Fairfield Connecticut Building Expert Directory

Indirect Benefit Does Not Support Unjust Enrichment Claim Against Prime Contractor

July 05, 2023 — David Adelstein - Florida Construction Legal Updates
A recent case out of the Northern District of Florida dealing with a federal project provides an interesting discussion about a sub-subcontractor asserting a claim against the prime contractor for unjust enrichment. The prime contractor argued any benefit to it was indirect which does not support an unjust enrichment claim as the actual direct benefit flowed to the owner of the project – the government. The federal district court agreed and dismissed the sub-subcontractor’s unjust enrichment claim against the prime contractor because an indirect benefit does NOT support an equitable unjust enrichment claim. See U.S.A f/u/b/o Eco Universe Contracting, LLC v. Calvary Construction Group, Inc., 2023 WL 3884642 (N.D.Fla. 2023). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

War-Torn Ukraine Looks to Europe’s Green Plans for Reconstruction Ideas

July 18, 2022 — Laura Millan Lombrana - Bloomberg
Ukrainian officials and architects are already thinking about how to rebuild cities torn by the Russian invasion in a way that is also respectful to the environment and helps fight climate change. Mariupol city hall officials have started to assess the damage caused by Russian shelling as a first step to rebuild the city once the war is over, Deputy Mayor Sergei Orlov told an audience in Brussels at the New European Bauhaus festival, running through Saturday in several European cities. A coalition of Ukrainian and international experts in urban planning, heritage, energy and the circular economy are working toward the same goal. “We will reconstruct Ukraine, we have to do that and we will do that,” European Commission President Ursula von der Leyen said at the festival. “It’s not only in our interest, it’s our moral obligation to do that — but when we are reconstructing Ukraine, let’s do it the right way, let’s do it in the spirit of the New European Bauhaus.” Read the court decision
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Reprinted courtesy of Laura Millan Lombrana, Bloomberg

Granting of Lodestar Multiplier in Coverage Case Affirmed

November 14, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The trial court's use of a multiplier in awarding fees to the insured was affirmed by the Florida Court of Appeal. Citizens Prop. Ins. Corp. v. Laguerre, 2018 Fla. App. LEXIS 11794 (Fla. Ct. App. Aug. 22, 2018). Following Hurricane Wilma, the insured made a claim for wind damage to her insurer, Citizens. Citizens investigated the claim and paid $8,400.77. The insured then demanded an appraisal and submitted an appraisal estimate in the amount of $60,256.79. There was no response to the appraisal demand. 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

North Carolina Supreme Court Addresses “Trigger of Coverage,” Allocation and Exhaustion-Related Issues Arising Out of Benzene-Related Claims

January 04, 2023 — White and Williams LLP
On December 16, 2022, the North Carolina Supreme Court decided Radiator Specialty Co. v. Arrowood Indem. Co., 2022 N.C. LEXIS 1122 (Dec. 16, 2022), in which it addressed coverage issues arising out of claims by individuals alleging injury from exposure to benzene contained in the insured’s products. Affirming in part and reversing in part the intermediate appellate court’s decision, the court held: (1) an “exposure trigger” applied; (2) defense and indemnity costs were subject to pro-rata allocation; and (3) vertical exhaustion applied to the duty to defend under certain umbrella policies. Two justices concurred in part and dissented in part. I. Background In Radiator Specialty, the insured (RSC) was named in hundreds of underlying suits arising from individual plaintiffs’ alleged exposure to benzene contained in its products. Between 1971 and 2012, RSC was insured under primary, umbrella and excess liability policies issued by various insurers. In 2013, RSC sued the insurers in North Carolina state court, seeking coverage for approximately $45 million in defense and indemnity costs incurred for the underlying claims. In 2016, the trial court decided motions for summary judgment on a number of coverage issues. Following a bench trial in 2018, the trial court entered final judgment, which required the insurers to reimburse $1.8 million of RSC’s past costs. The rulings were appealed to the North Carolina Court of Appeals, which issued a decision in 2020. In 2021, the North Carolina Supreme Court granted RSC’s and certain insurers’ petitions for discretionary review of the Court of Appeals’ decision. Read the court decision
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Reprinted courtesy of White and Williams LLP

No Conflict in Successive Representation of a Closely-Held Company and Its Insiders Where Insiders Already Possess Company’s Confidential Information

August 02, 2017 — Renata L. Hoddinott, David W. Evans, & Howard M. Garfield - Haight Brown & Bonesteel LLP
In Beachcomber Management Crystal Cove, LLC v. Superior Court (Salisbury) (No. G054078, filed June 28, 2017; pub. and mod. order July 28, 2017), the Fourth Appellate District granted a writ of mandate vacating a trial court’s order disqualifying defendants’ counsel. In Beachcomber, plaintiffs filed a shareholder derivative action against defendants Beachcomber Management and Douglas Cavanaugh (collectively, “defendants”) alleging defendants abused their position and mismanaged nominal defendant and similarly named Beachcomber at Crystal Cove (“Beachcomber”). Between 2009 and 2011, defendants and Beachcomber had each hired Kohut & Kohut LLP (“Kohut”) to represent them on at least four different occasions. In the underlying action, defendants hired Kohut again to represent them, while Beachcomber hired another law firm to represent it. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Renata L. Hoddinott, David W. Evans and Howard M. Garfield Read the court decision
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Court Affirms Summary Adjudication of Bad Faith Claim Where Expert Opinions Raised a Genuine Dispute

July 06, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In 501 East 51st Street etc. v. Kookmin Best Ins. Co., Ltd. (No. B293605, filed 4/2/20, ordered pub. 4/16/20), a California appeals court affirmed summary adjudication and dismissal of a bad faith claim based on the genuine dispute doctrine. 501 East 51st Street Long-Beach-10, LLC (501) was the owner of a 10-unit apartment complex, insured by Kookmin Best. In 2017, an underground water main alongside the building burst which, according to 501, caused the building to move and crack. 501 made a claim and supplied a geotechnical report finding cracks in the foundation walls, cracks in the stucco and significant floor deformation and tilting near the water leak. The engineer’s opinion concluded that that “existing building distress was substantially contributed to by the water main break. The water introduced to the soil medium appears to have triggered differential foundation movement causing the stress features to develop.” Kookmin retained its own engineers to investigate, who returned an opinion that the leak had exacerbated long-term pre-existing settlement which would continue. Under the policy, damage to the building caused by earth movement and settlement were excluded, but water damage resulting from an “accidental discharge” of water was covered. Kookmin then obtained an opinion from coverage counsel, who opined that only damage allocable to the water leak would be covered. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Delaware District Court Finds CGL Insurer Owes Condo Builder a Duty to Defend Faulty Workmanship Claims — Based on the Subcontractor Exception to the Your Work Exclusion

October 04, 2021 — Anthony L. Miscioscia & Laura Rossi - White and Williams
On September 7, 2021, in one of the few decisions addressing the scope of coverage for faulty workmanship under Delaware law, the Delaware District Court denied an insurer’s motion seeking a declaration that it neither needed to defend nor indemnify an insured-builder under a commercial general liability policy. In this declaratory judgment action, Pennsylvania National Mutual Casualty Insurance Company v. Zonko Builders, the insurer argued that the ongoing underlying action failed to properly plead an “occurrence” in a case alleging damages to a condominium caused by faulty workmanship involving subcontractors.* Zonko Builders (Zonko) served as the general contractor, supervising subcontractors. The Condominium Association sued Zonko for damages allegedly resulting from design and construction deficiencies. The motion was opposed by the Condominium Association, which cross-moved for partial judgment on the pleadings. In AE-Newark Associates, L.P. v. CNA Insurance Companies, 2001 Del. Super. LEXIS 370 (Del. Super. Ct. Oct. 2, 2001), the Delaware Superior Court found that an insured was entitled to coverage for damages arising from a faulty roof system installed by a subcontractor on behalf of the insured general contractor. Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Laura Rossi, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Rossi may be contacted at rossil@whiteandwilliams.com Read the court decision
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Home Prices Rose in Fewer U.S. Markets in Fourth Quarter

February 12, 2014 — Prashant Gopal – Bloomberg
Prices for single-family homes rose in 73 percent of U.S. cities in the fourth quarter, fewer than in the previous three months, as surging values in the past two years started to reduce affordability. The median transaction price for an existing home climbed from a year earlier in 119 of 164 metropolitan areas measured, the National Association of Realtors said in a report today. In the third quarter, 88 percent of markets had increases. While tight inventories and improving employment are bolstering the housing recovery, home-price gains are poised to decelerate as an increase in mortgage rates from record lows cuts into affordability. Values have been rising faster than incomes, particularly in the West, the Realtors group said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

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