Fairfield Connecticut Building Expert Directory

Michigan: Identifying and Exploiting the "Queen Exception" to No-Fault Subrogation

May 13, 2014 — Robert M. Caplan – White and Williams LLP
In Michigan, an employee’s entitlement to compensation for injuries sustained in a motor vehicle accident is governed by both the Workers’ Disability Compensation Act of 1969, MICH. COMP. LAWS ANN. § 418.801 et seq., and Chapter 31 of The Insurance Code of 1956, MICH. COMP. LAWS ANN. § 500.3101 et seq., commonly referred to as the “no-fault act.” Polkosnik v. United Canada Ins. Co., 421 N.W.2d 241, 242 (Mich. App. 1988). PIP1 benefits payable arising from a motor vehicle accident in Michigan include, principally, (1) medical benefits unlimited in amount and duration, and (2) 85% of lost wages for up to three years. See DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES, Brief Explanation of Michigan No-Fault Insurance. As of October 2013, lost wages are capped at $5,282 per month. Id. Such benefits constitute an injured worker’s “economic loss.” See generally Wood v. Auto-Owners Ins. Co., 668 N.W.2d 353, 355 (Mich. 2003). Michigan’s no-fault legislation is no different than other no-fault legislation in regard to its purpose: The automobile insurer pays without any right of reimbursement out of any third party tort recovery. Sibley v. Detroit Auto. Inter-Ins. Exch., 427 N.W.2d 528, 530 (Mich. 1988). Moreover, just like in New York, for example, “where benefits are provided from other sources pursuant to state or federal law, the amount paid by the other source reduces the automobile insurer’s responsibility.” Id. at 530. Read the court decision
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Reprinted courtesy of Robert M. Caplan, White and Williams LLP
Mr. Caplan may be contacted at caplanr@whiteandwilliams.com

Brazil's Detained Industry Captain Says No Plea Deals Coming

September 03, 2015 — Sabrina Valle & Yasmine Batista – Bloomberg
Marcelo Odebrecht, the most prominent executive who has been detained in Brazil’s largest corruption scandal, said he sees no reason to strike a plea bargain with authorities because he has nothing to reveal. Odebrecht said in a congressional hearing Tuesday that he probably discussed with President Dilma Rousseff and her predecessor Luiz Inacio Lula da Silva the relationship between Odebrecht SA and Petrobras, the state-controlled oil producer at the center of the kickback investigation. It was a natural topic given the economic importance of his construction and engineering empire, he said. He declined to answer questions related to the criminal case, saying it is ongoing and he is unaware of the full extent of the accusations. Reprinted courtesy of Sabrina Valle, Bloomberg and Yasmine Batista, Bloomberg Read the court decision
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Recent Amendments and Caselaw Affecting the Construction Industry in Texas

April 19, 2022 — Frederick H. Wen - Gordon Rees Scully Mansukhani, LLP
Here are some recent Texas legislative amendments and Texas Supreme Court cases from the past year concerning the construction industry in Texas. 1) Recent Legislative Amendments Concerning the Construction Industry: a) The Texas Legislature throws a “Spear” in the Lonergan Doctrine to reduce general/subcontractor liability for owner-provided plans and specs: Forty-nine out of the fifty states follow the Spearin Doctrine under which owners warrant the accuracy and sufficiency of owner-provided plans and specs in construction contracts. On the other hand, for over a century, Texas has followed the Lonergan Doctrine under which, absent contractual language to the contrary, a general contractor/subcontractor, instead of the owner, bears the risk of deficiencies in owner-provided design documents, once they started construction. Texas Senate Bill 219, which went into effect on September 1, 2021, finally changed that and brought Texas in line with the rest of the country, with a few exceptions. Read the court decision
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Reprinted courtesy of Frederick H. Wen, Gordon Rees Scully Mansukhani, LLP
Mr. Wen may be contacted at fhwen@grsm.com

Washington Trial Court Narrows Definition of First Party Claimant, Clarifies Available Causes of Action in Commercial Property Loss Context

January 04, 2021 — Kathleen A. Nelson & Jonathan R. Missen - Lewis Brisbois
The law in the State of Washington, albeit clear on issues regarding first party claimants, was recently challenged in the matter of Eye Associates Northwest, P.C. v. Sedgwick et. al. However, despite this challenge of first impression, the court limited the application of the term “first party claimant” (a term of art akin to “insured”) based upon the wording of a loss payee clause, as well as taking into consideration and harmonizing the wording of the leases, other provisions in the policy regarding tenant improvements, and the simple fact that Eye Associates was not named in the policy whatsoever. In Eye Associates, the plaintiff leased office space in a high-rise medical office building, insured by three separate insurance companies. A water loss caused damage to the plaintiff’s leased space, and the plaintiff brought suit against the owner of the building, its insurers, the property manager, a third-party administrator (TPA), and two individual adjusters assigned to inspect and adjust the water loss claim. Reprinted courtesy of Kathleen A. Nelson, Lewis Brisbois and Jonathan R. Missen, Lewis Brisbois Ms. Nelson may be contacted at Kathleen.Nelson@lewisbrisbois.com Mr. Missen may be contacted at Jonathan.Missen@lewisbrisbois.com Read the court decision
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FIFA Inspecting Brazil’s World Cup Stadiums

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Representatives from FIFA have returned to Brazil to conduct inspections of the World Cup stadiums, according to the San Francisco Chronicle. Even though Brazil had told FIFA they would have all twelve done by the end of 2013, only nine are finished. Furthermore, “infrastructure work in many of the 12 host cities remains far from completed.” “This is the last occasion for the organizers to take stock of the operational preparations before the respective FIFA World Cup installations begin to be implemented in all 12 host cities,” FIFA said in a statement, as quoted in the San Francisco Chronicle. Read the court decision
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Seven Proactive Steps to Avoid Construction Delay Disputes

September 29, 2021 — Michael Pink - Construction Executive
Delays, cost overruns and disputes have long been part of the commercial construction industry, making the work of reactive forensic analysis by consultants and attorneys a necessary component. Yet many internal practices and issues within construction companies strongly correlate with projects that result in legal disputes and financial losses. There are seven proactive steps that can help companies minimize losses and claims. Prepare a Cost- and Resource-Loaded Critical Path Method Schedule This is the first step any contractor can take to establish and document a manpower plan, a timeline and an intended flow for its work. Doing so is beneficial for two reasons: it will become the basis for measuring impacts and variances to both cost and schedule in a delay, dispute or claim setting; and it will serve as a great project management resource or tool. Without thinking through manpower, durations and workflow in great detail at the beginning of the project, contractors put themselves at risk of becoming delayed and blowing the budget. Reprinted courtesy of Michael Pink, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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NAHB Reports on U.S. Jobs Created from Home Building

May 05, 2014 — Beverley BevenFlorez-CDJ STAFF
The National Association of Home Builders’ Eye on Housing reported that for every “average single-family home” built in the U.S., almost three full-time jobs are created. “A substantial share of this is employment for construction workers,” according to the NAHB article. “But also included is employment in firms that manufacture building products, transport and sell products, and provide professional services to home builders and buyers (e.g., architects and real estate agents).” Read the court decision
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Stormy Skies Ahead? Important News Regarding a Hard Construction Insurance Market

August 13, 2019 — Jason M. Adams - Gibbs Giden
Word out of the construction insurance brokerage community is that the construction insurance industry has entered a hard market, seemingly overnight. Property (i.e. builder’s risk), liability and wrap-up markets are all reacting unfavorably, resulting in higher premiums and decreased availability of coverage options. The prospect of a hard market has been looming for some time given massive weather driven property losses and historically low rates (among other factors). It appears the time is upon us. Key takeaways for construction professionals are:

Expect insurance premiums to go up, potentially significantly, at renewal time and/or when seeking a new project specific program (e.g., an OCIP, CCIP, etc.).
Expect that the available coverage will get worse. Carriers may be unable to offer once standard coverage enhancements and/or may add new exclusions.
If quotes have been offered consider locking them in now, before the underwriters are forced to increase the rates/restrict coverage, or pull the quotes entirely.
With respect to wrap-ups and other project specific programs, consider requesting extensions now if the project is expected to go beyond the current policy term.
As always, the risk management team (lawyer, broker, risk manager) should work together to carefully review contracts and coverage. This will become even more important if the carriers start to introduce new exclusions as a result of the hard market.

Hard markets come and go. The tough times are when true construction insurance professionals separate themselves from the pack and become the key to weathering the storm. Jason M. Adams, Esq. is Senior Counsel at Gibbs Giden representing construction professionals (owners/developers, contractors, architects, etc.) in the areas of Construction Law, Insurance Law and Risk Management, Common Interest Community Law (HOA) and Business/Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms. Mr. Adams can be reached at jadams@gibbsgiden.com. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES