Fairfield Connecticut Building Expert Directory

Federal Court Dismisses Coverage Action in Favor of Pending State Proceeding

October 12, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court declined to exercise jurisdiction over the coverage action that was parallel to a case pending in state court involving the same parties and same issues pending. Navigators Ins, Co. v. Chriso's Tree Trimming, 2020 U.S. Dist. LEXIS 129711 (E.D. Calif. July 22, 2020). Pacific Gas & Electric (PG&E) entered into a tree, brush and wood removal contract with Mount F Enterprises, Inc. Mountain F subsequently entered into a subcontractor agreement with Chriso Tree Trimming, Inc. for work to be performed for PG&E. In August 2017, Chriso attempted to remove a tree, but the tree accidentally fell in the wrong direction and knocked down nearby powerlines. The powerlines came into contact with surrounding brush and started the "Railroad Fire." The fire was eventually contained on September 15, 2017, after 12, 407 acres were burned and 7 structures and 7 homes were destroyed. Five subrogation lawsuits were filed in state court against Chriso and Mountain F by various insurance companies that paid for the damage caused by the Railroad Fire. A policy limits demand to settle all claims against Chriso and Mountain F was made. Navigators insured Chriso for $9 million through a Commercial Excess Liability Policy, payable once all other insurance was exhausted. The policy included a "Professional Services Endorsement" (PSE Exclusion) that excluded coverage of "professional services." "Professional services" was defined through a list of 12 non-exclusive professions and services that generally referred to activities involving specialized knowledge or skill that was predominantly mental or intellectual in nature rather than physical or manual. 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

CISA Guidance 3.1: Not Much Change for Construction

June 22, 2020 — Laura Bourgeois LoBue - Gravel2Gavel Construction & Real Estate Law Blog
This week, the Cybersecurity & Infrastructure Security Agency (CISA) issued Version 3.1 of its Guidance on the Essential Critical Infrastructure Workforce. For the most part, CISA’s Guidance 3.1 did not change from Version 3.0 as it relates to construction. However, CISA added a few construction-related services to “Essential Critical Infrastructure”:

“Workers who support the construction and maintenance of electric vehicle charging stations.”
“Engineers performing or supporting safety inspections.”

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Reprinted courtesy of Laura Bourgeois LoBue, Pillsbury
Ms. LoBue may be contacted at laura.lobue@pillsburylaw.com

Follow Up on Continental Western v. Shay Construction

March 28, 2012 — Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLC

Writing in Construction Law Colorado, Brady Iandiorio revisits the case Continental Western v. Shay Construction. He promises to continue to follow cases dealing with Colorado HB 10-1394.

Recently the Court ruled on two Motions to Reconsider filed by Defendants Milender White and Shay Construction.

Procedurally, the Motions to Reconsider were ruled on by the Honorable William J. Martinez, because the day after the motions were filed the action was reassigned to Judge Martinez. In the short analysis of the Motion to Reconsider, the court leaned on Judge Walker D. Miller’s ruling on the summary judgment and his analysis of the (j)(5) and (j)(6) exclusions.

As a quick refresher regarding the grant of summary judgment, Judge Miller agreed with Continental Western’s argument that the asserted claims were excluded under the “damage to property” exclusion. The policy’s exclusions state: “(j) Damage to Property . . . (5) that particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the ‘property damage’ arises out of those operations; or (6) that particular part of any property that must be restored, repaired or replaced because ‘your work’ was incorrectly performed on it.” Judge Miller found that both exclusions (j)(5) and (6) applied to both Shay’s allegedly defective work.

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Reprinted courtesy of Brady Iandiorio of Higgins, Hopkins, McClain & Roswell, LLC. Mr. Iandiorio can be contacted at iandiorio@hhmrlaw.com.

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No Coverage for Breach of Contract Claims Against Contractor

March 19, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The U. S. District Court found there was no coverage for breach of contract claims against the contractor who walked off the job before completing the project. Pa. Nat'l Mut. Cas. Ins. Co. v. Snider, 2014 U.S. Dist. LEXIS 16920 (M.D. Ala. Feb. 11, 2014). The homeowners hired Jeff Beale to build their home for an approximate cost of $650,000. Beale said the job would take six to eight months and construction would be completed in early 2005. Construction did not begin, however, until April 2005. By 2005, the homeowners were becoming increasing displeased with Beale's progress. By March 2006, construction costs were approaching $800,000 and the home was not completed. The homeowners made progress payments on a monthly basis. Beale did not return to the home after April 2006 and another contractor was hired to complete the job. When the homeowners moved in, they discovered several construction defects, including a cracked retaining wall and water intrusion in many areas of the home. They paid over $150,000 to repair the defects, to complete work Beale left unfinished, and remove mold. 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

Eight Ways to Protect a Construction Company Before a Claim Is Filed

November 04, 2019 — Mary Bacon - Construction Executive
Claims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers. TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED

Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.

Reprinted courtesy of Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Bacon may be contacted at mbacon@spencerfane.com

The Top 3 Trends That Will Impact the Construction Industry in 2024

December 04, 2023 — The Hartford Staff - The Hartford Insights
As more than 40% of the current U.S. construction workforce will retire in the next decade, industry leaders need to equip themselves with the necessary resources to combat the shifting work environment.1 “Trends in the construction industry will fluctuate in the coming years, which can lead to additional risks for industry leaders. It will be important to think about how they can address any potential risk factors. A lot of leaders have been increasing their planning efforts and looking into technology solutions to combat the ongoing labor shortage,” said David DeSilva, head of construction at The Hartford. Here, he outlines the top three top trends for business leaders to watch in 2024. 1. Ongoing Labor Shortages Construction is an industry that traditionally has a high labor turnover rate, which means companies needs to hire more frequently. This only increases during labor shortages. The construction workforce is up against several factors, including an aging workforce and recruitment struggles. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Deadlines Count for Construction Defects in Florida

November 06, 2013 — CDJ STAFF
Scott Kiernan, an attorney in the Orlando offices of Becker & Poliakoff, writing on their Florida Construction Law Authority site notes that “nothing lasts forever, especially the right to sue for building defects.” Under Florida law, according to Mr. Kiernan, the time in which a condominium association can file a construction defect is “only 4 years from the time that the Condominium Association knew or should have known of the defect(s).” However, for defects that aren’t even discovered during those first four years, there is a ten-year period where claims for latent defects can become the subject of a construction defect claim. Read the court decision
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Event-Cancellation Insurance Issues During a Pandemic

September 07, 2020 — Lorelie S. Masters & Latosha M. Ellis - Hunton Andrews Kurth
As the effects of coronavirus continue, organizations and companies now are considering whether events in late 2020 and early 2021 can take place or need to be converted to virtual events. What insurance effects will those changes and cancellations have? Consideration of these important decisions requires a review of both event-cancellation insurance and a consideration of force majeure and other such issues. On the insurance front, years ago, many policyholders purchased event-cancellation insurance for events in 2020, 2021, and even as far out as 2024. Such policies, purchased before the middle of March 2020, generally contain explicit coverage “buy-backs” for losses from “communicable disease.” That is, the policyholders paid an extra, specifically identified premium to remove any exclusion for communicable disease from these policies. Typically, these policies do not use the word, “virus”, but rather use “communicable disease”; and exclude neither. Those policies typically cover a specified amount of net profit and include additional coverages for “Cost of Remedial Action”, “Future Marketing Expense”, etc., over and above that specified amount of coverage. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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