FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Denial of Coverage For Bodily Injury After Policy Period Does Not Violate Public Policy

May 12, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Rhode Island Supreme Court agreed that the insurer had no coverage obligations for bodily injury occurring after the policy had been canceled. Hoesen v. Lloyd's of London, 2016 R.I. LEXIS 41 (R.I. March 24, 2016). The plaintiff, Mark Van Hoesen, was seriously injured on July 23, 2012, when he fell from a deck of his house. He sued his contractor, Brian Leonard, alleging that the deck had been negligently constructed. Lloyd's, Leonard's insurer, was later named as a defendant. Lloyd's admitted it issued the policy to Leonard, but it was cancelled on August 29, 2007. Even if it had not been canceled, the policy had expired long before the injuries alleged in plaintiff's complaint occurred. 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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U.S., Canada, Mexico Set New Joint Clean-Energy Goal

June 30, 2016 — Tom Ichniowski – Engineering News-Record
The U.S., Canada and Mexico have agreed to boost their combined clean-energy generation to 50% of electricity production by 2025, from 37% last year. Read the court decision
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Reprinted courtesy of Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com

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Nevada Supreme Court Holds That Insureds Can Use Extrinsic Evidence to Prove Duty to Defend

February 28, 2022 — Bethany L. Barrese - Saxe Doernberger & Vita
The recent Nevada Supreme Court ruling in Zurich American Insurance Company v. Ironshore Specialty Insurance Company1 benefits insureds seeking to establish an insurer’s duty to defend. As a matter of first impression, the court clarified that insureds have the burden to prove that an exception to a policy exclusion applies in order to trigger the insured’s duty to defend. However, while the policyholder may use extrinsic evidence to establish the insurer’s duty to defend, the insurer may not use extrinsic evidence to deny that duty. The facts of the underlying claim are set in the 2000s when the insured subcontractors worked to build thousands of homes in Nevada. The subcontractors were insured by Zurich American Insurance Company (“Zurich”) during that period. After the homes were complete, the subcontractors switched from Zurich to Ironshore Specialty Insurance Company (“Ironshore”). Between 2010 and 2013, homeowners brought claims against the subcontractors alleging that the properties were damaged due to construction defects. The subcontractors tendered the claims to Zurich as the insurer at the time of construction. Zurich then sought defense and indemnification from Ironshore. Ironshore denied coverage under a “continuing and progressive” policy exclusion, claiming that the property damage occurred due to faulty work that predated the Ironshore policy. Notably, an exception to the exclusion applied if “sudden and accidental” property damage occurred within the Ironshore policy period. Given that the underlying lawsuits did not include specific allegations describing when or how the property damage occurred, Ironshore and Zurich disagreed on whether the exception to the exclusion was triggered.. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita
Ms. Barrese may be contacted at BBarrese@sdvlaw.com

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Notice of Completion Determines Mechanics Lien Deadline

August 13, 2019 — William L. Porter - Porter Law Group
The California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met. Know Your Mechanics Lien Filing Deadlines Generally Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows: Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Expert Excluded After Never Viewing Damaged Property

October 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Plaintiff's expert was excluded for never having seen the property. Wehman v. State Farm Fire and Casualty Co., 2015 U.S. Dist. LEXIS 117445 (D. N.J. Sept. 3, 2015). Plaintiff's home was damaged by Superstorm Sandy on October 29, 2012. He reported his loss to State Farm on Octorber 25, 2013, claiming that some roof shingles had come loose during the storm. No other damage was reported. An investigator for State Farm visited the property. The investigator determined that the damage to the roof was not caused by Sandy, but by age, wear and tear, all of which were excluded causes under the policy. Plaintiff informed the investigator there was no damage to the interior of the home and denied the investigator's request to enter the house to inspect. Plaintiff then sued State Farm for breach of contract and bad faith. Plaintiff designated Timothy Fife of Gulf Coast Estimating Services as his expert in the litigation. Fife's estimate of damages consisted of twelve pages of allegedly required repairs for both the interior and exterior of Plaintiff's property totaling $86,351.01. Fife never visited the property to inspect and never spoke with Plaintiff regarding the condition of the property prior to Sandy or the damage allegedly caused by Sandy. Instead, Fife relied upon an inspection conducted by someone else. 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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Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District

August 17, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.). California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts. In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Project-Specific Policies and Products-Completed Operations Hazard Extensions

May 31, 2021 — Jeremiah M. Welch - Saxe Doernberger & Vita
1. Understanding the “Products-Completed Operations Hazard” ISO commercial general liability (“CGL”) policies use the term “products-completed operations hazard” (“PCOH”) to define a category of risk which is treated specially by certain exclusions within the policy and often subject to separate limits of insurance. In construction, we think about PCOH as being about coverage for completed work. Bodily injury and property damage arising out of completed work is a significant construction risk. Most construction contracts include warranty and indemnity obligations for completed work. All states allow lawsuits to be brought alleging bodily injury or property damage because of completed work based on common law. Contract and common law claims are subject to statutes of limitation – laws which define the time in which suits must be brought. Most states provide exceptions to their statutes of limitation for common law claims – the most common example is an extension to file a lawsuit based on a latent defect until the defect is discovered. Most states also have “statutes of repose” – laws that set a date after which suit may no longer be brought, no matter what the circumstances are. A construction contractor, therefore, has potential liability until the statute of repose period has expired. Thus, a contractor looks to ensure that it has coverage for the PCOH for its full statute of repose liability period. Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita
Mr. Welch may be contacted at JWelch@sdvlaw.com

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Claim Against Broker Survives Motion to Dismiss

January 25, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insured's complaint against its broker for failure to secure adequate coverage survived a motion to dismiss. Broecker v. Conklin Prop., LLC, 2020 N.Y. App. Div. LEXIS 7399 (Dec. 2, 2020). Conklin Property, LLC purchased real property and entered into a contract with JJC Contracting, Inc. for construction and renovation of the property. The broker, Total Management Corp. (TMC) was retained by Conklin to secure insurance for the construction phase of the renovation project. During the renovation, an employee of JJC was injured at the property and died. The employee's estate then sued Conklin. US Underwriters, the insurer, disclaimed coverage pursuant to an exclusion for bodily injury to contractors and subcontractors and their workers. 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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