Fairfield Connecticut Building Expert Directory

Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor

November 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
A recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022). The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components. The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor. 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

McGraw Hill to Sell off Construction-Data Unit

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
McGraw Hill Financial announced “plans to sell a construction-data unit concentrated on the U.S. market” according to The Wall Street Journal. This follows McGraw Hill’s determination to “focus on global operations and cutting costs.” “The construction division ‘is not a business linked to the global markets,’” Douglas L. Peterson, McGraw Hill’s Chief Executive said to The Wall Street Journal. “’It's very different’ than its other units, such as Standard & Poor's Ratings Services, J.D. Power or S&P Capital IQ, with the potential for larger international footprints.” McGraw Hill’s construction division “sells commercial-real-estate information to developers and manufacturers” and “generates about $170 million in annual revenue.” The division “employs about 650 people.” Read the court decision
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Enforcement Of Contractual Terms (E.G., Flow-Down, Field Verification, Shop Drawing Approval, And No-Damage-For-Delay Provisions)

May 04, 2020 — David Adelstein - Florida Construction Legal Updates
What you contractually agree to matters, particularly when you are deemed a sophisticated entity. This means you can figuratively live or die by the terms and conditions agreed to. Don’t take it from me, but it take it from the Fourth Circuit’s decision in U.S. f/u/b/o Modern Mosaic, Ltd. v. Turner Construction Co., 2019 WL 7174550 (4th Cir. 2019), where the Court started off by stressing, “One of our country’s bedrock principles is the freedom of individuals and entities to enter into contracts and rely that their terms will be enforced.” Id. at *1. This case involved a dispute between a prime contractor and its precast concrete subcontractor on a federal project. The subcontractor filed a Miller Act payment bond lawsuit. The trial court ruled against the subcontractor based on…the subcontract’s terms! So, yes, what you contractually agree to matters. Example #1 – The subcontractor fabricated and installed precast concrete panels per engineering drawings. However, the parking garage was not built per dimensions meaning the panels it fabricated would not fit. The subcontractor had to perform remedial work on the panels to get them to fit. The subcontractor pursued the prime contractor for these costs arguing the prime contractor should have field verified the dimensions. The problem for the subcontractor, however, was that the subcontract required the subcontractor, not the prime contractor, to field verify the dimensions. Based on this language that required the subcontractor to field verify existing conditions and take field measurements, the subcontractor was not entitled to its remedial costs (and they were close to $1 Million). Furthermore, and of importance, the Court noted that the subcontract contained a flow down provision requiring the subcontractor to be bound by all of the terms and conditions of the prime contract and assume those duties and obligations that the prime contractor was to assume towards the owner. While this flow-down provision may often be overlooked, here it was not, as it meant the subcontractor was assuming the field verification duties that the prime contractor was responsible to perform for the owner. 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

No Hiring Surge by Homebuilders Says Industry Group

February 14, 2013 — CDJ STAFF
Looking at data from the Bureau of Labor Statistics, the National Association of Home Builders found that while hiring levels in construction remain strong, there hasn’t been a surge in hiring in this particular sector. December found 92,000 open construction position, with the NAHB noting that home builders are still concerned about finding qualified workers. While there has not been surge in hiring, home building is on the increase. The NAHB says that “this could be due to increased hours for existing workers,” which would not be “a sustainable situation.” Read the court decision
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Georgia Court of Appeals Holds That Insurer Must Defend Oil Company Against Entire Lawsuit

October 07, 2019 — Lawrence J. Bracken II, Michael S. Levine & Alexander D. Russo - Hunton Andrews Kurth
The Georgia Court of Appeals recently affirmed a grant of summary judgment in favor of Mountain Express Oil Company on its breach of contract claim against liability insurer, Southern Trust Insurance Company. Empire Petroleum brought claims against Mountain Express for breach of contract, injunctive relief, and libel or slander, among others. Mountain Express sought a defense to that lawsuit under its insurance policy with Southern Trust. Southern Trust contended that the insurance policy did not cover Empire’s non-libel/slander claims, and therefore reimbursed Mountain Express for only a portion of its attorneys’ fees. After the Empire lawsuit settled, Mountain Express sued Southern Trust for breach of contract and bad faith for failing to pay the remaining defense costs, contending that Southern Trust had a duty to defend the entire lawsuit. The Georgia Court of Appeals affirmed the trial court’s grant of summary judgment to Mountain Express on its breach of contract claim. Citing policy language stating that “[the insurer] will have the right and duty to defend the insured against any ‘suit’ seeking those damages,” the court held that Southern Trust was obligated to defend the entire lawsuit. Specifically, in reaching that conclusion, the court noted that by agreeing to defend any “suit,” not any “claim,” Southern Trust obligated itself to defend the entire lawsuit if any claim could be covered under the policy. Accordingly, Southern Trust breached the policy when it only agreed to defend some of the claims against its insured. Reprinted courtesy of Lawrence J. Bracken II, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Alexander D. Russo, Hunton Andrews Kurth Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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Cal/OSHA Approves COVID-19 Emergency Temporary Standards; Executive Order Makes Them Effective Immediately

July 11, 2021 — Leila S. Narvid - Payne & Fears LLP
On June 17, 2021, California's Occupational Safety and Health Standards Board (Standards Board) passed amended COVID-19 Emergency Temporary Standards (ETS). Gov. Gavin Newsom issued an Executive Order to make the amended ETS effective as soon as filed with the Secretary of State. The Office of Administrative Law (OAL) filed them, and the Secretary of State posted them, making the ETS effective immediately. These changes attempt to bring the ETS in alignment with recent changes to California Department of Public Health Order and the latest guidance from the Center for Disease Control (CDC). Highlights of the changes to the ETS can be found here. Face Coverings in the Workplace; Elimination of Physical Distancing Notably, fully vaccinated employees do not have to wear a face covering indoors except in limited circumstances. Unvaccinated workers will still need to wear face coverings indoors (unless they are alone in a room or eating and drinking) and in shared vehicles. All employees regardless of vaccination status do not have to wear masks outdoors. Unvaccinated employees must be trained that face coverings are recommended outdoors for individuals who are not fully vaccinated when six feet of physical distance cannot be maintained. Read the court decision
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Reprinted courtesy of Leila S. Narvid, Payne & Fears LLP
Ms. Narvid may be contacted at ln@paynefears.com

Forget the Apple Watch. Apple’s Next Biggest Thing Isn’t for Sale

May 20, 2015 — Garret Murai – California Construction Law Blog
Apple released its much anticipated Apple Watch this past month. The Apple Watch is significant for Apple, not only because its profit and loss statement has a lot riding on it, but because it’s the company’s first foray into consumer “wearables.” This isn’t the first time the Cupertino company has ventured into new areas, through. Since its first consumer product, the Apple I, was released in 1976, Apple has gone from personal computers – and its iterations, including, desktops, laptops and tablets – to music players, cell phones and now watches. Today, Apple is less a computer company than a consumer electronics company, and even that doesn’t quite seem to go far enough, as it has become a lifestyle brand for many. Comparisons can be drawn to Sony during the mid-1980s when everyone aspired to a home filled with Sony televisions, Sony receivers and Sony Walkmans. Part of Apple’s success is that it sells a lifestyle that transcends its products, in which a glossy, sophisticated minimalism and simplicity, are among its most recognizable characteristics. It goes beyond their products, and is embodied in their advertising, their online and retail stores, and their packaging. And while the Apple Watch may be Apple’s latest “big” thing, I think something even bigger is underfoot at Apple, and it’s something you can’t buy. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Real Estate & Construction News Round-Up (11/16/22) – Backlog Shifts, Green Battery Storage, and Russia-Ukraine Updates

December 05, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores backlog shifts in the nonresidential construction sector, updates from the ongoing war between Russia and Ukraine, lithium-ion battery storage issues in New York City, and more.

According to Associated Builders and Contractors, construction backlog fell back below the reading observed in February 2020, largely due to a decline in the commercial and institutional sector. (Sebastian Obando, Construction Dive)
Amid celebration after retaking Kherson from retreating Russian troops, the Kremlin targeted critical infrastructure before withdrawing. (Michael Kern, Oil Price)
Real estate value in the metaverse is rising, given that virtual land can be built upon to create unique branding experiences that lend to advertising, marketing, socializing, and entertainment. (Evan Bourke & Sarah Hedley Hymers, Euronews)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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