Fairfield Connecticut Building Expert Directory

Signs of a Slowdown in Luxury Condos

January 28, 2015 — Prashant Gopal, Oshrat Carmiel and John Gittelsohn – Bloomberg
Manhattan real estate agent Lisa Gustin listed a four-bedroom Tribeca loft for $7.45 million in October, expecting a quick sale. Instead, she cut the price by $550,000 in January. “I thought for sure a foreign buyer would come in,” says Gustin, a broker at Brown Harris Stevens who is still marketing the 3,800-square-foot apartment. “So many new condos are coming up right now. They’ve been building them for the past few years, and now they’re really hurting the resales.” New high-priced condominiums and mansions are hitting the market in New York, Miami, and Los Angeles just as international buyers, who helped fuel luxury demand in the three cities, are seeing their purchasing power wane with the strengthening dollar. Signs of a pullback may already be showing in Manhattan, where luxury-home sales have slowed amid a boom in the construction of towers aimed at U.S. millionaires and foreign investors. Sales of homes costing more than $2 million in the New York area rose 10 percent last year, compared with a 27 percent jump in 2013, according to CoreLogic DataQuick. Reprinted courtesy of Bloomberg reporters Prashant Gopal, Oshrat Carmiel and John Gittelsohn Mr. Gittlesohn may be contacted at johngitt@bloomberg.net; Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Bankruptcy on a Construction Project: Coronavirus Edition

May 25, 2020 — Garret Murai - California Construction Law Blog
Experts are warning of a wave of bankruptcies in the wake of the coronavirus pandemic. In some industries, such as the hard hit retail sector, that rising tide has already begun as J. Crew and Neiman Marcus filed for bankruptcy protection this past week. While the federal government’s stimulus package, including the $660 billion Paycheck Protection Program which is part of the larger 2.2 trillion CARES Act, may help to stem the tide of bankruptcies, Chapter 11 bankruptcy filings increased 26% in April over the same period last year. How the pandemic will impact the construction industry is uncertain. Anecdotally, we’ve been hearing from clients that some project owners are stalling projects that are still in the planning stages as they evaluate the situation, which suggests long term impacts that can be ridden out rather than short term impacts that can devastate on-going construction projects. Nevertheless, with 24-7 coverage of the pandemic, project owners, contractors, material suppliers, and equipment lessors are understandably concerned with the impact a bankruptcy might have on a construction project. So, here’s a primer on bankruptcies on a construction project. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

California Restricts Principles of “General” Personal Jurisdiction

April 01, 2015 — Kristian B. Moriarty and R. Bryan Martin – Haight Brown & Bonesteel LLP
In BNSF Railway Company v. Superior Court (Kralovetz) (Filed 3/27/2015, No. B260798), the California Court of Appeal, Second District, held a Delaware railroad corporation, with its principal place of business in Texas, was not subject to “general” personal jurisdiction in California, despite California housing 8.1% of the corporation’s total workforce, accounting for 6% of the corporation’s revenue, and containing just under 5% of its total track mileage. Plaintiff, Vicki Kralovetz, filed suit in California Superior Court against defendant, BNSF Railway Company (“BNSF”), and others, for wrongful death. Plaintiff contended her husband was exposed to asbestos products manufactured by BNSF in Kansas while working at a dismantling facility owned by BNSF’s predecessor in interest. Plaintiff claimed the exposure caused her husband to contract mesothelioma, which resulted in his death. Reprinted courtesy of Kristian B. Moriarty, Haight Brown & Bonesteel LLP and R. Bryan Martin, Haight Brown & Bonesteel LLP Mr. Moriarty may be contacted at mmoriarty@hbblaw.com Mr. Martin may be contacted at bmartin@hbblaw.com Read the court decision
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Effects of Amendment to Florida's Statute of Repose on the Products Completed Operations Hazard

November 06, 2018 — Richard W. Brown & Grace V. Hebbel - Saxe Doernberger & Vita, P.C.
Recent amendments to Florida’s Statute of Repose have resulted in concerns as to the scope of risk Florida homebuilders face as a result, and the availability of insurance coverage for such exposures. Previously, the statute provided for a strict, yet straightforward 10-year limitation for latent construction defect claims. Under that language, issues arose when suits were filed near expiration of the statute, because parties seeking to defend claims were given little time to effectively assert related claims. The amendment to the statute serves to lengthen the statute of repose to 11 years for certain cross-claims, compulsory counterclaims, and third-party claims, and in limited circumstances, potentially even longer. Most policies in the Florida marketplace serve to limit coverage under the products-completed operations hazard (“PCO”) to 10 years, and thus, in very limited circumstances, an insured contractor may be exposed to third-party claims under the revised statute. It is important to note, however, that coverage under most CGL policies is occurrence-based, meaning that the policy is triggered by property damage that occurs during the policy period, and therefore, any subsequent claims permitted under the amended statute will necessarily relate to the original property damage that occurred during the 10-year period, and thus, would be covered under the standard 10-year PCO extension. This paper will analyze the anticipated effect of the amendments upon coverage under a 10-year PCO extension. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita P.C. and Grace V. Hebbel, Saxe Doernberger & Vita P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Ms. Hebbel may be contacted at gvh@sdvlaw.com Read the court decision
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Additional Insured Status Survives Summary Judgment Stage

August 26, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the insurer was not entitled to summary judgment in seeking a determination that a hotel was not the additional insured under its elevator repair company's policy. Aspen Spec. Ins. Co. v. Ironshore Indem. Inc., 2015 N.Y. Misc. LEXIS 2413 (N.Y. Sup. Ct. July 7, 2015). Michael Patalano was an elevator repairman employed by Transel Elevator Inc. Transel had a contract to maintain the elevators at Alphonse Hotel. The contract required Transel to name Alphonse as an additional insured on Transel's CGL policy. Patalano was injured while working at the hotel. He sued Alphonse, alleging that while performing work for the hotel, the stairs he was on which he was descending collapsed, causing him to fall and sustain injuries. Alphonse tendered to Ironshore, Transel's CGL carrier. 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

Hilary Soaks California With Flooding Rain and Snarls Flights

August 21, 2023 — Brian K. Sullivan & Brian Wingfield - Bloomberg
The remnants of Tropical Storm Hilary pummeled California with record rains on Monday, disrupting flights but sparing its largest cities from widespread destruction. Across the region, “the ongoing and historic amount of rainfall is expected to cause life-threatening to locally catastrophic” floods, along with landslides and mudslides, the National Hurricane Center said in a notice early Monday. The storm, now a post-tropical cyclone, has weakened since coming ashore in California late Sunday. As of early Monday, it had maximum sustained winds of about 35 miles (56 kilometers) per hour and is forecast to move across Nevada and dissipate on Monday. Hilary, a rare storm to hit the Southwest, could bring a year’s worth of rain to parts of a region famous for its usually balmy weather. Heavy rain and flash flooding have already disrupted transportation, and officials warned residents to stay off the roads. In the last 10 years, flooding from rainfall has caused the most deaths from hurricanes and tropical storms in the US. Read the court decision
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Reprinted courtesy of Bloomberg

"Multiple Claims" Provisions on Contractor's Professional Liability Policy Creates a Trap for Policyholders

May 24, 2021 — Michael V. Pepe - Saxe Doernberger & Vita
In Berkley Assurance Company v. Hunt Construction Group, Inc., 465 F.Supp.3d 370 (S.D.N.Y., 2020), professional liability insurer Berkley sued its insured, Hunt, a construction management firm, seeking a declaration that it did not owe Hunt a duty to defend and indemnify against breach of contract claims. The United States District Court for the Southern District of New York granted Berkley’s motion for summary judgment and denied Hunt’s motion for partial summary judgment. Among other things, the court held that the policy’s automatic extended reporting period did not apply to Hunt’s first claim. The multiple claims provision barred Hunt’s second claim because the claims were related. The court’s holding creates a potential trap for policyholders who wait to see how a claim develops before reporting it to their insurance carrier. This case demonstrates that waiting to see how a claim develops can result in a loss of coverage. Policyholders need to be aware of this trap and report all claims and circumstances immediately. Read the court decision
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Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita
Mr. Pepe may be contacted at MPepe@sdvlaw.com

Louisiana Couple Claims Hurricane Revealed Construction Defects

January 22, 2013 — CDJ STAFF
A Louisiana couple has sued the company that raised their home, claiming that faults with the work were revealed after Hurricane Isaac hit the home. Crescent City Construction raised the Marcev’s home in 2006. They were satisfied with the work until the 2012 hurricane. The Marcevs claim in their suit that the work is covered by a ten-year warranty. They are suing for a full refund of their payments to Crescent City Construction, as well as architectural fees, damages, interest, and attorney costs. Their claim is that as a result of the work, their home now has structural defects and fails to meet building codes. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES