Fairfield Connecticut Building Expert Directory

San Francisco Bay Bridge Tower Rod Fails Test

May 20, 2015 — Beverley BevenFlorez-CDJ STAFF
The San Francisco Chronicle reported that “[o]ne of the steel rods anchoring the tower of the new Bay Bridge eastern span has failed a key integrity test, suggesting it became corroded and broke during years when it was soaking in water.” Hundreds of other rods have also been steeped in water, which raises concerns about how stable the bridge might be during a major earthquake. Gareth Lacy, a Transportation Agency spokesperson, told the Chronicle that “[t]hey are investigating why one seismic rod at the base at the tower moved when it was pulled by the machine,” Lacy said. “It did not carry the expected load, and the next step is to remove it to fully investigate its condition.” Read the court decision
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“Slow and Steady Doesn’t Always Win the Race” – Applicability of a Statute of Repose on Indemnity/Contribution Claims in New Hampshire

November 24, 2019 — Rahul Gogineni - The Subrogation Strategist
In Rankin v. South Street Downtown Holdings, Inc., 2019 N.H. LEXIS 165, the Supreme Court of New Hampshire considered, pursuant to a question transferred by the trial court, whether RSA 508:4-b, the statute of repose for improvements to real property, applies to indemnity and contribution claims. The court concluded that based upon the plain reading of the statute, it applies to indemnity and contribution claims. As noted by the court, a holding to the contrary would violate the intent of a statute of repose, which is to establish a time limit for when a party is exposed to liability. In Rankin, after falling and injuring himself while leaving a building, John Rankin and his wife brought an action against the property owner, South Street Downtown Holding, Inc. (South Street) in 2017. South Street subsequently filed a third-party complaint against multiple parties including an architectural company, Wagner Hodgson, Inc. (Wagner), who was involved in a renovation project at the property. The project was substantially complete in 2009. Wagner responded by moving to dismiss the action, arguing that South Street’s indemnification and contribution claims were barred by the applicable statute of repose. RSA 508:4-b specifically states,

Except as otherwise provided in this section, all actions to recover damages for injury to property, injury to the person, wrongful death or economic loss arising out of any deficiency in the creation of an improvement to real property, including without limitation the design, labor, materials, engineering, planning, surveying, construction, observation, supervision or inspection of that improvement, shall be brought within 8 years from the date of substantial completion of the improvement, and not thereafter. (Emphasis added).

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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

Illinois Town’s Bond Sale Halted Over Fraudulent Hotel Deals

June 26, 2014 — William Selway and Elizabeth Campbell – Bloomberg
A city outside Chicago was blocked from selling bonds after the U.S. Securities and Exchange Commission accused it of defrauding investors and steering secret fees to a municipal official. The case against Harvey, Illinois, a struggling city of 25,000 battered by poverty and crime, involves about $14 million in bonds sold from 2008 to 2010 that were to pay for development of a Holiday Inn hotel and conference venue. The SEC said that the city hoodwinked investors by using $1.7 million to pay payroll and other operating expenses, while the hotel stands in disrepair with holes in its facade, exposed studs and a gutted interior. The SEC said Comptroller Joseph Letke, 55, also profited by receiving $269,000 in undisclosed payments while advising the developer of the ill-fated project. Mr. Selway may be contacted at wselway@bloomberg.net; Ms. Campbell may be contacted at ecampbell14@bloomberg.net Read the court decision
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Reprinted courtesy of William Selway and Elizabeth Campbell, Bloomberg

Out of the Black

May 30, 2022 — John Drentlaw - Construction Executive
Even if you previously weren’t familiar with the term “black swan event,” you’ve likely become intimately familiar with what one looks like over the past two years. Coined by author Nassim Taleb in his book The Black Swan: The Impact of the Highly Improbable, the term refers to a rare, unpredictable event—perhaps, say, a pandemic—that has an extreme impact. “Extreme” certainly seems to be an accurate description of the impact that the COVID-19 pandemic has had on the construction industry, at nearly every level. The Commercial Construction Index (CCI) fell from 74 to 56 during Q2 2020 and remained statistically unchanged through Q3 of that year. Recovery has been slow, with the CCI remaining eight points below pre-pandemic levels through the end of 2021. Prices for raw materials such as lumber and steel have been extremely volatile, reaching historic highs and dramatic lows. March and April of 2020 alone saw 1.1 million jobs disappear from the industry—roughly half as many jobs as were lost throughout the entire Great Recession (although many of these jobs have since returned). While the industry has persevered through what should be the worst of these effects, many contractors and project owners are now wondering: How can we predict the next black swan event? Reprinted courtesy of John Drentlaw, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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EPA Coal Ash Cleanup Rule Changes Send Utilities, Agencies Back to Drawing Board

February 21, 2022 — Corinne Grinapol - Engineering News-Record
The U.S. Environmental Protection Agency plans to deny requests by three power facilities for extended deadlines to close unlined coal ash impoundments that are risks to groundwater, while offering only a provisional extension to another. The decision came as part of a larger agency push to strengthen regulation of coal combustion residuals disposal and facilities with unlined storage. Reprinted courtesy of Corinne Grinapol, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Benefit of the Coblentz Agreement and Consent Judgment

August 26, 2024 — David Adelstein - Florida Construction Legal Updates
If you are not familiar with the concept of what is commonly known as a Coblentz agreement relative to an insurance coverage dispute, review these prior postings (here and here and here). This is a good-to-know agreement if you are a claimant and need to consider an avenue of collection if the insured’s carrier denies coverage out of the gate (meaning the carrier has denied both the duty to defend and the duty to indemnify). A recent Eleventh Circuit Court of Appeals opinion demonstrates the Coblentz agreement concept. In Barrs v. Auto-Owners Ins. Co., 2024 WL 3673089 (11th Cir. 2024), an owner asserted a construction defect claim against its contractor. The owner hired the contractor to deconstruct a building and the contractor hired a demolition subcontractor. The owner noticed work was not being performed and materials (e.g., lumber) were missing; the demolition subcontractor had stolen materials. The subcontractor was terminated, and the owner claimed the contractor’s negligence allowed the theft and delayed his project. The contractor’s commercial general liability (CGL) insurer notified the insured-contractor that coverage did not exist and refused to defend the contractor. The owner sued the contractor under various theories of liability. The owner and contractor entered into a settlement agreement (i.e., the Coblentz agreement) where the contractor “admitted liability in the amount of $557,500.00….A consent judgment was entered against [the contractor] that closely tracked the settlement agreement but did not indicate which portion of the damages award was attributed to which claims. The agreement also assigned [owner] and all of [the contractor’s] rights to claim coverage and to recover available funds under [the contractor’s CGL policy].” 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

Relief Bill's Highway Funds Could Help Construction Projects

January 04, 2021 — Tom Ichniowski - Engineering News-Record
Among the many provisions in the coronavirus relief bill, one key item is $10 billion to help state highway agencies make up for losses in state fuel taxes and other revenue due to the pandemic-caused falloff in traffic this year. Construction is one of a list of several eligible uses for the money—one of only a few construction funding provisions in the relief measure. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Coverage for Injury to Insured’s Employee Not Covered

June 10, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The employee exclusions in the employer's CGL and Umbrella policies barred coverage. Piatt v. Indiana Lumbermen's Mut. Ins. Co., 2015 Mo. LEXIS 32 (Mo. April 28, 2015). Linda Nunley was killed while working for Missouri Hardwood Charcoal, Inc. The kiln's large steel door had been removed and was leaning upright against another kiln when it blew over and crushed Ms. Nunley. Her family filed a wrongful death suit against Junior Flowers, the company's sole owner, director, and executive officer. The complaint alleged that Flowers was negligent in ordering employees to lean the kiln doors upright, even though he knew it was unsafe. The complaint further alleged that Flowers breached a personal duty of care owed to Ms. Nunley and that his actions were "something more" that a breach of the company's duty to provide a safe workplace. Flowers requested a defense under CGL and Umbrella policies issued by Lumbermen's. The policies insured Missouri Hardwood and its executive officers, but excluded liability for a work-related injury to an "employee of the insured." The policies also had a "separation of insureds" provision, stating that the insurance applied "separately to each insured against whom claim is made or suit is brought." Lumbermen's denied coverage. 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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