FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Products Liability Law – Application of Economic Loss Rule

April 02, 2024 — David Adelstein - Florida Construction Legal Updates
When it comes to product liability law, one important doctrine that will always come up is the economic loss rule. The economic loss rule, oftentimes going by its acronym ELR, lives and breathes in the realm of product liability law. Does the economic loss rule extend to a manufacturer’s distributor for a duty to warn when the product is NOT defective? A recent opinion out of the Eleventh Circuit Court of Appeals, NBIS Construction & Transport Ins. Services v. Liebherr-America, Inc., 2024 WL 861257 (11th Cir. 2024), was confronted with this question, including whether the economic loss rule should even extend to a distributor of a product, and certified the following to Florida’s Supreme Court to answer: “Whether, under Florida law, the economic loss rule applies to negligence claims against a distributor of a product, stipulated to be non-defective, for the failureto alert a product owner of a known danger, when the only damages claimed are to the product itself?” NBIS, supra, at *8. 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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Shoring of Ceiling Does Not Constitute Collapse Under Policy's Definition

November 12, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Despite the need to shore up the ceiling, the building was not in a state of collapse under the language of the policy. Ravinia Vouge Cleaners v. Travelers Cas. Ins. Co. of Am., 2019 U.S. Dist. LEXIS 123594 (N.D. Ill. July 24, 2019). Ravinia Cleaners held a property policy issued by Travelers for the building from which it operated its dry-cleaning business. On February 2, 2015, there was heavy snowfall. On February 4, Ravinia reported to Travelers a leak coming from the ceiling. A temporary "shoring " was placed on the ceiling. Ravinia reported to Travelers that there was damage to the roof on February 25, 2015. Travelers hired an engineer who observed a buckling truss and roof displacing downward. The inspector recommended that the building be vacated and not occupied until adequate shoring was in place. Travelers denied coverage because the building was in a state of imminent collapse which was caused by the weight of ice and snow, and defective construction of the truss system. The policy excluded damage relating to a "collapse of a building." Collapse was defined by the policy as "an abrupt falling down or caving in of a building or any part of a building," such that the building could not be occupied for its intended purpose. There were exceptions to the exclusion, however, if the cause of the collapse was: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred after construction. The policy also excluded damage from a building being in a state of imminent collapse unless the damage was caused by: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred during construction. 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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HUD Homeownership Push to Heed Lessons From Crisis, Castro Says

January 14, 2015 — Clea Benson – Bloomberg
Now that regulators have fixed the worst abuses of the 2008 credit crisis, it’s time to start promoting homeownership again, according to the top U.S. housing official. The Department of Housing and Urban Development will do its part, spending this year focusing on ways to help more Americans buy homes, HUD Secretary Julian Castro said today in a Washington speech outlining the agency’s priorities. Read the court decision
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Reprinted courtesy of Clea Benson, Bloomberg
Ms. Benson may be contacted at cbenson20@bloomberg.net

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Avoid L&I Violations by Following Appropriate Safety Procedures

November 07, 2022 — Reeya Patel - Ahlers Cressman & Sleight PLLC
Department of Labor and Industries of the State of Washington v. Roof Doctor, Inc. d/b/a Roof Doctors, Inc. of Tacoma (Unpublished opinion) Roof Doctor, a company engaging maintenance of roofs, was hired to complete work for a commercial building in Tacoma in February 2018. During the job, Roof Doctor was cited for two violations by a Washington State Department of Labor and Industries’ (L&I) compliance inspector and seven additional asbestos violations. Each citation was rated with a probability of 1 – 3 to determine the likelihood of injury, illness, or disease. The ratings allowed issuance of an appropriate monetary penalty. The disputes among the parties on appeal were as follows: First, L&I and Roof Doctor disputed the asbestos probability ratings and calculated penalties. L&I produced as evidence, the fact that nine employees were physically hanging roofing material with asbestos, but none had training or knew that the material contained asbestos. L&I did agree that that most of the employees were experienced in handling roofing material and knew of the dangers that asbestos presented. Roof Doctor explained that because the employees were working outdoors, the danger of asbestos exposure was mitigated due to a low probability that a high concentration of asbestos could be inhaled by the employees when outdoors. Read the court decision
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Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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Wildfire Threats Make Utilities Uninsurable in US West

August 12, 2024 — Mark Chediak - Bloomberg
Trinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat. Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers. The utility’s exposure comes as wildfires are already flaring up across the US West in what could be a dangerous and prolonged fire season. “If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg

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Failing to Adopt a Comprehensive Cyber Plan Can Lead to Disaster

January 13, 2020 — Richard Volack - Construction Executive
Despite being aware of cyber risk, and even frightened by it, a shocking number of companies in the construction industry have neither a cyber insurance policy nor a basic cyber security plan to deal with a hack or breach into their computer systems. Once breached, companies with no plan in place become, essentially, a rudderless ship subject to the whims of criminal tides. A proper cyber plan lays out at least the following:

• the criteria for when a plan would be triggered (i.e., in the event of a breach or a hack);
• which persons inside the company (in-house counsel, IT personnel, executive, project managers) and which persons outside the company (attorney with knowledge of cyber issues and ideally construction law as well; forensic computer experts, crisis management experts; and an insurance broker familiar with cyber policies) should be involved;
• the chain of command and communication in this type of situation and the distinct roles each of the above players will fulfill (Note: this is not the same as the normal corporate chain of command); and
• the various available options to address the breach situation, which will all depend upon the facts at issue—such as the type and extent of the breach and how much of what particular kind of information was lost, stolen or exfiltrated.

Reprinted courtesy of Richard Volack, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Volack may be contacted at rvolack@pecklaw.com Read the court decision
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Recession Graduates’ Six-Year Gap in Homeownership

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Zillow Real Estate Research, “Five years after completing their degree, young adults who graduate into a recession still have a lower homeownership rate than peers graduating into normal economic times. But at six years this gap disappears.” Zillow’s research demonstrated “that graduating into a recession has a lasting adverse effect on young adults’ employment and earning, a phenomenon known as labor market ‘scarring.’” Furthermore, “Homeownership is closely tied to the labor market, particularly among young adults, and some preliminary evidence suggests that a similar ‘scarring’ effect occurs with respect to the homeownership rate among young adults who graduate into a weak economy.” Read the court decision
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Reprinted courtesy of

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Home Prices Beat Estimates With 0.8% Gain in November

January 28, 2015 — Prashant Gopal – Bloomberg
(Bloomberg) -- U.S. home prices rose more than economists estimated in November, a sign job growth is helping to boost housing demand. Prices climbed 0.8 percent on a seasonally adjusted basis from October, the Federal Housing Finance Agency said in a report from Washington. The average economist estimate was for a 0.3 percent increase, according to data compiled by Bloomberg. Prices increased 5.3 percent from November 2013. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

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