Fairfield Connecticut Building Expert Directory

California’s Right to Repair Act not an Exclusive Remedy

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
Karen L. Moore of Low, Ball & Lynch in JD Supra Business Advisor analyzed “two decisions holding that California’s Right to Repair Act ('SB 800') is not the exclusive remedy for a homeowner seeking damages for construction defects that have also resulted in property damage.” If property damage occurs due to construction defects, a homeowner “may also pursue common law tort causes of action.” After providing a brief background of California’s SB 800 and Aas v. Superior Court (which precluded the Right to Repair Act), Moore discussed the results of Liberty Mutual Insurance Company v. Broofield Crystal Cove, LLC, followed by a review of Burch v. Superior Court. Moore commented that “[t]hese two cases will likely be used by homeowners to avoid application of the Right to Repair Act’s pre-litigation procedures.” Read the court decision
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CDJ’s Year-End Review: The Top 10 CD Topics of 2014

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Construction Defect Journal’s year-end review presents the top ten most popular topics featured in the journal in 2014. Some of the topics involved analysis of important construction defect cases, while others covered current events such as proposed state legislation. Most issues were heavily discussed on CDJ as well as in board rooms and during teleconferences. We hope you enjoy the look-back at 2014 interspersed throughout the issue, and we wish you and yours a prosperous 2015! CDJ’s #1 Topic of the Year: Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013) According to Darrin J. McMullen of Anderson Kill, “[t]he Indalex decision reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies. Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’” Read the court decision
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Bad Welds Doom Art Installation at Central Park

October 30, 2013 — CDJ STAFF
Last year, the sculpture “How I Roll” was supposed to be doing its rolling at Central Park from June through August of last year, but the exhibit was taken down a month early, over concerns that the welding had rendered the moving piece “structurally unsound and unsafe.” Now the Public Art Fund is suing the company hired to do the welding. Titon Builders of Lake Park, Florida was supposed to do the welding, but they subcontracted the work to Tru-Steel Corp. of Fort Pierce, Florida. The Public Art Fund is claiming that Titon’s contract obligated them to do the fabrication, not subcontract it. Jeffrey Klein, a lawyer for the Public Art Fund, said, “it’s sad that it had to be taken down because of shoddy workmanship.” Read the court decision
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Washington School District Sues Construction Company Over Water Pipe Damage

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
The Yakima Herald reported that “[t]he Toppenish School District is suing a local construction company over a breach of contract that allegedly led to defective water pipes at one of its elementary schools, according to a complaint filed with the Yakima County Superior Court earlier this week.” According to the complaint (as reported by the Yakima Herald), Toppenish officials alleged that the Huylar Construction Co. failed to install calcium silicate seals during the pipe installation. Furthermore, the complaint stated that last November, the school district discovered “’[e]xtensive corrosion and deterioration’ of the pipes.” Toppenish argued that failure to install the seals is a breach of contract. Toppenish is suing for about $120,000. The Yakima Herald stated that a Huylar representative “could not be reached for comment.” Read the court decision
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Entire Fairness or Business Judgment? It’s Anyone’s Guess

January 09, 2015 — Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico – White and Williams LLP
In lawsuits challenging the validity of business transactions and combinations, the most significant issue is often which standard of review the court applies: the defense-friendly “Business Judgment Rule” or the more stringent “Entire Fairness Standard.” The standard utilized by the court – or more often times the standard which the parties think the court will apply – can drive decisions on motion practice, settlement discussions, and resolution strategy. Under the Business Judgment Rule, directors are presumed to have acted in good faith and their decisions will only be questioned when they are shown to have engaged in self-dealing or fraud. However, if a “Controlling Shareholder” stands on both sides of the transaction, the court will often scrutinize the transaction under the more plaintiff-friendly “Entire Fairness Standard.” So, what constitutes a “Controlling Shareholder?” If the party in question owns more than 50% of a company’s equity, the answer is clear-cut. However, for cases involving stockholders who own less than 50% of a company’s equity and stand on both sides of the disputed transaction, the answer is not so simple. This uncertainty was highlighted in back-to-back decisions by the Delaware Chancery Court in November 2014. On November 25, 2014, the court granted the defendants’ motion to dismiss a derivative lawsuit alleging breach of fiduciary duty in In Re Sanchez Energy Derivative Litigation (“Sanchez”). Vice Chancellor Glasscock held that the complaint failed to plead facts sufficient to raise an inference that two directors with a collective 21.5% equity interest in the company were Controlling Shareholders. The very next day, in In Re Zhongpin Inc. Stockholders Litigation (“Zhongpin”), the Delaware Chancery Court denied the defendants’ motion to dismiss breach of fiduciary duty claims against an alleged “Controlling Shareholder” and members of the company’s board. In Zhongpin, Vice Chancellor Noble held that sufficient facts were plead to raise an inference that a CEO with a 17.5% equity was a “Controlling Shareholder.” Reprinted courtesy of White and Williams LLP attorneys Maurice Pesso, Greg M. Steinberg and Christopher J. Orrico Mr. Pesso may be contacted at pessom@whiteandwilliams.com Mr. Steinberg may be contacted at steinbergg@whiteandwilliams.com Mr. Orrico may be contacted at orricoc@whiteandwilliams.com Read the court decision
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New York Instructs Property Carriers to Advise Insureds on Business Interruption Coverage

April 13, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The New York Department of Financial Services (DFS) took the unusual step last week of instructing all property/casualty insurers to provide information on commercial property insurance and details on business interruption coverage in light of the COVID-19 outbreak. The notice is here. The notice recognizes that policyholders have urgent questions about the business interruption coverage under their policies. Insurers must explain to policyholders the benefits under their policies and the protections provided in connection with COVID-19. The explanation to policyholders is to include the following relevant information.

What type of commercial property insurance or otherwise related insurance policy does the insured hold?

Does the insured's policy provide "business interruption" coverage? If so, provide the "covered perils" under such policy. Please also indicate whether the policy contains a requirement for "physical damage or loss" and explain whether contamination related to a pandemic may constitute "physical damage or loss." Please describe what type of damage or loss is sufficient for coverage under the policy.

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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Congratulations to Haight Attorneys Selected to the 2023 Southern California Super Lawyers List

January 17, 2023 — Haight Brown & Bonesteel LLP
Haight attorneys have been selected to the 2023 Southern California Super Lawyers list. Congratulations to:

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Reprinted courtesy of Haight Brown & Bonesteel LLP

What You Need to Know About Notices of Completion, Cessation and Non-Responsibility

June 30, 2016 — Garret Murai – California Construction Law Blog
We talk a lot about contractors on the California Construction Law Blog. Owners? Not so much. So this one’s for you. Why are Notices of Completion, Cessation and Non-Responsibility Important to Owners? California recognizes three types of statutory notices on construction projects available to owners:

Notices of completion;
Notices of cessation; and
Notices of non-responsibility.

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Garret Murai, Wendel Rosen Black & Dean LLP

gmurai@wendel.com

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