Fairfield Connecticut Building Expert Directory

The Expansion of Potential Liability of Construction Managers and Consultants

November 18, 2019 — Scott D. Cessar - Construction Executive
Over the last decade or so, there has been far more judicial willingness to adopt legal theories that result in an increased risk of exposure to construction managers and consultants working on construction projects. This has resulted in a greater likelihood of lawsuits being filed that name construction managers and consultants as defendants and a greater likelihood of those lawsuits surviving efforts to have the lawsuits dismissed prior to trial. The consequence of more claims has led to increased costs for legal expenses, settlements and uncompensated personnel time devoted to the defense of the claims. This expansion of potential liability may be broken into two sets:

claims for pure economic loss not arising from property damage or personal injury by parties not in a contractual relationship with a construction manager or consultant; and
claims for property damage or personal injury by a party not in a contractual relationship with a construction manager or consultant.

The first set concerns claims by a contractor against a construction manager or consultant that its breach of duties owed to the owner on a project and/or its provision of incomplete or inaccurate information on a project, which it knew, or should have reasonably anticipated, would be relied on by the contractor, resulted in damages to the contractor. Reprinted courtesy of Scott D. Cessar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Cessar may be contacted at scessar@eckertseamans.com

Court Rules that Collapse Coverage for Damage Caused “Only By” Specified Perils Violates Efficient Proximate Cause Rule and is Unenforceable

January 26, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Vardanyan v. Amco Ins. Co. (No. F069953, filed 12/11/15) a California appeals court held that policy wording that the collapse coverage for damage “caused only by” certain specified perils did not mean “solely” by those specified perils, but that coverage may nonetheless apply even if excluded causes contributed to the loss, under the Insurance Code section 530 and the efficient proximate cause rule. In Vardanyan, the insured made a claim for water damage from unknown origin to a rental house. An engineer concluded that the various sources of moisture—roof leaks, gutters and downspouts that did not channel the water away from the house, a faucet spraying water on the exterior of the house, leaking toilet and bathtub, and humidity—contributed to the damage to the house, along with poor construction, termite damage and decay. The insurer denied coverage citing multiple policy exclusions, including damage caused by seepage or leakage of water from a plumbing system; deterioration; mold, wet or dry rot; settling of foundations, walls or floors; earth movement; water damage; neglect; weather conditions; acts or decisions of any person; and faulty or defective design, workmanship, repair, construction, or maintenance. The insured retained a public adjuster who disagreed, in particular citing the policy’s “Other Coverage 9” coverage for collapse of a building or part of a building “caused only by one or more” of a list of perils, including hidden decay, hidden insect damage, and weight of contents, equipment, or people. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Self-Storage Magnates Cash In on the Surge in Real Estate

August 06, 2014 — Hui-yong Yu – Bloomberg
Kelsey Smith is a single mother who works as a waitress in Midvale, Utah, and lives with a roommate in a small apartment in the Sugar House neighborhood of Salt Lake City. Smith, 26, pays $500 a month for daycare for her 3-year-old, which makes it hard to get by on a waitress’s pay. She says she’s had to move to cheaper lodgings six or seven times. Rather than drag all her belongings with her, Smith rents a 10-foot-by-15-foot (3-meter-by-5-meter) self-storage unit, for which she pays $80 a month -- as much as two shifts’ worth of wages and tips. The unit contains furniture and other items she’s accumulated over the years -- “just the things you’d need if you had a home,” she says. “People don’t want to let go.” Millions of Americans are like Kelsey Smith, Bloomberg Markets magazine will report in its September issue. They’ve got furniture and old photos, children’s toys and bric-a-brac that they’re loath to give up, yet they can’t find a place for it in their homes, garages or apartments. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

Takeaways From Schedule-Based Dispute Between General Contractor and Subcontractor

September 09, 2024 — David Adelstein - Florida Construction Legal Updates
A recent opinion out of the Southern District of Florida, Berkley Insurance Co. v. Suffolk Construction Co., Case 1:19-cv-23059-KMW (S.D.Fla. July 22, 2024), provides valuable takeaways on schedule-based disputes between a general contractor and subcontractor on a high-rise project. In a nutshell, the general contractor’s original project schedule was abandoned due to project delays and the project wasn’t being built by any updated project schedule. The subcontractor claimed the general contractor was mismanaging the schedule putting unreasonable manpower and supervision constraints on it, i.e., it was working inefficiently. A bench trial was conducted and the Court found in favor of the subcontractor’s arguments. The Court found the general contractor had unrelated delays and that work activities were no longer methodical but, simply, piecemeal demands. The Court also rejected any inadequate manpower arguments finding the subcontract did not place any manpower requirements on the subcontractor. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Traub Lieberman Partners Ryan Jones and Scot Samis Obtain Affirmation of Final Summary Judgment

February 28, 2022 — C. Ryan Jones & Scot E. Samis - Traub Lieberman
Traub Lieberman Partners Ryan Jones and Scot Samis recently obtained affirmation of final summary judgment in favor of a windstorm and general insurance provider (“Insurer”) in the Florida First District Court of Appeal. The Appellant, a restoration service provider (“Restoration Service”), provided emergency mitigation services in the wake of hurricane damage to a residential home that was covered by an insurance policy issued by the Insurer. The Restoration Service invoiced the Insurer and, following an investigation, the Insurer paid a portion of the invoiced amount and invoked the policy’s appraisal clause to resolve the dispute over the difference. The Restoration Service brought suit against the Insurer, arguing that the appraisal process did not apply to mitigation services. The Insurer countered that it was entitled to resolve the claim by appraisal and, following arguments, the Court determined that the appraisal provision applied to mitigation services. Reprinted courtesy of C. Ryan Jones, Traub Lieberman and Scot E. Samis, Traub Lieberman Mr. Jones may be contacted at rjones@tlsslaw.com Mr. Samis may be contacted at ssamis@tlsslaw.com Read the court decision
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Business Risk Exclusions Bar Coverage for Construction Defect Claims

June 28, 2013 — Tred Eyerly
The federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013). The plaintiffs entered a construction contract with the insured general contractor to build a home. After the project was one-third completed, plaintiffs terminated the contract. Experts hired by plaintiffs found a failure to properly site the residence, as the house was constructed 48 feet from the intended location; violations of county height restrictions; failure to follow building plans, which were themselves deficient; and an improperly poured foundation. The experts estimated that the costs of repairing the property to be between $1.3 and $1.5 million, and that the cost of demolishing the structure and rebuilding it would be between $1.1 and $1.3 million. After plaintiff filed suit, a stipulated judgment of $1.952 million was entered. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Contractor Allegedly Stole Construction Materials

October 16, 2013 — CDJ STAFF
A Bronx man has been arrested for the theft of about $5,000 of construction materials and equipment from a New Hyde Park residence. When construction workers informed the homeowner of the missing items, the homeowner contacted Damion Brown, who apparently had previously been doing construction work at the home. Mr. Brown admitted he had taken the items but would not return them to the homeowner. The homeowner contacted police, who took M. Brown into custody. Read the court decision
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Making the Construction Dispute Resolution Process More Efficient and Less Expensive, Part 2

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
John P. Ahler, on the Ahlers & Cressman PLLC blog, has posted the second part of his two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive. In this post, Ahler discussed “tips on how lawyers and stakeholders can make things move quicker in arbitration.” For example, Ahler looked at the arbitration clause in the initial contract, various options for arbitration, evidence decisions, and others. Read the court decision
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