Fairfield Connecticut Building Expert Directory

Contractor Covered for Voluntary Remediation Efforts in Completed Homes

October 10, 2013 — Tred Eyerly — Insurance Law Hawaii
The Texas Supreme Court held that a home builder was covered for the voluntary removal and replacement of a defective insulation product it had installed in hundreds of homes. Lennar Corp. v. Market Am. Ins. Co., 2013 Tex. LEXIS 597 (Tex. Sup. Ct. Aug. 23, 2013). Lennar built homes using an exterior insulation and finish system (EIFS). It was subsequently determined that EIFS trapped water inside homes with wood-frame walls, causing rot and structural damage, mildew and mold, and termite infestation. Lennar decided to contact all its homeowners and offer to remove the EIFS and replace it with conventional stucco. Lennar notified its insurers that it would seek indemnification for the costs. The insurers refused to participate in Lennar's proactive efforts, preferring to wait and respond to homeowners' claims one by one. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Panthers Withdraw City, County Deal Over Abandoned Facility

September 19, 2022 — The Associated Press (Jeffrey Collins) - Bloomberg
Columbia, S.C. (AP) -- Carolina Panthers owner David Tepper’s real estate company wants to revoke a bankruptcy settlement it negotiated with the city and county where its abandoned South Carolina practice facility was supposed to be built because it says the governments are making exorbitant and unreasonable demands. GT Real Estate Holdings had offered $21 million to York County. It suggested giving the proceeds from selling part of its site in Rock Hill so the city would get at least $20 million. But the county and city have filed separate lawsuits and court papers. York County said it is entitled to more than $80 million in part to get back money from a special penny sales tax that was supposed to expand a road but Tepper’s company used for the proposed practice facility. Read the court decision
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Reprinted courtesy of Bloomberg

Alleged Defective Water Pump Leads to 900K in Damages

January 13, 2014 — CDJ STAFF
A lawsuit filed by Liberty Mutual on behalf of their client, Turner Construction, alleges that defects in the installation of a water pump lead to $900,000 in costs for a building in New Jersey. They are seeking compensation from Triangle Plumbing. Law360 quotes the complaint, which states “as a result of Triangle’s failure to provide a complete, functional plumbing system at the property as required by the subcontract agreement, Triangle has breached the specific scope of work provision of the subcontract agreement.” Read the court decision
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Insurance Law Alert: Incorporation of Defective Work Does Not Result in Covered Property Damage in California Construction Claims

June 18, 2014 — Valerie A. Moore and Chris Kendrick - Haight Brown & Bonesteel LLP
In Regional Steel Corp. v. Liberty Surplus Ins. (No. B245961, filed 5/16/14, ord. pub. 6/13/14), a California appeals court held that the insured's use of the wrong steel seismic reinforcement hooks in construction of a mixed-use building was not an occurrence, and did not result in covered property damage. Regional Steel was the structural steel subcontractor on a 14-story mixed-use project in North Hollywood, California. Regional supplied plans which were approved by the developer and its structural engineers for installation of steel reinforcements, including seismic reinforcement hooks, to be encased in concrete. During construction, City inspectors determined that the plans called for the wrong hooks, necessitating repairs to finished portions of the work and delays in further construction. This ultimately resulted in a lawsuit between the developer, Regional Steel, the concrete subcontractor, the structural engineer and a quality assurance inspector. The project was insured under a wrap policy issued to the developer, with Regional named as an additional insured. The court rejected an argument that the wrap endorsement fundamentally changed the insurance, and the issue boiled down to whether incorporation of the wrong hooks, the damage caused by tearing out concrete to replace the hooks, or the resulting loss of use, triggered coverage. Liberty asserted that no damage to property was alleged and the purely economic losses caused by the need to reopen the poured concrete to correct the tie hook problem did not constitute "property damage" within the meaning of the policy. Liberty further posited that the tie hook problem did not constitute an “occurrence” within the meaning of the policy because the alleged damage was not caused by an accident. Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Chris Kendrick, Haight Brown & Bonesteel LLP Read the court decision
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Consolidated Case With Covered and Uncovered Allegations Triggers Duty to Defend

May 20, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Illinois Court of Appeals held that the insurer had a duty to defend a consolidated case that included one complaint alleging intentional acts and another complaint alleging negligence. Farmers Auto. Ins. Ass'n v. Neumann, 2015 Il. App. 140026 (Ill. Ct. App. March 24, 2015, reh'g denied March 24, 2015). Neumann allegedly hit Bitner with his automobile as Bitner, a police offier, was directing traffic. Bitner sued Neumann, alleging intentional assault and intentional battery. Farmers rejected Neumann's tender because the policy did not cover intentional acts. Farmers filed for a declaratory judgment. In his answer, Neumann included an affidavit stating that he did not intend to strike or cause bodily harm to Bitner. The trial court granted the motion to strike the affidavit. 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

Warren Renews Criticism of Private Equity’s Role in Housing

February 01, 2022 — Akayla Gardner - Bloomberg
Senator Elizabeth Warren is doubling down on her criticism of private equity’s involvement in the U.S. housing market as the nation grapples with an affordable-housing shortage. In letters sent Thursday, the Massachusetts Democrat asked housing firms Progress Residential LLC, Invitation Homes Inc. and American Homes 4 Rent about recent rent hikes, plans to acquire more properties and the number of evictions in recent years. Warren and other Democrats have scrutinized Wall Street’s role in the housing market since the 2008 financial crisis. During the pandemic, lawmakers have been on high alert for violations of eviction moratoriums and unfair treatment as Americans struggled financially to stay on their feet. Warren also expressed concern about automated homebuying practices, which allow companies to buy up properties using algorithms. Bloomberg reported that last year Zillow offloaded thousands of homes to institutional investors. Read the court decision
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Reprinted courtesy of Akayla Gardner, Bloomberg

Pollution Exclusion Found Ambiguous

May 23, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022). Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to have CGL coverage naming Omega as an additional insured. Accu-fab purchased a $1 million primer policy from Colony Insurance Company and a $5 million excess policy issued by Evanston Insurance Company. Accu-fab performed welding and other fabrication work on a large metal storage tank used for the temporary storage of stickwater, which was a liquid composed of water, fish oil, and fish solids. An explosion occurred at the Omega plant while Accu-fab workers were welding and grinding on a large metal tank that was used for the temporary storage of stickwater. One of Accu-fab's workers , Jerry Lee Tayler, was killed, another was seriously injured, and still others suffered less serous injuries. 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

Nonparty Discovery in California Arbitration: How to Get What You Want

January 08, 2019 — Leilani L. Jones - Payne & Fears
Opting for arbitration requires attorneys to balance efficiency and procedural protections. The implications of arbitration are something clients certainly have to carefully consider both when drafting arbitration provisions, and after initiating a demand. While arbitration can in many respects streamline the civil discovery process, one of the largest roadblocks for cases in California arbitrations is “streamlining” discovery from nonparties. This article explores the challenges presented by third party discovery in arbitration, and proposes strategies for obtaining such discovery efficiently and expeditiously. Read the court decision
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Reprinted courtesy of Leilani L. Jones, Payne & Fears
Ms. Jones may be contacted at llj@paynefears.com

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