Fairfield Connecticut Building Expert Directory

Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause

July 11, 2018 — Shannon M. Warren - The Subrogation Strategist
In recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to work versus non-work property. The distinction between work and non-work property has been commonly litigated and remains a hotly debated topic when handling subrogation claims involving construction defects. In Liberty Mutual Fire Ins. Co. v. Fowlkes Plumbing, 2018 U.S. Dist. LEXIS 23515 (February 12, 2018), a fire consumed the entire insured risk when one of the defendants was performing window restoration services. Subsequently, the insured’s subrogated insurer filed suit against several defendants involved in the construction project at issue. In response to the defendants’ motion for summary judgment, the District Court for the Northern District of Mississippi considered whether the waiver of subrogation clause in AIA contract form A201-2007 precluded the subrogated insurer from recovering damages from the defendants. The court held that the waiver of subrogation provision contained in AIA document A201-2007 barred the insurer from recovering for damages to the work itself, but did not apply to non-work property. Read the court decision
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Reprinted courtesy of Shannon M. Warren, White and Williams LLP
Ms. Warren may be contacted at warrens@whiteandwilliams.com

EPC Contractors Procuring from Foreign Companies need to Reconsider their Contracts

July 18, 2018 — Hwan Kim – Construction & Infrastructure Law Blog
A recent California case may force engineering, procurement and construction companies doing business with foreign suppliers to reconsider—and maybe rewrite—their contracts. In Rockefeller Technology Investments (Asia) VII v. Changzhou SinoType Technology Co., Ltd., the California Court of Appeal held that parties may not contract around the formal service requirements of the Convention on the Service Abroad of Judicial and Extrajudicial Documents, commonly referred to as the Hague Service Convention. The decision could have profound implications for international business. Read the court decision
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Reprinted courtesy of Hwan Kim, Sheppard, Mullin, Richter & Hampton LLP
Mr. Kim may be contacted at hkim@sheppardmullin.com

Hundreds of Coronavirus Coverage Cases Await Determination on Consolidation

September 21, 2020 — Tred R. Eyerly - Insurance Law Hawaii
On July 30, 2020, the Judicial Panel on Multi-District Litigation (JPML) heard oral argument on the potential consolidation of all federal cases involving business interruption coverage relating to coronavirus and shut-down orders. A decision will be rendered in the near future. Meanwhile, many cases are on hold, waiting for a determination on consolidation. One such case is Pigment Inc. v. Hartford Fin. Servs. Group, 2020 U.S. Dist. LEXIS 133230 (S.D. Cal. July 27, 2020), where the court granted a stay pending a decision by the JPML. The case is a class action based on denial of coverage under business interruption insurance. Plaintiff's case alleged a bad faith denial that risked the permanent closure of its business due to unexpected temporary shutdowns from the COVID-19 pandemic. Plaintiff sought a stay pending the decision of the JPML. The court considered the possible damage which could result from granting a stay, the hardship which a party could suffer in being required to go forward, and the orderly course of justice measured by the simplifying or complicating of issues, proof, and questions of law which could be expected to result from a stay. 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

Recent Developments Involving Cedell v. Farmers Insurance Company of Washington

September 05, 2022 — Donald Verfurth, Sally Kim, Stephanie Ries & Kyle Silk-Eglit - Gordon & Rees Insurance Coverage Law Blog
Ever since the Washington Supreme Court’s 2013 decision in Cedell v. Farmers Insurance Company of Washington, 176 Wn.2d 686, 295 P.3d 239 (2013), insurance coverage attorneys have been struggling to define the exact parameters of the Cedell ruling in order to safeguard the attorney-client privilege as to the communications between the insurer and its counsel. As a brief background, the Washington Supreme Court held in Cedell that there is a presumption of no attorney-client privilege in a lawsuit involving bad faith claims handling. However, an insurer can overcome the presumption of no attorney-client privilege by showing that its counsel provided legal advice regarding the insurer’s potential liability under the policy and law, and did not engage in any quasi-fiduciary activities, i.e. claims handling activities, such as investigating, evaluating, adjusting or processing the insured’s claim. Since Cedell, various trial courts have held that the following activities by an insurer’s counsel constitute quasi-fiduciary conduct that do not overcome the presumption of no attorney-client privilege, resulting in an order to produce documents and/or to permit the deposition of the insurer’s counsel:

Insurer’s attorney being the primary or sole point of contact with the insured for the insurer;
Insurer’s attorney requesting documents from the insured that are relevant to the investigation of the claim;
Insurer’s attorney communicating directly with the insured or the insured’s counsel regarding claims handling issues or payments;
Insurer’s attorney interviewing witnesses for purposes of the investigation of the claim;
Insurer’s attorney conducting an examination under oath of the insured;
Insurer’s attorney drafting proposed or final reservation of rights letter or denial letter to the insured; and
Insurer’s attorney conducting settlement negotiations in an underlying litigation.

Reprinted courtesy of Donald Verfurth, Gordon Rees Scully Mansukhani, Sally Kim, Gordon Rees Scully Mansukhani, Stephanie Ries, Gordon Rees Scully Mansukhani and Kyle Silk-Eglit, Gordon Rees Scully Mansukhani Mr. Verfurth may be contacted at dverfurth@grsm.com Ms. Kim may be contacted at sallykim@grsm.com Ms. Ries may be contacted at sries@grsm.com Mr. Silk-Eglit may be contacted at ksilkeglit@grsm.com Read the court decision
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Putting 3D First, a Model Bridge Rises in Norway

June 21, 2021 — Aileen Cho - Engineering News-Record
When the Norwegian Public Roads Administration asked the design-build team of Sweco, PNC, Armando Rito Engenharia and Isachsen to deliver a 643-meter-long concrete box-girder bridge completely in 3D, designers with Armando Rito were initially a bit skeptical. In the firm’s home country of Portugal, it had used building information modeling on some projects, “but not in terms of bridges, and not this advanced,” says Tiago Vieira, the firm’s design team leader. “Norway is more advanced regarding this type of methodology than other countries.” Reprinted courtesy of Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story... Read the court decision
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Sales of New Homes in U.S. Increased 5.4% in July to 507,000

August 26, 2015 — Shobhana Chandra – Bloomberg
Purchases of new homes in the U.S. rebounded in July, bolstering signs the real-estate market is picking up. Sales climbed 5.4 percent, the biggest gain this year, to a 507,000 annualized pace from a 481,000 rate in the prior month, a Commerce Department report showed Tuesday in Washington. The median forecast of 75 economists surveyed by Bloomberg called for 510,000. Demand had declined 7.7 percent in June. Demand for new properties is likely to keep expanding amid strong employment, low borrowing costs and a lack of available existing homes from which to choose. The improving outlook may spur more residential construction, contributing to the economic expansion in the second half of the year. Read the court decision
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Corps of Engineers to Prepare EIS for Permit to Construct Power Lines Over Historic James River

May 01, 2019 — Anthony B. Cavender - Gravel2Gavel
On March 1, the U.S. Court of Appeals for the District of Columbia decided National Parks Conservation Assoc. v. Todd T. Simonite, Lieutenant General, et al. The case involves an application to the U.S. Army Corps of Engineers (Corps) for a construction permit to build electric power lines over the “historic James River, from whose waters Captain John Smith explored the New World.” The Corps concluded after reviewing the thousands of comments submitted to it in connection with this application, and after considering the views of several government agencies and conservation groups, that an Environment Impact Statement (EIS) was not required, and that its Environmental Assessment assured the Corps that the project would not result is significant environmental impacts. The Court of Appeals has concluded that, based on this evidence, the Corps’ refusal to prepare an EIS thoroughly discussing all these points was arbitrary and capricious. The Corps has been ordered to prepare the EIS and to take special note of its obligations under the National Environmental Protection Act (NEPA), the Clean Water Act (CWA) and its obligations under the National Historic Preservation Act. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

US Secretary of Labor Withdraws Guidance Regarding Independent Contractors

June 21, 2017 — Tanya Salgado - White and Williams LLP
The United States Secretary of Labor has withdrawn an informal guidance regarding independent contractors issued in 2015. We reported on the 2015 Administrator’s Interpretation here. The 2015 Interpretation provided a detailed explanation of the economic realities test, which is used to determine whether a worker is to be classified as an independent contractor or an employee under the Fair Labor Standards Act (FLSA). While the 2015 Interpretation did not change existing case law on independent contractor status, it was seen as sending a signal from the Department of Labor (DOL) regarding the agency’s focus. The DOL concluded the 2015 Interpretation with the statement, “most workers are employees under the FLSA’s broad definitions…” Just as the DOL’s 2015 Interpretation did not change existing case law, the DOL’s withdrawal of the Interpretation does not change the law in any way. The economic realities test remains the legal standard for determining independent contractor status under the FLSA. Read the court decision
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Reprinted courtesy of Tanya Salgado, White and Williams LLP
Ms. Salgado may be contacted at salgadot@whiteandwilliams.com

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