FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Company Head Pleads Guilty to Insurance and Tax Fraud

December 20, 2012 — CDJ STAFF
The former head of Orients Construction Company and of Melrose Construciton Company, Herlindo Garcia-Merlos, has entered a guilty plea to charges that the gave false informoation to his insurer, New Jersey Manufacturers Insurance Group, for more than three years in order to lower his workers compensation payments. Mr. Garcia-Merlos was able to underpay by more than $315,000 as a result of this deception. Mr. Garcia-Merlos additionally failed to file tax returns for his companies and underreported his wages on his own tax returns. The State of New Jersey is seeking an eight-year prison term and restitution of more than $400,000. Read the court decision
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Denver Condo Development Increasing, with Caution

January 21, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Aldo Svaldi of The Denver Post, condo development has increased in the Denver metro area, though builders stated they are carefully documenting each step of construction as well as vetting contractors and materials. "We are being ultra-careful about everything," Roy Kline, a managing director at Western Development Group, told the Denver Post. Western Development is behind the 250 Columbine development. Svaldi reported that Western Development Group has been “photographing or filming every step of construction.” Brian Levitt and Trevor Hines of NAVA Real Estate Development “have spent the past year crafting a detailed three-page, 18-point action plan to deal with any contingency they could think of arising from the state's constructions-defects law.” Levitt told Svaldi that he “estimates all the safeguards being put in place will add 5 percent to 10 percent to the costs of the units at NAVA Sloan Lake, whose final price points are being determined.” Read the court decision
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Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

November 07, 2012 — CDJ STAFF
Businessweek reports that construction jobs and materials will see increased demand as property owners in New York and New Jersey rebuild after hurricane Sandy. Tom Jeffery, of Irvine, California-based CoreLogic, a real estate information service, noted that “a high percent of damaged properties are going to be repaired.” Experts estimate property damage to total anywhere from $7 billion to $40 billion. It is also estimated that about 739,000 properties in the area are underwater in the way that has nothing to do with flooding, with negative equity of 25 percent or more. Many of these homeowners are likely to walk away from their mortgages. Ken Simonson, chief economist of the Associated General Contractors of America, expects “localized spikes in construction employment throughout November and the winter.” Martin Connor, the chief financial officer of Toll Brothers, expects to see more a rise in labor costs than in materials. Read the court decision
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English High Court Finds That Business-Interruption Insurance Can Cover COVID-19 Losses

November 02, 2020 — Lorelie S. Masters, Scott P. DeVries, Patrick M. McDermott & Jorge R. Aviles - Hunton Insurance Recovery Blog
In a decision that will influence how policyholders and insurers around the world address business-interruption coverage for COVID-19 losses, the English High Court recently handed down its much-anticipated judgment in the “Test Case,” The Financial Conduct Authority (FCA) v. Arch et al. The High Court’s comprehensive analysis will likely serve as an additional tool in policyholders’ arsenal in the ongoing battles over COVID-19 coverage. The Panel, composed of two well-respected judges, one from the High Court (the UK’s trial court) and the other from the English Court of Appeal, analyzed 21 sample policy wordings in coverage extensions for business-interruption losses due to disease or the issuance of public authority orders. (Many of these wordings are also found in policies sold to US policyholders.) The High Court found that the COVID-19 pandemic and ensuing government actions fell within the coverage provided by the sample policy wordings. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth, Scott P. DeVries, Hunton Andrews Kurth, Patrick M. McDermott, Hunton Andrews Kurth and Jorge R. Aviles, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. McDermott may be contacted at pmcdermott@HuntonAK.com Mr. Aviles may be contacted at javiles@HuntonAK.com Read the court decision
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Mexico City Metro Collapse Kills 24 After Neighbors’ Warnings

May 17, 2021 — Max De Haldevang & Maya Averbuch - Bloomberg
The collapse of a long-troubled Mexico City metro track killed 24 people and put two of President Andres Manuel Lopez Obrador’s top allies in the line of fire Monday night, after a decade of safety concerns and probes surrounding the project. About 79 people were injured, Mayor Claudia Sheinbaum said Tuesday. A broken beam led to the incident on the Golden Line of the metro system, she said. An international agency and the attorney general’s office will investigate. Reprinted courtesy of Max De Haldevang, Bloomberg and Maya Averbuch, Bloomberg Read the court decision
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High School Gym Closed by Construction Defects

October 28, 2011 — CDJ STAFF

The high school gym in Lake Oswego, Oregon has been shut down because testing has revealed that the construction defects have lead to deterioration of the structural integrity of the roof. The school district noted that there was a chance of collapse if there were a “significant seismic event or heavy rain and winds and snow.” The school district has been in a lawsuit with the builders since 2008, which was recently settled for $600,000.

The school board is still determining whether the original contractor will be asked to correct the defect or if they will bid the job out.

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California Supreme Court Holds that Requirement of Prejudice for Late Notice Defense is a Fundamental Public Policy of the State for Choice of Law Analysis

November 04, 2019 — Lorelie S. Masters, Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery Blog
California’s highest court held yesterday in Pitzer College v. Indian Harbor Insurance Co., that the state’s insurance notice-prejudice rule is a “fundamental public policy” for the purpose of choice of law analyses. This unanimous ruling, issued in response to certified questions from the Ninth Circuit, confirms and emphasizes California’s common law rule that policyholders who provide “late notice” may proceed with their insurance claim, absent a showing by the insurer of substantial prejudice. The California Supreme Court also extended the prejudice requirement, holding that a first-party insurer must show that it was prejudiced before denying coverage under a policy’s “consent provision,” which typically provides that the policyholder must obtain the insurer’s “consent” before incurring costs and expenses. Reprinted courtesy of Hunton Andrews Kurth attorneys Lorelie S. Masters, Michael S. Levine and Michelle M. Spatz Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Spatz may be contacted at mspatz@HuntonAK.com Read the court decision
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Can a Contractor be Liable to Second Buyers of Homes for Construction Defects?

November 05, 2014 — Craig Martin - Construction Contractor Advisor
Whether a contractor will be liable to a second purchaser, even though the contractor never contracted with the second purchaser, varies state to state. The Pennsylvania Supreme Court, in Conway v. The Cutler Group, is the latest court to rule that a subsequent purchaser lacks privity and cannot pursue an action against the builder. In that case, the Conways purchased a home from the original owner. After living in the home for about two years, the Conways discovered water leaking around the windows. The Conways sued the builder, alleging breach of the implied warranty of habitability. The builder defended the claim, asserting that it had not contracted with the Conways and thus had not provided any warranties to the Conways. The trial court agreed and dismissed the claim. The first level of appellate court reversed the trial court, holding that the warranty of habitability was intended to level the playing field between the builder and purchaser of a home and it should be extended to subsequent purchasers. The Pennsylvania Supreme Court disagreed and refused to extend any warranties to subsequent purchasers. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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