Fairfield Connecticut Building Expert Directory

Court Rejects Efforts to Limit Scope of Judgment Creditor’s Direct Action Under Insurance Code Section 11580

May 01, 2019 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Ins. Co. of St. of PA v. Amer. Safety Indemnity Co. (No. B283684, filed 3/1/19) (“ICSOP”), a California appeals court rejected one insurer’s efforts to limit the scope of another insurer’s direct action as a judgment creditor under Insurance Code section 11580(b)(2). In ICSOP, homeowners filed a claim in arbitration against their general contractor alleging damages from subsidence. While the arbitration was pending, the general contractor filed suit against the grading subcontractor seeking indemnity and contribution. The complaint attached the homeowners’ complaint in arbitration pleading damages of $2.3 million, and alleged that the subcontractors had a duty to indemnify for those damages. The arbitrator awarded the homeowners $1.1 million. The general contractor was insured by plaintiff ICSOP, which paid the arbitration award. A default judgment was entered against the grading subcontractor for $1.5 million, that included both the arbitration award plus $356,340 for the general contractor’s attorney’s fees. American Safety insured the grading subcontractor but refused to indemnify ICSOP. ICSOP then sued American Safety on the default judgment, pursuant to Insurance Code section 11580(b). The trial court granted summary judgment for ICSOP and the appeals court affirmed. Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Read the court decision
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Subcontractor Not Liable for Defending Contractor in Construction Defect Case

February 10, 2012 — CDJ STAFF

The California Court of Appeals has ruled on January 9, 2012 in Hensel Phelps Construction Company v. Urata & Sons Cement, upholding the judgment of the lower court.

Hensel Phelps was the general contractor for a high-rise in Sacramento. They were sued by the owners of the building after problems were discovered in the concrete slabs of the building’s parking garage. Instead of welded steel wire mesh, the slabs had been constructed with fiber mesh. Hensel Phelps filed a cross-complaint against Urata Cement, the subcontractor that had performed the cement work. Urata refused to defend Hensel Phelps. The owners’ case was subsequently dismissed due to the statute of limitations.

Although the original case was over, Hensel Phelps continued in their claims against Urata. “Urata argued that a handwritten interlineation required Hensel Phelps to prove Urata was at fault for the injury alleged in the building owners’ complaint before Urata was obliged to defend Hensel Phelps in that action.”

The lower court concluded that Urata would have been obligated to defend Hensel Phelps if the owners’ lawsuit had alleged that the damage was due to the subcontractor’s work or if evidence at trial established this. The lower court found neither of these true. Instead, the use of the fiber mesh was a design issue and “that decision was outside the scope of the subcontractor’s work.”

During the trial, Hensel Phelps conceded that Urata was not at fault. The appeals court could find no reading of the contract that would cause Urata to be obligated to defend Hensel Phelps, calling Hensel Phelps’s reading of the contact as “grammatically infeasible.”

Judges Nicholson, Raye, and Butz upheld the decision of the lower court and awarded costs on appeal to Urata.

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Engineer TRC Fends Off Lawsuits After Merger

August 17, 2017 — Scott Van Voorhis - Engineering News-Record
In the wake of its merger with an investment fund, TRC Cos. has been busy swatting away pesky shareholder lawsuits driven by law firms who specialize in such litigation. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Contractors: Consult Your Insurance Broker Regarding Your CGL Policy

February 15, 2018 — David Adelstein – Florida Construction Legal Updates

Contractors: do yourself a favor and consult your insurance broker regarding your commercial general liability (CGL) policy. Do this now, especially if you subcontract out work.

CGL policies contain a “your work” exclusion. The CGL policy is written such that it excludes “‘property damage’ to ‘your work’ arising out of it or any part of it and included in the ‘products-completed operations hazard.’” This exclusion will be raised in the post-completion latent construction defect scenario. (There are other exclusions that will be raised to a defect discovered during construction.) Certain policies will contain a subcontractor exception to this “your work” exclusion. You WANT this exception- no doubt about it so that this exclusion does not apply to work performed by your subcontractors. Without this subcontractor exception, truth be told, this “your work” exclusion is a total back-breaker to contractors. It will give your insurer an immediate out for many latent defect property scenarios since excluded from coverage is property damage to your work including work performed by your subcontractors.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Construction Bidding for Success

May 22, 2023 — The Hartford Staff - The Hartford Insights
When construction companies develop a history of successful projects, they often consider bidding on larger projects. However, larger projects can carry greater risks. If your company has successfully completed numerous $10 million projects and is considering a bid on a $100 million project, there are several factors to consider before submitting a proposal. That is because bidding on the wrong project could potentially put you out of business. “When a contractor bids a larger project, there is a greater financial risk,” says Tim Holicky, a senior executive underwriter at The Hartford. There are more subcontractors to manage and additional materials to purchase, which all leads to greater financial risk. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Cold Stress Safety and Protection

February 27, 2023 — The Hartford Staff - The Hartford Insights
The best time to think about cold stress safety isn’t when it’s about to snow – it’s actually when it’s still warm out. “Construction firms and other businesses may start to think about protecting workers against the cold when frigid temperatures and the winter are right around the corner. But we’ve found that oftentimes, that may be too late to start thinking about cold stress prevention,” said Chris O’Hala, director of construction Risk Engineering at The Hartford. “Thinking about cold protection months ahead can prevent serious injuries, illnesses or even death.” O’Hala added that possible solutions for cold-related risks, like planning for temporary heat or building temporary enclosures, “require very specific planning, equipment and materials.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Someone Who Hires an Independent Contractor May Still Be Liable, But Not in This Case

April 18, 2023 — Katherine Dempsey - The Subrogation Strategist
In Allstate Veh. & Prop. Ins. Co. v. Glitz Constr. Corp., 2023 N.Y. App. Div. LEXIS 1180, 2023 NY Slip Op 01171, the Supreme Court of New York, Appellate Division, Second Department (Appellate Court), considered whether a contractor could be found liable for its subcontractor’s alleged negligence in causing injury to a homeowner’s property. The homeowner’s insurer, as subrogee of the homeowner, sought to recover damages from the contractor despite an allegation that the subcontractor – an independent contractor – caused the injury to the homeowner’s property. Finding that there was no evidence that any of the exceptions to the non-liability rule related to hiring independent contractors applied, the Appellate Court affirmed the lower court’s decision granting judgment in favor of the contractor. In this case, the homeowner hired the contractor (defendant) to convert her garage area into a bedroom and an office. The defendant later hired a subcontractor to perform the electrical rough-in work. At trial, the homeowner’s insurer (plaintiff) presented evidence that the subcontractor, who damaged an existing wire with a drill bit, caused an electrical failure that resulted in a fire. The defendant argued that it could not be held liable for the subcontractor’s alleged negligence because the subcontractor was an independent contractor and, on appeal, the Appellate Court agreed. Read the court decision
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Reprinted courtesy of Katherine Dempsey, White and Williams LLP
Ms. Dempsey may be contacted at dempseyk@whiteandwilliams.com

Beyond the Disneyland Resort: Museums

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
North Orange County has a variety of interesting museums from intimate to extravagant to peruse. Bowers Museum, located in Santa Ana, has several special exhibitions on display around WCC Seminar: Endurance: The Antarctic Legacy Of Sir Ernest Shackleton And Frank Hurley, American Visionary: John F. Kennedy’s Life And Times, Gemstone Carvings: The Masterworks Of Harold Van Pelt, And First Americans: Tribal Art From North America. Muzeo, a Museum and Cultural Center located in Anaheim, will be showcasing the Trash Artist Challenge Expo & Exhibition from May 12th -27th, and also has on permanent display Anaheim: A Walk through Local History. Star Wars and Disney fans will want to make their way to the Hilbert Museum of California Art. In the city of Orange, this museum is located at Chapman University. Two of their many exhibitions include Magical Visions: The Enchanted Worlds Of Eyvind Earle (Disney’s Sleeping Beauty designer) and A New Hope: The Star Wars Art of Robert Bailey. Learn about American history at the Richard Nixon Library, located in nearby Yorba Linda. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES