Fairfield Connecticut Building Expert Directory

Fourth Circuit Finds Insurer Reservation of Rights Letters Inadequate to Preserve Coverage Defenses Under South Carolina Law

January 17, 2023 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Stoneledge at Lake Keowee Owners Ass'n v. Cincinnati Ins. Co., 2022 U.S. App. LEXIS 34292 (D.S.C. Dec. 13, 2022), the Fourth Circuit Court of Appeals addressed the adequacy of reservation of rights letters issued by Builders Mutual Insurance Company (“Builders Mutual”) and Cincinnati Insurance Company (“Cincinnati”) to their insureds, Marick Home Builders, LLC (“Marick”) and Rick Thoennes (“Thoennes”), Marick’s managing member, for an underlying construction defect lawsuit. In short, the Fourth Circuit found that the reservation letters were inadequate to preserve the insurers’ coverage defenses because they did not sufficiently explain the basis of the carriers’ position. Stoneledge, a homeowners association, managed a community of 80 townhomes on South Carolina’s Lake Keowee. In 2009, Stoneledge brought suit against Marick and Thoennes, among other defendants, alleging construction defects in the townhomes that resulted in water intrusion and other physical damage. Marick and Thoennes held commercial general-liability policies through Cincinnati and Builders Mutual covering, in relevant part, “property damage” as defined by the policies. Builders Mutual issued policies covering the period from January 2004 to October 2007, and Cincinnati issued policies covering the period from April 2008 to April 2012. After Marick notified the insurers of the underlying action, Builders Mutual sent Marick two reservation of rights letters, one in May 2009 and one in July 2009. Cincinnati sent Marick one reservation of rights letter in March 2010. In March 2014, Stoneledge brought a declaratory-judgment action against Cincinnati seeking coverage for a judgment entered in the underlying action. The insurers removed the case to federal court, and in September 2016, Stoneledge amended its complaint, adding Builders Mutual as a defendant and seeking coverage for additional damages pursuant to a settlement agreement entered into by Stoneledge, Marick, Thoennes. The district court granted Stoneledge's motion for summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage. The insurers appealed to the Fourth Circuit, which affirmed. Read the court decision
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Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

Court of Appeals Discusses the Difference Between “Claims-Made” and “Occurrence-Based” Insurance Policies

May 31, 2021 — Garret Murai - California Construction Law Blog
As most contractors know, scope, price and time are the “big” three in any construction contract. Nearly as important, however, are the insurance provisions. Patricularly, when things go bad on a construction project. As the next case, Guastello v. AIG Specialty Insurance Company 61 Cal.App.5th 97 (2021) discusses, the difference between “claims-made” versus “occurrence-based” coverage can be extremely important. The Guastello Case In 2003 and 2004, subcontractor C.W. Poss Inc. built retaining walls in the Pointe Monarch housing development in Dana Point, California. Poss performed all related excavation, ground and grading work. In 2006, Thomas Guastello purchased a home in the development, and in January 2010, a retaining wall close to his lot suffered a massive failure that causing over $700,000 in damages. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

SDNY Vacates Arbitration Award for Party-Arbitrator’s Nondisclosures

April 13, 2017 — Justin K. Fortescue & Ciaran B. Way - White and Williams LLP
The US District Court for the Southern District of New York recently vacated an arbitration award finding that a party-appointed arbitrator’s undisclosed relationship with the party appointing him was significant enough to demonstrate evident partiality. Certain Underwriting Members at Lloyd’s of London, et. al. v. Ins. Companies of America, Inc., Nos. 16-cv-232 and 16-cv-374 (S.D.N.Y. March 31, 2017). In the arbitration, the panel was asked to determine whether the reinsurance contracts, covering workers’ compensation policies, only applied when multiple claimants were injured as the result of the same loss occurrence. After a three-day hearing, the arbitration panel issued an award in favor of the ceding company, Insurance Companies of America (ICA). After the award was issued, Lloyd’s discovered that ICA’s arbitrator had significant undisclosed relationships with principals at ICA and moved to vacate the award in federal court. Reprinted courtesy of Justin K. Fortescue, White and Williams LLP and Ciaran B. Way, White and Williams LLP Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com Ms. Way may be contacted at wayc@whiteandwilliams.com Read the court decision
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North Carolina Learns More Lessons From Latest Storm

October 16, 2018 — Pam Radtke Russell - Engineering News-Record
There’s no big wall planned to protect North Carolina’s coast from storm surge. There’s no massive tunnel system proposed to keep floodwaters away from populated areas. There are no grant-funded resilience competitions to help the state plan to manage water more effectively. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

House of the Week: Spanish Dream Home on California's Riviera

July 30, 2014 — Emily Heffter – Bloomberg
Famous clients of renowned Los Angeles architect Richard Landry are not known for their restraint. The Brentwood estate he designed for Tom Brady and Gisele Bundchen has a moat and just sold to Dr. Dre for $40 million. Michael Jackson died in a home Landry designed (a rental), and he has designed luxurious mansions for Wayne Gretzky, Michael Bolton, Mark Wahlberg and Kenny G. Still, homeowner Lorna Auerbach did something unique when Landry started designing her dream home in Pacific Palisades: She flew him to Spain, with her, for 10 days. Read the court decision
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Reprinted courtesy of Emily Heffter, Bloomberg

Health Officials Concerned About Lead-Tainted Dust Created by Detroit Home Demolitions

August 20, 2018 — Engineering News-Record
DETROIT (AP) — The nation's largest home-demolition program, which has torn down more than 14,000 vacant houses across Detroit , may have inadvertently created a new problem by spreading lead-contaminated dust through some of the city's many hollowed-out neighborhoods. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

New Case Alert: California Federal Court Allows Policy Stacking to Cover Continuous Injury

November 23, 2016 — William S. Bennett - Saxe Doernberger & Vita, P.C.
“Stacking” is a practice that is very favorable for policyholders, especially in environmental coverage cases involving extended pollution events. It allows a policyholder to combine the limits of multiple consecutive policies to cover continuous injury claims occurring over multiple policy periods. Without stacking, insurers can limit a policyholder’s recovery to a single policy limit. The Eastern District of California recently decided that a policyholder could stack the limits of six consecutive policies, where the occurrence was a continuous injury spanning all six policy years. Among other rulings, the court determined that the plain language of the policy under dispute did not prevent stacking. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

“If It Walks Like A Duck . . .” – Expert Testimony Not Always Required In Realtor Malpractice Cases Where Alleged Breach Of Duty Can Be Easily Understood By Lay Persons

April 17, 2019 — David W. Evans & Renata L. Hoddinott - Haight Brown & Bonesteel LLP
In Ryan v. Real Estate of the Pacific, Inc., et al. (No. D072724, filed 2/26/19), the Fourth Appellate District reversed a trial court’s granting of summary judgment and finding that expert testimony is not required in a professional negligence action where the claimed acts or omissions are within the understanding of a lay person. Daniel and Patricia Ryan hired Defendants David Schroedl, David Schroedl & Associates, and Real Estate of the Pacific, Inc., doing business as Pacific Sotheby’s International Realty to list, market, and sell their property. During an open house, the Ryans’ neighbor informed Defendant David Schroedl that he planned significant construction on his own property which would impact the Ryans’ property including, but not limited to, building a large addition that would obstruct the property’s westerly ocean view. Schroedl never disclosed this information to the Ryans or to the subsequent purchasers of the Ryans’ property. The day after escrow closed, the new owners’ interior decorator spoke with that neighbor who again explained his extensive remodeling plans. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Renata L. Hoddinott, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES