FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Anti-Concurrent Causation Clause Bars Coverage for Pool Damage

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon the policy's anti-concurrent causation clause, the Illinois Court of Appeals affirmed the trial court's ruling that there was no coverage for a pool that popped out of the ground. Bozek v. Erie Ins. Group, 2015 Ill. App. LEXIS 940 (Ill. Ct. App. Dec. 17, 2015). Following a rainstorm, the insureds reported damage to the swimming pool to Erie. An investigation determined that the heavy rain saturated soils around the pool. This created a significant uplift hydrostatic pressure. The weight of the water in the pool typically prevented the uplift forces, but the pool had been emptied to clean debris making it susceptible to uplift. The pool had a pressure relief valve to prevent uplift, but it was not working properly. As a result, the pool was damaged to the point that it had to be replaced in its entirety. The heaving of the pool also damaged the concrete slab around the pool, which also had to be replaced. 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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World Cup May Pull Out of Brazil because of Construction Delays

January 28, 2014 — Beverley BevenFlorez-CDJ STAFF
Back in October of last year, CNN reported that a judge suspended construction at one of the stadiums being built for this summer’s World Cup in Brazil. The judge stated that the dangers for construction workers included "being buried, run over, falling from heights and being hit by material, among other serious risks,” according to CNN. Recently, the Los Angeles Times reported that FIFA is threatening to pull out of Brazil because of construction delays: “We cannot organize a match without a stadium,” Jerome Valcke, FIFA’s secretary general, as quoted in the Los Angeles Times. “This has reached a critical point.” The deadline for completion of the 12 World Cup stadiums was January 1st, but various delays—including “fatal construction accidents at stadiums in Sao Paulo, Brasilia, and Manaus” as well as worker walk offs over pay—forced FIFA to “relax” the deadline. Read the full story at CNN... Read the full story at the Los Angeles Times... Read the court decision
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South Carolina School District Investigated by IRS and FBI

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
The IRS and FBI are investigating operations of the Jasper County School District in South Carolina. According to The Post and Courier, “Assistant U.S. Attorney James May sent a letter to district officials asking them to keep financial documents, the minutes of school board meetings, employment files for top officials and all letters and emails between district employees.” Some of the problems the school district has dealt with are “legal challenges.” One of the disputes, involved a “multi-million dollar” construction defect claim for “facilities built in 2007.” The Post and Courier reported that this made up twenty percent of the more than half a million dollars paid in legal fees by the district. South Carolina “lawmakers are considering the Parent Empowerment Act, a bill that would allow the state's Education Department to take over districts that are mismanaged or need improvement if a majority of parents call for it,” according to The Post and Courier. Read the court decision
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The Indemnification Limitation in Section 725.06 does not apply to Utility Horizontal-Type Projects

February 07, 2018 — David Adelstein - Florida Construction Legal Updates

One of the most important provisions in construction contracts is the indemnification provision. Appreciating contractual indemnification obligations are critical and certainly should not be overlooked. Ever!

Florida Statute s. 725.06 (written about here and here) contains a limitation on contractual indemnification provisions for personal injury or property damage in construction contracts. There should always be an indemnification provision in a construction contract that addresses property damage or personal injury. Always!

Section 725.06 pertains to agreements in connection with “any construction, alteration, repair, or demolition of a building, structure, appurtenance, or appliance, including moving and excavating associated therewith…” If the contract requires the indemnitor (party giving the indemnification) to indemnify the indemnitee (party receiving the indemnification) for the indemnitee’s own negligence, the indemnification provision is unenforceable unless it contains a “monetary limitation on the extent of the indemnification that bears a reasonable commercial relationship to the contract and is part of the project specifications or bid documents, if any.” It is important to read the statute when preparing and dealing with a contractual indemnification provision.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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California Imposes New Disabled Access Obligations on Commercial Property Owners

October 07, 2016 — Garret Murai – California Construction Law Blog
The following article was written by my colleague David Goldman on the new ADA accessibility legislation which was signed into law this past month by Governor Brown. Since July 1, 2013, California Civil Code section 1938 has required commercial property owners to disclose in every commercial lease whether the property being leased has been inspected by a Certified Access Specialist (“CASp”). A CASp is an individual certified by the State of California as qualified and knowledgeable of construction-related access to public accommodations by persons with disabilities. In addition to disclosing whether or not the property being leased has been CASp inspected, if a CASp inspection has occurred, the commercial lessor must disclose in the lease whether the premises has or has not met all the applicable construction-related accessibility standards established by law. These lease requirements, along with other disability access obligations, were discussed in an earlier article written in 2012. 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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Court Extends Insurer Rights to Equitable Contribution

October 28, 2015 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action, refused to enforce a Contractors Special Conditions endorsement and found that equitable tolling applied to rule that a nondefending insurer was obligated to reimburse defense costs incurred defending the two insurers’ common insured. Certain Underwriters provided CGL insurance to Pacific Trades Construction & Development in effect between October 23, 2001 and October 23, 2003. ProBuilders Specialty insured Pacific Trades from December 9, 2002 to December 9, 2004. When Pacific Trades was sued in construction defect actions arising out of the development and construction of single family homes, Underwriters provided a defense, while ProBuilders declined to participate. The case was ultimately settled and when Underwriters sued ProBuilders for contribution to the defense costs, the trial court granted summary judgment for ProBuilders, finding its other insurance clause precluded any obligation to contribute or reimburse Underwriters. 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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North Dakota Court Determines Inadvertent Faulty Workmanship is an "Occurrence"

May 10, 2013 — Tred Eyerly
Joining what it called the majority of jurisdictions, the North Dakota Supreme Court found that damage caused by faulty workmanship can be an "occurrence." K&L Homes, Inc. v. Am. Family Mutual Ins. Co., 2013 N.D. LEXIS 61 (N.D. April 5, 2013). The insured, K&L, was a general contractor who was sued after completing construction of a new home. The suit was based upon breach of contract and breach of implied warranties claims. The homeowners alleged that improper compacting of soil had caused shifting of their home, leading to property damage. K&L had hired a subcontractor to do the soil compaction work. The insurer denied coverage. K&L sued the insurer, but lost at the summary judgment stage. On appeal, K&L argued the policy should be interpreted to give effect to the document as a whole and the "subcontractor exception" to the "your work" exclusion should apply. Read the court decision
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Reprinted courtesy of Tred Eyerly
Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Why Metro Atlanta Is the Poster Child for the US Housing Crisis

January 04, 2023 — Brentin Mock - Bloomberg
Last year, the Federal Reserve declared that not one of the 13 counties that make up metro Atlanta qualified as an affordable housing market. In many places, monthly housing costs consume more than 40% of homeowners’ incomes, well beyond the 30% threshold that the Federal Reserve uses to monitor market affordability. Accelerating housing prices have been the narrative for virtually every major US metro lately, but Atlanta is somewhat “paradigmatic” of the trend, according to Georgia State University urban studies professor Dan Immergluck. Since arriving in Atlanta in 2005, Immergluck has been tracking and documenting the direction of metro Atlanta’s housing conditions, focusing on segregation and gentrification patterns. His new book, Red Hot City: Housing, Race and Exclusion in 21st-Century Atlanta, released in October, is the culmination of much of that scholarship. What Red Hot City reveals is that while exorbitant house prices are typically the result of market forces, Atlanta can blame a lot of its own policy decisions over the last 20 years, particularly as it pertains to large civic projects like the BeltLine and Centennial Yards, a massive new development planned for south downtown Atlanta. Read the court decision
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Reprinted courtesy of Brentin Mock, Bloomberg

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