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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:
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.
WALSH & FURCOLO LLP
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