FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Governmental Action Exclusion Bars Claim for Damage to Insured's Building

November 27, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The lower court's decision finding no coverage based upon the governmental action exclusion was affirmed by the Appellate Court of Illinois. McCann Plumbing, Heating & Cooling v. Pekin Ins. Co., 2023 Ill.App. LEXIS 300 (Ill. App. Ct. Aug. 23, 2023). McCann purchased a building to use for its heating, ventilation, and air conditioning business. The building was surrounded by two unihhabited properties which often flooded. The city determined that a building on the adjacent property had to be demolished. In the course of destruction, the McCann's building was damaged, leaving a portion of their building open to the elements. McCann sought coverage from Pekin for damage incurred in the demolition. The policy provided coverage for "direct physical loss of or damage to" the covered property. Pekin denied coverage under the policy's governmental action exclusion, which provided,

We will not pay for loss or damage caused directly or indirectly by any of the following: . . . c. Governmental Action Seizure or destruction of property by order of governmental authority . . .

Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

SFAA Commends U.S. Senate for Historic Bipartisan Infrastructure Bill

August 16, 2021 — The Surety & Fidelity Association of America
August 10, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the U.S. Senate for passing the historic, bipartisan Infrastructure Investment and Jobs Act. The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband access. “Investing in infrastructure will create millions of jobs across the country, growing our national and local economies in both the short and long term,” said SFAA president and CEO, Lee Covington. “The surety industry fully supports this investment and will continue to provide the essential protections necessary to support our country’s infrastructure needs through our suite of products and services.” SFAA also commends the inclusion of the Van Hollen 2354 amendment to the bill, accepted by a unanimous vote of 97-0. The amendment requires payment and performance bonds on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), protecting taxpayers’ dollars, ensuring project completion, protecting local small business contractors and workers, and promoting economic growth. The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. https://www.surety.org/ Read the court decision
Read the full story...
Reprinted courtesy of

---

Can an Owner Preemptively Avoid a Mechanics Lien?

May 25, 2020 — William L. Porter - Porter Law Group
Various sections of the California Civil Code, beginning with section 8000, protect the right of contractors, subcontractors and suppliers in the construction industry to obtain payment for work performed and materials supplied to construction projects. Under these statutes, unpaid claimants are entitled to use mechanics liens, stop payment notices and other methods to protect their right to payment. Mechanics liens allow unpaid claimants to sell the property where the work was performed in order to obtain payment. Stop payment notices force the owner or the bank to set money aside to pay unpaid claimants. Article XIV of our California Constitution even elevates the mechanics lien remedy to a “constitutional right”. The system generally works well, and claimants are paid. As someone who practices and teaches construction law, I have noticed a seldom used statutory tool that seems to provide a mechanism for property owners under certain circumstances to prevent subcontractors and suppliers from imposing enforceable mechanics lien on property where work was performed. Under California Civil Code section 8520, it appears that all that an owner of property need do to avoid a mechanics lien on its property is to give a proper notice (per Civil Code section 8100 et seq.) to a person who has a mechanics lien right (a subcontractor or supplier) that the owner is invoking Civil Code section 8520 and that if the claimant is unpaid for work performed or materials supplied to the owner’s property that the claimant must either provide the owner with a stop payment notice or forfeit the right to a mechanics lien on the owner’s property. This would allow an owner to avoid a mechanics lien on its property if the claimant failed to send a stop payment notice to the owner. Providing the “notice” under Civil Code section 8100 appears to be easy. It can be sent by “registered or certified mail or by express mail or by overnight delivery by an express service carrier”. It can even be by “hand delivery”. As far as the notice itself, it would seem that it can be very simple and easily performed under the process described below, which can be implemented within the office of any owner or developer. Read the court decision
Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

---

Issues of Fact Prevent Insurer's Summary Judgment Motion in Collapse Case

January 17, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's effort to dismiss the insured's collapse case by motion for summary judgment failed. Bitters v. Nationwide Gen. Ins. Co., 2021 U.S. Dist. LEXIS 228523 (E.D. Pa. Nov. 30, 2021). The insured alleged that there was a "sudden and accidental direct physical loss" to his home caused by collapse due to hidden insect damage to the foundation. The insured came home to find the floor of a bedroom dropped down to the cement slab below. He filed a claim with Nationwide, but coverage was denied. Suit was filed and Nationwide moved for summary judgment. The policy provided coverage for a sudden and accidental collapse caused by hidden insect damage. A building or part of a building was not considered in the state of collapse if it was standing, even if it was in danger of falling low or caving in. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Resolve to Say “No” This Year

January 26, 2016 — Christopher G. Hill – Construction Law Musings
We hear all of the time how to “get to ‘yes'” and how doing so can lead to more business and of course more business leads to more profits. Purely logical, right? Without construction owners with work for general contractors to perform and general contractors hiring subcontractors to perform that work, construction grinds to a halt and clients and friends of mine in the construction industry don’t make money. For this to happen, “yes” has to happen more often than not. So, why the title of this post? Chalk it up to spending much if not all of my time as a construction attorney either anticipating or dealing with the Murphy’s Law ruled nature of the construction world or to the “Monday morning quarterback” nature of my profession, but I see numerous instances where not taking the job or signing the bad contract would have led to a better outcome than performing the work. What do I mean by this? I mean that as a construction company (particularly one that is lower down the “payment chain” and therefore less in control of the flow of money), you need to carefully evaluate not only the contract presented, but whether you get a good feeling about the party with whom you are contracting. Read the court decision
Read the full story...
Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

---

City of Seattle Temporarily Shuts Down Public Works to Enforce Health and Safety Plans

April 13, 2020 — Masaki J. Yamada - Ahlers Cressman & Sleight Blog
The Governor’s Stay Home, Stay Safe Order mandates that essential businesses must establish and implement social distancing and sanitation measures established by OSHA and the WA State DOH:

• OSHA and the OSHA Guidelines for Employers;
• Washington State DOH (referring to the CDC guidance).

With construction work continuing on essential construction projects, some jurisdictions, such as the City of Seattle, are taking additional steps to enforce and oversee the establishment and implementation of updated Health and Safety plans on construction projects. The City of Seattle’s Mayor Jenny Durkan announced yesterday a two-day temporary suspension of Public Works construction beginning on Thursday, April 9th, to conduct health and safety training for workers and update protocols. The announcement may be viewed here. The City of Seattle also sent a letter in this regard and asked all contractors and owners provide project-specific responses to the Washington Building Trades COVID-19 Construction Industry Emergency Requirements. Herein are the links to the letter and attached requirements. Read the court decision
Read the full story...
Reprinted courtesy of Masaki J. Yamada, Ahlers Cressman & Sleight
Mr. Yamada may be contacted at masaki.yamada@acslawyers.com

---

Building Stagnant in Las Cruces Region

November 20, 2013 — CDJ STAFF
There was an increase in the number of building permits issued in Las Cruces, New Mexico through the first ten months of 2013, but the 2,162 permits represent only a minimal increase over last year’s 2,158 permits. To make matters worse for building suppliers and workers, builders can “pull all the permits for a subdivision at one time but might not start some of those for six months,” said Lee Rawson, the owner of Rawson Builders Supply. For a comparison, during the building boom of 2006, Las Cruces issued 3,529 building permits. The values are down too. Although fewer permits were issued in 2012, their valuation was $147 million, while the marginally larger number in 2013 is worth only $128 million. As a result, the area is losing skilled labor. After 25 consecutive months of declining construction, workers are leaving the construction industry. Mr. Rawson noted that “you can’t just go find that skilled labor, it doesn’t exist.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Five-Year Statute of Limitations on Performance-Type Surety Bonds

December 01, 2017 — David Adelstein - Florida Construction Legal Updates
The statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998). This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

---