Fairfield Connecticut Building Expert Directory

Indicted Union Representatives Try Again to Revive Enmons

June 22, 2016 — Wally Zimolong – Supplemental Conditions
The Boston Globe reports that the Massachusetts AFL-CIO has filed a friend of the court brief seeking to have the indictment of five members of the Teamsters Union in Boston dismissed. The Teamsters members are facing federal charges that they extorted non-union contractors and owners that employed non-union contractors. The Massachusetts AFL-CIO is arguing that under the Supreme Court’s 1972 decision in U.S. v. Enmons the Teamsters alleged conduct was in furtherance of a legitimate union objective and, therefore, no illegal. Read the court decision
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Reprinted courtesy of Wally Zimolong, Supplemental Conditions
Mr. Zimolong may be contacted at wally@zimolonglaw.com

New York Appellate Court Holds Insurers May Suffer Consequences of Delayed Payment of Energy Company Property and Business Interruption Claims

March 16, 2020 — Syed S. Ahmad & Geoffrey B. Fehling - Hunton Andrews Kurth
A New York appellate court recently held that renewable bio-diesel fuel manufacturer BioEnergy Development Group LLC may pursue tens of millions of dollars in damages from its insurers under two all-risk insurance policies, including amounts in excess of the policy limits, where the insurers refused to pay claims in a timely manner. BioEnergy purchased two all-risk property policies from Lloyd’s to provide coverage for its manufacturing plant in Memphis, Tennessee. A fire destroyed the Memphis plant in March 2016, eliminating BioEnergy’s production capacity and sole source of revenue. BioEnergy made claims under the policies and sought to rebuild its plant. The insurers acknowledged coverage and eventually made approximately $8 million in interim payments, but the parties disagreed over the value of the total property damage claim, which BioEnergy contended was in excess of $24 million. The disputed claim was submitted to appraisal, which resulted in the insurers agreeing to pay the full business interruption limit of $15.1 million. The insurers filed a declaratory judgment lawsuit, however, seeking to limit BioEnergy’s recovery to the policy limits of $15.1 million. BioEnergy alleged that the insurers failed to make interim payments in a timely manner after the fire and, as a result, the company suffered increased losses because it could not rebuild without the insurance proceeds. BioEnergy sought actual and consequential damages, plus attorneys’ fees, arising from the delayed payments, including payment of its business interruption losses in excess of the policy limits. Reprinted courtesy of Syed S. Ahmad, Hunton Andrews Kurth and Geoffrey B. Fehling, Hunton Andrews Kurth Mr. Ahmad may be contacted at sahmad@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Bad Faith Claim for Inadequate Investigation Does Not Survive Summary Judgment

May 20, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for bad faith investigation regarding their hail damage claim did not survive the insurer's motion for summary judgment. Amarillo Hospitality Tenant, LLC v. Mass. Bay Ins. Co., 2015 U.S. Dist. LEXIS 56228 (N. D. Tex. April 29, 2015). A hailstorm caused damage to the Courtyard Marriot. The day after the storm, the insured inspected the roof of the hotel and observed damage to a sign and some aluminum vent tubes. No damage to the roof itself was observed. Subsequently, leaks were found on the tenth floor of the hotel. A public adjuster concluded that the roof had sustained damage during the hailstorm. The insured filed a claim with Massachusetts Bay Insurance Company. The insurer paid for the cost of repairing the damaged sign. To determine whether the damage to the roof was caused by the hailstorm, the insurer hired Donna Engineering, who conducted two inspections of the roof. Both inspections concluded that the hailstorm did not cause damage to the roof. Consequently, the claim was denied. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Sochi Construction Unlikely to be Completed by End of Olympic Games

February 11, 2014 — Beverley BevenFlorez-CDJ STAFF
As journalists and visitors descended upon Sochi, Russia for this winter’s Olympic Games, they reported “used linen, improper toilets, poor wiring, unclean water and loose fixtures” using the Twitter hash tag @SochiProblems, according to The International Business Times. Furthermore, it is doubtful that the construction work “in and around Sochi” will be completed by February 23rd—the official end of the games. The International Business Times article features photographs of various unfinished construction sites including an apartment building, hotels, a sports store, and other buildings. The Olympic opening ceremony took place on February 7th. Read the court decision
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Personal Guarantor Cannot Escape a Personal Guarantee By…

June 02, 2016 — David Adelstein – Florida Construction Legal Updates
In a prior article, I discussed the point that a personal guarantor cannot escape a contractual requirement of a personal guarantee merely by executing the guarantee as a corporate officer. The recent decision Frieri v. Capital Investment Services, Inc., 41 Fla. L. Weekly D1189a (Fla. 3d DCA 2016) illustrates this point. In this case, a company hired an individual to help grow that company’s business. The contract required the individual to invest $6 Million into a trust in consideration of the company’s president transferring substantial shares of the company into the trust. The objective was that the trust would own the controlling shares of the company. The money was transferred. However, the shares were never placed in the trust and the trust never received controlling interest in the company. Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Nevada Senate Minority Leader Confident about Construction Defect Bill

February 21, 2013 — CDJ STAFF
Nevada Senate Minority Leader Michael Roberson told the Las Vegas Review Journal that he was confident that his bill to reform construction defect legislation in Nevada would not meet the same fate as the bill he introduced in 2009, which made it through the Senate only to die in the Assembly. Senate Bill 161 would end the guarantee on legal fees for lawyers bringing construction defect suits. Further, the bill limits construction defects to those that include “an unreasonable risk of injury to a person or property.” According to the article, construction defect claims in Nevada are 38 times above the national average. Read the court decision
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Insurance Company Prevails in “Chinese Drywall” Case

June 17, 2011 — CDJ STAFF

The Louisiana Court of Appeals rejected an appeal to reverse a summary judgment granted to Louisiana Citizens Property Insurance Company. Terrence and Rhonda Ross contracted for a remodel of their home in which Chinese-made drywall was used. When the drywall emitted harmful gasses, the Rosses filed a claim under their insurance policy. This claim was rejected under four exclusions: for faulty materials, latent defect, loss by corrosion, and loss by pollution. After the claim was denied, the Rosses sued Louisiana Citizens.

In April 2010, the lower court granted a summary judgment, followed by a May, 2010 order dismissing the Rosses’ claims against Louisiana Citizens. The Rosses appealed this decision. In the court’s review, they agreed with Louisiana Citizens and the lower court on all counts. Although the Rosses maintained that the drywall was not defective (as it still functioned as drywall), the court ruled that its emission of sulfuric gases was a defect. Further, as it was in place for two years before this became evident, it was also a latent defect. Damage to the Rosses’ home consisted of corrosion damage caused by the pollutants in the drywall.

The Rosses made an additional claim that since their policy covered smoke damage, this should be covered, as the harm was done by sulfuric gases. The court noted that the contract specifies “fumes or vapors from a boiler, furnace, or related equipment,” none of which apply in this case.

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Contractor Sues License Board

June 30, 2011 — CDJ STAFF

Judge Kendall J. Newman of the US District Court handed down a decision on June 24 on the case of Kent v California Department of Consumer Affairs. Mr. Kent, appearing as his own counsel, had brought the suit against the California Department of Consumer Affairs and the Contractors State Licensing Board after he was arrested in a sting operation and, as the plaintiff put it, “was absurdly arrested and uncooperatively detained for a time longer than necessary or allowed by law under the false pretense of contracting with out a license.” Mr. Kent’s alleged that Rick Lopez, one of the defendants, formed him to read allow from the California Business and Professions Code. He said he was later handcuffed and placed in an uncomfortable chair, “enduring physical pain and emotional agony.”

Although Kent was given a Notice to Appear, he alleged that a further defendant, Stuart Rind, “closed the plaintiff’s case marked citation A7773 without giving written notice to anyone.” As a result, the Placer County District Attorney’s Office had no record of his Notice to Appear.

Kent alleged that subsequently his firm was essentially shut down for two years and that he was prevented from “legally contracting or selling services for any other contractor or qualifying for any other licensed capacity governed by the CSLB.” After this, the CSLB suspended the license for his firm, DSI Construction. He was assessed a $1,500 fine, after which he claims he sent a letter to the CSLB demanding money damages. The judge noted that the letter was not included in the plaintiff’s Ninth Amended Complaint.

Judge Kendall recommended that the plaintiff’s Complaints be dismissed, although he did allow that sixth, and perhaps the eighth and ninth, could be amended with a tenth amended complaint.

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