Fairfield Connecticut Building Expert Directory

Biggest U.S. Gas Leak Followed Years of Problems, State Says

June 10, 2019 — Mark Chediak & Edvard Pettersson - Bloomberg
The worst natural gas leak in U.S. history, which broke out at a Sempra Energy storage field near Los Angeles almost four years ago, was caused by corrosion, according to a report commissioned by California regulators. The rupture of a 7-inch (18-centimeter) well casing at Sempra Energy’s Aliso Canyon storage complex was due to “microbial corrosion” brought on by contact with groundwater, an independent analysis conducted by Blade Energy Partners and commissioned by two state agencies found. The report also concluded there had been more than 60 leaks in the field dating back to the 1970s, and Sempra didn’t carry out detailed inspections after they occurred, the California Public Utilities Commission and Department of Conservation said in a joint statement. The company’s Southern California Gas lacked “any form of risk assessment” to manage the integrity of its wells and hadn’t established systematic practices to protect against corrosion and monitor well pressure, the agencies said. Reprinted courtesy of Mark Chediak, Bloomberg and Edvard Pettersson, Bloomberg Read the court decision
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Top 10 Insurance Cases of 2020

January 11, 2021 — Grace V. Hebbel, Andrew G. Heckler & Jeffrey J. Vita - Saxe Doernberger & Vita P.C.
COVID-19 business interruption coverage litigation may have stolen the show in 2020, but those cases should not eclipse other important insurance coverage cases decided throughout this past year. As the courts nationwide struggled with the insurance coverage implications of COVID-19 related business loss, other significant coverage decisions were overshadowed. Read on to learn about how computer glitches, biometric privacy, and a falling wheelbarrow have all played a role in\ shaping some of the most interesting and influential insurance coverage decisions of 2020, as well as get a sneak peek at the key coverage decisions looming in 2021. Enjoy! 1. Nash Street, LLC v. Main Street America Assurance Company, No. 20389, 2020 WL 5415325 (Conn. 2020) Do exclusions k(5) and k(6) absolve an insurer of its duty to defend its insured for allegations of faulty workmanship? Reprinted courtesy of Grace V. Hebbel, Saxe Doernberger & Vita P.C., Andrew G. Heckler, Saxe Doernberger & Vita P.C. and Jeffrey J. Vita, Saxe Doernberger & Vita P.C. Ms. Hebbel may be contacted at GHebbel@sdvlaw.com Mr. Heckler may be contacted at AHeckler@sdvlaw.com Mr. Vita may be contacted at JVita@sdvlaw.com Read the court decision
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The Requirement to Post Collateral Under General Agreement of Indemnity Is Real

May 16, 2022 — David Adelstein - Florida Construction Legal Updates
In prior postings, I have discussed the all-powerful General Agreement of Indemnity (click here and here). This is the document a bond-principal executes to obtain bonds (e.g., performance and payment bonds). Not only does the bond-principal execute this General Agreement of Indemnity, but typically, so do other indemnitors such as the company’s principals and their spouses, other related companies, etc. The objective is that the surety has financial comfort that if a claim is made against the bond, there are avenues where it will get reimbursed and indemnified for any cost it incurs, or payment it makes, relative to that claim against the bond. When a surety issues bonds, the objective is that all losses it incurs gets reimbursed because the bonds are NOT insurance policies. One of the powerful tools the surety can exercise in the General Agreement of Indemnity is to demand the bond-principal and other indemnitors to post collateral in an amount the surety deems sufficient to cover any losses it may incur. This is a right in any General Agreement of Indemnity I have seen and is a right the surety can rightfully exercise. A recent example is shown from the opinion in Philadelphia Indemnity Ins. Co. v. Quinco Electrical, Inc., 2022 WL 1230110 (M.D.Fla. 2022), which pertains to the surety’s motion for preliminary injunction. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Homeowner's Mold Claim Denied Due to Spoilation

April 20, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The trial court's issuance of summary judgment to the insurer for mold and water damage was upheld on appeal. Schwartz v. Encompass Indem. Co., 2016 Mich. App. LEXIS 551 (Mich. Ct. App. March 15, 2016). The contractor was demolishing a portion of the insured's home when he discovered water damage and what appeared to be mold. The contractor believed this damage was due to improper roof installation and leaks around the windows. Further demolition was done to water-damaged portions of the home. The insured filed a claim with Encompass for mold and "over-demolition." When Encompass's adjuster inspected the home, none of the alleged mold-affected material was present because it had been removed from the site by the contractor. The claims were denied. 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

Duty to Defend Construction Defect Case Triggered by Complaint's Allegations

August 20, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The subcontractor's insurer could not escape contributing to defense costs of its insured when coverage was possible based upon the underlying complaint's allegations. Seneca Ins. Co. v. James River Ins. Co., 2014 U.S. Dist. LEXIS 97156 (D. Ore. July 17, 2014). The underlying action alleged construction defects in a 60-unit complex located in Seaside, Oregon. S.D. Deacon Corp. was the general contractor and contracted with the owners association to reconstruct portions of the building, including the curtain wall. Deacon subcontracted with Superwall Design, LLP for work on the curtain wall renovation. At some point not specified in the underlying complaint, the Association notified Deacon of construction defects in the curtain wall renovation. Deacon investigated and concluded that the alleged property damage was the result of inadequate usage of materials, violations of state and local building codes, and violations of relevant industry standards relating to the work performed by Superwall. Deacon contended that the problems were caused by Superwall's faulty workmanship. 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 Case Alert: California Federal Court Allows Policy Stacking to Cover Continuous Injury

November 23, 2016 — William S. Bennett - Saxe Doernberger & Vita, P.C.
“Stacking” is a practice that is very favorable for policyholders, especially in environmental coverage cases involving extended pollution events. It allows a policyholder to combine the limits of multiple consecutive policies to cover continuous injury claims occurring over multiple policy periods. Without stacking, insurers can limit a policyholder’s recovery to a single policy limit. The Eastern District of California recently decided that a policyholder could stack the limits of six consecutive policies, where the occurrence was a continuous injury spanning all six policy years. Among other rulings, the court determined that the plain language of the policy under dispute did not prevent stacking. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

Withdrawal of an Admission in California May Shift Costs—Including Attorneys’ Fees—Incurred in Connection with the Withdrawal

January 24, 2018 — Tony Carucci – Real Estate Litigation Blog
Under California Code of Civil Procedure section 2033.300, a court may permit a party to withdraw an admission made in response to a request for admission upon noticed motion. The court may only do so, however, “if it determines that the admission was the result of mistake, inadvertence, or excusable neglect, and that the party who obtained the admission will not be substantially prejudiced in maintaining that party’s action or defense on the merits.” Cal. Code Civ. Proc. § 2033.300(b). The court may also “impose conditions on the granting of the motion that are just, including, but not limited to . . . (2) An order that the costs of any additional discovery be borne in whole or in part by the party withdrawing or amending the admission.” Cal. Code Civ. Proc. § 2033.300(c). Read the court decision
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Reprinted courtesy of Tony Carucci, Snell & Wilmer
Mr. Carucci may be contacted at acarucci@swlaw.com

How to Lose Your Contractor’s License in 90 Days (or Less): California and Louisiana

November 15, 2021 — Rafael Boza - Gravel2Gavel Construction & Real Estate Law Blog
Having your Contractor’s License up and running to perform work when needed, where needed, is an indispensable compliance matter that contractors face every year. However, this indispensable process may also be cumbersome and time consuming. Knowing the regulations applicable to your business in each state and what to do, how to do it, and when to do it, is of critical importance to maintain compliance and your ability to work in different states. In this post we will do a high-level review of reporting obligations in California and Louisiana. California’s Contractors’ State License Law, Bus. & Prof. Code §§ 7000 et seq., requires licensees to report various information to the Contractors State License Board (CSLB) “within 90 days” of the effective date or event. Louisiana State Licensing Laws and Regulations, R.S. §§ 37:24 et seq. and La. Admin. Code tit. 46, XXIX, §§ 101 et seq. also require similar reporting to the Louisiana State Licensing Board for Contractors (LSLBC), sometimes “within 15 days” of the event. Read the court decision
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Reprinted courtesy of Rafael Boza, Pillsbury
Mr. Boza may be contacted at rafael.boza@pillsburylaw.com

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