Fairfield Connecticut Building Expert Directory

Pancakes Decision Survives Challenge Before Hawaii Appellate Court

March 12, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In 1997, the Hawaii Intermediate Court of Appeals (ICA) decided Pancakes of Hawaii, Inc. v. Pomare Prop. Corp., 85 Haw. 286, 944 P.2d 83 (Haw. Ct. App. 1997). Although not an insurance coverage case, Pancakes addressed the duty to defend in terms of a contractual indemnity obligation. Under challenge in a recent appeal before the ICA, the Court reaffirmed the holding in Pancakes. Arthur v. State of Hawaii, Dept. of Hawaiian Home Lands, 2015 Haw. App. LEXIS 109 (Haw. Ct. App. Feb. 27, 2015). The decision is long with detailed facts complicated and many indemnities running in favor of various parties. This post focuses on the decision's discussion of Pancakes. A resident, Mona Arthur, of the Kalawahine Streamside Housing Development, was killed when she apparently slipped and fell from a hillside adjacent to the project. She was on the hillside tending to her garden there. At the bottom of the hill was a two foot fence in front of a drainage ditch, where Mona allegedly hit her head. 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

What to Look for in Subcontractor Warranty Endorsements

February 03, 2020 — David M. McLain – Colorado Construction Litigation
With increasing frequency in the construction defect cases we defend, we are seeing commercial general liability insurance policies with “subcontractor warranty” endorsements. Also known as contractor or subcontractor special conditions, these endorsements could have severe and negative consequences for builders that do not comply with their requirements. In researching for this article, I reviewed six different endorsements used by six different carriers, all of which contained some or all of the following requirements:

The builder must have signed subcontract agreements with its subcontractors that require subcontractors to hold harmless, i.e., defend and indemnify, the builder for “bodily injury” or “property damage” claims caused by their negligence.
The subcontractors must maintain their own insurance with limits equal to or greater than the limits in the builder’s own policy, with limits of at least $1 million per occurrence.
The subcontractors’ insurance must not exclude the work being performed for the builder, e.g., the excavator’s policy cannot exclude earth movement claims, the subcontractor’s policy cannot exclude residential construction.
The subcontractors must maintain their own workers’ compensation and/or employer’s liability insurance.
The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that the builder has been added to the subcontractors’ insurance as an additional insured.
The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that their insurance carriers have agreed to provide waivers of subrogation in favor of the builder.

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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

Priority of Liability Insurance Coverage and Horizontal and Vertical Exhaustion

June 22, 2020 — David Adelstein - Florida Construction Legal Updates
Recently, I participated in a webinar involving the horizontal and vertical exhaustion of insurance coverage. Say what? This pertains to the PRIORITY of liability insurance coverage and the interface between a general contractor’s (or upstream party’s) primary insurance and the subcontractor’s (or downstream party’s) excess insurance, particularly when the general contractor is required to be indemnified by the subcontractor and named as an additional insured under the subcontractor’s liability policies. For instance, let’s assume the general contractor has a $2M primary policy and a $5M excess policy. Its subcontractor has a $1M primary and a $5M excess policy. The general contractor is an additional insured under the subcontractor’s policies and the subcontractor is required to contractually indemnify the general contractor. An issue occurs caused by the subcontractor’s negligence resulting in a $5M judgment against the general contractor and the subcontractor. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Finding Highway Compromise ‘Tough,’ DOT Secretary Says

May 05, 2014 — Alan Levin – Bloomberg
Divisions in Congress over boosting funding for bridge repairs and highway construction are making it difficult to pass a long-term measure in time to prevent a disruption in existing road projects, U.S. Transportation Secretary Anthony Foxx said. “I would say that we have a tough, a tough challenge ahead of us that hasn’t been solved for a long time,” Foxx said in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend. The Highway Trust Fund, financed by gasoline and diesel taxes, may soon not be able to meet its financial obligations, according to Foxx’s agency. The Obama administration on April 29 sent legislation to Congress proposing $302 billion for road and mass transit projects over four years, with part of the money coming from new taxes on company earnings overseas. Read the court decision
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Reprinted courtesy of Alan Levin, Bloomberg
Mr. Levin may be contacted at alevin24@bloomberg.net

Joint Venture Dispute Over Profits

January 27, 2020 — David R. Cook - AHC Construction and Procurement Blog
A recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits. One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Open & Known Hazards Under the Kinsman Exception to Privette

February 15, 2018 — Frances Ma & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP Publications & Insights
Gonzalez v. Mathis, 2018 WL 718528 confirms the difficulties a defendant will face when trying to overcome the Kinsman exception to the Privette doctrine on a dispositive motion when dealing with an open and obvious hazard. There, a professional window washer fell off a roof while walking along a parapet wall constructed by the owner of a home. The window washer filed suit against the homeowner and alleged three dangerous conditions on the roof: (1) the parapet wall forced those who needed to access a skylight to walk along an exposed two-foot ledge that lacked a safety railing; (2) dilapidated and slippery roof shingles; and (3) the lack of tie off points that would allow maintenance workers to secure themselves with ropes or harnesses. The homeowner filed a motion for summary judgment under Privette v. Superior Court (1993) 5 Cal.4th 689 and its progeny which prohibits an independent contractor from suing his or her hirer for workplace injuries (“Privette doctrine”). There are two exceptions to the Privette doctrine. First, a hirer cannot avoid liability when he or she exercises control over the manner and means in which a contractor does his or her work and that control contributes to the injuries sustained – known as the “Hooker exception” (premised on the holding of Hooker v. Department of Transportation (2002) 27 Cal.4th 198). Second, a hirer may be found liable if he or she fails to warn the contractor of a concealed hazard on the premises – known as the “Kinsman exception” (premised on the holding of Kinsman v. Unocal Corp. (2005)). Reprinted courtesy of Frances Ma, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Ma may be contacted at fma@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Basement Foundation Systems’ Getting an Overhaul

October 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder reported that “[a] new game-changing system, recently recognized for its energy-efficient composite approach to basement construction, soon could change how American builders construct foundations.” Epitome composite foundation walls from Composite Panel Systems (CPS) “was awarded the Composites and Advanced Materials Exposition’s Unsurpassed Innovation Award in Orlando, Fla., on Oct. 14.” The system “combines integrated stud cavities for mechanicals, insulation, the top plate, and a vapor barrier in a single step.” It has been approved for use in Wisconsin, and is expected to receive International Building code and International Residential Code compliance later this year. Read the court decision
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A Construction Stitch in Time

October 28, 2015 — Christopher G. Hill – Construction Law Musings
It’s a cliche for a reason that “A Stitch in Time Saves Nine.” Why? Because it is almost always cheaper and more efficient in the long run to get something right the first time than to fix it later. This old adage is true in life, and particularly true in the world of construction. Whether it’s measuring twice before making your bid, checking with your subcontractors and suppliers to be sure they haven’t missed anything when giving you a price, or yes (and you knew this was coming), being sure that your contracts are written as they should be and cover the bases. To use another construction related analogy, these types of basic practices create a great foundation for your construction project(s) that will (hopefully) see you through to a successful and profitable construction project. Aside from the last of my examples, how can adding a knowledgeable construction attorney help with laying this foundation? We construction lawyers spend our days either dealing with problems that have occurred (not ideal), anticipating risks that could occur (better, though can lead to a relatively cynical world view), and advising clients before the fact of the potential risks and how to best avoid them (best). Speaking from experience, I would much rather spend my time keeping my construction clients making money and avoiding the pitfalls of the “Murphy’s Law” governed world of construction than spend time with them in court. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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