FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Court Broadly Interprets Insurance Policy’s “Liability Arising Out of” Language

December 20, 2017 — Garret Murai - California Construction Law Blog
In McMillin Mgmt. Servs. v. Financial Pacific Ins. Co., Cal.Ct.App. (4th Dist.), Docket No. D069814 (filed 11/14/17), the California Court of Appeal held that the term “liability arising out of,” as used in an ongoing operations endorsement, does not require that the named insured’s liability arise while it is performing work on a construction project. In the McMillin case, the general contractor and developer (McMillin) contracted with various subcontractors, including a concrete subcontractor and stucco subcontractor insured by Lexington Insurance Company. Both subcontractors performed their work at the project prior to the sale of the units. The Lexington policies contained substantively identical additional insured endorsements that provided coverage to McMillin “for liability arising out of your [the named insured subcontractor’s] ongoing operations performed for [McMillin].” Several homeowners filed suit against McMillin, alleging that they had discovered various defective conditions arising out of the construction of their homes, including defects arising out of the work performed by Lexington’s insureds. Lexington argued that there was no potential for coverage in McMillin’s favor under the endorsements because there were no homeowners during the time that the subcontractors’ operations were performing work at the project (the homes closed escrow after the subcontractors had completed their work); thus, McMillin did not have any liability for property damage that took place while the subcontractors’ operations were ongoing. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rose Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Fifth Circuit Reverses Insurers’ Summary Judgment Award Based on "Your Work" Exclusion

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Application of the facts to the "your work" exclusion was the key to resolving coverage issued in Am. Home Assurance Co. v. Cat Tech L.L.C., 2011 U.S. App. LEXIS 21076 (5th Cir. Oct. 5, 2011).

Ergon Refining, Inc. hired Cat Tech L.L.C. to service a hydrotreating reactor. In January 2005, Cat Tech replaced certain parts in the reactor. After Cat Tech finished the job and left, Ergon noticed a high pressure drop in the reactor, forcing it to be shut down. Cat Tech returned in February 2005, removed, repaired and replaced the damaged parts, and loaded new parts. After completion, a second large pressure drop occurred during the reactor’s start-up process. The reactor was shut down until October 2005, when Ergon hired a different contractor to perform the repair work. Additional damage to the reactor was found.

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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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Chicago Developer and Trade Group Sue City Over Affordable Housing Requirements

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
The Chicago Tribune reported that Hoyne Development and Home Builders Association of Greater Chicago are suing the city of Chicago, claiming that the “Affordable Requirements Ordinance is unconstitutional because it involves the taking of private party without ‘just compensation,’ violating the Fifth Amendment.” Shannon Breymaier, spokeswoman for Chicago Mayor Rahm Emanuel, however, disputes the claims, and told the Chicago Tribune in an email that the city planned to “defend the ordinance vigorously.” Read the court decision
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Building Supplier Sued for Late and Defective Building Materials

December 04, 2013 — CDJ STAFF
The Lawson Henry Co. bought an unfinished townhome in Snowshoe, West Virginia with the intent of getting it finished and sold. To reach that goal, they contracted with O.C. Cluss Professional Services and O.C. Cluss Lumber Co. to provide them with building materials. According to the plaintiff, Cluss failed to deliver the building materials by the agreed-on date, causing the plaintiff to miss out on the peak season for selling the townhome. The suit also alleges that in addition to materials being delivered late, some were defective or of poor quality. The Lawson Henry Co. is charging Charles C. Cluss and his companies of breach of contract. Read the court decision
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BWB&O Partner Tyler Offenhauser and Associate Lizbeth Lopez Won Their Motion for Summary Judgment Based on the Privette Doctrine

October 17, 2023 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is excited to share that Newport Beach Partner Tyler D. Offenhauser and Associate Lizbeth E. Lopez recently won their Motion for Summary Judgment based on the Privette Doctrine! BWB&O’s Client is a local provider of fire safety services and equipment offering nationwide services. The Client was sued in an action pertaining to a claimed dangerous condition of its electrical panel resulting in an arc flash explosion on the Client’s leased property. The Plaintiff asserted that BWB&O’s Client allowed the existence of a defective, outdated, and dangerous electrical panel to exist when Plaintiff performed professional electrical services on BWB&O’s Client’s property as an independent contractor electrician. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Can’t Get a Written Change Order? Document, Document, Document

August 29, 2018 — Todd M. Heffner - Smith Currie
Most construction contracts require that any changes to the work be made formally, in writing, via a change order, work directive, or similar written document. Frequently, however, changes to the work or extra work are communicated orally by the architect, engineer, or owner’s representative, instead of in writing. What is the contractor to do in such a situation? The best option is follow the provisions of the contract and demand a written change order before performing changed work. Unfortunately, the realities of construction sometimes make it impossible to get the changes in the proper format in a timely manner. Savvy contractors will maintain schedule and produce written documentation of the change in lieu of a formal change order or directive. But many contractors will simply proceed with the changed work, relying on the owner, architect, or engineer to do the right thing and stand by their oral instructions. Read the court decision
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Reprinted courtesy of Todd M. Heffner, Smith Currie
Mr. Heffner may be contacted at tmheffner@smithcurrie.com

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Virginia General Assembly Tweaks Pay-if-Paid Ban

April 03, 2023 — Christopher G. Hill - Construction Law Musings
Last year, the Virginia General Assembly passed into law a ban on the so-called pay-if-paid clauses, effective January 1, 2023. I shared my thoughts and concerns with the legislation as drafted at the time of its passage. During this most recent legislative session, and among some other construction-related bills, the General Assembly sought to clarify its past enactment. The enrolled bill fills in certain gaps in the law as follows:

• For both private and public contracts, the General Contractor, if it has good reason to withhold any payment, now has a maximum of 50 days from receipt of a proper invoice to notify its subcontractor of the reason for the withholding, including the contractual noncompliance, the amount to be withheld, and the lower-tier subcontractor responsible for the contractual noncompliance.
• For private contracts, the Owner now has 45 days in which to provide any written notice of intention to withhold payment. This notice must include the specific contractual non-compliance and the dollar amount to be withheld. NB- Owners do not need to specify the subcontractor responsible for the non-compliance.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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As Florence Eyes East Coast, Are You Looking At Your Insurance?

October 02, 2018 — Michael S. Levine & Andrea DeField - Hunton Insurance Recovery Blog
Hurricane Florence will affect the U.S. east coast later this week with significant damage to property and resulting business disruption. Businesses far-removed from the impact zone also will be affected as manufacturing, retail, travel and supply chains, among other industries, are disrupted by the physical damage. For those in the impact zone, knowing the fundamentals about your property insurance is critical. For those in remote locations, now is a good time to refresh yourself as well, since post-storm disruptions and losses require prompt notice to insurers and fast action to help mitigate any resulting loss. A failure on either front could jeopardize coverage. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Andrea DeField, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. DeField may be contacted at adefield@HuntonAK.com Read the court decision
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