FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Question of Parties' Intent Prevents Summary Judgment for Insurer

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The insurer's and insured's intent as to which entities were to be insured prevented the insurer's motion for summary judgment. Chaus v. State Farm Fire & Cas. Co., 2015 U.S. Dist. LEXIS 136311 (E.D. La. Oct. 5, 2015). Water damage from a broken pipe occurred at the insured's building. Blaze Chaus LLC owned the building.The building was occupied by two entities which provided health care services: Dr. Kelly G. Burkenstock, M.D. and Azure Spa, Inc. Dr. Burkenstock was the sole owner of all three entities. The application for commercial insurance was submitted by "Dr. Kelly G. Burkenstock, d/b/a/ Blaze Chaus LLC." The application requested a "Physicians and Surgeons Endorsement" and reflected that the business activities of the applicant as "Internal Medicine Doctor." 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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Texas Central Wins Authority to Take Land for High-Speed Rail System

October 03, 2022 — Barclay Nicholson & Erica Gibbons - Sheppard Mullin Construction & Infrastructure Law Blog
Move over luxury bus lines and quick flights. Central Texans should be on the lookout for bulldozers and train stops. On June 24, 2022, the Supreme Court of Texas held that Texas Central Railroad & Infrastructure, Inc. and related entities (collectively “Texas Central”) have eminent domain authority to acquire property for a proposed high-speed rail system between Dallas and Houston.[1] Specifically, the Court held that the corporation qualifies as an “interurban electric railway company” under the Texas Transportation Code. This ruling grants Texas Central the broad condemnation authority to procure land for the project. Texas Central has Statutory Authority to Take Land The plaintiff in the matter, a farm owner with property south of Dallas along the proposed path of the bullet train, challenged the companies power to condemn land. The landowner’s declaratory judgment action challenged Texas Central’s eminent-domain authority. Under Texas law, condemnation power must be conferred by the legislature, either expressly or by necessary implication.[2] Here, Texas Central was created for the purpose of constructing, acquiring, maintaining, or operating lines of electric railway between Texas municipalities. The Court found that Texas Central is engaged in activities to further that purpose. Therefore, the Court concluded, that although legislators did not contemplate high-speed railways at the time of drafting the Transportation Code, Texas Central nonetheless qualified as “interurban electric railway companies” under the statute. Reprinted courtesy of Barclay Nicholson, Sheppard Mullin and Erica Gibbons, Sheppard Mullin Mr. Nicholson may be contacted at bnicholson@sheppardmullin.com Ms. Gibbons may be contacted at egibbons@sheppardmullin.com Read the court decision
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Employee Screening and Testing in the Covid-19 Era: Getting Back to Work

August 10, 2020 — Aaron C. Schlesinger & Shannon D. Azzaro - Peckar & Abramson
Currently Available Workplace Protocols for Employers Employers seeking to minimize the risk of COVID-19 transmission in the workplace should consider from among the three currently available protocols: Written Questionnaires; Temperature Checks; and Viral or Diagnostic Testing. When implementing a screening or testing protocol, employers should explain the following in writing to employees: (1) the specific screening process or test utilized by the employer; (2) employee compliance expectations and any consequences for a refusal to participate; (3) how employee privacy will be protected; (4) if screening, the general benchmarks that indicate the employee has “passed” (e.g., temperature below 100.4ºF, per CDC guidelines); and (5) the outcome of an unsuccessful screen or test (e.g., being sent home from the workplace). Employers must also ensure that those administering the screening and/or testing are properly trained, and that appropriate written acknowledgements are obtained from employees consenting to the applicable protocol. Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson and Shannon D. Azzaro, Peckar & Abramson Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Ms. Azzaro may be contacted at sazzaro@pecklaw.com Read the court decision
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Sales of Existing U.S. Homes Decrease on Fewer Investors

September 24, 2014 — Jeanna Smialek – Bloomberg
Purchases of previously owned U.S. homes unexpectedly declined in August for the first time in five months as investors retreated from the market. Existing home sales dropped 1.8 percent to a 5.05 million annual pace, from a revised 5.14 million pace in July, the National Association of Realtors reported today in Washington. The median forecast of 72 economists in a Bloomberg survey called for 5.2 million. The share of properties sold to investors was the lowest in almost five years. As wage gains are slow to materialize and credit conditions remain tight, it has been difficult for first-time homebuyers to enter the housing market to make up the decrease in investor activity. Employment growth and easier lending rules could help would-be buyers to feel more secure in taking the plunge into homeownership. Read the court decision
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Reprinted courtesy of Jeanna Smialek, Bloomberg
Ms. Smialek may be contacted at jsmialek1@bloomberg.net

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AB 1701 – General Contractor Liability for Subcontractors’ Unpaid Wages

November 08, 2017 — Alex Baghdassarian, Eric M. Gruzen, and Kerri Sakaue - Peckar & Abramson, P.C.
Contractors will soon find themselves on the frontline of wage disputes on projects if laborers working on behalf of their subcontractors or vendors are unpaid. On October 14, 2017, Governor Jerry Brown signed into law AB 1701, which will allow laborers to seek direct compensation from the general contractors on private projects, if their wages remain unpaid. The legislative mandate requires direct contractors—defined as contractors who have a direct contractual relationship with an owner—to assume liability for any debt incurred by a subcontractor, at any tier, for a wage claimant’s performance of labor included in the subject of the original contract between the general contractor and the owner. The California bill will apply to all private construction contracts entered into on or after January 1, 2018. Previously, all laborers could maintain a mechanic’s lien claim against private property, without needing to serve a 20-day preliminary notice, but there was no statutory obligation on the “direct contractors” to reimburse the laborers their unpaid wages. Reprinted courtesy of Peckar & Abramson, P.C. attorneys Alex Baghdassarian, Eric M. Gruzen and Kerri Sakaue Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com Mr. Gruzen may be contacted at egruzen@pecklaw.com Ms. Sakaue may be contacted at ksakaue@pecklaw.com Read the court decision
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Contractor Underpaid Workers, Pocketed the Difference

February 10, 2012 — CDJ STAFF

Property Casualty 360 reports that the owner of a construction company in California’s Bay Area has been arraigned in San Francisco Superior Court. The fifty-seven felony counts include charges of payroll theft and insurance fraud.



San Francisco District Attorney, George Gascon is quoted as saying that Doherty’s actions “hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”



Frances Ann Doherty, owner of Doherty Painting & Construction has been charged with submitting false documentation as to what wages she paid her workers. It is alleged that over three years she pocketed $600,000. Additionally, she is charged with underpaying her insurer by more than $100,000 by submitting to them the fake payroll information.

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More Regulations for Federal Contractors

October 08, 2014 — Craig Martin – Construction Contractor Advisor
The Office of Federal Contract Compliance Programs (OFCCP) has been busy. In the last several weeks, the OFCCP has proposed regulations that will require contractors and subcontractors to provide summary compensation data and another rule prohibiting federal contractors and subcontractors from discriminating against employees or applicants who inquire about, discuss, or disclose their own compensation or the compensation of another employee or applicant. Equal Pay Report The OFCCP has proposed Summary Compensation regulations which would require federal contractors and subcontractors with more than 100 employees to “provide summary data on the compensation paid to employees by sex, race, ethnicity, specified job categories, and other relevant data points.” Covered employers would have to submit three types of information: 1. the total number of workers within a specific EEO-1 job category by race, ethnicity and sex; Read the court decision
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Reprinted courtesy of Craig Martin, Lamson Dugan and Murray, LLP
Mr. Gopal may be contacted at pgopal2@bloomberg.net

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Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work

September 21, 2020 — Jeremy S. Macklin - Traub Lieberman
Most general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired. In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016. At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature. Read the court decision
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Reprinted courtesy of Jeremy S. Macklin, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

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