FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Harmon Towers Duty to Defend Question Must Wait, Says Court

March 01, 2012 — CDJ STAFF

The Harmon Towers project in Las Vegas was eventually halted short of the planned forty-seven stories after “it was determined that there was substantial defective construction, including defective installation of reinforcing steel throughout the Harmon.” The American Home Insurance Company and Lexington Insurance Company put forth a claim that they had no duty to defend Perini Construction, the builder of the defective Harmon Towers. Further, American Home seeks to recover the monies American reimbursed Perini. The United States District Court of Nevada ruled in the case of American Home Assurance Co. v. Perini Building on February 3, 2012.



The two insurance companies covered Perini and its subcontractors, Century Steel, Pacific Coast Steel, and Ceco Concrete Construction. Century Steel was the initial subcontractor for the reinforcing steel; they were later acquired by Pacific Coast Steel. In this current case, Perini Construction is the sole defendant.



Perini sought a dismissal of these claims, arguing that without the subcontractors joined to the case, “the Court cannot afford complete relief among existing parties.” The court rejected this claim, noting that the court can determine the duties of the insurance companies to Perini, which the court described as “separate and distinct from those of the subcontractors.” The subcontractors “have not claimed an interest in the subject matter of the action.” The court concluded that it could determine whether Perini was entitled or not to coverage without affecting the subcontractors. The court rejected Perini’s claim.



Perini also asked the court to abstain from the case, arguing that it was better heard in a state court. The court noted that several considerations cover whether a case is heard in state or federal courts. The court noted that if the case weighed heavily on state law, the state courts would be the obvious location. Further, if there were a parallel action in the state courts, “there is a presumption that the whole suit should be heard in state courts.” This is, however, no parallel state suit, although the court noted that Perini has “threatened” to do so.



However, the issue of who is to blame for the problems at Harmon Towers has not been resolved. The court concluded that until the “underlying action” was concluded, it was premature to consider the issues raised in this case while the earlier lawsuit was still in progress. The court denied Perini’s motion to dismiss the case. Given that the outcome of the earlier construction defect case may lead to further litigation in state court, the District Court granted Perini’s motion to abstain, but staying their judgment until the construction defect case is resolved.

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Top 10 Insurance Cases of 2023

January 29, 2024 — Jeffrey J. Vita & Michael A. Amato - Saxe Doernberger & Vita, P.C.
Federal and state courts tackled many interesting insurance-related issues this past year. Perhaps no state had a more impactful year than Illinois, which held that construction defects could constitute an occurrence, that a LEG 3 “extension” attempting to preclude coverage for faulty or defective workmanship was ambiguous as a matter of law (applying Illinois law), and that ostensibly prohibitive “catch-all exclusions” can render policy language ambiguous in favor of coverage. Other courts wrestled with procedural inquiries, such as the legal duty of a broker in providing notice to an insurer or the ability of an insured to recoup its attorneys’ fees in pursuing a coverage action against its insurer. These are merely a sampling of the impactful insurance decisions rendered in 2023. Each year, we endeavor to identify cases of general interest to our clients and the broader insurance community. Specifically, we attempt to identify trends, cases of first impression, cases illustrating conflicts among the courts, or cases dealing with emerging issues. We now proudly unveil the top 10 most influential coverage decisions of 2023 and look ahead to a few cases to watch as 2024 unfolds. Reprinted courtesy of Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and Michael A. Amato, Saxe Doernberger & Vita, P.C. Mr. Vita may be contacted at JVita@sdvlaw.com Mr. Amato may be contacted at MAmato@sdvlaw.com Read the court decision
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MetLife Takes Majority Stake in New San Francisco Office Tower

October 21, 2015 — Hui-Yong Yu – Bloomberg
MetLife Inc. is taking a majority stake in a 43-story office tower being built next to San Francisco’s Transbay Transit Center, expanding the biggest U.S. life insurer’s holdings in one of the country’s most expensive office markets. MetLife formed a joint venture with Chicago-based John Buck Co. and Golub & Co. for the property, called Park Tower at Transbay, the companies said in a statement before the building’s groundbreaking Tuesday. The tower, which doesn’t yet have a tenant, is scheduled for completion in 2018. Financial terms of the venture weren’t disclosed. Fred Pieretti, a spokesman for MetLife, said the company will own a majority interest in the building. Read the court decision
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Reprinted courtesy of Hui-Yong Yu, Bloomberg

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Construction Worker Falls to His Death at Kyle Field

January 15, 2014 — Melissa Zaya-CDJ STAFF
The family of Angel Garcia, a construction worker who fell to his death while working on Texas A&M’s football stadium (Kyle Field), has filed a $100 million lawsuit against six construction companies claiming inadequate safety policies, procedures, and negligence, Jordan Overturf of The Eagle reported. According to The Eagle, Garcia’s attorneys alleged, “[Garcia] was ‘catapulted off the edge of a fourth-floor ramp’ on the northeast side when a section of concrete fell onto the bucket of the skid steer-loader he was operating. The tractor hit a steel beam during the fall, which exerted enough force to eject Garcia from the tractor.” Garcia did not survive his injuries. The complaint claims the companies involved violated the Occupational Safety and Health Administration rules and regulations. The defendants in the suit were unavailable for comment, according to The Eagle. Read the court decision
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Excessive Corrosion Cause of Ohio State Fair Ride Accident

August 10, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
The manufacturer of the Fire Ball ride at the Ohio State Fair claims that excessive corrosion “led to the accident that killed a teenager and injured seven others…in July.” According to a statement by KMG International, reported by ABC News, “Corrosion on the interior of the support beam reduced the beam's thickness, which led to the accident at the fair.” Furthermore, “The company said it conducted an investigation into the incident, which included a visit to the scene and a review of video footage of the incident. The company also conducted a metallurgical inspection of the ride.” A U.S. Consumer Product Safety Commission (CPSC) spokesperson said “it is aware of 22 deaths associated with amusement attractions since 2010, including Wednesday's incident, but excluding water park and work-related fatalities.” Read the court decision
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How Will Artificial Intelligence Impact Construction Litigation?

September 12, 2023 — Patrick McKnight - The Dispute Resolver
In the first half of 2023, artificial intelligence (“AI”) caught the public’s imagination. Attorneys have not been immune from the fever-pitch of commentary regarding the possible applications. While early adopters have had varying degrees of success, commentators have proposed various potential impacts on construction projects and disputes. This article discusses potential areas where AI can assist in preventing and resolving disputes from the pre-bid stage through project completion and close-out. What is AI? Artificial intelligence entered the popular zeitgeist accompanied by both optimistic and pessimistic predictions about the future. Internet searches on AI exploded in December 2022, reflecting a rapid and widespread public interest in the topic. The term “AI” itself is often loosely used to refer to a machine or computer software with the ability to conduct machine learning.[1] Whereas “automation” is the simple process of computing inputs, artificial intelligence refers to the ability to learn without additional programming from a human being. Now, increased computing power is finally helping some of the potential applications of this technology come into focus. Nonetheless, artificial intelligence is still maturing and is subject to “hallucinations” where the technology essentially generates erroneous nonsense. Read the court decision
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Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

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National Lobbying Firm Opens Colorado Office, Strengthening Construction Defect Efforts

January 05, 2017 — Beverley BevenFlorez-CDJ STAFF
Michael Best Strategies, a national law and lobbying firm, has recently opened an office in Colorado. According to the Denver Business Journal, the firm “has recruited several big-name associates — a move that could give business leaders even more clout with the Legislature on issues such as construction-defects reform.” One of the firm’s recruits, Jeff Thormodsgaard, the lead lobbyist in the recent movement to make it harder to sue condominium builders, told the Denver Business Journal, “The only change [in the construction-defects reform effort] is that we’re going to be adding more feet and more boots on the ground and more gravitas.” Read the court decision
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Concerns Over Unstable Tappan Zee Bridge Push Back Opening of New NY Bridge's Second Span

October 02, 2018 — The New York Daily News - Engineering News-Record
Sept. 08 --Big bridge, big scissors, big problems. A day after an elaborate ribbon-cutting ceremony, the grand opening of the second span of the new Gov. Mario M. Cuomo bridge was postponed over concerns that the remains of the "destabilized" and "dangerous" Tappan Zee Bridge could collapse. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

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