FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

After Breaching its Duty to Defend, Insurer Must Indemnify

August 11, 2011 — Tred R. Eyerly - Insurance Law Hawaii

In a brief decision analyzing Oregon law, the Ninth Circuit determined that once an insurer breaches its duty to defend, it must indemnify. See Desrosiers v. Hudson Speciality Ins. Co., 2011 U.S. App. LEXIS 12591 (9th CIr. June 21, 2011).



The victim secured a judgment against the insured after he was beaten by another patron outside the insured's bar. Hudson Speciality Insurance refused to defend the insured, claiming the injury arose from an assault and battery, which excluded coverage.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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2023 Construction Outlook: Construction Starts Expected to Flatten

February 06, 2023 — Garret Murai - California Construction Law Blog
There’s a lot to worry about going into 2023 according to Dodge Data & Analytics in its 2023 Construction Industry Outlook:

• Inflation
• More oil production cuts from OPEC
• Relations between China and Taiwan
• Further escalation of the war in Ukraine

While the immediate forecast is choppy, if things stabilize in the back half of 2023, according to Dodge Data & Analytics, total construction starts in the U.S. should remain flat in 2023. While “flat” may not sound particularly optimistic, it is, when you consider that total construction starts in 2022 were up 17%. “We’re sitting at 14- to 15-year highs in the Dodge Momentum Index,” stated Richard Branch, Chief Economist at Dodge Data, “so it should provide some semblance of confidence and reassurance that developers and owners are continuing to put projects into the queue despite the fact that we’re concerned about what might happen when interest rates keep rising and the economy slows down in 2023.” Labor shortages will continue to be a big hurdle for the construction industry, according to Branch, but a bright spot is in material prices that peaked in 2021 but generally fell throughout 2022. 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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Impairing Your Insurer’s Subrogation Rights

May 06, 2024 — David Adelstein - Florida Construction Legal Updates
Liability insurance policies have a provision that allows them to subrogate to the rights of their insured. This provision is commonly referred to as a transfer of rights provision and reads: If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring “suit” or transfer those rights to us and help us enforce them. In a recent dispute, an insurer sued its insured claiming the insured breached the insurance policy-a contract—by impairing the insurer’s subrogation rights. In other words, the insurer claimed its insured breach the insurance contract and the transfer of rights provision above. 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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Independent Contractor v. Employee. The “ABC Test” Does Not Include a Threshold Hiring Entity Test

October 03, 2022 — Garret Murai - California Construction Law Blog
In 2018, in Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (2018), the California Supreme Court overturned nearly thirty years of jurisprudence governing the manner in which workers are classified as employees or independent contractors. The Dynamex decision replaced the “Borello test,” derived from a case of the same name, S.G. Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal.3d 341 (1989), in which the California Supreme Court at the time set forth a variety of factors to be considered when determining whether a worker was an employee or independent contractor. The Dynamex decision replaced with the “Borello test” with the “ABC test.” Under the ABC test, a worker can be deemed an independent contractor if three conditions are met:

1. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
2. The worker performs work that is outside the usual course of the hiring entity’s business; and
3. The worker is customarily engaged in an independent established trade, occupation, or business

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Real Estate & Construction News Roundup (6/4/24) – New CRE Litmus Tests, Tech Integration in Real Estate and a Jump in Investor Home Purchases

July 02, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, big bank exposure to CRE lending grows, concerns for the construction industry abound, U.S. hotel securitized loans come due, and more!

• At some of the world’s biggest banks, loans to commercial real estate face new litmus tests that promise to shape the sector’s access to financing. (Frances Schwartzkopff and Gautam Naik, Bloomberg)
• Big banks’ exposure to CRE lending grows by about 40% when indirect lending to REITs is added. (Todd Gillespiev, Bloomberg)
• Cybersecurity threats, cost overruns, high interest rates, labor shortages and an economic downturn dominate the concerns of the construction industry. (Sebastian Obando, Construction Dive)

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

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‘Revamp the Camps’ Cabins Displayed at the CA State Fair

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
This year, the California State Fair is displaying “four modern, environmentally friendly cabins” as “part of the ‘revamp the camps’ mission by the Forward Parks Commission, California State Parks and 12 architecture graduate students at Cal Poly Pomona,” according to the Sacramento Bee. The commission’s purpose is “to find solutions for the financial, cultural and population changes affecting state parks” including “drawing millennials and urban residents who live far from traditional state parks.” Guidelines stated that the cabins “had to be portable, accessible to the physically disabled and made from sustainable materials.” Furthermore the cabins had to be under $15,000 each, have no running water or electricity, and “[y]et the design had to appeal to a younger market.” “After a review of the surveys and recommendations from the Parks Forward Commission, the hope is to place the prototypes in state parks for public use,” the Sacramento Bee reported. Read the court decision
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New York Construction Practice Team Obtains Summary Judgment, Dismissal of Labor Law §240(1) Claim Against Municipal Entities

August 19, 2024 — Lewis Brisbois Newsroom
New York, N.Y. (August 8, 2024) – In Josan v. City of New York, et al., New York Associate Jonathan A. Bartlett, a member of New York Partner Meghan A. Cavalieri’s Construction Practice Team, recently obtained summary judgment and dismissal of the plaintiffs’ Labor Law §240(1) claim against the City of New York, the New York City School Construction Authority, and the New York City Department of Education. The plaintiff alleged to have sustained injuries as the result of a construction site accident occurring on January 9, 2020, while in the scope of his employment as a forklift operator in connection with the construction/renovation of a school building in Brooklyn, New York. Specifically, the plaintiff alleged that he was injured when a forklift he was operating in order to lift scaffold frame materials tipped over, causing him disabling injuries. The plaintiffs’ counsel articulated an eight-figure initial settlement demand. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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Committeewoman Requests Refund on Attorney Fees after Failed Legal Efforts

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
West Deptford, New Jersey township redevelopment counsel Mark Cimino had spent a year arguing that the city should receive a $4 million reduction in construction costs due to “inadequate documentation provided by the bank, as well as receipts showing disbursement had ‘improperly’ been made toward uses other than construction,” according to a December 30th 2013 article in the South Jersey Times. However, a state appellate court upheld the ruling that “the township had no basis” to request the reduction. Now, Committeewoman Denice DiCarlo is “seeking a $10,000 refund on the attorney fees paid” to Cimino, the South Jersey Times reported on February 6th. “This entire matter has been a monumental waste of tax dollars, and I am angry that the entire township committee was misled by Mr. Cimino and induced to believe we had any reasonable chance of recovering loan proceeds from this lawsuit,” DiCarlo stated in a letter to Mayor Raymond Chintall. Not all committee members agree with DiCarlo. Committeeman Sam Cianfarini told South Jersey Times that “he still believed Fulton Bank owed it to West Deptford to answer for any funds put toward anything other than construction.” Cimino declared “that both the lawsuit and appeal were valid,” according to the February 6th article. He “accused DiCarlo of ‘playing politics.’” Read the full story, December 30th Article... Read the full story, February 6th Article... Read the court decision
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