Fairfield Connecticut Building Expert Directory

Property Damage to Non-Defective Work Is Covered

February 18, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Hampshire Supreme Court found some of the property damage evolving from the insured's portion of the work was covered under its liability policy. Cogswell Farm Condo. Ass'n v. Tower Group, Inc., 2015 N.H. LEXIS 3 (N.H. Jan. 13, 2015). Lemery Building Company, Inc. constructed and developed 24 residential condominium units. After units were sold, the Cogswell Farm Condominium Association sued Lemery, asserting that the "weather barrier" components of the units were defectively constructed and resulted in damage to the units due to water leaks. Cogswell then sued its insurer, Tower Group, Inc., seeking a declaratory judgment that its claims against Lemery were covered. The trial court eventually determined that exclusions J (1) and J (6) both applied to exclude coverage. Exclusion J (1) excluded coverage for "property damage" to property that Lemery "owns, rents, or occupies." Exclusion J (6) excluded coverage for property damage to "[t] hat particular part of any property that must be restored, repaired or replaced because [Lemery's] work was incorrectly performed on it." 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

Forget Palm Springs—Santa Fe Is the New Mecca for Modern Architecture

November 19, 2021 — James Tarmy - Bloomberg
The writer Helen Thompson had been a lifelong visitor to Santa Fe, but when she arrived at Georgia O’Keeffe’s home at Ghost Ranch 30 years ago, “I was shocked,” Thompson says. “Everything there was modern: Her furniture was modern; her light fixtures were modern; her art, of course, was modern. And in this rustic setting, the landscape is so powerful, it was all so elemental. That shock stayed with me.” It was an experience, Thompson says, that led her to the conclusion that Santa Fe, long understood as a city filled with vernacular, decorative architecture, was ripe for a rethinking. “I kept wondering, why does something like that look so right here?” she says. “The landscape is so distinctive, and so not-modern, and yet these very precise pieces of furniture looked so right.” Now, with her new book Santa Fe Modern: Contemporary Design in the High Desert (Monacelli, $50), Thompson has cracked the code. “Modern ideas are site-specific, and tied into what’s right for the landscape and the environment,” she says. Naturally, she continues, this conceptual framework works well in a place like New Mexico, where the dramatic horizon meets an even more dramatic sky. Read the court decision
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Reprinted courtesy of James Tarmy, Bloomberg

Cyber Security Insurance and Design Professionals

March 29, 2017 — David Adelstein – Florida Construction Legal Updates
Cyber security insurance is a relatively new insurance product that has probably become more popular and important in today’s digital age. Think about it. Almost everything is created, transmitted, shared, and stored digitally. Companies utilize cloud-based platforms to store documents, share documents, and transmit documents. Documents are transmitted via e-mail. Documents are created electronically with various software programs. And, finally, technology has made it convenient to create, access, store, share, and transmit documentation digitally through smartphones, tablets, or laptops (and various applications) – so technology enables things to be done remotely in the moment to maximize efficiency and production. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Intricacies of Business Interruption Claim Considered

January 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Reaching into the weeds to analyze a business interruption claim, the Massachusetts Court of Appeals determined the cost of ordinary payroll could be included in the calculation of net profit or loss in determining business loss income when business is resumed quickly after a fire. Verrill Farms, LLC v. Farm Family Cas. Ins. Co., 2014 Mass. App. LEXIS 145 (Mass. App. Ct. Nov. 4, 2014). The insured suffered a fire loss at its farm store. Within two days, the business was reopened at alternate locations at reduced capacity. Within a month, the business had resumed nearly full capacity in temporary locations. No employees were laid off. This allowed the insured to maintain its business and generate income. The insured submitted a claim for loss of business income, based on its loss of net income in the year after the fire. The insurer paid a sum considerably less than the claim based upon its interpretation of what expenses could be included in a calculation of net profit or loss in order to determine loss of business income. The trial court held that the insurer did not have to pay the cost of ordinary payroll beyond the sixty-day limit, and granted summary judgment in the insurer's favor. 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

2015-2016 California Labor & Employment Laws Affecting Construction Industry

October 28, 2015 — Steven M. Cvitanovic, David A. Harris, & Kristen Lee Price – Haight Brown & Bonesteel LLP
Earlier this month, California Governor Jerry Brown signed dozens of bills that affect employers. Many of these bills have special significance to the construction industry. Here is a brief review: Assembly Bill 219 – Prevailing Wages for Concrete Delivery on Public Projects AB 219 continues California’s aggressive expansion of prevailing wages. This bill expands the definition of “public works” for purposes of state prevailing wage law to include the hauling or delivery of ready-mixed concrete for a public works project. Previously, delivery drivers hired by a material supplier were exempted from the prevailing wage. Before AB 219, labor law made a distinction between “suppliers” and “contractors.” Thus, ready-mixed concrete was held to be a finished product, and treated differently from a product that was assembled on site. The new law eliminates this distinction. Reprinted courtesy of Haight Brown & Bonesteel attorneys Steven M. Cvitanovic, David A. Harris and Kristen Lee Price Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Ms. Price may be contacted at kprice@hbblaw.com Read the court decision
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Housing Starts in U.S. Climb to an Almost Eight-Year High

August 19, 2015 — Sho Chandra – Bloomberg
New-home construction in the U.S. climbed in July to the highest level in almost eight years, indicating the industry will pick up in the second half of the year. Residential starts rose 0.2 percent to a 1.21 million annualized rate, the most since October 2007, from a 1.2 million pace in the prior month that was higher than previously estimated, a Commerce Department report showed Tuesday in Washington. The median forecast of 77 economists surveyed by Bloomberg was 1.18 million. A drop in permits, a proxy for future construction, signals additional gains will take time to develop. Rising employment and historically low mortgage rates are enticing buyers, while increasing prices induced by a lack of homes on the market is an incentive to start new developments. Data showing builder sentiment at a decade high in August underscores the view that the housing rebound will stay on track even as the Federal Reserve is poised to boost borrowing costs. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

Differing Site Conditions: What to Expect from the Court When You Encounter the Unexpected

September 05, 2022 — Margarita Kutsin - Ahlers Cressman & Sleight
[1]Seattle Tunnel Partners (“STP”), a joint venture of Dragados USA and Tutor Perini, entered into a $1.4 billion contract with the Washington State Department of Transportation (“WSDOT”) to replace the Highway 99 viaduct. In December 2013, a tunnel boring machine (“TBM”) bearing the moniker “Bertha,” then the largest TBM ever built, measuring 425 feet long and 57 feet in diameter, struck an underground pipe. Shortly after the impact, Bertha overheated and eventually could no longer make forward progress. A massive repair effort ensued causing a 2.5-year delay in reaching substantial completion. WSDOT sued STP for the delay, seeking liquidated damages of $57 million. In response, STP argued its delay was excusable because it was caused by Bertha’s impact with the pipe, and the steel well casing was a Differing Site Condition (DSC) undisclosed in the contract documents. STP asserted counterclaims against WSDOT, alleging breach of contract and seeking $300 million in damages. Ultimately, a jury found that the steel well casing on the pipe was not a DSC, foreclosing STP’s excusable delay defense and counterclaims, and resulting in a $57 million verdict, plus interest, in favor of WSDOT. Read the court decision
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Reprinted courtesy of Margarita Kutsin, Ahlers Cressman & Sleight
Ms. Kutsin may be contacted at margarita.kutsin@acslawyers.com

Homebuilder Immunity Act Dies in Committee. What's Next?

May 07, 2015 — Jesse Howard Witt – Acerbic Witt
For the third straight year, the Colorado legislature has rejected efforts by the homebuilders’ lobby to provide virtual immunity for construction defects and property damage. Late Monday night, the House committee on State, Military, and Veterans Affairs voted down Senate Bill 15-177 on straight party lines. All six Democrats on the committee voted against the bill, while all five Republicans voted for it. Similar bills had died in the Senate in 2013 and 2014. In theory, SB177 would have boosted multifamily construction by shielding builders from liability for negligent work. Unlike the 2013 bill, this version never expressly stated that it was providing homebuilders with immunity, but it would have made it nearly impossible for community associations to take action against a builder who refused to honor a warranty. And even if the homeowners managed to overcome the procedural obstacles, the bill would have forced their claims into costly, private arbitration. Proponents hoped that, by eliminating responsibility for negligent work and property damage, they could entice homebuilders to construct more cheap condominiums. Read the court decision
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Reprinted courtesy of Jesse Howard Witt, Acerbic Witt
Mr. Witt welcomes comments at www.wittlawfirm.net

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