Fairfield Connecticut Building Expert Directory

Coverage for Construction Defects Barred by Business Risk Exclusions

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Although the court determined there was an occurrence, coverage was excluded by the business risk exclusions. See Cont’l W. Ins. Co. v. Shay Constr. Co., 2011 U.S. Dist. LEXIS 82839 (D. Colo. July 28, 2011).

White was the general contractor on the project. White had three subcontracts with Shay to provide framing, siding, and related work on the project. Shay was insured under a CGL policy issued by Continental Western.

Two of Shay’s subcontractors furnished materials, labor and equipment to Shay. These subcontractors filed suit in state court alleging they had not been compensated for the work and materials. White and Shay were named as defendants. White cross claimed against Shay, alleging Shay had breached its obligations under the subcontracts. Several allegations sounded in contract. Other allegations, however, contended Shay had performed defective work and had damaged the work of other trades in correcting deficiencies in its own performance.

Shay sought coverage under Continental Western’s policy. Continental Western filed suit for a declaratory judgment and moved 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 Has Duty to Defend Additional Insured in Construction Defect Case

January 07, 2015 — Tred R. Eyerly- Insurance Law Hawaii
The court denied the insurer's motion for summary judgment, holding that the insurer had a duty to defend the additional insured against claims for construction defects. Centex Homes v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 164472 (C.D. Cal. Nov. 24, 2014). Centex contracted with Gateway Concrete, Inc. to install concrete foundations for a housing development. Gateway was required to purchase insurance with an endorsement naming Centex as an additional insured. Gateway obtained the policy from Lexington. 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

Mitigating the Consequences of Labor Unrest on Construction Projects

February 14, 2023 — Cameron Lukas, Alan Winkler & Gregory Begg - ConsensusDocs
Until this past year, we have enjoyed an era of relative labor stability. It’s true, however, that labor unrest frequently coincides with inflationary pressure on prices, something that we are currently experiencing. The recent nationwide rail workers strike was averted only through the extraordinary intervention of the federal government. More recently, thousands of academic workers in the University of California system went on strike. Underscoring this development was a November 2022 New York Times article reporting that polls showed the highest level of support for organized labor since the 1960s. The same article also quoted a professor of labor relations warning that the current economy presents a high potential for strikes. This recalls the sixties and seventies when increased costs due to inflation led to a multitude of strikes. The construction industry has been historically strike-prone with approximately 22% of all strikes during the 1960s involving construction projects, contrasted with the fact that construction workers themselves accounted for only roughly 5% of the nation’s nonagricultural labor force. Incredibly, in 1969 alone, a record number of nearly 1,000 construction strikes occurred nationwide with 20 million worker days lost, more than five times the lost working time of the rest of the economy.[1] Reprinted courtesy of Cameron Lukas, Peckar & Abramson, P.C, Alan Winkler, Peckar & Abramson, P.C and Gregory Begg, Peckar & Abramson, P.C Mr. Lukas may be contacted at clukas@pecklaw.com Mr. Winkler may be contacted at awinkler@pecklaw.com Mr. Begg may be contacted at gbegg@pecklaw.com Read the court decision
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“Source of Duty,” Tort, and Contract, Oh My!

September 06, 2023 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I have discussed the general rule in Virginia that tort and contract do not mix. I have also discussed a few narrow exceptions. A Virginia Supreme Court case from October of 2019 lays out both sides of this issue in one glorious opinion. In Tingler v. Graystone Homes, Inc., a summary of the facts and lawsuit(s) are as follows: Water leaks developed after the home was built. Graystone’s post-construction efforts to repair the leaks and remediate mold were unsuccessful. The Tinglers and their children abandoned the home after developing mold-related medical problems. The Tinglers and their children sued Graystone in tort for personal injury, property damage, and economic loss. In other litigation that will not be discussed in this post, but that is described in the opinion linked above, Belle Meade sued Graystone in contract for property damage and economic losses. George and Crystal Tingler filed a separate complaint alleging the same contract claims. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction Lien Waiver Provisions Contractors Should Be Using

January 06, 2020 — Jason Lambert - Construction Executive
It is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin. Additional Releases A typical lien release is going to release any liens and right to claim liens on the subject property. But a lien waiver can also include releases of any claims against surety bonds, other statutory rights or claims, and at its broadest, claims against the paying party. One example of a provision that could help accomplish this is a release of “any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights.” Broad release language can also be used to effectively preclude any claims arising prior to the date of the release. Payment Representations and Warranties A typical lien release has no representations or warranties about payment to subcontractors or material suppliers of a lower tier. But contractors can include language requiring the company receiving payment to represent and warrant that all subcontractors of a lower tier have been paid or will be paid within a certain timeframe using the funds provided and that these are material representations and inducements into providing payment. On a related note, if the contract requires subcontractors to provide lien releases from lower tier subcontractors in addition to their own release when seeking payment, contractors can require the sub-subcontractor releases to include representations that they have been paid by the subcontractor to try and tie up payment loose ends all around. Reprinted courtesy of Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Lambert may be contacted at jason.lambert@nelsonmullins.com

Insurer's Judgment on the Pleadings Based Upon Expected Injury Exclusion Reversed

October 30, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court reversed the trial court's granting of a judgment on the pleadings based upon the expected injury exclusion in a homeowner's policy. Allstate Indemn. Co. v. Contreras, 2018 Ill. App. LEXIS 170964 (Ill. Ct. App. July 20, 2018). Alejandra Contreras owned Jasmine's Day Care. Her husband, Adan Contreras, was not an employee of the Day Care. Alejandra and Adan had a homeowner's policy which provided day care liability coverage through an endorsement. 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

Former Trump Atlantic City Casino Set for February Implosion

December 29, 2020 — Stephanie Loder - Engineering News-Record
The 39-story main tower of the former Trump Plaza hotel-casino on the Atlantic City, N.J., boardwalk, sold to investor Carl Icahn in 2016, will be imploded in February by a Philadelphia general contractor already in the process of dismantling the former showplace of President Donald Trump's real estate holdings. Reprinted courtesy of Stephanie Loder, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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40 Year Anniversary – Congratulations Ed Doernberger

November 23, 2016 — Tracy Alan Saxe - Saxe Doernberger & Vita, P.C.
Forty years ago, on the Big Island of Hawaii, Edwin L. Doernberger was sworn in as an attorney. Fifteen years ago, Ed rejoined two former partners to help build an exciting new boutique insurance policyholder practice. Today, Saxe Doernberger & Vita is pleased to celebrate the 40th anniversary of its most distinguished partner. “Ed’s energy and enthusiasm are undiminished,” said co-founder and Managing Partner, Tracy Alan Saxe. “He’s still one of the firm’s most active litigators.” Ed has extensive appellate experience, having argued before the Connecticut and Hawaii Supreme and Appellate Courts, New York Appellate Courts, and the Second and Ninth Circuits. Read the court decision
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Reprinted courtesy of Tracy Alan Saxe, Saxe Doernberger & Vita, P.C.
Mr. Saxe may be contacted at tas@sdvlaw.com

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