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FMG Law Blog Line

Archive for the ‘E-Alert’ Category

Georgia Court of Appeals: General Conditions Costs and Interest Cannot Be Included in Claim of Lien

Posted on: July 12th, 2012

By Kamy Molavi

On July 11, 2012, the Georgia Court of Appeals issued an opinion in the case of182 Tenth, LLC v. Manhattan Construction Company (2012 WL 2819414).  The Court ruled that “items of general conditions costs described in the payment applications were not lienable because they were not labor, services, or materials which actually went into and became a part of the property.”  The Court based its decision on an interpretation of prior case law to the effect that liens apply only to “work and material or machinery [which] have increased the value of the realty by becoming a part thereof.”  (more…)

Georgia Supreme Court Upholds Apportionment Statute

Posted on: July 10th, 2012

By Sun Choy and Jake Daly

Yesterday the Georgia Supreme Court issued its much-anticipated opinion inCouch v. Red Roof Inns, Inc., which involved a challenge to the validity and constitutionality of Georgia’s apportionment statute, O.C.G.A. § 51-12-33.  The case arose out of a third-party criminal attack on a guest of a motel, who subsequently sued the owner and manager of the motel for their alleged negligent failure to maintain the premises in a safe condition.  The plaintiff did not sue the unknown criminals who attacked him (even as John Doe defendants), and so the defendants identified them as at-fault non-parties to whom fault should be allocated pursuant to the apportionment statute.  Upon the plaintiff’s challenge to the statute via a motion in limine, Judge Steve C. Jones of the United States District Court for the Northern District of Georgia certified the following two questions to the Georgia Supreme Court: (more…)

Supreme Court Upholds Health Care Mandate, but States May Avoid Medicaid Expansion

Posted on: June 28th, 2012

By Ben Mathis

In a 5-4 opinion authored by Chief Justice John Roberts, the Supreme Court upheld the key “individual mandate” provision of the Patient Protection and Affordable Care Act.

Contrary to early media reports, however, a divided and more complicated part of the decision gives individual States the right to avoid participating in the expansion of medicaid eligibility, which is a core component of the Act. (more…)

Georgia High Court Expands Waiver of Coverage Defenses

Posted on: June 27th, 2012

By Philip W. Savrin

Last week, the Supreme Court of Georgia issued its decision in Hoover v. Maxum Indemnity Company finding that an insurer had not preserved its right to disclaim on defenses that were not asserted adequately in the disclaimer letter.  To briefly review the facts, Hoover sued his employer (EWES) for injuries sustained while climbing from a roof on a house where he had been sent by his employer.  Maxum received its first notice from EWES two years later and disclaimed based on an exclusion for injuries to employees.  The disclaimer letter reserved the right to disclaim on other bases, including the extent to which EWES had not complied with the notice provision.  A demand for policy limits of $1 million was rejected.  After the liability case went forward to judgment of $16.4 million, EWES assigned its insurance claims to Hoover who then sued Maxum for coverage and for failing to settle. (more…)

High Court Splits on Arizona Law — Is Georgia Next?

Posted on: June 26th, 2012

By Ben Mathis and Kelly Morrison

In a decision that left both sides claiming victory, the Supreme Court struck down several portions of immigration legislation by the State of Arizona, but also upheld a key part of the law that may further the trend of State legislation attempting to restrict undocumented individuals. (more…)