FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

An Obligation to Provide Notice and an Opportunity to Cure May not End after Termination, and Why an Early Offer of Settlement Should Be Considered on Public Works Contracts

August 17, 2020 — Jeff Kaatz - Ahlers Cressman & Sleight
In 2015, the City of Puyallup (“City”) and Conway Construction Company (“Conway”) executed a public works contract for road improvements (“Project”). On March 9, 2016, approximately four months after work started on the Project, the City issued Conway a notice of suspension and breach of contract and identified nine defective and uncorrected work and safety concerns. Conway denied any wrongdoing, and on March 25, 2016, the City issued a notice of termination for default and withheld payments due to Conway. Conway subsequently filed suit in Pierce County Superior Court and alleged the City’s termination for default breached the contract and sought a determination that the City’s termination for default was improper and should be deemed a termination for convenience. Conway sought approximately $1.25 million in damages and recovery of its attorney fees and costs. Following a bench trial, the Trial Court found the City breached the contract and awarded Conway damages, attorney fees, and costs. The City appealed.[1] On appeal, after affirming the trial court’s determination that the City improperly terminated Conway, the Court of Appeals considered two other issues raised by the City. First, whether the City was entitled to a set-off for replacing defective work discovered after Conway was terminated. Second, whether Conway is entitled to attorney fees if it did not make the statutorily required offer of settlement per RCW 39.04.240. Read the court decision
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Reprinted courtesy of Jeff Kaatz, Ahlers Cressman & Sleight
Mr. Kaatz may be contacted at Jeff.Kaatz@acslawyers.com

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Tropical Storms Pile Up Back-to-Back-to-Back Out West

September 17, 2014 — Brian K. Sullivan – Bloomberg
Tropical Storm Polo, the 16th storm of an unusually active eastern Pacific hurricane season, is on a path eerily like that of Odile, which blasted the Baja California peninsula earlier this week. Odile went ashore late Sept. 14 with top winds of 125 miles (201 kilometers) per hour, the strongest storm to hit the region since 1967. As its winds swept the resort city of Cabo San Lucas, it was a Category 3 storm on the five-step Saffir-Simpson scale and a major hurricane. At its peak, hours before landfall, Odile’s winds reached 135 mph, Category 4-force. Photos from Mexico’s Baja California Sur show houses destroyed, hotels piled with debris and gaping holes in the local airport. At least 30,000 tourists were stranded. Read the court decision
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Reprinted courtesy of Brian K. Sullivan, Bloomberg
Mr. Sullivan may be contacted at bsullivan10@bloomberg.net

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West Coast Casualty Construction Defect Seminar Announced for 2014

October 30, 2013 — CDJ STAFF
Organizers describe the even as “America’s largest, America’s favorite, America’s best construction defect seminar.” And in 2014, they will hold the twenty-first of these annual construction defect seminars. As for size, last year’s event comprised 1,614 attendees, travelling not only from across the county, but from outside the United States as well. West Coast Casualty is beginning to line up its speakers for next May’s seminar. The organizers are asking speakers to submit proposed topics by November 25 and the list will be finalized on December 15. The theme for the event will be “Back to Business … Working Smarter … Not Harder.” While West Coast Casualty is looking for topics that focus on the central theme, they are also interested in presentations on emerging trends in construction defect litigation. In addition to seminars, there will be booths for many of the companies in the construction defect resolution industry, demonstrating products and services of use to professionals in the field. This gives attendees a chance for less-structured interaction than is possible within a seminar. Continuing education credits were granted for the 2013 seminar by a lengthy list of organizations, which included the Bar Associations of 22 states and the Departments of Insurance of 35. The 2014 West Coast Casualty Construction Defect Seminar will be held May 15 and 16 at the Disneyland Hotel and Resort. During the seminar comes the awarding of the prestigious Jerrold S. Oliver Award of Excellence, named in honor of the late Judge Jerrold S. Oliver, who was known for his skills as a mediator. In 2013, the “Ollie” was awarded to Margie Luper in acknowledgement of her contributions to the betterment of the construction defect resolution field. The recipients of the Jerrold S. Oliver Award of Excellence are selected by the votes of about 6,000 industry professionals. Read the court decision
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Fourth Circuit Finds Insurer Reservation of Rights Letters Inadequate to Preserve Coverage Defenses Under South Carolina Law

January 17, 2023 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Stoneledge at Lake Keowee Owners Ass'n v. Cincinnati Ins. Co., 2022 U.S. App. LEXIS 34292 (D.S.C. Dec. 13, 2022), the Fourth Circuit Court of Appeals addressed the adequacy of reservation of rights letters issued by Builders Mutual Insurance Company (“Builders Mutual”) and Cincinnati Insurance Company (“Cincinnati”) to their insureds, Marick Home Builders, LLC (“Marick”) and Rick Thoennes (“Thoennes”), Marick’s managing member, for an underlying construction defect lawsuit. In short, the Fourth Circuit found that the reservation letters were inadequate to preserve the insurers’ coverage defenses because they did not sufficiently explain the basis of the carriers’ position.  Stoneledge, a homeowners association, managed a community of 80 townhomes on South Carolina’s Lake Keowee. In 2009, Stoneledge brought suit against Marick and Thoennes, among other defendants, alleging construction defects in the townhomes that resulted in water intrusion and other physical damage. Marick and Thoennes held commercial general-liability policies through Cincinnati and Builders Mutual covering, in relevant part, “property damage” as defined by the policies. Builders Mutual issued policies covering the period from January 2004 to October 2007, and Cincinnati issued policies covering the period from April 2008 to April 2012. After Marick notified the insurers of the underlying action, Builders Mutual sent Marick two reservation of rights letters, one in May 2009 and one in July 2009. Cincinnati sent Marick one reservation of rights letter in March 2010. In March 2014, Stoneledge brought a declaratory-judgment action against Cincinnati seeking coverage for a judgment entered in the underlying action. The insurers removed the case to federal court, and in September 2016, Stoneledge amended its complaint, adding Builders Mutual as a defendant and seeking coverage for additional damages pursuant to a settlement agreement entered into by Stoneledge, Marick, Thoennes. The district court granted Stoneledge's motion for  summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage. The insurers appealed to the Fourth Circuit, which affirmed. Read the court decision
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Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

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Congratulations to Partner John O’Meara for Being Named as One of America’s Top 100 Civil Defense Litigators for Three Consecutive Years!

September 20, 2021 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Please join Bremer Whyte Brown & O’Meara, LLP in congratulating Woodland Hills Partner John O’Meara for being selected as one of America’s Top 100 Civil Defense Litigators for the third year in a row! Membership among America’s Top 100 Civil Defense Litigators highlights the accomplishments of the nation’s most esteemed and skilled Civil Defense attorneys. Only 100 attorneys in each state receive this honor and candidates for membership are identified through third-party research or peer nominations by America’s Top 100 or elite attorneys in the community. Candidates are judged by the attorney’s lifetime legal achievements, professional experience, significant case results, peer reputation, client satisfaction, other notable honors, media notoriety, and community impact. Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP Read the full story... Read the court decision
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Former Mayor Arrested for Violating Stop Work Order

October 30, 2013 — CDJ STAFF
The former mayor of Springfield, Florida has been arrested on charges of insurance fraud. More than a year ago, an investigator for the Bureau of Workers’ Compensation found that an employee of Walker’s construction company was working without workers’ compensation and issued a stop work order. Walker’s employees continued work. The charges were delayed because Walker challenged the stop work order. Once it was determined that the stop work order was issued properly, Walker was charged with a third-degree felony. Read the court decision
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China Construction Bank Sued in US Over Reinsurance Fraud Losses

June 21, 2024 — Robert Burnson - Bloomberg
China Construction Bank Corp., the nation’s third-largest commercial lender, was accused in a US lawsuit of enabling a massive fraud in the reinsurance industry that left companies with “monumental losses” and sinking stock prices. The bank allowed employees to conspire with Israeli insurance startup Vesttoo Ltd. to sell reinsurance policies that weren’t real, according to a complaint filed late Thursday by the Porch Group in Manhattan federal court. Vesttoo filed for Chapter 11 bankruptcy in August after it was accused of using some $2 billion of fraudulent letters of credit. The Porch Group said that its unit Homeowners of America Insurance Co. lost tens of millions of dollars when its purported $300 million letter of credit proved worthless. “Not only did HOA incur colossal losses, but news of its exposure to the fraud perpetrated by Vesttoo and CCB shocked the market and imposed severe losses on Porch Group’s shareholders as its stock price plummeted,” according to the suit. Read the court decision
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Reprinted courtesy of Robert Burnson, Bloomberg

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As Some States Use the Clean Water Act to Delay Energy Projects, EPA Issues New CWA 401 Guidance

August 26, 2019 — Anthony B. Cavender - Gravel2Gavel
In just the past few weeks, three states have used their Clean Water Act 401 authority to delay, for an indefinite period, FERC-authorized pipeline expansion projects. On May 6, 2019, the Oregon Department of Environmental Quality denied, without prejudice, Jordan Cove’s application for a Section 401 water quality certification. Jordan Cove plans to build an LNG export terminal at Coos Bay, Oregon, if it can obtain the necessary federal and permits. Under Section 401(a) of the Clean Water Act, any applicant for a federal permit to conduct any activity, including the operation of facilities which may result in any discharge into the navigable waters, shall provide the permitting agency a certification from the State in which the discharge may originate that any such discharge will comply with the applicable provisions of the Clean Water Act, including effluent limitations and state water quality standards. The States have a “reasonable time”—which shall not exceed one year after the receipt of the 401 application—in which to act, or the state’s authority may be waived by this inaction. The Oregon DEQ concluded that Jordan Cove has not demonstrated that its project, as presently configured, will satisfy state water quality standards. The 401 applications submitted by Transcontinental Gas Pipe Line Co. (Transco) to the New Jersey Department of Environmental Protection and the New York State Department of Environmental Protection were similarly rejected without prejudice on May 15, 2019 (New York) and June 5, 2019 (New Jersey). This use of the states’ 401 authority has frustrated plans to build and operate LNG pipelines around the country. 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

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