FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Litigation Roundup: “Too Soon?”

July 02, 2024 — Daniel Lund III - Lexology
Not at all, said the Louisiana Supreme Court, in a case dealing with the timing of filing of a claim for indemnity. In the case, a Louisiana intermediate appellate court had earlier ruled in very short order on a supervisory writ application (reversing the trial court) that a claim for indemnity (based upon an indemnity clause in a construction contract) was “premature” until a “determination that damages are actually owed and the indemnitee sustains a loss. … At this time, the lawsuit is still pending against [the putative indemnitee], and no determination of liability had been made; thus, there is no obligation for indemnity and defense costs. … Stated differently, indemnity (or reimbursement) is not available at this time because [the indemnitee] has not discharged a liability which [the indemnitor] should have assumed or otherwise suffered any loss or damages. … Accordingly, [the] cause of action for indemnity and defense is not ripe for adjudication.” Bennett v. Demco Energy Servs., LLC, 2023-0581 (La. App. 1 Cir. 09/11/23); 2023 La. App. LEXIS 1449. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Court Rules Planned Development of Banning Ranch May Proceed

June 10, 2015 — Kristian B. Moriarty and Lawrence S. Zucker II – Haight Brown & Bonesteel, LLP
In Banning Ranch Conservancy v. City of Newport Beach (filed 5/20/2015, No. G049691), the California Court of Appeal, Fourth District, held the Environmental Impact Report prepared by the City of Newport Beach for the partial development of Banning Ranch complied with California environmental protection statutes and local ordinances. Under the California Environmental Quality Act (“CEQA”), a city desiring to approve or carry out a project that may have significant effect on the environment must prepare an environmental impact report (“EIR”) designed to provide the public with detailed information about the effect which a proposed project will have on the environment. The California Coastal Act of 1976 provides for heightened protection of environmentally sensitive habitat areas (“ESHA”) defined as any “area in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments.” In 2006, the City of Newport Beach adopted a General Plan for the physical development of the city. The plan specifically identifies Banning Ranch as having significant value as a wildlife habitat and open space resource for citizens. The general plan includes a primary goal of complete preservation of Banning Ranch as open space. To the extent the primary goal cannot be achieved, the plan identifies a secondary goal allowing limited development of Banning Ranch “to fund preservation of the majority of the property as open space.” The plan also requires the City to coordinate any development with the state and federal agencies. Reprinted courtesy of Kristian B. Moriarty, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Mr. Moriarty may be contacted at kmoriarty@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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“Based On”… What Exactly? NJ Appellate Division Examines Phrase and Estops Insurer From Disclaiming Coverage for 20-Month Delay

August 20, 2019 — Anthony L. Miscioscia and Timothy A. Carroll - White and Williams LLP
On May 28, 2019, the New Jersey Superior Court, Appellate Division examined the phrase “based on” in an assault-and-battery exclusion, finding that the phrase means “to make, form, or serve as the foundation of any claim, demand or suit.” C.M.S. Investment Ventures, Inc. v. American European Insurance Company, No. A-2056-17T3, 2019 N.J. Super. Unpub. LEXIS 1215, at *8-9 (N.J. Super. Ct. App. Div. May 28, 2019) (CMS). The CMS case is also notable because the Appellate Division held that a 20-month delay in disclaiming coverage was unreasonable and therefore warranted estoppel. In CMS, the insured was allegedly warned by its tenant about a faulty ground-floor window that failed to lock properly. Afterward, an intruder broke into the tenant’s apartment and sexually assaulted the tenant, who sued the insured on a premises liability claim. Before she filed suit, the tenant sought payment from the insured’s CGL insurer directly. The insurer denied coverage based on the assault-and-battery exclusion and closed the file, but never informed the insured. Later, the tenant sued the insured, which sought a defense and indemnity from its insurer, which again denied coverage based on the exclusion. The insured then sought a declaration of coverage on grounds that the exclusion was ambiguous, and the insurer “was estopped from denying coverage, because it waited [20] months to inform CMS of its coverage decision.” The trial court ruled in the insured’s favor which led to the appeal in CMS. Reprinted courtesy of Timothy Carroll, White and Williams LLP and Anthony Miscioscia, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Read the court decision
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Another Guilty Plea In Nevada Construction Defect Fraud Case

April 25, 2012 — CDJ STAFF

The eleventh defendant has entered a guilty plea in the ongoing federal investigation of construction defect fraud in the Las Vegas area. Mahin Quintero plead guilty to producing a false authentication feature, a misdemeanor. Ms. Quintero’s part in the scheme was to falsely authenticate signatures on loan documents for straw buyers. Ms. Quintero stated in court that she had been ordered to destroy her notary book three years ago. According to her plea bargain, the straw buyers did not appear in front of her when she notarized their signatures. As part of the scheme, the straw buyers would take control of homeowners associates, sending construction defect complaints and repairs to favored firms.

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Wood Smith Henning & Berman LLP Expands into Georgia

November 03, 2016 — Beverley BevenFlorez – CDJ Staff
Wood Smith Henning & Berman LLP (WSHB) has opened a new regional office in Atlanta, Georgia. Richard E. Zelonka, Jr., will be the Managing Partner. With over a decade of trial experience, Mr. Zelonka has handled complex litigation in both state and federal courts throughout the Southeastern United States. “I am thrilled to be joining Wood Smith Henning & Berman. WSHB’s sterling reputation, coupled with its national footprint, is especially attractive. That, coupled with the Firm’s passionate dedication to their clients, made this move a very easy choice for me,” said Mr. Zelonka. “I could not be more excited to lead WSHB’s new Georgia office.” The Firm’s Atlanta office is located at 1170 Peachtree Street NE, Suite 1200, Atlanta, Georgia 30309. The main phone number is (404) 885-5700. The fax number is (404) 506-9108. Read the court decision
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Comply with your Insurance Policy's Conditions Precedent (Post-Loss Obligations)

May 31, 2021 — David Adelstein - Florida Construction Legal Updates
I am of the opinion that if your property insurer requests a sworn proof of loss, furnish one with the assistance of counsel (preferably). Ignoring the insurer’s request or refusing to comply with insurer’s request is NOT value-added; it is simply placing you at a disadvantage based on the insurer’s argument that you, as the insured, materially breached the policy. I generally find no value having to confront this expected argument. Instead, I find value making an effort to comply with post-loss obligations including the insurer’s request to submit a sworn proof of loss. Working with counsel can help you comply with post-loss obligations (conditions precedent) while not weakening the value or merits of your claim. By way of example, in Edwards v. Safepoint Ins. Co., 46 Fla. L. Weekly D1086a (Fla. 4th DCA 2021), the insured did not provide its property insurer with the requested sworn proof of loss. The insurer moved for summary judgment that the insured’s failure to submit the sworn proof of loss was a material breach of the policy that rendered the policy ineffective. The trial court agreed and granted summary judgment. The Fourth District Court of Appeal affirmed explaining “[a] total failure to comply with policy provisions made a prerequisite to suit under the policy may constitute a breach precluding recovery from the insurer as a matter of law. If, however, the insured cooperates to some degree or provides an explanation for its noncompliance, a fact question is presented for resolution by a jury.” Edwards, supra, quoting Haiman v. Federal Ins. Co., 798 So.2d 811, 812 (Fla. 4th DCA 2001). 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

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Replacement of Defective Gym Construction Exceeds Original Cost

January 22, 2013 — CDJ STAFF
Austin, Texas has torn down a school gym, the Turner-Roberts Recreation Center at the Overton Elementary School, due to structural problems which became evident after the gym was completed four years ago. The cost of the new gym is $6.4 million, more than the cost of building the gym in the first place. The city is paying $3 million in repair costs with the rest of the money coming from the companies that designed and built the now demolished gym. According to the Austin Statesman, the total cost to the city will be about $8.6 million. The Turner-Roberts Recreation Center cost $5.6 million to build, but soon after it opened, structural problems were discovered. Cracks formed in walls and glass doors buckled. The settlement with the designer, contractor, and engineering firm did not require the firms to admit fault as they paid $3.4 million to fix the situation. The Statesman was unable to get a breakdown of how much each firm paid. Tom Cornelius, president of the GSC, the architectural firm on the project told the Statesman that "the foundation issues were not caused by design defects." Initially, the city sought to repair the gym, but early excavation determined that the defects were too extensive. In addition to the structural flaws, it was also determined that the HVAC system was faulty. Excavation also damaged plumbing work. Tearing down the gym turned out to be the most cost-effective response. Read the court decision
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Do Not Forfeit Coverage Under Your Property Insurance Policy

February 22, 2021 — David Adelstein - Florida Construction Legal Updates
If you have read prior articles (see here and here as an example), then you know that when it comes to first-party property insurance policies, an insured must comply with post-loss obligations in the policy. Failure to comply with a post-loss obligation gives the insurer the argument that the insured materially breached the policy and, therefore, forfeited rights to coverage. Naturally, this is avoidable by ensuring post-loss obligations are complied with, ideally under the guidance of counsel and qualified public adjusters to ensure your rights are being preserved and maximized.

[W]hen an insurer has alleged, as an affirmative defense to coverage, and thereafter has subsequently established, that an insured has failed to substantially comply with a contractually mandated post-loss obligation, prejudice to the insurer from the insured’s material breach is presumed, and the burden then shifts to the insured to show that any breach of post-loss obligations did not prejudice the insurer. Universal Property & Casualty Ins. Co. v. Horne, 46 Fla.L.Weekly D201b (Fla. 3d DCA 2021) quoting American Integrity Ins. Co. v. Estrada, 276 So.3d 905, 916 (Fla. 3d DCA 2019).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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