Fairfield Connecticut Building Expert Directory

Fourth Circuit Rejects Application of Wrap-Up Exclusion to Additional Insured

December 11, 2018 — K. Alexandra Byrd & Samantha M. Oliveira - Saxe Doernberger & Vita, P.C.
Utilizing an owner-controlled or contractor-controlled insurance program (collectively known as “wrap-ups”) can reduce claims, save costs, and give owners and general contractors comfort in knowing their project is adequately insured. However, problems often arise when a subcontractor doesn’t enroll in the wrap-up and, instead, agrees to provide additional insured coverage to the owner and general contractor on the subcontractor’s own general liability policy. One of those problems is the prevalence of wrap-up exclusions on subcontractors’ general liability policies. If the wrap-up exclusion is too broadly drafted, the exclusion can eliminate coverage for the general contractor and owner even when the subcontractor is not enrolled in the wrap-up. Reprinted courtesy of K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. and Samantha M. Oliveira, Saxe Doernberger & Vita, P.C. Ms. Byrd may be contacted at kab@sdvlaw.com Mr. Oliveira may be contacted at smm@sdvlaw.com Read the court decision
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DA’s Office Checking Workers Comp Compliance

February 10, 2012 — CDJ STAFF

The San Bernardino office of the California District Attorney is partnering with the California Contractor’s State License Board to check if subcontractors are holding the required workers compensation insurance. The High Desert Daily Press reports that the process of checking at sites has been going on for several months.

Investigators visit sites and ask supervisors to provide a list of subcontractors which the state then checks for compliance. One worker was quoted that insurance inspections were so rare that he had never seen one before, despite 20 years in construction.

On one day, investigators in two teams visited fourteen construction sites and reviewed the insurance status of twenty-two firms. Three were found out of compliance and stop work orders were issued.

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Construction Upturn in Silicon Valley

August 17, 2011 — CDJ STAFF

Work resumed after nearly three years on an office tower in Santa Clara, according to the San Jose Mercury News. Work had stalled on the building due to the economy, but now the developer is planning a second five-story building on the site. Other dormant projects in the area are also getting restarted. Santa Clara County saw the addition of 1,800 construction jobs in June.

A spokesperson for the Operating Engineers Local 3 in Alameda told the paper, “two years ago we had five thousand folks on the out-of-work list. It’s now down to about 1,700.”

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Melissa Pang Elected Vice President of APABA-PA Board of Directors

December 21, 2016 — White and Williams LLP
Melissa Pang has been elected Vice President of the Asian Pacific American Bar Association of Pennsylvania's (APABA-PA) Board of Directors. She will serve a one-year term in the position, beginning January 1, 2017. As part of her responsibilities, Melissa will co-chair the National Asian Pacific American Bar Association Northeast Regional Conference, which will be hosted by the APABA-PA in Philadelphia. Melissa has been a member of the APABA-PA since 2010 and has served on the board since 2015. Her involvement includes participation on the Law Student Outreach Committee as well as the Annual Banquet Committee. In 2016, she chaired the organization's Lunar Banquet. Read the court decision
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Reprinted courtesy of Melissa Pang, White and Williams LLP
Ms. Pang may be contacted at pangm@whiteandwilliams.com

After Elections, Infrastructure Talk Stirs Again

December 04, 2018 — Tom Ichniowski - Engineering News-Record
In the wake of Democrats’ House takeover and Republicans widening their Senate majority in the midterm elections, talk has quickly revived about taking on infrastructure legislation in the new Congress. Construction industry officials welcome the pro-infrastructure rhetoric from congressional leaders and President Trump. But it remains to be seen whether the words will spark a bill that can make it through a divided 116th Congress. Funding the package remains the high hurdle. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Construction Defects Not Occurrences under Ohio Law

November 07, 2012 — CDJ STAFF
Concluding the “claims of defective construction or workmanship brought by a property owners are not claims for ‘property damage’ caused by an ‘occurrence’ under a commercial general liability policy,” the Supreme Court of Ohio has ruled in Westfield Insurance Co. v. Custom Agri Systems, Inc. In the underlying case, Custom Agri Systems, Inc. built a grain bin as a subcontractor to Younglove Construction, LLC. Younglove had been contracted by PSD Development, which withheld payment, claiming it had suffered damages due to defects in Custom Agri System’s work. Younglove filed a complaint against Custom Agri, which filed complaints against its subcontractors. Custom Agri also requested that its insurer, Westfield Insurance Company, defend and indemnify it. Westfield claimed that it had no such duty. The Ohio Supreme Court concurred. The decision notes that “Custom was being sued under two general theories: defective construction and consequential damages resulting from the defective construction.” Westfield argued that none of the claims were “for ‘property damage’ caused by an ‘occurrence” and therefore none of the claims were covered under the CGL policy.” Further, Westfield argued that “even if the claims were for property damage caused by an occurrence, they were removed from coverage by an exclusion in the policy.” The case was filed in the US District Court which issued a summary judgment for Westfield. The plaintiff appealed and Sixth Circuit Court of Appeals certified the questions to the Supreme Court of Ohio. The court noted that “all of the claims against which Westfield is being asked to defect and indemnify Custom relate to Custom’s work itself.” And so, the court concluded that they “must decide whether Custom’s alleged defective construction of and workmanship on the steel grain bin constitute property damage caused by an ‘occurrence.’” However, the court noted that under the terms of the insurance contract, an occurrence is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions,” and the court noted that the “natural and commonly accepted meaning” of “accident” is something “unexpected, as well as unintended.” The Ohio Supreme Court also looked at court decisions in other places, and found that in many similar cases, courts have concluded that construction defects are not occurrences. In a dissenting opinion, Justice Pfeifer argues that “if the defective construction is accidental, it constitutes an ‘occurrence’ under a CGL policy.” Justice Pfeifer characterized the majority’s definition of “accidental” as “broad, covering unexpected, unintentional happenings.” Read the court decision
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Last Call: Tokyo Iconic Okura Hotel Meets the Wrecking Ball

August 26, 2015 — Komaki Ito & Andreea Papuc – Bloomberg
Tokyo’s iconic nod to Japanese Modernism, the Hotel Okura, will bid farewell to its last guests next week and face the wrecking ball, despite petitions from around the world to save it. The 1960s-era hotel, which has welcomed international dignitaries and inspired a throng of admirers eager for preservation, will close its doors Aug. 31 to make way for a gleaming new hotel rebuilt in time for the 2020 Olympics, at a cost of about 100 billion yen ($836 million). “What’s odd about the Okura is that it’s a perfect embodiment of ‘60s Modernism, and it represents that very first wave of new development in the region,” Tyler Brule, editor in chief of Monocle magazine, who spearheaded a campaign that included a petition with almost 9,000 signatures, said in an e-mailed response to questions. “For this reason alone, it deserves to be preserved.” Reprinted courtesy of Komaki Ito, Bloomberg and Andreea Papuc, Bloomberg Read the court decision
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Real Estate & Construction News Roundup (1/30/24) – Life Science Construction to Increase, Overall Homeownership Is Majority Female, and Senators Urge Fed Chair to Lower Interest Rates

February 26, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, hospitality and real estate companies create living options, SEC questions some financial institutions on exposure to risks from CRE, renting shows signs of overtaking buying in the housing market, and more!

For generations, buying has almost always been favored over renting when it comes to housing, but with a tough real estate market, that might be changing. (Geoff Bennett and Dorothy Hastings, PBS)
Single women own more homes than single men, and overall homeownership is now majority female. (Brianna Crane and Alice Feng, Axios)
The SEC is asking smaller financial institutions, including community and regional banks, about their exposure to risks from commercial real estate in their loan portfolios. (S.J. Steinhardt, The New York State Society of CPAs)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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