Fairfield Connecticut Building Expert Directory

Is There Direct Physical Loss Under A Property Policy When COVID-19 is Present?

April 06, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Most property policies provide coverage for property damage only when there is "direct physical loss" to covered property. Early indications are that COVID-19 remains on surfaces. The duration can last from a few hours to three weeks, depending on the type of surface material. If an employee is infected and the store or restaurant must closed because the virus may rest on surfaces within the building, is there direct physical loss, even though the building structure itself is unharmed? To answer this question, cases from jurisdictions outside Hawaii may provide guidance. In a case from Louisiana, the homeowner had to move out of her home when excessive levels of organic lead were discovered in the kitchen, living room, master bedroom, and attic. Widder v. La. Citizens Prop. Ins. Corp., 82 So. 3d 294 (La. Ct. App. 2011). The insurer denied coverage because there was no direct physical loss. The trial court agreed; since the home was still intact, no direct physical loss had occurred, so there was no coverage under the policy. The appellate court reversed. It compared the presence of inorganic lead in the home to cases that found a direct physical loss from the existence of Chinese drywall, from which gaseous fumes were released, rendering the home unusable or uninhabitable. Physical damage was not necessary. What if smoke from a nearby wildfire fills an outdoor theater, forcing cancellation of performances and loss of business income? This was the situation in Oregon Shakespeare Festival Ass'n v. Great Am. Inc. Co., 2016 U.S. DIst. LEXIS 74450 (D. Ore. Jun 7, 2016). Wildfires in the area caused smoke, soot, and ash to accumulate on the surface of seats and concrete ground of the open-air theater. The air quality was poor, but no federal, state or local agency ordered cancellation of the performances. Further, the theater did not suffer any permanent or structural damage to its property. The insurer denied coverage, contending that the loss or damage must be structural to the building itself. After all, the smoke in the air at the theater did not require any repairs to the structure of the property. The court disagreed. The theater sustained "physical loss or damage to property" when the wildfire smoke infiltrated the theater and rendered it unusable for its intended purpose. The decision in Oregon Shakespeare Festival was eventually vacated by a joint stipulation of the parties. Oregon Shakespeare Festival Ass'n v. Great Am. Ins.Co., 2017 U.S. Dist. LEXIS 33208 (D. Ore. March 6, 2017), but the reasoning is still sound. 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

Planes, Trains and Prevailing Wages. Ok, No Planes, But Trains and Prevailing Wages Yes

October 25, 2021 — Garret Murai - California Construction Law Blog
The California Supreme Court doesn’t often delve into construction-related issues, but this year we’ve got two cases, both related to the payment of prevailing wages on California public works projects. The first, Mendoza v. Fonseca McElroy Grinding Co., Inc. (2021) 11 Cal.5th 1118 which we discussed in our last blog post, concerned whether mobilization work qualifies as a “public work” and in turn requires the payment of prevailing wages. On the same day that the Supreme Court issued its decision in Mendoza, it issued a decision in Busker v. Wabtec Corporation, et al. , Case No. S251135 (August 16, 2021). This is the equivalent of being struck by lightning twice. In Busker, the California Supreme Court considered whether on a public transportation project “field work” (e.g., building and outfitting radio towers on land adjacent to train tracks) and “onboard work” (e.g., installing electronic components on train cars and locomotives”) requires the payment of prevailing wage. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Jinx: Third Circuit Rules in Favor of Teamsters in Withdrawal Case

July 28, 2018 — Wally Zimolong - Supplemental Conditions
Bad omen. Last week, I wrote about a Appeals Court decision that affirmed a contractor’s escape from an over $600,000 withdrawal liability assessment from the Laborers Union. The next day the Third Circuit (which covers PA, NJ, and DE) handed down a decision affirming a federal court’s decision to assess withdraw liability. This one shows the dark side of not reading and understanding your CBA. The belligerents in the litigation were, Penn Jersey, a construction material supplier, and Teamsters Local 676. Their collective bargaining agreement contained a clause purportedly covering withdrawal liability. Specifically, the clause stated “should the Employer withdraw from the Agreement in the future, there will be no withdrawal liability. The CBA expired and Penn Jersey did not renew its agreement with the Teamsters. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Construction Defects Checklist

July 18, 2018 — Bremer Whyte Brown & O’Meara
Construction defects have existed since humans first began building structures, and will continue to be an occurrence into the future. For builder developers, contractors, and subcontractors, the specter of construction defects is a constant worry. Construction defect litigation is commonplace and can occur years after the construction project has been completed. This opens up an ongoing channel of risk and liability for construction contractors and project managers that are at risk of litigation far after they have completed a project. In this article, we’ll provide a helpful construction defects checklist that outlines the key avenues of risk and areas where construction defects litigation is most often focused. This checklist can help project managers, contractors, and subcontractors anticipate areas of their projects that may need extra attention or focus in order to ensure that they adhere to relevant local and state construction ordinances. Gaining a greater understanding of what construction defects are can provide insight into how construction litigation can prove beneficial for structure owners or contractors who received substandard work. Many clients may not understand that they have an avenue to seek redress in cases where faulty workmanship may have resulted in economic damages or safety concerns in their home, building, or another construction project. Understanding the scope of what a construction defect is, and the areas that are most commonly litigated is helpful to understand when construction defect litigation is a viable option to pursue redress. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O’Meara

Newmeyer & Dillion Welcomes Three Associates to Newport Beach Office

January 26, 2017 — Newmeyer & Dillion LLP
NEWPORT BEACH, Calif. – JANUARY 24, 2017 – Enjoying rapid expansion in many primary practice areas, Newmeyer & Dillion LLP is pleased to welcome new associates Jenny Guzman and Jason Moberly Caruso, and welcomes back Lily (Toubi) Razai to the Newport Beach office. The addition of these three associates fortifies the firm’s commitment to provide unparalleled service to our clients. Firm Managing Partner, Jeff Dennis, explained that each hire addresses the immediate and long-term needs of our clients, and firm's desire for strategic growth. "We always remain focused on what will allow us to better represent our clients, not just now but far into the future. We are excited to bring these three talented lawyers aboard as we continue to expand our capabilities across practice areas.” Guzman, Caruso and Razai each practice business and real estate litigation, with Razai’s practice including land use and eminent domain matters. Caruso also practices construction law and Guzman's practice also focuses on business and real estate transactions. Each attorney has unique strengths that continue to diversify the firm’s approach to their clients. In addition to serving clients in state and federal courts, Razai has extensive experience in alternative dispute resolution proceedings, and has served as a mediator in state courts. Awarded Super Lawyers 2016 Rising Star, Caruso utilizes his extensive judicial experience to argue on behalf of his clients at various levels from arbitration to the Ninth Circuit Court of Appeals. Guzman draws on her past experience in private equity and venture capital to protect businesses and help them achieve their full potential. These three associates, along with their diverse experience and cohesive strengths, further reinforce N&D’s foundation for continued growth and excellence. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com. Read the court decision
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Construction Spending Highest Since April 2009

October 25, 2013 — CDJ STAFF
The Commerce Department has announced that construction spending has increased by 0.6 percent, but that modest gain puts it at the highest it has been in four and a half years. The last time construction spending was this high was April 2009. The rise in construction spending is due to increases in both public and private construction project. Public construction was up, despite a decrease in spending by the federal government. Private residential construction is at a five-year high. Read the court decision
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New York Court Holds Insurer Can Recover Before Insured Is Made Whole

October 24, 2023 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the defendant, and discontinue the lawsuit, while the carrier’s insured still had pending claims with the carrier and claims for uninsured losses against the defendant. The court held that the carrier’s claims for the amount paid are divisible and independent of the insured’s claims and that the carrier’s settlement did not affect the insured’s right to sue for any unreimbursed losses. The court’s decision reminds us that, in New York, a carrier can resolve its subrogation claim before the insured is made whole. In June 2018, a water loss occurred in an apartment owned by Malik Graves-Pryor (Graves-Pryor). Graves-Pryor reported a claim to his property insurance carrier, State Farm Fire & Casualty Company (Carrier). Investigation into the water loss revealed that the water originated from failed plumbing pipes in another apartment unit owned by Taku Tamagawa (Tamagawa). Carrier paid its insured over $600,000 for repairs. In May 2021, Carrier filed a subrogation lawsuit against Tamagawa, alleging improper maintenance of the plumbing pipes. 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

Preparing For the Worst with Smart Books & Records

November 07, 2012 — CDJ STAFF
Contractors are often too caught up in keeping the wheel of business churning to recognize deficiencies in how their records are managed. Working hard and working often tend to leave little time for consideration of your documents. But all too often I see the unthinkable, a contractor gets into trouble and has to call on its surety for help. At that point, you might finally get your first dose of reality about your records – and it can cost you. Read the court decision
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC.
Mr. Reiser can be contacted at info@reiserlegal.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES