FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Homebuyers Aren't Sweating the Fed

December 17, 2015 — Rani Molla – BloombergGadfly
Home prices are escalating, but the culprit isn't the Federal Reserve. The Fed is expected to raise its benchmark rate for the first time since 2006, meaning mortgage rate hikes are likely to follow. Small mortgage-rate increases and, by extension, incrementally higher monthly mortgage payments, usually won't undermine sales because buyers aren't sensitive to small payment changes. Mortgage rates, still at historic lows, have already baked in an expected rate increase of 25 basis points, according to PwC Real Estate Advisory Leader Mitch Roschelle. The National Association of Home Builders Chief Economist David Crowe agrees, adding that the housing market could even digest a cumulative 50 basis point hike by the end of 2016. The real stress in the housing market is coming from somewhere else: labor shortages. Read the court decision
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Reprinted courtesy of Rani Molla, BloombergGadfly

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Allegations Confirm Duty to Defend Construction Defect Claims

June 11, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon the same case cited by the Hawaii Supreme Court in its seminal decision on duty to defend, the federal district court determined the allegations sufficiently established a duty to defend construction defect claims. Voeller Constr. v. Southern-Owners Ins. Co., 2014 U.S. Dist. LEXIS 61862 (M. D. Fla. May 5, 2014). The Bay Harbor Clearwater Condominium Association, Inc. sued Voeller Construction for statutory breach of warranty and building code violations which allegedly caused damage to the condominium structure. The complaint alleged that the damage was unknown to the unit owners at the time they purchased their units. The project was completed in 2007. Expert reports attached to the complaint listed July 7, 2010, as the earliest date of discovery of the damage to the property. The CGL policies were effective from January 24, 2007 to May 9, 2009. Therefore, the insurer argued there was no coverage because the alleged "property damage" was discovered for more than one year after the policies expired. The court determined there was a duty to defend. Citing Trizec Props., Inc. v. Biltmore Constr. Co., 767 F.2d 810 (11th Cir. 1985), the court noted that if the complaint alleged facts which created potential coverage under the policy, the duty to defend was triggered. The Hawaii Supreme Court relied on Trizec and made the same ruling in Dairy Road Partners v. Island Ins Co., Ltd., 92 Haw. 398, 412, 992 P.2d 93, 107 (2000). Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Georgia Supreme Court Rules Construction Defects Can Constitute an Occurrence in CGL Policies

April 05, 2011 — Beverley BevenFlorez CDJ STAFF

Recently, the Supreme Court of Georgia reversed the decision in American Empire Surplus Lines Insurance Company v Hathaway Development Company, Inc. stating that because Whisnant’s faulty workmanship caused damage to the surrounding properties, the construction defects constituted “occurrences” under the Commercial General Liability (CGL) policy. Unlike the South Carolina Supreme court ruling in the case of Crossman Communities v Harleysville Mutual, the Georgia Supreme Court stated that an accident can happen intentionally if the effect is not the intended result.



Interestingly, the only dissenting judge, J. Melton, disagreed with his colleagues on the basis that “although the term ‘accident’ is not specifically defined in the policy, it is axiomatic that an ‘accident’ cannot result from ‘intentional’ behavior.” It is clear that what constitutes an occurrence in CGL policies is still being hotly debated.



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Federal District Court Finds Coverage Barred Because of Lack of Allegations of Damage During the Policy Period and Because of Late Notice

December 29, 2020 — Robert Dennison - Traub Lieberman
In American Bankers Ins. Co. of Florida v. National Fire Ins. Co. of Hartford, 2020 WL 5630017 (Sept. 21, 2020), the Northern District of California of the United States District Court had occasion to consider whether allegations in an underlying complaint triggered a duty to defend and a late notice defense to coverage. The underlying actions were a suit against the City of Walnut Creek for damages from flooding allegedly caused by the City’s failure to develop and maintain its storm drains.The City settled the cases then sued its liability insurers who issued its coverage in the period 1968 to 1986 for indemnification of the amounts spent to defend and settle the cases.The published decision involved three Travelers’ policies issued to the City between 1968 and 1976, as to which Travelers sought summary judgment as to the lack of coverage in its policies. The district court first found that the definition of an “occurrence” in the policies, in one policy “an event or a continuous or repeated exposure to conditions which causes injury to person or damage to property during the policy period” and in the other two “an accident, including injurious exposure to conditions, which results during the period this policy is in effect, in bodily injury or property damage,” fell within the rule of Montrose Chemical Corp. v. Admiral Ins. Co. (1995) 10 Cal.4th 645, that injury or damage during the policy period must occur in order for the policy to be triggered.The court agreed with Travelers that while there were allegations of flooding for many years, the only claims/allegations of property damage were for the period 2000 and later.Therefore the property damage coverage in the policies was never triggered. Read the court decision
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Reprinted courtesy of Robert Dennison, Traub Lieberman
Mr. Dennison may be contacted at rdennison@tlsslaw.com

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Alleged Defective Water Pump Leads to 900K in Damages

January 13, 2014 — CDJ STAFF
A lawsuit filed by Liberty Mutual on behalf of their client, Turner Construction, alleges that defects in the installation of a water pump lead to $900,000 in costs for a building in New Jersey. They are seeking compensation from Triangle Plumbing. Law360 quotes the complaint, which states “as a result of Triangle’s failure to provide a complete, functional plumbing system at the property as required by the subcontract agreement, Triangle has breached the specific scope of work provision of the subcontract agreement.” Read the court decision
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California to Build ‘Total Disaster City’ for Training

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
California is building a “world-class $56 million training facility in eastern Sacramento County that would pit fire crews against a variety of realistic, pressure-packed simulated disasters,” according to the Sacramento Bee. Construction has begun on the Emergency Response Training Center in Mather Field in Rancho Cordova. “The project is a joint effort between Henke’s fire department, the Governor’s Office of Emergency Services and the Sacramento Fire Department,” reported the Sacramento Bee. Read the court decision
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The Impact of the Russia-Ukraine Conflict on the Insurance Industry, Part One: Coverage, Exposure, and Losses

August 22, 2022 — Michael Kopit - Lewis Brisbois
(August 10, 2022) - The Russia-Ukraine conflict has far-reaching implications for the insurance industry and for insurers and insureds alike. Many corporate policy holders around the world have withdrawn or scaled back operations with Russia and/or Russian-based corporations. In doing so, the corporate policy holders left behind property, assets, and inventory in Russia and/or suffered losses in revenue. Corporate policy holders are looking to their insurers to offset the losses. It is estimated that the insurance and reinsurance markets could face losses at nearly $20 billion. S&P Global predicts that losses could reach $35 billion. Additionally, the conflict in Ukraine creates uncertainty for insurers on how to navigate the influx of claims, especially from the cybersecurity sector. A key issue with the rise in claims is coverage. The general rule is that coverage under a policy for any loss must be evaluated by considering the policy language, the law applicable to the governing jurisdiction, and the facts surrounding the loss. Many policies contain a “war exclusion” clause, which can exclude property losses resulting from acts of war or governmental instability. However, corporate policy holders may have Political Risk Insurance, which can provide coverage for losses for items such as damaged property, seized property, and lost assets at a time of political turmoil or war. Even if a policy has Political Risk Insurance, it does not guarantee payout. Careful analysis of the policy language and facts surrounding the loss must still take place. For example, in the event of property claims, an insurer must still determine whether the loss is related to the conflict and/or whether the subject property was voluntarily abandoned or seized. Read the court decision
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Reprinted courtesy of Michael Kopit, Lewis Brisbois
Mr. Kopit may be contacted at Michael.Kopit@lewisbrisbois.com

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Congratulations Devin Brunson on His Promotion to Partner!

April 26, 2021 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is very proud to announce Devin Brunson has been promoted to the position of partner with the firm! Mr. Brunson came to BWB&O from another civil litigation firm and helped start the Denver, Colorado office along with partners Lucian Greco, John Toohey and Peter Brown. He has taken on a significant leadership role within the firm over the past several years and has been integral in growing the office to its current footprint. He is licensed to practice law in Colorado, District of Colorado, and in the U.S. District Court. His practice is focused in the areas of civil and business litigation, construction litigation, and employment law. Mr. Brunson has a diverse practice background that includes complex civil litigation and intellectual property disputes and has had the privilege of representing business owners, contractors, corporate executives, and professional athletes during the course of his career. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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