FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Communicate with the Field to Nip Issues in the Bud

March 16, 2017 — Christopher G. Hill – Construction Law Musings
This past week, I spent some time meeting with clients and generally discussing the day to day operations of construction companies. One common theme of these discussions (and of this construction blog) was the need to deal with problems at a job site early. I have often discussed the contract side of catching things early, and firmly believe that this is the first step to a successful construction project. This post is about the equally important “operational” side of this advice. What do I mean by “operational?” Essentially, while the contract negotiation and drafting tries to anticipate problems that might occur, the operational side deals with problems on a job site as they occur. In short, moving from what might occur (something I as a construction lawyer think about all the time), to what is actually occurring when putting that contract to work. Whether you are a general contractor, owner, subcontractor, or supplier to a construction project, you are likely well aware of the fact that Murphy was an optimist and something will go wrong. How you deal with this fact can be the difference between a successful, profitable project, and one that ends up in litigation (read: not as profitable). However, in order to deal with a problem properly, you need to know about the problem before it explodes. Without this knowledge, a problem could fester and lead to non-payment, subcontractor mechanic’s liens, and other headaches that don’t need to be further mentioned here. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Coverage Found For Cleanup of Superfund Site Despite Pollution Exclusion

March 05, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the pollution exclusion did not bar defense or indemnity for the insured's obligation to clean up a superfund site. Decker Mfg. Corp. v. The Travelers Indem. Co., 2015 U.S. Dist. LEXIS 12169 (W.D. Mich. Feb. 3, 2015). From 1966 to 1981, Decker disposed of its waste materials at the township landfill. The landfill was closed in 1981. Decker was insured under a CGL policy for a four year period from January 1, 1973, through January 1, 1977. After the landfill was closed, the EPA began an investigation which eventually led to a Unilateral Administrative Order in 1995 in which Decker was ordered to remove drums, construct a landfill cap, and monitor groundwater. Decker notified Travelers of the EPA's order on November 14, 1995. Travelers responded that it had no duty to defend or indemnify Decker. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages

April 28, 2014 — John Gittelsohn and Prashant Gopal – Bloomberg
After a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up. Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals. The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating. Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Reprinted courtesy of John Gittelsohn and Prashant Gopal, Bloomberg

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Fourth Circuit Rejects Application of Wrap-Up Exclusion to Additional Insured

December 11, 2018 — K. Alexandra Byrd & Samantha M. Oliveira - Saxe Doernberger & Vita, P.C.
Utilizing an owner-controlled or contractor-controlled insurance program (collectively known as “wrap-ups”) can reduce claims, save costs, and give owners and general contractors comfort in knowing their project is adequately insured. However, problems often arise when a subcontractor doesn’t enroll in the wrap-up and, instead, agrees to provide additional insured coverage to the owner and general contractor on the subcontractor’s own general liability policy. One of those problems is the prevalence of wrap-up exclusions on subcontractors’ general liability policies. If the wrap-up exclusion is too broadly drafted, the exclusion can eliminate coverage for the general contractor and owner even when the subcontractor is not enrolled in the wrap-up. Reprinted courtesy of K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. and Samantha M. Oliveira, Saxe Doernberger & Vita, P.C. Ms. Byrd may be contacted at kab@sdvlaw.com Mr. Oliveira may be contacted at smm@sdvlaw.com Read the court decision
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White and Williams Earns Tier 1 Rankings from U.S. News "Best Law Firms" 2021

November 23, 2020 — White and Williams LLP
White and Williams has achieved national recognition from U.S. News and World Report as a "Best Law Firm" in the practice areas of Insurance Law, Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law and Media Law. Our Delaware, New York and Philadelphia offices have also been recognized in their respective metropolitan regions in several practice areas. Firms included in the “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal experience. Reprinted courtesy of White and Williams LLP Read the full story... Read the court decision
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Hovnanian Increases Construction Defect Reserves for 2012

January 06, 2012 — CDJ STAFF

In their fourth quarter earnings call, executives of Hovnanian Enterprises made some projections for investors, covering the company’s plans for 2012. During the call, Ara K. Hovnanian, the firm’s CEO, discussed their reserves to meet construction defect claims. The firm does an annual actuarial study of their construction defect reserves.

Mr. Hovnanian noted that there have been no changes for the past several years, but this year they are increasing their reserves by about $6.3 million. Additionally, the firm has added $2.5 million to their legal reserves. Mr. Hovnanian stated “we do not anticipate that changes of this magnitude will be recurring as we look forward to 2012.”

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Dust Infiltration Due to Construction Defect Excluded from Policy

September 09, 2011 — CDJ STAFF

A summary judgment was affirmed in the case of Brown v. Farmers Group, by the California Court of Appeals. The Browns bought a new home in Oakley, California. At the time, they signed disclosure statement “acknowledging that the area around their home experienced gusty winds and would be in development for years to come, which might result in dust and airborne mold.”

The Browns found an unusual amount of dust in their home, which became worse when they ran their heating and air conditioning system. Shelia Brown was later diagnosed with chronic valley fever, which was attributed to airborne mold. The Browns contacted Farmers which investigated the house. Although the adjustor from Farmers said the Browns would be covered, Farmers denied the claim.

After the Browns moved out of the house, an inspector found that the HVAC line in the attic was disconnected, sending dust into the home. The Browns brought action against Mid-Century Insurance, which managed the policy, and Farmers. The identified the HVAC defect, window problems, and valley fever as causes, suing for breach of contact, breach of implied covenant of good faith and fair dealing, and the intentional infliction of emotional distress.

The court rejected all these claims. The policy with Farmers excluded losses due to defective construction. This ruled out the faulty HVAC system and any problems there might have been from the windows. The policy also specifically excluded losses from contamination, fungi, pathogens, and noxious substances. The court further found that the adjustor’s opinion was irrelevant to the question of what the policy actually covered. Finally, the court found no evidence of intentional infliction of emotional stress.

On review, the appeals court upheld the trial court’s conclusions and affirmed the summary judgment.

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Another Colorado Construction Defect Reform Bill Dies

May 07, 2014 — Beverley BevenFlorez-CDJ STAFF
Colorado construction defects reform Senate Bill 220 died when “Senate President Morgan Carroll, D-Aurora, declined to call a second committee to hear” the bill, according to Ed Sealover writing for the Denver Business Journal. Sen. Carroll declared that the “bill backers” did not incorporate any of the “suggestions she or House Speaker Mark Ferrandino had given them.” “SB 220 would have required condo-unit owners to submit to alternative-dispute resolution such as arbitration or mediation if the unit developer required it,” Sealover reported. “And it would have required that a majority of members of a homeowners association agree to file a lawsuit, a standard significantly larger than the two-person bar that now must be met.” Bill Cosponsor Sen. Mark Scheffel, R-Castle Rock, “believes litigation reform” will become “an election issue and” that it “has strong momentum heading into the 2015 session.” Read the court decision
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