Fairfield Connecticut Building Expert Directory

Not So Unambiguous: California Court of Appeal Finds Coverage for Additional Insured

October 11, 2017 — Malcom Ranger-Murdock - Saxe Doernberger & Vita, P.C.
California’s Fourth District Court of Appeal recently determined that manuscript additional insured endorsements (AIEs), which purportedly provided coverage for ongoing operations only, were ambiguous. The court also found the insurer that issued the policies, American Safety Indemnity Co. (American Safety), acted in bad faith due to its systematic efforts to deny coverage to general contractors as additional insureds. In Pulte Home Corp. v. American Safety Indemnity Co.,1 Pulte Home Corporation (Pulte Home), a general contractor, sued American Safety for failure to defend Pulte Home as an additional insured in connection with two underlying construction defect lawsuits. American Safety contended that it did not have a duty to defend Pulte Home because the loss occurred after the construction project was complete and the applicable AIEs did not provide coverage for completed operations, and/or because the policy’s faulty workmanship exclusions applied. The trial court awarded $1.4 million in compensatory and punitive damages to Pulte Home, and American Safety appealed. Read the court decision
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Reprinted courtesy of Malcom Ranger-Murdock, Saxe Doernberger & Vita, P.C.
Mr. Ranger-Murdock may be contacted at mrm@sdvlaw.com

North Dakota Universities Crumble as Oil Cash Pours In

August 27, 2014 — Jennifer Oldham – Bloomberg
North Dakota is struggling to finance deteriorating public universities even as it experiences the biggest energy boom in its history, raising concern that less prosperous states will face more serious funding challenges. Students returning this week will attend classes in buildings without adequate ventilation or fire detection systems and in historic landmarks with buckling foundations. A space crunch is making it difficult for researchers to obtain grants and putting the accreditation of several programs at risk, administrators say. “It’s embarrassing,” said North Dakota state Representative Kathy Hawken, a Republican from Fargo who sits on the higher education funding and budget committees. “We have a divided legislature on higher ed: Some think we put too much money into it and some think we don’t put enough. Buildings aren’t people, so we don’t put dollars there.” Read the court decision
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Reprinted courtesy of Jennifer Oldham, Bloomberg
Ms. Oldham may be contacted at joldham1@bloomberg.net

Apartment Projects Fuel 13% Jump in U.S. Housing Starts

May 19, 2014 — Michelle Jamrisko and Hui-yong Yu – Bloomberg
A surge in construction of multifamily dwellings in April propelled U.S. housing starts to the highest level in five months, helping overcome slack demand for single-family homes. Housing starts climbed 13.2 percent to a 1.07 million annualized rate following March’s 947,000 pace, according to figures released today by the Commerce Department in Washington. Another report showed a measure of consumer confidence unexpectedly declined from a nine-month high. An almost 40 percent increase in construction starts on projects such as condominiums and apartment buildings accounted for almost all of the April gain, as single-family activity was held back by declining affordability. The report highlights a shift in demand for housing in the wake of the financial crisis, which left many Americans wary of taking on new debts. Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net; Hui-yong Yu may be contacted at hyu@bloomberg.net Read the court decision
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Reprinted courtesy of Michelle Jamrisko and Hui-yong Yu, Bloomberg

JAMS Announces Updated Construction Rules

June 21, 2021 — JAMS
Irvine, Calif. – JAMS, the largest private provider of alternative dispute resolution (ADR) services worldwide, is pleased to announce it has revised and updated its Construction Arbitration Rules & Procedures and Expedited Construction Arbitration Rules & Procedures, effective June 1. These Rules were updated to reflect the latest developments and trends in construction arbitration. In response to the transition to virtual and hybrid proceedings, Rule 22 makes explicit the arbitrator’s full authority to conduct the hearing in person, virtually or in a combined form, as well as with participants in more than one geographic location. To support access to case documents throughout the proceedings, Rule 8 aligns electronic filing and service with the functionality of JAMS Access, a centralized, secure online case management platform. Additional rules were created or revised to clarify and strengthen the authority of the arbitrator. Key changes include allowing an arbitrator to withhold approval of any intended change in party representation that could compromise the proceedings or the final award, to set a hearing without consulting a party that he or she reasonably believes will not participate and to permit a party to file a motion for summary disposition of a claim if the arbitrator believes that party has demonstrated the motion is likely to succeed. About JAMS – Local Solutions. Global Reach. Founded in 1979, JAMS is the largest private provider of alternative dispute resolution services worldwide. JAMS successfully resolves and manages business and legal disputes by providing efficient, cost-effective and impartial ways to overcome barriers at any stage of conflict. JAMS offers customized in-person, virtual and hybrid resolution services locally and globally through a combination of industry-specific experience, first-class client service, the latest technology and highly trained mediators and arbitrators. Read the court decision
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Reprinted courtesy of JAMS

Subcontractor Exception to "Your Work" Exclusion Does Not Apply to Coverage Under Subcontractor's Policy

January 26, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Arizona Court of Appeals overturned the trial court's determination that the general contractor was entitled to coverage under the subcontractor's exception to the "Your Work" exclusion. Double AA Builders v. Preferred Contrs. Ins. Co., 2016 Ariz. App. LEXIS 294 (Ariz. Ct. App. Dec. 30, 2016). Harkins Theatres hired Double AA Builders, Ltd. to serve as general contractor to build a theater complex. Double AA subcontracted with Anchor Roofing, Inc. to install the roof. Anchor was the "Named Insured" under a policy issued by Preferred Contractors Insurance Company, LLC. Double AA was an "Additional Insured" under the Preferred policy. 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

Terminating the Notice of Commencement (with a Notice of Termination)

July 19, 2017 — David Adelstein - Florida Construction Legal Updates
The notice of commencement is important for purposes of construction lien priority. Stock Bldg. Supply of Florida, Inc. v. Soares Da Costa Const. Services, LLC, 76 So.3d 313, 317 (Fla. 3d DCA 2011) (“[A] notice of commencement serves to determine the priority of liens under the Construction Lien Law.”). A lien relates back in time to the date the notice of commencement was recorded assuming the notice of commencement is still in effect when the lien is recorded (or an amended noticed of commencement is recorded). Lien priority is very important and the reason why a contractor should always want to ensure there is an effective notice of commencement in place rather than an expired notice of commencement. For the same reasons why a contractor wants to ensure there is an effective notice of commencement, there are times an owner wants to terminate a notice of commencement. An owner may want to terminate the potential priority of a construction lien. For instance, say the owner is refinancing or obtaining a construction loan in the midst of construction. A lender will want to ensure its mortgage maintains first priority and certainly priority over a potential construction lien. Otherwise, why would a lender finance the construction if it does not maintain first priority. It generally will not. Thus, an owner needs to terminate the notice of commencement so that the closing occurs on the loan and the mortgage recorded before a new notice of commencement is recorded and construction continues. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Miller Act Claim for Unsigned Change Orders

June 30, 2016 — David Adelstein – Florida Construction Legal Updates
Contracts and subcontracts often contain language that requires change orders to be in writing and that no change order work shall be performed unless agreed to in advance in a signed change order. Oftentimes change order work is performed but the parties have not complied with the strict requirements of the contract by having this work signed off by the parties in a change order prior to the commencement of the work. Well, can such requirements be waived? If so, can such change orders form the basis of a Miller Act claim? The answer is generally yes provided the party arguing waiver can support the waiver with evidence (that the other party voluntarily relinquished the requirements through its course of conduct / actions). Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Incorrect Information Provided on Insurance Application Defeats Claim for Coverage

July 31, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024). Snell was hired by a family, the Westons, to turn an above ground trampoline into a ground level trampoline. This involved various tasks like tree pruning and removal, installation of shrubs, trees, and sod, and setting up a sprinkler irrigation system. The trampoline aspect of the project involved site work to make a place for the trampoline and assembly and installation of the trampoline. The site work included excavation of a pit, installation of a drain and drainage sand, excavation of a trench to install a drainage pipe, installation of the drainage pipe and of a drain pump, construction of concrete block retainer walls and installation of a wood cap on the retainer walls. Then, Snell unboxed the trampoline, assembled it, and lowered it into the pit. A few years later, a visitor to the Weston home sued the Westons for injuries to his daughter suffered on the trampoline. The complaint alleged the daughter was injured when she "fell off of the trampoline and struck her face on the wooden board" surrounding the tramline. The complaint was later amended to add Snell as a defendant. 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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