FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

There’s Still No Amazon for Housing, But Fintech’s Working on It

February 14, 2022 — Patrick Clark - Bloomberg
It’s hard to imagine a better scenario for real estate technology than the one that played out in 2021. Low interest rates and pent-up demand ignited the hottest housing market on record, while the pandemic gave buyers and sellers new reasons to conduct business virtually. And yet the year will be better remembered for the way some of the biggest names in the industry struggled. The highest-profile flop was Zillow Group Inc., the online listings giant that pulled the plug on its nascent instant homebuying operation in the face of mounting losses. Compass Inc., the tech-driven real estate brokerage, saw its shares plummet 50% as part of a broader selloff in property-related technology stocks. Better, an online mortgage company, fired 9% of its staff. The bumpy year underscored a problem that’s been holding back the adoption of technology in real estate for the past two decades. Each sale of a home involves hundreds of thousands if not millions of dollars, and no two properties are exactly alike. Silicon Valley-backed companies have gone a long way in making searching for homes and advertising them simpler and faster. But it’s a difficult process to move fully online and involves a lot of people such as agents, appraisers, brokers, and contractors, as well as entrenched interests. For example, Zillow’s house buying business—billed as a way for customers to get out of their homes quickly and speed the moving process—faltered in part because the company couldn’t find enough contractors to fix up those homes to resell them. Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

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How to Prepare for Potential Construction Disputes Resulting From COVID-19

August 24, 2020 — Helga A. Zauner & Sonia Desai - Construction Executive
Every industry has been affected by the COVID-19 pandemic, and construction is no exception. While construction work was deemed essential in some places, it has been limited only to pandemic-related projects in others. In the current climate, construction companies face a myriad new challenges, including concerns about health and safety, delays resulting from employee illnesses, supply chain disruptions and increased prices for materials, as well as contract delays or cancellations by concerned contract owners. Contractors must keep their employees safe and institute what could be costly best-practice measures, while facing potential claims from employees if they get sick due to a company’s perceived lack of response to the dangers of the coronavirus. Stakeholders in the construction process need to prepare for potential disputes and understand their rights and responsibilities. This includes understanding applicable clauses in construction contracts and subcontractor agreements as well as business interruption clauses and other provisions in insurance contracts. Stakeholders may need to seek professional counsel to help them understand their rights and responsibilities in potential disputes. Reprinted courtesy of Helga A. Zauner & Sonia Desai, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Zauner may be contacted at helga.zauner@weaver.com Ms. Desai may be contacted at sonia.desai@weaver.com Read the court decision
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The Importance of Providing Notice to a Surety

October 21, 2015 — Craig Martin – Construction Contractor Advisor
A recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default. When the question of whether a surety will be obligated under the bond is in the balance, notice is crucial. In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided:

“PRINCIPAL DEFAULT. Whenever the Principal [Subcontractor] shall be, and is declared by the Obligee [CMS] to be in default under the Subcontract, with the Obligee having performed its obligations in the Subcontract, the Surety [Safeco] may promptly remedy the default, or shall promptly: 4.1 COMPLETE SUBCONTRACT. . . . 4.2 OBTAIN NEW CONTRACTORS. . . . 4.3 PAY OBLIGEE. . . . 4.4 DENY LIABILITY. . .”

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Product Liability Alert: “Sophisticated User” Defense Not Available by Showing Existence of a “Sophisticated Intermediary”

November 26, 2014 — R. Bryan Martin & Kristian B. Moriarty - Haight Brown & Bonesteel LLP
In Gottschall v. Crane Co., (No. A136516, Filed 10/8/2014, published 10/22/2014), the Court of Appeal, First Appellate District, held a company that manufactured and sold asbestos-containing products could not prevail under the “sophisticated user” doctrine based on the contention that a “sophisticated intermediary” existed, in an action brought by the end user of the products. Decedent Robert Gottschall worked in a variety of shipyards for the U.S. Navy between 1957 and 1989. Defendant Crane Co. (“Crane”) manufactured and sold products containing asbestos to the Navy during that time. During his work at the various shipyards, decedent was exposed to asbestos and contracted mesothelioma. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com; Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Los Angeles Is Burning. But California’s Insurance Industry Is Not About to Collapse.

January 14, 2025 — Jerry Theodorou - R Street
Five fires are raging in the Los Angeles outskirts currently – the Palisades Fire, the Eaton Fire, the Lidia Fire, the Sunset Fire, and the Hurst Fire. They have been stoked by a trifecta of 100 mph wind gusts, elevated heat, and bone-dry grass and shrubs serving as tinder. The severity of the fires has raised questions about the role of climate change in the conflagrations and insurers’ claims-paying capacity. But while we recognize the immensity of the hardship and tragedy to many Angelenos from the fires, we also must recognize that California’s insurance industry is not about to collapse. Many have ignored or missed recent reforms to California insurance regulation that are poised to make the private market more sustainable, and help stem an exodus of insurers from the Golden State. Whether the intensity of wildfires is exacerbated by climate change is an open question. An R Street study found that natural catastrophes have increased in severity, but not in frequency. And the main reason catastrophe severity has risen is an increase in the built environment – there is simply more stuff now to be destroyed. Read the court decision
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Reprinted courtesy of Jerry Theodorou, R Street
Mr. Theodorou may be contacted at jtheodorou@rstreet.org

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First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period

May 18, 2020 — Eric B. Hermanson & Austin D. Moody - White and Williams
On April 1, 2020, the First Circuit, applying Massachusetts law, issued a potentially useful decision addressing the Montrose “known loss” language in ISO Form CGL policies. In Clarendon National Insurance Company v. Philadelphia Indemnity Insurance Company,[1] the court applied this language to allow denial of defense for claims of recurring water infiltration that began before the insurer’s policy period, and it found an insurer had no duty to investigate whether the course of property damage might have been interrupted, or whether other property damage might have occurred during the policy period, so as to trigger coverage during a later policy. In the underlying dispute, a condominium owner (Doherty) asserted negligence claims against her association’s property management company (Lundgren) stemming from alleged water infiltration into her condominium. The complaint said leaks developed in 2004 in the roof above Doherty’s unit, and repairs were not made in a timely or appropriate manner. The following year, the complaint said, a Lundgren employee notified Doherty that the threshold leading to her condominium's deck was rotting. In February 2006, Doherty discovered a mushroom and water infiltration on the threshold and notified Lundgren. At that time, Lundgren asked its maintenance and repair contractor (CBD) to replace the rotting threshold. According to the complaint, CBD did not do this repair in a timely manner and left debris exposed in Doherty’s bedroom. In March 2006, the complaint said, a mold testing company hired by Lundgren found hazardous mold in Doherty's unit, caused by water intrusions and chronic dampness. Lundgren’s attempts at remediation were ineffectual. In September 2008, Doherty's doctor ordered her to leave the condominium and not to return until the leaks were repaired and mold was eliminated. Reprinted courtesy of Eric B. Hermanson, White and Williams and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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Court Rejects Efforts to Limit Scope of Judgment Creditor’s Direct Action Under Insurance Code Section 11580

May 01, 2019 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Ins. Co. of St. of PA v. Amer. Safety Indemnity Co. (No. B283684, filed 3/1/19) (“ICSOP”), a California appeals court rejected one insurer’s efforts to limit the scope of another insurer’s direct action as a judgment creditor under Insurance Code section 11580(b)(2). In ICSOP, homeowners filed a claim in arbitration against their general contractor alleging damages from subsidence. While the arbitration was pending, the general contractor filed suit against the grading subcontractor seeking indemnity and contribution. The complaint attached the homeowners’ complaint in arbitration pleading damages of $2.3 million, and alleged that the subcontractors had a duty to indemnify for those damages. The arbitrator awarded the homeowners $1.1 million. The general contractor was insured by plaintiff ICSOP, which paid the arbitration award. A default judgment was entered against the grading subcontractor for $1.5 million, that included both the arbitration award plus $356,340 for the general contractor’s attorney’s fees. American Safety insured the grading subcontractor but refused to indemnify ICSOP. ICSOP then sued American Safety on the default judgment, pursuant to Insurance Code section 11580(b). The trial court granted summary judgment for ICSOP and the appeals court affirmed. Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Read the court decision
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Singapore Unveils Changes to Make Public Housing More Affordable

September 23, 2019 — Katrina Nicholas & Joyce Koh - Bloomberg
Singapore may increase its supply of public housing next year as the city-state introduced measures Tuesday aimed at making such homes more affordable. Minister for National Development Lawrence Wong said the measures would help more Singaporeans from lower to upper-middle income households buy their first homes. The Housing & Development Board, which is the body responsible for public housing, would probably have to increase supply in 2020 to meet the additional demand expected to stem from the changes, according to a joint statement from MND and HDB. Read the court decision
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Reprinted courtesy of Katrina Nicholas & Joyce Koh, Bloomberg

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