Fairfield Connecticut Building Expert Directory

Insurance Policies and Indemnity Provisions Are Not the Same

October 19, 2020 — Garret Murai - California Construction Law Blog
Just because you own a pair of Air Jordans doesn’t make you Michael Jordan. In the next case, Carter v. Pulte Home Corporation, Case No. A154757 (July 23, 2020), the 1st District Court of Appeal denied an insurance carrier’s equitable subrogation claim explaining that an insurer’s obligations under its insurance policy are not the same as an idemnitee’s obligations under an indemnity provision. Or, as aptly put by the Court of Appeal, while a “subrogated insurer is said to ‘stand in the shoes’ of its insured, because it has no greater rights than the insured. Here . . . [the insurer] is seeking to stand in a different, more advantageous set of shoes.” Carter v. Pulte Home Corporation Pulte Home Corporation was sued for construction defects by 38 homeowners in two housing developments. Various subcontractors had worked on the projects, but under their subcontracts, each subcontractor agreed to indemnify Pulte from and against “all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (‘Claims’) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte . . . ” Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Brazil's Success at Hosting World Cup Bodes Well for Olympics

July 16, 2014 — David Biller and Juan Pablo Spinetto – Bloomberg
A month ago, everyone from soccer analysts to economists said Brazil would win the World Cup title while the monthlong tournament would be marred by unfinished stadiums, violence and horrific traffic. How things change. Fans booed Brazil’s soccer team during the nation’s biggest-ever loss, a 7-1 pummeling by Germany last week which ended hopes of winning a record sixth championship. In the wake of the team’s 3-0 loss to the Netherlands in the consolation game, there have been calls from fans in the streets to President Dilma Rousseff to rebuild the national team. Yet Brazil’s unprecedented defeats contrast with the organizational success of the world’s most-watched sports event, which went off without major hitches following months of public criticism about partially-finished stadiums, labor strikes and threats of mass protests. The results may bode well for the country’s ability to pull off a successful 2016 Summer Olympic Games in Rio. Mr. Biller may be contacted at dbiller1@bloomberg.net; Mr. Spinetto may be contacted at jspinetto@bloomberg.net Read the court decision
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Reprinted courtesy of David Biller and Juan Pablo Spinetto, Bloomberg

General Contractors Can Be Sued by a Subcontractor’s Injured Employee

November 05, 2014 — Craig Martin - Construction Contractor Advisor
General contractors that exercise control over the worksite can be sued by a subcontractor’s injured employee. The Nebraska Supreme Court’s recent opinion, Gaytan v. Wal-Mart, should serve as a reminder that general contractors may be responsible for the safety of all workers on a job site. In this case, a roofing subcontractor’s employee died after falling through the roof of the under-construction Wal-Mart. The deceased employee’s estate sued Wal-Mart and Gram Construction, the general contractor, alleging that they were negligent in maintaining a safe worksite. The court initially acknowledged that an owner, the employer of an independent contractor, does not typically owe a subcontractor’s employee a duty because the owner typically has no control over the manner in which the work is to be done by the contractor. This general rule, however, has exceptions, such as where the owner retains control over the contractor’s work. But, for the exception to apply, the owner must have (1) supervised the work that caused the injury, (2) actual or constructive knowledge of the danger that caused the injury, and (3) the opportunity to prevent the injury. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Can You Really Be Liable For a Product You Didn’t Make? In New Jersey, the Answer is Yes

December 14, 2020 — James Burger & Robert Devine - White and Williams LLP
New Jersey has recently expanded liability for product distributors and manufacturers to products that the distributor/manufacturer did not make or sell. This alert discusses this new law and steps that distributors and manufacturers may consider to reduce their potential liability. In Whelan v. Armstrong International, Inc., the New Jersey Supreme Court held that distributors and manufacturers can be strictly liable for injuries caused by replacement parts added after the point of sale which had not been manufactured or sold by any of the defendants in the case. In Whelan, the defendants’ products had originally been sold with asbestos-containing parts. Mr. Whelan, the plaintiff, argued that asbestos-containing replacement parts were required to repair and maintain the products. The court found that because the products were designed with asbestos-containing parts, “[d]efendants had a duty to provide warnings given the foreseeability that third parties would be the source of asbestos-containing replacement components.” (Emphasis added). This reasoning, based on “foreseeability,” should give pause to all product distributors and manufacturers—even those who do not make or sell products that contain asbestos. Certainly distributors and manufacturers of products with asbestos-containing parts must take heed that they may now be liable for replacement parts that they neither manufactured nor sold. This alone is a significant holding that expands potential liability. Reprinted courtesy of James Burger, White and Williams LLP and Robert Devine, White and Williams LLP Mr. Burger may be contacted at burgerj@whiteandwilliams.com Mr. Devine may be contacted at deviner@whiteandwilliams.com Read the court decision
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California Supreme Court Rules Developers can be Required to Include Affordable Housing

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Los Angeles Times reported that in a unanimous decision, the California Supreme court justices declared that “cities and counties” can “require developers to sell some housing at below-market rates.” Chief Justice Tani Cantil-Sakauye wrote, “It will come as no surprise to anyone familiar with California’s current housing market that the significant problems arising from a scarcity of affordable housing have not been solved over the past three decades,” as quoted in the Los Angeles Times. Los Angeles Mayor Eric Garcetti applauded the decision: “This gives Los Angeles and other local governments another possible tool to use as we tackle our affordable housing crisis.” Read the court decision
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Michigan Court of Appeals Remands Construction Defect Case

February 14, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here. Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds. MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system. 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

Third Circuit Follows Pennsylvania Law - Damage Caused by Faulty Workmanship Does Not Arise from an Occurrence

May 10, 2013 — Tred Eyerly
The Third Circuit followed Pennsylvania law in determining that damage caused by faulty workmanship did not arise from an occurrence. Zurich Am. Ins. Co. v. R. M. Shoemaker Co., 2013 U.S. App. LEXIS 6093 (3d Cir. March 27, 2013). The County sued R. M. Shoemaker, alleging faulty construction of an addition to a correctional institution. The County alleged Shoemaker negligently supervised its subcontractor, thereby permitting the subcontractor to engage in willful misconduct, resulting in damage to structural elements of the correctional institution. The County alleged that Shoemaker's negligence permitted water to intrude, damaging the electrical systems, acoustic ceilings and miscellaneous equipment. Zurich sought a declaratory judgment that it was not required to defend or indemnify Shoemaker. The district court granted Zurich summary judgment. Relying on Pennsylvania law, the district court found that the allegations in the underlying action did not arise from an occurrence. Read the court decision
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Reprinted courtesy of Tred Eyerly
Mr. Eyerly can be contacted at te@hawaiilawyer.com

High Court Case Review Frees Jailed Buffalo Billions Contractor CEO

August 22, 2022 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
Hidden amid the U.S. Supreme Court's flurry of high-profile rulings that ended its current term—such as overturning Roe v. Wade and scaling back federal regulation of greenhouse gas emissions—was a less-noticed decision to take a case next year that could change the fortunes of a convicted New York contractor who was serving a federal prison term for bid-rigging. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES