FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Event-Cancellation Insurance Issues During a Pandemic

September 07, 2020 — Lorelie S. Masters & Latosha M. Ellis - Hunton Andrews Kurth
As the effects of coronavirus continue, organizations and companies now are considering whether events in late 2020 and early 2021 can take place or need to be converted to virtual events. What insurance effects will those changes and cancellations have? Consideration of these important decisions requires a review of both event-cancellation insurance and a consideration of force majeure and other such issues. On the insurance front, years ago, many policyholders purchased event-cancellation insurance for events in 2020, 2021, and even as far out as 2024. Such policies, purchased before the middle of March 2020, generally contain explicit coverage “buy-backs” for losses from “communicable disease.” That is, the policyholders paid an extra, specifically identified premium to remove any exclusion for communicable disease from these policies. Typically, these policies do not use the word, “virus”, but rather use “communicable disease”; and exclude neither. Those policies typically cover a specified amount of net profit and include additional coverages for “Cost of Remedial Action”, “Future Marketing Expense”, etc., over and above that specified amount of coverage. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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Biden’s Buy American Policy & What it Means for Contractors

February 22, 2021 — Meredith Thielbahr & Nicole Lentini - Gordon & Rees Construction Law Blog
January 25, 2021, President Biden signed an Executive Order (EO) “Ensuring the Future is Made in All America by All of America’s Workers”, which seeks to bolster U.S. manufacturing through the federal procurement process. Note that, just six day earlier, on January 18, the Federal Acquisition Regulation (FAR) Counsel issued a final rule implementing former President Trump’s July 2019 EO, titled “Maximizing Use of American-Made Goods, Products, and Materials” (EO No. 13881) on the then-current Buy American standards. For context, Trump’s proposed revisions – adopted and implemented by the FAR Council earlier this year – imposed three (3) significant changes worth noting: (1) increasing the percentage of domestic content (other than iron or steel) from 50% to 55% that an end product must contain in order to qualify as a “domestic end product”; (2) implementing an even higher increase in the domestic content requirement for iron and steel products to at least 95% U.S. “predominately” iron or steel product; and (3) increasing the price evaluation preference for domestic offerors from 6% to 20% (for other than small business) and 30% (for small businesses). The FAR’s rule became effective January 21, 2021, and applies to solicitations issued on or after February 22, 2021, and resulting contracts let. Biden’s EO rescinds Trump’s EO No. 13881 “to the extent inconsistent with [Biden’s] EO.” However, when dissected, it is clear Biden’s Buy American plan does little to modify thresholds inconsistent with the Trump Administration; rather, the White House’s latest EO implements changes in the form of BA administration. Nonetheless, Biden’s EO does expressly note that it supersedes and replaces Trump’s EO on the same issues. Reprinted courtesy of Meredith Thielbahr, Gordon & Rees and Nicole Lentini, Gordon & Rees Ms. Thielbahr may be contacted at mthielbahr@grsm.com Ms. Lentini may be contacted at nlentini@grsm.com Read the court decision
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HOA Group Speaking Out Against Draft of Colorado’s Construction Defects Bill

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Ed Sealover of the Denver Business Journal reported on a homeowner association group that has spoken out against the recent draft of Colorado’s Construction Defects bill. According to Sealover’s article, Senator Jessie Ulibarri claimed that the “proposed bill…would mandate that homeowners alleging that owner-occupied multi-family structures have major construction defects go through mediation or arbitration before a lawsuit can be filed.” Furthermore, the bill would require “written consent from a majority of unit owners” before the “executive board of a homeowners association files such a lawsuit.” The bill originated due to findings that “[l]ess than 2 percent of new housing stock being built in Colorado is in the form of condos, an anomaly that developers attribute to state laws that allow condo owners to file multi-million-dollar class-action lawsuits even if only a few of them want to move forward with the legal action.” However, Molly Foley-Healy, chairwoman of the Community Associations Institute (CLAC), spoke out against the bill: “Senator Ulibarri’s stated goal is to create more affordable housing, but this bill has nothing to do with affordable housing. Instead, it hurts the very people he said he wanted to help. It effectively blocks homeowners from holding builders responsible for their shoddy construction and leaves homeowners living in HOAs to pick up the tab for repairing the defects.” Read the court decision
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Compliance with Building Code Included in Property Damage

February 07, 2018 — Tred R. Eyerly – Insurance Law Hawaii

A Circuit Court in Florida issued a final judgment determining that the insured's obligation to comply with building code provisions was included in the property damage experienced. Pin-Pon Corp. v. Landmark, Am. Ins. Co., No. 312009CA012244 (Fla. Cir. Ct. Dec. 28, 2017). The decision is here.

At trial, the plaintiff's architect testified that the total pricing for the code upgrades was $6.2 million. On appeal, the appellate court ruled that plaintiff's Exhibit 98, an Upgrade Insurance Claim, was improperly admitted as a business record. The appellate court stated that the jury may have considered Exhibit 98 in determining the amount of code upgrade damages. Therefore, the verdict was reversed and remanded for a trial on the code upgrade damages only.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawarii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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China Bans Tallest Skyscrapers Following Safety Concerns

July 25, 2021 — Bloomberg News
China is prohibiting construction of the tallest skyscrapers to ensure safety following mounting concerns over the quality of some projects. The outright ban covers buildings that are taller than 500 meters (1,640 feet), the National Development and Reform Commission said in a notice Tuesday. Local authorities will also need to strictly limit building of towers that are more than 250 meters tall. The top economic planner cited quality problems and safety hazards in some developments stemming from loose oversight. A 72-story tower in Shenzhen was closed in May for checks following reports of unexplained wobbling, feeding concern about the stability of one of the technology hub’s tallest buildings. Construction of buildings exceeding 100 meters should strictly match the scale of the city where they will be located, along with its fire rescue capability, the commission said. “It’s primarily for safety,” said Qiao Shitong, an associate law professor at the University of Hong Kong who studies property and urban law. Extremely tall buildings “are more like signature projects for mayors and not necessarily efficient.” Read the court decision
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Mortgage Firms Face Foreclosure Ban Until 2022 Under CFPB Plan

April 05, 2021 — Alex Wittenberg - Bloomberg
Millions of homeowners who’ve fallen behind on mortgage payments due to the pandemic would have more time before facing foreclosure under rules proposed Monday by the Consumer Financial Protection Bureau. The revamp would generally prohibit mortgage servicers from starting foreclosures until after Dec. 31, the CFPB said in a statement. The goal is to give the nearly 3 million borrowers who’ve delayed or stopped making payments a chance to resume them before lenders initiate forced home sales. A key reason why the CFPB said the change is necessary is because an estimated 1.7 million consumers will exit U.S. forbearance relief programs in September and the ensuing months, meaning they will have to start making payments again. Read the court decision
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Reprinted courtesy of Alex Wittenberg, Bloomberg

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California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse

April 28, 2016 — Beverley BevenFlorez-CDJ STAFF
According to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others. The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.” Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News. Read the court decision
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California Supreme Court Holds that Design Immunity Does Not Protect a Public Entity for Failure to Warn of Dangerous Conditions

June 26, 2023 — Garret Murai - California Construction Law Blog
Get ready for more street signage. The California Supreme Court, in Tansavatdi v. City of Rancho Palos Verdes, (2023) 14 Cal.5th 639, has held that Government Code section 830.6, which protects public entities from claims alleging dangerous conditions on public property if the design was approved by a public agencies’ legislative body or their designee, does not shield a public entity from claims that the public entity should have warned the public of known dangers. We wrote about the Tansavatdi case a while back when it was before the Court of Appeals. The case involves a very sad set of facts. A young boy was killed by a semi-trailer while waiting at a stoplight on his bicycle in Rancho Palos Verdes, California. The area where the boy was killed did not have a bicycle lane although stretches of the same road did. The 2nd District Court of Appeal, on appeal from a motion for summary judgment, held that even if the public entity could establish that it was immune from liability under Government Code section 830.6, the trial court should have considered whether the public entity should have been liable for failing to warn of a dangerous condition on public property. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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