Fairfield Connecticut Building Expert Directory

Tenants Who Negligently Cause Fires in Florida Beware: You May Be Liable to the Landlord’s Insurer

May 13, 2019 — Rahul Gogineni - The Subrogation Strategist
In Zurich Am. Ins. Co. v. Puccini, LLC, 2019 Fla. App. LEXIS 1487, 44 Fla. L. Weekly D 383, Florida’s Third District Court of Appeals considered whether a landlord’s carrier, Zurich American Insurance Company (Zurich), was precluded from pursuing a subrogation claim against the landlord’s tenant, Puccini, LLC (Puccini), for fire-related damages. After the fire, Zurich paid its insured, Lincoln-Drexel Waserstein, Ltd. (Lincoln), over $2.1 million. Zurich then proceeded with an action against Puccini. Puccini filed for summary judgment arguing that it was an additional insured under the Zurich policy. The trial court agreed with Puccini and dismissed the action. Zurich then appealed the case to Florida’s Third District Court of Appeals. Finding that the lease contemplated both liability on the part of the tenant and indemnification in favor of the landlord, the court held that the tenant was not an implied co-insured under Zurich’s policy. Thus, the court allowed Zurich’s subrogation action. The Sutton Doctrine Extension of the Anti-Subrogation Rule In the United States, most states have adopted an anti-subrogation rule either by statute or through common law. Under an anti-subrogation rule, an insurer may not pursue its insured for monies paid to the insured. While some states limit their anti-subrogation rule to apply only to the named insured, other states have expanded the rule to include parties listed as additional insureds, and even, in some instances, implied insureds (those parties not specifically listed, but still considered an insured under the applicable policy). Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

Equitable Subrogation Part Deux: Mechanic’s Lien vs. Later Bank Deed of Trust

September 15, 2016 — Kevin J. Parker – Snell & Wilmer Real Estate Litigation Blog
This post follows, almost two years to the day, Rick Erickson’s post of August 29, 2014. As noted by Rick Erickson in his August 29, 2014 post, the Arizona Supreme Court in the Weitz case (2014) had determined that equitable subrogation principles were applicable to enable an earlier-recorded mechanic’s lien to be trumped by a later-recorded bank deed of trust, if the loan secured by the later deed of trust paid off a lien that had been ahead of the mechanic’s lien. In a decision filed August 9, 2016, the Arizona Court of Appeals further clarified the scope of such equitable subrogation. In Markham Contracting Co., Inc. v. FDIC, No. 1 CA-CV 14-0752 (August 9, 2016), the Arizona Court of Appeals addressed a situation where a first-recorded deed of trust was followed by a second-recorded mechanic’s lien; and then, after the mechanic’s lien was recorded, a new lender made a secured construction loan that was used, in part, to pay off the loan that was secured by the first-position deed of trust. The key being “in part.” The subsequent lender loaned $4.8 million, but only $2.9 million went to pay off the balance owing on the first-position deed of trust. Read the court decision
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Reprinted courtesy of Kevin J. Parker – Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

Homebuilding Held Back by Lack of Skilled Workers

June 28, 2013 — CDJ STAFF
Home construction in Michigan could surge by thirty-seven percent this year, if the workers are there to build these houses. Aaron Rigozzi, the owner of Semper Fi Construction, told the Detroit Free Press that at the height of the boom he had fourteen employees whose wages reached $25 an hour. Now his firm has filed for bankruptcy and has only three employees. The top wage is $16 an hour. He also has the problem of people whose skills are less than what they claim. “You can hire people and they say they can do this or that, but they really can’t.” The Home Builders Association of Michigan says that this is stretching out the time to complete a new house by months, and leading homeowners who are looking for a contractor stranded for weeks. In 2012, more home permits were taken out than in any year since 2008. Read the court decision
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Amendments to California Insurance Code to Require Enhanced Claims Handling Requirements for Claims Arising Out Of Catastrophic Events

September 04, 2019 — Jon A. Turigliatto, Esq. & Ravi R. Mehta, Esq. – Chapman Glucksman Dean Roeb & Barger Bulletin
Senator Bill Dodd, who represents Napa County and surrounding areas in the California Senate, has recently introduced Senate Bill 240, known colloquially as The Insurance Adjuster Act of 2019. S.B. 240 would amend the California Insurance Code to streamline and organize claim processing, particularly during a state of emergency / catastrophic events. The proposal is in response to a series of devastating wildfires which ravaged the Sonoma County and Napa Valley wine country during the 2017 fire season (Atlas, Tubbs, and Nun fires). Many of Senator Dodd’s constituents reported difficulty in navigating the claim process due to multiple claim professionals handling a single claim, many of whom were outside of California, and many of whose capabilities were challenged. S.B. 240 would direct the Department of Insurance to issue annual notices setting forth legal developments as they relate to property insurance policies, including best practices for evaluating damage caused by an emergency, and requires out-of-state claims professionals to certify, under penalty of perjury, that they have read these notices along with claim adjusting literature also prepared by the Department of Insurance. S.B. 240 would also require insurers to designate a primary point of contact for their customers during a state of emergency until the claim is closed or litigation is initiated. While the proposed legislation would not prohibit multiple claims professionals handling a single claim, it would provide for training standards issued by the Department of Insurance on how best to handle claims in a state of emergency. Further, S.B. 240 would require claims professionals who are not licensed in California (1) to be supervised by a licensed California claims professional, and (2) to read and understand the annual emergency claim adjusting literature issued by the Department of Insurance within 15 calendar days of beginning adjusting of claims in California. The bill passed the Senate by unanimous vote and is pending in the Assembly. The bill is also supported by Insurance Commissioner Ricardo Lara. Accordingly, the bill is expected to pass the Legislature. Once enacted, S.B. 240 would significantly elevate claim adjusting requirements related to emergencies, such as natural disasters, by placing greater oversight in the Department of Insurance, and greater responsibility on claims professional within and outside of California. How pragmatic these requirements are and what practical impact they will have on the industry are developments which we will follow and provide further commentary as this bill makes its way through the California legislature and into the California Insurance Code. Reprinted courtesy of Jon A.Turigliatto, Chapman Glucksman Dean Roeb & Barger and Ravi R. Mehta, Chapman Glucksman Dean Roeb & Barger Mr. A.Turigliatto may be contacted at jturigliatto@cgdrblaw.com Mr. Mehta may be contacted at rmehta@cgdrblaw.com Read the court decision
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Best U.S. Home Sales Since 2007 Show Momentum in Housing Market

August 26, 2015 — Sho Chandra – Bloomberg
America’s housing market has been heating up this summer. Purchases of previously owned homes unexpectedly rose in July for a third straight month to reach the highest level since February 2007, figures from the National Association of Realtors showed Thursday. The gain was driven by stronger sales of single-family houses even as the share of first-time buyers shrank. A limited number of available properties is keeping prices elevated, giving homeowners the financial flexibility to trade up as their housing equity improves. The data and a recent report showing the strongest rate of residential construction since 2007 are consistent with the Federal Reserve’s view that the industry is making progress. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

New Member Added to Seattle Law Firm Williams Kastner

May 21, 2014 — Beverley BevenFlorez-CDJ STAFF
Attorney Todd W. Blischke has become a member of Seattle, Washington’s Williams Kastner law firm, according to Herald Online. Blishcke, who “has experience representing contractors, sureties, real estate developers, public agencies and private owners” will “chair the firm’s Construction Litigation and Surety Practices Team.” “Todd is an excellent addition to the firm’s Seattle office, and we are thrilled to have him on board,” said Jessie Harris, Managing Director of Williams Kastner, as quoted by Herald Online. “His years of experience in construction and surety matters will be an asset to Williams Kastner’s established construction litigation practice.” Read the court decision
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Federal Court Predicts Coverage In Utah for Damage Caused By Faulty Workmanship

April 03, 2013 — Tred Eyerly
The federal district court predicted that the Utah Supreme Court would find that damage to property other than the insured's work product is unexpected and arises from an occurrence. Cincinnati Ins. Co. v. AMSCO Windows, 2013 U.S. Dist. LEXIS 15999 (D. Utah Feb. 5, 2013). The insured, AMSCO Windows, installed windows in new homes constructed in Nevada. A number of homeowners asserted claims against the contractors who built their homes, alleging numerous construction defects, including the windows, and that the defects caused property damage to their homes. The contractors, in turn, asserted claims against AMSCO. The insurer, Cincinnati Insurance Company, filed for a declaratory judgment that it had no duty to defend or indemnify AMSCO. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

New York Bars Developers from Selling Condos due to CD Fraud Case

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
According to GlobeSt, New York “Attorney General Eric T. Schneiderman has announced a settlement agreement that bars developers Joseph Scarpinito and Shiraz Sanjana—and five affiliated entities they own and operate—from offering or selling securities, including condo and coop sales, in or from New York State.” The settlement is in “result of an investigation by the Attorney General’s real estate finance bureau into allegations of fraud by the developers of the Mirada, an eight-story Harlem condominium.” GlobeSt also stated that the agreement “provides for binding arbitration with the condo purchasers for alleged construction defects, and requires the developers to pay $500,000 in penalties and fines to New York State.” Read the court decision
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