FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Strict Rules for Home Remodel Contracts in California

June 06, 2018 — Daniel F. McLennon - Smith Currie
Home remodeling in California is governed by strict contracting laws intended to protect consumers. The Contractors State Licensing Board, (“CSLB”) is particularly concerned about contractors working without permits, contractors taking payment in excess of the value of the work complete–including deposits in excess of $1,000–and contractors refusing to complete projects. They are also concerned about contractors who fail to comply with the Home Improvement Contract (“HIC”) laws. At a minimum, it takes six pages of contract language for an HIC to comply with California law. Most contractors do not get it right, leaving themselves exposed to license discipline, misdemeanor criminal prosecution, and void contracts. The stakes are high, and contractors are advised to learn and comply with the HIC laws. Read the court decision
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Reprinted courtesy of Daniel F. McLennon, Smith Currie
Mr. McLennon may be contacted at dfmclennon@smithcurrie.com

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Federal District Court Finds Coverage Barred Because of Lack of Allegations of Damage During the Policy Period and Because of Late Notice

December 29, 2020 — Robert Dennison - Traub Lieberman
In American Bankers Ins. Co. of Florida v. National Fire Ins. Co. of Hartford, 2020 WL 5630017 (Sept. 21, 2020), the Northern District of California of the United States District Court had occasion to consider whether allegations in an underlying complaint triggered a duty to defend and a late notice defense to coverage. The underlying actions were a suit against the City of Walnut Creek for damages from flooding allegedly caused by the City’s failure to develop and maintain its storm drains.The City settled the cases then sued its liability insurers who issued its coverage in the period 1968 to 1986 for indemnification of the amounts spent to defend and settle the cases.The published decision involved three Travelers’ policies issued to the City between 1968 and 1976, as to which Travelers sought summary judgment as to the lack of coverage in its policies. The district court first found that the definition of an “occurrence” in the policies, in one policy “an event or a continuous or repeated exposure to conditions which causes injury to person or damage to property during the policy period” and in the other two “an accident, including injurious exposure to conditions, which results during the period this policy is in effect, in bodily injury or property damage,” fell within the rule of Montrose Chemical Corp. v. Admiral Ins. Co. (1995) 10 Cal.4th 645, that injury or damage during the policy period must occur in order for the policy to be triggered.The court agreed with Travelers that while there were allegations of flooding for many years, the only claims/allegations of property damage were for the period 2000 and later.Therefore the property damage coverage in the policies was never triggered. Read the court decision
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Reprinted courtesy of Robert Dennison, Traub Lieberman
Mr. Dennison may be contacted at rdennison@tlsslaw.com

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Wisconsin Supreme Court Upholds Asbestos Exclusion in Alleged Failure to Disclose Case

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
In the case Phillips v. Parmelee, the Wisconsin Supreme court ruled “that an asbestos exclusion in a liability policy barred a duty to defend and indemnify a building seller for claims that the seller failed to disclose that the building contained asbestos,” according to an article in Mondaq by Ruth S. Kochenderfer and Deanna P. Cook, both from Steptoe & Johnson LLP. The policyholder received a building report stating that the “heating ducts likely contained asbestos,” however, the buyers alleged that the policyholder never provided them the report. After the buyers purchased the property, contractors “cut through the heating ducts, unknowingly dispersing asbestos throughout the building.” According to Kochenderfer and Cook’s article, “The insurer intervened in the buyers' suit and sought summary judgment against the policyholder and buyers, arguing that an asbestos exclusion precluded coverage for the buyers' suit against the policyholder.” The buyers took the case to the Wisconsin Supreme court and “attacked the asbestos exclusion,” but the court rejected every argument. Kochenderfer and Cook stated that the “decision is significant because three courts, including Wisconsin's highest court, squarely rejected attempts to narrow a broad, clearly-worded asbestos exclusion. Further, it confirms that such an asbestos exclusion will apply to all causes of action, including an alleged failure to disclose the presence of asbestos.” Read the court decision
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Heathrow Tempts Runway Opponents With $1,200 Christmas Sweetener

December 15, 2016 — Christopher Jasper – Bloomberg
Heathrow Airport Ltd. will offer hundreds of homeowners a 1,000-pound ($1,200) festive sweetener to participate in environmental studies vital to expediting planning for its controversial 16 billion-pound third runway. The owners of houses and farmland on which the new landing strip is due to be built will qualify for the payment in return for agreeing to a handful of visits over about two years, Heathrow Chief Executive Officer John Holland-Kaye said in an interview. The surveys are required to establish the site’s wildlife value. Read the court decision
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Reprinted courtesy of Christopher Jasper, Bloomberg

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No Coverage Under Ensuing Loss Provision

September 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The cost of removing and replacing cracked flanges to prevent future leakage was not covered as an ensuing loss under a builder’s risk policy in RK Mechanical, Inc. v. Travelers Prop. Casualty Co. of Am., 2011 U.S. Dist. LEXIS 83958 (D. Colo. Aug. 1, 2011).

The insured, RK Mechanical Inc., was a subcontractor hired to install plumbing for a residential construction project. RK was an additional insured on the general contractor’s policy with Travelers. RK installed approximately 170 CPVC flanges on the project. Subsequently, two of the flanges cracked, allowing water to overflow and causing water damage to the project. Travelers was notified of the flange failure and resulting water damage.

RK subsequently removed and replaced the two cracked flanges and began water remediation. Travelers paid for the cost of the water damage due to the cracked flanges.

RK then examined all of the flanges installed in the project and discovered many were cracked and/or showed signs of potential failure. RK removed and replaced the cracked flanges. RK tendered a claim and demand for indemnity to Travelers for these repair costs. Travelers denied the claim. RK then sued for breach of contract and declaratory relief. The parties filed cross motions for summary judgment.

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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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Insurer Granted Summary Judgment on Denial of Construction Defect Claim

January 27, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insurer's motion for summary judgment, confirming there was no duty to defend or indemnify a construction defect claim against the insured. Fontaine Bros. v. Acadia Ins. Co., 2019 U.S. Dist. LEXIS 148056 (D. Mass. Aug. 29, 2019). The City of Worcester contracted with Fontaine Brothers, Inc. to install a new ice refrigeration system at the City's indoor ice rink. After construction, the condensers in two chiller units eroded and stopped operating. The City sued Fontaine for the costs of leasing temporary chillers and installing new ones. The City alleged that Fontaine installed condensers with carbon steel tubes instead of contractually required stainless stell tubes.Further, Fontaine and its subcontractors did not adequately maintain the condensers, in breach of the contract. Fontaine's insurer, Acadia Insurance Company, denied coverage. Fontaine sued Acadia. The court noted that the City's complaint plainly alleged faulty workmanship by Fontaine. However, the City's complaint did not allege that Fontaine intended the condensers to corrode and left open the possibility that Fontaine was unaware of any potential problem or did not foresee the corrosion likely to result from the use of carbon steel components or the maintenance work being done by its subcontractor. Therefore, the Cit's complaint did not foreclose the possibility that the corrosion resulting from Fontaine's alleged faulty workmanship and maintenance might be shown to be an unforeseen or unintended consequence of reckless or negligent conduct. Accordingly, it was possible that there was an occurrence under the policy language. 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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New Jersey Supreme Court Rules that Subcontractor Work with Resultant Damage is both an “Occurrence” and “Property Damage” under a Standard Form CGL Policy

September 01, 2016 — Beverley BevenFlorez-CDJ STAFF
According to a client alert by the firm Peckar & Abramson, P.C. (P&A), “In a recent significant decision, the Supreme Court of New Jersey held that defective work of a subcontractor that causes consequential property damage is both an ‘occurrence’ and ‘property damage’ under the terms of a standard form commercial general liability (“CGL”) insurance policy.” Patrick J. Greene, Jr., and Frank A. Hess of P&A wrote that the Cypress Point Condominium Assoc., Inc. v Adria Towers, LLC, 2016 N.J. Lexis 847 (Aug.4,2016) “decision is important in New Jersey and in other jurisdictions that had relied upon the influential New Jersey case, Weedo v. Stone–E–Brick, Inc., 81 N.J. 233 (1979), that had determined that such claims involved non-insured ‘business risks.’” Read the court decision
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Here's How Much You Can Make by Renting Out Your Home

August 20, 2014 — Suzanne Woolley – Bloomberg
Oklahoma City and San Jose, California, top lists of cities where homeowners deciding to rent rather than sell their homes could see the biggest gains. That's according to real estate information website Zillow Inc., which ran data to see what current homeowners could make if they became mom-and-pop landlords. The Okies in their state's capital city win when it comes to monthly profits: $536, or $6,431 annually. For long-term gains, the top 10 cities are those where homeowners would lose money every year by renting -- until the big payoff when they sell. Zillow translates that gain, looking back, into monthly and yearly profits. So fast-appreciating Californian cities win big, led by San Jose. (Scroll down to see the Top 10 lists; the entire list is here.) The top 10 short-term gainers range geographically from Rochester, N.Y., to Dallas-Fort Worth, Texas. Monthly rental profits there are $349 and $264, respectively, or annual income of $4,182 and $3,166. Read the court decision
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Reprinted courtesy of Suzanne Woolley, Bloomberg
Ms. Woolley may be contacted at swoolley2@bloomberg.net

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