FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Second Circuit Affirms Win for General Contractor on No Damages for Delay Provision

September 02, 2024 — Bill Wilson - Construction Law Zone
In NASDI, LLC v. Skanska Koch Inc. Kiewit Infrastructure Co. (JV), 2024 WL 1270188 (2d Cir. Mar. 26, 2024), the U.S. Court of Appeals for the Second Circuit affirmed the District Court’s grant of summary judgment dismissing a subcontractor’s delay claim against a general contractor on a public project in New York state. The Court enforced a typical no-damages-for-delay provision to bar the subcontractor’s breach of contract claim. The no-damages-for-delay provision in the subcontract at issue provided:

NO DAMAGE FOR DELAY. Except as otherwise provided …, Subcontractor agrees that it shall have no Claim against Contractor for any loss or damage it may sustain through delay, disruption, suspension, stoppage, interference, interruption, compression, or acceleration of Subcontractor’s Work (‘Delay Damages’) caused or directed by Contractor for any reason, and that all such Claims shall be fully compensated for by Contractor’s granting Subcontractor such time extensions as it is entitled to as a result of any of the foregoing.

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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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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Insurance Alert: Insurer Delay Extends Time to Repair or Replace Damaged Property

November 26, 2014 — Valerie A. Moore & Christopher Kendrick – Haight Brown & Bonesteel LLP
In Stephens & Stephens XII v. Fireman's Fund Ins. (No. A135938, filed November 24, 2014), the plaintiffs obtained property insurance on a warehouse. Within a month, it was discovered to be stripped of all wiring and metal. Fireman's Fund paid for emergency repairs but nothing more, concerned that the damage had occurred outside the policy period. The policy provided for valuation of either "replacement cost," meaning the expenditure required to replace the damaged property with "new property of comparable material and quality," or "actual cash value," defined as the actual, depreciated value of the damaged property. For replacement cost, Fireman’s Fund was not required to pay "until the lost or damaged property is actually repaired ... as soon as reasonably possible after the loss or damage," and only "[t]he amount [the insured] actually spend[s]...." In the subsequent bad faith lawsuit, the jury awarded the full cost of repair, despite there being no repairs. The appeals court reversed, holding that there was no right to an immediate award for the costs of repairing the damage; however, the court nonetheless held that the insured was entitled to a "conditional judgment," awarding those costs if repairs were actually made. Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Christopher Kendrick, Haight Brown & Bonesteel LLP Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com Read the court decision
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Pennsylvania Supreme Court Will Not Address Trigger for DEP Environmental Cleanup Action at This Time

August 14, 2018 — Gregory Capps - White and Williams LLP
On July 18, 2018, in Pennsylvania Manufacturers’ Association Insurance Company v. Johnson Matthey, Inc., et al., No. 24 MAP 2017 (Pa. July 18, 2018), the Pennsylvania Supreme Court quashed the Pennsylvania Manufacturers’ Association’s (PMA) appeal seeking review of a ruling denying its motion for summary judgment for an order that coverage for the cleanup of a toxic waste site is limited to the policy in effect when property damage was first discovered. In short, the court found the lower court’s ruling only narrowed the dispute between the parties and is, therefore, interlocutory and not appealable at this time. Read the court decision
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Reprinted courtesy of Gregory Capps, White & Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com

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Lis Pendens – Recordation and Dissolution

July 28, 2016 — David Adelstein – Florida Construction Legal Updates
When you file a construction lien foreclosure lawsuit, you must also record a lis pendens in the official (public) records against the property. This lis pendens serves as written notice that there is a lawsuit concerning the real property, and more specifically, title relating to that real property. If the property is then sold or rented, the buyer or tenant will ultimately be bound by a final determination relating to the lawsuit concerning title to the property. This is the value in recording a lis pendens and why it is a MUST in any foreclosure lawsuit. (This is the same value in any mortgage foreclosure lawsuit and why lis pendens are recorded in these lawsuits too.) A lis pendens will show up in a title report. In most instances, title companies will not issue a title policy if there is a lis pendens or may require a certain amount of money escrowed as a result of the lis pendens and pending action in order to issue a title policy. Also, a buyer, in particular, and a tenant are not going to want to invest in property where the title to that property is at-issue in a lawsuit. Hence, the lis pendens impacts the sale and potential re-financing of the property. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Court Rules that Damage From Squatter’s Fire is Not Excluded as Vandalism or Malicious Mischief

April 15, 2015 — Valerie A. Moore, Christopher Kendrick, and Colin T. Murphy – Haight Brown & Bonesteel LLP
In Ong v. Fire Insurance Exchange (No. B252773, filed 4/3/15), a California appeals court ruled that a vacancy exclusion limited to damage caused by “vandalism or malicious mischief” did not bar coverage for damage to a vacant property caused by a warming fire purposely started by a transient that got out of control and spread to other parts of the property. In Ong, the insured’s rental premises had been vacated by tenants and the utilities turned off. Nearly two years later, the insured submitted a claim for fire damage that had just occurred. An investigator reported finding signs that a squatter had been living in the building, stating that: “[I]t appears the fire may have been initiated as the result of an uncontrolled warming fire started by an unauthorized inhabitant.” The investigator found firewood and a mattress, and concluded that holes burned in the floor were the result of the squatter attempting to throw burning wood out the door when the fire got out of control. The policy excluded vandalism as follows: “We do not cover direct or indirect loss from: . . . 4. Vandalism or Malicious Mischief, breakage of glass and safety glazing materials if the dwelling has been vacant for more than 30 consecutive days . . . just before the loss. A dwelling under construction is not considered vacant.” The term “Vandalism” was not defined in the policy. The insurer denied coverage based on the exclusion, stating: “Our investigation indicates that this loss was the result of vandalism. A trespasser entered the vacant dwelling and intentionally set a fire on the kitchen floor.” Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Valerie A. Moore, Christopher Kendrick and Colin T. Murphy Ms. Moore may be contacted at vmoore@hbblaw.com. Mr. Kendrick may be contacted at ckendrick@hbblaw.com Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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Fewer NYC Construction Deaths as Safety Law Awaits Governor's Signature

July 25, 2022 — Richard Korman - Engineering News-Record
The hoped-for progress in New York City construction safety is coming too late for laborer Jose Fortina Armenta Hernandez. At 8:37 a.m. on May 27, 2021, while jackhammering a roof section on a Brooklyn building, the section on which Armenta stood gave way and he fell 60 ft. When last year his family sent his body from New York City to Mexico to be buried, they used a GoFundMe page to raise money for the laborer's funeral. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Amazon Urged to Review Emergency Plans in Wake of Deadly Tornado

June 20, 2022 — Spencer Soper - Bloomberg
Amazon.com Inc. should better prepare workers for extreme weather events, according to federal regulators who investigated a deadly tornado strike on a company warehouse in Edwardsville, Illinois. The storm ripped through the facility in December, killing six workers and injuring several others, prompting the Occupational Safety and Health Administration to launch a probe. At the time, Amazon said the facility complied with all construction regulations and that proper safety procedures were followed when the tornado struck. But several workers told Bloomberg that training for such events was minimal and mostly entailed pointing out emergency exits and assembly points. An OSHA report released on Tuesday echoed those concerns. The agency said a bullhorn that was supposed to be used to tell workers to take cover was locked up in a cage and inaccessible. In interviews with investigators, some employees couldn’t recall ever participating in emergency drills and said they mistakenly took shelter in a bathroom on the south side of the building rather than in designated restrooms on the north side. Read the court decision
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Reprinted courtesy of Spencer Soper, Bloomberg

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