Fairfield Connecticut Building Expert Directory

Finding an "Occurrence," Appellate Court Rules Insurer Must Defend

March 11, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Reversing the trial court, the Wisconsin Court of Appeals found the insurer must defend a cross-claim against the insured owner of a building after an explosion occurred. LBC, LLC v Spectrum Brands, Inc., 2023 Wis. App. LEXIS 1251 (Wis. Ct. App, Nov. 30, 2023). LBC leased commercial property to Spectrum. Spectrum stored lithium on the property. The lithium exploded when it came into contact with water that entered the premises during historic flooding in August 2018. Spectrum remediated the premises, vacated the premises prior to the lease's termination date, and stopped paying rent. LBC sued Spectrum, alleging that Spectrum negligently stored the lithium and that Spectrum breached the lease. Spectrum counterclaimed, alleging that LCB breached the lease in various respects, that LCB negligent allowed water to infiltrate the premises, and that Spectrum was constructively evicted. LCB tendered the counterclaim to its insurer, General Casualty. The tender was denied and LCB sued. 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

Default, Fraud, and VCPA (Oh My!)

September 12, 2023 — Christopher G. Hill - Construction Law Musings
I’ve discussed the Virginia Consumer Protection Act (VCPA) and the interaction between fraud and contract on numerous occasions here at Construction Law Musings. A recent case from the Eastern District of Virginia District Court discusses this interaction (along with that dreaded default) further. In Bhutta v. DRM Construction Corp., the homeowners, the Bhuttas, sued DRM for breach of contract, conversion, fraud, and a violation of the VCPA. These allegations were based upon DRM having taken a $40,000.00 deposit from the Bhuttas and then failing to even begin work. As you may have guessed from the title of this post, DRM did not respond to the Complaint and the Court granted default. The Court then took up the question of whether the Bhuttas had alleged enough on each count for default judgment on those counts. After going through a procedural recitation and finding that DRM was properly served and that the Court had jurisdiction, the Court got to the meat of the matter. The Court held that the Bhuttas properly plead a breach of contract for the obvious reason. The reason was that DRM never performed any work and the Bhuttas were damaged because they both paid the deposit and also had to hire another contractor to complete the work at a higher price. The Court granted default judgment for breach of contract. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Washington Supreme Court Expands Contractor Notice Obligations

November 28, 2018 — Brett M. Hill - Ahlers Cressman & Sleight Blog
The Washington State Supreme Court dealt another blow to public works contractors in Washington State. In a case recently issued by the court, Nova Contracting, Inc. v. City of Olympia, [1] the court expanded contractors’ obligations when providing notice on public works construction projects. The Nova Contracting case was the subject of a previous blog. The case involved Nova Contracting and the City of Olympia. Nova was the low bidder on the contract. Nova alleged that the City of Olympia did not want Nova to win the job and intentionally hindered Nova’s ability to perform the job. The facts alleged by Nova, which were covered in the previous blog, involved the City’s improper and apparently punitive rejection of submittals on the job and the City’s eventual wrongful termination of Nova. Of significance in the case is that Nova never actually began work on the job. All that Nova had done at the time of termination was begin mobilizing its equipment on site. The Court of Appeals found that Nova had alleged sufficient facts to establish that the City violated the duty of good faith and fair dealing by improperly rejecting Nova’s submissions and had breached the contract with Nova by improperly terminating. Read the court decision
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Reprinted courtesy of Brett M. Hill, Ahlers Cressman & Sleight PLLC
Mr. Hill may be contacted at brett.hill@acslawyers.com

Ireland Said to Plan Home Loans Limits to Prevent Bubble

October 01, 2014 — Joe Brennan – Bloomberg
Ireland’s central bank plans to impose limits for the first time on how much banks can lend home buyers as real estate values soar again in the home of western Europe’s worst property collapse, two people with knowledge of the matter said. The regulator is preparing to publish a consultation paper on its proposals within weeks, said one of the people, who asked not to be named, as the matter is private. Banks and lobby groups will have a chance to comment on the plans, which center on introducing loan-to-value and loan-to-income restrictions. A spokesman for the central bank in Dublin declined to comment. Irish homes prices are surging even as banks grapple with the aftermath of mortgage crisis that forced the government to bail out most of the nation’s lenders. A quarter of the country’s owner-occupier home loans are in arrears or had their terms eased. Loans granted during the boom for more than 85 percent of the property value were most likely to default in the wake of the crash, central bank economists said today. Read the court decision
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Reprinted courtesy of Joe Brennan, Bloomberg
Mr. Brennan may be contacted at jbrennan29@bloomberg.net

Montrose III: Appeals Court Rejects “Elective Vertical Stacking,” but Declines to Find “Universal Horizontal Exhaustion” Absent Proof of Policy Wordings

September 14, 2017 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Montrose Chemical Corp. v. Superior Court (No. B272387; filed 8/31/17) (Montrose III), a California appeals court found that excess insurance is not triggered for continuous and progressive losses until there has been horizontal exhaustion of underlying insurance, but there is no “universal horizontal exhaustion” because the order or sequence in which excess policies may be accessed depends on the specific policy wording at issue. The coverage lawsuit was initiated by Montrose in 1990, when it was named in environmental actions for continuous and progressive property damage emanating from its Torrance chemical plant since the 1960s. Montrose had varying levels of insurance coverage throughout, but the total limits and attachment points of differing levels of excess coverage in any given year had changed from year-to-year. The coverage action was stayed in 2006 due to concern of prejudice to the underlying defense, but the stay was lifted in 2014 with Montrose entering a consent decree in the CERCLA action. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Reprinted courtesy of

The G2G Year-End Roundup (2022)

January 04, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Our year-end roundup highlights the top-read Gravel2Gavel posts from 2022. Our authors addressed the legal implications for a variety of hot topics and market disruptions, providing deep industry insights that spanned Metaverse real estate investments, economic sanctions in Russia, and cybersecurity for smart buildings.

NFT Use Cases in Real Estate by Megan L. Jones and David W. Wright. The authors discuss how entrepreneurs are searching for new industries to disrupt utilizing the advantages offered by NFTs and blockchain more generally, with many turning their heads towards real estate.
Commercial Real Estate Brokerages in an Uncertain Russian Market by Cait Horner and Adam J. Weaver. The authors discuss how several commercial real estate firms joined the list of companies temporarily suspending—or outright terminating—property and facility management operations in Russia amid economic sanctions and mounting international pressure.

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Lien Attaches To Landlord’s Interest When Landlord Is Party To Tenant Improvement Construction Contract

January 03, 2022 — David Adelstein - Florida Construction Legal Updates
If you are a landlord / lessor, then you want to maximize the protections afforded to you under Florida’s Lien Law in Florida Statute s. 713.10. These protections are designed to protect your property from liens for improvements performed by your tenant / lessee. The intent is that if you comply with s. 713.10, then a tenant improvement contractor’s recourse is against the leasehold interest, and NOT against the interest of the real property (or your interest as the landlord / lessor). Needless to say, it is imperative that a landlord / lessor make efforts to comply with this section when a tenant is performing tenant improvements, even when the landlord is contributing money to those improvements. Section 713.10 provides in material part:

(1) Except as provided in s. 713.12, a lien under this part shall extend to, and only to, the right, title, and interest of the person who contracts for the improvement as such right, title, and interest exists at the commencement of the improvement or is thereafter acquired in the real property. When an improvement is made by a lessee in accordance with an agreement between such lessee and her or his lessor, the lien shall extend also to the interest of such lessor.

(2)(a) When the lease expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any such improvements of such provision or provisions in the lease, and the knowing or willful failure of the lessee to provide such notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

It Was a Wild Week for Just About Everyone. Ok, Make that Everyone.

April 06, 2020 — Garret Murai - California Construction Law Blog
It was a crazy week last week as the number of coronavirus cases in the United States jumped to 32,783 cases as of Sunday, from 3,680 cases, just a week before. In an attempt to “flatten the curve” and help those impacted by the virus, numerous federal, state, and local orders were issued, including orders requiring that residents “shelter in place.” For businesses impacted by the “shelter in place” orders, which, in California, means virtually every business in the state following Governor Newsom’s state-wide “shelter in place” order, there’s been confusion as to who can and can’t continue to work under the orders including among contractors and project owners. Although things have been changing, sometimes daily, here’s what you need to know about the “shelter in place” orders: The Local “Shelter In Place” Orders On Monday, March 16, 2020, six Bay Area counties, and the City of Berkeley, issued “shelter in place” orders requiring that residents in those counties and city shelter in place except for “Essential Activities,” if performing “Essential Governmental Functions,” or if operating “Essential Businesses.” Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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