Fairfield Connecticut Building Expert Directory

Economic Loss Not Property Damage

November 04, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit agreed with the district court that the insured subcontractor's economic losses did not amount to covered property damage. Greenwich Ins. Co. v. Capsco Industries, Inc., 2019 U.S. App. LEXIS 23949 (5th Cir. Aug 12, 2019). Capsco Industries, Inc. was a subcontractor on the construction of a casino. Capsco subcontracted with Ground Control to install water, sewage, and storm-drain lines. Ground Control was terminated from the project by the general contractor for alleged safety violations and failed drug tests of its employees. Ground Control sued in state court against multiple parties, including Capsco, seeking payment for work on the project. The claims were dismissed on summary judgment because neither party had obtained the required certificates of responsibility from the state, making the parties' contract void. The Mississippi Supreme Court agreed the contract was void, but reversed and remanded for further proceedings based solely on theories of unjust enrichment and quantum meruit. While the state case was on remand, Capsco's liability insurers, Greenwich Insurance Company and Indian Harbor Insurance Company, filed a compliant for declaratory judgment in federal district court seeking a declaration that they did not owe a defense or indemnity to Capsco. The defendants were Ground Control, Capsco, the general contractor, and the casino owner. The latter two parties were dismissed. Ground Control counterclaimed for coverage of its claims against Capsco. The district court stayed proceedings until the state court litigation ended. 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

Arizona Is Smart About Water. It Should Stay That Way.

February 19, 2024 — Mark Gongloff - Bloomberg
You really have to hand it to Arizona: Even as its population has doubled and it has suffered through a decades long megadrought, the state uses less water today than it did 40 years ago. This success story is the result of what may be the smartest, most conservative approach to water in the country. But homebuilders want to scrap some key elements of this careful system. It’s a bad idea, especially as the climate changes, making the state’s water supply less reliable. And it’s a cautionary tale for the rest of us as we try to adapt to a warming world. In 1980, alarmed at watching its precious groundwater disappear amid rapid development, Arizona passed the Groundwater Management Act. The law established the Arizona Department of Water Resources, set up water-management zones around cities and required new housing developments to prove they had access to 100 years’ worth of clean water, among other things. Read the court decision
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Reprinted courtesy of Mark Gongloff, Bloomberg

Business Risk Exclusions Do Not Preclude Coverage

November 13, 2013 — Tred Eyerly — Insurance Law Hawaii
The court rejected the insurer's arguments that the business risk exclusions barred coverage for a contractor. Gen. Cas. Co. of Wisconsin v. Five Star Bldg. Corp., 2013 U.S. Dist. LEXIS 134122 (D. Mass. Sept. 19, 2013). Five Star was hired by the University of Massachusetts to upgrade the ventilation (HVAC) system on a portion of a building. The large majority of the work involved work in the interior of the building, but a small portion required installation of duct work and supports on top of the roof of the complex. Five Star also penetrated the roof at numerous locations to install supports for duct work and other rooftop structures for the ventilation system. Other subcontractors then secured supports to the concrete roof deck and installed permanent patches where Five Star had penetrated the roofing system. On same days, Five Star could not accomplish the process in a single day after penetrating the roof. It would install temporary patches until the next day. This was the only work on the roof performed by Five Star. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Reminder: Just Being Incorporated Isn’t Enough

June 29, 2020 — Christopher G. Hill - Construction Law Musings
I have discussed why contractors need to incorporate previously here at Construction Law Musings. Among the many reasons to incorporate are possible tax benefits and the protection of personal assets (like your house and your dog) from judgement and collection actions. This latter reason is key in the construction world in which Murphy can look like an optimist and projects have so many moving parts that something is likely to go wrong. The reason incorporation works as at least a partial shield is that the company and the owners are separate “people” or entities from a legal perspective and a contract with one “person” cannot be enforced against another. This same logic applies in the context of corporate versus individual actions, i. e. the actions of one person cannot be legally attributed to another person. By extension the assets of an individual cannot be collected to satisfy a purely corporate debt or judgment. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Berlin Lawmakers Get a New Green Workspace

June 21, 2021 — Iain Rogers - Bloomberg
On a site steeped in history a few hundred meters from the Reichstag in central Berlin, an office building is rapidly taking shape that handily symbolizes how climate protection has come to dominate the political narrative ahead of September’s election. The modular Luisenblock West, which will provide working space for Germany’s Bundestag, or lower house of parliament, is mostly wooden beyond a reinforced concrete core. The individual units that make up the bulk of the building are assembled at a site in the east of the city and designed to reduce carbon footprint by capturing thousands of tons of carbon dioxide. With just four months until the national vote that will mark the end of Angela Merkel’s 16-year reign, the Greens are leading the chancellor’s conservative bloc in some opinion polls and climate protection is high on the list of priorities for many voters. The former fringe party has a real chance of leading a German government for the first time, while traditional parties scramble to affirm their environmental credentials. Read the court decision
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Reprinted courtesy of Iain Rogers, Bloomberg

More Regulations for Federal Contractors

October 08, 2014 — Craig Martin – Construction Contractor Advisor
The Office of Federal Contract Compliance Programs (OFCCP) has been busy. In the last several weeks, the OFCCP has proposed regulations that will require contractors and subcontractors to provide summary compensation data and another rule prohibiting federal contractors and subcontractors from discriminating against employees or applicants who inquire about, discuss, or disclose their own compensation or the compensation of another employee or applicant. Equal Pay Report The OFCCP has proposed Summary Compensation regulations which would require federal contractors and subcontractors with more than 100 employees to “provide summary data on the compensation paid to employees by sex, race, ethnicity, specified job categories, and other relevant data points.” Covered employers would have to submit three types of information: 1. the total number of workers within a specific EEO-1 job category by race, ethnicity and sex; Read the court decision
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Reprinted courtesy of Craig Martin, Lamson Dugan and Murray, LLP
Mr. Gopal may be contacted at pgopal2@bloomberg.net

CLB Recommends Extensive Hawaii Contractor License Changes

January 27, 2014 — Beverley BevenFlorez-CDJ STAFF
In 2013, the Hawaii senate passed a resolution, which asked the Contractors License Board to assess “each of the contractor licensing classifications under chapter 444, Hawaii Revised Statutes, and chapter 77, Hawaii Administrative Rules, and prepare a report that evaluates each classification,” according to Anna Oshiro’s blog, Hawaii Construction Law. The “board completed its task” and “recommends wholesale changes to the scope of work to be performed by licensed contractors in the State of Hawaii.” The report has been filed with the Legislative Reference Bureau. Read the court decision
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Reprinted courtesy of

Consultant’s Corner: Why Should Construction Business Owners Care about Cyber Liability Insurance?

July 13, 2017 — David Adelstein - Florida Construction Legal Updates
Recently, I wrote an article on the importance of cyber liability insurance for design professionals. The reality, however, is that this is important insurance for all professionals in today’s day and age. A modern, online insurance broker called Embroker was kind enough to submit a guest post on cyber liability insurance. Check it out!!! According to the Cybersecurity Ventures Report, the cost of cybercrime could reach $6 trillion by 2021. That same report predicts that cybercrime will expand into new sectors, such as the construction industry. Assuming your construction business has moved beyond pencil and paper drawings, paper invoices and mailed checks, this prediction is cause for concern. In fact, it’s already come true, as the 2013 Target cyber breach which led to a $39 million court settlement came through a HVAC contractor, a development which underscores the need for Cyber Liability insurance. Considering the numerous issues facing construction business owners — from budget and time constraints to production methods to fire hazards — Cyber Liability insurance may seem like a low priority. But f you expect to stay in business and be profitable, that’s simply not the case. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

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