FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Claims for Breach of Express Indemnity Clauses Subject to 10-Year Statute of Limitations

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Thomas G. Cronin of Gordon & Rees LLP (published in Association of Corporate Counsel), “[i]n 15th Place Condominium Association v. South Campus Development Team LLC, the Appellate Court for the First District of Illinois held that a claim for breach of an express indemnity clause within a construction agreement was subject to the 10-year statute of limitations for written contracts instead of the four-year statute of limitations for construction claims.” In 2008, the condo association sued the developer alleging “it had discovered latent design and construction defects in the condominium towers. In 2011, the developer filed a third-party complaint against the general contractor alleging breach of express indemnity.” While the general contractor prevailed in the first trial, the appellate court reversed the decision, “concluding that the nature of the developer’s express indemnity claim against the general contractor related to the failure to indemnify rather than to a construction-related activity.” Read the court decision
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Brazil Builder Bondholders Burned by Bribery Allegations

October 22, 2014 — Paula Sambo and Sabrina Valle – Bloomberg
Brazil’s biggest construction companies are leaving bondholders with losses in the wake of allegations they bribed Petroleo Brasileiro SA to win contracts. Queiroz Galvao SA’s $700 million of notes due 2019 have dropped 2.5 percent since Oct. 9, when the Department of Justice made available video in which former Petrobras head of refining Paulo Roberto Costa alleged that builders formed a cartel to overcharge for projects and divert money to politicians. OAS SA’s $875 million of 2019 notes have slumped 1.9 percent in that span, versus a 0.1 percent loss for emerging markets. Ms. Sambo may be contacted at psambo@bloomberg.net; Ms. Valle may be contacted at svalle@bloomberg.net Read the court decision
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Reprinted courtesy of Paula Sambo and Sabrina Valle, Bloomberg

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Insurer Granted Summary Judgment on Faulty Workmanship Claim

October 20, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court found no coverage for the insured developer after water intruded into the homeowners' basements. W. Bend Mut. Ins. Co. v. Cleland Homes, 2016 U.S. Dist. LEXIS 108030 (N.D. Ind. Aug. 16, 2016). The underlying complaint alleged that the subdivision was designed to create a run off of ground water onto the lots where Cleland built plaintiffs' homes. The design of the subdivision and construction of the homes was defective in that the plaintiffs' homes were situated so that the water table underneath their homes was so high that their basements flooded and damage occurred to the structure of their homes. Cleland was allegedly negligent in designing and/or constructing the homes or negligent in the water drainage plan for the subdivision. 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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The Cost of Overlooking Jury Fees

February 07, 2022 — Nicholas B. Brummel, Arezoo Jamshidi & Lawrence S. Zucker II - Haight Brown & Bonesteel
On January 21, 2022, the Court of Appeal, Second Appellate District, Division Two (Los Angeles), certified for publication a 2-1 decision that serves as an important reminder to California attorneys to post jury fees in a timely manner and to use appropriate channels and consult with appellate counsel in seeking appellate relief from contested rulings. In TriCoast Builders, Inc. v. Nathaniel Fonnegra, (B303300, Jan. 21, 2022), a construction defect dispute, the trial court set a jury trial at defendant’s request. However, on the day trial was set, defendant waived jury trial. Plaintiff objected and made an oral request for jury trial. The trial court denied the request finding that plaintiff waived its right to a jury trial by failing to timely post jury fees. The matter proceeded to a bench trial, and the court ruled in favor of defendant. Plaintiff appealed, having failed to seek a writ of mandate, which the appellate court noted “is the proper remedy to secure a jury trial allegedly wrongfully withheld.” Reprinted courtesy of Nicholas B. Brummel, Haight Brown & Bonesteel, Arezoo Jamshidi, Haight Brown & Bonesteel and Lawrence S. Zucker II, Haight Brown & Bonesteel Mr. Brummel may be contacted at nbrummel@hbblaw.com Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Gehry-Designed Project Seen Bringing NYC Vibe to L.A.

April 28, 2014 — Nadja Brandt and John Gittelsohn – Bloomberg
Billionaire Stephen Ross’s Related Cos. new project in the sleepy end of downtown Los Angeles is designed to invigorate Grand Avenue the way its Time Warner Center helped energize New York’s Columbus Circle. “The notion of bringing together this diverse mix of uses, and allowing for a lot of public spaces and public events, has proven to be very powerful in the right locations and with the right planning.” said William Witte, president of Related’s California division. The New York-based firm formed a joint venture with Los Angeles-based SBE Entertainment Group LLC to restart plans for a $650 million-to-$700 million complex with entertainment, shopping, apartments, condominiums and a luxury hotel, Witte said. After going back and forth with local officials for most of the past year, Related won approval in January for the Frank Gehry-designed project from Los Angeles County supervisors. Ms. Brandt may be contacted at nbrandt@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Reprinted courtesy of Nadja Brandt and John Gittelsohn, Bloomberg

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U.S. Judge Says Wal-Mart Must Face Mexican-Bribe Claims

October 01, 2014 — Jef Feeley – Bloomberg
Wal-Mart Stores Inc. (WMT) was ordered by a federal judge in Arkansas to face a pension fund’s claims the retailer defrauded shareholders by concealing corruption tied to bribes allegedly paid by officials of its Mexican unit. U.S. District Judge Susan Hickey in Fayetteville rejected Wal-Mart’s bid to throw out the Michigan-based fund’s lawsuit accusing it of making misleading statements to regulators about claims it paid bribes to facilitate Mexican real-estate deals. The world’s largest retailer has said it’s spent $439 million since 2012 in connection with investigations into allegations that employees paid bribes in Mexico, China, India and Brazil. Both U.S. and Mexican prosecutors have said they are probing whether executives of Wal-Mart’s Mexican unit were paying off local officials to clear the way for construction of new stores and warehouses. Read the court decision
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Reprinted courtesy of Jef Feeley, Bloomberg
Mr. Feeley may be contacted at jfeeley@bloomberg.net

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Forensic Team Finds Fault with Concrete Slabs in Oroville Dam Failure

September 14, 2017 — Greg Aragon - Engineering News-Record
Weathered and weakened portions of concrete contributed to the Oroville Dam's spillway failing last February, causing panic and mass evacuations in Northern California. This was part of the findings by an Independent Forensic Team (IFT), appointed by the California Department of Water Resources (DWR). Read the court decision
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Reprinted courtesy of Greg Aragon, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Massachusetts District Court Holds Contractors Are Not Additional Insureds on Developer’s Builder’s Risk Policy

August 31, 2020 — Gus Sara - The Subrogation Strategist
In Factory Mut. Ins. Co. v. Skanska United States Bldg., No. 18-cv-11700-DLC, 2020 U.S. Dist. LEXIS 95403 (Skanska), the United States District Court for the District of Massachusetts considered whether contractors on a construction job were additional insureds on the developer’s builder’s risk insurance policy. After a water loss occurred during construction, the builder’s risk insurance carrier paid its named insured for the resultant damage, and subsequently filed a subrogation action against two contractors. The defendants filed a motion for summary judgment, claiming that the anti-subrogation rule barred the carrier from subrogating against them because they were additional insureds on the policy. The court found that based on the particular language of the additional insured provision in the policy, the defendants were not additional insureds for purposes of the subrogation action. Skanska arose from property damage that occurred during a construction project where Novartis Corporation (Novartis) endeavored to construct a biomedical research building in Cambridge, Massachusetts and retained Skanska USA Building, Inc. (Skanska) as the general contractor. In turn, Skanksa hired J.C. Cannistraro, LLC (JCC) as a subcontractor. Novartis secured a builder’s risk insurance policy from Factory Mutual Insurance Company (Factory Mutual). The policy defined “Insured” as Novartis and its subsidiaries, partnerships and joint ventures that it controlled or owned. The policy included another provision, titled “Property Damage,” which stated that the policy “insures the interest of contractors and subcontractors in insured property… to the extent of the Insured’s legal liability for insured physical loss or damage to such property.” Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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