Fairfield Connecticut Building Expert Directory

United States Supreme Court Limits Class Arbitration

May 13, 2019 — Jeffrey K. Brown & Raymond J. Nhan - Payne & Fears
On April 24, 2019, the United States Supreme Court held that the Federal Arbitration Act ("FAA") bars orders requiring class arbitration when an agreement is ambiguous about the availability of such a procedure. Lamps Plus v. Varela, 587 U.S. __ , 2019 WL 1780275, (2019). In Lamps Plus, the Court clarified a 2010 case in which it held that a court may not compel arbitration on a class-wide basis when an agreement is silent on the availability of class arbitration. Stolt-Nielsen S.A. v. Animal Feeds Int'l Corp., 559 U.S. 662, 687 (2012). In Lamps Plus, a 5-4 decision authored by Chief Justice Roberts, the Court explained that because the FAA envisions the use of traditional individualized arbitration, a party cannot be forced under the FAA to submit to class arbitration unless the parties explicitly agreed to do so. Because class arbitration does not share the benefits of traditional arbitration -- lower costs, greater efficiency and speed, and the parties' choice of a neutral -- the FAA requires more than an "ambiguous" agreement to show that the parties bound themselves to arbitrate on a class-wide basis. Unlike individualized arbitration, or even traditional class actions, class arbitration raises serious due process concerns because absent class members will have limited judicial review. Based on these critical differences between individual and class arbitration, the Court reiterated in Lamps Plus that "courts may not infer consent to participate in class arbitration absent an affirmative contractual basis for concluding that the party agreed to do so." Reprinted courtesy of Jeffrey K. Brown, Payne & Fears and Raymond J. Nhan, Payne & Fears Mr. Brown may be contacted at jkb@paynefears.com Mr. Nhan may be contacted at rjn@paynefears.com Read the court decision
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Real Estate & Construction News Roundup (7/17/24) – Housing Inflation to Remain High, Proptech Investment to Fall and Office Vacancy Rates to Reach Peak in 2025

August 26, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, construction backlog to see positives signs, regional banks to be conservative on buybacks, U.S. metro areas to permit few new housing units, and more!

Venture capital investments in proptech and adjacent companies fell 14.3% in the first half of the year. (Leslie Shaver, Multifamily Dive)
The expectation of interest rate cuts by the Federal Reserve later this year due to easing inflation and cooling economic growth is a positive sign for construction backlog. (Sebastian Obando, Construction Dive)
The U.S. office real estate sector is now in three markets, each with different performance, but the overall office vacancy rate will reach a 21.6% peak in the second half of 2025. (Nish Amarnath, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Construction Defect Claims Not Covered

May 10, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insured's negligent acts causing damage to only the structure of the home it built were not covered under the CGL policy. Westfield Ins. Co. v. Zaremba Builders II LLC, 2022 U.S. Dist. LEXIS 36189 (N.D. Ill. March 2, 2022). Zaremba contracted to build a house for the Vrdolyak Trust. After completion of the home, the occupants found many problems, including painting defects such as bubbling and peeling, leaving the basement full of water for months, causing damage to ductwork, framing and piping in the house, etc. The Trust sued and Westfield denied a defense. Westfield filed a declaratory judgment action for a ruling that it had no duty to defend or indemnify. On Westfield's motion for summary judgment, the court determined there was no property damage. Property damage included "physical injury to tangible property." When the alleged damage occurred in the course of a construction project, tangible property had to be property outside the scope of the contract for project. 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

Homebuilding Continues to Recover in San Antonio Area

December 04, 2013 — CDJ STAFF
There was a slowing in the third quarter, but home builders expect that 2013 will see more than 9,000 home starts in the San Antonio area. And even though the third quarter was slow, it was still about 3% above the same quarter in 2012. And the new homes are more expensive. Jack Inselmann, a senior vice president at MetroStudy noted that “in 2011, 40 percent of housing activity was under $175,000. And here we are two years later and 31 percent is under $175,000.” He worries that people looking for homes will go to the resale market, instead of buying a new home. Read the court decision
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Los Angeles Wildfires Will Cause Significant Insured Losses, Ranking Amongst the Most Destructive in California's History

January 14, 2025 — Morningstar DBRS
Wildfires currently burning in the Pacific Palisades, Eaton, Hurst and other Los Angeles neighborhoods will cause significant losses for the insurance industry, in Morningstar DBRS’ view. The fires have already burned more than 1,100 homes and threaten more than 28,000 additional structures, according to local fire officials. Preliminary estimates point to total insured losses in excess of $8 billion depending on the final number of properties being affected by the wildfires. By way of comparison, the 2018 Woolsey Fire, which destroyed 1,643 structures just north of Los Angeles, caused more than $6 billion in property damages at that time. Morningstar DBRS expects the ongoing wildfires to have a negative but manageable impact on major property insurers active in the Californian market, with the impact somewhat mitigated by their use of reinsurance and their high degree of diversification. Similarly, losses should be manageable for the global reinsurance industry and not affect their credit profiles. While leading U.S. property insurers are in good financial condition, the California property insurance market has been challenging because of high wildfire and other natural catastrophe risks combined with regulatory restrictions on coverage and pricing, leading many insurers to re-think their product offering, including an outright exit from the market. For example, market leaders such as State Farm and Allstate started reducing their exposure to the California market beginning 2022-2023. It is therefore possible that a larger than usual portion of the losses caused by the wildfires will be uninsured or may be covered under the California FAIR Plan, which is designed to provide fire coverage up to $3 million per home and spread the risk across the industry when it is not available from traditional carriers. This event reinforces the need for adequate rate increases on home insurance in California, based on forward-looking pricing and catastrophe modelling, as well as for additional fire prevention and mitigation initiatives. However, property insurance affordability is likely to remain a challenge in the state going forward, with many property owners opting to remain uninsured or under-insured because of the high costs. Read the court decision
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Construction Litigation Roundup: “The New Empty Chair.”

June 04, 2024 — Daniel Lund III - Lexology
In a unanimous opinion, the United States Supreme Court ruled that cases in litigation in federal court but which are determined to be governed by the Federal Arbitration Act should be stayed pending arbitration, not dismissed. Traditionally, some federal circuits treated the text of 9 U.S.C. §3 – which speaks in terms of a stay of a matter filed in court but referred to arbitration (“…shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement…”) – as discretionary, dismissing suits when all of the claims brought in the court were referred to arbitration. In the case, the plaintiffs sued in Arizona state court on labor law violations, and the case was removed to federal court. When the defendant moved to compel arbitration and to dismiss, the plaintiffs “conceded that all of their claims were arbitrable.” Nonetheless, the plaintiffs requested a stay of the case, which the district court refused, dismissing the case without prejudice. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Landmark Montana Supreme Court Decision Series: The Duty to Defend

February 28, 2022 — Lorelie S. Masters, Patrick M. McDermott & Rachel E. Hudgins - Hunton Insurance Recovery Blog
This post in our Landmark Montana Supreme Court Decision Series discusses the Montana Supreme Court’s consideration of an insurer’s duty to defend in National Indemnity Co. v. State, 499 P.3d 516 (Mont. 2021). For 67 years, W.R. Grace & Company’s mining operations spread asbestos through the town of Libby, Montana, causing elevated rates of asbestosis and asbestos-related cancer in Libby residents – even among those who never worked in the mine. The Environmental Protection Agency deemed the Libby Mine the “most significant single source of asbestos exposure” in US history. In 2000, Libby residents began filing lawsuits against the State of Montana, alleging that the State had failed to warn them about the mine’s danger, and this failure contributed to their bodily injuries. Id. at 521-22. The Libby plaintiffs’ asbestos exposures and related injuries had occurred decades earlier, and so the State searched its storage units for records of any potentially applicable insurance policies. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth, Patrick M. McDermott, Hunton Andrews Kurth and Rachel E. Hudgins, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Ms. Hudgins may be contacted at rhudgins@HuntonAK.com Read the court decision
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25 Years of West Coast Casualty’s Construction Defect Seminar

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
For a quarter of a century, West Coast Casualty’s Construction Defect Seminar has been a professional development staple of the construction defect industry. It’s the place where experts, attorneys, mediators, insurance agents, and other industry leaders have gathered to discuss current happenings, take continuing education credits, network with other industry members, and to connect with others. Celebrating its silver anniversary, this year’s seminar continues to be the construction defect community’s must-go-to event. On May 16th-18th, the seminar will return to the Disneyland Hotel. This issue of Construction Defect Journal will provide you with information about what’s happening in and around the West Coast Casualty Seminar and to commemorate the past. We hope to see you at this year’s West Coast Casualty’s Construction Defect Seminar. Enjoy! Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES