Fairfield Connecticut Building Expert Directory

Potential Coverage Issues Implicated by the Champlain Towers Collapse

March 21, 2022 — Theresa A. Guertin & Holly A. Rice - Saxe Doernberger & Vita, P.C.
In June 24, 2021, the Champlain Towers South in Surfside, Florida collapsed, killing nearly 100 individuals (the “Collapse”). As experts uncover more information regarding the cause of the Collapse, those individuals who have filed lawsuits as well as the potentially culpable defendants are looking to insurers for coverage of their bodily injury and property damage claims. Contractors, engineers, and other professionals are or anticipate being sued for their roles in the Collapse. Those professionals have professional liability policies and/or director and officer liability policies. Likewise, the condominium association’s commercial general liability (CGL) policies and its business property policy may have a duty to defend and/or indemnify their insureds as well. Finally, individual unit owners/renters may look to their homeowners’ insurance, auto insurance, health insurance, and/or life insurance policies for coverage.1 The potential breadth of insurance coverage issues raised by the Collapse is beyond the scope of this article. The article will consider some concerns that could impact insurance coverage under a standard CGL policy in the case of a building collapse. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and Holly A. Rice, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at TGuertin@sdvlaw.com Ms. Rice may be contacted at HRice@sdvlaw.com Read the court decision
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Does the Miller Act Trump Subcontract Dispute Provisions?

May 16, 2018 — Christopher M. Horton - Smith Currie
All general contractors performing public building or public works contracts with the federal government must be familiar with the Miller Act. It is a requirement for doing business with the federal government. Pursuant to the Miller Act, a general contractor entering into a public building or public works contract with the federal government must furnish a payment bond in an amount equal to the contract price, unless the contracting officer determines that it is impractical to obtain a bond in that amount and specifies an alternative bond amount. Miller Act payment bonds guarantee payment to certain subcontractors and suppliers supplying labor and materials to contractors or subcontractors engaged in the construction. As a result, subcontractors have an avenue of relief should they not get paid for work done on the project. Specifically, subcontractors have a right to bring an action against the surety within 90-days after the date on which the person did or performed the last labor or furnished or supplied the last of material for which the claim is made. Any such action must be brought no later than one year after the date on which the person did or performed the last labor or furnished or supplied the last of material. 40 United States Code § 3133. Read the court decision
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Reprinted courtesy of Christopher M. Horton, Smith Currie
Mr. Horton may be contacted at cmhorton@smithcurrie.com

MDL Panel Grants Consolidation for One Group of COVID-19 Claims

November 02, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Previously denying consolidation of all COVID-19 business interruption claims [post here], the Judicial Panel on Multidistrict Litigation allowed consolidation of one group of cases against Society Insurance Company while denying consolidation of four other groups of cases. In re Soc'y Ins. Co. COVID-19 Bus. Interruption Protection Ins. Litigation, 2020 U.S. Dist. LEXIS 183678 (J.P.M.L. Oct. 2, 2020). Claims against Society encompassed 34 actions filed in Illinois, Indiana, Iowa, Minnesota, Wisconsin, and Tennessee. The court found that centralization of the Society actions would serve the convenience of the parties and witnesses and further the just and efficient conduct of the litigation. The actions shared common factual allegations that Society wrongfully denied policy holders' claims for business interruption coverage. Plaintiffs contended that Society preemptively decided to deny their claims. 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

Five New Laws to Know Before They Take Effect On Jan. 1, 2022

December 27, 2021 — Amy R. Patton & Blake A. Dillion - Payne & Fears
Gov. Gavin Newsom closed California’s 2020-2021 Legislative Session with a flurry of bill signings, many of which created and/or updated employment-related laws. A few of these bills were “emergency bills” which became effective immediately (such as the COVID-related right to rehire and sick pay laws), while others do not become effective until Jan. 1, 2022. Employers should ensure that their policies, procedures, and systems comply with these new and updated laws. California’s Regulation of Quotas in Warehouse Distribution Centers On Sept. 22, 2021, Governor Newsom signed AB 701, aimed at regulating quotas in warehouse distribution centers, into law. Effective Jan. 1, 2022, employers with 100 or more employees at a single warehouse distribution center or 1,000 or more employees at one or more warehouse distribution centers in the state must provide to each nonexempt employee, upon hire, or by Jan. 31, 2022, a written description of each quota to which the employee is subject. This bill also sets certain standards for what constitutes an enforceable quota and for the employer’s obligation to respond to information requests. Employers should carefully review their quota systems to first determine if the quotas are necessary, and if so, ensure compliance with this new law by preparing clear written descriptions for each and every quota. A more in-depth discussion of the provisions of the AB 701 can be found here. Reprinted courtesy of Amy R. Patton, Payne & Fears and Blake A. Dillion, Payne & Fears Ms. Patton may be contacted at arp@paynefears.com Mr. Dillion may be contacted at bad@paynefears.com Read the court decision
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Contractor Changes Contract After Signed, Then Sues Older Woman for Breaking It

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
Channel 13 Who TV reported, in Winterset, Iowa, Mary Gregory allegedly signed an estimate for hail damage repair to her home, and was later told by the contractor that it was a contract. When a crew showed up to her home to perform the work, she turned them away. Then, Gregory received a letter from an attorney demanding eight thousand dollars for breach of contract. It turns out that the contractor altered the estimate Gregory signed and submitted it to the insurance company. According to Who TV, the altered estimate “contained work that Gregory says she didn’t authorize and a price tag of $32,134.” Jim Nelle, the contractor, admitted that he added to the contract after it was signed. He claims he was only trying to help her. Read the court decision
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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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Construction Defects Claims Can Be Limited by Contract Says Washington Court

February 11, 2013 — CDJ STAFF
The firm Lane Powell has issued a construction law update on the recent Washington Supreme Court decision in Washington State Major League Baseball Public Facility District v. The Baseball Club of Seattle, LP. In the underlying construction defect claim, the Public Facility District found defects in the structural steel at Seattle’s Safeco Field. The contractor, Huber, Hunt & Nichols-Kiewit Construction Company claimed that construction claims could not be made, as it was barred by the statue of repose. Washington State has a six-year limitation on its statute of repose, however, the court noted that the contract contained a clause that, as noted by Lane Powell, “any alleged causes of action automatically accrue at substantial contemplation,” instead of within six years of substantial completion. The court concluded that the statue of repose could be rendered inoperative by contract. Further, the court found that these contract clauses pertained to subcontractors as well. Nevertheless, as PFD is a subdivision of the state, the court found that no statue of limitations could be appled. Read the court decision
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School Board Settles Construction Defect Suit

October 22, 2013 — CDJ STAFF
The Lafayette Parish School Board has settled a claim that water intrusion was caused by faulty design and construction. The board initially sued the contractor and the design firms, but under Louisiana law, the suit came too late to sue the contractor, so Ratcliff Construction was dropped from the suit. The two design firms, Corne-Lemaire Group, which did the architectural design for the school, and Beaullieu & Associates, which did the engineering, also sought to be removed from the suit due to the statute of limitations, but an appeals court concluded that the law at the time of construction did not allow this. Details of the settlement were not released. Tim Basden, the attorney for the school board acknowledged that “the principal problems were related to construction, but the lawsuit wasn’t filed timely.” According to Basden neither design firm conceded “liability or malpractice of any kind.” Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES