Fairfield Connecticut Building Expert Directory

Does “Faulty Workmanship” Constitute An Occurrence Under Your CGL Policy?

January 08, 2024 — David Adelstein - Florida Construction Legal Updates
There is nothing more scintillating than an insurance coverage dispute, right? Well, some folks would agree with this sentiment. Others would spit out their morning coffee in disagreement. Regardless of where you fall in the spectrum, they are always important because maintaining insurance is a NECESSARY part of business, particularly in the construction industry. The ideal is to have insurance that covers risks you are assuming in the performance of your work. Sometimes, insurance coverage disputes provide valuable insight, even in disputes outside of Florida. Recently, the Western District of Kentucky in Westfield Insurance Co. v. Kentuckiana Commercial Concrete, LLC, 2023 WL 8650791 (W.D.KY 2023), involved such a dispute. While different than how Florida would treat the same issue, it’s still noteworthy because it sheds light into how other jurisdictions determine whether “faulty workmanship” constitutes an “occurrence” under a commercial general liability (CGL) policy. 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

Florida Condos Bet on Americans Making 50% Down Payments

October 29, 2014 — John Gittelsohn – Bloomberg
Jorge Perez crashed along with the real estate market, then regained his crown as Florida’s “Condo King” by building new projects with 50 percent deposits from foreign buyers. Now, for his next development, he’s looking to wealthy Americans. In December, he’ll begin marketing the Auberge Beach Residences and Spa Fort Lauderdale, a $500 million oceanfront project 35 miles (56 kilometers) north of Miami. He expects as many as two-thirds of the buyers to come from the U.S. or Canada. All future owners must pay hefty deposits to finance construction by Perez’s Related Group, Fortune International Group and Fairwinds Group in a partnership that the companies plan to announce tomorrow. “The U.S. buyers have made up an increasing share of luxury beachfront condominiums and, like our foreign buyers, they have shown little resistance to larger deposits,” Perez said in an e-mail. “Most feel that if they can’t put a 50 percent down payment, they probably should not be buying.” Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net

Tenants Who Negligently Cause Fires in Florida Beware: You May Be Liable to the Landlord’s Insurer

May 13, 2019 — Rahul Gogineni - The Subrogation Strategist
In Zurich Am. Ins. Co. v. Puccini, LLC, 2019 Fla. App. LEXIS 1487, 44 Fla. L. Weekly D 383, Florida’s Third District Court of Appeals considered whether a landlord’s carrier, Zurich American Insurance Company (Zurich), was precluded from pursuing a subrogation claim against the landlord’s tenant, Puccini, LLC (Puccini), for fire-related damages. After the fire, Zurich paid its insured, Lincoln-Drexel Waserstein, Ltd. (Lincoln), over $2.1 million. Zurich then proceeded with an action against Puccini. Puccini filed for summary judgment arguing that it was an additional insured under the Zurich policy. The trial court agreed with Puccini and dismissed the action. Zurich then appealed the case to Florida’s Third District Court of Appeals. Finding that the lease contemplated both liability on the part of the tenant and indemnification in favor of the landlord, the court held that the tenant was not an implied co-insured under Zurich’s policy. Thus, the court allowed Zurich’s subrogation action. The Sutton Doctrine Extension of the Anti-Subrogation Rule In the United States, most states have adopted an anti-subrogation rule either by statute or through common law. Under an anti-subrogation rule, an insurer may not pursue its insured for monies paid to the insured. While some states limit their anti-subrogation rule to apply only to the named insured, other states have expanded the rule to include parties listed as additional insureds, and even, in some instances, implied insureds (those parties not specifically listed, but still considered an insured under the applicable policy). Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

Colorado Defective Construction is Not Considered "Property Damage"

September 12, 2022 — Saxe Doernberger & Vita, P.C.
In the July 5, 2022, case of Indian Harbor Ins. Co. v. Houston Casualty Co., the United States District Court for Colorado addressed the issue of whether damage to defectively installed balconies is considered “property damage” under Colorado law, requiring payment by a commercial general liability policy. Facts of the Case The case stems from a construction project where a subcontractor improperly installed balconies on an apartment complex. The owner of the project secured commercial general liability (CGL) coverage through an OCIP insured by Houston Casualty Company (HHC). The OCIP insured the general contractor and subcontractors. The general contractor also purchased a subcontractor default insurance policy insured by Indian Harbor. All parties agreed that the subcontractor improperly installed portions of various balconies, including flashing, water-proof sealing, and water-resistant barriers, among other defects with the installation process. The parties also agreed that other portions of the balconies were properly installed. However, in order to repair the defects in the installations, every bit of each balcony had to be torn off and re-constructed. Read the court decision
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Reprinted courtesy of Saxe Doernberger & Vita, P.C.

Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff

September 20, 2017 — Garret Murai - California Construction Law Blog
Elon Musk . . . Eccentric engineer. Technology billionaire. And, now, litigation bad ass. Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t. One California contractor recently found this out the hard way. In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Construction Litigation Roundup: “Sudden Death”

October 17, 2023 — Daniel Lund III - Lexology
It’s not football, though. Rather, just when you thought it was safe in Louisiana to wait to file a garden-variety construction contract payment claim, an appellate court slams the door on it – applying a statute of “repose” to your claim. “Personal actions” – such as an action on contract – are generally subject in Louisiana to a 10-year “liberative prescription,” the applicable statute of limitations pursuant to Louisiana Civil Code article 3499. Like some other states, Louisiana has a statute of “repose” – imposing “peremption” rather than prescription for claims having to do with construction projects – limiting those claims (generally speaking) to five years post-completion. Like other statutes of “repose,” Louisiana Revised Statute 9:2772 provides that claims on construction projects may not be filed after five years, a duration which is not subject to interruption or extension. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

California Supreme Court Finds that When it Comes to Intentional Interference Claims, Public Works Projects are Just Different, Special Even

April 20, 2017 — Garret Murai - California Construction Law Blog
Earlier, we reported on a California Court of Appeals decision – Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc. – which held for the first time that a second-place bidder on a public works contract could sue a winning bidder who failed to pay its workers prevailing wages, under the business tort of intentional interference with prospective economic advantage. Fast forward nearly two years, several amicus briefs, and “one doghouse”* later and the California Supreme Court has . . . reversed. The Roy Allan Slurry Seal Case To catch you up, or rather, refresh your recollection . . . Between 2009 and 2012, American Asphalt South, Inc. was awarded 23 public works contracts totaling more than $14.6 million throughout Los Angeles, Orange, San Bernardino and San Diego counties. Two of the losing bidders on those projects – Roy Allan Slurry Seal, Inc. and Doug Martin Contracting, Inc. – sued American in each of these counties for intentional interference with prospective economic advantage as well as under the Unfair Practices Act (“UPA”) (Bus. & Prof. Code §§ 17000 et seq.) and the Unfair Competition Law (“UCL”) (Bus. & Prof. Code §17200). Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

IoT: Take Guessing Out of the Concrete Drying Process

February 06, 2019 — Aarni Heiskanen - AEC Business
Flooring, tiling, or painting on a concrete surface that is insufficiently dry can end up being a disaster. An experimental project recently used IoT sensors and AI to determine when it is safe to start finishing concrete surfaces. Haste and Imperfect Conditions Lead to Failure To successfully first cure and then dry concrete requires specific conditions. You need to maintain a temperature higher than 10°C and a relative humidity of greater than 80 percent in the concrete. Once the concrete is hardened, you have to make sure that it is dry enough for finishing. Typically, the relative humidity should not exceed 82 percent. Some flooring materials require a humidity of less than 75 percent for successful application. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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