FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Tort Claims Against an Alter Ego May Be Considered an Action “On a Contract” for the Purposes of an Attorneys’ Fees Award under California Civil Code section 1717

April 12, 2021 — Tony Carucci - Snell & Wilmer Real Estate Litigation Blog
California Civil Code section 1717 entitles the prevailing party to attorneys’ fees “[i]n any action on a contract,” where the contract provides for an award of attorneys’ fees to the prevailing party, regardless of whether the prevailing party is the party specified in the contract or not. But what about an action that alleges tort causes of action against an alter ego of a contracting party but that does not include a breach of contract claim against the alter ego? This was the question facing the California Court of Appeal in 347 Group, Inc. v. Philip Hawkins Architect, Inc. (2020) 58 Cal.App.5th 209. In that case, the plaintiff 347 Group sued and obtained a default judgment for breach of contract against defendant Philip Hawkins Architect, Inc. Id. at 211–12. 347 Group had also sued Philip Hawkins individually as well as Design-Build, Inc., the company Hawkins founded after putting Philip Hawkins Architect, Inc. into bankruptcy. Id. at 212. 347 Group originally alleged claims for breach of contract, fraudulent conveyance, and conspiracy against Hawkins and Design-Build, seeking to establish that Hawkins and Design-Build were the alter egos of the contracting party, Philip Hawkins Architect, Inc., but later dismissed the breach of contract claim. Id. Hawkins and Design-Build eventually prevailed on the tort causes of action, and moved for attorneys’ fees. Id. Read the court decision
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Reprinted courtesy of Tony Carucci, Snell & Wilmer
Mr. Carucci may be contacted at acarucci@swlaw.com

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Couple Sues Attorney over Construction Defect Case, Loses

June 10, 2011 — CDJ STAFF

The California Court of Appeals has ruled against a couple who sued their lawyer, after they were unhappy with the results of a construction defect case. Craig and Jeanne Petrik sued Mahaffey and Associates for legal malpractice and breach of contract. Their lawyer, Douglas L. Mahaffey, had settled their case for $400,000. The Petricks claimed Mahaffey did not have the authority make an offer to compromise.

In the original case, Mahaffey held back the $400,000 awarded in the settlement until he and the Petricks came to terms on how much of that was owed to Mahaffey. The lower court concluded that the Petricks were due $146,323,18. The jury did not agree with the Petrik’s claim that conditions had been met in which Mahaffey would not be charging them costs.

Judges O’Leary and Ikola wrote the opinion, with the third judge on the panel, Judge Bedworth offering a dissent only on their view of the cost waiver clause.

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Five Facts About Housing That Will Make People In New York City and San Francisco Depressed

February 26, 2015 — Flavia Krause-Jackson and Alexandre Tanzi – Bloomberg
If you live in New York or San Francisco, you should spend some time mining the latest crop of home price data -- starting with the Standard & Poor’s Case-Shiller indices. Then, pull out your last rent check. It might be enough to make you move. Here are a few things to get you thinking: 1. What you pay for parking in New York can buy a cheap home in Chicago The cheapest tier of homes in the Windy City were valued at less than $170,368 in November, the Case-Shiller tiered-price indices show (there are three tiers: low, middle and high). That compares to the $136,052 average price tag for parking space in New York last year, according to Jonathan J. Miller, the president of the appraisal firm Miller Samuel and a Bloomberg View contributor. Reprinted courtesy of Flavia Krause-Jackson, Bloomberg and Alexandre Tanzi, Bloomberg Read the court decision
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Red Tape Is Holding Up a Greener Future

March 13, 2023 — The Editors - Bloomberg
Seven months on, Democrats are still celebrating the Inflation Reduction Act, even though a crucial determinant of its success — permitting reform for energy projects — remains undone. Recent data shows just how imperative it is for them to stop dragging their feet. What’s now called the IRA had little to do with inflation. It was a climate bill, and a big one: It provided $370 billion to improve energy efficiency, reduce emissions and smooth the path to a clean-power economy. It came on top of a 70% surge in private investment since 2017. But the biggest impediment to the US energy transition isn’t financing: It’s building. A decade ago, between 25% and 30% of proposed wind and solar projects moved from the drawing boards to completion. But as new projects and new funding have soared, utilities have been unable to keep up, leading to an immense backlog. A recent report by BloombergNEF found that over just six years, global clean-energy investment has gone from half the level of fossil-fuel investment to near parity, an extraordinary leap that reflects the market’s appetite for clean power. Yet America’s dysfunctional regulation is preventing many needed projects from even breaking ground. Read the court decision
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Reprinted courtesy of The Editors, Bloomberg

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Wildfire Insurance Coverage Series, Part 4: Coverage for Supply Chain Related Losses

July 18, 2022 — Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery Blog
Business loss is not limited to fire or smoke damage to its own property – it often arises from damage to the supply chain. In this post in the Blog’s Wildfire Insurance Coverage Series, we look at what coverage may exist when wildfire damages an entity’s supply chain. In many instances, while the insured property does not sustain fire or smoke damage, wildfires can wreak havoc on the business supply chain. For some, contingent business interruption coverage may be a solution. Contingent business interruption insurance extends coverage for the loss of prospective earnings because of an interruption in the insured’s supply chain that is caused by damage to property that the insured neither owns nor operates.[1] Typically, the property covered is of a supplier or customer. For example, in 2000, Ericsson Telecom A.B., a mobile phone manufacturer, presented a substantial contingent business interruption claim based on a fire that damaged a Royal Philips Electronics semiconductor plant. Royal Philips supplied critical components for Ericsson’s mobile phones. The fire caused Royal Philips to close its plant, halting Ericsson’s phone production for six weeks, resulting in substantial losses. Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Feds OK $9B Houston Highway Project After Two-Year Pause

March 20, 2023 — James Leggate - Engineering News-Record
The Federal Highway Administration has agreed to let a $9-billion Texas highway reconstruction project proceed after a two-year pause over concerns linked to the project’s potential impact on communities along the route, including a lawsuit filed by Harris County to halt contracting, pending a new environmental impact review. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Worker’s Compensation Exclusivity Rule Gets “Trumped” by Indemnity Provision

October 27, 2016 — Garret Murai – California Construction Law Blog
Sorry, I couldn’t help myself with the title. The next case, Aluma Systems Concrete Construction of California v. Nibbi Bros., Inc., California Court of Appeals for the First District, Case No. A145734 (August 16, 2016), discusses the interplay between indemnity provisions and the worker’s compensation exclusivity rule. The worker’s compensation exclusivity rule generally provides that worker’s compensation insurance is the exclusive remedy of employees for injuries or death arising out of the course and scope of their employment. In the Aluma case, the California Court of Appeals, addressed what happens when a subcontractor’s employees are injured on a project, sue the general contractor, and the general contractor, pursuant to an indemnity provision in its subcontract, tenders the claim to the subcontractor whose worker’s compensation insurance has already paid the employees. 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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Professional Services Exclusion Bars Coverage Where Ordinary Negligence is Inseparably Intertwined With Professional Service

August 17, 2017 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Energy Ins. Mutual Ltd. v. Ace American Ins. Co. (No. A140656, filed 7/11/17, ord. Pub. 8/10/17), a California appeals court found that a professional services exclusion barred coverage for wrongful death and other claims blamed on pipeline inspectors’ failure to identify and properly mark a gas pipeline that was ruptured during construction of another pipeline, resulting in an explosion and fire. In Energy Ins. Mutual, a pipeline owner hired two temporary construction inspectors through a staffing company. The inspectors had to ensure compliance with engineering and safety standards, practices and procedures for pipeline construction, and understand construction drawings and blueprints. They worked together with one of the owner’s employees to perform daily surveillance to ensure the integrity of the pipeline and avoid third party damage. 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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