Fairfield Connecticut Building Expert Directory

Stay of Coverage Case Appropriate While Court Determines Arbitrability of Dispute

April 22, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit vacated a discovery order issued by the district court and remanded the case for issuance of a stay while the arbitrability of the coverage dispute was reviewed. Cameron Parish Recreation #6 v. Indian Harbor Ins. Co., et al., 2024 U.S. App. LEXIS 3804 (5th Cir. Feb. 19, 2024). The plaintiffs purchased surplus lines polices from various insurance companies to provide coverage for commercial properties. The policies included an arbitration provision for resolving any disputes. After plaintiffs were denied coverage for damage to their properties from Hurricane Laura, they sued the insurers. The insurers filed motions to compel arbitration and to stay the case. The district court refused the stay and ordered limited discovery into arbitrability. The insurers appealed. 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

Claim for Collapse After Demolition of Building Fails

January 09, 2023 — Tred R. Eyerly - Insurance Law Hawaii
After several city citations and the eventual demolition of the insureds' apartment building, their claim for coverage based on collapse was unsuccessful. Barker v. AmGuard Ins. Co., 2022 U.S. Dist. LEXIS 202069 (W.D. Mo. Nov. 7, 2022). The plaintiffs purchased a three-story multi-family apartment building on March 9, 2009. Prior to the purchase, steel beams were installed in the basement along the east and south walls. By 2013, the south and east walls were leaning. On March 13, 2017, the city building inspector observed "the foundation failing in several areas and deflection in the south wall." The building inspector issued a citation for a pubic nuisance in violation of the City Code. This was followed by several more citations against plaintiffs. The plaintiffs' inspector reported the basement walls were experiencing "extensive lateral deflections primarily due to the inadequate design of the basement walls." Plaintiffs understood the issues to be "cosmetic.'" They had no work done on the property besides aesthetic upgrades. After additional citations were entered, the building was ordered demolished. 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

"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties

February 23, 2016 — David A. Harris & Jesse M. Sullivan – Haight Brown & Bonesteel LLP
Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work. General Contractors pass the withholding of retention down to the subcontractors. Thus, if the subcontractor fails to complete its work, or fails to correct deficiencies, the Owner/General Contractor can use the retention to pay the costs of completing or correcting the subcontractor’s work. The contractor must release any retention it receives from the owner within ten days unless a “good faith dispute exists between the direct contractor and the subcontractor.” (Civil Code section 8814.) Where there is a good faith dispute, the contractor “may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” (Civil Code section 8814(c).) If the contractor wrongfully withholds retention, it must not only pay the retention but must also pay the subcontractor “a penalty of 2 percent per month on the amount wrongfully withheld.” The contractor must also pay the subcontractor’s costs and reasonable attorney’s fees incurred in collecting the retention. (Civil Code section 8818.) Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP and Jesse M. Sullivan, Haight Brown & Bonesteel LLP Mr. Harris may be contacted at dharris@hbblaw.com Mr. Sullivan may be contacted at jsullivan@hbblaw.com Read the court decision
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Rio Olympic Infrastructure Costs of $2.3 Billion Are Set to Rise

January 31, 2014 — Tariq Panja and David Biller – Bloomberg
Brazilian authorities announced 5.6 billion reais ($2.3 billion) will be spent on infrastructure directly related to the 2016 Rio de Janeiro Olympic Games and those costs will rise as projects are added. Yesterday’s announcement comes months behind schedule, and after pressure on public bodies to reveal exactly how much it will cost for Rio to be the first South American city to host the quadrennial showpiece. Delays and cost overruns to several projects related to this year’s soccer World Cup have sharpened the focus on the Olympics. “We are committed to being on schedule,” Sports Minister Aldo Rebelo said at a press conference in Rio to announce the spending plans. “It is the first time we have a consortium of three levels of government. It is in an effort to ensure the success and execution of all the commitments to deliver the Olympics in Rio in 2016.” Mr. Panja may be contacted at tpanja@bloomberg.net and Mr. Biller may be contacted at dbiller1@bloomberg.net. Read the court decision
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Reprinted courtesy of Tariq Panja and David Biller, Bloomberg

Crews Tested By Rocky Ground, Utility Challenges

September 03, 2019 — Louise Poirier - Engineering News-Record
Problematic utility locations and difficult ground conditions required the project team to develop innovative solutions on the University of Texas at San Antonio’s $95-million Science and Engineering Building. Reprinted courtesy of Louise Poirier, Engineering News-Record Ms. Poirier may be contacted at poirierl@enr.com Read the court decision
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A Bill for an Act Concerning Workers’ Compensation – 2014 Edition

January 13, 2014 — W. Berkeley Mann, Esq. - Higgins, Hopkins, McLain & Roswell, LLC
Workers’ compensation (“WC”) costs are a significant portion of the labor costs experienced by construction companies. These costs have typically risen over time due to the “experience modification factor.” This term means the amortized cost of past claims recovered through future premiums charged by an insurer to an employer. As a company’s claims go up in both number of claims and total expense of claims over time, the experience modifier increases as a multiplier of the base WC premium. As with other general medical costs, the question is not whether the cost of claims with a medical component will go up, but rather the rate at which they will increase from year to year. It is with these facts of life in mind that it is reported that the Colorado legislature will take up a bill concerning WC benefits in the 2014 session. This bill, if passed, will have the likely effect of dramatically increasing the cost of WC claims to the construction industry - along with all other Colorado employers. The draft bill has three distinct changes for the current law, each of which serves to change the delicate balance of rights and obligations of employers and employees under existing law. Read the court decision
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Reprinted courtesy of W. Berkeley Mann, Esq.
W. Berkeley Mann, Esq. can be contacted at mann@hhmrlaw.com

Data Is Critical for the Future of Construction

April 19, 2022 — Raghi Iyengar - Construction Executive
According to a recent study, real-time visibility and access to critical data and insights are vital for rapid construction decision-making. Notably, inaccurate and missing data cost the industry almost $2 trillion in 2020. Even more surprising, construction companies often don’t know if they’ve made or lost money until the job is complete or if they’re on schedule until they start falling behind. These findings portray an important reality for the industry: Construction needs to establish and optimize data strategies to ensure it has the visibility control, and transparency needed to improve efficiency and productivity on projects. Luckily, while historically slow to change, the construction industry has begun to adopt technologies that help firms improve efficiency and productivity on projects. With this technology, contractors can establish and optimize data strategies to ensure they have visibility, control and transparency. Embracing data is a game changer as the industry continues to expand. In fact, the report from Autodesk and FMI cited above found that the construction companies using data technologies and strategies saw fewer project delays, less rework and fewer change orders. Reprinted courtesy of Raghi Iyengar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Liability Coverage for Claims of Publishing Secret Data Does Not Require Access by Others

April 20, 2016 — Sean Mahoney and Laura Schmidt – White and Williams LLP
On April 11, 2016, the United States Court of Appeals for the Fourth Circuit concluded that general liability insurance covered claims alleging that an insured was negligent in securing private medical records, even where there was no evidence that any third parties had actually viewed the underlying plaintiffs’ medical records. This “unpublished” decision was issued in Travelers Indemnity Company of America v. Portal Healthcare Solutions, LLC less than three weeks after the court heard oral argument. Portal Healthcare accordingly stands for the proposition that “publication” within the meaning of the standard commercial general liability coverage for “personal and advertising injury” only requires that claims against an insured allege that confidential information was made available to the public, without allegations that any third party actually accessed it, to trigger the insurer’s duty to defend. Reprinted courtesy of Sean Mahoney, White & Williams LLP and Laura Schmidt, White & Williams LLP Mr. Mahoney may be contacted at mahoneys@whiteandwilliams.com Ms. Schmidt may be contacted at schmidtl@whiteandwilliams.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES