FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Expanded Virginia Court of Appeals Leads to Policyholder Relief

January 29, 2024 — Michael S. Levine & Olivia G. Bushman - Hunton Insurance Recovery Blog
Exercising its newly expanded jurisdiction that now permits Virginia’s intermediate appellate courts to hear insurance coverage disputes, the Court of Appeals recently reversed a lower court decision that allowed a two-year “Suits Against Us” provision to serve as a basis for an insurer’s refusal to reimburse repair and replacement costs incurred more than two years after the date of loss. Bowman II v. State Farm Fire and Casualty Co., Record No. 1256-22-3 (Nov. 21, 2023). CAV (unpublished opinion). In the proceeding below, the circuit court found no justiciable controversy and dismissed the complaint where repairs to the policyholder’s fire-damaged home continued more than two years after the date of the fire. The circuit court relied on a two-year limitation in the policy that governed the period within which the policyholder must bring suit against the insurer. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Olivia G. Bushman, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Bushman may be contacted at obushman@HuntonAK.com Read the court decision
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Massive Wildfire Near Boulder, Colo., Destroys Nearly 1,000 Homes and Businesses

January 03, 2022 — Mark Shaw - Engineering News-Record
A wildfire, driven by wind gusts up to 105 mph, swept through 6,000 acres in suburban neighborhoods east of Boulder, Colo., destroying 991 homes and damaging 127 others in the towns of Superior and Louisville, according to estimates from the Boulder County sheriff’s office. Reprinted courtesy of Mark Shaw, Engineering News-Record Mr. Shaw may be contacted at shawm@enr.com Read the full story... Read the court decision
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Illinois Appellate Court Address the Scope of the Term “Resident” in Homeowners Policy

April 11, 2022 — James M. Eastham - Traub Lieberman
In Farmers Ins. Exch. v. Cheekati, 2022 IL App (4th) 210023, the 4th District Court of Appeals for the State of Illinois addressed whether the term “resident” in a homeowners policy included a tenant leasing the insured premises. The Insureds owned property which was insured through Farmers under a homeowner’s policy. Unable to sell the property, the Insureds entered into a two-year lease agreement with a tenant. Several months after entering into the lease agreement, the tenant allegedly sustained physical injuries inside of the rented premises when a staircase collapsed. The tenant sued the Insureds and the matter was tendered to Farmers. Thereafter, Farmers denied coverage based on an exclusionary provision in the homeowner’s policy. Specifically, the policy contained a "Liability Exclusions" section, which provided:

"Coverage E (Personal Liability) *** and personal injury coverage, if covered under this policy, do not apply to: Any insured or other residents of the residence premises. We do not cover bodily injury or personal injury to: (a) any insured; or (b) any resident of the residence premises, whether resident in the dwelling or a separate structure." (Emphases in original.)

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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

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Ohio subcontractor work exception to the “your work” exclusion

August 11, 2011 — CDCoverage.com

In Mosser Construction, Inc. v. Travelers Indem. Co., No. 09-4449 (6th Cir. July 14, 2011)(unpublished), claimant project owner Port Clinton contracted with insured general contractor Mosser for the construction of a building.  Following completion, Port Clinton sued Mosser for breach of contract seeking damages because of physical injury to the project occurring after completion resulting from defective backfill material that settled improperly.

Mosser’s CGL insurer Travelers denied a defense and Mosser filed suit against Travelers seeking a declaratory judgment. Mosser and Travelers filed cross-motions for summary judgment on the issue of whether the supplier of the backfill material?Gerken?qualified as a subcontractor for purposes of the subcontractor work exception to the “your work” exclusion—exclusion l.—for property damage to or arising out of Mosser’s completed work.   Mosser had purchased the backfill material from Gerken pursuant to a purchase order specifying that Gerken was to supply Mosser with an industry standard grade of backfill for use in the Port Clinton project.

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Reprinted courtesy of CDCoverage.com

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Federal Court Opinion Has Huge Impact on the Construction Industry

July 06, 2020 — Wally Zimolong - Supplemental Conditions
The United States District Court for the Eastern District of Pennsylvania in Philadelphia recently issued an opinion that should get the attention of any contractor or subcontractor performing work on a federal funded construction project. In U.S. ex rel IBEW Local 98 v. The Fairfield Company, the federal court held that a contractor on a SEPTA project could be held liable under the False Claims Act for failing to pay its workers under the Davis Bacon Act. The court found that liability was appropriate under the FCA even through the contractor did not knowingly violate the Davis Bacon Act. The court awarded the plaintiff over $1,000,000 in damages and an additional over $1,000,000 in attorneys fees. An Extremely Brief Primer on the FCA A full discussion of the FCA is beyond the realm of this blog post and you could write a book on FCA cases. But in a nutshell, the FCA prohibits a contractor from knowingly submitting a claim for payment to the federal government (or an entity receiving funding from the federal government, like SEPTA) that is false. Importantly, knowingly does not equal actual knowledge of the falsity of the claim. Rather, “reckless disregard of the truth or falsity” of the submission is sufficient. As explained below, this standard played an important role in the court’s decision and should give contractors performing work on federally funded projects pause. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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Residential Construction Rise Expected to Continue

May 10, 2013 — CDJ STAFF
Housingwire reports that Fannie Mae has predicted strong increases in housing starts over the last few years, with an expected return to normal by 2016. If this holds true, residential construction will include 2.5 million jobs. Read the court decision
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Protect Projects From Higher Repair Costs and Property Damage

March 04, 2024 — Michael Teng - Construction Executive
Every aspect of a jobsite costs more today, from materials and labor to tools and equipment. Take construction input costs for example. While relatively flat in 2023, they remain almost 40% higher than they were pre-pandemic. With borrowing costs still high in the face of a stubbornly strong economy, project financing will remain a challenge. Still, contractors are expected to break more ground in 2024, fueled in part by the CHIPS Act, the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. Despite wages growing and the labor market remaining tight, many businesses are expected to dive deeper into their backlogs. Meanwhile, the economy is expected to grow with a chance for a short and mild recession. As industry leaders gauge economic pressures, it’s clear businesses must manage their costs—and financial risks in 2024. It’s a year where insurance and safety should take priority. Below are economic trends to monitor, and insurance strategies to help protect this year’s bottom line. Reprinted courtesy of Michael Teng, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Claims for Bad Faith and Punitive Damages Survive Insurer's Motion for Summary Judgment

August 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for partial summary judgment seeking to dismiss claims for bad faith and for punitive damages. Van Der Weide v. Cincinnati Ins. Co., 2017 U.S. Dist. LEXIS 101735 (N.D. Iowa June 30, 2017). The homeowner sued the insured general contractor after water was found leaking into the home, causing significant water damage. Cincinnati rejected the general contractor's tender and denied any duty to defend, contending that the alleged defects were discovered after Cincinnati's policy period had ended. Cincinnati was advised that two experts for the insured would testify that the property damage occurred due to construction defects and that the damage began shortly after completion of the home. Cincinnati still refused to defend. 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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