FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Florida Appellate Courts Holds Underwriting Manuals are Discoverable in Breach of Contract Case

February 14, 2022 — Andrea DeField & Adriana A. Perez - Hunton Insurance Recovery Blog
Recently, Florida’s First District Court of Appeals handed down a victory for policyholders when it affirmed a Circuit Court’s order compelling an insurer to produce its underwriting manual in a breach of contract action. In People’s Trust Insurance Co. v. Foster, No. 1D21-845 (Fla. 1st DCA Jan. 26, 2022), the policyholder, Mr. Foster, filed a breach of contract claim against his insurer, People’s Trust, after People’s Trust failed to pay his insurance claim for damage caused to Mr. Foster’s home due to a leaking water pipe. People’s Trust denied Foster’s claim because “Foster’s pipe damage predated the policy’s inception.” During discovery Foster requested People’s Trusts’ underwriting manual(s) in effect at the time his policy was issued or renewed. People’s Trust objected to the request. In response, Foster filed a motion to compel production of the underwriting manual(s). After a hearing, the Circuit Court granted Foster’s motion and People’s Trust sought a writ of Certiorari from the First District Court of Appeal to quash the order compelling production. Reprinted courtesy of Andrea DeField, Hunton Andrews Kurth and Adriana A. Perez, Hunton Andrews Kurth Ms. DeField may be contacted at adefield@HuntonAK.com Ms. Perez may be contacted at pereza@HuntonAK.com Read the court decision
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Sales of U.S. New Homes Decline After Record May Revision

July 30, 2014 — Victoria Stilwell – Bloomberg
Fewer new U.S. homes were sold in June than forecast and May data showed the biggest downward revision on record, painting a picture of a housing market that is struggling to gain traction. Sales of newly built homes declined 8.1 percent to a 406,000 annualized pace, the fewest since March and less than any economist surveyed by Bloomberg forecast, Commerce Department figures showed today in Washington. That followed a May reading of 442,000 that was 12.3 percent lower than estimated last month. Restrictive lending rules, limited land supply, higher mortgage rates and more expensive properties are keeping a lid on how much the housing recovery can accelerate. Continued employment gains and bigger increases in wages will be needed to support further growth in the industry, which has stalled since interest rates started climbing last year. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

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How to Protect the High-Tech Home

March 19, 2015 — Beverley BevenFlorez-CDJ STAFF
Remodeling explained how the new high-tech home gadgets can be vulnerable to “digital or actual break-ins” without the right security in place. Though it isn’t clear how often home hacking is occurring. "I haven't heard of any major hackers breaking into many houses at one time, and the likelihood that someone will try to break into your house by unlocking your door instead of smashing the window is probably low," Tim McInerney, director of product marketing for Savant told Remodeling. "But as devices get more popular and clear winners start to emerge, you may see more and more of those kinds of attacks. When there's a million of one type of connected thermostat out there, that creates more chances for hackers to test the connections and catch someone off-guard." Remodeling includes tips on making your home more secure, including changing the default device password, creating multiple networks, and consider hard-coding the hardware address. Read the court decision
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Implied Warranty Claims–Not Just a Seller’s Risk: Builders Beware!

May 10, 2021 — Carin Ramirez - Colorado Construction Litigation
One of the thorns in the side of every construction defect defense litigator is the implied warranty claim. The “implied warranty” is a promise that Colorado law is “implied” into every contract for a sale of a new home that the home was built in a workmanlike manner and is suitable for habitation. Defense attorneys dislike the implied warranty claim because it is akin to a strict liability standard. All that is required to provide the claim is that an aspect of construction is found to be defective — i.e., inconsistent with the building code or manufacturer’s installation instructions — regardless of whether the work was performed to the standard of care. The implied warranty claim is therefore easier to prove than a negligence claim, where a claimant must prove that a construction professional’s work fell below a standard of reasonable care. Additionally, it is not a defense to an implied warranty claim that the homeowners or the HOA are, themselves, partially liable for the defects where damage is due in part to insufficient or deferred maintenance, as it is for negligence claims. The only redeeming aspect to the implied warranty claim was that, until recently, it was believed that it could only be asserted by a first purchaser against the seller of an improvement, because the implied warranty arises out of the sale contract. Recently, the Colorado Court of Appeals opinion in Brooktree Village Homeowners Association v. Brooktree Village, LLC, 19CA1635, decided on November 19, 2020, extended the reach of the implied warranty — though just how far remains to be seen. Specifically, a division of the Court of Appeals held that an HOA can assert implied warranty claims on behalf of its members for defects in common areas, even where there is no direct contractual relationship between the parties to base the warranty upon. Read the court decision
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Reprinted courtesy of Carin Ramirez, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ramirez may be contacted at ramirez@hhmrlaw.com

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#12 CDJ Topic: Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015)

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
In his article, “Remediation Work Caused by Installation of Defective Tiles Not Covered,” attorney Tred R. Eyerly analyzed the Am. Home Assur. Co. case that involved a dispute between a developer and a subcontractor over fractured tiles: “On cross-motions for summary judgment, the court first found that the fracturing of the stone floor tiles caused by the subcontractor's defective installation was the result of an 'occurrence.' There was no evidence that the subcontractor knew that its tile installation work was defective before the tiles fractured. Instead, the fracturing was an unexpected consequence of the defective installation.” Everly continues, “But there was no ‘property damage.’ For the subcontractor to prevail, the defective installation work had to be considered separate and distinct from the physical manifestation of the defective work. Under California law, coverage resulted from construction defects that involved physical injuries to other parts of the construction project.” Everly concludes, “Because there was no genuine issues of material fact as to the potential for coverage, there was no duty to defend.” Read the full story... Read the court decision
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Mexico City Metro Collapse Kills 24 After Neighbors’ Warnings

May 17, 2021 — Max De Haldevang & Maya Averbuch - Bloomberg
The collapse of a long-troubled Mexico City metro track killed 24 people and put two of President Andres Manuel Lopez Obrador’s top allies in the line of fire Monday night, after a decade of safety concerns and probes surrounding the project. About 79 people were injured, Mayor Claudia Sheinbaum said Tuesday. A broken beam led to the incident on the Golden Line of the metro system, she said. An international agency and the attorney general’s office will investigate. Reprinted courtesy of Max De Haldevang, Bloomberg and Maya Averbuch, Bloomberg Read the court decision
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"Your Work" Exclusion Bars Coverage

July 06, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Although the appellate court agreed there was property damage caused by an occurrence, the "your work" exclusion barred the insured contractor's claim. King's Cove Marina, LLC v. Lambert Commercial Construction. LLC, 2019 Minn. App. LEXIS 389 (Minn. Ct. App. Dec. 16, 2019). King's Cover Marina sought to expand and remodel its main building. The marina hired Lambert to perform the remodeling project. Lambert hired Roehl Construction, Inc. as a subcontractor to install new concrete footings on the main level of the building and to provide concrete for the second-level mezzanine floor. After completion, the marina sued Lambert for breach of contract and negligence. The marina alleged that the concrete floors on the first and second levels were not constructed in accordance with industry standards or with project plans and specifications, resulting in excessive movement and cracking of the new concrete floors. Lambert tendered its defense to its insurer, United Fire & Casualty Company. United Fire defended under a reservation of rights and later sued Lambert for declaratory judgment. 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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Not so Fast – Florida’s Legislature Overrules Gindel’s Pre-Suit Notice/Tolling Decision Related to the Construction Defect Statute of Repose

May 11, 2020 — Rahul Gogineni - The Subrogation Strategist
As discussed in a prior blog post, in Gindel v. Centex Homes, 2018 Fla.App. LEXIS 13019, Florida’s Fourth District Court of Appeal held that when the plaintiffs provided a pre-suit notice in compliance with §558.004 of Florida’s construction defect Right-to-Cure statute, Fla. Stat. §§ 558.001 to 558.005, et. seq., they commenced a “civil action or proceeding,” i.e. an “action,” within the meaning of Florida’s construction defect Statute of Repose, Florida Statue § 95.11(3)(c). Thus, the court held that the plaintiffs commenced their action prior to the time Florida’s 10-year statute of repose period ended. In overturning the lower court’s dismissal of the action, the court found that because the Right-to-Cure statute, §558 of the Florida Statutes, sets out a series of mandatory steps that must be taken prior to bringing a judicial action, filing pre-suit notice of claim sufficiently constituted an “action” for purposes of Florida’s Statute of Repose. For various reasons, the parties appealed the decision to the Supreme Court of Florida. In July of 2019, before the Florida Supreme Court could decide whether to hear the case, the Florida legislature passed legislation that effectively overruled the decision. To overrule the decision, the Florida Legislature modified § 558.004 of Florida’s Right-to-Cure statute to expressly state that a notice of claim served pursuant to the Right-to-Cure statute does not toll the 10-year statute of repose period for construction claims. See Fla. Stat. § 558.004(d). Read the court decision
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Reprinted courtesy of Rahul Gogineni, White and Williams LLP
Mr. Gogineni may be contacted at goginenir@whiteandwilliams.com

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