Fairfield Connecticut Building Expert Directory

Contractor Definition Central to Coverage Dispute

July 22, 2024 — Stacy R. Goldscher & Tracy M. Lewis - Wood Smith Henning & Berman
How do you define the term "contractor?" In the case of California Specialty Insulation Inc. v. Allied World Surplus Lines Insurance Company, No. B324805 (2024), the court ultimately honored the reasonable expectations of the insured and ordered that the insurer defend and indemnify in an underlying suit stemming from the policy. This case involves a commercial general liability insurance policy issued by Allied World Surplus Lines Insurance Company (Allied) to California Specialty Insulation, Inc. (CSI). The central issue is whether Allied World is obligated to defend and indemnify CSI against a negligence claim stemming from a construction site accident. The dispute hinges on the interpretation of a policy exclusion for bodily injury to employees of any "contractor," a term not defined in the policy. Factual Background In 2017 Air Control Systems. Inc. (Air Control) was contracted to perform improvement work at a Los Angeles building and subsequently hired CSI to install duct insulation. In 2019, Jason Standiford, and Air Control employee, filed a negligence lawsuit against CSI, alleging injuries from a 2017 incident where a CSI employee allegedly drove a scissor lift into a ladder Standiford was on, causing him to fall. CSI requested Allied World to defend it in the Standiford lawsuit. Initially, Allied World accepted the defense, but later withdrew, citing the Contractor Exclusion in the policy. CSI filed for declaratory relief, leading to cross-motions for summary judgment. The trial court ruled in favor of CSI, finding the term contractor ambiguous and construing it in CSI's favor. Allied World appealed the decision. Reprinted courtesy of Stacy R. Goldscher, Wood Smith Henning & Berman and Tracy M. Lewis, Wood Smith Henning & Berman Ms. Goldscher may be contacted at sgoldscher@wshblaw.com Ms. Lewis may be contacted at tlewis@wshblaw.com Read the court decision
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Florida Death Toll Rises by Three, Reaching 27 as Search Resumes

July 05, 2021 — The Associated Press (Adriana Gomez Licon & Bobby Caina Calvan) - Bloomberg
Surfside, Fla. (AP) -- Rescuers searched through fresh rubble Monday after the last of the collapsed Florida condo building was demolished, which allowed crews into previously inaccessible places, including bedrooms where people were believed to be sleeping at the time of the disaster, officials said. But they faced a new challenge from thunderstorms that hit the area as Tropical Storm Elsa approached the state. Four more victims were discovered in the new pile, Miami-Dade Assistant Fire Chief Raide Jadallah told family members, raising the death toll to 28 people. Another 117 people remain unaccounted for. The demolition late Sunday was crucial to the search-and-rescue effort, officials said, and raised the prospect that crews could increase both the pace of their work and the number of searchers at the site, although the chance of finding survivors 12 days after the June 24 collapse has diminished. Read the court decision
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Reprinted courtesy of The Associated Press, Bloomberg

Client Alert: Michigan Insurance Company Not Subject to Personal Jurisdiction in California for Losses Suffered in Arkansas

February 05, 2015 — R. Bryan Martin, Lawrence S. Zucker II, and Kristian B. Moriarty – Haight Brown & Bonesteel LLP
In Greenwell v. Auto-Owners Ins. Co. (No. C074546, Filed 1/27/2015) (“Greenwell”), the California Court of Appeal, Third Appellate District, held a California resident could not establish specific personal jurisdiction over an insurance company, located in Michigan, which issued a policy of insurance to the California resident where the claimed loss occurred in Arkansas. Plaintiff purchased a policy of insurance from defendant, Auto-Owners Ins. Co. (“Auto”), a Michigan corporation. The policy provided commercial property coverage for an apartment building owned by Plaintiff, located in Arkansas. The policy also provided commercial general liability coverage for plaintiff’s property ownership business, which plaintiff operated from California. Both coverage provisions insured certain risks, losses, or damages that could have arisen in California. The dispute which arose between Plaintiff and Defendant, however, involved two fires that damaged the apartment building in Arkansas. As a result of coverage decisions that Auto made in the handling of the claim, plaintiff filed suit for breach of contract and bad faith. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin, Lawrence S. Zucker II and Kristian B. Moriarty Mr. Martin may be contacted at bmartin@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com; and Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Property Damage to Non-Defective Work Is Covered

February 18, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Hampshire Supreme Court found some of the property damage evolving from the insured's portion of the work was covered under its liability policy. Cogswell Farm Condo. Ass'n v. Tower Group, Inc., 2015 N.H. LEXIS 3 (N.H. Jan. 13, 2015). Lemery Building Company, Inc. constructed and developed 24 residential condominium units. After units were sold, the Cogswell Farm Condominium Association sued Lemery, asserting that the "weather barrier" components of the units were defectively constructed and resulted in damage to the units due to water leaks. Cogswell then sued its insurer, Tower Group, Inc., seeking a declaratory judgment that its claims against Lemery were covered. The trial court eventually determined that exclusions J (1) and J (6) both applied to exclude coverage. Exclusion J (1) excluded coverage for "property damage" to property that Lemery "owns, rents, or occupies." Exclusion J (6) excluded coverage for property damage to "[t] hat particular part of any property that must be restored, repaired or replaced because [Lemery's] work was incorrectly performed on it." 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

Indemnity Provision Prevails Over "Other Insurance" Clause

December 06, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021). Long Island Railroad (LIRR) contracted with general contractor Rukh Enterprises, Inc. to complete a railroad bridge lead paint removal and repainting project on Metropolitan Transit Authority property. Rukh hired subcontractor, East Coast Painting & Maintenance to complete certain lead-related work on the project. An employee of East Coast suffered an injury while working on the project. The employee sued LIRR and Rukh. A settlement in the underlying case was reached, implicating three of four policies - Admiral (primary for LIRR), Arch (CGL for Rukh), and Harleysville (primary for East Coast). Century Surety (excess liability for Rukh) did not contribute to the settlement and disclaimed all coverage. 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

Federal District Court Continues to Find Construction Defects do Not Arise From An Occurrence

May 10, 2012 — CDJ STAFF

Coverage for construction defects continues to be hotly contested in Hawaii state and federal courts. In a recent decision, Judge Mollway felt bound to follow the Ninth Circuit’s decision in Burlington Ins. Co. v. Oceanic Design & Constr., Inc., 383 F.3d 940, 944 (9th Cir. 2004), where the court found construction defect claims arise from breach of contract, not from an occurrence. Judge Mollway’s most recent decision on the issue is Illinois Nat. Ins. Co. v. Nordic PCL Constr., Inc., 2012 U.S. Dist. LEXIS 58464 (D. Haw. April 26, 2012).

Nordic constructed a grocery store for Safeway. In addition to the grocery store, Nordic built a 165-space rooftop parking deck, retail shops and related improvements. After opening for business in 2007, Safeway experienced significant leaks. Safeway demanded that Nordic repair the parking deck. Nordic sent the demand letter to the insurer, who agreed to appoint counsel subject to a reservation of rights.

Safeway filed suit against Nordic in state court alleging, among other things, breach of contract and negligence. The insurer provided Nordic with a defense, but Nordic hired independent counsel.

The insurer filed for declaratory relief in federal district court.

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Steven Cvitanovic Recognized in JD Supra's 2017 Readers' Choice Awards

April 05, 2017 — Steven M. Cvitanovic - Haight Brown & Bonesteel LLP
JD Supra named Partner Steven Cvitanovic among the Top 10 Authors in the construction industry in its 2017 Readers’ Choice Awards, which recognizes the excellence and achievement of firms and authors who published their substantive work on JD Supra in 2016. JD Supra editors chose the 25 industries and topics covered in these awards for their timeliness as well as their proven, ongoing importance. In each category, one firm and ten authors were recognized for consistently achieving the highest readership and engagement for all of 2016. Read the court decision
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Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

Will They Blow It Up?

March 28, 2012 — CDJ STAFF

The issues concerning the Harmon Towers building in Las Vegas continue to make their way through the courts. As we noted in a previous piece, Cook County building officials stated that the building could be a hazard if Las Vegas were struck by an earthquake. The question of whether the building will continue to stand is just one of the issues in front of a judge.

MGM Resorts International argued at a March 13 hearing for permission to implode the Harmon hotel building. They claim that more than 1,700 defects have been discovered in the building and that the building is a public safety hazard. Arguing against demolition, Perini Building Company, the general contractor for the hotel, and its subcontractors are claiming that imploding the building would destroy evidence and prejudice juries in the ongoing construction defect claims. They claim that MGM Resorts wishes to abandon the building due to the economic slowdown. Perini Corp, the contractor for the project, claims that the building can be fixed. Perini claims that MGM’s position in the construction trial would be improved if the building is demolished.

After Judge Elizabeth Gonzalez heard the four days of testimony on the Harmon Towers building and whether it should be demolished, she scheduled more testimony, with two days in April and an entire week in July. Judge Gonzalez will be deciding whether the building will be torn down, imploded, or left in place.