Fairfield Connecticut Building Expert Directory

The Trend in the Economic Loss Rule in Construction Defect Litigation

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Heather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.” Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.” Read the court decision
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California Court Forces Insurer to Play Ball in COVID-19 Insurance Coverage Suit

December 13, 2022 — Latosha M. Ellis & Yosef Itkin - Hunton Insurance Recovery Blog
One of the threshold issues in COVID-19 insurance coverage cases that have been brought across the country is whether the policyholder’s allegations meet the applicable pleading standard in alleging that the virus caused physical loss or damage. In many cases, the courts have gotten it wrong, effectively holding policyholders to a higher standard than required. But recently, a California federal judge righted those wrongs by acknowledging the correct pleading standard in that case, which is whether the allegations state a plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). The Court, here, correctly recognized that the policyholder, the Los Angeles Lakers, met that pleading standard when it alleged that the COVID-19 virus can cause physical loss or damage by physically altering property. In its complaint, the Los Angeles Lakers alleged that the virus physically altered its property by changing its chemical and physical property conditions, creating viral vectors that required remedial measures before the property was safe again. Los Angeles Lakers, Inc. v. Fed. Ins. Co., 591 F. Supp. 3d 672 (C.D. Cal. 2022), adhered to on reconsideration, 2022 WL 16571193 (C.D. Cal. Oct. 26, 2022). The Court agreed that these allegations by the Lakers adequately pled physical alteration to support a claim for property damage. The insurer requested reconsideration of the decision, and the Court emphatically affirmed its prior decision, explaining its rationale as follows: The Court lacks the scientific expertise necessary to conclude, based solely on the allegations in the FAC . . . that it is not plausible for the Lakers’ property to have been physically altered by the Virus, which the Lakers adequately alleged. Consequently, the Court, in the March 17 Order, concluded that the Lakers’ theory was plausible. Whether the Lakers can actually prove its theory will be determined at summary judgment or trial. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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The New Industrial Revolution: Rebuilding America and the World

March 04, 2019 — Drew Buechley - Construction Executive
Conventional thinking says the Industrial Revolution ended more than a century ago. Yet one crucial industry has lagged behind revolutionary changes stemming from the transition from hand production methods to the use of machines and rise of factory systems. In the 1800s, these transitions caused an influx of people to urban centers, where the majority of those changes were centered. The outcome? Not enough capital or time to build adequate housing, pushing low-income newcomers into overcrowded, unsanitary slums, resulting in increased death rates and endemic levels of contagious diseases. While other industries mechanized and surged, construction remained stagnant in comparison to demand. Fast forward to the 21st century where the U.S .benefits from a developed and industrialized world. Monumental gains in technology, combined with regulations designed to protect communities from polluted waters and disease, have drastically improved quality of life. Yet one similarity remains – the industry still struggles to build enough housing for a growing population. Urban centers have been neglected for decades while the rate of urbanization increases annually. Communities still have no access to clean drinking water and many suffer from crumbling infrastructure. Home ownership is out of reach for an entire generation, with metropolitan areas unable to keep up with demand for housing. At the very center of this lies the staid construction industry. Lagging behind the rest of the industrialized world in terms of technology advances, it has severely impacted the ability to maintain a livable nation and world. Reprinted courtesy of Drew Buechley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Texas Court Requires Insurer to Defend GC Despite Breach of Contract Exclusion

December 19, 2018 — Ashley L. Cooper - Saxe Doernberger & Vita, P.C.
In Mt. Hawley Insurance Co. v. Slay Engineering, et al.,1 a Texas federal court ruled in favor of a general contractor, finding that its insurer had a duty to defend it in a construction defect case filed by the owner. The decision adds more clarity to the interpretation of the subcontractor exception to the “Damage to Your Work” exclusion as well as the Breach of Contract exclusion, which has been the subject of several cases coming out of Texas over the past decade. Read the court decision
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Reprinted courtesy of Ashley L. Cooper, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com

New Utah & Colorado Homebuilder Announced: Jack Fisher Homes

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
Henry Walker Homes announced the creation of Jack Fisher Homes, “a new venture that will continue their tradition of homebuilding excellence in Northern Utah, Southern Utah and Colorado,” according to a press release on PR Web. “Colin Wright, Owen Fisher, Chad Bessinger and Steve Sandholtz founded Jack Fisher Homes to focus on areas of their proven expertise in real estate, including residential land development and homebuilding, commercial assets in multifamily development and seniors’ housing,” PR Web reported. Jack Fisher has “1,300 single-family residential units in its pipeline” and “anticipates closing more than 230 homes in the remainder of 2014 with sales expected to exceed $70 million.” The homebuilder expects those numbers to double in 2015. “All of the original elements that made Henry Walker great are incorporated and improved upon with Jack Fisher Homes,” Wright said, according to the press release. “The influx of new capital, our years of experience, and the improved real estate landscape have us very excited about the future of Jack Fisher Homes.” Read the court decision
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San Diego: Compromise Reached in Fee Increases for Affordable Housing

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
A San Diego City Council committee has forwarded a revised plan to increase affordable housing in the city, which reduces the linkage fees increases, reported the U-T San Diego. The first proposal would have increased linkage fees by five times, while this new plan doubles current fees. The Times of San Diego reported that “[t]he fee had been halved in 1996 as an economic stimulus and was supposed to be reviewed annually, but wasn't.” However, Andrea Tevlin, the city of San Diego’s Independent Budget Analyst, estimated that “costs on developers would have jumped 400 percent to more than 700 percent, depending on the type of project.” The new proposal also contains exemptions for “developers of manufacturing facilities, warehouses and nonprofit hospitals from paying any fees at all,” according to U-T San Diego. “Developers of research and science-related projects would still have to pay fees, but they would be exempt from the proposed increase.” However, not everyone is satisfied by the compromise. “While the November 2013 proposal went too far, this new proposal doesn’t go far enough,” Tevlin told U-T San Diego. The vote had been deadlocked, 2-2, but will be forwarded to the main council because Republican Lori Zapf, committee chair, could break the tie. The new plan “created jointly by the San Diego Housing Commission and a group of business leaders called the Jobs Coalition, would increase the linkage fees’ annual yield from $2.2 million to an estimated $3.7 million and allow construction of 37 affordable housing units per year instead of 22,” U-T San Diego reported. Read the full story, U-T San Diego... Read the full story, Times of San Diego... Read the court decision
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CDJ’s #4 Topic of the Year: KB Home Greater Los Angeles, Inc. v. The Superior Court of Los Angeles County

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
KB Home, another case that clarified California’s SB 800, was analyzed by Amy Kuo Alexander of Gordon & Rees LLP in her article on “New Developments Related to SB 800.” Read the full story... KB Home was also discussed by Cvitanovic and Stefco of Haight Brown & Bonesteel in their article on Burch. Read the court decision
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Potential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims

April 27, 2020 — David M. McLain – Colorado Construction Litigation
On January 27th, Senator Robert Rodriguez introduced SB 20-138 into the Colorado Legislature. The bill has been assigned to the Senate Judiciary Committee and has not yet been scheduled for its first hearing in that committee. In short, Senate Bill 20-138, if enacted, would:

Extend Colorado’s statute of repose for construction defects from 6+2 years to 10+2 years;
Require tolling of the statute of repose until the claimant discovers not only the physical manifestation of a construction defect, but also its cause; and
Permit statutory and equitable tolling of the statute of repose.

Colorado’s statute of repose for construction defect claims are codified at C.R.S. § 13-80-104. In 1986, the Colorado Legislature set the statute of repose period at 6+2 years. For the last 34 years, Colorado’s statute of repose for owners’ claims against construction professionals has been substantially the same, to wit:

(1) (a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.

(2) In case any such cause of action arises during the fifth or sixth year after substantial completion of the improvement to real property, said action shall be brought within two years after the date upon which said cause of action arises.

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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES