FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Cherokee Nation Wins Summary Judgment in COVID-19 Business Interruption Claim

February 01, 2021 — Sergio F. Oehninger, Geoffrey B. Fehling & Matt Revis - Hunton Insurance Recovery Blog
In a resounding victory for policyholders, an Oklahoma state court granted partial summary judgment for the Cherokee Nation in its COVID-19 business interruption claim. The Cherokee Nation is seeking coverage for losses caused by the pandemic—specifically, the inability to use numerous tribal businesses and services for their intended purpose. Based on the “all risks” nature of the policy and the fortuitous nature of its loss, the Cherokee Nation sought a partial summary judgment ruling that the policies afford business interruption coverage for COVID-19-related losses. The policy provided coverage for “all risk of direct physical loss or damage,” which the Cherokee Nation contended was triggered when the property was “rendered unusable for its intended purpose.” In support of this view, and consistent with established insurance policy interpretation principles, such as providing meaning to every term and reading the policy as a whole, the Cherokee Nation argued that a distinction must exist between “physical loss” and “physical damage.” This distinction demands an interpretation supporting the “intended purpose” reading of the policy language. Thus, the physical presence of COVID-19 depriving the Cherokee Nation of the use of covered property for its intended purpose triggered a covered loss. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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U.K. High Court COVID-19 Victory for Policyholders May Set a Trend in the U.S.

November 09, 2020 — Andres Avila & Anastasiya Collins - Saxe Doernberger & Vita
On September 15, 2020, in a matter entitled The Financial Conduct Authority v. Arch & Others1, the High Court of Justice of England and Wales, the equivalent of a trial court in the U.S., issued a ruling on a COVID-19 business interruption insurance case (the “Judgment”). Significantly, the Court sided with policyholders on most key coverage issues under specific non-damage business interruption insurance coverage forms. U.S. policyholders should review whether any of their policies issued by U.K.-based carriers, which may be subject to English law and have the forms discussed below, are impacted by this favorable decision. The Financial Conduct Authority (“FCA”), the U.K. financial regulatory body, brought the case to establish liability under 21 lead representative sample policy wordings from eight insurer defendants. The case was filed on an expedited basis on June 9, 2020 under the Financial Market Test Case Scheme, which is used for claims of general importance that require authoritative court guidance. Although the Judgment is legally binding only on the carriers who were parties to the action, the FCA estimates the case could affect 700 types of policies across 60 different insurers, and 370,000 small to medium-sized enterprises policyholders (“SME”) in the U.K. While the Judgment may be appealed, it is expected to incentivize insurers to settle their claims before the outcome of an appeal is known. Reprinted courtesy of Andres Avila, Saxe Doernberger & Vita and Anastasiya Collins, Saxe Doernberger & Vita Mr. Avila may be contacted at AAvila@sdvlaw.com Ms. Collins may be contacted at ACollins@sdvlaw.com Read the court decision
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9 Positive Housing Statistics by Builder

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine presented “9 housing stats to start off spring selling season.” For instance, the rate of U.S. homeownership in the fourth quarter of 2014, according to the U.S. Census Bureau, was 63.9% and there were 728,000 housing starts in December of 2014, according to the NAHB. Furthermore, 80% of contracting firms plan to expand payrolls in 2015. Read the court decision
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Insurer Cannot Abandon Defense Agreement on Underlying Asbestos Claims Against Insured

June 12, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insurer continued to be bound by a defense agreement entered with the insured who merged with another company. Continental Ins. Co. v. Neles-Jamesbury, Inc., 2023 U.S. Dist. LEXIS 52521 (D. Mass. March 28, 2023). In 1990, Neles-Jamesbury became the sucessor by merger to the liabilities of Jamesbury Corp. and Neles, Inc. The companies were both in the business of manufacturing and selling valves. Continental issued two primary CGL policies to Neles, Inc. from 1986 to 1988. After the merger, Neles-Jamesbury was involved in numerous lawsuits that alleged bodily injury from asbestos exposure. Due to the continuing question of whether the policies created duties for Continental, the parties entered into a 2007 Cost Sharing Agreement, which served to clarify and define their respective obligations and coverage in the lawsuits. The agreement noted that Continental wanted to avoid the expense and uncertainties of litigation over defense obligations. 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

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Connecticut Supreme Court Rules Matching of Materials Decided by Appraisers

March 28, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Connecticut Supreme Court determined that an appraisal panel could resolve whether the insurer must replace undamaged materials so that they match the damaged materials. Klass v. Liberty Mut. Ins. Co., 2022 Conn. LEXIS 2 (Conn. Jan. 11, 2022). The insured reported damage to the roof of his home to Liberty Mutual. A representative from Liberty Mutual inspected and noticed a few shingles missing from the rear slope of the roof. The representative agreed that the damage was caused by wind damage, a covered loss under the policy. Liberty Mutual accepted coverage and issued an estimate to replace the rear slope of the roof. The insured's contractor inspected the roof and provided an estimate that contemplated replacement of the entire roof at nearly double the cost of Liberty Mutual's estimate. The insured requested an appraisal. Liberty Mutual responded that the insured could not invoke the appraisal process in the absence of a "competing" estimate (i.e., one that addressed the claim for which coverage was accepted). Any dispute regarding the matching of the front and rear roof slope was a question of coverage, not an issue for appraisal. 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

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No Bond, No Recovery: WA Contractors Must Comply With WA Statutory Requirements Or Risk Being Barred From Recovery If Their Client Refuses To Pay

September 18, 2018 — Joshua Lane - Ahlers Cressman & Sleight PLLC
The risk that a contractor’s client may refuse to pay the full contract balance is a day-to-day reality for every contractor. That risk – and the stress it causes in the mind of any contractor – is tempered by the knowledge that Washington statutes provide contractors with ready access to the courts to file a lawsuit and be fully compensated for the work performed. But a recent case provides a grim reminder that the same statutes that giveth court access can also taketh away. Washington’s Contractor Registration Act (“WCRA”)[1] requires every contractor engaging or offering to engage in services in Washington to register with the Department of Labor and Industries (”L&I”). In order to sue to collect compensation for work or to enforce a contract, a contractor must prove that he/she “was a duly registered contractor and held a current and valid certificate of registration at the time he or she contracted for the performance of such work or entered into such contract.”[2] In order to conclude that a contractor has substantially comply with these requirements, a court must find that: (1) The department has on file the information required by RCW 18.27.030; (2) the contractor has at all times had in force a current bond or other security as required by RCW 18.27.040; and (3) the contractor has at all times had in force current insurance as required by RCW 18.27.050.[3] Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

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Pollution Exclusion Does Not Apply To Concrete Settling Dust

November 28, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Applying Virginia law, the federal district court determined that the pollution exclusion did not bar coverage. Allied Prop. & Cas. Ins. Co. v. Zenith Aviation, Inc., 2018 U.S. Dist. LEXIS 14727 (E.D. Va. Aug. 29, 2018). Zenith Aviation, Inc. hired Abby Construction Company to install an elevator at its warehouse. A wet saw was used to cut away concrete, but Abby did not use any water with the wet saw. This created a significant amount of concrete dust to leave the warehouse. Surrounding businesses contacted the fire department because they thought the dust was smoke from a fire. The concrete dust settled inside Zenith's building, damaging airplane parts stored in the warehouse. 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

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Subcontractor Not Estopped from Enforcing Lien Not Listed In Bankruptcy Petition

March 01, 2017 — Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLP
In Stock Building Supply, Inc. v. Platte River Insurance Co.,[1] the Court of Appeals dealt with issues of judicial estoppel, bankruptcy, retroactive application of statutory lien amendments, and the full payment defense. The owner, Madison Retail-Suwanee, LLC (“Madison”) hired Cannon/Estapa General Contractors, Inc. (“Cannon”) to be the general contractor for the construction of a shopping center (“the Project”). Cannon subcontracted with Stock Building Supply (“Stock”) to supply labor, materials, and services for the Project. Cannon failed to complete the project and Madison had yet to pay Cannon the full contract price. In 2007, Stock timely filed a lien on the Project and obtained a judgment against Cannon for the amount due under the subcontract. Platte River Insurance Company (“Platte”), the surety, issued a bond to discharge Stock’s lien. Consequently, Stock pursued an action against Platte to collect the judgment in the amount of $93,865.27. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

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