Fairfield Connecticut Building Expert Directory

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in Construction Contracts

October 21, 2019 — Gus Sara - The Subrogation Strategist
In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s insured violated Wisconsin statute § 895.447, which prohibits limitations of tort liability in construction contracts. The Supreme Court affirmed the lower court’s decision that the waiver clause did not violate the statute because it merely shifted the responsibility for the payment of damages to the defendant’s insurance company. The waiver clause did not limit or eliminate the defendant’s tort liability. This case establishes that while § 895.447 prohibits construction contracts from limiting tort liability, a subrogation waiver clause that merely shifts responsibility for the payment of damages from a tortfeasor to an insurer does not violate the statute and, thus, is enforceable. In Rural Mutual, the plaintiff’s insured, Jim Herman, Inc. (Herman), entered into a contract with Lester Buildings, LLC (Lester) to design and construct a barn on Herman’s property. The contract included a provision that stated the following: Both parties waive all rights against each other and any of their respective contractors, subcontractors and suppliers of any tier and any design professional engaged with respect to the Project, for recovery of any damages caused by casualty of other perils to the extent covered by property insurance applicable to the Work or the Project, except such rights as they have to the proceeds of such property insurance and to the extent necessary to recover amounts relating to deductibles of self-insured retentions applicable to insured losses. . . . This waiver of subrogation shall be effective notwithstanding allegations of fault, negligence, or indemnity obligation of any party seeking the benefit or production [sic] of such waiver. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Chinese Millionaire Roils Brokers Over Shrinking Mansion

August 20, 2014 — John Gittelsohn and Karen Gullo – Bloomberg
Millionaire Hiroshi Horiike spent two years searching California for a dream home, one grander than any he could find in his native China. After visiting more than 80 properties in the Los Angeles area with an agent from Coldwell Banker, Horiike paid $12.25 million in cash for a four-bedroom, six-bath Tuscan-style mansion with a swimming pool, spa and guest house on 5.1 acres (2.1 hectares) overlooking the Pacific Ocean. There was just one catch. After settling in, Horiike found the Malibu home had less living space than he’d been told -- a third less. It had 9,434 square feet (876 square meters) instead of the 15,000 square feet shown in marketing brochures from the seller’s agent, who also worked with Coldwell Banker. Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Ms. Gullo may be contacted at kgullo@bloomberg.net Read the court decision
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Reprinted courtesy of John Gittelsohn and Karen Gullo, Bloomberg

State Farm Unsuccessful In Seeking Dismissal of Qui Tam Case

January 26, 2017 — Tred R. Eyerly – Insurance Law Hawaii
In an insurance related case, the United States Supreme Court affirmed the Fifth Circuit's decision that State Farm was not entitled to a dismissal of a qui tam case involving its claims-handling after Hurricane Katrina. State Farm Fire & Cas. Co. v. United States ex rel. Rigsby, ___ U.S. ___, 137 S. Ct. 436 (2016). Before Katrina, State Farm issued two types of policies to homeowners: (1) Federal Government-back flood policies and (2) its own general homeowner policies. After Hurricane Katrina, State Farm's policies were responsible for wind damage, and the government policies were responsible for flood damage. Therefore, it was in State Farm's interest to classify hurricane damage as flood-related. 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

Elon Musk's Boring Co. Is Feuding With Texas Over a Driveway

July 25, 2022 — Sarah McBride - Bloomberg
While Elon Musk is publicly making a big deal about moving to Texas and cozying up to the governor, behind the scenes his tunnel-building venture, Boring Co., is wrangling with local authorities in the state over a host of seemingly mundane permitting issues. Since Boring bought land last May to create a research and development center in Bastrop, Texas, a rural area outside Austin, the company has put workers up on mobile homes at the site without authorized sewage facilities, failed to get air and stormwater permits and built a driveway without first getting official approval, according to documents obtained by Bloomberg News through a public records request. The company’s dealings with Bastrop are yet another illustration of how Musk’s businesses often push the boundaries of or simply ignore regulations that bind other companies. In recent years his Tesla Inc. restarted production at its Fremont plant in defiance of pandemic rules to stay closed, Boring tried to build a tunnel in Los Angeles without going through an environmental review process and the US Securities and Exchange Commission is examining the disclosure of Musk’s stake in Twitter Inc. Read the court decision
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Reprinted courtesy of Sarah McBride, Bloomberg

Will Millennial’s Desire for Efficient Spaces Kill the McMansion?

September 10, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine reported that millennials are currently “inhabiting high-tech, yet cozy student housing and apartments” without having “outsized space expectations,” however, that may change over the next ten years as “their preference for the walkable convenience that often accompanies smaller living spaces will collide head on with their parents’ (and grandparents’) insatiable addiction for square footage.” Regardless, builders may decide to change based upon a younger generation that accepts “efficient spaces.” According to Builder Magazine, Nick Lenhert, executive director at architectural firm KTGY, argued that the young “don’t really want what mom and dad have until they get married. Then all of a sudden things start to revert. They start getting realistic about what they need for the children and what they need for themselves. [Right now,] Gen Y is used to living in small spaces or with roommates because that’s all they can afford.” However, John Thatch, principal and director of design at the architectural and planning firm Dahlin Group, believes that even as millennials get older and conceivably need greater square footage, there is still a possibility that their tendency toward efficient spaces will continue: “I’m hoping this is the generation [that pulls in house size] because our generation went gigantic. It’s a chance for architects to get back to design smaller, more thoughtful spaces that are flexible.” Read the court decision
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General Contractor’s Intentionally False Certifications Bar It From Any Recovery From Owner

November 03, 2016 — Masaki James Yamada – Ahlers & Cressman PLLC
In a public works dispute in Massachusetts, a Massachusetts Court judge ruled that a general contractor could not recover any of its over $14 million claim against a public owner because it had violated its contract with the Owner by certifying that it had paid its subcontractors in full and on time when in fact it had not.[i] The case involves a contract dispute arising from a state and federally-funded project to design and construct a fiber optic network in western Massachusetts. The Owner was a state development agency established and organized to receive both state and federal funding to build a 1,200–mile fiber optic network known as MassBroadband123 in Western Massachusetts (the Project). Of that amount, $45.4 million was awarded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). One of the stated goals of ARRA was (as its title suggests) to create jobs in the wake of the 2008 recession and to provide a direct financial boost to those impacted by the economic crisis. In the context of the instant case, that meant that, if there were to be subcontractors on the job providing labor and materials, they needed to be paid on a timely basis in keeping with the statutory purpose of stimulating the economy. 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

Settlement Ends Construction Defect Lawsuit for School

October 02, 2013 — CDJ STAFF
The school district in the Chicago-area town of Lake Zurich has made last settlement in a construction defect lawsuit. The $80,000 settlement from Terra Group of Chicago brings the total settlement with the Community Unit School District 95 to about $1.9 million. Other firms included Bovis Lend Lease, Legat Architects, Larson Engineering, and Illinois Masonry Corporation. The school district had contracted for work on several schools in the district. The buildings opened in 2004, with defect claims made in 2007. Defect claims included the failure of a retaining wall and need for reinforcement of stairwells. The settlement with Terra Group was made under the agreement that it was a compromise with no concession of liability. Read the court decision
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Texas Considers a Quartet of Construction Bills

April 03, 2013 — CDJ STAFF
Among the issues the Texas legislature is taking up is a measure that would require builders to buy back homes if they could not fix defects after three tries, but the law would only apply if the homeowner was a veteran. Some supporters of the bill, however, think it should be applied to all homeowners. Additionally, the state is also considering a measure that would adopt a new definition of “construction defect” and require contractors who bought homes back to disclose all construction defects and how they were remediated. Another measure would require builders to provide construction documents, including blueprints, to buyers of new homes. A final measure would create a standardized contract for the sale of new homes. Read the court decision
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