FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Do Not File a Miller Act Payment Bond Lawsuit After the One-Year Statute of Limitations

November 01, 2022 — David Adelstein - Florida Construction Legal Updates
Under the Miller Act, a claim against a Miller Act payment bond must be commenced “no later than one year after the date on which the last of the labor was performed or material was supplied by the person bringing the action.” 40 U.S.C. s. 3133(b)(4). Stated another way, a claimant must file its lawsuit against the Miller Act payment bond within one year from its final furnishing on the project. Filing a lawsuit too late, i.e., outside of the one-year statute of limitations, will be fatal to a Miller Act payment bond claim. This was the outcome in Diamond Services Corp. v. Travelers Casualty & Surety Company of America, 2022 WL 4990416 (5th Cir. 2022) where a claimant filed a Miller Act payment bond lawsuit four days late. That four days proved to be fatal to its Miller Act payment bond claim and lawsuit. Do not let this happen to you! In Diamond Services Corp., the claimant submitted a claim to the Miller Act payment bond surety. The surety issued a claim form to the claimant that requested additional information. The claimant returned the surety’s claim form. The surety denied the claim a year and a couple of days after the claimant’s final furnishing. The claimant immediately filed its payment bond lawsuit four days after the year expired. The claimant argued that the surety should be equitably estopped from asserting the statute of limitations in light of the surety’s letter requesting additional information. (The claimant was basically arguing that the statute of limitations should be equitably tolled.) The trial court dismissed the Miller Act payment bond claim finding it was barred by the one-year statute of limitations and that equitable estoppel did not apply. 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

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Broker Not Negligent When Insured Rejects Additional Coverage

January 31, 2018 — Tred R. Eyerly – Insurance Law Hawaii

The broker was not negligent when it proposed additional coverage that was rejected by the insured. Cromer v. Rosenzweig Ins. Agency Inc., 2017 N.Y. App Div. LEXIS 8969 (N.Y. App. Div. Dec. 21, 2017).

Plaintiff was injured while employed as a painter at property owned by Allen Skriloff. Coverage was denied because injuries to employees, contractors and employees of contractors were excluded. Plaintiff sued Skriloff and obtained a jury verdict of $6.1 million. Skirloff assigned to plaintiff all rights and claims held against the insurer and insurance brokers.

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Reprinted courtesy of Tred Eyerly, Insurance Law Hawaii

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America’s Infrastructure Gets a D+

March 16, 2017 — Garret Murai – California Construction Law Blog
The American Society of Civil Engineers (ASCE) has issued their 2017 Infrastructure Report Card, which assigns a letter grade to the nation’s infrastructure. Our country’s grade in 2017? A disappointing D+. Although, if you’re a glass half full kind of person (bless your soul) at least our grade didn’t fall since the last report card was issued in 2013, when our grade was a D+ as well. In short, we suck. Although, apparently, we don’t suck evenly across the board. ASCE has divided its cumulative GPA into grades for specific courses, if you will. Our transit systems received a grade of D-; our airports, dams, drinking water and waste water plants, inland waterways, levees and roads received a grade of D; our power plants, hazardous waste plants, public parks and schools received a grade of D+; our bridges, ports and solid waste plants a grade of C+, and our rail systems received a grade of B. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language

December 20, 2017 — Garret Murai - California Construction Law Blog
In McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project. In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units. The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rose Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Denver Passed the Inclusionary Housing Ordinance

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
ABC 7 reported that Denver, Colorado has passed a city ordinance that will require “developers building 30 or more units to offer 10 percent of them at a cheaper rate.” The Inclusionary Housing Ordinance is meant to increase the number of homes for “middle income earners.” "This city is really facing a housing crisis when it comes to affordability," Samaria Crews, deputy director of the Front Range Economic Strategy Center, told ABC 7. Builders can opt out of the ordinance by paying a fee, and a “new amendment would allow builders to build the low-income inventory off-site.” Read the court decision
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Reprinted courtesy of

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Insurer Springs a Leak in Its Pursuit of Subrogation

August 21, 2023 — Katherine Dempsey - The Subrogation Strategist
In Nationwide Prop & Cas. Ins. Co. v. Fireline Corp., No. 1:20-cv-00684, 2023 U.S. Dist. LEXIS 104241, the United States District Court for the District of Maryland (District Court) considered whether the events giving rise to the plaintiff’s claims fell within the scope of a previously formed agreement, thereby rendering the plaintiff’s claims subject to the agreement’s time limitation and waiver of subrogation provisions. The District Court found that the claims fell within the scope of the agreement. The plaintiff, Nationwide Property & Casualty Insurance Company (Insurer), provided property insurance to Maple Lawn Homeowners Association, Inc. (Maple Lawn) for common property located in Fulton, Maryland, including a community center (the Subject Premises). On January 18, 2018, Maple Lawn entered into an Inspection Agreement (the Agreement) with defendant, Fireline Corporation (Fireline), wherein Fireline agreed to provide:

• annual fire alarm inspection and testing services,
• quarterly sprinkler inspection and testing, and
• annual portable fire extinguisher testing and inspection.

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Reprinted courtesy of Katherine Dempsey, White and Williams LLP
Ms. Dempsey may be contacted at dempseyk@whiteandwilliams.com

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No Coverage Under Anti-Concurrent Causation Clause

October 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The policy's anti-concurrent causation clause blocked coverage for damage to the home caused by wind and flood. Clarke v. Travco Ins. Co., 2015 U.S. Dist. LEXIS 104267 (S.D.N.Y. Aug. 7, 2015). The insured's home was located about twenty feet from the Hudson River. Hurricane Sandy caused the river to rise, creating damage to the insured's home. The insured did not have flood insurance. During the storm, water flooded the lower level of the house to a level of about four feet. Further, a wooden dock from another property, approximately fifteen feet by ten feet, entered the property and came to rest within the lower level. The insured submitted a claim under his homeowner's policy to Travco Insurance Company. An investigator concluded that the cause of damage to the home was flood/water. The claim was 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

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Fourth Circuit Clarifies What Qualifies As “Labor” Under The Miller Act

May 08, 2023 — Jeffrey Hummel - The Construction Seyt
Under the Miller Act, 40 U.S.C. §§ 3131 et seq., contractors hired to work on federal construction projects are required to furnish payment bonds in order to ensure payment to certain persons that provide labor for the project. The United States Court of Appeals for the Fourth Circuit recently issued a published decision clarifying the type of work that qualifies as “labor” under the Miller Act. Elliot Dickson v. Fidelity and Deposit Company (issued April 26, 2023). In that case, the U.S. Department of Defense hired Forney Enterprises (Forney) as the prime contractor on a renovation project at the Pentagon. Forney retained Fidelity and Deposit Company of Maryland (Fidelity) to provide the required Miller Act payment bond. Forney then entered into a subcontract with Elliott Dickson (Dickson), a professional engineer, to work as a project manager on the contract. Dickson primarily supervised labor on the site, but also performed other tasks, including logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself. Dickson’s work required him to be onsite on a daily basis. Read the court decision
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Reprinted courtesy of Jeffrey Hummel, Seyfarth
Mr. Hummel may be contacted at jhummel@seyfarth.com

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