FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Endorsements Do Not Exclude Coverage for Wrongful Death Claim

August 30, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion for summary judgment, attempting to bar coverage under two endorsements for a wrongful death suit, was denied. Essex Ins. Co. v. FD Event Co., LLC, 2017 U.S. Dist. LEXIS 124400 (C.D. Calif. July 25, 2017). FD Event owned an amusement attraction known as Free Drop, which was operated at county fairs and festivals. Participants paid an admission fee to FD Event in order to jump from a scaffold structure onto an inflatable airbag below. FD Event had a policy with Essex. When securing the policy, FD Event understood that there was no coverage for amusement devices, inflatables, rides or animals. 28th Event, who ran the San Bernardino County Fair, was an additional insured on the policy. 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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Louisiana 13th in List of Defective Bridges

November 27, 2013 — CDJ STAFF
About 1,800 bridges in the state of Louisiana have been rendered structurally deficient. According to a report by WAFB, that means “at least one of the three key parts of a bridge has a major defect.” Although the bridges need repair, they are not yet classified as unsafe, which would lead to the Louisiana Department of Transportation and Development closing the bridges. Over the last five years, the state has spent a billion dollars on repairing, maintaining, and replacing bridges, but the number keeps growing. The DOTD would not release a list of compromised bridges in the state, citing legal concerns. Read the court decision
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Elizabeth Lofts Condo Owners Settle with Plumbing Supplier

January 28, 2014 — Beverley BevenFlorez-CDJ STAFF
The owners of the Elizabeth Lofts condominiums in the Pearl District, Portland, Oregon have settled with Victaulic Co., the plumbing supplier who allegedly “sold failing parts,” reported The Oregonian. The case had been scheduled to go to trial this month. “Lawsuits filed by owners at the Avenue Lofts, the Benson Tower and The Edge Lofts are moving forward in federal courts.” The Elizabeth Lofts owners alleged “parts used in the buildings’ plumbing systems were disintegrating and causing water damage,” according to The Oregonian. The owners association had sought over three million in damages, though Phillip E. Joseph, Elizabeth Lofts owners’ attorney, said “he couldn’t disclose the terms” of the settlement. Victaulic’s attorney “declined to comment.” Read the court decision
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Eighth Circuit Remands to Determine Applicability of Collapse Exclusion

January 06, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The Eighth Circuit determined a jury instruction regarding the applicability of the "all-risk" policy’s exclusion for "collapse" was inadequate. See KAAPA Ethanol, LLC v. Affiliated FM Ins. Co., 2011 U.S. App. LEXIS 22158 (8th Cir. Nov. 3, 2011).

KAAPA had nine large, cylindrical, stainless steel tanks fabricated at its location. Soon after operations began in 2003, some of the tanks experienced unusual movement and began to shift. A geotechnical engineer found "silty clay" had been used for infill instead of compacted granular fill called for in engineering drawings. A year long plan to repair all nine tanks was implemented.

Affiliated’s "all-risk" policy excluded damage caused by faulty workmanship. It also excluded damage caused by settling or cracking. The settling exclusion went on to provide, "This exclusion will not apply to loss or damage resulting from collapse of: a building or structure; or material part of a building or structure." Affiliated denied coverage because of the faulty workmanship and settling exclusions.

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

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Manhattan Vacancies Rise in Epicenter Shift: Real Estate

August 20, 2014 — David M. Levitt – Bloomberg
The luster is fading on some of midtown Manhattan’s shiniest skyscrapers. Buildings in Midtown, from 30th Street to Central Park South at 59th Street, have more vacant blocks of contiguous office space than at the height of the recession in 2009, as landlords face increased competition from buildings downtown and at Hudson Yards on the far west side, according to a study by Savills Studley Inc., a New York-based real estate brokerage. “The epicenter of this city has shifted several times before and is in the process of shifting again,” Michael Cohen, tri-state region president of brokerage Colliers International, said in an interview. Midtown is “the hole in the doughnut,” where landlords are vulnerable to extended vacancies and rents that probably won’t rise dramatically. Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg
Mr. Levitt may be contacted at dlevitt@bloomberg.net

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Developer’s Failure to Plead Amount of Damages in Cross-Complaint Fatal to Direct Action Against Subcontractor’s Insurers Based on Default Judgment

January 21, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Yu v. Liberty Surplus Ins. Corp. (No. G054522, filed 12/11/18), a California appeals court held that a developer’s failure to allege the amounts of damages sought in its cross-complaint rendered default judgments against a subcontractor void and, therefore, unenforceable against the subcontractor’s insurers in a direct action under Insurance Code section 11580(b)(2). Yu, the owner, hired ATMI to develop a hotel. ATMI subcontracted with Fitch to perform stucco and paint work. Yu sued ATMI for construction defects and the developer cross-complained against its subcontractors, including Fitch, for breach of contract; warranty; indemnity, etc. Yu’s operative complaint prayed for damages “in an amount not less than $10,000,000, according to proof.” ATMI’s cross-complaint stated that it incorporated the allegations of Yu’s complaint “for identification and informational purposes only,” but “does not admit the truth of any allegations contained therein.” The cross-complaint also prayed for damages with respect to the various causes of action “in an amount according to proof.” 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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Alleged Serious Defects at Hanford Nuclear Waste Treatment Plant

August 26, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Los Angeles Times, “A team of nuclear waste experts has found hundreds of serious defects at an Energy Department plant designed to turn millions of gallons of highly radioactive sludge into more stable solid glass at the former weapons facility in Hanford, Wash.” The report from 2014 was leaked, and stated that the “partially built facility is riddled with 362 ‘significant design vulnerabilities’ that could affect safety and future operations.” Thirty-seven experts led by two senior managers created the report. The Los Angeles Times reported that the report findings “are significant because the plant is part of the Energy Department’s 2013 initiative to fix earlier problems that stalled construction of other parts of the treatment system at Hanford, the site of the nation’s worst radioactive contamination.” Read the court decision
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Fact of Settlement Communications in Underlying Lawsuits is Not Ground for Anti-SLAPP Motion in Subsequent Bad Faith Lawsuit

August 24, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Trilogy Plumbing, Inc. v. Navigators Specialty Ins. Co. (No. G057796, filed 5/27/20, ord. pub. 6/18/20), a California appeals court ruled that an insurance bad faith lawsuit alleging a variety of claim handling misconduct in defending the insured was not subject to an insurer’s special Strategic Lawsuit Against Public Participation (SLAPP) motion to strike because, while the alleged acts were generally connected to litigation, they did not include any written or oral statement or writing made in connection with an issue under consideration or review by a judicial body and, therefore, did not constitute protected activity under California’s anti-SLAPP statute. In Trilogy Plumbing, the policyholder was sued in 33 different construction defect lawsuits, some of which Navigators defended, and others which were denied or had the defense withdrawn. The Navigators’ policies were subject to a $5,000 deductible, and Trilogy alleged that Navigators breached the contracts by “demanding deductible reimbursement amounts greater than the policies’ $5,000 stated deductible, and by seeking reimbursement of ordinary defense fees and expenses as if they were subject to deductible reimbursement,” “claiming a right to seek reimbursement from Trilogy for defense fees and expenses Navigators paid for the benefit of third-party additional insureds,” “providing conflicted defense counsel who took instructions only from Navigators without disclosing conflicts of interest,” “failing to reasonably settle cases and by withdrawing [the] defense as a strategic means of trying to force Trilogy to fund its own settlements,” “misrepresenting its deductible provisions,” “refusing to account for deductible amounts it charges and collects,” and others. 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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