First-Party Property

We succeeded in obtaining a per curiam affirmance in the First District Court of Appeal of a final order dismissing the plaintiff’s fire-loss subrogation claim against our client, a tenant in a leased property the plaintiff insured. The First District affirmed the trial court’s finding that the specific fire-loss provisions in the lease shifted the risk of loss to the landlord, the plaintiff’s insured. As a result, our client was a co-insured under the plaintiff’s policy. An insurance company cannot sue its own insured.

We obtained summary judgment in the Westmoreland County Court of Common Pleas in favor of our clients in a dispute over alleged excess water runoff. Our clients, a married couple, were sued by their neighbors for claims related to water runoff due to the installation of gutters and downspouts on a shed near the property line. We effectively argued for summary judgment on the plaintiffs’ injunction, trespass, nuisance and negligence claims, demonstrating that the plaintiffs lacked the necessary expert testimony to substantiate their case as required under Pennsylvania law. Additionally, the plaintiffs’ negligence claim was barred by the two-year statute of limitations, which had expired at least six years before the suit was filed.

We obtained a defense verdict in the U.S. District Court for the Eastern District of Pennsylvania in a case where the plaintiff sought $24.1M for alleged property damages and lost revenue.     In 2014, our client defendant, a marine construction company, was retained by the U.S. Navy to conduct pile driving activities at the Philadelphia Navy Yard. The plaintiff, a neighboring commercial property owner, alleged that our client's pile driving and related activities damaged its property and caused it to lose revenue. All other defendants settled before trial. The plaintiff claimed $20 million in damages against our client. A bifurcated trial began on January 17, 2023. The plaintiff’s demand dropped throughout the nine-day liability phase, which involved numerous scientific and engineering experts and other witnesses. On January 27, 2023, the jury returned its unanimous verdict, attributing 60% of the fault to plaintiff itself and 25% to the Navy, which resulted in a defense verdict for our client. As a result of the defense verdict on liability, there will be no damages phase.  

The plaintiff alleged that his client and a neighboring property owner were responsible for water and septic intrusions onto the plaintiff’s property. The three Bucks County properties formed a large triangle between two roads in Perkasie, Pennsylvania. The plaintiff’s complaints against his neighbors went back over seven years. We argued the trespass onto the plaintiff’s property was permanent in nature and was barred under the statute of limitations, and that the plaintiff’s experts failed to establish the intrusion emanated from our client’s property.

In a lawsuit seeking $279 million in alleged property damages, Marshall Dennehey attorneys successfully defended their client, a subcontractor of a railroad repair shop, against any and all liability.  The case involved the August 2016 rupture of a railroad tank car containing 178,000 lbs. of liquefied chlorine at the plaintiff’s chlorine manufacturing plant in West Virginia. The tank car had recently been returned to the plaintiff after undergoing extensive repairs in the spring of 2016. The chemical producer-plaintiff filed suit against three parties as a result of the chlorine release: its fleet maintenance manager, the railcar repair shop that performed the 2016 repairs to the tank car and our client, a subcontractor of the railroad repair shop involved in the aspect of the repairs which the plaintiff claimed were performed negligently.  At the time of the 2016 repairs, the tank car was 37 years old and had several characteristics associated with it that were known in the railroad industry to cause cracks in the tank’s shell. It was undisputed at trial that there was a small, pre-existing crack in the tank shell prior to the 2016 repairs at issue, and that, but-for this pre-existing crack, the tank car would not have ruptured in August of 2016, which was the first time the tank car was loaded with chlorine since the repairs were completed. Allegations of comparative negligence were asserted by all of the defendants against the plaintiff for its decision to repair, rather than scrap, the tank car in 2016.  During trial, the plaintiff asserted it was entitled to $278 million in replacement-value property damage associated with alleged damage to its equipment at its 500-acre chlorine manufacturing plant. The plaintiff requested, and the trial judge granted, a jury instruction providing that the jury could award replacement value damages. The nearly six-week trial encompassed over 30 witnesses and 10 expert witnesses. After deliberations, the jury awarded only $12.8 million in damages, assessing the railcar repair shop with 40% of liability, the plaintiff’s fleet maintenance manager with 20% of liability, and the plaintiff itself with the remaining 40% of liability. No liability was assessed to our client.