Fairfield Connecticut Building Expert Directory

Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak

September 09, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024). Carbon monoxide leaked in a building addition to a middle school, prompting 23 lawsuits to be filed against the insured, Allied Design Consultants, Inc. Allied was retained to perform certain architectural services to the building addition. Pekin Insurance Company had issued a business owners liability policy and a commercial umbrella liability policy to Allied. Pekin denied a defense to Allied based upon the policies' professional services exclusions. Allied filed suit for declaratory relief against Pekin. Pekin filed a counterclaim, seeking a declaratory judgment that it had no duty to defend. The parties filed cross-motions for summary judgment. The parties agreed the allegations in the personal injury complaint filed by Ferguson were typical and representative of the allegations in the other 22 underlying lawsuits. 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

Insurer Has Duty to Defend Sub-Contractor

July 25, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Interpreting Connecticut law, the federal district court had that the insured sub-contractor was entitled to a defense. County Wide Mech. Servs. LLC v. Regent Ins. Co., 2022 U.S. Dist. LEXIS 86726 (D. Conn. May 13, 2022). The underlying plaintiff, The Saybrook at Haddam, entered a contract with PAC Group to serve as general contractor for construction of an addition to The Saybrook's facility. PAC Group sub-contracted with County Wide Mechanical Services to install the HVAC system. The HVAC system was put into service on November 14, 2014. In October 2019, The Saybrook filed the underlying action against PAC group, County Wide, and others. The underlying complaint alleged that there had been at least seven "critical failures" of the HVAC system. As a result, The Seabrook had to replace multiple compressors and several circuit boards, valves, and other components. Further, the entire system had to be replaced. The underlying complaint alleged breach of contract against PAC Group and County Wide. In addition to the alleged breach of contract between The Saybrook and County Wide, the Saybrook also alleged it was a third-party beneficiary of PAC Group's contract with County Wide regarding installation of the HVAC system. PAC Group cross-claimed against County Wide, asserting one count of contractual indemnification and one count of breach of contract under the PAC Group's contract with County Wide. 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

Is It Time to Revisit Construction Defects in Kentucky?

December 11, 2013 — CDJ STAFF
The Kentucky Supreme Court ruled in 2010 that faulty workmanship on a construction project could not be considered an accident under a commercial general liability policy. The first reason they cited, according to Carl A. Salisbury of Kilpatrick Townsend & Stockton LLP, was that a majority of states had concluded that “claims of faulty workmanship, standing alone, are not ‘occurrences’ under CGL policies.” Mr. Salisbury points out a problem with that: “an overwhelming majority of state Supreme Courts that have considered the question have held that faulty workmanship can be (and usually is) accidental and, therefore, is a covered ‘occurrence.’’ He also notes that in four states, the legislatures have passed laws confirming that faulty workmanship is an occurrence. The “majority viewpoint” cited by the Kansas Supreme Court is currently held by four other states, while twenty states hold the view that construction defects are accidents and thus occurrences. Since 2010, five states have reversed their stance, coming to what is now the clear majority view, including South Carolina. The Kansas court relied on a South Carolina decision that Mr. Salisbury described as “since repudiated” by “both the legislature and Supreme Court of that state.” Read the court decision
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Insurer Obligated to Cover Preventative Remediation of Construction Defects

November 06, 2013 — CDJ STAFF
A recent Texas construction defect case gets covered on a blog post on the web site of Manatt, Phelphs & Phillps, LLC. In the case, the home builder built homes using EIFS which later had problems with mold, mildew, and structural damage. The home builder remediated all of the homes in the project, not just those that had experienced problems with the EIFS.The home builder’s insurers refused to cooperate. Various insurers settled with the home builder, leaving only Markel America Insurance Company. Markel refused coverage on the grounds that proactively replacing the EIFS to preclude damage meant that there was no damage for their policy to cover. The policy also read that “no insured, except at their own cost, [may] voluntary make any payment, assume any obligation, or incur any expense,” unless Markel agreed to it. But the Texas Supreme Court ruled that “Markel failed to prove that it was prejudiced in any way by the home builder’s settlements,” which was a necessary condition for the cited clause. The Texas Supreme Court ruled that Markel was obligated to indemnify the home builder. The court also concluded that the damage occurred during the coverage period and that “all 465 houses at issue suffered property damage during the policy period.” Read the court decision
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Construction Calamity: Risk Transfer Tips for Contractors After a Catastrophic Loss

August 17, 2020 — William S. Bennett - Saxe Doernberger & Vita, P.C.
From structural collapses to fires, the construction industry has experienced a number of high-profile catastrophes over the past decade. These disasters test the mettle of even the most experienced risk professionals and the strongest insurance programs. Issues can arise in all facets of the company’s contracts and insurance policies, and dealing with the aftermath is an extensive and demanding process that can involve many players. As overwhelming as the task may seem, however, it is possible for general contractors to get through the disaster with minimal uncovered exposure if proper steps are taken. By understanding some of the exposures a general contractor faces after a catastrophic loss and implementing key risk transfer strategies from the outset of a project, risk professionals can minimize the impact of a loss on the company in the short and long term. Understanding Possible Risk Exposures When a catastrophic loss occurs, contractors face a wide array of potential exposures. Unfortunately, many large catastrophic losses involve serious bodily injuries and even loss of life. If such a tragedy occurs, the general contractor can reasonably expect to be named in a flurry of personal injury and wrongful death lawsuits. Depending on the scope of the project and the area associated with the loss, the catastrophe may also prompt a wide range of bystander claims, from dust inhalation to emotional distress. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

New California Construction Law for 2019

January 02, 2019 — Daniel F. McLennon - Smith Currie
The California Legislature introduced over 2637 bills in the second half of the 2017-2018 session. This article summarizes some of the more important bills affecting contractors in their roles as contractors, effective January 1, 2019, unless otherwise noted. Not addressed here are many other bills that will affect contractors in their roles as businesses, taxpayers, and employers. Each of the summaries is brief, focusing on what is most important to contractors. Because not all aspects of these bills are discussed, each summary’s title is a live link to the full text of the referenced bills for those wanting to explore the details of the new laws. Read the court decision
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Reprinted courtesy of Daniel F. McLennon, Smith Currie
Mr. McLennon may be contacted at dfmclennon@smithcurrie.com

Tall and Sustainable Is Not an Easy Fix

June 01, 2020 — Christopher G. Hill - Construction Law Musings
Way back in 2009, I discussed the interaction between taller and taller buildings and sustainable (“green”) building. Back then, the reference was to the construction of skyscrapers in the Middle East and Europe. The initially referenced ENR article was written in the context of an urban retrofit of some of Chicago’s taller buildings to make them more sustainable. Just this week, ENR published another article relating to sustainability and super tall buildings. The gist of the article is that while many see taller (rather than wider) as the trend to meld an urban population explosion with more sustainable building practices, this goal is not an easy one to meet. For one, according to the article, energy performance metrics are hard to obtain, both due to the relative newness of these buildings and the seeming reluctance of certain owners to provide the data. Bob Pratt, a managing director in the Shanghai office of developer Tishman Speyer Properties, is quoted in the article, stating

Once we have measuring sticks about performance, we will know what to do” to make buildings sustainable.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrissghill@constructionlawva.com

Additional Insured Not Entitled to Coverage for Named Insured's Defective Work

September 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024). The City of Chicago contracted with Walsh Construction Company to manage the construction of a canopy and curtain wall system at O'Hare International Airport. Walsh entered into a contract with Carlo Steel Corporation, which in turn subcontracted with LB Steel, LLC to fabricate and install steel columns to support the wall and canopy. LB Steel listed Walsh as an additional insured in its commercial general liability policies. LB Steel's insurers were St. Paul, Travelers, and Charter Oak Fire Insurance Company. Several years into the project, the City discovered cracks in the welds of the steel columns and sued Walsh. Walsh, in turn, sued LB Steel under its subcontract. Walsh also asked LB Steel's insurers to defend it in the City's lawsuit, but they refused to do so. Walsh eventually secured a judgment against LB Steel, but LB Steel declared bankruptcy. Walsh then sued LB Steel's insurers to recover the costs of defending against the City's lawsuit and indemnification for any resulting losses. 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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