Fairfield Connecticut Building Expert Directory

The Hunton Policyholder’s Guide to Artificial Intelligence: SEC’s Recent AI-Washing Claims Present D&O Risks, Potential Coverage Challenges

July 08, 2024 — Geoffrey B. Fehling, Michael S. Levine & Alex D. Pappas - Hunton Insurance Recovery Blog
We have previewed in prior posts the ways artificial intelligence is rapidly changing the way business operate, including the many ways AI has influenced the insurance market, creating both opportunities and risks for policyholders. We later highlighted, based on a recent securities lawsuit, how corporate management may be at risk for the alleged use or misuse of AI and how companies should evaluate their directors and officers (D&O) and management liability policies to ensure that they are prepared to respond to and mitigate AI-driven risks, including claims alleging that a company or its officers and directors made misrepresentations about AI. That potential risk now has regulatory teeth, as the US Securities and Exchange Commission recently charged the founder of an AI hiring startup with fraud based on claims about using AI to help clients find diverse and underrepresented candidates to fulfill diversity, equity, and inclusion hiring goals. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Alex D. Pappas, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Pappas may be contacted at apappas@HuntonAK.com Read the court decision
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U.S. State Adoption of the National Electrical Code

August 24, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
What is the National Electrical Code? Did you know that as of 2017, there have been 15 revisions of The National Electrical Code since 1975, the year the average American home was built? The National Electrical Code codifies the minimum requirements for the safe electrical installations in a single, standardized source. While the NEC is not itself a law, the NEC is commonly mandated by state or local law. Where the NEC is adopted, anything less than the standards set by the NEC are illegal. The NEC revision is an open process that produces a new code every three years. The process includes:

Public Input
Public Commentary
NFPA Technical Session
Standards Council Action – Appeals and Issuance of the NEC

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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Ninth Circuit Finds Policy’s Definition of “Policy Period” Fatal to Insurer’s “Related Claims” Argument

April 10, 2019 — Jason M. Taylor - TLSS Insurance Law Blog
Professional liability policies often include some form of a “related claims” or “related acts” provision stating that if more than one claim results from a single wrongful act, or a series of related wrongful acts, such claims will be treated as a single claim and deemed first made during the policy period in which the earliest claim was made. These provisions can have significant implications on the applicable policy and policy limits, retroactive date issues, and whether such claims were first made and reported during a particular policy period. Recently, the Ninth Circuit issued a stern reminder of how the particular policy language can effect, and in this case thwart, the intended scope of the carrier’s “related claims” provision. In Attorneys Ins. Mut. Risk Retention Grp., Inc. v. Liberty Surplus Ins. Corp., 2019 WL 643442 (9th Cir. Feb. 15, 2019), the Ninth Circuit construed a “related claims” provision included in two consecutive lawyers professional liability policies. During both the 2009–2010 and 2010–2011 insurance policy periods, attorney J. Wayne Allen (“Allen”) was insured through his employer by Liberty Surplus Insurance Corporation’s (“Liberty”) professional liability insurance. Third parties filed suit against Allen during the 2009–2010 policy period in a probate case, and a second, related civil suit during the 2010–2011 policy period. Read the court decision
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Reprinted courtesy of Jason M. Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

Navigating the Hurdles of Florida Construction Defect Lawsuits

April 03, 2013 — CDJ STAFF
The Florida law firm of Williams Law Association reminds readers that under the law, homeowners “cannot immediately file a lawsuit against their contractor if they subsequently discover construction defects.” The contractor must first have a chance to fix the defect. Further, there is a waiting period between informing the contractor and actually filing the lawsuit. For individual homeowners, that wait is 60 days, but for associations of more than 20 parcels, it’s 120 days. Read the court decision
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Construction Defects Lead to Demolition of Seattle’s 25-story McGuire Apartments Building

March 16, 2011 — CDJ STAFF

According to a story published last Thursday in Seattle PI: " The 25-story McGuire Apartments, at Second Avenue and Wall Street, would cost more to fix than the building is worth, according to its owners. Its most serious defect involves steel cables that are corroding inside of concrete slabs because the ends weren’t properly treated with a rust-proof coating and a pocket in the edge of the concrete that wasn’t properly sealed"

The report by Aubrey Cohen outlines the demolition plans which are expected to take between 12 and 18 months, and will utilize robotic Brokk Machines. The demolition plan calls for one story at a time to be demolished, with the debris to be trucked offsite. Demolition plans aim to minimize disruption to residents and businesses in the area by Limiting work 7 a.m. to 6 p.m. on weekdays and 9 a.m. to 6 p.m. Saturdays with "impact and percussive activities" limited to 8 a.m to 5 p.m weekdays.

Arizona Is Smart About Water. It Should Stay That Way.

February 19, 2024 — Mark Gongloff - Bloomberg
You really have to hand it to Arizona: Even as its population has doubled and it has suffered through a decades long megadrought, the state uses less water today than it did 40 years ago. This success story is the result of what may be the smartest, most conservative approach to water in the country. But homebuilders want to scrap some key elements of this careful system. It’s a bad idea, especially as the climate changes, making the state’s water supply less reliable. And it’s a cautionary tale for the rest of us as we try to adapt to a warming world. In 1980, alarmed at watching its precious groundwater disappear amid rapid development, Arizona passed the Groundwater Management Act. The law established the Arizona Department of Water Resources, set up water-management zones around cities and required new housing developments to prove they had access to 100 years’ worth of clean water, among other things. Read the court decision
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Reprinted courtesy of Mark Gongloff, Bloomberg

Doctrine of Merger Not a Good Blend for Seller of Sonoma Winery Property

April 15, 2015 — Kristen Lee Price and Lawrence S. Zucker II – Haight Brown & Bonesteel LLP
In Ram’s Gate Winery, LLC v. Joseph G. Roche, et al. (No. A139189 & A141090, filed 4/9/15) (Ram’s Gate), the California Court of Appeal for the First Appellate District held the doctrine of merger did not extinguish a seller’s contractual duty to disclose potentially hazardous seismic conditions on a Sonoma winery property. In Ram’s Gate, the buyer of the property filed a lawsuit alleging the seller failed to disclose information relating to earthquake issues prior to the close of escrow. In the parties’ “Purchase and Sales Agreement” (Purchase Agreement) the seller agreed to disclose any information known to it regarding “known geological hazards . . . soil reports . . . geotechnical reports” and other facts “having effect on the value of the ownership or use of the property.” The seller, however, argued this disclosure warranty did not survive the escrow period because it did not expressly provide for survival while other provisions in the Purchase Agreement did. Reprinted courtesy of Kristen Lee Price, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Price may be contacted at kprice@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?

January 17, 2023 — Christopher G. Hill - Construction Law Musings
All Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.” A recent case in Fairfax County, Virginia, Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES