FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Delaware District Court Finds CGL Insurer Owes Condo Builder a Duty to Defend Faulty Workmanship Claims — Based on the Subcontractor Exception to the Your Work Exclusion

October 04, 2021 — Anthony L. Miscioscia & Laura Rossi - White and Williams
On September 7, 2021, in one of the few decisions addressing the scope of coverage for faulty workmanship under Delaware law, the Delaware District Court denied an insurer’s motion seeking a declaration that it neither needed to defend nor indemnify an insured-builder under a commercial general liability policy. In this declaratory judgment action, Pennsylvania National Mutual Casualty Insurance Company v. Zonko Builders, the insurer argued that the ongoing underlying action failed to properly plead an “occurrence” in a case alleging damages to a condominium caused by faulty workmanship involving subcontractors.* Zonko Builders (Zonko) served as the general contractor, supervising subcontractors. The Condominium Association sued Zonko for damages allegedly resulting from design and construction deficiencies. The motion was opposed by the Condominium Association, which cross-moved for partial judgment on the pleadings. In AE-Newark Associates, L.P. v. CNA Insurance Companies, 2001 Del. Super. LEXIS 370 (Del. Super. Ct. Oct. 2, 2001), the Delaware Superior Court found that an insured was entitled to coverage for damages arising from a faulty roof system installed by a subcontractor on behalf of the insured general contractor. Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Laura Rossi, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Rossi may be contacted at rossil@whiteandwilliams.com Read the court decision
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Construction Is Holding Back the Economy

February 28, 2018 — Noah Smith - Bloomberg
Changes in contracts and rules could make the sector a lot more efficient. The question of whether to prioritize jobs or economic efficiency is always difficult. Nowhere is this more of a dilemma than in the construction industry. In a world of rapid technological disruption, construction is a rock of solidity to which many blue-collar workers can cling. The industry still employs about 7 million workers in the U.S. The job doesn’t change that much from decade to decade. It’s a big broad occupation, unlike social-media marketing or other new niche jobs, so it allows working-class people to minimize the time and effort they spend building for a career. And workers get trained on the job, without years of college. What’s more, construction workers are mostly male. To the degree this is a result of sexism, that’s bad. But it also means that the construction industry employs lots of men, at a time when they haven’t been doing so well in the jobs department. Read the court decision
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Reprinted courtesy of Noah Smith, Bloomberg

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Legal Risks of Green Building

March 22, 2021 — Mark D. Shifton - Construction Executive
All construction projects involve elements of legal risk. Insurance and indemnity claims, delay claims and professional negligence claims are simply accepted risks when involved in construction. Green building projects are no exception to this rule, and often involve unique issues that are not present in typical construction projects. Green building projects commonly employ new or untested construction materials, require construction methods that lack significant track records, and ultimate building performance often fails to meet design expectations. As such, green building projects may give rise to entirely new types of legal risk that should be considered and allocated early in the process. In the past 15 years, the number of buildings for which green certifications have been sought has grown exponentially, and the growth rate of green building and sustainable construction has far outpaced the growth rate of the construction industry as a whole. As green building projects become increasingly common (and often increasingly required by the federal, as well as state and local governments), the unique legal risks presented by green building projects take on an increase importance. Reprinted courtesy of Mark D. Shifton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Shifton may be contacted at mshifton@gllawgroup.com

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What You Need to Know About Notices of Completion, Cessation and Non-Responsibility

June 30, 2016 — Garret Murai – California Construction Law Blog
We talk a lot about contractors on the California Construction Law Blog. Owners? Not so much. So this one’s for you. Why are Notices of Completion, Cessation and Non-Responsibility Important to Owners? California recognizes three types of statutory notices on construction projects available to owners:

• Notices of completion;
• Notices of cessation; and
• Notices of non-responsibility.
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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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Employee Screening and Testing in the Covid-19 Era: Getting Back to Work

August 10, 2020 — Aaron C. Schlesinger & Shannon D. Azzaro - Peckar & Abramson
Currently Available Workplace Protocols for Employers Employers seeking to minimize the risk of COVID-19 transmission in the workplace should consider from among the three currently available protocols: Written Questionnaires; Temperature Checks; and Viral or Diagnostic Testing. When implementing a screening or testing protocol, employers should explain the following in writing to employees: (1) the specific screening process or test utilized by the employer; (2) employee compliance expectations and any consequences for a refusal to participate; (3) how employee privacy will be protected; (4) if screening, the general benchmarks that indicate the employee has “passed” (e.g., temperature below 100.4ºF, per CDC guidelines); and (5) the outcome of an unsuccessful screen or test (e.g., being sent home from the workplace). Employers must also ensure that those administering the screening and/or testing are properly trained, and that appropriate written acknowledgements are obtained from employees consenting to the applicable protocol. Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson and Shannon D. Azzaro, Peckar & Abramson Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Ms. Azzaro may be contacted at sazzaro@pecklaw.com Read the court decision
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New York Appellate Court Holds Insurer’s Failure to Defend Does Not Constitute a “Reasonable Excuse” Required to Overturn Judgment

January 21, 2019 — Timothy Carroll & Anthony Miscioscia - White and Williams
A recent opinion by the New York Supreme Court, Appellate Division (Second Department) highlights the potential risks for an insurer leaving an insured unrepresented while the insurer pursues other parties or insurers who may be primarily responsible for defending the insured. In refusing to overturn a default judgment entered against an insured while its insurer knew that a complaint had been filed but refused to defend, the New York court’s decision raises questions about how claims adjusters are to effectively manage new claims to prevent a default judgment being entered against the insured, while at the same time ensuring that the appropriate party or insurance company handles the insured’s defense. In Kaung Hea Lee v. 354 Management Inc., 2018 N.Y. App. Div. LEXIS 7749 (N.Y. App. Div. Nov. 14, 2018) (354 Management) the underlying plaintiffs obtained a default judgment against the defendant insured due to its failure to answer the plaintiffs’ complaint. The plaintiffs then moved to determine the extent of damages to which they were entitled by virtue of the default judgment. The defendant opposed that motion, relying on an affidavit from a senior liability claims adjuster employed by the defendant’s insurer. “In the affidavit, the claim adjuster stated that she did not assign an attorney to answer the complaint because the codefendant . . . was contractually obligated to defend and indemnify the defendant [insured], and she had been attempting to have either [the codefendant] or its insurer provide an attorney” for the defendant. However, it was determined that the claims adjuster knew about the plaintiffs’ complaint two weeks after the plaintiffs served it on the defendant and months before the plaintiffs moved for default judgment. Despite this knowledge, the defendant’s insurer did not provide a defense or, apparently, obtain an extension of time to respond to the complaint, which led to the default judgment. Reprinted courtesy of Timothy Carroll, White and Williams and Anthony Miscioscia, White and Williams Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Read the court decision
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Contractors Should be Aware of Homeowner Duties When Invited to Perform Residential Work

September 26, 2022 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Division 2 of the Court of Appeals[1] recently addressed a property owner’s liability to a contractor who is injured performing work on their property. The action arose from an incident in which Virgil Mihaila, a remodeling contractor, fell from a ladder while installing a new roof on the Troths’ shed and landed on a metal grounding rod that was sticking over a foot out of the ground. Mihaila saw the grounding rod as he was working and recognized the danger, but he claimed that he could not complete the roofing job without encountering it. Although he tried to position his ladder so that he would avoid the grounding rod if he fell, he somehow fell off the ladder and landed on the grounding rod, sustaining multiple rib fractures and a punctured lung. Mihaila filed a complaint against the Troths, alleging that they were negligent in failing to protect him from the danger of the grounding rod sticking out of the ground. The Troths denied that they were negligent and asserted the affirmative defense of contributory negligence. The Troths filed a motion for summary judgment, which the trial court granted, stating that summary judgment was appropriate regarding the Troths’ duty because Mihaila “became aware of the risk, undertook to encounter the risk, and made his own efforts to mitigate the risk.” The trial court denied Mihaila’s motion for reconsideration and Mihaila appealed. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

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Coverage for Injury to Insured’s Employee Not Covered

June 10, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The employee exclusions in the employer's CGL and Umbrella policies barred coverage. Piatt v. Indiana Lumbermen's Mut. Ins. Co., 2015 Mo. LEXIS 32 (Mo. April 28, 2015). Linda Nunley was killed while working for Missouri Hardwood Charcoal, Inc. The kiln's large steel door had been removed and was leaning upright against another kiln when it blew over and crushed Ms. Nunley. Her family filed a wrongful death suit against Junior Flowers, the company's sole owner, director, and executive officer. The complaint alleged that Flowers was negligent in ordering employees to lean the kiln doors upright, even though he knew it was unsafe. The complaint further alleged that Flowers breached a personal duty of care owed to Ms. Nunley and that his actions were "something more" that a breach of the company's duty to provide a safe workplace. Flowers requested a defense under CGL and Umbrella policies issued by Lumbermen's. The policies insured Missouri Hardwood and its executive officers, but excluded liability for a work-related injury to an "employee of the insured." The policies also had a "separation of insureds" provision, stating that the insurance applied "separately to each insured against whom claim is made or suit is brought." Lumbermen's denied coverage. 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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