FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Insurer in Bad Faith For Refusing to Commit to Appraisal

October 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court denied State Farm's motion for summary judgment on the insured homeowners' bad faith claim for State Farm's failure to agree to an appraisal. Currie v. State Farm Fire and Cas. Co., 2014 WL 4081051 (E.D. Pa. Aug. 19, 2014). Superstorm Sandy caused a tree to crash in the insureds' home. The loss was reported to State Farm. The State Farm adjuster verbally quoted the roof replacement at more than $100,000. State Farm eventually paid $60,000 for the roof replacement. The insureds' adjuster estimated the loss at $363,804.98. The insureds demanded an appraisal. State Farm rejected the demand because the claim involved certain items for which State Farm did not admit liability, including damage to the interior hardwood floors. State Farm contended that since the dispute went beyond the amount of loss, an appraisal was not an appropriate method of resolution. 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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Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured

January 15, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf. In Engel, a homeowners association filed a construction defect action against the developer, Westlake. Travelers defended Westlake as an additional insured on the policy of a subcontractor. After the case settled, Travelers brought a subrogation action against another subcontractor for contribution to the defense costs. However, Westlake had its corporate status suspended for failure to pay taxes, and the subcontractor moved for judgment on the pleadings, which was granted. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Smart Cities Offer New Ideas for Connectivity

April 05, 2017 — Jennifer Seward - Engineering News-Record
Innovative, technology-driven communities are being designed and constructed for the next generation—and beyond. Although each of them is uniquely planned, experts say the central theme of connectivity is the key to turning concepts into reality. Read the court decision
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Reprinted courtesy of Jennifer Seward, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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California Court Invokes Equity to Stretch Anti-Subrogation Rule Principles

June 18, 2019 — Gus Sara & William L. Doerler - The Subrogation Strategist
In Western Heritage Ins. Co. v. Frances Todd, Inc. 2019 Cal. App. Lexis 299, the Court of Appeals of California, First Appellate District, addressed whether a commercial condominium association’s carrier could subrogate against the tenants (aka lessees) of one of its member unit owners. After examining the condominium association’s declarations, as well as the lease terms between the owner and the lessees, the court held that the association’s carrier could not subrogate against the lessees because they were implied co-insureds on the policy. To reach its decision, the court explained that an insurer steps into the shoes of its insured, not the party with whom it is in privity. Although the first-party property portion of the association’s insurance policy did not, as required by the association’s declarations, have the owner listed as an additional named insured, the court held that it would be inequitable to treat the association as the sole insured for purposes of determining Western Heritage’s right to bring a subrogation action. In Western Heritage, William R. de Carion d/b/a Surfwood Properties (de Carion or Lessor), owned a commercial unit within a multi-unit commercial building. The building was managed by the East Shore Commercial Condominiums Owners’ Association (the Association). As a unit owner, de Carion was a member of the Association. The Association’s Declarations of Codes, Covenants and Restrictions (CC&Rs) required the Association to procure fire insurance for the commercial units by adding the unit owners as additional named insureds. The CC&Rs also prohibited owners and their “tenants” from procuring their own fire insurance policies for the premises. In 2013, de Carion leased his commercial space to Frances Todd, Inc. d/b/a The Wooden Duck, Eric Todd Gellerman and Amy Frances Feber (Lessees). Reprinted courtesy of Gus Sara, White and Williams LLP and William L. Doerler, White and Williams LLP Mr. Sara may be contacted at sarag@whiteandwilliams.com Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com Read the court decision
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A Win for Policyholders: California Court of Appeals Applies Vertical Exhaustion for Continuous Injury Claims

August 24, 2020 — Celia B. Waters - Saxe Doernberger & Vita
Fresh off the heels of the California Supreme Court’s landmark decision in Montrose Chemical Corp. v. Super. Ct. of L.A. Cty. (“Montrose III”),1 policyholders scored another victory as another California court rejected horizontal exhaustion in the context of continuous injury cases. The Court of Appeal of the State of California, First Appellate District, Division Four, in SantaFe Braun Inc. v. Ins. Co. of N. Am., adopted a rule of vertical exhaustion, holding that “[absent an explicit policy provision to the contrary] the insured becomes entitled to the coverage it purchased from the excess carriers once the primary policies specified in the excess policy have been exhausted.”2 The dispute in SantaFe Braun began in 1992 when asbestos-related claims were first filed against Braun. In 1998, Braun’s three primary insurers agreed in writing to defend and settle the underlying claims against Braun while resolving allocation among themselves. In 2004, Braun filed the current suit against its excess insurers, seeking a declaration that the excess insurers were obligated to help cover the costs of the underlying asbestos-related lawsuits. Read the court decision
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Reprinted courtesy of Celia B. Waters, Saxe Doernberger & Vita
Ms. Waters may be contacted at cbw@sdvlaw.com

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Denver’s Proposed Solution to the Affordable Housing Crisis

March 06, 2022 — Taylor Ostrowski - Colorado Construction Litigation Blog
Over the past ten years, Colorado has seen a population growth of almost 15 percent, with many residing in Denver. In fact, in 2020, Denver ranked among the top five cities for inbound growth in the United States. At the same time, from 2010 through 2020, the state’s production of new housing decreased by 40 percent. The decrease in supply, coupled with the increase in demand has exasperated the already rising cost of housing in the state. This, along with other external factors such as job loss due to the COVID pandemic, has resulted in a statewide housing crisis. The City of Denver is proposing a revision to the municipal code that would expand affordable housing through three main tools: (1) increasing “linkage fees,” (2) requiring new multi-family development to designate a percentage of units to be affordable, and (3) offering zoning and financial incentives. The proposal addresses both rental housing and ownership opportunities. Although it is essential to combat the housing crisis and increased homelessness in the region, it is equally important to understand the impacts the proposed affordable housing ordinance would have on developers, if and when enacted. Read the court decision
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Reprinted courtesy of Taylor Ostrowski, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ostrowski may be contacted at ostrowski@hhmrlaw.com

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Repairs Could Destroy Evidence in Construction Defect Suit

June 28, 2013 — CDJ STAFF
Repair work is underway on the Palladium concert hall in Carmel, Indiana, a suburb of Indianapolis, a contractor for the project says that the repairs will destroy evidence that they need to defect against additional construction defect allegations. Work stopped in 2009 for three months of repairs after problems were found in the steel roof supports. Steel Supply & Engineering Co. has claimed that the column failures are due to errors in the design. They say that if the repair work continues, it “would result in the spoliation of evidence, and will irreparably harm the defendants, and ultimately adversely affect their ability to protect their rights in the action.” They have asked the court to bring repairs to a stop until they are able to inspect the steel. Read the court decision
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Business Solutions Alert: Homeowners' Complaint for Breach of Loan Modification Agreement Can Proceed Past Pleading Stage

October 08, 2014 — Krsto Mijanovic, Annette Mijanovic, Blythe Golay - Haight Brown & Bonesteel LLP
In Fleet v. Bank of America, N.A. (No. G050049, published 9/23/14, filed 8/25/14), a California Court of Appeal held that the trial court erred in sustaining the demurrer of a lender, where the homeowners had adequately alleged causes of action for breach of contract, fraud, and promissory estoppel. The homeowners alleged that they made timely payments during the trial period plan under the modification program, but before the last payment was due, the lender foreclosed and their house was sold. The homeowners had applied for a loan modification and were approved for a trial period plan under the modification program. They were required to make three monthly payments and verify financial hardship to permanently modify their loan. The homeowners made two payments and were told that foreclosure proceedings had been suspended. But before the third payment was due, the lender foreclosed. The trial court found that the trial period plan was not a binding loan modification agreement, so the homeowners had no right to any guaranteed loan modification. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Krsto Mijanovic, Annette Mijanovic and Blythe Golay Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com Ms. Mijanovic may be contacted at amijanovic@hbblaw.com Ms. Golay may be contacted at bgolay@hbblaw.com Read the court decision
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