Fairfield Connecticut Building Expert Directory

Consequential Damages Flowing from Construction Defect Not Covered Under Florida Law

November 17, 2016 — Tred R. Eyerly -Insurance Law Hawaii
Interpreting Florida law, the United States District Court found there was no duty to defend a contractor against construction defect claims. Evanston Ins. Co. v. Dimmucci Dev. Corp. of Ponce Inlet, Inc., 2016 U.S. Dist. LEXIS 123678 (M.D. Fla. Sept 13, 2016). The insured built condominiums and townhomes. It held three successive CGL policies issued by Evanston. The "your work" exclusion in the policies barred coverage as follows:

"Property Damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.

The insured constructed the Towers Grande Condominium. In 2012 the Towers Grande Condominium Association, Inc. initiated the underlying action alleging that the insured's failure to construct the Towers Grande properly resulted in building defects and deficiencies. Damage to the roof, generator exhaust pipe, and HVAC system was alleged. Further, water intrusion and decking/structural issues were claimed. In addition to the construction defects, the Association also alleged that the insured's faulty work led to additional damages. 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

Pulling the Plug

December 13, 2022 — Todd R. Regan - Construction Executive
As a contractor, you may have wondered if your contract can be terminated by the owner for cause after the project has reached substantial completion. The answer is yes. Under certain circumstances it may be permissible—or even necessary—for a project owner to terminate the contract for cause after the project has reached substantial completion. Although the rights of the parties in any case will depend in large part on the specific contract language, the fact that a project has reached substantial completion is not an absolute bar to termination for cause, particularly when the owner intends to pursue a performance-bond claim. Completion Versus Performance Following substantial completion, a contractor typically will have outstanding contractual obligations such as paying its subcontractors and suppliers, bonding off any mechanic’s liens, completing the punch list, remediating defective work, testing and commissioning equipment, providing manufacturer’s warranties and performing its own warranty obligations. Reprinted courtesy of Todd R. Regan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Insurer's Motion for Summary Judgment in Collapse Case Denied

November 10, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The court denied the insurer's motion for summary judgment seeking to establish it did not breach the policy when denying coverage for the collapse of basement walls. Belz v. Peerless Ins. Co., 2016 U.S. Dist. LEXIS 118900 (D. Conn. Sept. 2, 2016). The Belzes purchased their home in 2001. Prior to the purchase, they were aware of notable cracking in the basement walls. An engineer was hired to inspect the cracking and determined the cracks did not threaten the structural integrity of the home. 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

COVID-19 Response: Executive Order 13999: Enhancement of COVID-19-Related Workplace Safety Requirements

March 08, 2021 — Alan Rupe & Luis Mendoza - Lewis Brisbois
President Biden has signed 28 Executive Orders as of February 2, 2021. While this is a large number of Executive Orders compared to the historical record, most call for creating task forces and directing agencies to explore policy changes. However, there is one that stands out to employment lawyers – Executive Order 13999 (Order). Titled “Protecting Worker Health and Safety,” the Order addresses workplace safety. It sets out instructions, primarily to the Secretary of Labor and Assistant Secretary of Labor for Occupational Safety and Health, for establishing and issuing a set of guidelines under the Occupational Safety and Health Act (OSHA). Pursuant to the Order, the Secretary of Labor will issue revised guidance to employers on workplace safety concerning COVID-19, determine if emergency workplace standards are required, and improve overall OSHA shortcomings related to COVID-19 workplace protections and enforcement. Enforcement will include the use of anti-retaliation principles concerning employees reporting unsafe conditions in the workplace. OSHA has issued initial guidance based on the Order. Reprinted courtesy of Alan Rupe, Lewis Brisbois and Luis Mendoza, Lewis Brisbois Mr. Rupe may be contacted at Alan.Rupe@lewisbrisbois.com Mr. Mendoza may be contacted at Luis.Mendoza@lewisbrisbois.com Read the court decision
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At $350 Million, Beverly Hillbillies Mansion Is Most Expensive in U.S.

August 10, 2017 — Matt Gross - Bloomberg
The story of Jed Clampett is, by now, a legend. A poor mountaineer, he could barely feed his family of four, but one day, while he was out hunting for food, he fired his rifle into the swamp behind his shack—and struck oil. The sale of the resource-rich land, in 1962, would eventually net him between $25 million and $100 million, and he did what anyone with sudden riches would do: He packed up his truck and moved his clan to Beverly Hills, where their adventures would be the subject of nine seasons of the Beverly Hillbillies. Now the Bel Air estate featured in the (fictional) show’s opening credits is up for sale—and as befits a wealthy, cultured oilman like Jed Clampett, it’s the most expensive listing in the country at $350 million. “Chartwell”—10.3 acres of land centering on a 25,000-square-foot mansion inspired by French Neoclassical design—went on the market this week, besting its closest competitor, a Beverly Hills spec house, by $100 million. Read the court decision
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Reprinted courtesy of Matt Gross, Bloomberg

“Made in America Week” Highlights Requirements, Opportunities for Contractors and Suppliers

August 14, 2023 — Sarah Barney & Amy Hoang - The Construction Seyt
On July 21, 2023, President Biden designated July 23-29, 2023, as “Made in America Week.” This proclamation builds on the Biden Administration’s efforts to bolster domestic manufacturing through evolving policies attached to government funds that require contractors and suppliers to feature varying amounts of U.S.-made content in their products and services. To commemorate this week, here is a refresher on “Made in America” and what it means for government contractors and suppliers. What does “Made in America” mean? Under Executive Order 14005, the Administration defined “Made in America” laws as “all statutes, regulations, rules, and Executive Orders relating to Federal financial assistance awards or Federal procurement, including those that refer to “Buy America” or “Buy American,” that require, or provide a preference for, the purchase or acquisition of goods, products, or materials produced in the United States, including iron, steel, and manufactured goods offered in the United States.” Generally speaking, “Made in America” or “Buy American” requirements refer to:

The Buy American Act (BAA) of 1933, establishing domestic sourcing preferences for unmanufactured and manufactured articles, materials, and supplies procured by the federal government for public use, including those used on federal construction contracts;

Reprinted courtesy of Sarah Barney, Seyfarth and Amy Hoang, Seyfarth Ms. Barney may be contacted at sbarney@seyfarth.com Ms. Hoang may be contacted at ahoang@seyfarth.com Read the court decision
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Do Not Pass Go! Duty to Defend in a Professional Services Agreement (law note)

April 03, 2019 — Melissa Dewey Brumback - Construction Law in North Carolina
Recently a client asked me to review a contract for his Firm. The Owner, who had prepared the draft, had inserted a rather stringent “duty to defend” clause. As I told my client, a duty to defend clause is not a good idea for a couple of reasons. First, if you agree to provide a defense, what that means is that you are footing the bill for the Owner if the Owner is sued by another party. Think about that for a minute. You are paying legal fees for someone else’s legal defense. You may or may not be able to direct the litigation or have a say in who is hired. Can you say open check book? Secondly, and more importantly, the duty to defend is almost never insurable. What that means is that your professional liability carrier will not be footing the bill—your Firm will be doing it. This is not a case of adding the Owner as an additional insured, so do not confuse the two. Agreeing to a duty to defend is an extremely burdensome, and potentially costly, mistake. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
Ms. Brumback may be contacted at mbrumback@rl-law.com

Construction Litigation Roundup: “Apparently, It’s Not Always Who You Know”

December 16, 2023 — Daniel Lund III - Lexology
A respondent party in a pair of international arbitrations on the losing end of roughly $285,000,000 in adverse awards attacked the awards based upon arbitrator bias. “If there is one bedrock rule in the law of arbitration, it is that a federal court can vacate an arbitral award only in exceptional circumstances. … The presumption against vacatur applies with even greater force when a federal court reviews an award rendered during an international arbitration.” Applying the Federal Arbitration Act (according to the court, the international arbitrations were “seated” in the United States and fell under the New York Convention, such that the FAA is required to be the basis for vacatur efforts), the court examined assertions that certain alleged non-disclosures by the panel “concealed information related to the arbitrators’ possible biases and thereby ‘deprived [respondent] of [its] fundamental right to a fair and consensual dispute resolution process.’” The aggrieved party urged that one arbitrator’s undisclosed nomination of another arbitrator to serve as president of another arbitral panel – “a position that sometimes pays hundreds of thousands of dollars” – possibly influenced the second arbitrator to side with the first. Assertions were also levied that the arbitrators’ undisclosed work with the attorneys for the claimant in other arbitrations “allowed them to become familiar with each other, creating a potential conflict of interest.” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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