FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Policy Sublimit Does Not Apply to Business Interruption Loss

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Refusing to give the sublimit in a flood policy an expansive reading, the court found that the sublimit did not apply to business interruption loss. Federal-Mogul Corp. v. Ins. Co. of Pa., 2015 U.S. Dist. LEXIS 137394 (E.D. Mich. Oct. 8, 2015). The insured's facility in Thailand was damaged by flood. The parties stipulated that the insured suffered a loss of $64,500,000, which included $39,406,467 in property damage and $25,093,533 in time element loss (i.e., economic loss due to an inability to operate normally). The insurer paid $30 million, stating that the High Hazard flood zone provision in the policy limited the amount owed under the policy. The insured argued the High Hazard sublimit applied only to physical loss or damage caused by the flood, and not to time element loss. Therefore, the insured was entitled to judgment on its time element loss claim for $29,093,533. The insurer argued it was entitled to judgment as a matter of law because the High Hazard sublimit applied to all loss caused by flood, including time element loss. 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

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Real Estate & Construction News Roundup (1/16/24) – Algorithms Affect the Rental Market, Robots Aim to Lower Construction Costs, and Gen Z Struggle to Find Their Own Space

February 12, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, New York’s Prompt Payment Act comes into question, vacancy rates rise in commercial office space, the Biden administration applies project labor agreements on certain federal construction projects, and more!

• The Biden administration announced the implementing on an executive order that will require project labor agreements on federal construction projects costing $35 million or more, likely resulting in PLAs being required on a majority of large federal jobs. (Zachary Phillips, Construction Dive)
• Boeing plans to increase quality inspections of its 737 Max 9 aircraft, following a series of manufacturing flaws that have led some airlines to hold off aircraft purchases or go with its European rival, Airbus. (Ken Sweet, AP)
• 31% of Generation Z (generally defined as those born between 1996 and 2012) adults live at home with parents because they can’t afford to buy or rent their own space. (Jessica Dickler, CNBC)

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

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Loose Bolts Led to Sagging Roof in Construction Defect Claim

February 10, 2012 — CDJ STAFF

Though the sagging roof is neither leaking nor a safety hazard, the town of Waynesville, North Carolina is suing the builder of its new fire station, as reported in the Smoky Mountain News. The engineers who examined the roof found a substantial number of loose bolts in the roof trusses. Additionally, the trusses themselves have become bent.



Tom Galloway, Waynesville’s Town Manager said “it needs to be remedied and fixed.” He said that the builder, Construction Logic, “never indicated a willingness to fix the roof.” The town is seeking the cost of repair, which Galloway estimated could be $400,000, and an additional $30,000 in damages. The suit states that Construction Logic failed to follow the plan specifications for the roof.

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Social Engineering Scams Are On the Rise – Do I Have Insurance Coverage for That?

June 01, 2020 — Jeffrey Dennis & Heather Whitehead - Newmeyer Dillion
Cyber attackers all know that the majority of organizations are currently working from home due to the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic. And, as would be expected, social engineering scams are on the rise. Nonetheless, there may be limitations in your cyber liability insurance policy for these types of claims. It is advisable to take the initiative to review such insurance policies in detail for coverage considerations prior to the occurrence of any cyber incident. And, of course, protect your business from attacks by engaging in precautious cyber safety efforts. What Is Social Engineering? Social engineering refers to various means to manipulate individuals in the online environment so that they divulge sensitive, personal information, such as banking information, which may include account numbers and passwords. This can also take the form of receiving a request to transfer funds to what the victim believes is another employee, trusted financial information or other party with whom the person has a business relationship with. Unfortunately, however, those funds ultimately are received by the engineer of the cyber attack. Reprinted courtesy of Jeffrey M. Dennis, Newmeyer Dillion and Heather Whitehead, Newmeyer Dillion Mr. Dennis may be contacted at jeff.dennis@ndlf.com Ms. Whitehead may be contacted at heather.whitehead@ndlf.com Read the court decision
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The Impact of the IIJA and Amended Buy American Act on the Construction Industry

May 23, 2022 — Chad Theriot & Stan Milan - ConsensusDocs
Contractors working on federally funded construction projects need to be aware of the new Infrastructure Investment and Jobs Act (IIJA) and amendments to the Buy American Act (BAA) which have expanded the requirement that contractors use domestic goods and materials on their projects. Failure to consider these requirements could have far-reaching impacts. Overview of Domestic-Procurement Laws and Regulations A number of domestic-preference laws exist today, which generally require that certain goods purchased with federal funds must be produced primarily in the United States. Projects affected include Department of Transportation (DOT)-funded highways, public transportation, airports, aviation, and rail, and Environmental Protection Agency (EPA)-funded water infrastructure initiatives, among others. Reprinted courtesy of Chad Theriot, Jones Walker (ConsensusDocs) and Stan Millan, Jones Walker (ConsensusDocs) Mr. Theriot may be contacted at ctheriot@joneswalker.com Mr. Millan may be contacted at smillan@joneswalker.com Read the court decision
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Homeowner Alleges Pool Construction Is Defective

November 13, 2013 — CDJ STAFF
A Texas man is suing the contractor who built his pool alleging that within months of construction, the pool began to crack and leak water. According to the lawsuit from Larry Merendino, when the concrete contractor, PC Construction, removed some concrete, they found PVC joints that were not glued properly and were leaking. Mr. Merendino is suing the company and five other firms, claiming that the construction of his pool was negligent and that the companies operated by deceptive trade practices. Read the court decision
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Mass. Gas Leak Follows NTSB Final Report, Call for Reforms

November 24, 2019 — Johanna Knapschaefer - Engineering News-Record
A major natural-gas leak forced Lawrence, Mass., residents to evacuate their homes early on Sept. 27. National Grid cut power to more than 1,300 customers to avoid another disaster like last year’s natural-gas explosions and fires in Lawrence and two other towns north of Boston. The leak came just days after federal officials called for changes to national pipeline regulations as they released a final report on the causes of the Sept. 13, 2018, disaster. Reprinted courtesy of Johanna Knapschaefer, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Where Mechanic’s Liens and Contracts Collide

July 02, 2018 — Christopher G. Hill - Construction Law Musings
Today at Construction Law Musings, we’re back to a discussion of mechanic’s liens. This past week, the Loudoun County Circuit Court here in Virginia had an opportunity to discuss the interaction between mechanic’s liens, contracts and the law of fixtures. In TWP Enters. v Dressel, the Court considered a provision of a contract between the TWP Enterprises, a supplier of materials to the construction project, and the builder for the defendant. The provision between the supplier and builder essentially stated that until such time as TWP’s materials were paid for in full, TWP kept title to them (check out the case link above for the full text of the provision). Needless to say, the builder did not pay and TWP filed a mechanic’s lien then sued to enforce that lien. The owners demurred to the complaint and asked the Court to dismiss the claim on several grounds, among them that the contractual provision described above precluded the enforcement of the lien because TWP retained title to the materials despite the fact that they had been incorporated into the structure of the building and were therefore part of the realty. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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