FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

No Coverage for Construction Defects Under Arkansas Law

January 13, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court found there was no coverage for the insured contractor under Arkansas law when sued for construction defects by two homeowners. Auto-Owners Ins. Co. v. Hambuchen Constr., 2016 U.S. Dist. LEXIS 160364 (W.D. Ark. Nov. 18, 2016). In one case, the Pierces hired Hambuchen, the insured contractor for the construction of a new home, which was completed in 2006. Two years after moving in, the Pierces experienced water leaks at various locations inside the home and the basement flooded. Water damage rendered the back deck unstable. In 2010 and 2011, Hambuchen made repairs to stop leaks on the decks, but in 2012 the back deck again showed signs of water damage. The Pierces sued, and Auto-Owners provided a defense under a reservation of rights. In the second case, the Lessmanns hired Hambuchen in 2005 as general contractor to construct their new home. Following completion of the home, the Lessmanns complained about scratched windows. The Lessmanns filed suit against Hambuchen for breach of the construction contract by failing to build their home in a workmanlike manner. The Lessmanns filed suit in May 2009. Auto-Owners was not aware of the suit until 2015 when it received notice that the Lessmanns had filed an amended complaint. The Lessmans' suit went to trial and Hambuchen prevailed. 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

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Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power

October 28, 2024 — Mark Chediak - Bloomberg
A growing number of utilities are resorting to an extreme measure to prevent their equipment from sparking catastrophic wildfires: turning off the power. Electric companies serving about 24 million homes and businesses across the fire-prone US West now have plans to preemptively cut electricity during dangerous fire conditions, according to an analysis of data compiled by researchers at Stanford University. The proactive blackouts, however, run counter to the power companies’ main mission — which is to keep the lights on. And that’s angering customers and officials. Lawsuits — and the billions of dollars of damage claims that come with them — are an increasing concern among utilities, said Michael Wara, who leads the Climate and Energy Policy Program at Stanford University. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg

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Important New Reporting Requirement for Some Construction Defect Settlements

April 17, 2019 — Ian Williamson - Gordon & Rees Construction Law Blog
In response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22. What types of Projects: This requirement applies only if all of the following apply:

A) Residential B) Multi-Family; and C) Rental property

Limitations on Claims – The reporting requirement only applies if all of the following are true:

A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor; B) The claim is for a structural defect; C) The total claim is valued at $1 million (not including investigation costs); D) SB800 does not apply; E) The action was filed after January 1, 2019; and F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).

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Reprinted courtesy of Ian Williamson, Gordon & Rees
Mr. Williamson may be contacted at igwilliamson@grsm.com

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A Few Green Building Notes

April 03, 2019 — Christopher G. Hill - Construction Law Musings
This past week, the blogosphere (if that’s even the word these days) has been abuzz about green building and the value that green can add to a project. Three items in particular (among many) got my attention. The first of these was the fact that a new private sustainability rating system is ready for launch. The Institute for Sustainable Infrastructure (or ISI) is seeking public comment on its proposed envISIon. This new system (aptly dubbed Version 1.0) will go “live” in July for comment. Why mention this new system? First of all, ISI’s founding members are the American Society of Civil Engineers (ASCE), the American Public Works Association (APWA) and the American Council of Engineering Companies (ACEC). This trio gives the new program some fairly heavy weight backing. Second, while there are rating systems aside from the ever present LEED, none have taken hold in any real way to compete with LEED. I am curious to see if the envISIon system has any better luck. Finally, this shows that sustainable building is of interest to more than the USGBC and those of us that discuss LEED on a daily basis. I find this to be a great thing that could lead to more societal acceptance of sustainable practices as a standard practice rather than a goal. Hopefully such efforts will offset the other two notes that caught my eye recently. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Coverage Exists for Landlord as Additional Insured

September 03, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Indiana Court of Appeals determined the landlord was entitled to coverage as an additional insured under the tenant's policy. Selective Ins. Co. v. Erie Ins. Exch., 2014 Ind. App. LEXIS 365 (Ind. Ct. App. July 30, 2014). Rangeline, LLC owned a warehouse. Rangeline negotiated a lease with Hammons Storage to store insulation manufactured by Knauf Insulation. Pursuant to requirements in the lease, Hammons secured liability coverage with Erie Insurance naming Rangeline as an additional insured. After Hammons moved insulation into the warehouse for storage, the pipes of the sprinkler system burst, causing damage to the insulation. The cause of the loss was determined to be water from the system freezing, which led to the cast iron fittings cracking, causing the failure of the sprinkler heads. 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

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Five Steps Employers Should Take In the Second Year Of the COVID-19 Pandemic

March 29, 2021 — Laura H. Corvo - White and Williams LLP
For the past year, employers faced unprecedented difficulties as they navigated the twists, turns and ever-present challenges the COVID-19 pandemic dished out. A year later, new challenges face employers. The promise of vaccines, the fear of new variants, and the realization that “normal” will never look quite the same, leave many employers to wonder: “what next?”. As employers prepare to enter the second year of the COVID-19 pandemic, here are five things they should plan to do. 1. Update Workplace Safety Measures At the onset of the pandemic, employers struggled to understand the safety obligations involved in preventing the spread of COVID in the workplace. As we approach the second year of the pandemic, clearer legal standards and better science exist requiring employers to update the steps they are taking to keep their workplaces safe. Read the court decision
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Reprinted courtesy of Laura H. Corvo, White and Williams LLP
Ms. Corvo may be contacted at corvol@whiteandwilliams.com

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Coverage for Injury to Insured’s Employee Not Covered

June 10, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The employee exclusions in the employer's CGL and Umbrella policies barred coverage. Piatt v. Indiana Lumbermen's Mut. Ins. Co., 2015 Mo. LEXIS 32 (Mo. April 28, 2015). Linda Nunley was killed while working for Missouri Hardwood Charcoal, Inc. The kiln's large steel door had been removed and was leaning upright against another kiln when it blew over and crushed Ms. Nunley. Her family filed a wrongful death suit against Junior Flowers, the company's sole owner, director, and executive officer. The complaint alleged that Flowers was negligent in ordering employees to lean the kiln doors upright, even though he knew it was unsafe. The complaint further alleged that Flowers breached a personal duty of care owed to Ms. Nunley and that his actions were "something more" that a breach of the company's duty to provide a safe workplace. Flowers requested a defense under CGL and Umbrella policies issued by Lumbermen's. The policies insured Missouri Hardwood and its executive officers, but excluded liability for a work-related injury to an "employee of the insured." The policies also had a "separation of insureds" provision, stating that the insurance applied "separately to each insured against whom claim is made or suit is brought." Lumbermen's denied coverage. 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

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Insurer Must Defend Additional Insured Though Its Insured is a Non-Party

November 18, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The plaintiff insurer's motion for partial summary judgment seeking an order that defendant insurer was obligated to defend a non-party as an additional insured was granted. Am Empire Surplus Lines Ins. Co. v. Burlington Ins. Co., 2019 N. Y. Misc. LEXIS 4145 (N. Y. Sup. Ct. July 25, 2019). Quality Building Construction, LLC was the contractor hired to work on exterior facade of a building owned by Central Park West Corporation. The underlying complaint alleged that Quality caused plastic spacers and pedestals used for the penthouse terrace to fall down the roof drain riser. A clog and rainwater backup resulted in water damage to apartment 8A. The resulting damage was allegedly due to the clogged roof drain riser. Quality subcontracted the work to Mega State, Inc. The subcontract required Mega to indemnify and hold Quality harmless against claims in connection with Mega's work, as well as name Quality as an additional insured on a primary, non-contributory bases under Mega's CGL policy. Burlington issued a policy to Mega naming Quality as an additional insured. American Empire issued a CGL policy to Quality. Quality was sued in the underlying action, but Mega was not. American Empire tendered a demand for coverage to Mega and Burlington, relying on the agreement between Quality and Mega. Burlington responded that Mega was not liable for the alleged damages. American Empire sued Burlington. Subsequently, Burlington accepted the tender to defend Quality in the underlying action, and reserved rights as to whether Burlington's policy was primary and on the question of indemnification. American Empire agreed to withdraw its suit if Burlington would modify its reservation of rights. Burlington refused. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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