Fairfield Connecticut Building Expert Directory

California Case That Reads Like Russian Novel Results in Less Than Satisfying Result for Both Project Owner and Contractors

May 01, 2019 — Garret Murai - California Construction Law Blog
Sometimes you can see a train wreck coming a mile away. The next case, Design Built Systems v. Sorokine, Court of Appeal for the First District, Case Nos. A151264 and A152059 (February 26, 2019), is one of those cases. It also happens to read like a Tolstoy novel. The Beginning of the Train Wreck Alexei Sorokine and Elena Koudriavtseva, husband and wife, owned a single family home in San Rafael, California. Sorokine had acquired the house prior to his marriage to Koudriavtseva. In 2010, he traveled to Russia and, for reasons unexplained, has not been able to return. Following a landslide on the property in 2006, Sorokine entered into a construction contract with Design Built Systems to design and build a series of retaining walls. DBS was also retained to remedy a stop work notice issued by the City of San Rafael following work performed by others. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

Badly Constructed Masonry Walls Not an Occurrence in Arkansas Law

May 10, 2012 — CDJ STAFF

The US District Court for Maryland has granted a summary judgment in the case Konover Construction Corp. v. ATC Associates to Massachusetts Bay Insurance Company and denied a request for dismissal from ACT. Konover (KBE) was contracted by Wal-Mart to build a Wal-Mart store and a Sam’s Club in Port Covington, Maryland. Superus, Inc. was hired by KBE to build the masonry walls. Superus purchased a policy from Massachusetts Bay Insurance which named KBE as an additional insured. Wal-Mart hired ATC Associates to independently test and inspect the concrete structural steel, and masonry.

After the building was in use, a large crack appeared which was attributed a latent construction defect. Other cracks were discovered. Upon investigation, it was discovered that there were “voids or foam in the concrete block surrounding the reinforcing steel that should have been filled with grout,” and in some cases, “reinforcing steel was missing or not installed in accordance with the specifications.” KBE paid for the repair and remediation and Wal-Mart assigned all rights and interests against ATC to KBE.

KBE filed suit against ATC. ATC called for dismissal on the grounds that Wal-Mart had no claims as the problems had been remediated. Wal-Mart then provided KBE with additional agreements to give them enforceable rights against ATC and Superus. KBE filed a fourteen claims against ATC, Superus, and Massachusetts Bay. In the current case, Massachusetts Bay sought summary judgment and ATC sought dismissal of all claims against it.

Massachusetts Bay claims that they need not indemnify Superus, as “there is no evidence adequate to establish that Superus’ defective work caused any collateral and/or resulting damage that was not subject to an Impaired Property exclusion, and that, in any event, no damage occurred during the policy period.”

As Wal-Mart is headquarted in Arkansas, certain contracts were under Arkansas law. Under the Arkansas courts, “defective workmanship, standing alone and resulting in damages only to the work product itself, is not an ‘occurrence.’” The court determined that collateral or resultant damage would be covered. The court found that “it is clear under Arkansas law, and the parties appear to agree, that Massachusetts Bay is not obligated to indemnify KBE for any repairs to the masonry walls themselves, including any cracks or gaps in the walls.” The court also found that “there is no evidence adequate to prove that any allegedly resultant property damage was caused by Superus’ faulty construction of the walls.” The court also noted that “if the building code violation and structural integrity problem were ‘property damage,’ insurance coverage would be barred by the Impaired Property Exclusion.” Based on these findings, the court concluded that Massachusetts Bay is entitled to summary judgment.

While the court dismissed the case against Massachusetts Bay, the court declined ATC’s motion to dismiss. The court noted that ACT’s alleged negligence in conducting inspections “created only a risk of economic loss for KBE.” Although hired by Wal-Mart, ATC “transmitted its daily testing and inspection reports of the Wal-Mart and Sam’s Club projects directly to KBE.” The court found that “KBE has made a plausible claim.”

ATC also claimed that KBE contributed to the negligence due to the negligence of its subcontractor. The court concluded that it was plausible that “ATC will not be able to carry its burden of proving KBE was contributorily negligent.” The court was less sanguine about KBE’s fraud claim, but though it “may not now appear likely to have merit, it is above the ‘plausibility’ line.”

In conclusion, KBE may not continue its case against Massachusetts Bay. However, the judge allowed the other proceedings to continue.

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The Big Three: The 9th Circuit Joins The 6th Circuit and 7th Circuit in Holding That Sanctions For Bad-Faith Litigation Tactics Can Only Be Awarded Against Individual Lawyers and Not Law Firms

September 03, 2015 — Christopher B. Lloyd & Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Law v. Wells Fargo Bank, N.A. (2015 S.O.S. 13–56099 – filed August 27, 2015), the Ninth Circuit joined the shortlist of Circuit Courts to hold that sanctions for bad-faith litigation tactics under 28 U.S.C. section 1927 can only be sought against individual attorneys and not law firms. Section 1927 authorizes sanctions against “[a]ny attorney or other person admitted to conduct cases in any court of the United States … who so multiplies the proceedings in any case unreasonably and vexatiously….” On behalf of the client, an attorney with Kaass Law filed a complaint against ten different defendants, including Wells Fargo Bank, which moved to dismiss under F.R.C.P. Rule 12(b)(6). Rather than responding to the motion to dismiss, plaintiff filed a motion to amend the initial complaint; Wells Fargo Bank filed a notice of non-opposition. Reprinted courtesy of Christopher B. Lloyd, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr.Lloyd may be contacted at clloyd@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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2023 West Coast Casualty Construction Defect Seminar

March 27, 2023 — Beverley BevenFlorez – CDJ Staff
The 29th annual West Coast Casualty Construction Defect Seminar will return to the Disneyland Hotel in May. The event covers topics of interest to those in the construction defect field including prosecution, defense, insurance coverage, and science and technology. The seminar will also have networking opportunities. Attendees every year include professionals “from the legal, insurance, builder, contractor, subcontractor and numerous other communities.” May 18th-19th, 2023 Disneyland Hotel 1150 Magic Way Anaheim, CA 92802 Read the court decision
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Two Firm Members Among the “Best Lawyers in America”

September 01, 2016 — A&C Crew – Ahlers & Cressman PLLC
We are excited to announce that John P. Ahlers has been selected as a “Lawyer of the Year” in Construction Law, and John P. Ahlers and Paul R. Cressman, Jr. have been selected as “Best Lawyers in America” in Construction Litigation by Best Lawyers for 2017. Best Lawyers has recognized Mr. Ahlers and Mr. Cressman as “Best Lawyers in America” since 2007 and 2013, respectively. Read the court decision
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Separation of Insureds Provision in CGL Policies

August 31, 2020 — David Adelstein - Florida Construction Legal Updates
CGL policies contain a “Separation of Insureds” provision. This provision oftentimes states:

As if each named insured were the only Named Insured; and
Separately to each insured against whom claim is made or “suit” is brought.

This provision is designed to “create separate insurable interests in each individual insured under a policy, such that the conduct of one insured will not necessarily exclude coverage for all other insured.” Evanson Ins. Co. v. Design Build Interamerican, Inc., 569 Fed.Appx. 739 (11th Cir. 2014). This provision also allows one insured under the policy (e.g., additional insured) to sue another (e.g., named insured) without violating potential coverage because there are separate insurable interests. This is a valuable provision in CGL policies. 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

Couple Sues for Construction Defects in Manufactured Home

July 31, 2013 — CDJ STAFF
A West Virginia couple has sued the manufacturer of their home for construction defects and damage. Darrell and Teri Pearson claim that the home they purchased from Giles Industries was defective. They further claim that Kitchen’s Construction failed to set the home up properly and that the firm did not repair damaged sections of home. The suit also names the firm that sold the home and others. Read the court decision
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Construction Law Breaking News: California Supreme Court Rules in Favor of Beacon Residential Community Association

July 09, 2014 — Steven M. Cvitanovic – Haight Brown & Bonesteel LLP
On July 3, 2014, the California Supreme Court issued its opinion affirming the First District Court of Appeal in the case of Beacon Residential Community Association v. Skidmore, Owings & Merrill (Case No. S208173). The issue in the Beacon case is whether the architects of a residential project owe a duty to future third party homeowners under SB800 and common law. In 2011, Judge Richard Kramer of the San Francisco Superior Court sustained demurrers of Skidmore, Owings & Merrill and HKS Architects to the homeowners association complaint without leave to amend. The homeowners association appealed and the First District Court of Appeal reversed Judge Kramer, ruling that the homeowners could assert SB800 and common law claims against the architects of the project even in the absence of privity of contract. Read the court decision
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Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

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