FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New York Court Holds That the “Lesser of Two” Doctrine Limits Recoverable Damages in Subrogation Actions

September 23, 2019 — Michael L. DeBona - The Subrogation Strategist
In New York Cent. Mut. Ins. Co. v. TopBuild Home Servs., Inc., 2019 U.S. Dist. LEXIS 69634 (April 24, 2019), the United States District Court for the Eastern District of New York recently held that the “lesser of two” doctrine applies to subrogation actions, thereby limiting property damages to the lesser of repair costs or the property’s diminution in value. In New York Cent. Mut. Ins. Co., New York Central Mutual Insurance Company’s (New York Central) insureds, Paul and Karen Mazzola, suffered a fire to their home. After the fire, New York Central paid the Mazzolas $708,465.74 to repair the property. New York Central brought a subrogation action against TopBuild Home Services, Inc. (TopBuild), alleging that the fire was caused by negligent work performed by TopBuild. New York Central sought to recover the repair costs it paid to the Mazzolas. TopBuild conceded liability but disputed the proper measure of damages. TopBuild filed a motion for partial summary judgment, arguing that under the “lesser of two” doctrine, New York Central could recover only the lesser of the costs to repair the property or the property’s diminution in value. TopBuild, therefore, asserted that New York Central was not entitled to the repair costs of $708,465.74 but, rather, could recover only the property’s decline in value following the fire – approximately $250,000.[1] In response, New York Central argued that New York’s “lesser of two” doctrine does not apply to subrogation actions because an insurance company cannot mitigate the payment it makes to its insured. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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Contract Change #9: Owner’s Right to Carry Out the Work (law note)

March 28, 2018 — Melissa Dewey Brumback - Construction Law in North Carolina
In prior versions of the General Conditions, if a contractor defaulted and the Owner (after giving notice) opted to cure by carrying out the work itself, an appropriate Change Order would be issued. However, a Change Order is a contract that requires an agreement by both the Owner and Contractor, and, obviously, Contractors were reluctant to agree that they were in default and responsible for a deductive change order. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina

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Insurance Attorney Gary Barrera Joins Wendel Rosen’s Construction Practice Group

July 26, 2017 — Garret Murai - California Construction Law Blog
Wendel Rosen’s Construction Practice Group welcomes a new member to our band of merry men (and women), Gary Barrera. Gary, an insurance attorney, has extensive experience with construction defect, property damage, professional liability and environmental claims. He has represented real estate developers and contractors in all aspects of construction defect litigation and has resolved insurance coverage disputes arising out of construction claims on behalf of policyholders. Prior to attending law school, Gary worked as a claims representative and examiner for several insurance carriers and third-party administrators. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Best Lawyers Honors 48 Lewis Brisbois Attorneys, Recognizes Four Partners as 'Lawyers of the Year'

August 30, 2021 — Lewis Brisbois
Best Lawyers has selected 48 Lewis Brisbois attorneys across 27 offices for inclusion in its list of 2022 Best Lawyers in America. It has also recognized four Lewis Brisbois partners as "Lawyers of the Year": Cleveland/Akron Partner John F. Hill (Bet-the-Company Litigation); San Diego Partner Marilyn R. Moriarty (Medical Malpractice Law - Defendants); Portland Managing Partner Eric J. Neiman (Medical Malpractice Law - Defendants); and Sacramento Partner Eric J. Stiff (Corporate Law). Please join us in congratulating these four partners and the following attorneys on their Best Lawyers recognition. Seattle Partner Randy J. Aliment: Commercial Litigation

Reno Managing Partner Jack G. Angaran: Insurance Law, Litigation - Construction, Litigation - Real Estate

Los Angeles Partner Brian G. Arnold: Litigation - Intellectual Property, Litigation - Patent

Los Angeles/Orange County Partner John L. Barber: Employment Law - Management, Litigation - Labor and Employment

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Reprinted courtesy of Lewis Brisbois

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Supreme Court Eliminates Judicial 'Chevron' Deference to Federal Agency Statutory Interpretations

July 31, 2024 — Jane C. Luxton - Lewis Brisbois
Washington, D.C. (July 1, 2024) – In a much-anticipated decision, on June 28, 2024, the Supreme Court issued a sweeping opinion “overrul[ing]” a 40-year old precedent that required judges to defer to federal agency interpretations of their governing statutes when those laws were ambiguous or silent. Loper Bright Enterprises v. Raimondo, et al. No. 22-451 (2024), overruling Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984). The decision means that courts will no longer give special weight to an agency’s view of the scope of its regulatory powers but must apply independent judgment in deciding “whether an agency has acted within its statutory authority.” Loper Bright, slip op. at 35. Taking pains to explain that the new ruling would not allow for reversals of cases previously decided under the Chevron doctrine, the Court left no doubt that, in the words of Justice Neil Gorsuch, “[t]oday, the Court places a tombstone on Chevron no one can miss.” Id., Gorsuch Concurring Opinion at 1. Writing for a 6-2 majority, Chief Justice Roberts forcefully condemned the Chevron-based principle that courts should defer to a federal agency’s interpretation of the scope of its legal authority, rejecting the concept that agencies have any special expertise in statutory interpretation, a field reserved to the courts, not the executive branch, under Article III of the Constitution and the Administrative Procedure Act, 5 U.S.C. § 551 et seq. Read the court decision
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Reprinted courtesy of Jane C. Luxton, Lewis Brisbois
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com

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Eighth Circuit Considers Judicial Estoppel in Hazardous Substance Release-Related Personal Injury Case

April 11, 2018 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On April 5, the U.S. Court of Appeals for the Eighth Circuit decided the case of Kirk v. Schaeffler Group USA, Inc., et al., a personal injury action commenced in the U.S. District Court for the Western District of Missouri alleging injury resulting from the release of thousands of gallons of trichloroethylene (TCE) at the FAG Bearings Corporation’s (FAG Bearings) facility in Joplin, MO. The Court of Appeals reversed the District Court’s judicial estoppel ruling on the successor liability issue and concluded that the jury’s verdict on compensatory damages stands but their general verdict requires a new trial on Plaintiff’s punitive damages claim against FAG Bearings. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLP
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Do You Have an Innovation Strategy?

November 08, 2017 — Aarni Heiskanen - AEC Business
Construction and engineering are among the top five industries ripe for disruption according to research by PwC. Will innovation come from tech companies and startups, or could established firms be proactive? For Granlund, founded in 1960, innovation is a strategic essential and a core competency. Granlund is a Finnish design, consultancy, and software services firm specializing in energy efficiency. It employs more than 800 people in 20 locations in Finland and in its offices in Shanghai and Dubai. The company is known internationally for being in the vanguard of building information modeling and for real estate management software development. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

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Construction Contract Clauses Which Go Bump in the Night – Part 1

November 10, 2016 — Garret Murai – California Construction Law Blog
Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The first in a multi-part series, here are some other important construction contract clauses you may (or may not realize you should) be losing sleep over.

Provision: Incorporation and Flow-Down Provisions

• Typical Provision: “The term ‘Contract Documents’ shall include, without limitation, the Prime Contract, drawings, specifications and other agreements between Contractor and Owner, insofar as they relate in any way, directly or indirectly, to Subcontractor’s Work under this Agreement, and are hereby incorporated by reference. Subcontractor agrees to be bound to Contractor in the same manner and to the same extent as Contractor is bound to Owner under the Contract Documents. Where, in the Contract Documents, reference is made to Contractor, and the work and specifications therein pertain to Subcontractor’s trade, craft, or type of work, such work or specifications shall be interpreted to apply to Subcontractor rather than Contractor.”
• What it Means: An incorporation provision literally “incorporates” another document or documents into a contract by merely referring to them by title or description and it is not uncommon for a lower-tiered contractor to never see those documents. A flow-down provision requires a lower-tiered contractor to comply with all obligations which a higher-tiered contractor, typically a direct contractor, owes to a higher-tiered party, typically, the owner. The intent of the provision to ensure that a lower-tiered subcontractor has no greater rights against a direct contractor has against the owner.
• What You Can Do: Lower-tiered contractors should obtain a copy of all documents to be incorporated into their contract and review them to ensure that they understand the obligations and any limitations to their rights. Lower-tiered contractors should also seek to include language requiring that a higher-tiered contractor assume toward the lower-tiered contractor all obligations and limitations on their rights that the owner assumes toward or is subject to with respect of the general contractor.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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