FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Are Defense Costs In Addition to Policy Limits?

December 02, 2015 — Craig Martin – Construction Contractor Advisor
I recently had a discussion with an insurer about whether defense costs were included within the policy limits of a client’s coverage or in addition to policy limits. This was an important discussion because if costs of defense were included in the policy limits, my client was going to exceed those policy limits in a hurry. How would this situation play out with your insurance? Fortunately, the majority of insurance policies, such as Commercial General Liability (CGL) policies, provide that defense costs are “in addition” to the policy limits. But some policies, often times referred to as “burning limits” policies, provide that cost of defense is included in the policy limits. This means that if you have $1,000,000.00 policy limits, your costs of defense will reduce that limit throughout the course of litigation. Read the court decision
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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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New York Labor Laws and Action Over Exclusions

February 01, 2021 — Theresa A. Guertin & Ashley McWilliams - Saxe Doernberger & Vita, P.C.
One of the most important methods for shifting risk in the construction context is insurance coverage. Upstream parties such as owner/developers and general contractors typically require that their downstream subcontractors who perform work on their properties or projects bring specific insurance to the table. These insurance requirements have a twofold purpose: protect the upstream parties, through additional insured coverage, from liabilities caused by the subcontractor; and protect the downstream parties by ensuring that they have adequate insurance for their own potential liabilities. In New York, subcontractor insurance coverage can have some surprising terms which frustrate risk transfer. Numerous policies contain “Action Over” exclusions, which bar coverage for one of the most significant exposures faced by owner-developers and general contractors: bodily injury lawsuits brought by subcontractor employees. It is critical that upstream parties understand the unique impact of New York’s labor laws on the insurance market and be prepared to identify and request removal of Action Over exclusions on subcontractor insurance policies. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and Ashley McWilliams, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at TGuertin@sdvlaw.com Ms. McWilliams may be contacted at AMcWilliams@sdvlaw.com Read the court decision
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Effective Allocation of Damages for Federal Contract Claims

October 25, 2021 — Dirk D. Haire, Joseph L. Cohen & Jane Han - ConsensusDocs
Federal construction contracts law generally recognizes four basic methods for pricing damages: (1) Actual Cost Method (ACM); (2) Total Cost Method (TCM); (3) Modified Total Cost Method (MTCM); and (4) Jury Verdict Recovery Method (JVRM). In practice, it is difficult to obtain significant recoveries on TCM and JVRM claims, and only marginally easier on MTCM claims. That is because the courts and boards that hear federal government contracts cases have developed a clear preference for the ACM. Despite this preference, many contractors do not have systems in place to maximize their opportunity to recover damages under the ACM. This article introduces various strategies for tracking and allocating damages during project performance in a manner that will support an ACM analysis if a federal construction claim is litigated. Background: Four Basic Methods for Pricing Damages The four methods for pricing damages are described, below: 1. Actual Cost Method The actual cost method claims damages based on records of “actual costs” that were documented during the performance of the contract. All additional costs must be separately recorded from the costs incurred in the normal course of contract performance. Because contractors provide the court or board with documented underlying expenses under the actual cost method, courts and boards prefer this method. However, the actual cost method may not always be feasible where a contractor is confronted with drastic changes early and often in a project. Reprinted courtesy of Dirk D. Haire, Fox Rothschild LLP, Joseph L. Cohen, Fox Rothschild LLP and Jane Han, Fox Rothschild LLP Mr. Haire may be contacted at dhaire@foxrothschild.com Mr. Cohen may be contacted at jlcohen@foxrothschild.com Read the court decision
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Hunton Insurance Recovery Partner Michael Levine Quoted on Why Courts Must Consider the Science of COVID-19

March 15, 2021 — Latosha M. Ellis & Matt Revis - Hunton Insurance Recovery Blog
One year into the COVID-19 pandemic, courts have issued hundreds of rulings in COVID-19 business interruption lawsuits, many favoring insurers. Yet those pro-insurer rulings are not based on evidence, much less expert opinion evidence. For insurers, ignorance is bliss. Despite early numbers in federal courts favoring insurers (state court decisions actually favor policyholders), the year ahead holds promise for policyholders. Fundamental science is the key. Indeed, as researchers continue to broaden their knowledge about COVID-19, it has become increasingly clear that scientific evidence supports coverage for policyholders’ claims. Reprinted courtesy of Latosha M. Ellis, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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Biden’s Solar Plans Run Into a Chinese Wall

May 23, 2022 — Liam Denning - Bloomberg
A new and unexpected obstacle to President Joe Biden’s green ambitions has emerged: a tiny solar-power company based in San Jose. Auxin Solar Inc., which accounts for all of 2% of U.S. solar-module manufacturing, recently persuaded the Commerce Department to open a potentially devastating trade inquiry. After the U.S. imposed anti-dumping measures against Chinese solar-cell and module manufacturers just over a decade ago, alternative suppliers sprang up in South Korea and Southeast Asia. Auxin now contends that those other Asian suppliers are effectively used by Chinese companies to circumvent the anti-dumping measures. If Commerce ultimately agrees, then more than four-fifths of solar-module imports to the U.S. and half of all cells could suddenly be subject to steep tariffs, perhaps levied retroactively. The Solar Energy Industries Association warns of dire consequences for U.S. solar-power development — critical to Biden’s decarbonization targets — claiming that some suppliers are already backing away because of the risk. Heavyweight NextEra Energy Inc. warns that the investigation may delay 2.8 gigawatts of projects slated for this year. Timothy Fox of ClearView Energy Partners, a Washington-based analysis firm, says Commerce’s “structural” inclination toward protectionism may lead it to concur with Auxin. Read the court decision
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Reprinted courtesy of Liam Denning, Bloomberg

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Subcontractor Not Estopped from Enforcing Lien Not Listed In Bankruptcy Petition

March 01, 2017 — Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLP
In Stock Building Supply, Inc. v. Platte River Insurance Co.,[1] the Court of Appeals dealt with issues of judicial estoppel, bankruptcy, retroactive application of statutory lien amendments, and the full payment defense. The owner, Madison Retail-Suwanee, LLC (“Madison”) hired Cannon/Estapa General Contractors, Inc. (“Cannon”) to be the general contractor for the construction of a shopping center (“the Project”). Cannon subcontracted with Stock Building Supply (“Stock”) to supply labor, materials, and services for the Project. Cannon failed to complete the project and Madison had yet to pay Cannon the full contract price. In 2007, Stock timely filed a lien on the Project and obtained a judgment against Cannon for the amount due under the subcontract. Platte River Insurance Company (“Platte”), the surety, issued a bond to discharge Stock’s lien. Consequently, Stock pursued an action against Platte to collect the judgment in the amount of $93,865.27. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

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From the Ground Up

March 06, 2022 — Maggie Murphy - Construction Executive
As a veteran of the U.S. Marine Corps, Mari Borrero knows a thing or two about stepping up to a challenge. She describes her time in the military as “one of those milestones that changes your life,” and credits the experience with turning her from a self-described “entitled teenager” into the woman she is today: fearless, bold and relentless in pursuit of her dreams. A career in the construction industry was never on the table for Borrero, who, after being honorably discharged from the Marine Corps, worked as a hospice-care coordinator and then a teacher in support of her then-third-grade son. The common thread in all these occupations? A genuine desire to put the needs of others before her own. Today, Borrero says she can’t imagine doing anything other than what she now calls work—owning and operating a construction business, Auburn, Washington–based American Abatement & Demo. Easing Transitions Born in Bayamón, Puerto Rico, Borrero was five when her mother moved the family to Dallas to seek life-saving treatment at Children’s Medical Center Dallas for her brother, who had a rare kidney disease. A local church supported the family, providing housing, food and clothing until they were able to transition into their own space. Reprinted courtesy of Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Too Late for The Blame Game: Massachusetts Court Holds That the Statute of Repose Barred a Product Manufacturer from Seeking Contribution from a Product Installer

March 21, 2022 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Wangs Alliance Corp., No. 21-cv-10389-AK, 2022 U.S. Dist. LEXIS 26712, the United States District Court for the District of Massachusetts (District Court) considered whether a product manufacturer was barred by the Commonwealth’s six-year statute of repose for improvements to real property from joining the installer of the product as a third-party defendant. The court denied the defendant’s motion for leave to file a third-party complaint to join the installer, finding that the installer completed its work more than six years prior to the motion being filed. This case reminds us that Massachusetts’ six-year statute of repose for improvement to real property also bars a defendant’s contribution claims against third parties. The Wangs Alliance case involves a subrogation action filed by State Farm Fire & Casualty Insurance (Insurer) against Wangs Alliance Corp. (Wangs), a manufacturer of rope lighting. Insurer insured the homeowners, who experienced a fire in their home in 2018. The home was originally built in 2002 by Wellen Construction (Wellen). As part of the original construction, Wellen installed rope lighting manufactured by Wangs in the house. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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