Fairfield Connecticut Building Expert Directory

Stormy Skies Ahead? Important News Regarding a Hard Construction Insurance Market

August 13, 2019 — Jason M. Adams - Gibbs Giden
Word out of the construction insurance brokerage community is that the construction insurance industry has entered a hard market, seemingly overnight. Property (i.e. builder’s risk), liability and wrap-up markets are all reacting unfavorably, resulting in higher premiums and decreased availability of coverage options. The prospect of a hard market has been looming for some time given massive weather driven property losses and historically low rates (among other factors). It appears the time is upon us. Key takeaways for construction professionals are:

Expect insurance premiums to go up, potentially significantly, at renewal time and/or when seeking a new project specific program (e.g., an OCIP, CCIP, etc.).
Expect that the available coverage will get worse. Carriers may be unable to offer once standard coverage enhancements and/or may add new exclusions.
If quotes have been offered consider locking them in now, before the underwriters are forced to increase the rates/restrict coverage, or pull the quotes entirely.
With respect to wrap-ups and other project specific programs, consider requesting extensions now if the project is expected to go beyond the current policy term.
As always, the risk management team (lawyer, broker, risk manager) should work together to carefully review contracts and coverage. This will become even more important if the carriers start to introduce new exclusions as a result of the hard market.

Hard markets come and go. The tough times are when true construction insurance professionals separate themselves from the pack and become the key to weathering the storm. Jason M. Adams, Esq. is Senior Counsel at Gibbs Giden representing construction professionals (owners/developers, contractors, architects, etc.) in the areas of Construction Law, Insurance Law and Risk Management, Common Interest Community Law (HOA) and Business/Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms. Mr. Adams can be reached at jadams@gibbsgiden.com. Read the court decision
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Fifth Circuit -- Damage to Property Beyond Insured’s Product/Work Not Precluded By ‘Your Product/Your Work Exclusion’

January 24, 2022 — Anthony L. Miscioscia & Marianne Bradley - White and Williams LLP
On January 11, 2022, the United States Court of Appeals for the Fifth Circuit issued its decision in Siplast, Incorporated v. Employers Mutual Casualty Company, 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022), finding that an insurer had a duty to defend its insured in a construction defect case where the underlying complaint alleged damage to property beyond the product and work of the insured. Siplast, Inc. (Siplast) had contracted with the Archdiocese of New York (the Archdiocese) to install a roof membrane system at a high school in the Bronx, New York. Id. at *1. As part of the contract, Siplast guaranteed that the roof membrane system would remain in a watertight condition for at least twenty years. Id. at *2. If it did not, Siplast would repair the roof membrane system at its own expense. Id. Several years after the installation, the Archdiocese observed water damage in the ceiling tiles at the high school. Id. The Archdiocese contacted Siplast, who attempted to repair the damage and prevent further leaks; however, leaks and resultant damage continued to occur. Id. Siplast subsequently refused to make any more improvements to the roof. Id. Reprinted courtesy of Anthony L. Miscioscia, White and Williams LLP and Marianne Bradley, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Bradley may be contacted at bradleym@whiteandwilliams.com Read the court decision
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Buyers Are Flocking to NYC’s Suburbs. Too Bad There Aren’t Many Homes to Sell.

February 20, 2023 — Jennifer Epstein & Prashant Gopal - Bloomberg
In the midst of the worst US housing slump in a decade, a wave of finance and tech layoffs and drumbeats of a potential recession, open houses in affluent New York suburbs are packed. Offers come in fast — sometimes for hundreds of thousands over asking. A typical scene played out on a cloudy Sunday last month in Scarsdale, a suburb about 20 miles (32 kilometers) north of Manhattan known for its bucolic setting and high-rated schools. At the tail end of an open house, a dozen people were still wandering in and around a 1926 Tudor-style house listed for about $1.93 million. An older couple took video on their iPhone for their offspring too busy to attend, while a younger man walked around with his infant in a chest carrier. The house was in need of some touch-ups. Somebody whispered that the hardwood floors were scratched, another said that the refrigerator looked warped, and a pair of kitchen cabinet doors was missing. It hardly mattered. Reprinted courtesy of Jennifer Epstein, Bloomberg and Prashant Gopal, Bloomberg Read the court decision
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School’s Lawsuit over Defective Field Construction Delayed

October 08, 2013 — CDJ STAFF
The lawsuit from an Oregon school district over the faulty installation of an artificial playing field has been postponed. The chief financial officer of the Hillsboro School District noted that there is no new date set. Drainage problems caused depressions in the soccer field, leading to damage of the artificial turf. The district subsequently repaired the playing field. Two defendants, Mahlum Architects and American Sport Product Group, have already settled with the school district. The two final defendants are Robinson Construction and Geocon Northwest Inc. Robinson Construction built the field. None of the parties have released information about the settlements. Read the court decision
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Allegations of Actual Property Damage Necessary to Invoke Duty to Defend

January 17, 2013 — Tred Eyerly, Insurance Law Hawaii

The Fifth Circuit held that under Texas law, conclusory allegations of property damage in the underlying complaint did not trigger the insurer's duty to defend. PPI Tech. Serv., L.P. v. Liberty Mut. Ins. Co., 2012 U.S. App. LEXIS 24571 (5th Cir. Nov. 29, 2012).

Royal Production Company was the lessor and operator of three leases for oil exploration. Royal retained the insured, PPI, as its agent to assist in well-planning and oversee the drilling of wells on the leases.

A well was drilled on one of the three leased areas, but in resulted in a dry hole. It was later discovered that the well had been drilled on the wrong lease. Royal sued PPI for negligence, claiming that PPI caused the drilling rig to be towed to the wrong location, resulting in a dry hole and "property damage."

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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

California Supreme Court Addresses “Good Faith” Construction Disputes Under Prompt Payment Laws

June 06, 2018 — Garret Murai - California Construction Law Blog
It’s been a rollercoaster. But the ride appears to be over. In United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., Case No. S231549 (May 14, 2018), the California Supreme Court addressed whether a direct contractor can withhold payment from a subcontractor based on the “good faith dispute” exception of the state’s prompt payment laws if the “dispute” concerns any dispute between the parties or whether the dispute must be directly relevant to the specific payment that would otherwise be due. California’s Prompt Payment Laws California has a number of construction-related prompt payment laws scattered throughout the state’s Civil Code, Public Contracts Code and Business and Professions Code. Their application depends on the type of construction involved, whether public or private; the type of payment involved, whether a progress payment or retention; and who is paying, whether it’s a private owner, public entity, direct contractor, or subcontractor. 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

Cross-Office Team Secures Defense Verdict in Favor of Client in Asbestos Case

November 18, 2024 — Lewis Brisbois Newsroom
St. Louis/Kansas City, Mo. (October 23, 2024) - St. Louis Partners Tracy J. Cowan and Karen M. Volkman, along with Kansas City Partner Vincent Gunter, secured a defense verdict in a Jackson County, Missouri matter on behalf of a Lewis Brisbois client, which was the successor-in-interest to a life, health and reinsurance firm, against claims brought by an individual who worked in the corporate headquarters and was diagnosed with mesothelioma. Background The plaintiff was 62 years old when she was diagnosed with mesothelioma. She worked as a clerk for several years in the 1970s in a 19-story office building that opened in 1963. The plaintiff claimed construction work being performed in the areas where she worked exposed her to asbestos from above the suspended ceiling. The beams and girders in the building were fireproofed with sprayed-on insulation. Although the plaintiff did not perform any maintenance work, she relied on evidence from several operating engineers who worked above the ceiling near the fireproofing to establish the presence of asbestos in the building. The plaintiff submitted claims for negligence and unsafe workplace. At the beginning of trial, the LBBS client had a pending motion for summary judgment on the grounds that the plaintiff’s exclusive remedy was governed by the Missouri Workers’ Compensation Law. The Court denied a motion to continue the trial and submitted the workers’ compensation issue as an affirmative defense. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Hundreds of Coronavirus Coverage Cases Await Determination on Consolidation

September 21, 2020 — Tred R. Eyerly - Insurance Law Hawaii
On July 30, 2020, the Judicial Panel on Multi-District Litigation (JPML) heard oral argument on the potential consolidation of all federal cases involving business interruption coverage relating to coronavirus and shut-down orders. A decision will be rendered in the near future. Meanwhile, many cases are on hold, waiting for a determination on consolidation. One such case is Pigment Inc. v. Hartford Fin. Servs. Group, 2020 U.S. Dist. LEXIS 133230 (S.D. Cal. July 27, 2020), where the court granted a stay pending a decision by the JPML. The case is a class action based on denial of coverage under business interruption insurance. Plaintiff's case alleged a bad faith denial that risked the permanent closure of its business due to unexpected temporary shutdowns from the COVID-19 pandemic. Plaintiff sought a stay pending the decision of the JPML. The court considered the possible damage which could result from granting a stay, the hardship which a party could suffer in being required to go forward, and the orderly course of justice measured by the simplifying or complicating of issues, proof, and questions of law which could be expected to result from a stay. 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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