Fairfield Connecticut Building Expert Directory

Cybersecurity "Flash" Warning for Construction and Manufacturing Businesses

April 26, 2021 — Jeffrey M. Dennis - Newmeyer Dillion
The FBI recently released its 2020 Internet Crime Report (Report), which details and analyzes complaints received through the FBI’s Internet Crime Complaint Center (IC3). In 2020, IC3 received a record number of complaints – nearly 800,000, with reported losses in excess of $4.1 billion. Companies must acknowledge that cybercrime is a real, dangerous threat to their business, and understand how, and why, these threats continue to escalate. At a minimum, businesses should take several proactive steps to protect themselves. What is IC3? IC3 is an online platform hosted by the FBI, which exists to provide the public with a trusted place to report cybercrime to the FBI. Since its inception in 2000, the IC3 has received 5.6 million complaints, and has averaged approximately 440,000 complaints over each of the last five years. The complaint figure for 2020 is nearly double that average. Read the court decision
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Reprinted courtesy of Jeffrey M. Dennis, Newmeyer Dillion
Mr. Dennis may be contacted at jeff.dennis@ndlf.com

Risk Management for Condominium Conversions

July 31, 2013 — David McLain, Higgings, Hopkins, McLain & Roswell, LLC
One of the bright spots in the Colorado construction industry over the last few years has been the construction of for-rent apartments. It seems as though apartments are going up everywhere you look along the Front Range. As market forces change, it will be interesting to see whether these units will remain apartments or whether they will be converted into for-sale condominiums or townhouses. One of the risk management strategies we have recently discussed with our general contractor clients who have been asked to build apartments is to ensure that the project remains a for-rent apartment project through the applicable statute of repose, conservatively assumed to be eight years. Unfortunately this is not always feasible, usually because the owner and/or lender are not interested in encumbering the property for such a long period of time, and want to retain the ability to convert the project if and when market forces allow, even if that is before the running of the statute of repose. The purpose of this article is to discuss the insurance and risk management ramifications of converting a project too early. I have recently heard from several sources in the insurance industry that there are owners and contractors who are currently building apartments with the idea that they will be held as apartments for two to three years and then converted to for-sale condominiums or townhomes. While this strategy may have great appeal from a business point of view, it has a very serious risk management downside. Apparently, these owners and contractors are operating under the mistaken belief that they will have no liability exposure to the ultimate purchasers of the converted units or to the homeowners association for construction defects. This is an incorrect belief. Read the court decision
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Reprinted courtesy of David M. McLain
David M. McLain can be contacted at mclain@hhmrlaw.com

Hawaii Federal District Court Denies Title Insurer's Motion for Summary Judgment

February 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
In a rare title insurance dispute before the federal district court in Hawaii, the court denied the insurer's motion for summary judgment while granting the insured's motion for summary judgment. First Am. Title Ins. Co. v. GS Industries, LLC, 2021 U.S. Dist. LEXIS 240601 (D. Haw. Dec. 16, 2021). GS Industries, LLC took ownership of a parcel of real property located fronting Waipa Lane in Honolulu. The property used four buildings and a parking area for 50 cars. GS obtained a title insurance policy from First American. The policy insured GS' fee simple interest in the property in the amount of $3,500,000. The policy insured GS "against loss or damage, not exceeding $3,500,000, sustained or incurred by GS by reason of . . . not right of access to and from the land,." The policy did not identify any issues with access to the property and did not define "access." A portion of Waipa Lane was owned by the City and County of Honolulu. Parcel 86 and Parcel 91 on Waipa Lane were privately owned. (Private Waipa Lane Parcels). Vehicular access to (ingress) and from (egress) the property was via Waipa Lane. Ingress was made via the publicly owned portion of Waipa Lane. Vehicular egress was made via the Private Waipa Lane Parcels. The City of Honolulu maintained the Private Waipa Lane Parcels and considered them to be pubic. None of the owners of Parcels 86 or 91 notified GS of their intent to block the use of Waipa Lane. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

SIG Earnings Advance 21% as U.K. Construction Strengthens

August 13, 2014 — Benjamin Katz – Bloomberg
SIG Plc (SHI) earnings surged 21 percent in the first half as the distributor of building products benefited from a strengthening recovery in the U.K. housing market as well as procurement savings. Underlying operating profit rose to 47.8 million pounds ($80 million) from 39.6 million pounds a year earlier, the Sheffield, England-based company said in a statement today. Sales in the U.K. and Ireland from continuing operations climbed 14 percent to 650 million pounds, offsetting flat revenue in continental Europe. “Trading conditions in the U.K. have continued to gather momentum, led by the revival in the housing market,” Chief Executive Officer Stuart Mitchell said in the statement. “The group’s first-half performance and progress on its strategic initiatives provide a strong base on which to achieve its full-year expectations.” Read the court decision
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Reprinted courtesy of Benjamin Katz, Bloomberg
Mr. Katz may be contacted at bkatz38@bloomberg.net

Connecticut Court Holds Unresolved Coverage Issues Makes Appraisal Premature

July 18, 2018 — Michael S. Levine, Lorelie S. Masters & Geoffrey B. Fehling – Hunton Insurance Recovery Law Blog
A Connecticut court recently denied a motion to compel appraisal of a claim for coverage of a commercial property damage claim, holding that, where the insurance policy at issue provides for appraisal of disputes related to the value or quantum or a loss suffered—not the rights and liabilities of the parties under the policy—appraisal is premature. The decision relied on law that equates insurance appraisal to arbitration and follows a number of decisions holding that parties cannot expand the scope of appraisal clauses to resolve questions of coverage or liability where, as in this case, those issues are not supported by the applicable policy language. Reprinted courtesy of Hunton Andrews Kurth attorneys Michael S. Levine, Lorelie S. Masters and Geoffrey B. Fehling Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Arizona Supreme Court Clarifies Area Variance Standard; Property Owners May Obtain an Area Variance When Special Circumstances Existed at Purchase

October 19, 2017 — Nick Wood, Adam Lang, Noel Griemsmann, & Brianna Long – Snell & Wilmer Real Estate Litigation Blog
In Pawn 1st v. City of Phoenix, the Arizona Supreme Court rejected a Court of Appeals rule that would have unduly restrained alienation of property in Arizona. The Court of Appeals found that the City of Phoenix Board of Adjustment acted beyond its authority when it granted an area variance to a pawn shop where the special circumstances causing a need for the variance existed before the pawn shop purchased the property. Under Arizona law, boards of adjustment cannot grant an area variance where the special circumstances requiring the variance are self-imposed. The Court of Appeals adopted a rule that knowledge of special circumstances at the time of purchase made the special circumstances self-imposed, foreclosing the purchaser’s ability to obtain a variance. This rule would have severely restricted property purchasers’ ability to obtain area variances in Arizona and by extension likely strained property transactions. The underlying case involved a pawn shop that was proposed in southeast Phoenix. After the property purchaser obtained approval for a required use permit (for a pawn shop) and a variance (for a 500 foot residential setback) from the City of Phoenix Board of Adjustment, a competing pawn shop filed a special action arguing that the variance was a use variance, not an area variance, beyond the board of adjustment’s authority. Reprinted courtesy of Snell & Wilmer attorneys Nick Wood, Adam Lang, Noel Griemsmann and Brianna Long Mr. Wood may be contacted at nwood@swlaw.com Mr. Lang may be contacted at alang@swlaw.com Mr. Noel may be contacted at ngriemsmann@swlaw.com Ms. Brianna may be contacted at bllong@swlaw.com Read the court decision
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US Court Questions 102-Mile Transmission Project Over River Crossing

February 07, 2022 — Mary B. Powers - Engineering News-Record
A federal judge will decide in February whether to stop construction of a $492-million Iowa-to-Wisconsin transmission line, after issuing an opinion in mid-January “declaring” that federal rules preclude the 102-mile Cardinal-Hickory Creek project from crossing the 261-mile Upper Mississippi River National Wildlife and Fish Refuge by right-of-way or land transfer. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Quick Note: Attorney’s Fees on Attorney’s Fees

June 13, 2022 — David Adelstein - Florida Construction Legal Updates
In a recent case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party. The attorney’s fees provision at-issue stated: “In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.” Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision. However, this provision was NOT broad enough to recover “fees on fees.” As explained in this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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