Fairfield Connecticut Building Expert Directory

Collapse of Underground Storage Cave Not Covered

June 29, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The Eighth Circuit faced unusual facts in determining that the collapse of a cave serving as a storage facility was not covered under the policy. Westchester Surplus Lines Ins. Co. v. Interstate Underground Warehouse & Storage, Inc., 2020 U. S. App. LEXIS 83 8th Cir. Jan. 3, 2020). Interstate operated an underground storage facility in a cave that formerly housed a limestone mine. In 2014, Interstate experienced a series of "dome-outs," in which layers of rock destabilized, detached, and collapsed from above into the cave. Interstate's policy with Westchester included coverage for collapse of a "building" caused by "building decay." Westchester sought a declaratory judgment that Interstate's loss was not covered. The district court granted summary judgment for Westchester because the cause of the loss was not "building decay" within the meaning of the primary policy. 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

No Coverage for Tenant's Breach of Contract Claims

April 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The court granted summary judgment to the insurer, finding there was no duty to defend or indemnify a tenant/insured's contract-related claims. Erie Ins. Exch. v. Little Ducklings Daycare Associates, LP, 2017 Phila. Ct. Com. Pl. LEXIS 22 (Pa. D. Jan. 25, 2017). Little Ducklings Daycare Preschool ("tenant") leased from the Estate of Carmen Neri ("landlord") premises to run a day care center for five years. The lease identified two of tenant's members, Maryanne L. Hatzold and Thomas Hatzold, as guarantors for the lease. The Hatzolds ("Guarantors") delivered to the landlord a written lease guaranty agreement. The guarantee assured the full payment and satisfaction of the rent owed under the lease. 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

2022 California Construction Law Update

December 27, 2021 — Garret Murai - California Construction Law Blog
It’s been a trying year as we approach the end of 2021. From the pandemic approaching nearly two years to concerns regarding climate change to the impact of inflation on everything from the cost of groceries to housing affordability. During the first half of the 2021-2022 legislative session, a total of 2,421 bills were introduced in 2021 of which 836 made it to the Governor’s desk and 770 were signed into law. This is up from the 2,223 bills introduced in 2020 of which 428 bills made it to the Governor’s desk and 372 were signed into law, due in large part, to the fact that legislators were not required to shelter-in-place as they were in 2020. Not surprisingly, for the construction industry, many of the bills were focused on the hot topics of the year including housing affordability and climate change. However, there were also the typical changes to project delivery methods and a few changes to the Licensing Law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Beware of Personal-Liability Clauses – Even When Signing in Your Representative Capacity

January 31, 2018 — David R. Cook Jr. – Autry, Hall & Cook, LLP
When a contract is drafted by a party, the other party expects some level of one-sidedness in favor of the drafter. But there are times when a contract goes too far. There are certain provisions that most persons in the construction industry would find unacceptable, unfair, and beyond the pale – even for a one-sided contract. Such a provision was arguably found in an electrical subcontract at issue in a 2014 opinion by a three-judge panel of the Georgia Court of Appeals. Unfortunately, due to long-standing Georgia law, the panel was forced to apply the provision as written. In the case, a contractor hired a subcontractor to perform the electrical scope of work. When the subcontractor failed to pay a sub-subcontractor, the sub-subcontractor filed suit against the subcontractor, contractor, and the payment-bond surety. The contractor asserted a claim of indemnity against the subcontractor based on the sub-subcontractor’s claim. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Traub Lieberman Partner Stephen Straus Wins Spoliation Motion in Favor of Defendant

June 05, 2023 — Stephen D. Straus - Traub Lieberman
Traub Lieberman Partner Steve Straus represented a refrigeration installation and service company in a subrogation action filed by a property insurer after paying a claim related to extensive water damage at premises on Long Island, New York. The premises owner purchased a refrigerator, which was sold without a hose to connect to the water source inside the premises. The defendant retailer retained Traub Lieberman’s client to install the refrigerator. Rather than complete the installation using a new water line, the installer used the existing line from the refrigerator that was being replaced. Approximately one week after installation, the owner’s son discovered water on the floor near the refrigerator, and significant water damage in the basement of the residence. The owner filed a claim with the insurer, which sent an investigator to the premises. The retailer also sent a technician to investigate and replace the water supply line. It was reportedly determined that the original line had failed, causing the water release. After the repair, the owner’s son took possession of the old water line, which he kept for a couple of years and then discarded. The insurer initiated a subrogation action against the retailer and the installation company, alleging that the water release was caused by the defendants’ failure to replace the water line when the new unit was installed. Plaintiff claimed that photographs of the old line established that it had been damaged or defective. Read the court decision
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Reprinted courtesy of Stephen D. Straus, Traub Lieberman
Mr. Straus may be contacted at sstraus@tlsslaw.com

Can’t Get a Written Change Order? Document, Document, Document

August 29, 2018 — Todd M. Heffner - Smith Currie
Most construction contracts require that any changes to the work be made formally, in writing, via a change order, work directive, or similar written document. Frequently, however, changes to the work or extra work are communicated orally by the architect, engineer, or owner’s representative, instead of in writing. What is the contractor to do in such a situation? The best option is follow the provisions of the contract and demand a written change order before performing changed work. Unfortunately, the realities of construction sometimes make it impossible to get the changes in the proper format in a timely manner. Savvy contractors will maintain schedule and produce written documentation of the change in lieu of a formal change order or directive. But many contractors will simply proceed with the changed work, relying on the owner, architect, or engineer to do the right thing and stand by their oral instructions. Read the court decision
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Reprinted courtesy of Todd M. Heffner, Smith Currie
Mr. Heffner may be contacted at tmheffner@smithcurrie.com

The BUILDCHAIN Project Enhances Data Exchange and Transparency in the EU Construction Industry

January 23, 2023 — Aarni Heiskanen - AEC Business
Trace Labs, a WEB 3 developer, joins the EU’s efforts to create a smarter and more sustainable built environment with the BUILDCHAIN project. With its 11 EU partners, Trace Labs aims to improve efficiency, reduce errors, and increase transparency and trust in construction. Efficient, transparent, and trusted data exchange is a powerful tool for driving sustainability, resilience, and energy efficiency in construction. However, there are several obstacles to trusted data exchange in the industry today:

Data silos: Construction projects involve multiple parties and stakeholders, each of which may have its systems for storing and sharing information. This can lead to data silos and a lack of coordination, making it difficult to access and trust the data.
Lack of standardization: Construction projects may use different formats for storing and sharing data, leading to difficulties in comparing and combining information from various projects.
Data security: Construction projects often involve sensitive information, such as building plans, materials lists, and inspection results. Ensuring this information is secure and protected from unauthorized access can be a significant challenge.
Lack of incentives: There are often few incentives for construction companies and other stakeholders to share data and collaborate on projects, making establishing trust and transparency challenging.

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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

September 10, 2018 — Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog
In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion. The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES