FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Supreme Court Upholds Precondemnation Procedures

September 22, 2016 — Patrick J. Paul – Snell & Wilmer Real Estate Litigation Blog
On July 21, 2016, the California Supreme Court in Property Reserve v. Superior Court upheld the state’s precondemnation entry and testing statutes provided they were reformed to allow impacted property owners the ability to have a jury trial to determine damages associated with such entry and testing. The California Department of Water Resources (DWR) sought to construct water conveyance facilities that would require significant property condemnation. As part of this process, DWR further sought to investigate the environmental and geological suitability of more than 150 private properties considered for the conveyance route. Read the court decision
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Reprinted courtesy of Patrick J. Paul, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com

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Insurer Unable to Declare its Coverage Excess In Construction Defect Case

January 06, 2012 — CDJ STAFF

The Ninth Circuit Court of Appeals has upheld a summary judgment in the case of American Family Mutual Insurance Co. v. National Fire & Marine Insurance Co. Several other insurance companies were party to this case. In the earlier case, the US District Court of Appeals for Arizona had granted a summary judgment to Ohio Casualty Group and National Fire & Marine Insurance Company. At the heart of it, is a dispute over construction defect coverage.

The general contractor for Astragal Luxury Villas, GFTDC, contracted with American Family to provide it with a commercial liability policy. Coverage was issued to various subcontractors by Ohio Casualty and National Fire. These policies included blanket additional insured endorsements that provided coverage to GFTDC. The subcontractor policies had provisions making their coverage excess over other policies available to GFTDC.

The need for insurance was triggered when the Astragal Condominium Unit Owners Association filed a construction defect claim in the Arizona Superior Court. CFTDC filed a third-party claim against several subcontractors. The case was settled with American Family paying the settlement, after which it filed seeking reimbursement from the subcontractor’s insurers. The court instead granted summary judgment in favor of Ohio Casualty and National Fire.

American Family appealed to the Ninth Circuit for a review of the summary judgment, arguing that the “other insurance” clauses were “mutually repugnant and unenforceable.” The Ninth Circuit cited a case from the Arizona Court of Appeals that held that “where two policies cover the same occurrence and both contain ‘other insurance’ clauses, the excess insurance provisions are mutually repugnant and must be disregarded. Each insurer is then liable for a pro rate share of the settlement or judgment.”

The court noted that unlike other “other insurance” cases, the American Family policy “states that it provides primary CGL coverage for CFTDC and is rendered excess only if there is ‘any other primary insurance’ available to GFTDC as an additional insured.” They note that “the American Family policy purports to convert from primary to excess coverage only if CFTDC has access to other primary insurance as an additional insured.”

In comparison, the court noted that “the ‘other insurance’ language in Ohio Casualty’s additional insured endorsement cannot reasonably be read to contradict, or otherwise be inconsistent with, the ‘other primary insurance’ provision in the American Family policy.” They find other reasons why National Fire’s coverage did not supersede American Family’s. In this case, the policy is “written explicitly to apply in excess.”

Finally, the Astragal settlement did not exhaust American Family’s coverage, so they were obligated to pay out the full amount. The court upheld the summary dismissal of American Family’s claims.

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In Real Life the Bad Guy Sometimes Gets Away: Adding Judgment Debtors to a Judgment

January 05, 2017 — Garret Murai – California Construction Law Blog
As most litigators will tell you a plaintiff in a civil lawsuit needs to be able to prove both liability and damages to win a case. That is, you need to show both that the defendant is liable under the law and that you have suffered damages as a result. Proving one but not the other and you’ll lose the case. But there’s one other consideration that is just as important, albeit often elusive, and that is, collectability. Even if you win the case, if you can’t collect on the judgment, you might as well have lost. The following case, Wolf Metals, Inc. v. Rand Pacific Sales, Inc., California Court of Appeals for the Second District, Case No. B264002 (October 25, 2016), describes some of the remedies available, procedures to follow, and difficulties confronted when obtaining a default judgment against a judgment-proof defendant. 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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ISO Proposes New Designated Premises Endorsement in Response to Hawaii Decision

October 27, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Insurance Services Office (ISO) has issued a Circular advising it will submit to Insurance Departments in various states proposed changes to the Designated Premises Endorsement. The changes are due in part to the Hawaii Supreme Court's decision in C. Brewer & Co. v. Marine Indem. Ins., 135 Haw. 190, 347 P. 3d 163 (Haw. 2015). (Full Disclosure - our office represented C. Brewer before the Hawaii Supreme Court). 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

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Dispute Resolution Provision in Subcontract that Says Owner, Architect or Engineer’s Decision Is Final

March 29, 2021 — David Adelstein - Florida Construction Legal Updates
In subcontracts, it is not uncommon to see a provision that says something to the effect: Should any dispute arise between the parties respecting the true construction or interpretation of the Plans, Specifications and/or the Contract Requirements, the decision of the Owner or the Owner’s designated representative as set forth in the General Contract shall be final. This is a provision in a subcontract dealing with dispute resolution, typically when there is a dispute as to whether the subcontractor is performing extra-contractual or base contract work regarding an “interpretation of the Plans, Specifications, and/or the Contract Requirements.” It is not uncommon for there to be a dispute as to whether certain work is within the subcontractor’s scope of work or outside the subcontractor’s scope of work and subject to a change order. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Quick Note: Discretion in Determining Prevailing Party for Purposes of Attorney’s Fees

January 25, 2021 — David Adelstein - Florida Construction Legal Updates
In prior articles I have discussed that courts apply the significant issues test to determine the prevailing party for purposes of being entitled to attorney’s fees. A party that recovers an affirmative judgement is NOT the de facto prevailing party for purposes of an entitlement to attorney’s fees in a breach of contract action (or a construction lien foreclosure action). This was the issue in a recent appeal discussed here where the party that recovered an affirmative judgment on a breach of contract case was not deemed the prevailing party for purposes of attorney’s fees. While the party prevailed on one of its claims, it did not prevail on others, and it recovered less than half of the damages it originally sought. The appellate court, affirming the trial court, held that the trial court has discretion to determine that the party that recovered an affirmative judgement was not the prevailing party entitled to its attorney’s fees under the signifiant issues test. This was not what the party was expecting when the attorney’s fees it expended far exceeded the judgment it recovered. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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South Carolina Law Clarifies Statue of Repose

July 11, 2011 — CDJ STAFF

A new law in South Carolina, H 3375, fixes a loophole in that state’s statute of repose. State law puts a cap of eight years on construction defects, but the 2008 law that set that limit had a loophole that would allow for construction defect claims to start thirteen years after construction. The law also provides a cap on punitive damages.



The measure was backed by the Carolinas Association of General Contractors. Their spokesperson said that the legislation “increases our state’s ability to be economically competitive and helps protect our members from frivolous lawsuits.”

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Read South Carolina H 3375…

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The Irresistible Urge to Build Cities From Scratch

November 21, 2018 — Monte Reel - Bloomberg
Embedded in the cerebral folds of every city planner who’s ever lived, there’s a cluster of neurons that lights up like Las Vegas when confronted with the possibility of a blank slate. It started with Hippodamus, the man Aristotle claimed was the father of urban planning. When the Persians destroyed his hometown of Miletus, Hippodamus discovered a bright side to catastrophe: The attackers had erased all the regrettable improvisations that, over the centuries, had made a mess of the place. Tasked with rebuilding, he seized his chance to impose order upon chaos. And so the concept of the urban grid was born. Ever since, the dream of carte blanche has proved an all-but-irresistible seduction. Leonardo da Vinci drafted detailed sketches of an “ideal city” after the plague ravaged Milan, and a few hundred years later, Frank Lloyd Wright designed a metropolis that solved the problem of vehicular congestion via a network of helicopter taxis. Every so often, this urge in city planners breaks out into a full-scale epidemic, such as the one that spread throughout Europe and North America in the early 1900s. Known as the “garden city movement,” it aimed to counter the indignities of the Industrial Revolution by creating planned communities with plenty of green space. Read the court decision
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Reprinted courtesy of Monte Reel, Bloomberg

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