FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Occurrence Found, Business Risk Exclusions Do Not Bar Coverage for Construction Defects

May 13, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the supplier of cement for the construction of pools had coverage for alleged construction defects in the finished pools. Harleysville Worcester Ins. Co. v. Paramount Concrete, Inc., 2014 U.S. Dist. LEXIS 43889 (D. Conn. March 31, 2014). R.I. Pools sued Paramount, a manufacturer and supplier of shotcrete, after cracking appeared in nineteen pools built by R.I. Pools using Paramount's shotcrete. The jury awarded R.I. Pools compensatory damages of $2,760,000. Paramount's insurer, Harleysville, defended under a reservation of rights. After the verdict, Harleysville filed for a declaratory judgment that there was no coverage under the CGL policy. Paramount filed for partial summary judgment. Harleysville first argued there was no occurrence. The policy's definition of occurrence included the phrase, "continuous exposure." This broadened the term "occurrence" beyond the word accident to include a situation where damage occurred over a period of time, rather than suddenly or instantaneously. 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

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Construction Termination Issues Part 4: What to Do When They Want to Fire You, the Architect or Engineer

August 14, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
What if you are told that your own design services are no longer needed or welcome on a project? Can they do that? What happens then? How do you protect yourself. As you probably realize, while rare, the Owner does have the legal right to fire you “for cause”. See B101 §9.4, as long as the Owner gives you 7 days written notice. In fact, the Owner can terminate your contract for any reason at all (maybe you root for the wrong basketball team?) by terminating you for convenience (i.e., for any reason whatsoever) under B101 §9.5, again with 7 days written notice. As with Contractor terminations, the money you get when fired for convenience is much greater than when you are terminated for cause. If you are fired “for convenience”, you get paid for all services previously rendered as well as termination expenses, including anticipated profit on the value of services not performed. See B101 §9.7. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

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Federal Judge Strikes Down CDC’s COVID-19 Eviction Moratorium

March 29, 2021 — Zachary Kessler, Amanda G. Halter & Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog
A federal judge in Texas has declared the Centers for Disease Control and Prevention (CDC) eviction moratorium unconstitutional, holding that Article I’s power to regulate interstate commerce and enact laws necessary and proper for such regulation does not include the power to suspend residential evictions on a nationwide basis. While the court stopped short of issuing immediate injunctive relief, instead relying on the CDC to “respect the declaratory judgment” and withdraw the Order, the court stated that such relief would be available if the government does not comply with the decision. With this ruling, the most significant prohibition on residential evictions for nonpayment of rent is likely to be lifted, and many residential evictions halted or delayed under the Order may begin in earnest. While additional tenant protections remain in certain locales, this federal ruling increases the likely rate and pace of residential eviction activity across the country. The CDC Eviction Moratorium was a nationwide order enacted under the Trump Administration in an effort to reduce the adverse economic impacts of the ongoing COVID-19 pandemic on residential tenants, and as a public health measure to prevent displacement of individuals into living situations conducive to the spread of the COVID-19. The Order allowed tenants facing eviction due to financial strains caused by the pandemic to certify in writing to their landlord that they are unable to pay full rent and that eviction would likely lead to homelessness or force the individual into unsafe congregate or shared living quarters. The CDC issued the order under its emergency pandemic powers under the Public Health Service Act. Initially in effect through December 31, 2020, the Order was subsequently extended through March 31, 2021. Reprinted courtesy of Zachary Kessler, Pillsbury, Amanda G. Halter, Pillsbury and Adam Weaver, Pillsbury Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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ASCE Report Calls for Sweeping Changes to Texas Grid Infrastructure

March 28, 2022 — C.J. Schexnayder - Engineering News-Record
A just-released detailed analysis of the catastrophic 2021 Texas winter storm finds systemic flaws in the state's electric sector contributed to a “cascade of failures” that overwhelmed its power grid and left millions freezing in the dark. Reprinted courtesy of C.J. Schexnayder, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Builder’s Be Wary of Insurance Policies that Provide No Coverage for Building: Mt. Hawley Ins. Co v. Creek Side at Parker HOA

May 01, 2014 — David M. McLain – Higgins, Hopkins, McLain & Roswell, LLC
On the heels of a recent order regarding coverage under a Comprehensive General Insurance policy issued by Mt. Hawley Insurance Company (“Mt. Hawley”), builders should be very wary of CGL policies providing no coverage for property damage. On January 8, 2013, District Court Judge R. Brooke Jackson granted a motion for declaratory judgment filed by Mt. Hawley. The order states that the subject insurance policies issued by Mt. Hawley to Mountain View Homes II, LLC (“MV Homes”), the builder developer of the Creek Side at Parker development (the “Project”), did not provide coverage for any of the work performed by MV Homes or its subcontractors on the Project. MV Homes originally began construction on the Project in 2002 and completed construction in 2005. MV Homes was insured by National Fire and Marine Insurance Company (“National Fire”) and Mt. Hawley. In December 2008, Creek Side at Parker Homeowners Association, Inc. (“the HOA”) served notice on MV Homes. The HOA then instituted a construction defect lawsuit on June 1, 2009 against MV Homes and others. MV Homes initially demanded a defense and indemnity from National Fire, which provided a defense. Then, after two years, MV Homes demanded a defense and indemnity from Mt. Hawley in July 2011. Mt. Hawley denied coverage and did not provide a defense. The case was settled soon after, and National Fire reserved or assigned claims against Mt. Hawley. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Nondelegable Duty of Care Owed to Third Persons

May 29, 2023 — David Adelstein - Florida Construction Legal Updates
Although a personal injury case, the recent opinion in Garcia v. Southern Cleaning Service, Inc., 48 Fla.L.Weekly D977a (Fla. 1stDCA 2023) raises an interesting issue regarding nondelegable duties owed to third persons applicable in negligence actions. Remember, in order for there to be a negligence claim, the defendant MUST owe a duty of care to the plaintiff. No duty, no negligence claim. What if a defendant’s duty was delegated to, say, an independent contractor?

[A] party that hires an independent contractor may be liable for the contractor’s negligence where a nondelegable duty is involved. Such a duty may be imposed by statute, contract, or the common law. In determining whether a duty is nondelegable, the question is whether the responsibility at issue is so important to the community that an employer should not be allowed to transfer it to a third party. Garcia, supra, (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Construction Litigation Roundup: “You May Want an Intervention …”

June 10, 2024 — Daniel Lund III - Lexology
You may want an intervention … but you are not getting one! So said a federal court in New Orleans to a masonry supplier seeking to intervene in in an upstream subcontractor’s lawsuit against a payment bond surety for allegedly unpaid subcontract sums. It all seems so obvious: the masonry supplier indicates it is unpaid, and the subcontractor to which it supplied materials is saying the same thing and pursuing monies from the general contractor’s surety. Eventually, if the subcontractor prevails against the surety, monies ought to flow to the supplier – a set of facts lending itself to an intervention. The federal district court disagreed, however. Referring to Federal Rule of Civil Procedure 24(a)(2) and prior United States Fifth Circuit Court of Appeals case law the topic, the court opined that the masonry supplier lacked an interest in the subcontractor’s potential recovery that was “related to the property or transaction that forms the basis of the controversy…an interest that is ‘direct, substantial, [and] legally protectable.’" Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Insurer Awarded Summary Judgment on Collapse Claim

January 06, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit agreed with the insurer that there was no coverage for a collapse under the policy. S.O. Beach Corp. v. Great Am. Ins. Co.,2019 U.S. App. LEXIS 32569 (11th Cir. Oct. 31, 2019). S.O. Beach Corporation and Larios on the Beach, Inc ("Larios") owned a building in Miami Beach. Sometime between march 4, 2012 and April 10, 2013, Larios discovered that parts of the first three floors of its building had caved in to varying degrees. The primary cause of the collapse was a wooden support beam that had severely rotted. Larios found a broken pipe that was gushing water onto the beam, causing deterioration. Larios was forced to evacuate the building until the damage was repaired. Larios submitted a claim under its all-risk policy with Great American. The policy required that a collapse an "abrupt falling down or caving in of a building or any part of a building" to be covered. Before a coverage decision was made, Larios sued for breach of contract. The parties filed cross-motions for summary judgment. The district court granted Great American's motion and denied Larios' motion. 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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