Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract
April 29, 2024 —
Ryan A. Bennett - The Subrogation StrategistIn a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation provision in a consumer fuel service/delivery contract violated public policy. The Superior Court overruled the motion for summary judgment filed by Eastern Fuel Corporation (Eastern) and determined that the clause was impermissible as the contract was entered into by two parties with unequal bargaining power.
American Commerce Insurance Company (American) provided property insurance to Arlene and James Hillas (the Insureds) for their home in Woodbridge, Connecticut. The Insureds hired Eastern to service their heating system on or around October 25, 2018. The service work at the property included inspecting the oil filters and flushing the fuel lines. On November 1, 2018, when the Insureds turned the heating system on for the first time that season, the two oil tanks on the property were allegedly full. After a series of deliveries, claims that the oil levels were lower than expected, discovering oil staining on the floor and Eastern’s replacement of the oil lines, Eastern delivered another 429 gallons. However, after the delivery, additional leaks were discovered relating to the oil line replacements. Ultimately, the Insureds submitted a claim to American and American paid in excess of $59,000 for the damage incurred.
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Ryan A. Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
“Other Insurance” and Indemnity Provisions Determine Which Insurer Must Cover
September 01, 2011 —
Tred R. Eyerly - Insurance Law HawaiiA policy’s “other insurance” clause and a contractual indemnity provision were at the root for determining which of two insurers had to cover for injuries at a construction site. Valley Forge Ins. Co. v. Zurich Am. Ins. Co., 2011 U.S.Dist. LEXIS 76061 (N.D. Calif. July 14, 2011).
Hathaway was the general contractor at a demolition and construction project. Hathaway was insured by Zurich. Reinhardt Roofing was the roofing subcontractor. Reinhardt was insured by Valley Forge under a policy which named Hathaway as an additional insured. The subcontract also required Reinhardt to indemnify Hathaway for acts or omissions arising from Reinhardt’s work unless Hathaway was solely negligent.
Four of Reinhardt’s workers were injured when a canopy roof on which they were working collapsed. At the time of the accident, Hathaway’s on-site supervisor was inspecting a gap in the canopy roof, but did not order Reinhardt’s workers to stop working.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Dozens Missing in LA as High Winds Threaten to Spark More Fires
January 14, 2025 —
Laura Curtis & Brian K Sullivan - BloombergHot, dry winds are pummeling Los Angeles and surrounding areas of Southern California, raising wildfire risks through at least Wednesday as the region reels from blazes that have killed at least 24 people and burned neighborhoods to the ground.
Tropical-storm-strength winds were raking the mountains around LA on Tuesday, with gusts reaching 60 miles (97 kilometers) per hour. About 2 million people face extreme fire conditions across a swath of land that includes Oxnard, Thousand Oaks and Simi Valley, according to the US Storm Prediction Center. Red-flag fire warnings extend south to San Diego.
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Laura Curtis, Bloomberg and
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Subcontractor's Faulty Workmanship Is Not an "Occurrence"
March 16, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe court found there was no duty to defend the subcontractor for alleged faulty workmanship in installing stone veneer at a condominium construction project. Quality Stone Veneer, Inc. v. Selective Ins.Co. of Am., 2017 U.S. Dist. LEXIS 9393 (E.D. Pa. Jan. 23, 2017).
Quality Stone Veneer (QSV) entered a subcontract with Mignatti Construction, the general contractor, for development of a condominium. QSV agreed to provide all the materials and labor related to the installation of stone veneer at the project. After construction began, the Association filed a complaint against Mignatti, claiming deficiencies in the construction of the furnace, ventilation, roofing, alarms, sprinklers, electrical and water systems. Mignatti filed a joinder complaint against QSV for contribution and/or indemnity for breach of warranty and negligence.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida Representative Wants to Change Statute of Repose
December 10, 2015 —
Beverley BevenFlorez-CDJ STAFFCurrently in Florida, the ten year clock for construction defect claims typically starts ticking after the final payment is made by the owner. However, WFSU reported, Representative Keith Perry wants to change it so that the completion of the construction triggers the statute of repose.
This change “could favor the construction industry, by shifting the power to start the clock from home owners to builders,” WFSU claimed. Representative Dwight Dudley worries about “what would happen if a contractor felt she was finished but the property owner didn’t agree.”
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The BUILDCHAIN Project Enhances Data Exchange and Transparency in the EU Construction Industry
January 23, 2023 —
Aarni Heiskanen - AEC BusinessTrace Labs, a WEB 3 developer, joins the EU’s efforts to create a smarter and more sustainable built environment with the
BUILDCHAIN project. With its 11 EU partners, Trace Labs aims to improve efficiency, reduce errors, and increase transparency and trust in construction.
Efficient, transparent, and trusted data exchange is a powerful tool for driving sustainability, resilience, and energy efficiency in construction. However, there are several obstacles to trusted data exchange in the industry today:
- Data silos: Construction projects involve multiple parties and stakeholders, each of which may have its systems for storing and sharing information. This can lead to data silos and a lack of coordination, making it difficult to access and trust the data.
- Lack of standardization: Construction projects may use different formats for storing and sharing data, leading to difficulties in comparing and combining information from various projects.
- Data security: Construction projects often involve sensitive information, such as building plans, materials lists, and inspection results. Ensuring this information is secure and protected from unauthorized access can be a significant challenge.
- Lack of incentives: There are often few incentives for construction companies and other stakeholders to share data and collaborate on projects, making establishing trust and transparency challenging.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
MSJ Granted Equates to a Huge Victory for BWB&O & City of Murrieta Fire Department!
May 30, 2022 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O Partner Tyler D. Offenhauser and Senior Associate Kevin B. Wheeler prevailed on their Motion for Summary Judgment (“MSJ”) on behalf of a public entity, the City of Murrieta Fire Department today!
As a matter of background, authorities were first called to a residence in Murrieta after a report of a gas line rupture. Firefighters and Southern California Gas Company responded to the call. As a crew from SoCalGas was trying to shut off the gas an explosion happened, leveling the home and killing 31-year-old SoCalGas employee Wade Kilpatrick. 30 surrounding homeowners have now alleged personal injuries, including TBI, as a result of the explosion. News agencies reported that Plaintiff Anthony Borel sustained a severe head injury and was placed in a coma. Plaintiff’s injuries included an epidural hematoma, subarachnoid hemorrhage, bilateral corneal abrasions, right orbital fracture, right temporal fracture, right maxillary fracture, frontal skull fracture, 18% partial-thickness burns to the face, abdomen, arms and legs, and a severe TBI with cognitive deficiencies. Plaintiff claimed damages in excess of $20,000,000.00.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Unpredictable Opinion Regarding Construction Lien (Reinstatement??)
January 17, 2023 —
David Adelstein - Florida Construction Legal UpdatesHere comes the discussion of an appeal I was intimately involved in dealing with a construction lien. See Suntech Plumbing and Mechanical Corp. v. Bella Isla, LLC, 2022 WL 14672765 (Fla. 3d DCA 2022). Unfortunately, it was a losing result on my end but not a losing result to the issue at-hand. You should ask what in the world does this mean. I will tell you.
Here is the fact pattern. A subcontractor files a construction lien foreclosure lawsuit against an owner for unpaid contract balance. In the same lawsuit, the subcontractor sues the general contractor for breach of contract and unjust enrichment associated with an approximate three-year delay on a construction project. The project was scheduled to be completed in 2019. It was not. The project was pushed into COVID and into 2022. (The subcontractor did not sue the general contractor for amounts subject to the lien foreclosure claim.) The general contractor, assuming the defense of the owner, moved to stay the lawsuit pending the outcome of arbitration based on an arbitration provision in the subcontract. The subcontractor did not dispute the arbitration provision, but argued that arbitration provision should not extend to the owner that was (a) not bound by the subcontract, (b) would not be a party to the arbitration, and (c) the amounts pled against the general contractor did not include the amounts subject of the lien foreclosure lawsuit. At a minimum, the lawsuit should be stayed, not dismissed. Nevertheless, the trial court dismissed the entire lawsuit in an order that states that it is a final order with language that the lien may be “reinstated” after the outcome of the arbitration (that the owner is not a party to).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com