FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause

July 11, 2018 — Shannon M. Warren - The Subrogation Strategist
In recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to work versus non-work property. The distinction between work and non-work property has been commonly litigated and remains a hotly debated topic when handling subrogation claims involving construction defects. In Liberty Mutual Fire Ins. Co. v. Fowlkes Plumbing, 2018 U.S. Dist. LEXIS 23515 (February 12, 2018), a fire consumed the entire insured risk when one of the defendants was performing window restoration services. Subsequently, the insured’s subrogated insurer filed suit against several defendants involved in the construction project at issue. In response to the defendants’ motion for summary judgment, the District Court for the Northern District of Mississippi considered whether the waiver of subrogation clause in AIA contract form A201-2007 precluded the subrogated insurer from recovering damages from the defendants. The court held that the waiver of subrogation provision contained in AIA document A201-2007 barred the insurer from recovering for damages to the work itself, but did not apply to non-work property. Read the court decision
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Reprinted courtesy of Shannon M. Warren, White and Williams LLP
Ms. Warren may be contacted at warrens@whiteandwilliams.com

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Climate Change a Factor in 'Unprecedented' South Asia Floods

July 18, 2022 — The Associated Press (Aniruddha Ghosal & Al-Emrun Garjon) - Bloomberg
Sylhet, Bangladesh (AP) -- Scientists say climate change is a factor behind the erratic and early rains that triggered unprecedented floods in Bangladesh and northeastern India, killing dozens and making lives miserable for millions of others. Although the region is no stranger to flooding, it typically takes place later in the year when monsoon rains are well underway. This year's torrential rainfall lashed the area as early as March. It may take much longer to determine the extent to which climate change played a role in the floods, but scientists say that it has made the monsoon — a seasonable change in weather usually associated with strong rains — more variable over the past decades. This means that much of the rain expected to fall in a year is arriving in a space of weeks. Read the court decision
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Reprinted courtesy of Bloomberg

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Revisiting Statutory Offers to Compromise

August 28, 2023 — Kathryne Baldwin - Wilke Fleury
The fourth appellate district published an opinion earlier this year in Smalley v. Subaru of America, Inc. (2022) 87 Cal.App.5th 450 that serves as an excellent refresher on requirements of the “998 Offer,” or a statutory offer to compromise pursuant to Code of Civil Procedure (“CCP”) §998. In Smalley, set in the context of a Lemon Law action, Defendant Subaru made a 998 Offer for $35,001.00, together with attorneys’ fees and costs totaling either $10,000.00 or costs and reasonably incurred attorneys’ fees, in an amount to be determined by the Court. (Smalley, supra, 87 Cal.App.5th at 454.) Plaintiff objected that the offer was not reasonable and the case proceeded to trial. At trial, a jury found in favor of Plaintiff and awarded him a total judgment award of $27,555.74 – far short of the $35,001.00 offer. The trial court found Plaintiff had failed to beat the 998 at trial and that Subaru’s earlier 998 offer was reasonable. Plaintiff appealed the post-judgment order awarding Plaintiff pre-offer costs and Defendant post-offer costs on the grounds that the 998 was not reasonable in that it did not specify whether Plaintiff would be deemed the prevailing party for purposes of a motion for attorneys’ fees. The fourth district affirmed the trial court’s order and engaged in a helpful review of 998 requirements. Read the court decision
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Reprinted courtesy of Kathryne Baldwin, Wilke Fleury
Ms. Baldwin may be contacted at kbaldwin@wilkefleury.com

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Wisconsin High Court Rejects Insurer’s Misuse of “Other Insurance” Provision

March 04, 2019 — Michael S. Levine & David M. Costello - Hunton Andrews Kurth
The Wisconsin Supreme Court held last week in Steadfast Ins. Co. v. Greenwich Ins. Co. that two insurers must contribute proportionally to the defense of an additional insured under their comprehensive liability policies. In 2008, torrential rainstorms battered the Milwaukee area for two days. The downpour overwhelmed the city’s sewer system, causing significant flooding in homes throughout the region. Out of those floods sprang several lawsuits against the Milwaukee Metropolitan Sewerage District (“MMSD”) for negligent inspection, maintenance, repair, and operation of Milwaukee’s sewage system. MMSD was an additional insured under liability policies covering two other water service providers responsible for the city’s sewer systems. The first policy was issued by Greenwich Insurance Company for United Water Services Milwaukee, LLC, and the second was issued by Steadfast Insurance Company for Veolia Water Milwaukee, LLC. After learning of the lawsuits, MMSD tendered its defense of the sewage suits to both insurers. Steadfast accepted the defense; but Greenwich refused, claiming that its policy was excess to Steadfast’s based on an “other insurance” clause in Greenwich’s policy. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and David Costello, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Costello may be contacted at dcostello@HuntonAK.com Read the court decision
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Restoring the USS Alabama: Surety Lessons From an 80-Year-Old Battleship

November 13, 2023 — Richard Sghiatti - Construction Executive
It’s not every day that a construction company gets to renovate an 80-year-old battleship. Yet that’s exactly where Youngblood-Barrett Construction & Engineering workers found themselves when they began restoring the main deck of the USS Alabama, a storied World War II battleship. The USS Alabama has a remarkable past. One of four South Dakota–class battleships, the “Mighty A” was commissioned in 1942. It deployed first to the Atlantic and then to the Pacific, where it earned nine battle stars for meritorious service. At 680 feet long and 108 feet wide, the “Heroine of the Pacific” had a wartime crew of 2,500 men. By 1962, though, the Navy was ready to scrap it. That’s when the state of Alabama decided to acquire the ship and preserve it as a museum. The USS Alabama was moved to Mobile and opened to the public in January 1965. Reprinted courtesy of Richard Sghiatti, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Manhattan Condo Lists for Record $150 Million

February 18, 2015 — Oshrat Carmiel – Bloomberg
(Bloomberg) -- Manhattan’s ultra-luxury condo market has a new high-water mark: $150 million. That’s the price set by developer Chetrit Group for a 21,500-square-foot (2,000-square-meter) triplex at the former Sony Building in Midtown, according to documents filed with the New York State attorney general’s office. It would be a record for a residential listing, topping a $130 million offering planned at Zeckendorf Development Co.’s 520 Park Ave. As luxury apartments proliferate in Manhattan, builders are offering their premier units at ever-higher prices as a way of standing out from the crowd, said Jonathan Miller, president of New York appraiser Miller Samuel Inc. So far, the highest price ever paid for a condominium in the city is $100.5 million, a deal completed in December for a duplex penthouse at the One57 tower. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

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Construction Defect Claim Did Not Harm Homeowner, Court Rules

September 30, 2011 — CDJ STAFF

The Minnesota Court of Appeals has ruled in Creswell v. Estate of Howe, a case in which a woman bought a home and then sued the seller’s estate, both sets of real estate agents, and the homeowner’s association over construction defects. A district court ruled against her, granting summary judgment to the other parties.

After buying a townhome “as is,” Catherine Creswell claims to have shared a thought with her agent that the homeowners association was, in the words of her agent, “trying to hide something.” Later, Creswell found that a few days before her closing, the board had discussed problems with “roofs, siding and soundproofing of the townhomes.” The court noted that “it was clear from the documents that appellant [Creswell] received that the association had known about various construction defects for many years, some of which affected [her] unit.”

Creswell initially sued the estate, the man who negotiated the sale for his mother’s estate, the real estate companies and the agents involved, the homeowners association, and four board members. Later she sued for punitive damages, dropped a claim for interference with contractual relations, and dismissed her claims against the individual board members. The court dismissed all of Creswell’s claims awarding costs to those she sued.

The appeals court has affirmed the decision of lower court, noting that Creswell “did not provide us with any argument why the district court erred in dismissing her unjust-enrichment, breach of contract, or rescission claims against the various respondents.” Nor did she provide evidence to support her claims of “breach of duty, fraud, and violation of consumer protection statutes.”

The court noted that Creswell could not sue the homeowners association over the construction defects because she “failed to prove that she was damaged by the association’s nondisclosure.” The court noted that “there are no damages in this case,” as Creswell “was never assessed for any repairs, she had not paid anything out-of-pocket for repairs, and she has presented no evidence that the value of her individual unit has declined because of the alleged undisclosed construction defects.”

The court granted the other parties motion to dismiss and denied Creswell’s motion to supplement the record. Costs were awarded to the respondents.

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When Must a New York Insurer Turn Over a Copy of the Policy?

December 23, 2023 — Nicholas P. Hurzeler - Lewis Brisbois
New York, N.Y. (December 7, 2023) - It has long been the rule in New York that a defendant should disclose all insurance policies that might provide coverage to the plaintiff for an underlying claim. McKiernan v Vaccaro, 168 AD3d 827 [2d Dept 2019]; Keenan v Harbor View Health & Beauty Spa, 205 AD2d 589 [2d Dept 1994]. This rule applies to all tort cases, including motor vehicle; however, it does not apply to lawsuits seeking to recover No Fault expenses (see, CPLR 3101(f)(5)). Frequently, a plaintiff will demand a copy of the policy even when the claim is still pre-suit. This raises the question of when the insurer must comply with this specific type of discovery demand in New York. Read the court decision
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Reprinted courtesy of Nicholas P. Hurzeler, Lewis Brisbois
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com

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