FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Rihanna Gained an Edge in Construction Defect Case

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
In depositions taken last week, the former owner of Rihanna’s “dream home” in Los Angeles, California, alleged “that he’d told brokers Prudential California Realty of the house’s issues,” according to Inquisitr. However, Rihanna, the singer and recent Grammy Award winner, claims that Prudential “didn’t inform” her “of these problems before she moved in, in 2009.” Rihanna has claimed that roof leaks “ruined a sound system that she’d had custom-fitted into her new abode, which cost her $6.9 million, and it also lead to mold growing on some of her designer garments too.” The singer claims to have been “tricked” into purchasing the property: “’the actual value of the property at the time of purchase, taking into consideration the extensive construction defects… was millions of dollars less’” than what she ultimately paid for it.” Read the court decision
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Is Privity of Contract with the Owner a Requirement of a Valid Mechanic’s Lien? Not for GC’s

January 04, 2021 — Christopher G. Hill - Construction Law Musings
As any reader of this construction law blog knows, mechanic’s liens make up much of the discussion here at Construction Law Musings. A recent case out of Fairfax County, Virginia examined the question of whether contractual privity between the general contractor and owner of the property at issue is necessary. As a reminder, in most situations, for a contract claim to be made, the claimant has to have a direct contract (privity) with the entity it sues. Further, for a subcontractor to have a valid mechanic’s lien it would have to have privity with the general contractor or with the Owner. The Fairfax case, The Barber of Seville, Inc. v. Bironco, Inc., examined the question of whether contractual privity is necessary between the general contractor and the Owner. In Bironco, the claimant, Bironco, performed certain improvements for a barbershop pursuant to a contract executed by the two owners of the Plaintiff. We wouldn’t have the case here at Musings if Bironco had been paid in full. Bironco then recorded a lien against the leasehold interest of The Barber of Seville, Inc., the entity holding the lease. The Plaintiff filed an action seeking to have the lien declared invalid because Brionco had privity of contract with the individuals that executed the contract, but not directly with the corporate entity. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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See the Stories That Drew the Most Readers to ENR.com in 2023

January 16, 2024 — C.J. Schexnayder - Engineering News-Record
As construction's very busy and eventful year nears its close and the sector awaits many more ups and downs in 2024, ENR offers a look back at the Top 20 news stories that most caught readers' attention across a broad market spectrum—from the construction start of the long-awaited $16 billion New York-New Jersey rail tunnel rebuild and winners shortlisted for the first $7 billion in U.S. government funds for developing clean-energy hydrogen hubs to the still unfolding legal battle over Las Vegas Sphere project complexities and why a Texas jury awarded $860 million in a fatal Texas crane collapse verdict. Reprinted courtesy of C.J. Schexnayder, Engineering News-Record Mr. Schexnayder may be contacted at schexnayderc@enr.com Read the full story... Read the court decision
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Efficient Proximate Cause Applies to Policy's Collapse Provisions

February 23, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The court applied the efficient proximate cause doctrine to find coverage under a property policy for a building's collapse. Vardanyan v. Amco Ins. Co., 2015 Cal. App. LEXIS 1181 (Cal. Ct. App. Dec. 11, 2015). The insured submitted a claim to Amco for damage to the flooring of the house and for mold. Amco's adjustor reported that the house seemed to be settling, possibly due to a water leak. A structural engineer then inspected and found multiple potential leaks in the roof, gutters in disrepair, downspouts that deposited water at the base of the walls of the house, and evidence that a faucet had been spraying the wall in one area. Water damage was noticed in these areas. Further, the kitchen was water damaged and had past termite infestation. 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

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Home Prices on the Rise

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
According to CoreLogic, in July, housing prices rose 6.9% compared to last year, reported Housing Wire. Furthermore, prices increased by 1.7% compared to June 2015. “Home sales continued their brisk rebound in July and home prices reflected that, up 6.9% from a year ago,” Frank Nothaft, chief economist for CoreLogic, told Housing Wire. “Over the same period, the National Association of Realtors reported existing sales up 10% and the Census Bureau reported new home sales up 26% in July.” Read the court decision
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5 Questions about New York's Comprehensive Insurance Disclosure Act

February 14, 2022 — Richard W. Brown & Michael V. Pepe - Saxe Doernberger & Vita, P.C.
On December 31, 2021, New York enacted the Comprehensive Insurance Disclosure Act (“CIDA”), requiring defendants to provide plaintiffs with “complete” information for any insurance policy through which a judgment could be satisfied, within sixty (60) days after serving an answer. The stated goal is to reduce delay tactics by compelling disclosures of all policies implicated by a claim as well as other claims, contracts, or agreements that may deplete available coverage or residual limits of policies that have already been eroded by other payments. The impact of CIDA’s disclosure requirements may be scaled back by proposed amendments currently pending before the New York state legislature. 1. What does CIDA Require? CIDA requires the automatic disclosure of insurance information to plaintiffs. New York’s Civil Practice Law & Rules (“CPLR”) 3101(f) permits civil discovery of the contents of existing insurance agreements by which an insurer may be liable for all or part of a judgment. However, CIDA amends the CPLR to mandate that defendants must automatically disclose the following information in all pending cases starting March 1, 2022, or within sixty (60) days of filing an answer to a complaint going forward:

• Complete copy of all insurance policies that are available to satisfy all or part of a potential judgment.
• This includes Primary, Excess, and Umbrella policies.
• The relevant applications for insurance.

Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita and Michael V. Pepe, Saxe Doernberger & Vita Mr. Brown may be contacted at RBrown@sdvlaw.com Mr. Pepe may be contacted at MPepe@sdvlaw.com Read the court decision
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Coverage for Construction Defects Barred by Business Risk Exclusions

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Although the court determined there was an occurrence, coverage was excluded by the business risk exclusions.  See Cont’l W. Ins. Co. v. Shay Constr. Co., 2011 U.S. Dist. LEXIS 82839 (D. Colo. July 28, 2011).

White was the general contractor on the project. White had three subcontracts with Shay to provide framing, siding, and related work on the project. Shay was insured under a CGL policy issued by Continental Western.

Two of Shay’s subcontractors furnished materials, labor and equipment to Shay. These subcontractors filed suit in state court alleging they had not been compensated for the work and materials. White and Shay were named as defendants. White cross claimed against Shay, alleging Shay had breached its obligations under the subcontracts. Several allegations sounded in contract. Other allegations, however, contended Shay had performed defective work and had damaged the work of other trades in correcting deficiencies in its own performance.

Shay sought coverage under Continental Western’s policy. Continental Western filed suit for a declaratory judgment and moved for summary judgment.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Indictments Issued in Las Vegas HOA Scam

January 22, 2013 — CDJ STAFF
A federal grand jury has indicted eleven individuals involved in the Las Vegas homeowners association scam. Leon Benzer, Keith Gregory, and Barry Levinson were all indicted for their roles in the scam, where conspirators took over homeowners associations in order to profit from construction defect suits. According to the Las Vegas Review Journal, all eleven were charged with conspiracy to commit mail and wire fraud. Mr. Levinson's license to practice law has been suspended due to an investigation that he misappropriated client funds. Mr. Benzer has been described as the "mastermind" of the scam. Twenty-eight defendants have plead guilty, with all but one agreeing to cooperate with investigators. The report quotes William C. Woerner, the acting special agent in charge of the FBI in Las Vegas, as saying that "today's indictment demonstrates the continued commitment of the FBI and its law enforcement partners to identify and root out public corruption at all levels." Read the court decision
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