FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable

November 30, 2016 — Masaki James Yamada – Ahlers & Cressman PLLC
When the indemnity provision of a contract conflicts with ORS 30.140, it is voided to the extent that it conflicts with the statute, but no more. Such provisions can remain partially valid and enforceable.[i] In Montara Owner Assn., the owner brought claims against the contractor for construction defects and damage relating to the construction of 35 townhouses. Contractor then brought third-party claims against more than 20 subcontractors for breach of contract and indemnity. Before trial, contractor settled with all but one subcontractor. The subcontract contained an indemnity provision requiring subcontractor to indemnify contractor for losses arising out of subcontractor’s work, including losses caused in part by contractor’s own negligence. Read the court decision
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Reprinted courtesy of Masaki James Yamada, Ahlers & Cressman PLLC
Mr. Yamada may be contacted at myamada@ac-lawyers.com

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Injury to Employees Endorsement Eliminates Coverage for Insured Employer

February 01, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The court granted summary judgment to the insurer based upon an endorsement which barred coverage for injuries to employees. Northfield Ins. Co. v. Z&J Mgt. LLC, 2020 N.Y. Misc. LEXIS 10801 (N.Y. Sup. Ct. Dec. 18, 2020). Ravi Sooklal sued his employer, Z&J Management LLC (Z&J), for injuries at the job site. Northfield, who had issued a CGL policy to Z&L, denied coverage based upon two endorsements. The first was titled "Injury to Employees of Insureds" and the second was "Employers' Liability." Northfield sued for a declaratory judgment and now moved for summary judgment. 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

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D&O Insurer Must Cover Mortgage Broker’s $15 Million Settlement of Alleged False Claims Act Violations

November 15, 2022 — Michael S. Levine, Geoffrey B. Fehling & Matthew J. Revis - Hunton Insurance Recovery Blog
A Delaware court recently granted summary judgment to a mortgage broker targeted in a federal government investigation for alleged False Claims Act violations, holding that the company’s directors and officers liability (“D&O”) insurer was required to indemnify more than $15 million in settlement costs with the U.S. Department of Justice. Guaranteed Rate, Inc. v. ACE American Insurance Company, No. N20C-04-268 MMJ CCLD (Del. Super. Ct. Sept. 6, 2022). We previously reported on the policyholder’s earlier victory in this case, in which the court held that a Civil Investigative Demand (“CID”) from federal authorities triggered the insurer’s obligation to pay defense costs under the D&O policy. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matthew J. Revis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Revis may be contacted at mrevis@HuntonAK.com Read the court decision
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The Increasing Trend of Caps in Construction Contracts and Negotiating Them

November 27, 2023 — Jarred Trauth - ConsensusDocs
Risks are inherent in every construction project and all parties involved face them: owners, designers, general contractors/builders, subcontractors, suppliers…. Equitably allocating such risks is one of the most important and most negotiated areas of any construction related contract. Limitations of liability provisions are key to risk allocation. These provisions include no damage for delay provisions and caps on delay damages, warranty limitations and exclusions, indemnity limitations, and consequential damage waivers. Another, and the focus of this article, is a liability cap fixing the total amount of damages for which a party may be liable under the contract (the “Liability Cap”). Liability Caps have become more and more common in construction and construction related contracts, including major component supply agreements and design agreements. This article will discuss Liability Caps generally and considerations of an owner or contractor negotiating them, including carve-outs (i.e. exceptions) to them. Read the court decision
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Reprinted courtesy of Jarred Trauth, Jones Walker LLP
Mr. Trauth may be contacted at jtrauth@joneswalker.com

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Start-up to Streamline Large-Scale Energy Renovation

August 07, 2018 — Aarni Heiskanen - AEC Business
An app from software provider GenieBelt will facilitate communications and strengthen cooperation when DGI-Byen, a 30,000 m2 business and leisure center in central Copenhagen, undergoes a large-scale energy renovation. SustainSolutions CEO Christian Niepoort expects that the tool will contribute to quality, safety, and time and cost savings. Electricians, carpenters, painters, masons, consultants, and architects; the more parties are involved, the more difficult it becomes to stick to the schedule when coordinating a whole host of supplier and contractor activities. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Virtual Jury Trials of Construction Disputes: The Necessary Union of Both Sides of the Brain

May 17, 2021 — John Dannecker - Construction Executive
Bart Smith is the Senior Project Manager for Simply Best, a general contracting firm. He has been assigned to serve as the liaison with outside counsel in a lawsuit against Holly’s Harleys, a project owner who contracted with Best for the construction of a motorcycle showroom. Best filed suit in federal court for additional project costs it incurred, which it contends were caused by the specification of incompatible materials by Holly’s design firm. The coronavirus pandemic is still raging as the trial date approaches. Courthouse facilities are closed so civil trials are conducted using remote technology, if they occur at all. Bart negotiated the prime contract with Holly’s, and he regrettably allowed Best’s binding arbitration and jury trial waiver clauses in the prime contract to be deleted. Bart worries about how the intricacies of Best’s case can be adequately explained to a jury in a remote trial. His concern approaches panic when Best’s trial counsel explains how the trial will be conducted with none of the parties—their attorneys, the judge, the witnesses or the jury—present in the same location. Reprinted courtesy of John Dannecker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Dispute Review Boards for Real-Time Dispute Avoidance and Resolution

August 20, 2019 — Neal J. Sweeney, Esq. - ConsensusDocs
The use of dispute tribunals generally referred to as Dispute Review Boards or DRBs on major projects has matured. Use of a DRB cannot guarantee elimination of post-project litigation, but when used properly, a DRB can be an enormously effective tool to avoid and resolve disputes rapidly and during construction. The modest out-of-pocket costs of a DRB can pay big dividends. DRBs offer the opportunity to shorten the life cycle of a dispute by requiring the principals to confront and address the merits of their dispute, rather than simply hunkering down and focusing on posturing and preparing for arbitration or litigation. Even when a DRB cannot immediately resolve a dispute, the process can still facilitate subsequent settlement and cost-effectively prepare both parties for formal adjudication. DRBs can also enhance communications and help the parties avoid and resolve problems before they spiral into disputes. DRBs were first and are most widely used on big civil and infrastructure projects, but the benefits of a DRB extend equally to major building projects, particularly hospitals, and industrial projects and should be used in those sectors. Read the court decision
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Reprinted courtesy of Neal J. Sweeney, Esq., Jones Walker LLP
Mr. Sweeney may be contacted at nsweeney@joneswalker.com

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Toolbox Talk Series Recap - The New Science of Jury Trial Advocacy

December 31, 2024 — Douglas J. Mackin - The Dispute Resolver
In the November 21, 2024 edition of Division 1's Toolbox Talk Series, John Jerry Glas discussed how construction lawyers should adjust their trial strategies in response to shifts in juror attitudes. Glas believes that jurors have changed in the last twenty years, with modern jurors being more reluctant than ever to be seen as a lawyer’s puppet. Instead, they simply want a lawyer to help them organize and wade through evidence without spinning it and without spoon-feeding it. Essentially, Glas believes that lawyers achieve better jury trial results if they acknowledge the paradigm shift in jury psychology and reinvent themselves in response by influencing jury deliberations without directly telling a jury what to do. Glas refers to this as the “Waiter Pivot” and recently published a book on the topic. Throughout his presentation, Glas discussed how construction lawyers can embrace the Waiter Pivot throughout a jury trial:

• Voir Dire: Lawyers make their first impressions on a jury during voir dire. As such, lawyers should avoid questions that make jurors feel judged or stereotyped. Instead, give the jurors credit and make use of the opportunity to begin framing their case. For example, Glas once repeated the word “specifications” or “specs” in every question during voir dire where his product liability case turned on whether or not the product deviated from specifications.

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Reprinted courtesy of Douglas J. Mackin, Cozen O’Connor
Mr. Mackin may be contacted at dmackin@cozen.com

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