FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

When “Substantially Similar” Means “Fundamentally Identical”: Delaware Court Enforces Related Claim Provision to Deny D&O Coverage for Securities Class Action

August 10, 2021 — Geoffrey B. Fehling, Lawrence J. Bracken II & Lorelie S. Masters - Hunton Andrews Kurth
A company faces two class action lawsuits—filed by different plaintiffs, complaining of different allegedly wrongful conduct, asserting different causes of action subject to different burdens of proof, and seeking different relief based on different time periods for the alleged harm. Those facts suggest the suits are not “fundamentally identical,” but that is what a Delaware Superior Court recently concluded in barring coverage for a policyholder seeking to recover for a suit the court deemed “related” to an earlier lawsuit first made outside the policy’s coverage period. First Solar Inc. v. National Union Fire Ins. Co. of Pittsburgh, Pa., No. N20C-10-156 MMJ CCLD (Del. Super. Ct. June 23, 2021). The decision, which is not on all fours with some of the authority upon which it relies, underscores the inherent unpredictability of “related” claim disputes and need for careful analysis of the policy language against the factual and legal bases of the underlying claims. Underlying Shareholder Class Actions and D&O Claims Shareholders of solar panel manufacturer First Solar sued the company and its directors and officers in a class action lawsuit (the “Smilovits Action”) for the class period April 2008 to February 2012. The Smilovits Action asserted federal securities violations arising from First Solar’s alleged misrepresentations about the company’s business strategies, product design, financial strength, and ability to offer solar electricity at comparable rates to conventional energy producers (i.e., achieving “grid parity”), artificially inflated stock price, insider trading, manipulation of solar power metrics, and violations of GAAP accounting standards. First Solar submitted a claim to its D&O insurer, National Union, which provided coverage for the Smilovits Action and exhausted the policy. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth, Lawrence J. Bracken II, Hunton Andrews Kurth and Lorelie S. Masters, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Bracken may be contacted at lbracken@HuntonAK.com Ms. Masters may be contacted at lmasters@HuntonAK.com Read the court decision
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Changes to Judicial Selection in Mexico Create a New Case for Contractual ADR Provisions

November 25, 2024 — Juan Pablo Sandoval - The Dispute Resolver
The Mexican Congress recently discussed and approved a Constitutional Amendment called the “Judiciary Amendment” which was ironically published in the Official Gazette on September 15, 2024, the day before Mexican Independence Day. With this Judiciary Amendment, the Mexican Congress determined that Federal Judges, Federal Magisters and the Ministers of the Supreme Court will now be elected through direct and popular election. Before the Judiciary Amendment, Federal Judges and Magisters used to have a judicial career; many of them started as law clerks and were promoted step by step until becoming Judge or Magister. Ministers of the Supreme Court were appointed by the Senate through an election of three candidates designated by the President. Read the court decision
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Reprinted courtesy of Juan Pablo Sandoval, COMAD, S.C.
Mr. Sandoval may be contacted at jpsandoval@comad.com.mx

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Homebuilding Held Back by Lack of Skilled Workers

June 28, 2013 — CDJ STAFF
Home construction in Michigan could surge by thirty-seven percent this year, if the workers are there to build these houses. Aaron Rigozzi, the owner of Semper Fi Construction, told the Detroit Free Press that at the height of the boom he had fourteen employees whose wages reached $25 an hour. Now his firm has filed for bankruptcy and has only three employees. The top wage is $16 an hour. He also has the problem of people whose skills are less than what they claim. “You can hire people and they say they can do this or that, but they really can’t.” The Home Builders Association of Michigan says that this is stretching out the time to complete a new house by months, and leading homeowners who are looking for a contractor stranded for weeks. In 2012, more home permits were taken out than in any year since 2008. Read the court decision
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Meet Orange County Bar Associations 2024 Leaders

April 08, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is proud to share that CEO/Founding Partner Nicole Whyte and Orange County Bar Association’s (“OCBA”) leaders are featured in the Orange County Lawyer (“OCL”) publication, Who’s Who In The OCBA, that was released earlier this month. To see this year’s 2024 board of directors, section leaders, committee chairs, task forces, and charitable fund board, please click here. Nicole Whyte provides individualized counseling and representation in all areas of Family Law. She has served on various OCBA legal committees and boards for over two decades and was elected to OCBA’s Board of Directors in 2024. She is committed to supporting the needs of the OCBA and its thriving and diverse OC legal community. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Lucky No. 7: Seventh Circuit Court of Appeals Issues Pro-Policyholder Decision Regarding Additional Insured Coverage for Upstream Parties

November 02, 2020 — Daniela Aguila - Saxe Doernberger & Vita
In Scottsdale Ins. Co. v. Columbia Ins. Group, Inc,1 the Seventh Circuit Court of Appeals recently held that a subcontractor’s insurer was obligated to defend and indemnify the project owner’s insurer for damages associated with the subcontractor's employee's personal injury lawsuit where the underlying complaint alleged negligence by the additional insureds. The case cements the notion that under Illinois law, one can significantly benefit from the facts presented in third party complaints as a basis for additional insured coverage. Rockwell Properties (“Rockwell”) was the project owner, along with Prairie Management & Development (“Prairie”), the general contractor, on a construction project in Chicago. Prairie subcontracted HVAC services to TDH Mechanical (“TDH”). When an employee of TDH Mechanical sustained serious injuries performing work at a construction site, a suit was lodged against Rockwell and Prairie in state court. The lawsuit did not bring any claims against TDH but instead alleged that both Rockwell and Prairie had negligently failed to supervise the subcontractors’ work on-site, thus contributing to the worker’s injuries. Read the court decision
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Reprinted courtesy of Daniela Aguila, Saxe Doernberger & Vita
Ms. Aguila may be contacted at dag@sdvlaw.com

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Los Angeles Warehousing Mecca Halts Expansion Just as Needs Soar

September 05, 2022 — Ngai Yeung & Augusta Saraiva - Bloomberg
Communities in the Inland Empire, the US’s logistics mecca east of Los Angeles, are suspending new warehousing projects to examine the impact from decades of pollution -- putting the industry under pressure when it’s needed most. This week, the city council for Pomona is set to vote on extending a temporary halt on industrial developments to study the environmental impact, while the nearby city of Norco will decide whether to establish a 45-day moratorium. The actions follow similar freezes by a handful of Southern California cities like Riverside, Colton, Chino and Redlands over the past several years. Meanwhile, a state-level bill -- which is a long-shot to pass in the legislature but gives a reading of the mood -- proposes banning large industrial construction within 1,000 feet of non-industrial areas such as schools, homes and playgrounds in Riverside and San Bernardino counties, an area that spans 27,000 square miles. Reprinted courtesy of Ngai Yeung, Bloomberg and Augusta Saraiva, Bloomberg Read the court decision
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Another Guilty Plea In Nevada Construction Defect Fraud Case

April 25, 2012 — CDJ STAFF

The eleventh defendant has entered a guilty plea in the ongoing federal investigation of construction defect fraud in the Las Vegas area. Mahin Quintero plead guilty to producing a false authentication feature, a misdemeanor. Ms. Quintero’s part in the scheme was to falsely authenticate signatures on loan documents for straw buyers. Ms. Quintero stated in court that she had been ordered to destroy her notary book three years ago. According to her plea bargain, the straw buyers did not appear in front of her when she notarized their signatures. As part of the scheme, the straw buyers would take control of homeowners associates, sending construction defect complaints and repairs to favored firms.

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Residential Construction Surges in Durham

October 30, 2013 — CDJ STAFF
Third quarter residential construction permits in Durham, North Carolina were up 72% over the third quarter of last year, for a total of 1,770 new residential units. There was a large increase in the value of the construction contracts as well, with construction contracts reaching $151.3 million, more than $42 million over the same period in 2012. Ted Conner of the Greater Durham Chamber of Commerce said that he didn’t “think we’re going to continue to see that frenetic, high level of activity, but it’s still very active.” One reason for increased residential construction is a lack of available apartment spaces, which is also sending rents up in the area. Although much of the new construction will be middle- to upper-end, the greater availability should help all renters. Read the court decision
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