FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Nevada HOA Criminal Investigation Moving Slowly

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Six years have passed since the FBI started investigating “allegations of the sweeping scheme to take over valley homeowners associations” in Nevada, according to Jeff German writing for the Las Vegas Review-Journal, however, “the public still doesn’t have the full story of how the scheme unfolded.” Defendants who plead guilty are still awaiting sentencing and no trial has been set for “former construction company boss Leon Benzer, the accused mastermind of the scheme” despite that he and ten others have already been indicted. The trial had been set for March, however, defense lawyers stated “they were overwhelmed by the massive amount of evidence and won’t be prepared for trial until well into 2015.” Benzer, Nancy Quon (late construction defect attorney), and others allegedly “funneled more than $8 million through secret bank accounts to land the lucrative legal and construction defect contracts from the homeowners associations,” according to the Las Vegas Review-Journal. Quon committed suicide in 2012, and therefore was never charged in the case. Read the court decision
Read the full story...
Reprinted courtesy of

---

Prevailing HOAs Not Entitled to Attorneys’ Fees in Enforcement Actions Brought Under Davis-Stirling

August 30, 2017 — Lawrence S. Zucker II & Michael C. Parme – Haight Brown & Bonesteel LLP
In Retzloff v. Moulton Parkway Residents’ Ass’n, (2017) Cal. App. LEXIS 727, the Fourth District Court of Appeal considered the novel question of whether attorneys’ fees can be included as part of the cost award to a ‘prevailing association’ under Cal. Civ. Code §5235(c). Plaintiffs were former board members of Moulton Parkway Residents’ Association, No. One (“the Association”) who sued the Association for alleged violations of the Davis-Stirling Common Interest Development Act (Civ. Code §4000 et. seq.) which regulates the governance of common interest developments such as condominium communities and homeowners associations. Plaintiffs’ suit alleged that the Association regularly conducted business outside of scheduled board meetings and failed to make certain records available for inspection. Reprinted courtesy of Lawrence S. Zucker II, Haight Brown & Bonesteel LLP and Michael C. Parme, Haight Brown & Bonesteel LLP Mr. Zucker may be contacted at lzucker@hbblaw.com Mr. Parme may be contacted at mparme@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Know Your Obligations Under Both the Prime Contract and Subcontract

December 02, 2015 — Craig Martin – Construction Contractor Advisor
A recent case out of New Mexico highlights the importance for subcontractors to review their contract with the general and the contract between the general and the owner. In Centex/Worthgroup, LLC v. Worthgroup Architects, L.P, the architect claimed that the limitation of liability clause in the prime contract trumped the provisions of the subcontract. The court disagreed and ruled that the specific provision in the subcontract controlled. In the case, a general contractor was hired to expand and renovate a resort. The general contractor subcontracted with an architect to design a mechanically stabilized earth wall. The prime contract contained a limitation of liability clause that states:

general contractor shall require its design professional Subcontractor(s) to obtain insurance in an amount not less than $3,000,000. Owner agrees that it will limit general contractor’s liability to Owner for any errors or omissions in the design of the Project to whatever sums Owner is able to collect from the above described professional errors and omissions insurance carrier.

Read the court decision
Read the full story...
Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

---

Texas Supreme Court Holds that Invoking Appraisal Provision and Paying Appraisal Amount Does Not Insulate an Insurer from Damages Under the Texas Prompt Payment of Claims Act

September 16, 2019 — John C. Eichman & Grayson L. Linyard - Hunton Insurance Recovery Blog
In two cases decided June 28, 2019, the Texas Supreme Court held that an insurer’s invocation of a contractual appraisal provision after denying a claim does not as a matter of law insulate it from liability under the Texas Prompt Payment of Claims Act (“TPPCA”). But, on the other hand, the court also held that the insurer’s payment of the appraisal award does not as a matter of law establish its liability under the policy for purposes of TPPCA damages. In Barbara Techs. Corp. v. State Farm Lloyds, No. 17-0640, 2019 WL 2666484, at *1 (Tex. June 28, 2019), State Farm Lloyds issued property insurance to Barbara Technologies Corporation for a commercial property. A wind and hail storm damaged the property, and Barbara Tech filed a claim under the policy. State Farm denied the claim, asserting that damages were less than the $5,000 deductible. Barbara Tech filed suit against State Farm, including for violation of the TPPCA. Six months later, State Farm invoked the appraisal provision of the policy. More than a year after the suit was filed, appraisers agreed to a value of $195,345.63. State Farm then paid that amount, minus depreciation and the deductible. Barbara Tech amended its petition to include only TPPCA claims. Reprinted courtesy of John C. Eichman, Hunton Andrews Kurth and Grayson L. Linyard, Hunton Andrews Kurth Mr. Eichman may be contacted at jeichman@HuntonAK.com Mr. Linyard may be contacted at glinyard@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Another Way a Mechanic’s Lien Protects You

September 14, 2020 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, we have discussed mechanic’s lien law in Virginia on multiple occasions. We have discussed everything from the very picky nature of the perfection and enforcement of these liens to the changes that the Virginia General Assembly periodically makes to these requirements and how to defend against such liens. While the steps taken and content of a Virginia mechanic’s lien will be strictly construed by the Virginia courts, when perfected properly, a mechanic’s lien can and will put you as a construction company seeking payment in a better position than if no lien were recorded. The direct benefit is that you now hold a lien on the property on which you performed work that takes a priority (read will be paid before) any mortgage or other lien on that structure. In other words, if you, the bank, or the owner seeks to sell the property through foreclosure or otherwise, mechanic’s lien holders generally get paid first. While there are exceptions to be explored with an experienced Virginia construction attorney, this is the general rule and the power of a mechanic’s lien. Read the court decision
Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

---

Will European Insurers’ Positive Response to COVID-19 Claims Influence US Insurers?

August 10, 2020 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
Last month we wrote a piece concerning AXA’s agreement to pay COVID-19 related business interruption claims by a group of restaurants in France after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under its insurance policies. AXA reportedly has already agreed to pay over 200 COVID-19 related claims. Another European insurer recently made headlines for similar reasons. Despite initially denying liability, Swiss insurance company, Helvetia Insurance, announced that most of its policyholders in the hospitality industry have accepted settlements following coverage disputes for COVID-19 related business interruption losses. The settlements reportedly included policyholders from Switzerland, Austria, and Germany. The positive response from the European insurers appears to have influenced the insurance industry across the continent. For instance, in the U.K., the Financial Conduct Authority announced that it is taking certain insurers to court to seek clarity as to coverage for COVID-19 related losses. In Germany, the government and a group of insurers reached an agreement whereby the government will pay for 70% of business interruption losses for policyholders in the hospitality industry, and the insurers will pay for half of the business interruption losses not covered by the government. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---

School District Gets Expensive Lesson on Prompt Payment Law. But Did the Court Get it Right?

February 26, 2015 — Garret Murai – California Construction Law Blog
My kids don’t like riding in my car. I urge them to look outside the window (I don’t have DVD), suggest that they roll down their windows to get some fresh air (rather than have me turn on the A/C) and persist on listening to that archaic device called the radio (I don’t “stream”). Plus, I make them play “Dad Games.” Like Synonyms. In Synonyms, I say a word, and the next person has to come up with a synonym for that word until someone can’t think of another synonym. Sometimes, I take a walk on the wild side, and play “Antonyms.” Things can get heated, though. Like when someone says a word and there is a disagreement over whether that word is a synonym or not. The next case, FTR International, Inc. v. Rio School District, California Court of Appeal for the Second District, Case No. B238618 (January 27, 2015), also involved a disagreement over synonyms . . . except that the loser had to cough up nearly $10 million. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

---

Road to Record $199 Million Award Began With Hunch on Guardrails

June 17, 2015 — Patrick G. Lee – Bloomberg
It started with a hunch about malfunctioning highway guardrails. It led to the biggest known whistle-blower award in U.S. history. Joshua Harman, a Virginian with two small highway safety companies, made a discovery in late 2011 that perhaps only a guardrail maker could: A big competitor had changed the dimensions of its roadside safety device by as much as an inch here and there, he said, without telling federal regulators. As designed, Trinity Industries Inc.’s ET-Plus system was meant to turn the end of a guardrail into a de facto shock absorber. The altered units, as Harman saw it, were locking up when hit, spearing cars and their occupants. Read the court decision
Read the full story...
Reprinted courtesy of Patrick G. Lee, Bloomberg

---