Fairfield Connecticut Building Expert Directory

Additional Insured Coverage Confirmed

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Texas Court of Appeals found that Exxon Mobil Corporation was an additional insured under the CGL policy for Exxon's service provider. Liberty Surplus Ins. Corp. v. Exxon Mobil Corporation, 2015 Tex. App. LEXIS 12757 (Tex. Ct. App. Dec. 17, 2015). Exxon contracted with Wyatt Field Service Company to perform "services" as set forth in various work orders from Exxon's affiliates. The contract also required Wyatt to maintain $5 million of commercial general liability insurance. The contract provided that the policies must cover Exxon and its affiliates "as additional insureds in connection with the performance of Services." In 2008, Wyatt was assigned to work on a flexicoker unit at Exxon's refinery. Wyatt was to reinstall dummy nozzles and chains. It completed this service in October 2008. Three years later, one of the dummy nozzles pulled free, and the escaping steam and coke burned three individuals who were working on the unit. After the accident, it was discovered that the safety chain had been installed in the wrong location so that it did not properly secure the dummy nozzle. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

District Court Allows DBE False Claims Act Case to Proceed

February 23, 2017 — Wally Zimolong – Supplemental Conditions
Last week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding. The Case The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work. Read the court decision
Read the full story...
Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Professional Liability Alert: Joint Client Can't Claim Privilege For Communications With Attorney Sued By Another Joint Client

February 05, 2015 — David W. Evans and Stephen J. Squillario – Haight Brown & Bonesteel LLP
In Anten v. Superior Court (No. B258437 – Filed 1/30/2015), the Second Appellate District held that when joint clients do not sue each other, but one of them sues their former attorney, the nonsuing client cannot prevent the parties to the malpractice suit from discovering or introducing otherwise privileged attorney-client communications made in the course of the joint representation. Under California Evidence Code §958, in lawsuits between an attorney and a client based on an alleged breach of a duty arising from their attorney-client relationship, communications relevant to the alleged breach are not protected by the attorney-client privilege. Similarly, Evidence Code §962 provides that if multiple clients retain or consult with an attorney on a matter of common interest and the joint clients later sue each other, then the communications between either client and the attorney made in the course of that relationship are not privileged in the suit between the clients. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com; Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

Builders FirstSource to Buy ProBuild for $1.63 Billion

April 15, 2015 — Prashant Gopal – Bloomberg
Builders FirstSource Inc., a Dallas-based maker of materials for new homes, rose the most on record after saying it agreed to buy competitor ProBuild Holdings LLC for $1.63 billion. ProBuild, based in Denver, operates about 400 lumber and building product distribution, manufacturing and assembly centers serving 40 U.S. states, according to a statement Monday. The companies had 2014 combined revenue of $6.1 billion. Builders FirstSource surged 68 percent to $11.57. It was the biggest one-day gain ever for the shares, which began trading in June 2005. Read the court decision
Read the full story...
Reprinted courtesy of Prashant Gopal, Bloomberg

“Time Is Money!” In Construction and This Is Why There Is a Liquidated Damages Provision

February 01, 2022 — David Adelstein - Florida Construction Legal Updates
In construction, the adage “Time is Money!” rings true for all parties involved on a project. This includes an owner of a project that wants a project completed on time, i.e., by a substantial completion date. While substantial completion is often defined as when an owner can use a project for its intended purpose, this intended purpose typically equates to beneficial occupancy (in new construction) and other factors as identified in the contract. The best mechanism for an owner to reinforce time and the substantial completion date is through a liquidated damages provision (also known as an LD provision) that includes a daily monetary rate for each day of delay to the substantial completion date. A liquidated damages provision is not designed, and should NEVER be designed, to serve as a penalty because then it would be unenforceable. Instead, it should be designed to reasonably compensate an owner for delay to the substantial completion date that cannot be ascertained with any reasonable degree of certainty at the time the contract is being negotiated and executed. (Liquidated damages are MUCH easier to prove than actual damages an owner may incur down the road.) As an owner, you don’t really want to assess liquidated damages because that means the project is not substantially completed on time. And, in reality, a timely completed and performing project should always be better and more profitable than a late and underperforming project. However, without the liquidated damages provision, there isn’t a great way to hold a contractor’s feet to the fire with respect to the substantial completion date. Read the court decision
Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Construction of New U.S. Homes Declines on Plunge in South

July 23, 2014 — Victoria Stilwell – Bloomberg
Housing starts unexpectedly declined in June to a nine-month low, led by a record plunge in the South that shows the construction industry must still overcome hurdles before it can contribute more strongly to U.S. economic growth. Work began on 893,000 homes at an annualized rate, down 9.3 percent from a 985,000 pace in May that was weaker than previously estimated, according to figures from the Commerce Department issued today in Washington. Other reports showed manufacturing was gaining steam this month and fewer Americans filed claims for jobless benefits last week as consumer sentiment hovered near this year’s high. A shortage of buildable lots and experienced construction workers, higher prices and mortgage rates that have climbed from record lows mean residential real estate will struggle to help the world’s largest economy. The figures, along with a decline in building permits, corroborate Federal Reserve Chair Janet Yellen’s view that progress in the housing market has been “disappointing.” Read the court decision
Read the full story...
Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

Insurer's Motion for Summary Judgment to Reject Collapse Coverage Denied

November 24, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The insurer unsuccessfully moved for summary judgment seeking to reject the insured's collapse claim. Gnannn v. United Servs. Auto, Ass'n, 2019 Conn. Super. LEXIS 1955 (Conn. Super Ct. July 11, 2019). The insureds' home was built in 1985 and they purchased their home in 1993. A home inspection reported that some settlement and curing related cracks existed in the slab floor, but no signs of abnormal settlement were noticed. The concrete walls were in overall good condition. In 2015, the insureds became aware of abnormal cracking in the basement. USAA was informed of the claim but denied coverage in October 2015. The insureds sued USAA. After suit was filed, the insureds hired an engineer, David Grandpre, to inspect their home. He observed severe cracking in the basement walls caused by an expansive chemical reaction within the concrete. The structure was not in imminent peril of falling down, and it continued as insureds' residence. But Mr. Grandpre noticed bulging and bowing, evidence that the concrete basement walls had failed and had begun to move inward due to the lateral pressure of the soil outside the home. 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

Personal Guarantor Cannot Escape a Personal Guarantee By…

June 02, 2016 — David Adelstein – Florida Construction Legal Updates
In a prior article, I discussed the point that a personal guarantor cannot escape a contractual requirement of a personal guarantee merely by executing the guarantee as a corporate officer. The recent decision Frieri v. Capital Investment Services, Inc., 41 Fla. L. Weekly D1189a (Fla. 3d DCA 2016) illustrates this point. In this case, a company hired an individual to help grow that company’s business. The contract required the individual to invest $6 Million into a trust in consideration of the company’s president transferring substantial shares of the company into the trust. The objective was that the trust would own the controlling shares of the company. The money was transferred. However, the shares were never placed in the trust and the trust never received controlling interest in the company. Read the court decision
Read the full story...
Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES