FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Housing-Related Spending Made Up Significant Portion of GDP in Fourth Quarter 2013

March 31, 2014 — Beverley BevenFlorez-CDJ STAFF
On the Insights Blog of CoreLogic, Molly Boesel reported that “housing-related spending made up 17.4 percent of GDP in [the] fourth quarter [of] 2013,” according to the latest release by the Bureau of Economic Analysis. The numbers published by the Bureau of Economic Analysis demonstrated “upward revisions in overall GDP and housing-related expenditures from the second estimate released in February 2014.” Boesel explained how they determined the housing-related spending number: “To calculate the portion of domestic spending that is related to housing, we look at three expenditures from the release: residential investment (the construction of new single- and multi-family houses), spending on housing services (rent, owner’s equivalent rent and utilities) and spending on furnishings and durable goods. Together, these expenditures made up 17.4 percent of total real GDP in the fourth quarter of 2013, the same as this time a year ago and down from the high of 20.6 percent in the third quarter of 2005.” Read the court decision
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Houston Home Sales Fall for the First Time in Six Months

March 19, 2015 — John Gittelsohn and Prashant Gopal - Bloomberg
(Bloomberg) -- Houston home sales fell in February for the first time in six months, a sign lower oil prices are spooking buyers. Sales of single-family houses dropped 5.8 percent from a year earlier to 4,521 homes, the Houston Association of Realtors reported Wednesday. Purchases fell among residences costing less than $150,000 because of tight supply, and among properties selling for more than $500,000 as wealthier buyers paused amid economic uncertainty, said James Gaines, research economist at Texas A&M University’s real estate center. “They don’t know what the real impact of falling oil prices is,” Gaines said in a telephone interview from College Station, Texas. “We’re living in the twilight of uncertainty.” Reprinted courtesy of John Gittelsohn, Bloomberg and Prashant Gopal, Bloomberg Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Let’s Give ‘Em Sutton to Talk About: Tennessee Court Enforces Sutton Doctrine

July 24, 2023 — Gus Sara - The Subrogation Strategist
In Patton v Pearson, No. M2022-00708-COA-RC-CV, 2023 Tenn. App. LEXIS 231, the Court of Appeals of Tennessee (Court of Appeals) considered whether the lower court erred in dismissing an insurance carrier’s lawsuit against its insured’s tenant for damages sustained in a fire. While the lawsuit was filed in the name of the landlord (i.e., the insured), discovery revealed that the lawsuit was actually a subrogation lawsuit, brought by the landlord’s insurance carrier. The lower court granted the tenant’s motion for summary judgment based on the Sutton Doctrine, holding that the tenant was an implied co-insured under the landlord’s policy. The Court of Appeals affirmed, finding that although the lease agreement did not reference insurance, the Sutton Doctrine applied, which barred the landlord’s carrier from subrogating against the tenant. In 2016, Anita Pearson (Ms. Pearson) signed a lease agreement to rent a home in Nashville, Tennessee, which was owned by John and Melody Patton (collectively, the Pattons). The lease stated that the Pattons were not responsible for the tenant’s personal property. The lease also stated that the tenant would be responsible for any damage caused by her negligence or misuse of the home. The lease was silent as to which party would maintain property casualty insurance and regarding implied co-insured status on any policy. Ms. Pearson purchased renter’s insurance for her personal property. The Pattons secured a property casualty insurance policy for the home. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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Cybersecurity “Flash” Warning for Construction and Manufacturing Businesses

April 05, 2021 — Jeffrey M. Dennis - Newmeyer Dillion
On March 23, 2021, the FBI’s Cyber Division issued a “Flash” warning for several business sectors, including industrial, commercial, manufacturing and construction businesses. The FBI is warning that a strain of ransomware, known as “Mamba,” has been used to weaponize a widely-used encryption software known as DiskCryptor. Mamba works through the open-source DiskCryptor program to encrypt a company’s operating system and demand ransom payment. This new ransomware attack is a threat to any business which employs DiskCryptor, specifically manufacturing and construction companies. What Should I Do? If your company utilizes DiskCryptor, the FBI suggests a number of recommendations to mitigate and ward off any ransomware attack. Most of these suggestions fall within the guidelines of proper cyber hygiene, and include (but are not limited to) the following:

• Regularly back up data, as well as copies of data;
• Segment your network;
• Request administrator credentials to install software;

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Reprinted courtesy of Jeffrey M. Dennis, Newmeyer Dillion
Mr. Dennis may be contacted at jeff.dennis@ndlf.com

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Vegas Hi-Rise Not Earthquake Safe

July 12, 2011 — CDJ STAFF

If an earthquake hit Las Vegas, the Harmon Tower would not withstand it. A report from Weidlinger Associates told MGM Resorts that “in a code-level earthquake, using either the permitted or current code specified loads, it is likely that critical structural members in the tower will fail and become incapable of supporting gravity loads, leading to a partial or complete collapse of the tower.” The inspection came at the request of county officials, according to the article in Forbes.



According to Ronald Lynn, directory of the building division in the county’s development services division, “these deficiencies, in their current state, make the building uninhabitable.” The county is concerned about risks to adjacent buildings.



MGM Resorts is currently in litigation, separate from the stability issues, with Perini Corp., the builders of Harmon Tower.



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Other Colorado Cities Looking to Mirror Lakewood’s Construction Defect Ordinance

October 22, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Post reported that some Colorado metro communities “say they are ready to take a hard look at modifying Colorado's law on builder defects, which they blame for hampering new condominium construction amid the buildout of the region's 122-mile commuter-rail system.” Lone Tree has “scheduled a study session for Tuesday to discuss drafting its own construction-defects ordinance while a city councilmember in Englewood has put in a request that the city take up the topic.” According to the Denver Post, “Brighton, Broomfield and Centennial…also want to give the issue more attention.” Read the court decision
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Condo Developers Buy in Washington despite Construction Defect Litigation

October 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Marc Stiles writing for Puget Sound Business Journal stated that “[t]he belief that contractors have been scared off by the legal liabilities that come with [condo] projects doesn't seem to hold water.” He interviewed Suzi Morris, of Lowe Enterprises, who plans on building a new condo tower in Seattle this November. Morris stated that they didn’t have any problems getting construction bids for the 24-story tower. According to the Puget Sound Business Journal, “The development team is trying to head off construction defect claims by planning and documenting with photos their work.” Stiles did admit that an unnamed “source in Seattle who consults on condo projects knows of two large general contracting companies that won't bid on condo projects because of” potential construction defect litigation. Read the court decision
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Insurer Has Duty to Defend Sub-Contractor

July 25, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Interpreting Connecticut law, the federal district court had that the insured sub-contractor was entitled to a defense. County Wide Mech. Servs. LLC v. Regent Ins. Co., 2022 U.S. Dist. LEXIS 86726 (D. Conn. May 13, 2022). The underlying plaintiff, The Saybrook at Haddam, entered a contract with PAC Group to serve as general contractor for construction of an addition to The Saybrook's facility. PAC Group sub-contracted with County Wide Mechanical Services to install the HVAC system. The HVAC system was put into service on November 14, 2014. In October 2019, The Saybrook filed the underlying action against PAC group, County Wide, and others. The underlying complaint alleged that there had been at least seven "critical failures" of the HVAC system. As a result, The Seabrook had to replace multiple compressors and several circuit boards, valves, and other components. Further, the entire system had to be replaced. The underlying complaint alleged breach of contract against PAC Group and County Wide. In addition to the alleged breach of contract between The Saybrook and County Wide, the Saybrook also alleged it was a third-party beneficiary of PAC Group's contract with County Wide regarding installation of the HVAC system. PAC Group cross-claimed against County Wide, asserting one count of contractual indemnification and one count of breach of contract under the PAC Group's contract with County Wide. 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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