FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Excess-Escape Other Insurance Provision Unenforceable to Avoid Defense Cost Contribution Despite Placement in Policy’s Coverage Grant

April 20, 2016 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel, LLP
In Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co. (No. C072500; filed 4/11/16), a California appeals court found an “other insurance” provision unenforceable to excuse defense contribution between successive primary insurers, regardless of the fact that the limiting language was contained in the policy’s coverage grant. Certain Underwriters and Arch each insured Framecon over successive policy periods. Framecon was sued by a developer in a series of construction defect actions, and tendered to both insurers. Underwriters agreed to defend under a reservation of rights but Arch declined, citing the wording of its insuring agreement, which stated: Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Is Solar the Next Focus of Construction Defect Suits?

June 28, 2013 — CDJ STAFF
There’s been a rapid growth in the sale of solar panels, and that’s lead some industry observers to wonder if manufacturers have been cutting back on quality. Current use of solar is six times what it was in 2008, with more than forty percent of that in the last year. The growth shows no sign of stopping, either. The Solar Energy Industry Association expects the amount of power generated by solar to increase by more than two-thirds in 2013. With the oversupply, some fear that companies are relaxing their quality control. The New York Times found that there were widespread problems of defective units in solar cells, chiefly those manufactured in China. The Times article noted that at two solar plants in Spain, defect rates reached 34.5 percent. Some industry observers disagree. The Insurance Journal quoted Andy Klump, the CEO of Clean Energy Associates, a Shanghai firm that provides quality assurance in the solar industry, who said that if a business had a 34 percent failure rate, “they would be out of business in a heartbeat.” Mr. Klump described the Times article as “not realistic.” If the Times is right, Scott Turner, a construction insurance attorney, feels that the industry should ready itself for “a wave of large lawsuits.” Turner feels that “this litigation wave could make the battles over liability and insurance coverage for Chinese drywall seem like a small claims dispute.” Read the court decision
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California Court Confirms Broad Coverage Under “Ongoing Operations” Endorsements

December 01, 2017 — Kevin C. Brantley - Payne & Fears
A California Court of Appeal has confirmed that additional insured endorsements (“AIE”) granting coverage for liability arising out of a named insured’s “ongoing operations,” and in effect during those “ongoing operations,” do not require that the liability arise while the named insured is performing work. McMillin Mgmt. Servs., L.P. v. Financial Pacific Ins. Co., Cal. Ct. App., November 14, 2017, Case No. D069814. In McMillin, a construction defect insurance coverage action, Lexington Insurance Company argued that McMillin had no liability to homeowners until after their homes closed escrow; thus, McMillin did not face liability while the named insureds’ work was ongoing. The Court of Appeal rejected Lexington’s argument, finding that the “ongoing operations” AIEs provide only that McMillin’s liability “be ‘linked’ through a ‘minimal causal connection or incidental relationship’ with [the named insureds’] ongoing operations.” (internal citations omitted). The Court reasoned that Lexington had not established that all of the damage in the underlying action occurred after the named insureds completed their work, thus Lexington had not established as a matter of law that there was no potential for coverage for McMillin under the policies. Read the court decision
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Reprinted courtesy of Kevin C. Brantley, Payne & Fears
Mr. Brantley may be contacted at kcb@paynefears.com

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Apartments pushed up US homebuilding in September

October 22, 2014 — Josh Boak – Bloomberg Businessweek
WASHINGTON (AP) — Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding. Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction — a volatile category — which increased 18.5 percent after plunging in August. The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months. Read the court decision
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Reprinted courtesy of Josh Boak, Bloomberg Businessweek

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Building and Landscape Standards Enacted in Response to the Governor's Mandatory Water Restrictions Dealing with the Drought and Possible Effects of El Niño

January 06, 2016 — Clayton T. Tanaka – Newmeyer & Dillion, LLP
Earlier this year, with California facing one of the most severe droughts on record, Governor Edmund G. Brown, Jr. issued Executive Order B-29-15 (the “Executive Order”) aimed at conserving water supplies and reducing water waste throughout the State of California. For the first time in California’s history, this Executive Order directed state agencies to implement immediate measures to save water, increase enforcement against water waste, invest in new technologies, and streamline government response to ongoing drought conditions. In response, various state agencies proposed emergency changes to existing building and landscape standards in the California Green Building Standards Code (California Code of Regulations, title 24, part 11) (“CALGreen”) and the Model Water Efficient Landscape Ordinance (California Code of Regulations, title 23, part 11) (“Model Ordinance”) pertaining to the use of potable water. In July, the California Building Standards Commission and the California Water Commission adopted the proposed changes after public review and comment. Read the court decision
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Reprinted courtesy of Clayton T. Tanaka, Newmeyer & Dillion, LLP
Mr. Tanaka may be contacted at clay.tanaka@ndlf.com

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Design Firm Settles over Construction Defect Claim

July 31, 2013 — CDJ STAFF
A Pennsylvania township has announced that it has reached a settlement with the architectural firm that designed its administration building. Cee Jay Frederick Associates will be paying than $1.05 million to settle claims of defects in the design of the building. West Whiteland’s administration building was completed in July 2007. The first leaks were noticed in November and December 2008. In response, the township stopped payments to the contractor, Magnum, Inc. Magnum sued, claiming that their work was not to blame for the leaks. Magnum joined the township in suing the design firm. Although Cee Jay Frederick Associates will be paying the township to settle the claim, West Whiteland will be paying $75,000 of that back to the firm to settle outstanding bills that had been withheld during litigation. Read the court decision
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Top 10 Construction Contract Provisions – Changes and Claims

November 03, 2016 — James R. Lynch – Ahlers & Cressman PLLC
This is the seventh post in our “Top 10 Construction Contract Provisions” series. Prior posts discussed Price and Payment, Liquidated Damages, Consequential Damages – Part I and Part II, Indemnity, Scope of Work, and Flow-Down Provisions. Today’s topic, Changes and Claims, is a contender for the top spot on our list, for both day-to-day impact on the job and importance in disputes. In fact, these provisions[i] are so variable and are involved in so many reported construction law decisions, that this post will not attempt to survey all their various forms, uses, or potential legal ramifications, but instead focuses on bottom line “best practices”—questions to consider as a general contractor, subcontractor, or owner when drafting, negotiating, or managing the Changes and Claims provisions of a contract. There is no “ideal” here, and the changes and claims procedures should be suited to the project, owner, contractor(s), likely issues, and other project-specific considerations. Key considerations include the following: 1. How prescriptive is the Change Order process? At one end of the spectrum, a Change Order provision may include requirements for written direction and request by the owner and formal response by the contractor, with pricing and specific supporting data or documentation, in addition to strict timelines for response, execution, and performance, precise methods to determine the resulting contract adjustment, limits on the type or extent of adjustment, or terms defining the effect of a signed Change Order, e.g. to what extent related claims or impacts might be extinguished. At the other end of the spectrum, the Change Order provision might simply recognize that the owner may direct changes, and the parties intend to document the directions and resulting compensation in a Change Order, with no further elaboration. There is no universal ideal on this spectrum. A highly defined and prescriptive process may be appropriate for a complex, high value, multi-stakeholder project on which significant changes are likely. The same process would be an inefficient waste of resources on a small and simple project where significant changes are unlikely and the parties would be unlikely to comply with more formal procedures. Read the court decision
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Reprinted courtesy of James R. Lynch, Ahlers & Cressman PLLC
Mr. Lynch may be contacted at jlynch@ac-lawyers.com

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Designers George Yabu and Glenn Pushelberg Discuss One57’s Ultra-Luxury Park Hyatt

July 30, 2014 — Jennifer Parker – Bloomberg
One57 might just be the hottest -- or at least the most expensive -- address in New York City. 

The $375 million skyscraper currently piercing its blue-glass presence into Manhattan's midtown skyline is home not only to 94 private condos (two of which have already sold for $90 million); it also hosts a brand new Park Hyatt hotel, which opens this August. 

 Eight years in the making, this Hyatt is the first ultra-luxury hotel New York has seen since the Mandarin Oriental opened in 2003. It's intended to be a New York icon. So, naturally, Hyatt hired two Canadian guys to design it. 

Meet George Yabu and Glenn Pushelberg, the dynamic couple who met as college students in Toronto in 1972, and decided to launch design firm YabuPushelberg. Now, they're earning millions per project to design luxury hotels, restaurants, and residences all over the world. Read the court decision
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Reprinted courtesy of Jennifer Parker, Bloomberg

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