Fairfield Connecticut Building Expert Directory

Coverage for Faulty Workmanship Denied

June 29, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The court found there was no coverage for the insureds' alleged negligent failure to construct a building. Evanston Ins. Co. v. DCM Contracting, 2020 U.S. Dist. LEXIS 63977 (N.D. Ga. Feb. 28, 2020). Turning Point Church sued DCM Contracting for faulty workmanship on a construction project. Turning Point sent a demand letter to DCM on August 18, 2017 and filed suit in December. Evanston did not receive notice of Turning Point's claims and the lawsuit until May 15, 2018. Evanston filed suit for a declaratory judgment and moved for summary judgment. The court first considered the late notice. The policy required notice "as soon as practicable" DCM was also required to provide copies of demands, notices, or legal papers to Evanston. Here, DCM did not give notice to Evanston until nine months after receipt of Turning Point's demand. A phone communication with DCM's agent between August 2017 and May 2018 was insufficient. DCM provided no documents, including the summons and complaint, to the agent. DCM waited five months to forward the underlying lawsuit. This was a breach of the policy. 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

Fires, Hurricanes, Dangerous Heat: The US Is Reeling From a String of Disasters

August 22, 2023 — Will Wade & Brian K Sullivan - Bloomberg
From deadly wildfires to floods, the US is reeling from several natural disasters in quick succession — and more are likely on the way. Torrential rains from the remnants of Hurricane Hilary are inundating parts of California. Two tropical storms, one post-tropical cyclone and two potential storms are lined up in the Atlantic Ocean. Almost 100 wildfires are burning across 15 states as officials in Hawaii investigate the deadliest US blaze in more than a century. And record heat will test Midwest power grids this week. All of this, all at once, is a lot — and it’s not just bad luck. Climate change has triggered heat waves around the world, leading to ideal fire conditions in forests across the Northwest and Canada. It’s also boosting Atlantic water temperatures, which can intensify storms as the peak of hurricane season approaches. And unusually warm Pacific Ocean waters fueled Hilary, which in turn will contribute to scorching heat in the Midwest. Read the court decision
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Reprinted courtesy of Bloomberg

Angela Cooner Appointed Vice-Chair of Arizona’s Inaugural Board of Legal Specialization Construction Defect Law Advisory Commission

June 20, 2022 — Angela Cooner - Lewis Brisbois
Phoenix, Ariz. (May 17, 2022) - Phoenix Partner Angela Cooner has been appointed as the vice-chair of the State Bar of Arizona’s inaugural Board of Legal Specialization Construction Defect Law Advisory Commission. The commission was created pursuant to the Arizona Supreme Court’s recent administrative order recognizing construction defect law as a new area of specialization. The commission will, among other things, create the application, examination, and interview process that Arizona attorneys will be required to complete to earn the construction defect law specialized certification. Ms. Cooner will serve a two-year term that will end on January 31, 2024. Read the court decision
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Reprinted courtesy of Angela Cooner, Lewis Brisbois
Ms. Cooner may be contacted at Angela.Cooner@lewisbrisbois.com

Building on New Risks: Construction in the Age of Greening

February 20, 2023 — Blanca Berruguete - Construction Executive
Fire and explosions remain the No. 1 cause of construction and engineering insurance claims, accounting for 27% of the value of insurance claims over the last five years, according to industry claims data analysis conducted by global commercial insurer AGCS. Natural catastrophes, such as hurricanes or floods, account for almost a fifth of claims by value (19%), followed by defective products (10%). Faulty workmanship or maintenance (8%) and machinery breakdown (7%) round out the top five causes of construction and engineering losses, according to the value of claims. The Risks and Benefits of Greening The analysis was conducted on 22,705 insurance claims made worldwide between January 2017 and December 2021. The claims were worth approximately $13.9 billion in value and include the share of other insurers as well as AGCS. But if there is an impression that the risks remain in stasis, that is not the case. Reprinted courtesy of Blanca Berruguete, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Toronto Skyscraper With $1.2 Billion of Debt Has Been Put in Receivership

November 16, 2023 — Ari Altstedter - Bloomberg
A landmark condominium project in one of Toronto’s ritziest neighborhoods has been put into receivership after construction delays and cost overruns. Construction of the 85-story tower will be taken over by a court-appointed receiver after its owners, developer Sam Mizrahi and investor Jenny Coco, defaulted on part of the project’s nearly C$1.7 billion in debt ($1.2 billion), according to a Wednesday order from the Ontario Superior Court of Justice. Two funds run by South Korea-based IGIS Asset Management Co. applied for the receivership. Another IGIS fund will extend at least another C$315 million to continue work on the project, court documents said. Read the court decision
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Reprinted courtesy of Ari Altstedter, Bloomberg

Eight Ways to Protect a Construction Company Before a Claim Is Filed

November 04, 2019 — Mary Bacon - Construction Executive
Claims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers. TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED

Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.

Reprinted courtesy of Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Bacon may be contacted at mbacon@spencerfane.com

Chesapeake Bay Water Quality Is Still in Trouble, Two Major Reviews Say

November 07, 2022 — Pam McFarland - Engineering News-Record
Two separate assessments of the health of the Chesapeake Bay indicate that most jurisdictions within its watershed are not on track to meet target goals to cut nitrogen and phosphorus discharge levels by 2025. But new plans and programs put in place in 2022 could improve the restoration trajectory, according to the U.S. Environmental Protection Agency. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... 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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