Fairfield Connecticut Building Expert Directory

Sometimes it Depends on “Whose” Hand is in the Cookie Jar

January 21, 2015 — Roger Hughes – California Construction Law Blog
In a lengthy and somewhat detailed decision, the California Court of Appeal for First District, in Pittsburg Unified School District v. S.J. Amoroso Construction Company, Inc., Case No. A138825 (December 22, 2014), held that a public entity could unilaterally withdraw retention funds during a pending legal dispute without the court first finding that the contractor had defaulted on the public works project. Background In 2008, general contractor S.J. Amoroso Construction Company, Inc. (“S.J. Amoroso”) entered into a construction contract with the Pittsburg Unified School District (“District”) for the reconstruction and modernization of a high school in Pittsburg, California. Read the court decision
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Reprinted courtesy of Roger Hughes, Wendel Rosen Black & Dean LLP
Mr. Hughes may be contacted at rhughes@wendel.com

Bank of America’s Countrywide Ordered to Pay $1.3 Billion

July 30, 2014 — Patricia Hurtado – Bloomberg
Bank of America Corp.’s Countrywide unit was ordered to pay $1.3 billion in penalties for defective mortgage loans it sold to Fannie Mae (FNMA) and Freddie Mac in the run-up to the 2008 financial crisis, a little more than half of what the U.S. had requested. U.S. District Judge Jed Rakoff in Manhattan issued the civil penalty against the Charlotte, North Carolina-based bank today in the first mortgage-fraud case brought by the federal government to go to trial. Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable in October for selling thousands of bad loans to the two government-sponsored enterprises. Mairone was ordered today to pay $1 million. Read the court decision
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Reprinted courtesy of Patricia Hurtado, Bloomberg
Ms. Hurtado may be contacted at pathurtado@bloomberg.net

No Coverage for Faulty Workmanship Causing Property Damage to Insured's Product Only

October 07, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Nebraska court found there was no coverage for rebar that did not meet specifications and did not cause property damage to other portions of the construction project. Drake-Williams Steel, Inc. v. Cont'l Cas. Co., 2016 Neb. LEXIS 116 (Neb. Aug. 5, 2016). The general contractor was hired by the city to build an arena. Drake-Williams Steel, Inc. (DWS) was hired to supply rebar for the arena. The rebar was improperly bent when it was fabricated by DWS and did not conform to the terms of the contract. The rebar was incorporated into three components of the arena: the columns, the grade beams, and the pile caps. The pile caps were made of concrete with reinforcing rebar and were installed below ground level on top of the concrete piles that extended to the bedrock. The grade beams were also made of concrete and rebar. The beams formed an oval around the arena and connected different pile caps together and were also installed below ground level. No corrections were made to the grade beams. 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

Flood Sublimits Do Not Apply to Loss Caused by Named Windstorm

May 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Jersey Superior Court considered whether recovery for storm surge was limited by the policy's sublimit for loss caused by flood. Public Serv. Enter. Group, Inc. v. Ace Am. Ins. Co., 2015 N. J. Super. Unpub. LEXIS 620 (N.J. Super. Ct. Law Div. March 23, 2015). Storm surge from Superstorm Sandy inundated and damaged Public Service Enterprise Group, Inc.'s (PSEG) property, including eight large generating stations. PSEG had coverage of $1 billion under policies with defendant carriers. There was no sublimit in the policies for "named windstorms," other than named windstorms in Florida. A $250 million sublimit appeared in the policies for losses caused by "flood." The carriers paid only a portion of PSEG's claim. The total damages exceeded $500 million. 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

New Jersey Construction Company Owner and Employees Arrested for Fraud

December 04, 2013 — CDJ STAFF
Frank Chimento, Jr., the owner of Chimento Construction of Parsippany, New Jersey, and three of his employees, Joseph Carsillo, Frank Chimento III, and Carl J. Corso, were arrested by federal agents. The elder Chimento is accused of falsifying his own income taxes, as well as failing to collect and turn over federal and state payroll taxes. He is additionally charged with falsifying union benefit fund contributions. The three employees are also accused of filing false income tax statements and also of attempting to defraud the state of New Jersey of unemployment compensation benefits. An additional unnamed conspirator made transactions at multiple financial institutions in order to pay employees directly in cash. One of the three employees, Mr. Carsillo, worked for the company and received cash payments while maintaining to the New Jersey Department of Labor and Workforce Development that he was unemployed. Mr. Carsillo was receiving $526 per week from the NJDOL-WD in unemployment benefits, starting in 2009. From 2009 through 2011, Mr. Carsillo received $19,988 in unemployment benefits and an additional $351,788 in wages from Chimento. Read the court decision
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Decades of WCC Seminar at the Disneyland Resort

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
One of the many perks of attending the West Coast Casualty Construction Defect Seminar each year is its location at the Disneyland Hotel. What better excuse to take an afternoon or day or two to visit the happiest place on Earth? Prior to 2001, attendees only had the Disneyland Park to explore. But the beginning of 2001 brought the addition of the California Adventure Theme Park and Downtown Disney. Now when you want a break you can take a stroll through Downtown Disney and shop, eat, or watch some street performers. While California Adventure still has plenty for children to do, it also caters to the twenty-one-and-over-but-still-child-at heart with wine tasting and craft beers available at the park. Disneyland remains a fixture for nostalgia with the Sleeping Beauty Castle, but has updated itself with its addition of Star Wars and Marvel attractions. West Coast Casualty has special Disneyland ticket rates for attendees. Please see their invitation for more details. If you’re interested in one of Disneyland Resort’s sit-down restaurants, a reservation is highly desirable. You may make your reservation online or call Disney Dining at (714) 781-DINE. Staying at the Disneyland Resort? Disney provides their hotel guests with preferred access reservations (call Disney Dining for more information). If you’re looking for a fine dining experience, you’ll enjoy Carthay Circle Restaurant at California Adventure, Catal Restaurant at Downtown Disney, Napa Rose at the Grand Californian Hotel, or Steakhouse 55 at the Disneyland Hotel. If you’re a sports fan, check out ESPN Zone in Downtown Disney. For a one-of-a-kind Disney experience, have lunch or dinner at the Blue Bayou at Disneyland, where the dining room is located within the Pirates of the Caribbean ride. You may also want to check Disneyland Resort’s Entertainment schedule. For a live musical show (included in the cost of admission to California Adventure Park), check out Frozen – Live at the Hyperion. For an illuminating experience, you’ll want to stay for the Paint the Night Parade at the California Adventure Park, which features one million brilliant lights and many of your favorite Disney characters. If you’re a Pixar lover, you won’t want to miss Disneyland Park’s Together Forever – A Pixar Nighttime Spectacular. It’s a fireworks display like only Disney can create, including dazzling projections, pyrotechnics and music from the movies. If you wish to skip the crowds and just relax, then the Madara Spa at Disney’s Grand Californian Hotel may be your choice. The Madara Spa theme is “the mystery of the East meeting the science of the West with boundaries ceasing to exist.” Read the court decision
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Without Reservations: Fourth Circuit Affirms That Vague Reservation of Rights Waived Insurers’ Coverage Arguments

January 09, 2023 — Lara Degenhart Cassidy & Matthew J. Revis - Hunton Insurance Recovery Blog
The Fourth Circuit recently affirmed insurance coverage for a South Carolina policyholder based on the “axiomatic principle” that an insurer which fails to fully and fairly articulate its potential coverage defenses in a reservation of rights letter loses the right to contest coverage on those grounds. Stoneledge at Lake Keowee Owner’s Assoc. v. Cincinnati Ins. Co., No. 19-2009, 2022 WL 17592121 (4th Cir. 2022) (quoting Harleysville Group Insurance v. Heritage Communities, Inc., 803 S.E.2d 288 (S.C. 2017)). More particularly, in Stoneledge, the Fourth Circuit affirmed per curiam a South Carolina District Court’s grant of summary judgment in favor of a homeowners association that had successfully sued its general contractors for construction defects and was seeking to recover the damages owed from the contractors’ insurers. The Fourth Circuit agreed that the insurers’ vague reservation of rights letters failed to reserve the defenses on which the insurers purported to deny coverage. The question before the court in Stoneledge was whether the two insurers that had each agreed to defend their respective general-contractor insureds in the homeowner association’s underlying litigation had sufficiently informed their policyholders of their coverage positions. Specifically, the court considered whether the insurers provided notice of their intention to challenge coverage on specific bases and explained why those bases applied in their respective reservation of rights letters. Both of the insurers’ letters followed the typical approach of identifying various policy provisions and exclusions and outlining the general mechanics of those provisions, but they fell short of applying the provisions or exclusions to the facts in the case at hand. Further, the letters stated that the insurers would reevaluate how the provisions applied as the underlying case progressed. One of the insurer’s letters expressed doubt as to coverage but did not offer any analysis on the reasons for the prospective coverage denial. Reprinted courtesy of Lara Degenhart Cassidy, Hunton Andrews Kurth and Matthew J. Revis, Hunton Andrews Kurth Ms. Cassidy may be contacted at lcassidy@HuntonAK.com Mr. Revis may be contacted at mrevis@HuntonAK.com Read the court decision
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Florida Court of Appeals Rejects Insurer’s Attempt to Intervene in Underlying Lawsuit to Submit Special Interrogatories

October 09, 2018 — Jeremy Macklin - TLSS Insurance Law Blog
On August 10, 2018, the Florida Court of Appeals for the Second District upheld a trial court’s dismissal of an insurance company’s intervention in a tort lawsuit brought against its insured for the purposes of submitting special interrogatories and verdict forms. In Houston Specialty Ins. Co. v. Vaughn, 2018 Fla. App. LEXIS 11197, 2018 WL 3795785 (Fla. 2d DCA Aug. 10, 2018), the insured, All Florida Weatherproofing and Construction, Inc. (“All Florida”) provided pressure washing, roof coating, and other roof-related services. Houston Specialty issued a general liability policy to All Florida. In 2012, a worker fell off a roof while applying protective coating on behalf of All Florida. The worker and his family sued All Florida in connection with the worker’s injuries. Read the court decision
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Reprinted courtesy of Jeremy Macklin, Traub Lieberman Straus & Shrewsberry LLP
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES