Fairfield Connecticut Building Expert Directory

Business Risk Exclusions (j) 5 and (j) 6 Found Ambiguous

April 22, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Reversing the district court's grant of summary judgment in favor of the insurer, the Tenth Circuit found that exclusions (j) 5 and (j) 6 were ambiguous as applied to the facts of the case. MTI, Inc. v. Emplrs. Ins. Co., 2019 U.S. App. LEXIS 2543 (10th Cir. Jan. 25, 2019). Western Farmers Electrical Cooperative (WFEC) owned cooling towers which were serviced by MTI, Inc. Wausau provided a CGL policy to MTI. In 2011, MTI found that anchor bolts in Cooling Tower 1 were corroded. WFEC hired MTI to make repairs by installing new anchor castings with anchor bolts and anchor adhesive. On May 23, 2011, MTI employees removed all of the corroded anchor bolts in Tower 1. Because the adhesive applicator had not yet arrived, MTI did not immediately install new anchor bolts. On the night of May 24, strong winds struck the tower, causing it to lean and several structural components broke. Due to the extent of the structural damage, removal and replacement of the tower was determined to be the only viable option. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

A Contractual Liability Exclusion Doesn't Preclude Insurer's Duty to Indemnify

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Traub Lieberman Straus & Shrewsberry LLP's blog, "[I]n Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20737 (5th Cir. October 29, 2014), the United States Court of Appeals for the Fifth Circuit withdrew its prior ruling and held that the contractual liability exclusion did not preclude an insurer’s duty to indemnify its insured for an award resulting from the insured’s defective construction." The case involved the Crownovers who were awarded damages for "Arrow's breach of paragraph 23.1 of the construction contract." However, Arrow then filed for bankruptcy. Mid-Continent, Arrow's insurer, denied Crownovers' demand for recovery, stating that "the contractual liability exclusion applied because the arbitrator’s award to the Crownovers was based only on Arrow’s breach of paragraph 23.1 of the construction agreement." The court agreed with Mid-Continent. Subsequently, the fifth court of appeals "reversed the district court’s ruling and awarded summary judgment in favor of the Crownovers." Read the court decision
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Decaying U.S. Roads Attract Funds From KKR to DoubleLine

January 28, 2015 — Romy Varghese and Mark Niquette – Bloomberg
(Bloomberg) -- Investors such as Jeffrey Gundlach’s DoubleLine Capital and KKR & Co. are looking at crumbling U.S. roads -- and like what they see. DoubleLine, which oversees $64 billion, plans to start its first fund to finance infrastructure, Gundlach said this month. KKR, the private-equity firm led by Henry Kravis and George Roberts, signed a contract in December to manage the water system in Middletown, Pennsylvania, with Suez Environnement Co.’s United Water unit. Its debut infrastructure fund started buying assets in 2011, Bloomberg News reported in April. The companies are partnering with states and localities fed up with federal inaction to jump-start transit projects and revamp public works suffering from decades of neglect. Such an alliance in Pennsylvania, home to the nation’s highest number of deficient bridges, is letting the state replace 558 crossings more cheaply and more quickly. Reprinted courtesy of Romy Varghese, Bloomberg and Mark Niquette, Bloomberg Ms. Varghese may be contacted at rvarghese8@bloomberg.net; Mr. Niquette may be contacted at mniquette@bloomberg.net Read the court decision
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Additional Insured Not Entitled to Coverage for Named Insured's Defective Work

September 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024). The City of Chicago contracted with Walsh Construction Company to manage the construction of a canopy and curtain wall system at O'Hare International Airport. Walsh entered into a contract with Carlo Steel Corporation, which in turn subcontracted with LB Steel, LLC to fabricate and install steel columns to support the wall and canopy. LB Steel listed Walsh as an additional insured in its commercial general liability policies. LB Steel's insurers were St. Paul, Travelers, and Charter Oak Fire Insurance Company. Several years into the project, the City discovered cracks in the welds of the steel columns and sued Walsh. Walsh, in turn, sued LB Steel under its subcontract. Walsh also asked LB Steel's insurers to defend it in the City's lawsuit, but they refused to do so. Walsh eventually secured a judgment against LB Steel, but LB Steel declared bankruptcy. Walsh then sued LB Steel's insurers to recover the costs of defending against the City's lawsuit and indemnification for any resulting losses. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Manhattan to Add Most Office Space Since ’90 Over 3 Years

June 18, 2014 — Jonathan LaMantia – Bloomberg
Manhattan is poised to add the most office space in any three-year period since 1990 as projects including buildings at Hudson Yards and the World Trade Center site are completed, the New York Building Congress said. The borough, home to the largest U.S. office market, probably will add 9 million square feet (836,000 square meters) of office space at nine development sites from last year through 2015, according to the organization, which promotes construction in the New York City area. An additional 10 million square feet at six buildings is likely to become available from 2016 through 2018, the group said in a statement today. “It’s a vote of confidence in the market, which we think is long overdue,” Richard T. Anderson, president of the New York Building Congress, said in a telephone interview. “As a global center of finance and office-related functions, the city needs to regenerate its office space.” Read the court decision
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Reprinted courtesy of Jonathan LaMantia, Bloomberg
Mr. LaMantia may be contacted at jlamantia1@bloomberg.net

Federal Court Rejects Insurer's Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy

April 03, 2013 — Tred Eyerly - Insurance Law Hawaii
The federal district court disagreed with the insurer's strident claim that Wisconsin followed the manifestation trigger for deciding coverage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013). Several years after their house was constructed, the insureds discovered water damage. Chubb denied the claim. The insureds sued. Chubb moved for summary judgment and argued that the loss first manifested many years after its policy expired. Further, Chubb argued that Wisconsin followed the manifestation trigger for first-party property insurance, meaning that only the insurance policy in effect when the loss manifested was required to respond. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

China Construction Bank Sued in US Over Reinsurance Fraud Losses

June 21, 2024 — Robert Burnson - Bloomberg
China Construction Bank Corp., the nation’s third-largest commercial lender, was accused in a US lawsuit of enabling a massive fraud in the reinsurance industry that left companies with “monumental losses” and sinking stock prices. The bank allowed employees to conspire with Israeli insurance startup Vesttoo Ltd. to sell reinsurance policies that weren’t real, according to a complaint filed late Thursday by the Porch Group in Manhattan federal court. Vesttoo filed for Chapter 11 bankruptcy in August after it was accused of using some $2 billion of fraudulent letters of credit. The Porch Group said that its unit Homeowners of America Insurance Co. lost tens of millions of dollars when its purported $300 million letter of credit proved worthless. “Not only did HOA incur colossal losses, but news of its exposure to the fraud perpetrated by Vesttoo and CCB shocked the market and imposed severe losses on Porch Group’s shareholders as its stock price plummeted,” according to the suit. Read the court decision
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Reprinted courtesy of Robert Burnson, Bloomberg

Hawaii Federal Court Grants Insured's Motion for Remand

January 12, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court, district of Hawaii, recently granted the insured's motion for remand. Catholic Foreign Mission Society of Am., Inc. v. Arrowood Indem. Co., Civ. No. 14-00420, Order Granting Plaintiff's Motion for Remand and Denying Defendants' Motion to Dismiss or Transfer (D. Haw. Dec. 30, 2014) [Order here]. [Full disclosure - our office represents the insured, Maryknoll]. Maryknoll was sued in several lawsuits filed in Hawaii state court by victims of alleged sexual abuse occurring as far back as the 1950s by members of the clergy. Maryknoll was insured during these periods under liability policies issued by various carriers. The successor of Royal Globe Insurance Company, Arrowood Indemnity Company, agreed to defend some of the underlying lawsuits, but declined to defend others. The Travelers Companies, Inc. refused to defend. 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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