Fairfield Connecticut Building Expert Directory

Court Concludes That COVID-19 Losses Can Qualify as “Direct Physical Loss”

September 28, 2020 — Lorelie S. Masters & Jorge R. Aviles - Hunton Andrews Kurth
In a victory for policyholders, a federal district court found that COVID-19 can cause physical loss under business-interruption policies. In Studio 417, Inc., et al. v. The Cincinnati Insurance Co., No. 20-cv-03127-SRB (W.D. Mo. Aug. 12, 2020), the court rejected the argument often advanced by insurers that “all-risks” property insurance policies require a physical, structural alteration to trigger coverage. This decision shows that, with correct application of policy-interpretation principles and strategic use of pleading and evidence, policyholders can defeat the insurance industry’s “party line” arguments that business-interruption insurance somehow cannot apply to pay for the unprecedented losses businesses are experiencing from COVID-19, public-safety orders, loss of use of business assets, and other governmental edicts. The policyholders in Studio 417 operate hair salons and restaurants asserting claims for business interruption. In suing to enforce their coverage, the policyholders allege that, over the last several months, it is likely that customers, employees, and/or other visitors to the insured properties were infected with COVID-19 and thereby infected the insured properties with the virus. Their complaint asserts that the presence of COVID-19 “renders physical property in their vicinity unsafe and unusable.” Unlike some other complaints seeking to enforce such coverage, it also alleges that the presence of COVID-19 and government “Closure Orders” “caused a direct physical loss or direct physical damage” to their premises “by denying use of and damaging the covered property, and by causing a necessary suspension of operations during a period of restoration.” Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Jorge R. Aviles, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Aviles may be contacted at javiles@HuntonAK.com Read the court decision
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Three Reasons Lean Construction Principles Are Still Valid

February 27, 2019 — Kevin Clary - Construction Executive
When lean principles were first introduced to the construction industry five years ago, project managers raced to implement the production method. The internet was rife with content about how to easily overhaul a jobsite and transform it into the picture of efficiency. However, the number of lean construction critics have multiplied significantly in recent months. They claim concepts are near impossible to implement or, even worse, automation eliminates the need for deliberate human processes. These ideas are misleading. Lean principles are still valid for a few key reasons. 1. Lean involves seeing things from the customer’s point of view One of the defining principles of lean construction is understanding value from the customer’s point of view. The concept encourages stakeholders, including the owner, contractor and supplier, to come together during the early planning stage of the project. The significant level of trust created from this exercise can’t be replicated by machinery. It involves compassion, collaboration and a sense of creativity that artificial intelligence is yet to possess. Moreover, the rapport gained through this service-oriented exercise is worth the time investment. Reprinted courtesy of Kevin Clary, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Modified Plan Unveiled for Chicago's Sixth-Tallest Tower

February 15, 2018 — Jeff Yoders – ENR
The Chicago Plan Commission on Jan. 18 approved a $700-million development that, as presented, would include the city’s sixth-tallest building. Read the court decision
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Reprinted courtesy of Jeff Yoders, Engineering News-Record
Mr. Yoders may be contacted at yodersj@enr.com

If Passed, New Bill AB 2320 Will Mandate Cyber Insurance For State Government Contractors

September 07, 2020 — Makenna Miller & Jeffrey Dennis - Newmeyer Dillion
Earlier this year, Assemblyman Edwin Chau (D-Monterey Park) introduced Assembly Bill 2320. AB 2320, if passed, would require any business that contracts with the state and has access to records containing personal information protected under the state’s Information Practices Act (IPA) to maintain cyber insurance coverage. Information covered under the IPA includes names, social security numbers, physical descriptions, home addresses, home telephone numbers, education, financial matters, and medical or employment history. Requiring contractors to maintain cyber insurance will likely both shift the costs of cyberattacks from taxpayers to the private sector, while also encouraging robust cyber security practices among businesses of all sizes. While the bill has not yet passed, businesses will be best served by implementing and improving cybersecurity practices now in order to attain lowest premium rates in the future. Incentivizing Best Practices With the adoption of AB 2320, businesses will be incentivized to increase their security posture in order to receive lower premiums from insurers. Simultaneously, insurers will be incentivized to mandate best practices from their insureds in order to mitigate their risk of having to pay out on cyber insurance policies. Thus, cyber insurance will work as a vehicle to increase best practices in businesses and subsequently decrease vulnerabilities to cyberattacks. Reprinted courtesy of Makenna Miller, Newmeyer Dillion and Jeffrey Dennis, Newmeyer Dillion Ms. Miller may be contacted at makenna.miller@ndlf.com Mr. Dennis may be contacted at jeff.dennis@ndlf.com Read the court decision
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Appreciate The Risks You Are Assuming In Your Contract

February 10, 2020 — David Adelstein - Florida Construction Legal Updates
APPRECIATE THE RISKS YOU ARE ASSUMING IN YOUR CONTRACT. Otherwise, those risks will come back and bite you in the butt. This language is not capitalized for naught. Regardless of the type of contract you are entering into, there are risks you will be assuming. You need to appreciate those risks because there may be insurance you can obtain to cover that risk. For instance, exculpatory provisions (or get-out-of-jail provisions) in contracts are enforceable if they are unambiguous. “Such provisions are deemed to be unambiguous and enforceable when the language unequivocally demonstrates a clear and understandable intention for the defendant to be relieved from liability such that an ordinary and knowledgeable person will know what he or she is contracting away.” Pillay v. Public Storage, Inc., 44 Fla.L.Weekly D2744c (Fla. 4th DCA 2019). An example of an exculpatory provision can be found in the public storage rental contract found in Pillay that read: (1) ALL PERSONAL PROPERTY IS STORED BY OCCUPANT AT OCCUPANT’S SOLE RISK. (2) Owner and Owner’s agents . . . will not be responsible for, and Tenant releases Owner and Owner’s agents from any responsibility for, any loss, liability, claim, expense, damage to property . . . including without limitation any Loss arising from the active or passive acts, omission or negligence of Owner or Owner’s agents. 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

Continuing Breach Doctrine

May 28, 2024 — David Adelstein - Florida Construction Legal Updates
Have you ever heard of the “continuing breach” doctrine? Probably not. It is not a doctrine commonly discussed. It’s a doctrine used to try to argue around the statute of limitations. In an older Southern District Court of Florida case, Allapattah Services, Inc. v. Exxon Corp., 188 F.R.Ed. 667, 679 (S.D.Fla. 1999), the court explained: “Under this [continuing breach] doctrine, a cause of action for breach of a contract does not begin to accrue upon the initial breach; rather, on contracts providing serial performance by the parties, accrual of a breach of contract cause of action commences upon the occurrence of the last breach or upon termination of the contract.” Recently, this doctrine came up in an opinion by Florida’s Fifth District Court of Appeal. In Hernando County, Florida v. Hernando County Fair Association, Inc., 49 Fla.L.Weekly D947b (Fla. 5th DCA 2024), a plaintiff appealed the trial court’s dismissal with prejudice of its breach of contract claim based on the statute of limitations. The plaintiff claimed the defendant breached the contract by its failure to substantially redevelop property. The trial court dismissed based on the statute of limitations. However, the complaint alleged the defendant’s failure to comply “with numerous other intertwined, ongoing, and continuing contractual duties and obligations.” Hernando County, supra. The Fifth District reversed based on the continuing breach doctrine: “Where the nature of the contract is continuous, statutes of limitations do not typically begin to run until termination of the entire contract.” Id. quoting and citing Allapattah Servs., Inc. 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

This Times Square Makeover Is Not a Tourist Attraction

July 28, 2016 — Alisa Zevin - Engineering News-Record
The 80-year-old Bow Tie Building in the heart of New York City’s Times Square is undergoing a major renovation of retail space, but the tens of thousands of daily passersby will not see any construction activities: A 53-ft-tall dark-green plywood wall completely hides the 167,000-sq-ft structure. Read the court decision
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Reprinted courtesy of Alisa Zevin, Engineering News-Record
Ms. Zevin may be contacted at zevina@enr.com

Irene May Benefit Construction Industry

September 01, 2011 — CDJ STAFF

Noting that while it wasn’t the $15 billion disaster some predicted, Hurricane Irene still caused quite a bit of damage on its path up the Eastern Seaboard. Martha White, reporting for MSNBC cites Kinetc Analysis Corp. with an estimate of $7 billion in damage. Carl Van Horn, a professor of public policy at Rutgers University expected an initial decline in construction jobs, due to projects delayed due to the storm’s arrival, but he said, “a few weeks later, employment picks up as people rebuild.”

Kinetic says that one unknown is how much of the damage is insured. They expect only $3 billion of damage will be covered by insurance. This would likely put a drag on consumer spending, as homeowners would have to dig into their own pockets to pay for repairs, according to Karl Smith, associate professor of economics and government at the University of North Carolina at Chapel Hill.

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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES