Fairfield Connecticut Building Expert Directory

D&O Insurer Must Cover Mortgage Broker’s $15 Million Settlement of Alleged False Claims Act Violations

November 15, 2022 — Michael S. Levine, Geoffrey B. Fehling & Matthew J. Revis - Hunton Insurance Recovery Blog
A Delaware court recently granted summary judgment to a mortgage broker targeted in a federal government investigation for alleged False Claims Act violations, holding that the company’s directors and officers liability (“D&O”) insurer was required to indemnify more than $15 million in settlement costs with the U.S. Department of Justice. Guaranteed Rate, Inc. v. ACE American Insurance Company, No. N20C-04-268 MMJ CCLD (Del. Super. Ct. Sept. 6, 2022). We previously reported on the policyholder’s earlier victory in this case, in which the court held that a Civil Investigative Demand (“CID”) from federal authorities triggered the insurer’s obligation to pay defense costs under the D&O policy. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matthew J. Revis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Revis may be contacted at mrevis@HuntonAK.com Read the court decision
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Manhattan’s Property Boom Pushes Landlords to Sell Early

August 26, 2015 — Sarah Mulholland – Bloomberg
Manhattan property owners are cashing out ahead of schedule. With New York real estate values and rents surging, owners of commercial properties acquired as recently as a year ago are already seeking buyers. In the case of one Midtown site, the developer scrapped construction plans to sell an empty plot of land. There’s so much buyer demand that in some situations it’s more opportune for landlords to sell rather than follow through on plans for redevelopment or filling buildings with new tenants. A record $29.4 billion of Manhattan property deals were completed in the first half of 2015, according to brokerage Jones Lang LaSalle Inc., part of a five-year real estate rally that’s pushed prices to new highs in big U.S. cities. Read the court decision
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Reprinted courtesy of Sarah Mulholland, Bloomberg

Google Advances Green Goal With AES Deal for Carbon-Free Power

May 17, 2021 — Mark Chediak - Bloomberg
Google’s moving forward with its goal of becoming carbon-free by the end of the decade after AES Corp. agreed to supply the tech giant with renewable energy to power its data centers in Virginia. AES, an international electricity company and power-plant developer, said the deal will result in the construction of 500 megawatts of solar, wind, small-scale hydroelectric and battery storage projects and supply will begin later this year, according to a statement Tuesday. AES and third-party developers will own the facilities. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg

Is Modular Construction Destined to Fail?

March 11, 2024 — Aarni Heiskanen - AEC Business
The construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months. Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall? Three Contributing Factors Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Navigating the Construction Burrito: OCIP Policies in California’s Construction Defect Cases

November 16, 2023 — Alexa Stephenson & Ivette Kincaid - Kahana Feld
In the early 2000’s, Owner-Controlled Insurance Programs (OCIP) or WRAPS, were traditionally used in large commercial projects of over $50 million in construction costs. As construction defect lawsuits became more prevalent, subcontractors found themselves unable to meet the insurance requirements of their contracts with developers and general contractors because they could not find insurance companies that were willing to insure the risk. This presented a problem for developers and general contractors and left them with no option but to look into new insurance products that would insure them and all subcontractors who worked on the project. OCIPs became in some instances the only insurance option for developers, general contractors, and subcontractors to build single-family or multi-family projects in California and other western states. OCIPS or WRAPS, often likened to the layers of a savory burrito, offer both enticing benefits and potential pitfalls. Just as a burrito’s ingredients can harmonize or clash, OCIP policies can shape the outcome of legal battles, impacting contractors, developers, and insurers alike. Pros – Savoring the OCIP Burrito: 1. Wrapped Protection: Much like a well-folded burrito envelops its contents, OCIP policies offer comprehensive coverage for construction projects. Developers, general contractors, and subcontractors find comfort in knowing that their liability risks are bundled into a single policy, ensuring all enrolled parties have coverage in the event of a claim. Reprinted courtesy of Alexa Stephenson, Kahana Feld and Ivette Kincaid, Kahana Feld Ms. Stephenson may be contacted at astephenson@kahanafeld.com Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Read the court decision
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David M. McLain, Esq. to Speak at the 2014 CLM Claims College

August 13, 2014 — David M. McLain, Esq. – Colorado Construction Litigation
David McLain will be a speaker at the School of Construction. The Claims College will be held from September 7-10 in Philadelphia, Pennsylvania. Mr. McLain is a founding member of Higgins, Hopkins,McLain & Roswell, LLC, a firm which specializes in construction law and construction litigation throughout Colorado. Mr. McLain received his undergraduate degree from Colorado State University, graduating cum laude, and his law degree from the University of Denver, College of Law. Mr. McLain completed the Claims and Litigation Management Alliance Litigation Management Institute, earning the designation from that organization as a Certified Litigation Management Professional. He has a general civil litigation practice with an emphasis on the defense of complex construction lawsuits on behalf of developers and general contractors. As a result of the experience gained by defending some of Colorado’s largest residential construction defect lawsuits, developers, general contractors, and subcontractors seek out Mr. McLain to consult on risk avoidance and risk management strategies. Currently among his clients are several of the state’s largest home builders, regional and custom builders, and numerous insurance carriers. Mr. McLain is an AV® Preeminent™ Peer Review Rated attorney by Martindale-Hubbell and is a regular speaker at local, regional, and national seminars regarding construction defect litigation in Colorado. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Nevada HOA Criminal Investigation Moving Slowly

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Six years have passed since the FBI started investigating “allegations of the sweeping scheme to take over valley homeowners associations” in Nevada, according to Jeff German writing for the Las Vegas Review-Journal, however, “the public still doesn’t have the full story of how the scheme unfolded.” Defendants who plead guilty are still awaiting sentencing and no trial has been set for “former construction company boss Leon Benzer, the accused mastermind of the scheme” despite that he and ten others have already been indicted. The trial had been set for March, however, defense lawyers stated “they were overwhelmed by the massive amount of evidence and won’t be prepared for trial until well into 2015.” Benzer, Nancy Quon (late construction defect attorney), and others allegedly “funneled more than $8 million through secret bank accounts to land the lucrative legal and construction defect contracts from the homeowners associations,” according to the Las Vegas Review-Journal. Quon committed suicide in 2012, and therefore was never charged in the case. Read the court decision
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Colorado Senate Committee Approves Construction Defect Bill

March 19, 2015 — Jesse Howard Witt – Acerbic Witt
Late last night, the Colorado Senate Business, Labor, and Technology Committee voted to refer SB 15-177 to the committee of the whole. The vote followed nearly seven hours of testimony from those in favor of construction defect legislation and those opposed. As I have previously discussed, the bill sponsors have argued that their measure will encourage the construction of more affordable housing by giving builders de facto immunity for claims of defective workmanship and property damage in common interest communities. The bill achieves this by establishing difficult voting and disclosure requirements for homeowner associations and requiring costly, private arbitration of any disputes that can overcome the procedural hurdles. During the recent hearing, proponents echoed these statements and testified that insulating homebuilders from claims would lower home prices and rents by increasing the supply of cheaply-built condominiums. Opponents questioned whether the bill contained any provisions that would actually help the affordable housing market. They also argued that it was improper for the legislature to shift the cost of fixing construction defects onto those homeowners who can least afford to pay for necessary repairs. Read the court decision
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Reprinted courtesy of Jesse Howard Witt, The Witt Law Firm
Mr. Witt welcomes comments at www.acerbicwitt.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES