FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Intricacies of Business Interruption Claim Considered

January 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Reaching into the weeds to analyze a business interruption claim, the Massachusetts Court of Appeals determined the cost of ordinary payroll could be included in the calculation of net profit or loss in determining business loss income when business is resumed quickly after a fire. Verrill Farms, LLC v. Farm Family Cas. Ins. Co., 2014 Mass. App. LEXIS 145 (Mass. App. Ct. Nov. 4, 2014). The insured suffered a fire loss at its farm store. Within two days, the business was reopened at alternate locations at reduced capacity. Within a month, the business had resumed nearly full capacity in temporary locations. No employees were laid off. This allowed the insured to maintain its business and generate income. The insured submitted a claim for loss of business income, based on its loss of net income in the year after the fire. The insurer paid a sum considerably less than the claim based upon its interpretation of what expenses could be included in a calculation of net profit or loss in order to determine loss of business income. The trial court held that the insurer did not have to pay the cost of ordinary payroll beyond the sixty-day limit, and granted summary judgment in the insurer's favor. 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

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Builder Pipeline in U.S. at Eight-Year High: Under the Hood

August 26, 2015 — Sho Chandra – Bloomberg
Here’s the takeaway from the Commerce Department’s report Tuesday in in Washington that showed sales of new homes in the U.S rebounded in July to a 507,000 annualized rate. The median forecast of 75 economists surveyed by Bloomberg projected 510,000. * Number of homes sold but not yet started climbed to a 192,000 annualized rate, the most since June 2007. * That means builders have a large pipeline of demand to fill, which will keep housing starts rising. * The number of homes under construction was the lowest since August 2014 and the number completed were the fewest since November. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

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Trial Court’s Grant of Summary Judgment On Ground Not Asserted By Moving Party Upheld

December 17, 2015 — Laura C. Williams & R. Bryan Martin – Haight Brown & Bonesteel LLP
In Marlton Recovery Partners, LLC v. County of Los Angeles, et al. (filed 11/20/15), the California Court of Appeal, Second Appellate District, affirmed summary judgment in favor of the defendants County of Los Angeles, the County Treasurer-Tax Collector and Board of Supervisors (collectively the “County”) despite the fact summary judgment was granted on grounds not raised by the County. The Court of Appeal determined that because the plaintiff could not have shown a triable issue of material fact on the ground of law relied upon by the trial court, summary judgment was proper. In the underlying case, plaintiff sought cancellation of penalties on delinquent property taxes for 26 parcels under Revenue and Taxation Code §4985.2, which allows the tax collector to cancel such penalties under certain circumstances. The County denied the request prompting plaintiff to challenge the denial on a petition for peremptory writ of mandate to the trial court. Reprinted courtesy of Laura C. Williams, Haight Brown & Bonesteel LLP and R. Bryan Martin, Haight Brown & Bonesteel LLP Ms. Williams may be contacted at lwilliams@hbblaw.com Mr. Martin may be contacted at bmartin@hbblaw.com Read the court decision
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Blog Completes Fifteenth Year

December 13, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Insurance Law Hawaii completes its fifteenth year of existence this month. We began posting in December 2007, 1656 posts ago. We strive to keep readers abreast of new developments in insurance-related cases from Hawaii and across the country. Coverage issues in the past year have again been dominated by COVID-19, business interruption, construction defect, and cyber claims. This trend will likely continue over the next year and we will do our best to track developments. Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert Mr. Eyerly may be contacted at te@hawaiilawyer.com Read the full story... Read the court decision
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Architect Plans to 3D-Print a Two-Story House

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Housing Wire, Andrey Rudenko, who succeeded in 3D-Printing a backyard castle, now plans on building a two-story home, complete with insulation, wiring and plumbing. Rudenko has a background in engineering, architecture and contracting, and has developed his own 3D printer. In an interview with 3DPrint.com (reported in Housing Wire), Rudenko said that he is “currently conducting a large scale of experiments to extend the possibilities of this new technology – printing different elements, structures, and studying and developing new techniques.” Rudenko still must find investors, obtain building permits, as well as make certain that the end result complies with certain code requirements. If he succeeds, Rudenko plans to sell DIY kits. Read the court decision
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Washington Court of Appeals Divisions Clash Over Interpretations of the Statute of Repose

August 07, 2023 — Masaki Yamada & Ryanne Mathisen - Ahlers Cressman & Sleight PLLC
The construction statute of repose under RCW 4.16.310 bars any claims arising from construction, design, or engineering of any improvement upon real property that has not accrued within six years after substantial completion or termination of services, whichever is later, even if the injury has not yet occurred. On June 20, 2023, Division One of the Washington Court of Appeals (Div. I) published its decision in Welch v. Air & Liquid Systems severely criticizing and rejecting the statute of repose reasoning contained in Maxwell v. Atlantic Richfield Co., 15 Wn. App. 2d 569, 476 P.3d 645 (2020), a Division Two (Div. II) opinion. More than a mere difference of opinion, the courts in Welch and Maxwell reached different results as to whether claims asserted against Brand Insulations, Inc. were barred by the statute of repose despite involving (i) the same procedural posture, both appeals from summary judgment decisions; (ii) the same facility, Atlantic Richfield Corporation’s (ARCO) petroleum refinery at Cherry Point in Ferndale; (iii) the same activity of installation of asbestos laden insulation on pipes; (iv) the same type of injury, mesothelioma; and (v) application of the same test set forth in Condit v. Lewis Refrigeration Co., 101 Wn.2d 106, 676 P.2d 466 (1984). Reprinted courtesy of Masaki Yamada, Ahlers Cressman & Sleight PLLC and Ryanne Mathisen, Ahlers Cressman & Sleight PLLC Mr. Yamada may be contacted at masaki.yamada@acslawyers.com Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com Read the court decision
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Allegations That COVID-19 Was Physically Present and Altered Property are Sufficient to Sustain COVID-19 Business Interruption Suit

May 24, 2021 — Michael S. Levine & Joseph T. Niczky - Hunton Insurance Recovery Blog
On Wednesday, a federal judge in Texas denied Factory Mutual’s Rule 12(c) motion for judgment on the pleadings, finding that the plaintiffs adequately alleged that the presence of COVID-19 on their property caused covered physical loss or damage in the case of Cinemark Holdings, Inc. v. Factory Mutual Insurance Co., No. 4:21-CV-00011 (E.D. Tex. May 5, 2021). This is the third COVID-19-related business interruption decision from Judge Amos Mazzant since March, but the first in favor of a policyholder. Taken together, the three decisions have two key takeaways and provide a roadmap for policyholders in all jurisdictions. First, the Cinemark decision recognizes that the alleged presence of COVID-19 viral particles that physically altered the policyholder’s property is sufficient under federal pleading standards and controlling state law. In its motion, FM relied on Judge Mazzant’s recent decision in Selery Fulfillment, Inc. v. Colony Insurance Co., No. 4:20-CV-853, 2021 WL 963742 (E.D. Tex. Mar. 15, 2021), which dismissed a lawsuit alleging that the policyholder’s losses were caused by government orders that closed its business, rather than from the actual presence of the virus on its property. The Court held that government orders alone do not constitute physical loss or damage, and declined to rule on whether the physical presence of the virus does. Judge Mazzant reached the same conclusion weeks later in Aggie Investments, L.L.C. v. Continental Casualty Co., No. 4:21-CV-0013, 2021 WL 1550479 (E.D. Tex. Apr. 20, 2021). Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Joseph T. Niczky, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Niczky may be contacted at jniczky@HuntonAK.com Read the court decision
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Georgia Court of Appeals Upholds Denial of Coverage Because Insurance Broker Lacked Agency to Accept Premium Payment

December 07, 2020 — Lawrence J. Bracken II, Michael S. Levine & Rachel E. Hudgins - Hunton Insurance Recovery Blog
In American Reliable Insurance Company v. Lancaster, the Georgia Court of Appeals reversed the denial of a property insurer’s summary judgment motion concerning the insurer’s denial of a fire loss claim. The basis of the denial was that the policyholders had failed to pay the policy premium. The policyholders, Charlie and Wanda Lancaster, claimed that they had paid their policy premiums for several years to their insurance agent, Macie Yawn. In October 2014, American Reliable mailed a renewal notice to the Lancasters notifying them that premium payments had to be made directly to the insurer. After it did not receive payment from the Lancasters, American Reliable sent them a cancellation notice in December 2014, again notifying them that payments be made directly to the insurer. The Lancasters denied having received either notice from American Reliable, but the record included a receipt for certificate of mailing. After the Lancaster’s home burned down in 2015, American Reliable denied coverage on the grounds that the policy had been cancelled for nonpayment of premium. In the subsequent coverage action, the trial court denied American Reliable’s motion for summary judgment, ruling that a factual issue existed as to the actual and apparent agency of the insurance agent, Yawn. On appeal, the Court of Appeals found that the trial court erred in deciding that there was a factual issue concerning Yawn’s agency. Specifically, the Court of Appeals ruled that the record showed American Reliable had terminated Yawn’s agency to accept policy premiums, and that the Lancaster’s received notice of that termination in the renewal and cancellation notices. In addition to determining that Yawn was not an actual agent, the Court held that Yawn did not have apparent agency, because the notices sent to the Lancasters stated that the premium payment was to be paid to American Reliable, not to the agent. Reprinted courtesy of Lawrence J. Bracken II, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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