FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Subsidence Exclusion Bars Coverage for Damage Caused by Landslide

May 23, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Ninth Circuit affirmed the district court's order granting summary judgment to the insurer who denied coverage based upon the policy's subsidence exclusion. Atain Spec. Ins. Co. v. JKT Associates, 2022 U.S. App. LEXIS 6351 (9th Cir. March 11, 2022). JKT was hired by Lora Eichner Blanusa in 2011 to perform landscape and hardscape work at her house. After selling the house to Richard Meese, a catastrophic landslide occurred in 2019. Portions of the rear of the property slid downhill by 15 feet. Meese sued JKG and others. The owner of an adjacent property, Kristi Synek, filed a separate action against JKT and others. JKT tendered both suits to Atain, who defended under a reservation of rights. Atain filed a coverage action in federal district court regarding both underlying suits. The district court granted summary judgment to Atain, ruling there was no duty to defend or to indemnify. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Citigroup Reaches $1.13 Billion Pact Over Mortgage Bonds

April 09, 2014 — Dakin Campbell – Bloomberg
Citigroup Inc. (C) agreed to pay $1.13 billion to settle claims from mortgage-bond investors as it seeks to curb liabilities tied to the financial crisis. It took a $100 million first-quarter charge. The 68 securitization trusts covered by the settlement issued a combined $59.4 billion in mortgage-backed securities from 2005 to 2008, the New York-based bank said yesterday in a statement. The agreement covers 18 investors represented by Gibbs & Bruns LLP and trustees have until June 30 to accept the deal, the law firm said in a separate statement. The accord must be approved by the Federal Housing Finance Agency. Citigroup, the third-biggest U.S. bank, is resolving a portion of liabilities tied to mortgages it packaged and sold to investors in the run-up to the 2008 crisis. JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), the two largest U.S. lenders, previously agreed to multibillion-dollar settlements with Gibbs & Bruns clients. Read the court decision
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Reprinted courtesy of Dakin Campbell, Bloomberg
Mr. Campbell may be contacted at dcampbell27@bloomberg.net

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Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable

September 20, 2021 — Garret Murai - California Construction Law Blog
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case. In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise. The Remedial Construction Case In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit. 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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Two Firm Members Among the “Best Lawyers in America”

September 01, 2016 — A&C Crew – Ahlers & Cressman PLLC
We are excited to announce that John P. Ahlers has been selected as a “Lawyer of the Year” in Construction Law, and John P. Ahlers and Paul R. Cressman, Jr. have been selected as “Best Lawyers in America” in Construction Litigation by Best Lawyers for 2017. Best Lawyers has recognized Mr. Ahlers and Mr. Cressman as “Best Lawyers in America” since 2007 and 2013, respectively. Read the court decision
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It’s Not Just the Millennium Tower That’s Sinking in San Francisco

December 06, 2021 — Beverley BevenFlorez – CDJ Staff
Much has been reported over the years regarding the sinking Millennium Tower in San Francisco, but now new reports are emerging regarding sinking sidewalks in the Mission Bay neighborhood and images from space demonstrating that the entire Downtown San Francisco area may also be sinking. According to CBS SF BayArea, some sidewalks in Mission Bay have sunk “as much as a foot and more in some spots.” The neighborhood is built upon a landfill, which requires the buildings to be anchored to bedrock—the streets and sidewalks, however, are the property owners’ responsibility. Engineers for the UCSF Medical Center at Mission Bay “took a proactive approach.” CBS SF BayArea alleges, however, that many surrounding condo developers did not. SFGate reported that the sidewalk issue may be difficult to solve “as any fixes to the surface only serve to increase the weight of the pavement, speeding its descent into the landfill.” It may not just be sidewalks and streets that are sinking. U.S Geological Survey research geophysicist Tom Parsons “says earth-based and space-based observations confirm the entire downtown area around it is sinking as well.” According to the NBC Bay Area story, Parsons “estimated settlement of three inches across the entire Bay Area.” The Millennium Tower weighs an estimated 686 million pounds, making it the third heaviest building in San Francisco. However, it is the only one that’s significantly leaning. San Francisco building officials told NBC Bay Area that there are plans in place “to shore up the seawall that protects the Embarcadero.” Read the full story at CBS SF BayArea... Read the full story at SFGate... Read the full story at NBC Bay Area... Read the court decision
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Specified Or Designated Operations Endorsement – Limitation of Insurance Coverage

July 15, 2024 — David Adelstein - Florida Construction Legal Updates
Your commercial general liability (CGL) policy may contain a specified or designated operations endorsement. This does not operate as an exclusion but as a LIMITATION of coverage. The endorsement may provide that bodily injury or property damage ONLY applies to the operations or business described therein. Similarly, there may be a limitation of coverage for designated classifications or codes which has the same effect—limiting coverage to the classifications/codes listed therein. This is an important consideration, and you need to understand and watch out for such limitations of coverage. (These aren’t the only ones, but it’s important to appreciate that limitations of coverage operate to limit the coverage to which the CGL policy applies.) The Eleventh Circuit Court of Appeal dealt with this exact issue under Alabama law (although the same analysis would apply in numerous jurisdictions). In this case, a landscaper (the insured) had a CGL policy with a specified operations endorsement that limited coverage to landscaping operations. The landscaper was hired to install an in-ground trampoline in addition to site and landscaping operations at a house. A person got hurt using the trampoline and the landscaper was sued. The CGL insurer denied coverage outright (and, thus, any duty to defend) because the complaint asserted that the injury occurred from the landscaper’s assembly and installation of the trampoline, which was not a landscaping operation. Furthermore, the Eleventh Circuit noted that the landscaper’s insurance application specified that the landscaper did not perform any recreational or playground equipment erection or construction, and the installation and assembly of a trampoline would constitute recreational or playground equipment. 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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No Coverage for Building's First Collapse, But Disputed Facts on Second Collapse

January 10, 2018 — Tred R. Eyerly – Insurance Law Hawaii

While building's first collapse was not covered, there were disputed facts regarding the second collapse, leading to a reversal of the order granting summary judgment to the insurer on both collapses. Intergroup Int'l Ltd. v. Cincinnati Ins. Cos, 2017 Ohio app. LEXIS 5099 (Ohio Ct. App. Nov. 22, 2017). Intergroup bought a building after it was inspected. While leaks on the roof were repaired and a roof truss that was sagging was replaced, the inspector found the roof to be in good shape.

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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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2017 Construction Outlook: Slow, Mature Growth, but No Decline, Expected

December 21, 2016 — Garret Murai – California Construction Law Blog
As we count down the remaining days of 2016 (thank God) it’s time to think about what the new year will bring (I’m good with pretty much anything at this point). The economists at Dodge Data & Analytics have a few predictions. According to their 2017 Dodge Construction Outlook, they predict that U.S. construction starts will increase modestly in 2017, up 5% to $713 billion, after rather anemic growth in 2016 following several years of steady growth. According to Robert Murray, chief economist for Dodge Data & Analytics, while the first half of 2016 lagged behind construction activity in 2015, that shortfall grew smaller as the year progressed, easing concern that the construction industry might be in the early stage of a cyclical decline. Rather, according to Murray, it appears that the construction industry has now entered a more mature phase of expansion, one characterized by slower rates of growth than during the 2012-2015 period and that construction spending can be expected to see moderate gains through 2017 and beyond[.] Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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