Fairfield Connecticut Building Expert Directory

Massachusetts Appellate Court Confirms Construction Defects are Not Covered Under Commercial General Liability Policies

January 21, 2025 — Bill Wilson - Construction Law Zone
In a case of first impression in Massachusetts, Lessard v. R.C. Havens & Sons, Inc., 104 Mass. App. Ct. 572 (2024), the Appellate Court confirmed that construction defects, without more, do not constitute property damage within the meaning of a commercial general liability policy (CGL). In Lessard, the homeowners filed suit against an insured homebuilder for construction defects in their home. After the homeowners won a jury verdict, the homebuilder’s insurer intervened and sought a declaratory judgment that it owed no duty to indemnify the homebuilder under its CGL policy. The superior court entered a declaratory judgment in favor of the insurer, and the homeowners appealed. Read the court decision
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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

New Safety Requirements added for Keystone Pipeline

June 11, 2014 — Beverley BevenFlorez-CDJ STAFF
After learning about construction defects on the “southern leg of the Canada-to-Texas project,” safety regulators have added two additional conditions “on construction of TransCanada Corp.’s Keystone XL oil pipeline,” according to Claims Journal. The defects, which have been fixed, included “high rates of bad welds, dented pipe and damaged pipeline coating.” The first condition requires “TransCanada to hire a third-party contractor chosen by the pipeline safety agency to monitor the construction” and report to the U.S. government, while the second condition requires “TransCanada to adopt a quality management program.” Both conditions were “buried near the end of the 26 appendices in a voluminous environmental impact statement on Keystone XL released by the State Department on Jan. 31.” Read the court decision
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Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)

June 17, 2015 — Christopher G. Hill – Construction Law Musings
Aside from waiver of lien rights (something that will be illegal in Virginia after July 1, 2015), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted in the proper fashion, are enforceable. As I have said many times, in Virginia freedom of contract almost always wins out. While this is the case, I emphasize that such clauses must be very explicit and specific. Furthermore, and in something that should be obvious, these clauses are generally limited by the Courts of Virginia to only be enforceable and to only forgive the need for payment if the upstream contractor on the construction job has not been paid for the work that the sub claiming non payment has done. 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

Texas Supreme Court to Review Eight-Corners Duty-to-Defend Rule

April 05, 2021 — Jared De Jong - Payne & Fears
The Texas Supreme Court has accepted certified questions from the Fifth Circuit Court of Appeals to clarify Texas’ eight-corners rule for determining the existence of a duty to defend. In Bitco Gen. Ins. Corp. v. Monroe Guar. Ins. Co., No. 19-51012, 2021 WL 955155 (5th Cir. Mar. 12, 2021), certified question accepted (Mar. 19, 2021), the Fifth Circuit asked the Texas Supreme Court to provide guidance on Texas insurance law. In Bitco, the insured was sued for negligently drilling an irrigation well. The insured allegedly got a drilling bit stuck in a bore hole, refused to fix the issue, and eventually abandoned the well. The policy did not cover continuing property damage known to the insured before the policy incepted. The policy period ran from Oct. 6, 2015 to Oct. 6, 2016, and the parties stipulated the drill bit became stuck in November 2014. Read the court decision
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Reprinted courtesy of Jared De Jong, Payne & Fears
Mr. De Jong may be contacted at jdj@paynefears.com

A WARNing for Companies

March 13, 2023 — Abby M. Warren & Sapna Jain - Construction Executive
Since last fall, news of layoffs in the technology sector have set off a ripple effect in a variety of other industries. Companies engaging in layoffs must be thoughtful and prepared when it comes to taking such action. While the construction industry generally has one of the highest layoff rates, and human resource personnel may be very knowledgeable with regard to related risks and exposure, there are a number of additional issues to consider when there are mass layoffs or closings. Further, expensive litigation awaits if companies are not meticulous in complying with state and federal laws regarding such large scale reductions in force. Under federal law, the primary legislation governing mass layoffs and closing is the Worker Adjustment and Retraining Notification (“WARN”) Act which generally covers employers with 100 or more employees. This law was enacted to protect employees by requiring companies to provide 60 days’ notice to employees in advance of certain plant closings and mass layoffs. In addition, many states, such as California, Connecticut and New York, have enacted similar state laws, referred to as “mini-WARN” laws, which impose additional requirements, including increasing the length of the required advance notice and broadening the scope of employers to which the law applies. Reprinted courtesy of Abby M. Warren and Sapna Jain, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations

June 15, 2017 — Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLP
Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018. THE NEW LAW – SB 496 SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof. However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists). WHAT CAN BE DONE NOW? Developers and Owners should strongly consider reviewing and revising the indemnity provisions in their consultant contracts to comply with the new legislation before the first of the year. This includes master agreements because project addenda entered into after January 1 are subject to the new law. The statute does not apply to current contracts, so these do not need to be amended. Questions? Newmeyer & Dillion is happy to assist in navigating the process to ensure you are compliant prior to January’s deadline. Please let us know how we can help. Mark Himmelstein is a partner focused in the areas of construction, real estate, business and insurance litigation. He has an in-depth experience in drafting and negotiating construction and real estate contracts. You can reach him at mark.himmelstein@ndlf.com. Jenny Guzman is a litigation associate in the Newport Beach office, focusing her practice in the areas of business and real estate litigation and transactions. You can reach her at jenny.guzman@ndlf.com. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit http://newmeyeranddillion.com/ Read the court decision
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Vallagio v. Metropolitan Homes: Colorado Supreme Court Upholds Declarant Consent Provision to Amend Arbitration Out of Declarations

June 15, 2017 — Jean Meyer - Colorado Construction Litigation
On June 5, 2017, the Colorado Supreme Court announced the Vallagio at Inverness Residential Con. Ass’n v. Metro. Homes, Inc., No. 15SC508, 2017 CO 69 (Colo. June 5, 2017) decision. In short, the Colorado Supreme Court upheld the validity of declarant “consent-to-amend” provisions and expressly held that claims under the Colorado Consumer Protection Act are arbitrable. By way of background, the Vallagio at Inverness Residential Condominiums were developed by Metro Inverness, LLC, (“Declarant”) which also served as the declarant for its homeowners association. Metropolitan Homes was Metro Inverness’ manager and the general contractor on the project. Greg Krause and Peter Kudla served as declarant-appointed members of the Association’s board during the period of declarant control. When it set up the Association, the Declarant included within the Association’s declaration a mandatory arbitration provision specifically for construction defect claims. This provision stated that it “shall not ever be amended without the written consent of Declarant and without regard to whether Declarant owns any portion of the Real Estate at the time of the amendment.” Read the court decision
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Reprinted courtesy of Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLC
Mr. Meyer may be contacted at meyer@hhmrlaw.com

US Attorney Alleges ADA Violations in Chicago Cubs Stadium Renovation

August 07, 2022 — Annemarie Mannion - Engineering News-Record
The friendly confines of Wrigley Field are not so friendly to wheelchair users, according to federal prosecutors who filed a civil lawsuit July 14 alleging that the Chicago Cubs’ multi-year renovation of the baseball stadium eliminated prime wheelchair seating and did not include other accessible features required under the Americans with Disabilities Act. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story... Read the court decision
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