Fairfield Connecticut Building Expert Directory

Policing Those Subcontractors: It Might Take Extra Effort To Be An Additional Insured

June 14, 2011 — Douglas Reiser, Builders Council Blog

I just came across a case that I think truly paints the insurance dilemma for contractors. Thanks to this recent Illinois case, I don’t have to make up any factual scenarios—so kudos to Attorney Robert Boylan for posting it.

In reading over my RSS feeds this weekend, I noticed a great writeup on long-time blogger Josh Glazov’s Construction Law Today. Attorney Robert Boylan’s post describes a recent Illinois case where a general contractor was denied its additional insured status on a second-tier subcontractor’s insurance. The reason for the denial: the general contractor failed to procure an agreement in writing with the second-tier subcontractor, requiring it to be listed as an additional insured.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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D.C. Decision Finding No “Direct Physical Loss” for COVID-19 Closures Is Not Without Severe Limitations

August 24, 2020 — Michael S. Levine & Michael L. Huggins - Hunton Andrews Kurth
On August 6, 2020, in Rose’s 1 LLC, et al. v. Erie Insurance Exchange, Civ. Case No. 2020 CA 002424 B, a District of Columbia trial court found in favor of an insurer on cross motions for summary judgment on the issue of whether COVID-19 closure orders constitute a “direct physical loss” under a commercial property policy. At its core, the decision ignores key arguments raised in the summary judgment briefing and is narrowly premised on certain dictionary definitions of the terms, “direct,” “physical,” and “loss.” Relying almost entirely on those definitions – each supplied by the insureds in their opening brief – the court set the stage for its ultimate conclusion by finding “direct” to mean “without intervening persons, conditions, or agencies; immediate”; and “physical” to mean “of or pertaining to matter ….” The court then apparently accepted the policy’s circular definition of “loss” as meaning “direct and accidental loss of or damage to covered property.” Importantly, however, despite recognizing the fundamental rule of insurance policy construction that the court “must interpret the contract ‘as a whole, giving reasonable, lawful, and effective meaning to all its terms, and ascertaining the meaning in light of all the circumstances surrounding the parties at the time the contract was made,’” the court apparently ignored the insureds’ argument that the term “property damage” is specifically defined in the policy to include “loss of use” without any specific reference to physical or tangible damage. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Michael L. Huggins, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Huggins may be contacted at mhuggins@HuntonAK.com Read the court decision
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Drought Dogs Developers in California's Soaring Housing Market

September 17, 2015 — John Gittelsohn – Bloomberg
California’s already tight housing market is facing another long-term complication: drought. The state’s dry spell is creating challenges for developers at a time when home prices are soaring because of limited inventory. The metropolitan areas of San Jose, San Francisco and San Diego had the nation’s biggest gap between the number of new jobs and residential building permits from 2012 to 2014, according to a report Wednesday by the National Association of Realtors. Now the drought, into its fourth year, stands to curb affordability further. “It’s contributing to price appreciation by restricting supply,” said Mark Boud, founder of Real Estate Economics, a housing-consulting firm based in Irvine, California. Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg

Congratulations Bryan Stofferahn, August Hotchkin, and Eileen Gaisford on Their Promotion to Partner!

April 19, 2021 — Bremer Whyte Brown & O’Meara
Bryan Stofferahn has been with BWB&O’s Oakland office since 2016 and has been practicing law since 2002. Mr. Stofferahn focuses his practice on insurance defense matters and was lead counsel on the Millennium Tower construction defect case in San Francisco, which was the largest construction defect action in the country. Outside of work, Bryan is passionate about traveling the world with his wife Claire and has finished in last place in two separate chili cook-offs (pre-COVID, of course). August Hotchkin has been with BWB&O since 2013 and helped open the Reno office located in Northern Nevada in 2016. He is duly licensed in both Nevada and California, handling various legal matters, especially complex litigation, throughout Northern Nevada and Northern California. Mr. Hotchkin has taken several cases to trial, including a successful defense verdict on a wrongful death matter. He has also argued countless dispositive motions as well as having cases heard at the Appellate level. During his free time, Mr. Hotchkin enjoys golfing, snowboarding, and spending time with his family and friends, especially up at Lake Tahoe. Eileen Gaisford has been with BWB&O’s Woodland Hill’s office for almost a decade and is licensed to practice law in California. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Orange County Team Obtains Unanimous Defense Verdict in Case Involving Failed Real Estate Transaction

March 25, 2024 — Lewis Brisbois Newsroom
Orange County, Calif. (March 4, 2024) - Orange County Partners Esther P. Holm and Alexandra Anast obtained a unanimous defense verdict in a real estate matter involving a failed real estate transaction. The property at issue, which was located in the West Hollywood Hills and had beautiful views, was undergoing extensive remodeling. There were several bids for its purchase. Ultimately, the plaintiff, a real estate investor, was awarded the purchase. The plaintiff and the seller entered into a real estate purchase agreement, but the plaintiff failed to release the physical contingencies within the 17-day period prescribed by the contract. Instead, the plaintiff demanded a reduction in price, which the seller rejected. The plaintiff then filed a lis pendens on the property, clouding the title and making it impossible for the sellers to sell the property to anyone else. The buyer and seller subsequently engaged counsel. The plaintiff filed the lawsuit against the seller as well as the real estate company and its agents. Prior to trial, the plaintiff and the seller reached a settlement. Read the court decision
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Construction Law Advisory: Mechanical Contractor Scores Victory in Prevailing Wage Dispute

September 03, 2014 — Steven M. Cvitanovic & Jessica M. Lassere Ryland - Haight Brown & Bonesteel LLP
On August 27, 2014, the First District Court of Appeal weighed in on whether prevailing wages are required for public contracts in situations where work is performed in furtherance of the project but at a permanent offsite manufacturing facility that is not exclusively dedicated to the project. In Sheet Metal Workers' International Association, Local 401 v. John C. Duncan and Russ Will Mechanical, the project at issue was for a community college district where Russ Will was the HVAC subcontractor. The contract documents required contractors to pay prevailing wages but they did not limit where or how Russ Will would fabricate sheet metal required for the job. Russ Will used its existing fabrication facility to form the sheet metal. An employee of Russ Will filed a complaint with the DIR alleging he should have been paid prevailing wages for work related to the project. The worker fabricated sheet metal for the project but at Russ Will’s Hayward facility, not at the site. The DIR issued a coverage determination in which it concluded that Russ Will was required to pay prevailing wages for the offsite fabrication work associated with the project. The DIR's determination turned on whether Russ Will was exempt from the prevailing wage law as a material supplier. To qualify for the material supplier exemption, the employer must sell supplies to the general public and its fabrication or manufacturing facility must not be established for the particular public works contract or be located at the site of the public work. Following the DIR determination, Rush Will filed an administrative appeal. The department reversed its initial coverage determination, concluding that the offsite fabrication performed by Russ Will was not subject to the prevailing wage law. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Jessica M. Lassere Ryland, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Ryland may be contacted at jlassere@hbblaw.com Read the court decision
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Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases

September 09, 2011 — CDJ STAFF

The Alabama Court of Civil Appeals has dismissed an appeal of a summary judgment in the case Bella Investments, Inc. v. Multi Family Services, Inc. MFS was hired by Bella to be the general contractor for a hotel in Gardendale, Alabama. MFS hired various subcontractors, including the architect for the project. After completion of the hotel in April, 2006, Bella made requests for MFS to repair cracked floor tiles.

In August, 2008, Bella sued MFS, the architect, and various fictitiously named defendants. Subsequently, Bella amended its complaint, naming some of the fictitiously named defendants.

MFS in turn claimed that Bella’s claims were void under the statute of limitations and that Bella was in beach of contact by failing to pay MFS the full amount owed. MFS moved for summary judgment under the statute of limitations, which was granted by the court.

Bella requested that the court “alter, amend, or vacate its summary judgment order.” When this was denied, Bella appealed to the Alabama Supreme Court, which transferred the appeal to the Court of Civil Appeals. The Court of Appeals refused to vacate the summary judgment as claims that form part of the case against MFS are also part of Bella’s claims against the other defendants. For this reason, the court upheld the summary judgment.

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No Coverage for Building's First Collapse, But Disputed Facts on Second Collapse

January 10, 2018 — Tred R. Eyerly – Insurance Law Hawaii

While building's first collapse was not covered, there were disputed facts regarding the second collapse, leading to a reversal of the order granting summary judgment to the insurer on both collapses. Intergroup Int'l Ltd. v. Cincinnati Ins. Cos, 2017 Ohio app. LEXIS 5099 (Ohio Ct. App. Nov. 22, 2017). Intergroup bought a building after it was inspected. While leaks on the roof were repaired and a roof truss that was sagging was replaced, the inspector found the roof to be in good shape.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii

Mr. Eyerly may be contacted at te@hawaiilawyer.com

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