Fairfield Connecticut Building Expert Directory

Hawaii Supreme Court Says Aloha to Insurers Trying to Recoup Defense Costs From Policyholders

January 02, 2024 — Lara Degenhart Cassidy & Yosef Itkin - Hunton Insurance Recovery Blog
The Hawaii Supreme Court emphatically rejected insurer efforts to seek reimbursement of defense costs absent a provision in the policy providing for such reimbursement in St. Paul Fire & Marine Insurance Company v. Bodell Construction Company, No. SCCQ-22-0000658, 2023 WL 7517083, (Haw. Nov. 14, 2023). The state high court’s well-reasoned decision rests on bedrock law regarding insurance policy construction and application, follows the nationwide trend of courts compelling insurers to satisfy their contractual obligations in full, and should carry great weight as other jurisdictions continue to debate the same issue. In Bodell, the Hawaii Supreme Court joined the swelling ranks of courts recognizing that an insurer may not use a reservation of rights to create the extra-contractual “right” to recoup already paid defense costs for a claim on which the insurer ultimately owes no coverage. See, e.g., Am. & Foreign Ins. Co. v. Jerry’s Sport Ctr., Inc., 2 A.3d 526 (Pa. 2010). Other jurisdictions, such as California, will permit an insurer to seek reimbursement from a policyholder for defense costs incurred in defending claims later determined to be uncovered. See Buss v. Superior Court, 16 Cal.4th 35 (1997) (holding insurers have a right to reimbursement of defense costs incurred for noncovered claims). Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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The Unthinkable Has Happened. How Should Contractors Respond?

May 11, 2020 — Bruce Orr - AEC Business
Any construction veteran expects the economy to contract and expand. However, the global pandemic presents contractors with a challenge unlike any in recent memory. How should they respond in an environment of such uncertainty? For some perspective, I chatted with Dr. John Killingsworth, a construction management professor at Colorado State University who has conducted extensive research on how contractors can weather economic downturns. BRUCE ORR: John, let’s say you’re in IT or are a c-suite executive at a contracting firm. This event has occurred. What are some of the questions you should be asking right now? JOHN KILLINGSWORTH: For starters, we have to acknowledge that the uncertainties are so tremendous that many contractors have no choice but to be reactive in the short term. They’re literally not sure whether particular job sites will be open or closed tomorrow or whether they’ll go to work next week. They’re also looking at predictions—from highly qualified statisticians, public health officials and others—that are just all over the map due to the limited nature of the data we have at hand. Read the court decision
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Reprinted courtesy of Bruce Orr, AEC Business
Mr. Orr may be contacted at bruce@pronovos.com

Connecticut Federal District Court Again Finds "Collapse" Provisions Ambiguous

March 22, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Federal District Court for the District of Connecticut has issued several decisions of late finding coverage for collapse despite the building not being reduced to rubble. The latest decision in this series is Metsack v. Liberty Mutual Fire Ins. Co., 2017 U.S. App. LEXIS 24062 (D. Conn. Feb. 21, 2017). The Metsack's property was insured by Allstate under policies issued from June 27, 1991 to September 9, 2009. From September 2009 to present, Liberty Mutual issued property policies to the insureds. Mr. Metsack built the insureds' home in 1992. The concrete basement walls used concrete supplied by JJ Mottes Company. 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

Louisiana 13th in List of Defective Bridges

November 27, 2013 — CDJ STAFF
About 1,800 bridges in the state of Louisiana have been rendered structurally deficient. According to a report by WAFB, that means “at least one of the three key parts of a bridge has a major defect.” Although the bridges need repair, they are not yet classified as unsafe, which would lead to the Louisiana Department of Transportation and Development closing the bridges. Over the last five years, the state has spent a billion dollars on repairing, maintaining, and replacing bridges, but the number keeps growing. The DOTD would not release a list of compromised bridges in the state, citing legal concerns. Read the court decision
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No Coverage for Repairs Made Before Suit Filed

August 22, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After a hurricane damaged the building the insured was constructing, there was no coverage under the CGL policy for repairs the insured made in the absence of a suit being filed. Planet Construction J2911 LLC. v. Gemini Ins. Co., 2022 U.S. Dist. LEXIS 105468 (W.D. La. June 13, 2022). Planet Construction was a general contractor hired to build a fitness club. On August 27, 2020, Hurricane Laura struck the area. After the storm, a pipe in the sprinkler system broke, allegedly due to faulty materials and workmanship by a subcontractor, S&S Sprinkler. Planet Construction sought coverage under its policy with Gemini as well as under S&S's policy with Zurich. Both insurers denied coverage and Planet Construction filed suit. 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

General Release of Contractor Upheld Despite Knowledge of Construction Defects

February 27, 2019 — Garret Murai - California Construction Law Blog
Ah, the elusive Lepus Cornutus, commonly known as the Jackalope. Rarely seen, we may have one in SI 59 LLC v. Variel Warner Ventures, LLC, Court of Appeals for the Second District, Case No. B285086 (November 15, 2018), an interesting case involving a developer, a contractor, a general release, and Civil Code section 1688. SI 59 LLC v. Variel Warner Ventures, LLC In 2005, Variel Warner Ventures, LLC (Variel Warner) entered into a construction contract with Verdugo Management & Investment, Inc. (Verdugo) to construct improvements at an 85 unit apartment complex. Under the terms of the contract, Verdugo agreed to construction the improvements in a good and workmanlike manner in strict compliance with all drawings and specifications and to comply with all laws. It didn’t. The work was defectively flashed, counterflashed, and waterproofed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

Reroof Blamed for $10 Million in Damage

November 06, 2013 — CDJ STAFF
A renovation of the city hall in Bay City, Michigan went wrong when roof repairs lead to fire and flooding of the historic building. Bay City has sued Gregory Construction and Mihm Enterprises, who earlier had been awarded a $1.5 million contract to reroof the building. The cost of repairing the building is expected to exceed the city’s insurance limit of $10 million. The fire that damaged the building is alleged to have started when a roofer allegedly used a DeWalt grinder in attempt to remove some bolts. Under the contract with the city, the contractor was not going to use grinders, due to the risk of fire. The suit alleges that further water damage was caused, beyond the damage due to the firefighting, due to the contractor failing to “secure a section of the roof which was part of the Roofing Project with a tarp or other water-resistant covering.” The contractors dispute the claims made by Bay City, with Gregory Construction describing them as “untrue and contrary to the facts.” Gregory Construction also claims that their obligations were delegated to Mihn Enterprises. Mihn Enterprises disputes this and states that they do not “owe a duty to the Plaintiffs; as a result their negligence claim is unenforceable as a matter of law.” Read the court decision
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Charges in Kansas Water Park Death

March 28, 2018 — David Suggs - CDJ STAFF
Caleb Schwab, a 10-year old boy was killed by decapitation on a water slide at a Kansas City water park, Schlitterbahn in 2016. Thirteen other people had suffered injuries on the ride prior to Caleb’s death ranging in severity from broken toes to concussions. Schlitterbahn employees have since claimed that park officials covered up past occurrences of water slide injuries. Three people have been indicted in this case according to a CNN report by Marlena Baldacci, Sheena Jones and Hollie Silverman. Jeffrey Henry, the co-owner of the Schlitterbahn water park, Tyler Austin Miles, the park’s former director of operations and John Schooley. Charges include second-degree murder, involuntary manslaughter, aggravated battery and aggravated child endangerment. Caleb suffered a fatal injury when the raft that he and the two women who were riding with him became airborne and contacted the netting attached overhead. Investigators have found maintenance issues and ride design flaws that violate safety standards leading to lack of prevention of rafts becoming airborne during the ride. Caleb’s family will receive nearly $20 million in the settlement. Caleb’s father Scott, released a statement about placing full trust in the Attorney General Derek Schmidt who is presiding over the investigation and indictments. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES