FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

When Business is Personal: Negligent and Intentional Interference Claims

October 24, 2023 — Kathryne Baldwin & Jose L. Parra - Wilke Fleury
The nature of business is personal. Changes in personnel, project outlines, or business models cost businesses time and money to bring about, ward against, or stop. Any individual involved in business will likely have seen claims for interference with relationships, either prospective or contractual. But, what do those claims really mean and how viable are they in a capitalist society where free markets are held in such high esteem? Defendants in lawsuits will typically see these claims pleaded as one of three major categories: intentional interference with prospective economic advantage, intentional interference with contractual relations or contract, or negligent interference with prospective economic advantage. As the name would suggest, the first two are more concrete and require a showing that the bad actor was aware of the existence of a contract or relationship and took affirmative steps to interfere with that relationship. The latter is more nebulous and looks at business relationships that were likely to occur and are based on a “should have known” standard. Reprinted courtesy of Kathryne E. Baldwin, Wilke Fleury and José L. Parra, Wilke Fleury Ms. Baldwin may be contacted at kbaldwin@wilkefleury.com Mr. Parra may be contacted at jparra@wilkefleury.com Read the court decision
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Federal Government Partial Shutdown – Picking Up the Pieces

February 27, 2019 — Jacob W. Scott -
Now that the partial shutdown has ended (though with the specter of another just around the corner), contractors are asking, “What now?” and “What did that cost me?” Although every case is fact-specific, following are some guidelines for moving forward after the shutdown. Following up on our previous guidance, contractors should make sure that any court, board, or agency filings made during the shutdown were received and properly docketed. If there is any question whether a filing was received, file it again as soon as possible with proof of the earlier attempt to file. The busiest tribunals, such as the federal courts, the Court of Federal Claims, the Boards of Contract Appeals, and the Government Accountability Office, remained open, or at least open to accept filings, and all indications are that filings made during the shutdown were received and acknowledged. But for some of the other tribunals or agencies, such as the Small Business Administration (“SBA”) Office of Hearings and Appeals and the SBA Office of Government Contracting and Business Development, prudence dictates double-checking that all filings were received. In many cases, non-statutory deadlines have been or will be adjusted by the court, board, or agency. Read the court decision
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Reprinted courtesy of Jacob W. Scott, Smith Currie
Mr. Scott may be contacted at jwscott@smithcurrie.com

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Fifth Circuit Reverses Insurers’ Summary Judgment Award Based on "Your Work" Exclusion

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Application of the facts to the "your work" exclusion was the key to resolving coverage issued in Am. Home Assurance Co. v. Cat Tech L.L.C., 2011 U.S. App. LEXIS 21076 (5th Cir. Oct. 5, 2011).

Ergon Refining, Inc. hired Cat Tech L.L.C. to service a hydrotreating reactor. In January 2005, Cat Tech replaced certain parts in the reactor. After Cat Tech finished the job and left, Ergon noticed a high pressure drop in the reactor, forcing it to be shut down. Cat Tech returned in February 2005, removed, repaired and replaced the damaged parts, and loaded new parts. After completion, a second large pressure drop occurred during the reactor’s start-up process. The reactor was shut down until October 2005, when Ergon hired a different contractor to perform the repair work. Additional damage to the reactor was found.

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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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OSHA Announces Expansion of “Severe Violator Enforcement Program”

November 15, 2022 — Kip J. Adams & Steven G. Gatley - Lewis Brisbois
(October 28, 2022) - Employers beware! The Occupational Safety and Health Administration (OSHA) is significantly expanding its “Severe Violator Enforcement Program” (SVEP). Employers that are placed into the program by OSHA will be significantly scrutinized, with the potential for very damaging information about their failure to maintain a safe workplace being made public for customers, partners, and vendors to see. As the name suggests, the program is meant to identify, classify, and then stringently monitor employees deemed to be “severe violators” of the OSH Act. According to the OSHA website alert, to be deemed a “severe violator”, the agency must find that the employer has demonstrated “indifference” to the regulations by committing “willful, repeated, or failure-to-abate” violations. Reprinted courtesy of Kip J. Adams, Lewis Brisbois and Steven G. Gatley, Lewis Brisbois Mr. Adams may be contacted at Kip.Adams@lewisbrisbois.com Mr. Gatley may be contacted at Steven.Gatley@lewisbrisbois.com Read the court decision
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Tallest U.S. Skyscraper Dream Kept Alive by Irish Builder

May 01, 2014 — Brian Louis – Bloomberg
Garrett Kelleher, the Irish developer trying to restore Chicago’s status as home to the tallest building in the U.S., has one last chance to keep his dream alive. The planned lakefront skyscraper is nothing more than a hole in the ground six years after the financial crisis derailed Kelleher’s ambitions. To salvage the project, he must line up money to get out of bankruptcy, then obtain financing for the 2,000-foot (610-meter), Santiago Calatrava-designed Chicago Spire condominium tower, which would surpass New York’s 1 World Trade Center by 224 feet. “I never understood how that project was going to work, frankly,” said Alan Lev, chief executive officer of Belgravia Group Ltd., a Chicago-based housing developer uninvolved in the project. “It’s a real eyesore sitting in the ground, so I hope somebody does something with it.” Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

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Construction Defect Attorneys Call for Better Funding of Court System

June 28, 2013 — CDJ STAFF
The construction defect law firm Anderson Shoech has a solution to some of the problems with the California courts. They note that cases often work their way through the system more slowly than they did in the past, due to “unprecedented cuts of over $1 billion from the State Court budget.” Prior to the cuts, cases were resolved “within six months to a year.” Under the current conditions, those involved in a lawsuit “would be lucky if their case was heard within 18 months of filing and could expect at least two full years to pass.” They recommend that California return to appropriately funding the court system. Failure to do so could cause business to go to states “with a functioning and predictable court system.” Read the court decision
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Nevada Supreme Court Holds That Insureds Can Use Extrinsic Evidence to Prove Duty to Defend

February 28, 2022 — Bethany L. Barrese - Saxe Doernberger & Vita
The recent Nevada Supreme Court ruling in Zurich American Insurance Company v. Ironshore Specialty Insurance Company1 benefits insureds seeking to establish an insurer’s duty to defend. As a matter of first impression, the court clarified that insureds have the burden to prove that an exception to a policy exclusion applies in order to trigger the insured’s duty to defend. However, while the policyholder may use extrinsic evidence to establish the insurer’s duty to defend, the insurer may not use extrinsic evidence to deny that duty. The facts of the underlying claim are set in the 2000s when the insured subcontractors worked to build thousands of homes in Nevada. The subcontractors were insured by Zurich American Insurance Company (“Zurich”) during that period. After the homes were complete, the subcontractors switched from Zurich to Ironshore Specialty Insurance Company (“Ironshore”). Between 2010 and 2013, homeowners brought claims against the subcontractors alleging that the properties were damaged due to construction defects. The subcontractors tendered the claims to Zurich as the insurer at the time of construction. Zurich then sought defense and indemnification from Ironshore. Ironshore denied coverage under a “continuing and progressive” policy exclusion, claiming that the property damage occurred due to faulty work that predated the Ironshore policy. Notably, an exception to the exclusion applied if “sudden and accidental” property damage occurred within the Ironshore policy period. Given that the underlying lawsuits did not include specific allegations describing when or how the property damage occurred, Ironshore and Zurich disagreed on whether the exception to the exclusion was triggered.. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita
Ms. Barrese may be contacted at BBarrese@sdvlaw.com

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Construction Litigation Roundup: “Ursinus is Cleared!”

March 11, 2024 — Daniel Lund III - Lexology
Ursinus University in Pennsylvania – a “private, nonprofit liberal arts college” – funded a construction project for a new building utilizing monies loaned by the Montgomery County Health and Higher Education Authority, a public economic development authority “formed by the Board of County Commissioners… authorized to issue bonds relative to projects for eligible educational institution such as Ursinus.” Loans up to the amount of $23,000,000 became available to the University, and construction proceeded using the loans as construction funds. At issue: whether a project was to be considered publicly funded project such that prevailing wage rates were required to be paid. IBEW filed a related grievance with the Pennsylvania Department of Labor and Industry’s Bureau of Labor Law Compliance, which was refused by the Bureau, on the basis that because work was “financed completely by loans from the Authority, which Ursinus was required to repay in their entirety, the Project was ultimately funded through private sources and exempt from coverage under the [Pennsylvania Prevailing Wage Act].” A grievance to the Prevailing Wage Appeals Board ensued, and the Board took a different position. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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