Fairfield Connecticut Building Expert Directory

Indemnification Provisions Do Not Create Reciprocal Attorney’s Fees Provisions

November 21, 2018 — CDJ STAFF
In a good, recent decision, the Eleventh Circuit in International Fidelity Insurance Co. v. Americabe-Moriarity, JV, 2018 WL 5306683 (11th Cir. 2018), held that Florida Statute s. 57.105(7) cannot be used to shift attorney’s fees in a contractual indemnification clause in a dispute between a general contractor and subcontractor’s performance bond surety, when the dispute does not involve an actual indemnification claim stemming from a third-party. In this case, a prime contractor terminated a subcontractor and looked to the subcontractor’s performance bond surety to pay for the completion work. The subcontractor had a standard AIA A312 performance bond that requires the prime contractor to comply with the terms of the bond, as well as the incorporated subcontract, in order to trigger the surety’s obligations under the bond. The surety filed an action for declaratory relief against the prime contractor arguing that the prime contractor breached the terms of the performance bond through non-compliance thereby discharging the surety’s obligations. The trial court agreed and the surety moved for attorney’s fees. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Defense Owed for Product Liability Claims That Do Not Amount to Faulty Workmanship

December 30, 2013 — Tred Eyerly — Insurance Law Hawaii
The trial court's holding that there was no occurrence based on claims from faulty workmanship was reversed by the appellate division of the Pennsylvania Superior Court. The underlying claims were based on product liability tort claims, not faulty workmanship. Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA., 2013 Pa. Super. LEXIS 3186 (Pa. Superior Court Dec. 3, 2013). The underlying lawsuits claimed that the insureds' windows and doors were defectively designed or manufactured, which resulted in water leakage causing physical damage, such as mold and cracked walls. There were also personal injury claims. The insureds had a primary policy with OneBeacon Insurance Group, but the policy limits were exhausted. The insureds turned to their commercial umbrella policy issued by National Union. The policy defined occurrence as "an accident, including continuous or repeated exposure to conditions, which results in Bodily Injury or Property Damage neither expected nor intended from the standpoint of the Insured." Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Big Policyholder Win in Michigan

January 05, 2017 — Jeremiah M. Welch – Saxe Doernberger & Vita, P.C.
Jeremiah Welch and Michael Barrese recently had a big win in front of the Michigan Court of Appeals. The case (Skanska-Schweitzer v. Farm Bureau General Insurance Company of Michigan) involved Skanska’s claim for defense and indemnity from Farm Bureau Ins. Co. of Michigan for an injury to an elementary school student arising out of the removal of playground equipment by a landscaping company, Horrocks. Farm Bureau denied coverage because it claimed that the work was not part of Horrocks’ contract with the project owner and therefore Skanska, the construction manager, did not qualify as an additional insured on the policy. SDV argued that the AI endorsement did not specify that Horrocks’ work be performed as part of its contract with the owner; it only required that the work be performed “for Skanska.” Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita, P.C.
Mr. Welch may be contacted at jmw@sdvlaw.com

Curtain Wall Suppliers Claim Rival Duplicated Unique System

February 28, 2022 — Annemarie Mannion - Engineering News-Record
Chicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects. Reprinted courtesy of Annemarie Mannion, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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SunEdison Gets Shinsei Bank Funding for Japan Solar Power Plant

March 12, 2015 — Ehren Goossens – Bloomberg
(Bloomberg) -- SunEdison Inc., a U.S. solar developer, got financing from Tokyo-based Shinsei Bank Ltd. for a large-scale project in the country. The 9.6-megawatt Tarumizu project on the southern Japanese island of Kyushu will power about 3,000 homes, Maryland Heights, Missouri-based SunEdison said Wednesday in a statement. The project is under construction and expected to be completed in September. Financial details weren’t disclosed. Read the court decision
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Reprinted courtesy of Ehren Goossens, Bloomberg
Mr. Goossens may be contacted at egoossens1@bloomberg.net

Housing Starts in U.S. Little Changed From Stronger January

March 19, 2014 — Jeanna Smialek – Bloomberg
Housing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. The 0.2 percent decrease to 907,000 homes at an annualized rate last month followed a revised 909,000 pace in January, figures from the Commerce Department in Washington showed today. The median estimate in a Bloomberg survey called for a 910,000 rate after a previously reported 880,000 in January. Warmer temperatures, a pickup in demand during the spring selling season and limited housing supply may help fuel further gains in new residential construction. The outlook for the industry later this year depends on whether hiring picks up enough to overcome higher mortgage rates and home prices. Read the court decision
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Reprinted courtesy of Jeanna Smialek, Bloomberg
Ms. Smialek may be contacted at jsmialek1@bloomberg.net

Infrastructure Money Comes With Labor Law Strings Attached

July 25, 2022 — Cheryl Behymer, Patrick M. Dalin & Collin Cook - Construction Executive
The federal government has committed to spending $1 trillion under the Infrastructure Investment and Jobs Act on nationwide construction, alteration and repair projects. Billions of dollars have already been deployed on projects to improve highways, bridges, airports, electrical infrastructure and drinking water distribution, and the government is poised to spend the remaining funds on a massive infrastructure build-out over the next five years. While federal government contracts may provide a lucrative and reliable stream of revenue for construction companies, contractors must be prepared to comply with special requirements, particularly under the labor and employment laws enforced by the U.S. Department of Labor (USDOL). 1. The Davis Bacon Act Requires Payment of Prevailing Wages and Fringe Benefits The Davis Bacon Act (DBA) applies to most federally funded and federally assisted projects for construction, alteration or repair work. This law requires all contractors and subcontractors on a covered project to pay all “laborers or mechanics” the wages and fringe benefits that “prevail” in the locality where the work is being performed. The USDOL determines what the prevailing wages and fringe benefits are for each trade and publishes them in wage determinations that should be issued to all contractors on the project. Reprinted courtesy of Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Policyholder Fails to Build Adequate Record to Support Bad Faith Claim

May 19, 2011 — Tred R. Eyerly

The importance of careful preparation and documentation was the take away lesson in a Texas bad faith case, C.K. Lee v. Catlin Specialty Ins. Co., 2011 U.S. Dist. LEXIS 19145 (S.D. Tex. Feb. 28, 2011).

C.K. Lee owned a commercial shopping center in Houston. Catlin issued a commercial property policy to Lee. On September 12, 2008, Hurricane Ike hit and caused substantial property damage throughout the Texas Gulf Coast area. On September 24, 2008, Lee submitted a claim for damage to the roof of his shopping center to Catlin.

Catlin hired Engle Martin to represent its interests in adjusting the claim. Engle Martin eventually adjusted over 200 Ike-related claims for Catlin.

In November 2008, Engle Martin and Emergency Services Inc., retained by Lee, inspected Lee’s property. Engle Martin observed evidence of roof repairs that had apparently been made both before and after Hurricane Ike. Engle Martin decided it was necessary to use an infrared scan of the roof to help identify which damages, if any, were attributable to wind and which, if any, were attributable to sub par, prior repairs or natural deterioration.

Engle Martin retained Project, Time & Cost (PT&C) to conduct the infrared inspection. PT&C’s inspection determined there was no wind-related damage to the roof and no breaches or openings created by wind. Instead, the roof had exceeded its life expectancy and was in need of replacement due to normal wear and weathering. Consequently, Catlin decided that the damage to Lee’s roof was not caused by winds from Hurricane Ike.

Meanwhile, Lee’s contractor, Emergency Services, prepared a report estimating that the total cost of repairing the roof would be $871,187. Engle Martin’s estimate for repair of the roof was $22,864.

Lee filed suit for breach of contract, breach of the duty of good faith and fair dealing, and violations of the Texas Insurance Code. Catlin moved for summary judgment on all claims but breach of contract, arguing that because there was a bona fide dispute concerning the cause of the damages and whether they were covered under the policy, there was no evidence of bad faith or violations of the Texas Insurance Code.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES