Fairfield Connecticut Building Expert Directory

No Coverage for Additional Insured for Construction Defect Claim

July 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Seventh Circuit affirmed the district court's grant of summary judgment to the insurers, finding there was no coverage for the additional insured on a construction defect claim. St. Paul Guardian Ins. Co. v. Walsh Construction. Co., 2024 U.S. App. LEXIS 10285 (7th Cir. April 29, 2024). The City of Chicago hired Walsh Construction Company as general contractor for the Facade and Circulation Enhancement (FACE) project at O'Hare International Airport. The FACE project involved building and installing a new canopy for Terminals 1, 2 and 3. The project also called for the construction of a steel and glass curtain wall that would be integrated with the curtain wall at Terminals 2 and 3. Walsh contracted with Carlo Steel Corporation to manufacture the steel and curtain wall. Carlo, in turn, subcontracted with LB Steel, LLC to manufacture and install the steel elements of the wall, which included steel columns, hammer heads and box girders. The subcontract between Carlo and LB Steel included an indemnity provision that required LB Steel to indemnify Carlo and Walsh for any property damage resulting from LB Steel's negligent performance. 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

Western Specialty Contractors Branches in San Francisco and Cleveland Take Home Top Industry Honors

January 03, 2022 — Western Specialty Contractors
(St. Louis, MO, Dec. 21, 2021) Western Specialty Contractors Branches in San Francisco, CA and Cleveland, OH are ending the year's fourth quarter on a high note, with each receiving a top industry award. In October, Western's San Francisco Branch was named a 2021 International Concrete Repair Institute (ICRI) Project of the Year Award Finalist (Historic Category) for renovation and repurposing of the SMUD Museum of Science and Curiosity in Sacramento, CA. Western's Cleveland Branch was honored in December with the Institute of Real Estate Management (IREM) Northern Ohio Chapter's Industry Partner of the Year Award. About Western Specialty Contractors Family-owned and operated for more than 100 years, Western Specialty Contractors is the nation's largest specialty contractor in masonry and concrete restoration, waterproofing and specialty roofing. Western offers a nationwide network of expertise that building owners, engineers, architects, and property managers can count on to develop cost-effective, corrective measures that can add years of useful life to a variety of structures including industrial, commercial, healthcare, historic, educational and government buildings, parking structures, and sports stadiums. Western is headquartered in St. Louis, MO with 30 branch offices nationwide and employs more than 1,200 salaried and hourly professionals who offer the best, time-tested techniques and innovative technology. For more information about Western Specialty Contractors, visit www.westernspecialtycontractors.com. Read the court decision
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Stick to Your Guns on Price and Pricing with Construction Contracts

December 20, 2021 — Christopher G. Hill - Construction Law Musings
In recent posts here at Construction Law Musings, I have discussed the need for clarity of contract, trusting your gut, and assuring that your contract has the necessities. All of these bits of advice (along with my usual advice of working with an experienced construction attorney) are true with regard to commercial construction contracts and apply ten fold in a residential construction (read working for a single/family owner on their house). With a residential project, you, as a construction contractor, are likely to be dealing with the difficult combination of an owner with little or no experience relating to how a construction project is supposed to work and an owner that is emotionally invested in the project because it is their home. Because of the above, and the fact that your project is likely the biggest single investment that the owner has made outside of possibly a prior house, the residential owner will likely be looking over your shoulder and may very well attempt to negotiate down some of the costs that they perceive as the project moves forward. In short, the average person 1. does not know how much the project truly costs the contractor, and 2. feels that because they hold the cash, they can and should have some control over the individual costs of the construction thus making those costs, and by extension, their contract, negotiable right up until the end. 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

New York’s Second Department Holds That Carrier Must Pay Judgment Obtained by Plaintiff as Carrier Did Not Meet Burden to Prove Willful Non-Cooperation

November 23, 2020 — Craig Rokuson - Traub Lieberman
In the recent case of DeLuca v. RLI Insurance Company, 2020 WL 5931054 (October 7, 2020), the Supreme Court, Appellate Division, Second Department held that RLI had a duty to pay a judgment obtained by an underlying plaintiff against RLI’s insured, MLSC. The underlying plaintiff brought the action directly against the carrier after obtaining a judgment against MLSC, and when the judgment remained unsatisfied, serving RLI with the judgment. As an initial matter, the court found that the direct action by the plaintiff was proper under New York Insurance Law 3420(a), which allows for an injured plaintiff to maintain a direct action against a carrier if a judgment against that carrier’s insured remains unsatisfied for a period of 30 days and the carrier is served with that judgment. In that event, the plaintiff steps into the shoes of the insured and is entitled to the rights of the insured (and is also subject to the carrier’s coverage defenses). Reprinted courtesy of Craig Rokuson, Traub Lieberman Mr. Rokuson may be contacted at crokuson@tlsslaw.com Read the full story... Read the court decision
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AB5, Dynamex, the ABC Standard, and their Effects on the Construction Industry

December 09, 2019 — Donald A. Velez - Smith Currie
Last year, we reported that the California Supreme Court in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903 (“Dynamex”) adopted a new, pro-employment standard (the “ABC Standard”), which presumes a worker is an employee versus an independent contractor under California wage orders and regulations. Assembly Bill 5 (“AB5”) has now been passed by the California Legislature and signed by Governor Newsom. Bill AB5 codifies the ABC Standard and brings increased costs, administrative duties, and legal risks for hiring parties on multiple fronts, including, but not limited to:

Payroll taxes;
Meals, breaks and overtime policies and enforcement and premium pay;
Benefits;
Leave and PTO policies, requirements and enforcement;
Wage order violations;
Labor Code violations and Private Attorney General Actions (“PAGA”) claims;
Unemployment insurance; and
Workers’ compensation coverage, claims, and premiums.

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Reprinted courtesy of Donald A. Velez, Smith Currie
Mr. Velez may be contacted at davelez@smithcurrie.com

Appraisal Process Analyzed

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The California Court of Appeal offered a primer in the appraisal process in reversing the trial court's confirmation of the appraisal award. Lee v. California Capital Ins. Co., 2015 Cal. App. LEXIS 530 (Cal. Ct. App. June 18, 2015). A fire damaged an apartment building owned by the insured. The fire started in unit 3 on the ground floor. The insurer argued the fire did not extend beyond unit 3. The insured claimed that the fire damaged six of the 12 apartments with fire or smoke. The insured's public adjuster submitted a claim to the insurer that exceeded $800,000. The statement of loss included costs for cleaning, asbestos abatement, reconstruction of affected apartments, and loss of rent. The public adjuster said the loss consisted of burn damage to unit 3 and some damage to the "common" walls located between the apartments on the two floors above unit 3. All of the interior rooms of five apartments other than unit 3 would need to be completely dismantled and then replaced. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Keller Group Fires Two Executives in Suspected Australia Profits Reporting Fraud

February 20, 2023 — James Leggate - Engineering News-Record
London-based geotechnical contracting giant Keller Group's profits from its Australia business unit may have been fraudulently inflated by the U.S. equivalent of as much as $20 million in today’s dollars since 2019, the company has revealed. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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A Duty to Design and Maintain Reasonably Safe Roadways Extends to All Persons. (WA)

February 25, 2014 — Natasha Khachatourians – Scheer & Zehnder LLP Liability Newsletter
Case: Lowman v. Wilbur, et al., 178 Wn.2d 165, 309 P.3d 3.87 (2013). Issue: If a passenger’s injuries are in fact caused by the placement of a utility pole too close to a roadway, can the injuries be deemed too remote for purposes of legal causation? NO. Facts: Plaintiff was a passenger in a vehicle that lost control and collided with a utility pole that was 4.47 feet from the edge of the roadway. The vehicle’s driver was under the influence of alcohol. Plaintiff sued the driver as well as the utility company and Skagit County for negligence. The trial court granted the utility company and Skagit County’s summary judgment motion, finding that the negligent placement of the utility pole was not a legal cause of plaintiff’s injuries. The issue before the Supreme Court was whether a negligently placed utility pole could be the legal cause of a resulting injury. Read the court decision
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Reprinted courtesy of Natasha Khachatourians, Scheer & Zehnder LLP
Ms. Khachatourians may be contacted at natashak@scheerlaw.com

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