Fairfield Connecticut Building Expert Directory

Insurer Has Duty to Defend Despite Construction Defects

January 06, 2012 — CDJ STAFF

In a case the judge attributed to “shoddy masonry work,” the US District Court of Illinois has rendered a decision in AMCO Insurance Company v. Northern Heritage Builders. Northern Heritage built a home in Chicago for Michael McGrath (who joined Northern Heritage as a defendant). According to the decision, “seven months after he moved into the house, McGrath noticed water coming in the house and warped millwork.” This was attributed to porous block, installed by the mason with Northern Heritage’s knowledge.

McGrath sued National Heritage for both the damage to his house and its contents. The court rejected his claim for the contents. For the damages to his house, he was awarded $601,570.50 in damages. He also sued his homeowner’s insurance carrier for damages not covered in his suit against National Heritage. There he was awarded $1,130,680.16.

AMCO informed National Heritage that it had neither duty to defend nor duty to indemnify. The judge considered whether AMCO had a duty to defend. Under Illinois law, “damage to a construction project resulting from construction defects is not an ‘accident’ or ‘occurrence’ because it represents the natural and ordinary consequence of faulty construction.” However, it is noted that while if the defects lead only to damage to the project itself, there is no occurrence, “if the building owner asserts damages to other property besides the construction itself, there is an ‘occurrence’ and ‘property damage.’” The judge further noted that were construction defects an occurrence, “shoddy work” would be rewarded by double pay, once by the homeowner and a second time by the insurer. Judge Kendall concluded that as McGrath had alleged damage to the contents of his house, AMCO had a duty to defend National Heritage.

She then looked at the issue of whether AMCO had a duty to indemnify. Should they pay the $601,570.50? Judge Kendall noted that “the duty to indemnify is narrower than the duty to defend.” The key point here was that once McGrath’s insurance carrier covered him for the damage to the contents of his house, “AMCO’s duty to defend ended.” Once McGrath “only sought damages for the natural consequences of faulty workmanship” there was no occurrence, hence nothing for AMCO to cover.

Judge Kendall granted a summary dismissal of AMCO’s claim that they had no duty to defend while upholding their claim that they had no duty to indemnify.

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Unpaid Hurricane Maria Insurance Claims, New Laws in Puerto Rico, and the Lesson for all Policyholders

January 09, 2019 — Walter J. Andrews & Cary D. Steklof - Hunton Andrews Kurth
Puerto Rico’s dire insurance situation more than a year after Hurricane Maria remains a constant reminder of why policyholders must diligently pursue their property and business interruption claims in the immediate aftermath of a storm. The numbers are staggering. On an island the approximate size of Connecticut, Hurricane Maria caused an estimated $100 billion in damage. According to the Office of the Insurance Commissioner of Puerto Rico, the hurricane resulted in more than 287,000 insurance claims. Roughly 11,000 of those claims, representing an estimated $2 billion in losses, remain unresolved. Reprinted courtesy of Walter J. Andrews , Hunton Andrews Kurth and Cary D. Steklof , Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Mr. Steklof may be contacted at csteklof@HuntonAK.com Read the court decision
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Tariffs, Supply Snarls Spur Search for Factories Closer to U.S.

February 21, 2022 — Laura Curtis - Bloomberg
Small businesses looking for a factory that can make some stylish orthopedic shoes, chairs or construction materials may have an easier time finding a closer-to-home alternative to waiting for the supply-chain snarl in the Pacific Ocean to work itself out. Zipfox, an online platform that links businesses up with factories in Mexico, launched this week, enabling near-shoring of production and the chance to get goods into the U.S. more quickly than if businesses were sourcing from manufacturing hubs in China. “People are feeling the pain from sourcing from China right now but they aren’t really aware of the manufacturing capability and capacity that Mexico already has,” Zipfox founder Raine Mahdi said Tuesday. Read the court decision
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Reprinted courtesy of Laura Curtis, Bloomberg

Experts Weigh In on Bilingual Best Practices for Jobsites

February 22, 2018 — Jim Parsons – ENR
It’s the rare construction firm that doesn’t cite people as its most important resource. And over the past two decades, that asset has become increasingly bilingual. Indeed, more than 27% of workers in construction are Hispanic or of Latino ethnicity, according to the most recent available data from the U.S. Bureau of Labor Statistics (BLS). Read the court decision
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Reprinted courtesy of Jim Parsons, Engineering News-Record

Nebraska Court Ruling Backs Latest Keystone XL Pipeline Route

September 30, 2019 — Tom Ichniowski - Engineering News-Record
Advocates of the Keystone XL oil pipeline have won a victory in their long effort to construct the project, as the Nebraska Supreme Court upheld a state commission's 2017 finding that supported the project's latest route alignment through the state. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Wildfire Risk Harms California Home Values, San Francisco Fed Study Finds

August 26, 2024 — Laura Curtis - Bloomberg
California’s wildfires are weighing on home prices more than in the past, and insurance availability does little to help in areas considered to be at higher risk, according to a Federal Reserve Bank of San Francisco study. “Our results suggest that property values have been more adversely impacted in recent years by being close to past wildfires than was the case previously,” economists Leila Bengali, Fernanda Nechio and Stephanie Stewart wrote in a paper published Monday on the Fed bank’s website. While the effect of the proximity may be relatively small now, the economists warned “this pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue,” the study cautioned. Read the court decision
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Review the Terms and Conditions of Purchase Orders- They Could be Important!

February 15, 2018 — Christopher G. Hill – Construction Law Musings
There are many moving parts on a commercial construction project. These range from site surveys to weather events to ordering materials. On most large construction projects, the prime contract and subcontracts are generally drafted ahead of time and hopefully reviewed by both in house personnel and an experienced construction attorney. However, there are situations, particularly where the contract may be one for service or provision of materials where individual purchase orders are issued as opposed to what would likely be looked at as a long form subcontract. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC

Congratulations to Haight Attorneys Selected for the 2024 Edition of Best Lawyers and Best Lawyers: Ones to Watch

September 11, 2023 — Haight Brown & Bonesteel LLP
Best Lawyers and Best Lawyers: Ones to Watch – 2024 Edition Best Lawyers 2024 Edition

Bruce Cleeland
Peter Dubrawski
Denis Moriarty
Theodore Penny

Best Lawyers: Ones to Watch 2024 Edition

Frances Brower
Kyle DiNicola
Kristian Moriarty
Arezoo Jamshidi
Josh Maltzer
Philip McDermott
Patrick McIntyre
Annette Mijanovic
Kathleen Moriarty
Bethsaida Obra-White

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Reprinted courtesy of Haight Brown & Bonesteel LLP

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES