FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Additional Insured Is Covered Under On-Going Operations Endorsement Despite Subcontractor's Completion of Work

December 20, 2017 — Tred Eyerly - Insurance Law Hawaii
Although the homeowners did not own their homes when the subcontractors completed their work, the general contractor was still covered as an additional insured for the homeowners' suits based on the ongoing operations endorsement in the subcontractors' policies. McMillin Mgmt. Servs. v. Fin. Pac. Ins. Co., 2017 Cal. App. LEXIS 1000 (Cal. Ct. App. Nov. 14, 2017). McMillin was the developer and general contractor for the project. Among the subcontractors were Martinez Construction Concrete Contractor, Inc. and Rozema Corporation. Martinez performed concrete flatwork between 2003 and November 2005. Rozema performed lath and stucco work between March 2003 and October 2005. Lexington issued CGL policies to Martinez and Rozema. McMillin was an additional insured under both policies, "but only with respect to liability arising out of your [i.e., Martinez's or Rozema's] ongoing operations performed for [McMillin]." An exclusion provided that the insurance did not apply to property damage occurring after the insured subcontractor had completed operations on behalf of the additional insured. Read the court decision
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Reprinted courtesy of Tred Eyerly, Insurance Law Hawaii
Mr Eyerly may be contacted at te@hawaiilawyer.com

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Verdict In Favor Of Insured Homeowner Reversed For Improper Jury Instructions

October 23, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court reversed the jury verdict in favor of the homeowners based upon improper instructions purporting to impose a duty to adjust the claim and how to construe a contract. Citizens Prop. Ins. Corp. v Mendoza, 2018 Fla. App. LEXIS 9497 (Fla. Ct. App. July 5, 2018). The insureds incurred water damage to their home caused by a water heater leak. After a claim was filed, the insurer sent an adjuster to investigate the claim. The insurer denied the claim due to an exclusion for constant or repeated seepage or leakage. At trial, the insurer offered testimony that the leak was a continued and repeated seepage of water over a long period of time, which was excluded under the policy, and not a sudden and accidental discharge of water, which would have been covered. 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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Judgment Proof: Reducing Litigation Exposure with Litigation Risk Insurance

March 04, 2024 — Latosha M. Ellis & Charlotte Leszinske - Hunton Insurance Recovery Blog
It is not just your imagination: verdicts are getting bigger. So-called “nuclear verdicts” have increased in size and frequency over the past decade, particularly after the COVID-19 pandemic. Litigation risk insurance is a little known, but highly effective, option meant to compliment traditional insurance products and provide additional protection for policyholders nervous about litigation exposure. Unfortunately, it is difficult to predict the exposure presented by any particular case. Between 2020 and 2022, the median verdict increased 95%—from $21.5 million to $41.1 million. In 2022, a jury handed down a verdict worth $7.3 billion for injury to a single plaintiff. Even if an injury or loss is minor, juries have shown that they are willing to penalize corporate defendants with punitive damages that significantly exceed the award of compensatory damages. With such uncertainty and millions (if not billions) at stake, companies can reduce risk with litigation risk insurance. Three key types of litigation risk insurance include: (1) punitive wrap insurance, (2) adverse judgment insurance, and (3) judgment preservation insurance. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Charlotte Leszinske, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Ms. Leszinske may be contacted at cleszinske@HuntonAK.com Read the court decision
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United States Supreme Court Grants Certiorari in EEOC Subpoena Case

March 29, 2017 — Jeffrey M. Daitz & Rashmee Sinha - Peckar & Abramson, P.C.
On September 29, 2016, the United States Supreme Court granted certiorari in McLane Co. Inc. v. EEOC, case number 15-1248, a case that asks the Court to resolve a split in the Circuit Courts of Appeals on the proper standard of review applied to a district court decision to quash or enforce a subpoena issued by the United States Equal Employment Opportunity Commission ("EEOC"). The decision by our highest court on the correct standard of review will have important implications for businesses, because if a litigant is displeased with a lower court's decision, it may get two bites at the apple. Such an outcome will likely encourage more appeals, drawn-out investigations and increase legal fees. On the other hand, if the Supreme Court decides that the Ninth Circuit was wrong and that a deferential standard of review (as opposed to a de nova standard) is appropriate, the losing side in future cases is more likely to accept the decision of the lower district court, knowing its chances of winning on appeal are slim. Reprinted courtesy of Jeffrey M. Daitz, Peckar & Abramson, P.C. and Rashmee Sinha, Peckar & Abramson, P.C. Mr. Daitz may be contacted at jdaitz@pecklaw.com Ms. Sinha may be contacted at rsinha@pecklaw.com Read the court decision
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Proposed Bill Provides a New Federal Tax Credit for the Conversion of Office Buildings

September 06, 2021 — Emily K. Bias & Brittany Griffith - Gravel2Gavel Construction & Real Estate Law Blog
At the end of July 2021, a bill was introduced in the House and Senate, which, if enacted, would create a federal tax credit to fund the conversion of unused office buildings into residential, commercial, or mixed-use properties. The Revitalizing Downtowns Act (S. 2511), which is modeled after the federal historic rehabilitation tax credit, would provide a federal tax credit equal to 20 percent of “qualified conversion expenditures” with respect to a “qualified converted building.” A “qualified converted building” means any building that (i) was nonresidential real property for lease to office tenants, (ii) has been “substantially converted” from an office use to a residential, retail, or other commercial use, (iii) in the case of conversion to residential units, is subject to a state or local affordable housing agreement or has at least 20 percent of the units rent restricted and set aside for tenants whose income is 80 percent or less of area median gross income, (iv) was initially placed in service at least 25 years before the beginning of conversion, and (v) may be depreciated or amortized. Reprinted courtesy of Emily K. Bias, Pillsbury and Brittany Griffith, Pillsbury Ms. Bias may be contacted at emily.bias@pillsburylaw.com Ms. Griffith may be contacted at brittany.griffith@pillsburylaw.com Read the court decision
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Construction-Industry Clients Need Well-Reasoned and Clear Policies on Recording Zoom and Teams Meetings

June 19, 2023 — Stu Richeson - The Dispute Resolver
The use of Zoom, Microsoft Teams, and similar communication platforms has become increasingly common in the construction industry. While these platforms can greatly facilitate communication between project participants, they potentially create a source of ESI – electronically stored information – that must be understood and considered by the businesses using those systems. Businesses using Zoom, Microsoft Teams, and similar platforms should have policies in place to address whether and why to record video conferences, how long to preserve any recorded meetings, and retention policies for instant messaging systems. The failure to adopt appropriate policies could prove quite costly in any future litigation or criminal investigation. Federal Rule of Civil Procedure 37(e) sets out the duty to preserve ESI and provides significant penalties for failing to do so once litigation is anticipated. It is important to note: there is generally no obligation to create ESI, such as recording Zoom or Teams meetings. At the same time, if the ESI is created but litigation is not anticipated, businesses are generally free to establish their own retention policy for that ESI. However, once litigation is anticipated, potential litigants have the obligation to preserve the ESI and, in connection therewith, to conduct a reasonable search for relevant information (to ensure its proper preservation). Read the court decision
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Reprinted courtesy of Stu Richeson, Phelps
Mr. Richeson may be contacted at stuart.richeson@phelps.com

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Mondaq’s 2023 Construction Comparative Guide

February 27, 2023 — Michael S. Zicherman - Peckar & Abramson
Peckar & Abramson partner Michael S. Zicherman is the author of the United States chapter of Mondaq‘s 2023 “Construction Comparative Guide.” The Guide provides an overview of some of the key points of construction law and practice and allows readers to compare regulatory environments and laws across multiple jurisdictions including Australia, Canada, Denmark, Ghana, India, Indonesia, Malaysia, Mexico, Qatar, Singapore, United Kingdom, United States, and United Arab Emirates. Reprinted courtesy of Michael S. Zicherman, Peckar & Abramson Mr. Zicherman may be contacted at mzicherman@pecklaw.com Read the full story... Read the court decision
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When Is Mandatory Arbitration Not Mandatory?

August 19, 2015 — Christopher G. Hill – Construction Law Musings
I have discussed my views on mandatory mediation in construction contracts at other places here at Musings and also discussed how the contract is king here in Virginia. A recent Charlottesville, Virginia Circuit Court case combined these two concepts to allow a subcontractor to proceed straight to litigation despite various ADR provisions in the contract between it and the general contractor. In ProBuild v. DPR & Continental Casualty, the Court looked at a series of ADR steps that were to be followed in the contract between the parties in order to allow DPR, the general contractor to require arbitration as opposed to litigation. The Court considered the surety’s motion to stay the litigation against it pending arbitration between ProBuild and DPR. In ProBuild, the Court looked at a contractual provision that provided certain steps to be followed in the event of a dispute, starting with a notice of dispute, followed by negotiation, followed by mediation should the disputing party request it, and in the event that mediation was tried and failed, the disputing party or general contractor could require arbitration. The Court determined that ProBuild, the subcontractor, was the disputing party under the contract, had pursued unsuccessful formal negotiations and that neither ProBuild nor DPR requested mediation. The Court then held that because unsuccessful mediation was a prerequisite to required arbitration and because mediation was never pursued, the mandatory arbitration clause did not apply. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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