FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Delaware Supreme Court Choice of Law Ruling Vacates a $13.7 Million Verdict Against Travelers

August 07, 2018 — Gregory Capps & Zachery Roth - White and Williams LLP
On July 16, 2018, the Delaware Supreme Court held in Travelers Indemnity Company v. CNH Industrial America, LLC, No. 420, 2017 (Del. Jul. 16, 2018), that a court’s choice of law inquiry in an insurance coverage dispute should focus on the contacts most relevant to the insurance contract rather than the location of the underlying claims. In Travelers, CNH Industrial America, LLC (CNH), sought coverage for asbestos liabilities associated with J.I. Case, Inc., a subsidiary it had acquired, under policies issued to J.I. Case and its former parent company, Tenneco, Inc. The issue before the Delaware Supreme Court was whether the anti-assignment clause in three Travelers policies issued to Tenneco, Inc. precluded the assignment of the policies to CNH. The validity of the assignment turned on which state’s law governed the dispute. (Under Wisconsin law, the parties agreed that the assignment was valid, while under Texas law, the parties agreed the assignment was invalid.) Reprinted courtesy of Gregory Capps, White and Williams LLP and Zachery Roth, White and Williams LLP Mr. Capps may be contacted at cappsg@whiteandwilliams.com Mr. Roth may be contacted at rothz@whiteandwilliams.com Read the court decision
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Chicago Aldermen Tell Casino Bidders: This Is a Union Town

June 13, 2022 — Shruti Singh - Bloomberg
Several Chicago aldermen on Monday sent gaming companies that are bidding on building the city’s first casino a message: this is a union town. During a special casino committee of the city council hearing on Monday, the aldermen expressed concerns that the three bidders -- Bally’s Corp., Hard Rock International and Rush Street Gaming -- that are seeking to construct and operate a gaming and entertainment complex don’t have a deal with local labor groups. Chicago Chief Financial Officer Jennie Bennett said during the hearing that a deal with labor was part of the requirements laid out in the city’s request for proposals. None of the three bidders have committed to labor standards, and moving forward without an agreement on items such as a living wage “is a slap in the face,” Robert Reiter Jr., president of the Chicago Federation of Labor, said during the public testimony portion of the meeting. The federation represents 300 affiliated unions and their half a million members. Read the court decision
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Reprinted courtesy of Shruti Singh, Bloomberg

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Tenth Circuit Finds Insurer Must Defend Unintentional Faulty Workmanship

December 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Applying Colorado law, the Tenth Circuit found a duty to defend construction defect claims where the faulty workmanship was unintentional. Greystone Const. Inc. v. National Fire & Marine Ins. Co., 2011 U.S. App. LEXIS 22053 (10th Cir. Nov. 1, 2011). A prior post [here] discussed the Tenth Circuit’s certified question to the Colorado Supreme Court in this matter, a request that was rejected by the Colorado court.

In two underlying cases, Greystone was sued by the homeowner for damage caused to the foundation by soil expansion. In both cases, the actual construction was performed by subcontractors. Further, in neither case was the damage intended or anticipated. Nevertheless, National Union refused to defend, contending property damage resulting from faulty construction was not an occurrence.

Relying on a Colorado Court of Appeals case, General Security Indemn. Co. of Arizona v. Mountain States Mut. Cas. Co., 205 P.3d 529 (Colo. App. 2009), the district court granted summary judgment to National Union.

On appeal, the Tenth Circuit first considered whether Colorado legislation enacted to overturn General Security could be applied retroactively. The statute, section 13-20-808, provided courts "shall presume that the work of a construction professional that results in property damage, including damage to the work itself or other work, is an accident unless the property damage is intended and expected by the insured."

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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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Hawaii Federal District Court Rejects Bad Faith Claim

November 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court for the district of Hawaii rejected the insured's argument that the insurer acted in bad faith because the insured had to contribute to a settlement of the underlying case. Hanover Ins. Co. v. Anova Food, LLC, 2016 U.S. Dist. LEXIS 146114 (D. Haw. Oct. 21, 2016). After a prior round of briefing, the court determined that Hanover had a duty to defend, but rejected Anova's claim for pre-tender fees. 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

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Oregon Court of Appeals Rules That Negligent Construction (Construction Defect) Claims Are Subject to a Two-Year Statute of Limitations

October 20, 2016 — John P. Ahlers – Ahlers & Cressman PLLC
Statutes of limitations are distinct from statutes of repose. There is a lot of confusion between the two. Generally, a statute of limitations is a law which sets the maximum period of time which one can wait before filing a lawsuit, depending on the type of case or claim. The periods vary by state and by type of claim. Most states also employ a “discovery rule,” which provides that the statute of limitations does not “accrue” until such time as the plaintiff knew or should have reasonably known that the injury or property damage has occurred. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman, PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

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Montana Court Finds Duty to Defend over Construction Defect Allegation

February 14, 2013 — CDJ STAFF
The U.S. District Court for Montana recently ruled on a case with underlying construction defect issues. Brian Margolies discussed Lukes v. Mid-Continent on the blog run by his firm, Traub Lieverman Straus & Shrewsberry LLP. In the construction defect case, the homeowner “alleged that the siding warped and pulled away from the house, which allowed for water intrusion and resulting exterior and interior damage.” Further, there were claims that “the insured or its subcontractor failed to install proper flashing, which also allowed for water intrusion.” The insured was Bernie Rubio, who had a general liability policy from Mid-Continent. Mid-Continent disclaimed coverage, citing sections of the business risk exclusions. The court did not find the clauses ambiguous, but concluded that they didn’t apply to the facts of the case. While the court concluded that Mid-Continent had a duty to defend, they did not determine if there was a duty to indemnify. Read the court decision
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Top 10 Insurance Cases of 2023

January 29, 2024 — Jeffrey J. Vita & Michael A. Amato - Saxe Doernberger & Vita, P.C.
Federal and state courts tackled many interesting insurance-related issues this past year. Perhaps no state had a more impactful year than Illinois, which held that construction defects could constitute an occurrence, that a LEG 3 “extension” attempting to preclude coverage for faulty or defective workmanship was ambiguous as a matter of law (applying Illinois law), and that ostensibly prohibitive “catch-all exclusions” can render policy language ambiguous in favor of coverage. Other courts wrestled with procedural inquiries, such as the legal duty of a broker in providing notice to an insurer or the ability of an insured to recoup its attorneys’ fees in pursuing a coverage action against its insurer. These are merely a sampling of the impactful insurance decisions rendered in 2023. Each year, we endeavor to identify cases of general interest to our clients and the broader insurance community. Specifically, we attempt to identify trends, cases of first impression, cases illustrating conflicts among the courts, or cases dealing with emerging issues. We now proudly unveil the top 10 most influential coverage decisions of 2023 and look ahead to a few cases to watch as 2024 unfolds. Reprinted courtesy of Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and Michael A. Amato, Saxe Doernberger & Vita, P.C. Mr. Vita may be contacted at JVita@sdvlaw.com Mr. Amato may be contacted at MAmato@sdvlaw.com Read the court decision
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4 Ways to Mitigate Construction Disputes

March 20, 2023 — Bill Shaughnessy - ConsensusDocs
Resolving construction disputes in litigation (court or arbitration) can be expensive and may drag on for years. Most disputes could have been avoided, or at least mitigated, had the parties (both owners and contractors) identified contract risks during negotiations and been more proactive in communicating the risks during execution of the work. This article highlights four practical risk management approaches that help all parties focus on their mutual interest in close coordination and clear communication at the beginning of the project as well as throughout performance:

• Identifying and allocating risks;
• Accurate scheduling;
• Clear project documentation and communication; and
• Real-time dispute resolution.

The intent of these techniques is not to shift legal obligations or risks. Rather, the intent is to keep project personnel and project management for all the participants focused on communicating and working together, including responsibly confronting real problems to avoid or mitigate their impact. Allocating risks, scheduling, project documentation and communication, and real-time dispute resolution are independently relevant on a bilateral basis between the owner, designer, and the various contractors. These approaches and their diligent execution by the parties during construction contribute far more to a successful project than anything lawyers and claims consultants can contribute in after-the-fact legal proceedings. Read the court decision
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Reprinted courtesy of Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com

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