Fairfield Connecticut Building Expert Directory

Denial of Coverage for Bulge in Wall Upheld

November 26, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insurer properly denied coverage for a bulge in a warehouse wall that the insured claimed was caused by Hurricane Ike. Russell v. Scottsdale Ins. Co., 2014 U.S. Dist. LEXIS 143882 (S.D. Tex. Sept. 30, 2014). Hurricane Ike displaced metal roof coverings on the insured's warehouse, causing interior water damage to several rooms. Scottsdale eventually paid $84,820.36 for the loss of the roof, less the deductible. The parties disagreed on whether a horizontal bulge on the north wall of the warehouse was also caused by the hurricane. The bulging portion of the wall was not cracked, but cracks were seen around the corners and windows. The insured admitted to an engineer retained by Scottsdale that the cracks in the exterior walls had been filled with caulking on several occasions prior to Hurricane Ike. Scottsdale denied coverage for the damage to the north wall under exclusions for soil sinking, rising, or shifting and for damage from faulty, inadequate or defective design, construction, and repair.The insured later sent a demand for $800,000 for the damage to the wall. A suit was eventually filed by the insured. 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

A Relatively Small Exception to Fraud and Contract Don’t Mix

April 06, 2016 — Christopher G. Hill – Construction Law Musings
Remember all of my posts about how fraud and contract claims don’t usually play well in litigation? Well, as always with the law, there are exceptions. For instance, a well plead Virginia Consumer Protection Act claim will survive a dismissal challenge. A recent opinion out of the Alexandria division of the U. S. District Court for the Eastern District of Virginia sets out another exception, namely so called fraudulent inducement. In XL Specialty Ins. Co. v. Truland et al, the Court considered the question of whether both a tort and contract claim can coexist in the same lawsuit when the tort claim is based upon the information provided to the plaintiff when that information proves false. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Construction Law Musings
Mr. Hill may be contacted at chrisghill@constructionlawva.com

The Insurance Coverage Debate on Construction Defects Continues

February 05, 2015 — Craig Martin – Construction Contractor Advisor
New Hampshire is the first court of 2015 to weigh in on construction defect coverage issues. The case, Cogswell Farm Condominium Association v. Tower Group, involved a typical situation. Lemery Building Company was hired to build 24 residential condominium units. After construction, the condominium association sued the builder asserting that the weather barrier, including the water/ice shield, flashing, siding, and vapor barrier, was defectively constructed and resulted in damage to the units due to water leaks. The condominium association also sued Lemery’s insurer for a determination as to whether the builder’s Commercial General Liability (CGL) insurer had to provide coverage for the claim. The trial court ruled against the condominium association, finding that the “your work” exclusion applied. The exclusion in the builder’s CGL policy provided that there was no coverage for property damage to “[t]hat particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

The Preservation Maze

June 12, 2023 — Sofya Uvaydov - Kahana & Feld LLP
To appropriately preserve an issue for appeal is frankly confusing to many attorneys due to differing rules depending on the issue or procedural posture (presumably why appellate attorneys are more commonly used during trial). On May 25th, the US Supreme Court handed down Dupree v. Younger, 598 U.S. __ (2023) clarifying preservation requirements from denied summary judgment orders. When a federal court denies summary judgment on sufficiency of evidence grounds, a party must raise the argument again post-trial to preserve it for appeal as per the Court’s prior ruling in Ortiz v. Jordan, 562 U.S. 180 (2011). When a court denies summary judgment on a purely legal issue, the Court unanimously held that the issue is preserved in an appeal from a final judgment without having to raise it again post-trial. The Supreme Court distinguished this from their prior rule in Ortiz by explaining that sufficiency or factual issues which were previously denied at summary judgment must be evaluated based on the totality of the evidence adduced at trial. A purely legal issue decided on summary judgment is not changed by factual evidence at trial. Read the court decision
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Reprinted courtesy of Sofya Uvaydov, Kahana & Feld LLP
Ms. Uvaydov may be contacted at suvaydov@kahanafeld.com

House Panel Subpoenas VA Documents on Colorado Project

September 22, 2016 — Tom Ichniowski - Engineering News-Record
The Dept. of Veterans Affairs has received a subpoena from the House Veterans Affairs Committee, asking for more information about the VA’s long-delayed, far over-budget hospital under construction in Aurora, Colo. Read the court decision
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Reprinted courtesy of Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Strict Rules for Home Remodel Contracts in California

June 06, 2018 — Daniel F. McLennon - Smith Currie
Home remodeling in California is governed by strict contracting laws intended to protect consumers. The Contractors State Licensing Board, (“CSLB”) is particularly concerned about contractors working without permits, contractors taking payment in excess of the value of the work complete–including deposits in excess of $1,000–and contractors refusing to complete projects. They are also concerned about contractors who fail to comply with the Home Improvement Contract (“HIC”) laws. At a minimum, it takes six pages of contract language for an HIC to comply with California law. Most contractors do not get it right, leaving themselves exposed to license discipline, misdemeanor criminal prosecution, and void contracts. The stakes are high, and contractors are advised to learn and comply with the HIC laws. Read the court decision
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Reprinted courtesy of Daniel F. McLennon, Smith Currie
Mr. McLennon may be contacted at dfmclennon@smithcurrie.com

Crowdfunding Comes to Manhattan’s World Trade Center

January 28, 2015 — David M. Levitt – Bloomberg
Got $5,000? You can invest in the 3 World Trade Center skyscraper under construction in lower Manhattan. Fundrise, a real estate crowdfunding business, is inviting individual investors to put as little as $5,000 into bonds backing the 80-story tower, according to a statement e-mailed by Joshua Greenwald, a spokesman for the Washington-based company. The total cost for the Richard Rogers-designed building is projected to be $2 billion. “We think the 3 World Trade Center investment offering is proof of the power of crowdfunding at work,” Dan Miller, co-founder of Fundrise, said in the statement. “We are proud to be able to give more people a chance to invest in this important iconic asset.” Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg
Mr. Levitt may be contacted at dlevitt@bloomberg.net

Contractor Gets Benched After Failing to Pay Jury Fees

April 11, 2022 — Garret Murai - California Construction Law Blog
Trial by jury is a fundamental right under the U.S. and California Constitutions. However, to avail yourself of this right, you not only have to declare that in advance that you intend to try your case to a jury but post jury fees as well. In TriCoast Builders, Inc. v. Fonnegra, a contractor who failed to timely post jury fees, discovered on the day of trial that it waived the right to insist on a jury trial when the defendant pulled an “I gotcha” and waived his right to a jury trial. The TriCoast Case In May 2014, Nathaniel Fonnegra house was damaged by fire. The following month, Fonnegra entered into a construction contract with TriCoast Builders, Inc. to repair the property. Dissatisfied with the work, Fonnegra terminated the contract, and TriCoast in turn filed a complaint against Fonnegra for unpaid work. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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