FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Department of Corrections Gets Hit With the Prison Bid Protest Blues

October 16, 2018 — Garret Murai - California Construction Law Blog
“I’m breakin’ rocks in the hot sun . . . I fought the law and the law won . . . I needed money ’cause I had none . . . I fought the law and the law won” – The Clash, I Fought the Law (1978) In the recent case, West Coast Air Conditioning Company, California Department of Corrections and Rehabilitation, Case No. D071106 (February 22, 2018), those lyrics could be aptly revised to, “the law fought the courts and the courts won.” West Coast Air Conditioning Company, Inc. v. California Department of Corrections In February 2015, the California Department of Corrections and Rehabilitation (CDCR) published an invitation for bids for a new central air conditioning plant for the Ironwood State Prison in Blythe, California. West Coast Air Conditioning Company, Inc., Hensel Phelps Construction Co., and four other companies submitted bids. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

---

Judgment for Insurer Reversed Due to Failure to Establish Depreciation

August 01, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The trial court erred in placing the burden on the policyholder to establish depreciation in determining the actual cash value of the loss. SFR Serv., LLC v. Tower Hill Prime Ins. Co., 2023 Fla. App. LEXIS 3570 (Fla. Ct. App. May 26, 2023). The insureds' roof was damaged by Hurricane Irma. They submitted their claim to their insurer, Tower Hill. The cost of repair was assessed at $7,726.94, below the amount of the deductible. Therefore, there was no recovery under the policy. The insureds assigned their claim to SFR Services, LLC, their roofing contractor. SFR submitted a claim to Tower Hill for $162,083.84. Tower Hill refused to pay and SFR sued. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies

August 26, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum Corp., 2024 Cal. LEXIS 3271 (Cal. June 17, 2024). From 1944 through the 1970's, Kaiser manufactured asbestos-containing products at numerous different facilities. By 2004, more than 24,000 claimants had filed product liability claims against Kaiser alleging that they had suffered bodily injury as a result of exposure to Kaiser's asbestos products. Kaiser tendered these claims to Truck, one of several primary insurers that had issued CGL policies to Kaiser. In 2001, Truck initiated this coverage action to determine its indemnity and defense obligations to Kaiser. Truck later amended its complaint to add a cause of action for contribution against several of Kaiser's excess insurers. The issue presently before the court was whether Truck was entitled to contribution from various coinsurers that issued first-level excess policies to Kaiser during the period in question. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Contractor Convicted of Additional Fraud

November 18, 2011 — CDJ STAFF

A Pennsylvania contractor in prison for fraud has been convicted with insurance fraud. The York Daily Record reports that Steven D. Gebhart was already in jail for fraud for about $350,000 for work he either failed to finish or even start or by using substandard materials and practices when he was convicted of insurance fraud. Gebbert’s offices were destroyed in a fire that was later determined to be arson. He was not charged with this, but instead for overestimating his losses to the insurance company. Sentencing for the fraud charge will be on December 21.

Read the full story…

Read the court decision
Read the full story...
Reprinted courtesy of

---

Forget Backyard Pools, Build a Swimming Pond Instead

June 17, 2015 — Mark Ellwood – Bloomberg
No self-respecting Californian can let the summer pass without a dip in the backyard—pools are as much a part of culture as the 49ers, Schwarzenegger, and dire earthquake warnings. Now, though, there’s something unseemly about pooling so much water for the occasional swim—enough, in fact, to generate its own hashstag, #droughtshaming. There’s one surefire way to mitigate opprobrium: Build a natural swimming pond that’s specifically designed to minimize environmental impacts (or the cash premiums required to keep it up). Typical is one example in Sonoma County, where the the water seems to leak down from the rock perched on the ridge. Like a natural spring, it trickles and tumbles, pooling into water features as it falls; one feature is full of aquatic plants and flowers, while another is a swimming hole—clear, cool and inviting. It was built by Dave Whitney, chief executive officer of Eco Solutions, a pioneer in engineering such eco swimming ponds. These dipping pools use natural filtration instead of chlorine pellets to keep the water clean. Read the court decision
Read the full story...
Reprinted courtesy of Mark Ellwood, Bloomberg

---

Construction Defects as Occurrences, Better Decided in Law than in Courts

December 09, 2011 — CDJ STAFF

Construction defect claims are now occurrences for insurance purposes in four states, Arkansas, Colorado, Hawaii, and South Carolina, yet there are still frustrations for commercial general liability policyholders. Business Insurance describes court decisions on whether construction defect claims are covered as “incongruous,” and this drives up coverage and litigation costs. Construction firms often find they are defending themselves on two fronts, both the construction defect claim and also whether their insurance covers it.

Frank Armstrong, the Senior Vice President and National Director of Construction Claims for Willis North America says that the problem starts with the word “occurrence,” as various state courts have different interpretations of the word. “Certain pieces of it don’t fit well, at lest according to some courts in the country, with coverage for construction defect risks.”

Another insurance executive, Julian Ehlich, the Senior Vice President of Claims for Aon Risk Solutions’ construction services group notes that “jurisdictions differ, so policyholders don’t know what they’re going to get.”

Read the full story…

Read the court decision
Read the full story...
Reprinted courtesy of

---

Providing “Labor” Under the Miller Act

January 28, 2019 — David Adelstein - Florida Construction Legal Updates
A recent opinion out of the Northern District of California discusses the “labor” required to support a Miller Act payment bond claim on a federal construction project. It is a good case that discusses the type of labor required to support a Miller Act payment bond claim. In Prime Mechanical Service, Inc. v. Federal Solutions Group, Inc., 2018 WL 619930 (N.D.Cal. 2018), a prime contractor was awarded a contract to design and install a new HVAC system. The prime contractor subcontracted the work to a mechanical contractor. The mechanical contractor with its sub-designer prepared and submitted a new HVAC design to the prime contractor and provided 4-5 onsite services to determine the location and layout for the new HVAC equipment, perform field measurements, obtain security passes, and plan site access and crane locations. The mechanical contractor submitted an invoice to the prime contractor and the invoice remained unpaid for more than 90 days, which the prime contractor refused to pay. The mechanical contractor than filed a Miller Act payment bond lawsuit. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

---

Federal Court Ruling Bolsters the “Your Work” Exclusion in Standard CGL Policies

October 27, 2016 — Daniel E. Levin – Florida Construction Law News
In Evanston Insurance Company v. Dimucci Development Corportion of Ponce Inlet, Inc., the United states District Court for the Middle District of Florida further clarified the standard CGL policy exclusion (L) – the “Your Work” exclusion, one of the several business risk exclusions in a standard CGL policy which insurers and insureds are most likely to encounter in a typical construction defect claim. No. 6:15-cv-486-Orl-37DAB, 2016 U.S. Dist. LEXIS 123678, at *26 (M.D. Fla. Sep. 13, 2016). The lawsuit between Evanston Insurance Company and DiMucci Development Corp. of Ponce Inlet Inc. (“DiMucci”) arose out of initial claims by the homeowners’ association at the Towers Grande high rise in Daytona Beach Shores, Florida, against DiMucci for various construction defect related issues. The lawsuit alleged that DiMucci’s work was defective on a portion of the high rise condominium project, which caused property damage to other elements of the building that DiMucci was also responsible for constructing. Specifically, pertinent here, the Association alleged water damage as a result of DiMucci’s improper waterproofing of the building. Read the court decision
Read the full story...
Reprinted courtesy of Daniel E. Levin, Cole, Scott & Kissane, P.A.
Mr. Levin may be contacted at daniel.levin@csklegal.com

---