide case against Admiral’s
  named insured (developer), pursuant to an additional insured
  endorsement on American Safety’s policy issued to a grading contractor. 
  American Safety sought contribution from Admiral on the basis that the
  developer’s separate liability was beyond the scope of the additional
  insured coverage and that its coverage was excess to Admiral’s due to a
  manuscripted endorsement and “other insurance” clause.  Walsh &
  Furcolo partner John Walsh and attorney Jim Derfler successfully moved
  for summary judgment based on the argument that the express-indemnity
  provision in the subcontract,  coupled with the language in the Admiral
  policy, defeated any indemnity or contribution claim by American Safety. 
 
• Group Builders, et al. v. Admiral Insurance Company, et al.
  Circuit Court, Hawaii – Summary Judgment (Insurance Coverage)

  In an underlying action in Hawaii based on mold damage to the Hilton
  Hotel Kalia Tower in Waikiki, Walsh & Furcolo client Admiral Insurance
  Company had disclaimed coverage principally due to a lack of property
  damage during its policy period and certain business risk exclusions.  The
  insured, Group Builders, was defended by the insurer affording coverage
  prior to Admiral.  After a multi-million dollar settlement, Group Builders and
  its defending insurer, Tradewind, sued Admiral for breach of contract, bad
  faith and contribution.  Walsh & Furcolo partner John Walsh and attorney
  Lynn Pham served as regional counsel, with the case handled directly by
  local Hawaii attorneys Allen Wolff and Joseph Kotowski.  In successive
  motions for summary adjudication, the court ruled that Admiral had not
  breached the covenant of good faith and fair dealing owed to Group
  Builders, that Tradewind had no claim for bad faith independent from
  Group Builders’ extinguished claim and that Admiral had no obligation to
  indemnify either plaintiff for settlement proceeds paid by them in the
  amount of $4.3 million.  The case has been certified for appeal.
 
Jeld-Wen v. Action Iron Works, et. al.
  San Diego Superior Court – Summary Judgment 

  San Diego Superior Court Judge Luis R. Vargas held that Jeld-Wen was 
  not entitled to any indemnity or contribution from Walsh & Furcolo’s client,
  Pacific Coast Roofing Corporation, in a claim for over $4.5 million in
  defense fees and costs paid by Jeld-Wen as part of a judgment in an
  underlying construction defect action. Walsh & Furcolo attorney
  Christopher Lea successfully brought a Motion for Judgment on the
  Pleadings as to Jeld-Wen’s claim that it was a third party beneficiary of
  Pacific Coast Roofing Corporation’s contract with Pardee Homes and a
  Motion for Summary Judgment which disposed of the remaining causes of
  action. Walsh & Furcolo also successfully obtained a substantial
  attorney’s fees award against Jeld-Wen under Civil Code section 1717
  and Code of Civil Procedure section 1038. The case is currently on appeal.
 
• Canyon Beach Offshore, Inc. dba Sea Tow Newport v. Hughes, et al.
  Binding Arbitration – Favorable Result
 
  Plaintiff sought $216,856 for removal and related storage costs of
  defendants’ wrecked 38-foot Bayliner from the public beach at Newport
  Beach, CA.  Defendants offered $70,000 for the reasonable value of
  services provided.  Walsh & Furcolo attorney Regan Furcolo limited the
  award to $73,740. 

 
Walsh & Furcolo fully recognizes that these successes, as with every good outcome, are the result of close teamwork with the claims representatives and clients who work with us every step of the way.  We thank them for the confidence they have in us and we look forward to the opportunity to be of service in the future.

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