FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Litigation Roundup: “Based on New Information …”

August 01, 2023 — Daniel Lund III - Lexology
Based on new information … your arbitration award is thrown out! So said the United States Eleventh Circuit Court of Appeals, affirming a district court’s vacatur of the award based upon the award having been procured by fraud. The lower court ruled as it did notwithstanding the fact that the action seeking to have the arbitration award vacated was filed and served beyond the three months allowed by the Federal Arbitration Act, 9 U.S.C. 12. The party attacking arbitration award alleged that during the course of the arbitration hearing, a witness whose testimony was been handled remotely by videoconference was being inappropriately aided: the witness was being instructed remotely – by texting – by the corporate representative for his company, who was entitled to sit in on all portions of the arbitration hearing. 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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Insurance Alert: Insurer Delay Extends Time to Repair or Replace Damaged Property

November 26, 2014 — Valerie A. Moore & Christopher Kendrick – Haight Brown & Bonesteel LLP
In Stephens & Stephens XII v. Fireman's Fund Ins. (No. A135938, filed November 24, 2014), the plaintiffs obtained property insurance on a warehouse. Within a month, it was discovered to be stripped of all wiring and metal. Fireman's Fund paid for emergency repairs but nothing more, concerned that the damage had occurred outside the policy period. The policy provided for valuation of either "replacement cost," meaning the expenditure required to replace the damaged property with "new property of comparable material and quality," or "actual cash value," defined as the actual, depreciated value of the damaged property. For replacement cost, Fireman’s Fund was not required to pay "until the lost or damaged property is actually repaired ... as soon as reasonably possible after the loss or damage," and only "[t]he amount [the insured] actually spend[s]...." In the subsequent bad faith lawsuit, the jury awarded the full cost of repair, despite there being no repairs. The appeals court reversed, holding that there was no right to an immediate award for the costs of repairing the damage; however, the court nonetheless held that the insured was entitled to a "conditional judgment," awarding those costs if repairs were actually made. Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Christopher Kendrick, Haight Brown & Bonesteel LLP Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com Read the court decision
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Mortgage Interest Rates Increase on Newly Built Homes

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the National Association of Home Builders’ (NAHB) Eye on Housing, while the Federal Housing Financing Agency (FHFA) reported a decrease in mortgage interest rates for existing homes, there was an increase in mortgage rates on newly built homes: “The average contract interest rate on conventional mortgages used to purchase newly built homes actually increased in March, from 3.91 to 4.21 percent, reversing an anomalous drop to under 4 percent that occurred in February.” “The average price and loan size on conventional mortgages used to purchase newly built homes also reversed previous month declines in March,” reported Eye on Housing. “The average price increased 5.4 percent to $427,200—the second highest number on record.” Read the court decision
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Second Circuit Finds Potential Ambiguity in Competing “Anti-Concurrent Cause” Provisions in Hurricane Sandy Property Loss

November 28, 2018 — CDJ STAFF
The Second Circuit recently held that competing “anti-concurrent cause” provisions in a commercial property policy present a potential ambiguity that could result in favor of coverage for losses sustained by Madelaine Chocolate after storm surge from Hurricane Sandy combined to cause substantial damage to Madelaine’s property and a resulting loss of income. Madelaine was insured under an all-risk insurance policy issued by Chubb subsidiary Great Northern Insurance Company. By endorsement, Madelaine’s policy added “windstorm” as a covered peril and defined “windstorm” as “wind… regardless of any other cause or event that directly or indirectly contributes concurrently to, or contributed in any sequence to, the loss or damage.” The policy also included a common flood exclusion that removed coverage for loss or damage caused by or resulting from waves, tidal water, or tidal waves, or the rising, overflowing, or breaking of any natural harbors, oceans, or any other body of water, whether driven by wind or not. Like the windstorm endorsement, the flood exclusion contained concurrency language that broadened the exclusion to any loss to which flood contributed, regardless of any other cause or event that directly or indirectly contributed to the loss. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Tae Andrews, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Andrews may be contacted at tandrews@HuntonAK.com Read the court decision
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San Francisco Half-Built Apartment Complex Destroyed by Fire

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
According to San Jose Mercury News, a 250 million dollar apartment complex being built in San Francisco, California received “catastrophic damage” from a fire on March 11th. The complex was being developed by BRE Properties, Inc., and “was slated to open sometime later this year.” Initial reports blamed high winds for the start of the blaze, however, San Jose Mercury news reported that “downtown San Francisco experienced wind speeds of no more than 10 mph Tuesday, and that heavy winds were not expected Tuesday night” according to the National Weather Service. “Representatives for [BRE Properties, Inc.] were not available for comment,” as reported by San Jose Mercury News. Read the court decision
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Insured Fails to Provide Adequate Proof of Water Damage Through Roof

December 10, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court granted the insurer's motion for summary judgment due on the insured's claims for water damage to a church. Unity Church of God in Christ of York v. Church Mutual Ins. Co., 2024 U.S. Dist. LEXIS 163204 (M.D. Pa. Sept. 11, 2024). Unity Church alleged that it suffered a sudden and accidental direct physical loss to its church. Wind damage to the roof of the church allowed rainwater to leak into the sanctuary of the church. Notice was given to Church Mutual Insurance Company, but coverage was denied. Unity Church filed suit alleging breach of contract. Church Mutual answered and asserted a counterclaim for a declaratory judgment that the water damage to the church was outside the policy's coverage because the damage was caused by rain. Church Mutual filed for summary judgment. 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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Multifamily Building Pushes New Jersey to Best Year since 2007

December 04, 2013 — CDJ STAFF
One project that might be seen as typical for New Jersey is Fair Lawn Promenade, which is being built at the former site of a Kodak film processing plant. The development will revitalize an existing area, rather than send people further from the cities into the New Jersey countryside. The development is within walking distance of a commuter rail station. This project and ones like it have pushed New Jersey to a 37% increase in residential building over last year. Almost 60% of this year’s residential building in New Jersey has been multifamily. And it’s likely to stay that way for a while, according to Patrick O’Keefe, an economist at CohnReznick. He says that millennials have less of a “commitment to the American dream of homeownership.” Read the court decision
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Plaintiffs’ Claims in Barry v. Weyerhaeuser Company are Likely to Proceed after Initial Hurdle

January 28, 2019 — Frank Ingham - Colorado Construction Litigation
On December 18, 2018, Federal Magistrate Judge Scott T. Varholak recommended in a written opinion that the Motion of Defendant Weyerhaeuser Company (“Weyerhaeuser”) to Dismiss Amended Complaint Pursuant to F.R.C.P. 12(b)(6) be denied. Barry v. Weyerhaeuser Company, 2018WL6589786 (D. Colo. 2018). As such, we believe District Court Judge Christine M. Arguello will accept this recommendation and the lawsuit will proceed. At interest in this lawsuit are TJI joists designed, manufactured, and sold by Weyerhaeuser for residential construction. Headquartered in Seattle, Washington, Weyerhaeuser is one of the world’s largest private owners of timberlands, owning or controlling nearly 12.4 million acres in the United States and managing 14 million acres in Canada. It is a public company that trades on the New York Stock Exchange with revenues of $7.2 billion in 2017.[1] In addition to managing forests, Weyerhaeuser has interests in energy, minerals, and wood products. Read the court decision
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Reprinted courtesy of Frank Ingham, Higgins, Hopkins, McLain & Roswell
Mr. Ingham may be contacted at ingham@hhmrlaw.com

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