Fairfield Connecticut Building Expert Directory

“Over? Did you say ‘over’?”

December 31, 2024 — Daniel Lund III - Lexology
The United States Seventh Circuit Court of Appeals recently held that under the Federal Arbitration Act, an arbitrator – and not a court – is to determine the preclusive effect of an arbitrator’s earlier ruling. In the case, insurers engaged in three reinsurance agreements had previously arbitrated concerning one of the insurer’s billing methodologies. When a similar dispute occurred years later, the victors in the first arbitration – rather than pursuing arbitration – filed in federal court in Chicago seeking to have the court declare that the prior arbitration award precluded re-arbitration of the latest dispute. The insurer on the other side of the dispute moved to compel arbitration, a motion granted by the district court. The plaintiff insurers appealed. 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

PPP Loan Extension Ending Aug. 8

August 03, 2020 — Construction Executive
There is just over one week left to apply for the extended period of the Paycheck Protection Program, which will accept new applications through Aug. 8. Congress extended the legislation by unanimous consent on June 30 and President Trump signed the bill into law on July 4, 2020, allowing approximately $131.9 billion in funding to remain accessible to small businesses affected by the COVID-19 pandemic. Associated Builders and Contractors has expressed support for several changes to the PPP, but submitted comments on July 27, 2020, to the U.S. Department of the Treasury and U.S. Small Business Administration regarding changes to an interim final rule altering loan forgiveness and loan review procedures. ABC urges the government agencies to:

Provide further guidance on when businesses should apply for loan forgiveness and when they are notified of their forgiveness status.
Issue further guidance on the PPP audit process.
Increase flexibility for employee retention requirements and loan forgiveness.
Provide further clarification of non-payroll costs.
Refocus efforts to deliver PPP funds to underserved communities and minority businesses.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Biggest U.S. Gas Leak Followed Years of Problems, State Says

June 10, 2019 — Mark Chediak & Edvard Pettersson - Bloomberg
The worst natural gas leak in U.S. history, which broke out at a Sempra Energy storage field near Los Angeles almost four years ago, was caused by corrosion, according to a report commissioned by California regulators. The rupture of a 7-inch (18-centimeter) well casing at Sempra Energy’s Aliso Canyon storage complex was due to “microbial corrosion” brought on by contact with groundwater, an independent analysis conducted by Blade Energy Partners and commissioned by two state agencies found. The report also concluded there had been more than 60 leaks in the field dating back to the 1970s, and Sempra didn’t carry out detailed inspections after they occurred, the California Public Utilities Commission and Department of Conservation said in a joint statement. The company’s Southern California Gas lacked “any form of risk assessment” to manage the integrity of its wells and hadn’t established systematic practices to protect against corrosion and monitor well pressure, the agencies said. Reprinted courtesy of Mark Chediak, Bloomberg and Edvard Pettersson, Bloomberg Read the court decision
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Baby Boomer Housing Deficit Coming?

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Builder magazine, a new study by Epcon Franchising and Metrostudy found that “10 metro areas are expected to have a significant housing gap for baby boomers.” Furthermore, “52 percent of new-home buyers will be over 55 in the next five years.” Builder listed the top 10 markets that are expected to have a baby boomer housing deficit. The top three are Dallas-Fort Worth, Houston, and the District of Columbia. Read the court decision
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Senate Bill 15-091 Passes Out of the Senate State, Veterans & Military Affairs Committee

March 19, 2015 — David M. McClain – Colorado Construction Litigation
As previously reported, Senator Scott's SB 91, as originally introduced, would have reduced Colorado's statute of repose for construction defect actions from eight years to four years. Yesterday, the Senate State, Veterans & Military Affairs Committee heard Senate Bill 91 and, before passing the bill on a party line vote sending it back to the full Senate for consideration, made two substantive amendments. By one amendment, the Committee excluded any multi-family developments. The second amendment was to reduce the statute of repose from six years, currently on the books, to five years plus one more if the defect becomes manifest in the fifth year. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Liability Insurer Precluded from Intervening in Insured’s Lawsuit

September 17, 2018 — David Adelstein - Florida Construction Legal Updates
There are cases where I honestly do no fully understand the insurer’s position because it cannot have its cake and eat it too. The recent opinion in Houston Specialty Insurance Company v. Vaughn, 43 Fla. L. Weekly D1828a (Fla. 2d DCA 2018) is one of those cases because on one hand it tried hard to disclaim coverage and on the other hand tried to intervene in the underlying suit where it was not a named party. This case dealt with a personal injury dispute where a laborer for a pressure washing company fell off of a roof and became a paraplegic. The injured person sued the pressure washing company and its representatives. The company and representatives tendered the case to its general liability insurer and the insurer–although it provided a defense under a reservation of rights—filed a separate action for declaratory relief based on an exclusion in the general liability policy that excluded coverage for the pressure washing company’s employees (because the general liability policy is not a workers compensation policy). This is known as the employer’s liability exclusion that excludes coverage for bodily injury to an employee. The insurer’s declaratory relief action sought a declaration that there was no coverage because the injured laborer was an employee of the pressure washing company. The pressure washing company claimed he was an independent contractor, in which the policy did provide limited coverage pursuant to an endorsement. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Mitigating FCRA Risk Through Insurance

November 30, 2020 — Sergio F. Oehninger, Geoffrey B. Fehling & Matt Revis - Hunton Insurance Recovery Blog
As reported in a recent Hunton Andrews Kurth client alert, Mitigating FCRA Risks in the COVID-19 World (Oct. 23, 2020), consumer litigation claims related to the Fair Credit Reporting Act (FCRA) doubled in the years leading up to the COVID-19 pandemic. After a slight decrease in FCRA filings due to court closures and other COVID-19 restrictions, claims will likely resume their previous upward trajectory. In fact, the Consumer Financial Protection Bureau (CFPB) has already seen an uptick in consumer complaints, many of which mention COVID-19 specific keywords. Given the anticipated rise in FCRA complaints, the alert highlights the need for financial institutions and financial services companies to develop FCRA-compliant policies and procedures, including training on those policies and procedures, to mitigate the risk of FCRA-related enforcement actions and litigation claims, particularly in light of the regulatory changes relating to the COVID-19 pandemic. Another important risk mitigation tool to consider is insurance, which can offer protection when even the most robust preventative measures fail to prevent an FCRA claim. Coverage for FCRA-related claims—often from directors’ and officers’ (D&O) or errors and omissions (E&O) policies—might be broader than one would initially expect. Policies may cover defense costs involving legal fees, as well as indemnification for damages. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Charles Carter v. Pulte Home Corporation

October 12, 2020 — Michael Velladao - Lewis Brisbois
In Carter v. Pulte Home Corp., __Cal.App.5th__(July 23, 2020), the California Court of Appeal affirmed the entry of judgment in favor of subcontractors in connection with a Complaint for Intervention based on equitable subrogation filed by Travelers Property Casualty Company of America (“Travelers”) seeking to recover defense costs incurred in defending Pulte Home Corporation (“Pulte”) in an underlying construction defect lawsuit. The parties’ dispute arose out of Travelers’ defense of Pulte as an additional insured under policies issued to four subcontractors involved in the underlying construction defect lawsuit. Several subcontractors involved in the underlying construction defect lawsuit refused to defend Pulte based on the indemnity clauses in their subcontracts. Such clauses promised to indemnify Pulte as follows: “all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (“Claims”) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte. . . .” Pulte eventually settled the construction defect lawsuit and its claims against all of the subcontractors. Travelers ultimately paid $320,491.82 for Pulte’s defense and recovered $164,400 from some of the subcontractors. Travelers’ intervention in the underlying lawsuit was intended to recover the remaining $156,091.82 from the subcontractors that refused to indemnify Pulte for the defense of the construction defect lawsuit. In the underlying trial, Travelers argued that the subcontractors were obligated to pay defense costs on a joint and several basis (minus what Travelers had already recovered). The trial court did not agree and held that Travelers was not entitled to equitable subrogation for the remaining defense costs. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

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