Fairfield Connecticut Building Expert Directory

Second Circuit Certifies Question Impacting "Bellefonte Rule"

December 15, 2016 — Ellen Burrows – White and Williams LLP
Calling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1] In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993). Read the court decision
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Reprinted courtesy of Ellen Burrows, White and Williams LLP
Ms. Burrows may be contacted at burrowse@whiteandwilliams.com

The Right to Repair Act Isn’t Out for the Count, Yet. Homebuilders Fight Back

October 02, 2015 — Garret Murai – California Construction Law Blog
“[I]t ain’t how hard you hit; it’s about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That’s how winning is done. . . .” – Sylvester Stalone as Rocky Balboa in Rocky Balboa. Ding, ding. The Little Case That Roared Two years ago we wrote about a case that caused an uproar in the homebuilding industry – Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC, 219 Cal.App.4th 98 (2013) – in which the California Court of Appeals for the Fourth District held for the first time that the Right to Repair Act does not provide the exclusive remedy for construction defect claims involving “actual,” as opposed to “economic,” damages in new residential housing. It was a blow to the homebuilding industry who back in 2002, following a wave of construction defect lawsuits involving new residential housing, lobbied the State Legislature for the Right to Repair Act which gave homebuilders an opportunity to repair defects before being sued in court. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Affordable Global Housing Will Cost $11 Trillion

October 01, 2014 — Flavia Krause-Jackson – Bloomberg
Replacing the world’s substandard housing and building affordable alternatives to meet future global demand would cost as much as $11 trillion, according to initial findings in a McKinsey & Co. report. The shortage of decent accommodation means as many as 1.6 billion people from London to Shanghai may be forced to choose between shelter or necessities such as health care, food and education, data disclosed at the 2014 CityLab Conference in Los Angeles show. McKinsey will release the full report in October. The global consulting company says governments should release parcels of land at below-market prices, put housing developments near transportation and unlock idle property hoarded by speculators and investors. The report noted that China fines owners 20 percent of the land price if property is undeveloped after a year and has the right to subsequently confiscate it. Read the court decision
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Reprinted courtesy of Flavia Krause-Jackson, Bloomberg
Ms. Krause-Jackson may be contacted at fjackson@bloomberg.net

Henderson Land to Spend $839 Million on Hong Kong Retail Complex

September 03, 2014 — Michelle Yun – Bloomberg
Henderson Land Development Co. (12), controlled by billionaire Lee Shau-kee, will spend HK$6.5 billion ($839 million) on a shopping center in a prime retail area of Hong Kong after beating 17 rivals to win a land tender. The complex in the Tsim Sha Tsui district will be completed by 2019 and will house retail, services and dining, as well as a public 345-space parking garage, spokeswoman Bonnie Ngan said yesterday, citing Vice Chairman Martin Lee. Henderson won the site for HK$4.69 billion as the highest bidder, the government said in a statement yesterday. Henderson beat other developers, including Cheung Kong Holdings Ltd. (1), Sino Land Co. (83), and Sun Hung Kai Properties Ltd., to win the site in the district host to global luxury brands and hotels such as the Peninsula. The price was more than the HK$3.4 billion median estimate of three surveyors compiled by Bloomberg News. Read the court decision
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Reprinted courtesy of Michelle Yun, Bloomberg
Ms. Yun may be contacted at myun11@bloomberg.net

Colorado Senate Voted to Kill One of Three Construction Defect Bills

May 05, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal reported that the Colorado Senate Appropriations Committee voted 5-2 to kill SB 219, one of the three construction defect bills introduced by Sen. Jessie Ulibarri, D-Commerce City. SB 219 “would have given the divisions of housing, insurance and law a combined $150,000 to collect data that would shine light on the reasons for the current shortage of owner-occupied affordable housing.” However, the two other construction defect related bills are still alive. SB 216 “would offer financial incentives for building condos worth less than $500,000 and SB 220, would make it more difficult for condo owners to file a class-action lawsuit regarding alleged defects.” Read the court decision
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Illinois Couple Files Suit Against Home Builder

January 15, 2014 — Melissa Zaya-CDJ STAFF
Last December, Norman and Valerie Adkins, a couple in Edwardsville, Illinois, filed suit against their home builder, Customary Construction, and contractor Kevin M. Kahrig, alleging that the defendants did not build their deck according to code, Kelly Holleran of the Madison Record reported. According to the complaint as stated by the Madison Record, the Adkins purchased the home from the defendants in October of 2010. The couple notified Kahrig (the Customary Construction owner) regarding cracks along the perimeter of their deck that had not been caulked. Kahrig sent a crew to fix the cracks, but the Adkins were unhappy with the work, the complaint states. The Adkins hired a masonry contractor to fix the deck, and the contractor found “structural issues with the arches and brick columns supporting the deck at the back of their home,” reported the Madison Record. The Adkins then hired an engineer who “inspected the deck and reported that it had been improperly constructed and needed to be removed and replaced,” according to the complaint. The engineer continued, “The current condition of the deck is a safety hazard, as there is a risk of collapse and loose bricks or other masonry materials falling and striking a person within the proximity of the deck.” The Adkins are seeking “a judgment of more than $150,000, plus costs and attorney’s fees,” the Madison Record claims. Read the court decision
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No Coverage for Breach of Contract Claims Against Contractor

March 19, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The U. S. District Court found there was no coverage for breach of contract claims against the contractor who walked off the job before completing the project. Pa. Nat'l Mut. Cas. Ins. Co. v. Snider, 2014 U.S. Dist. LEXIS 16920 (M.D. Ala. Feb. 11, 2014). The homeowners hired Jeff Beale to build their home for an approximate cost of $650,000. Beale said the job would take six to eight months and construction would be completed in early 2005. Construction did not begin, however, until April 2005. By 2005, the homeowners were becoming increasing displeased with Beale's progress. By March 2006, construction costs were approaching $800,000 and the home was not completed. The homeowners made progress payments on a monthly basis. Beale did not return to the home after April 2006 and another contractor was hired to complete the job. When the homeowners moved in, they discovered several construction defects, including a cracked retaining wall and water intrusion in many areas of the home. They paid over $150,000 to repair the defects, to complete work Beale left unfinished, and remove mold. 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

Contractors Can No Longer Make Roof Repairs Following Their Own Inspections

July 02, 2018 — Jason Feld & Alex Chazen - Kahana & Feld LLP
California law mandates that any person who conducts roof inspections for a fee can no longer effectuate the actual repairs to the same property. Effective January 1, 2018, Business & Professions Code Section 7197 (Unfair Business Practices) deems it to be an unfair business practice for a home inspector who charges a homeowner a monetary fee for inspecting the property, to perform or offer to perform additional repairs due to the inherent financial interest and conflict raised by identifying alleged defects necessitating repairs. The new law is a result of California AB 1357, which was signed into law on October 5, 2017. The goal of the new law is to disincentivize a roof inspector from creating a report for the sole purpose of obtaining a bid to perform those documented repairs. The roof contractor can perform repairs identified in their report only after a twelve month “cooling period” which provides the homeowner an opportunity to obtain multiple bids/estimates for repairs based upon the inspector’s report. The new law also discourages home inspectors from providing a list of contractors who provide monetary referral fees back to the home inspector upon receiving repair work from the homeowner based exclusively on the home inspection report. The California Business & Professions Code Section 7195(a)(1) defines a “home inspection” as a “non-invasive, physical examination, performed for a fee in connection with the transfer…of the real property…or essential components of the residential dwelling.” Home inspection includes “any consultation regarding the property that is represented to be a home inspection or any confusingly similar term.” Business & Professions Code section 7195(a)(2) further defines a “home inspection” as including energy efficiency and solar. A “home inspection report” is a written report prepared for a fee issued after an inspection. Business & Professions Code section 7195(c). It is noted that a home inspector does not have to be a licensed architect, professional engineer, or general contractor with a Class “B” license issued by the California Contractors State License Board, but “it is the duty of a home inspector who is not licensed as a general contractor, structural pest control operator, or architect, or registered as a professional engineer to conduct a home inspection with the degree of care that a reasonably prudent home inspector would exercise. Business & Professions Code section 7196. Reprinted courtesy of Jason Feld, Kahana & Feld LLP and Alex Chazen, Kahana & Feld LLP Mr. Feld may be contacted at jfeld@kahanalaw.com Mr. Chazen may be contacted at achazen@kahanafeld.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES