FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Repair Cost Exceeding Actual Cash Value Does Not Establish “Total Loss” Under Fire Insurance Policy

June 05, 2017 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In California FAIR Plan Assn. v. Garnes (No. A143190, filed 5/26/17), a California appeals court ruled that “total loss” under Insurance Code section 2051 refers to physical damage or loss, not the economic fact that the cost of repair exceeds the actual cash value of a home. Thus, where the home is not physically destroyed, the insured is entitled to the actual cost of repair, minus depreciation, even if that amount exceeds the fair market value of the home. In Garnes, the insured had a fire policy issued by the California FAIR Plan with limits of $425,000. It was agreed that the assessed value of the insured home was only $75,000. The insured suffered a kitchen fire with estimated repair costs of $320,000. The FAIR Plan declared the home a total loss because the cost of repair exceeded the home’s value, and offered to pay the actual cash value as provided by Insurance Code section 2051(b)(1). 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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Can We Compel Insurers To Cover Construction Defect in General Liability Policies?

December 09, 2011 — Douglas Reiser, Builders Council Blog

Recently, I read an article on Engineering News-Record that outlines a remarkable movement by as many as four states, to mandate coverage of construction defects in contractor general liability insurance policies. Say what? Is this a reality? What will become of affordable insurance?

Commercial General Liability insurance, or CGL, is your basic liability insurance. Every contractor doing business in the State of Washington, and most likely those abroad, has this insurance. Contractors buy this insurance to protect them from unforeseen liabilities arising from their negligence - and right now it’s reasonably affordable.

Why is it so affordable in such a risk-heavy industry? Because CGL policies significantly limit the scope of their coverage. Coverage is generally afforded for damages resulting from negligence (The roofer put a hammer through the drywall contractor’s wall) or which resulted from your defective construction (the roof leaked and flooded the rest of the house). But, that coverage does not include replacement of your faulty construction (the contents of the home might be protected by your leaky roof - the leaky roof itself is not).

The debate over coverage typically stems from the definition of “occurrence,” a term used to describe the event from which coverage arises, “resulting loss,” a term used to describe the type of loss covered.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Walmart Seeks Silicon Valley Vibe for New Arkansas Headquarters

June 18, 2019 — Matthew Boyle - Bloomberg
Walmart Inc. took inspiration from McDonald’s Corp., Apple Inc. and locations like Stanford University when designing the new headquarters that will start taking shape this summer. The 350-acre campus will be located just a few blocks east of Walmart’s current home, a patchwork of more than 20 buildings in Bentonville, Arkansas. It will feature bike paths, food trucks and outdoor meeting areas -- part of an effort to lure younger, digitally-savvy workers to northwestern Arkansas. Read the court decision
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Reprinted courtesy of Matthew Boyle, Bloomberg

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Court Upholds Plan to Eliminate Vehicles from Balboa Park Complex

June 10, 2015 — Kristen Lee Price and Lawrence S. Zucker II – Haight Brown & Bonesteel LLP
In Save Our Heritage Organisation v. City of San Diego, et al. (No. D063992, filed 5/28/15), the California Court of Appeal for the Fourth Appellate District upheld a controversial plan to eliminate vehicles from various plazas in historic Balboa Park. In reaching its decision, the Court of Appeal considered a question of first impression involving the interpretation of San Diego Municipal Code section 126.0504. Balboa Park, designated a National Historic Landmark in 1940, is a large urban park in the center of San Diego. The City of San Diego (“City”) recently approved a proposed plan (“Project”) to eliminate vehicles from the plazas within the Balboa Park complex and to return the plazas to purely pedestrian zones. Subsequently, a community group named Save Our Heritage Organisation (“SOHO”) filed a petition for a writ of mandate alleging, among other things, the City erroneously approved the Project. SOHO contended Municipal Code section 126.0504 mandated two key findings be made before the Project could be approved: (1) that the intended purpose of the property would not be adversely affected; and (2) without the proposed project, the property would not be put to a “reasonable beneficial use.” SOHO argued that although the City made the requisite findings, those findings lacked substantial evidentiary support. The trial court agreed with SOHO and directed the City to rescind the site development permit. The City argued on appeal that Municipal Code section 126.0504 vested it with “discretion to make a qualitative determination of whether an existing use of the property, even if deemed beneficial, is also a reasonable use of that property under all of the facts and circumstances applicable to the particular property in question.” The Court of Appeal agreed and reversed. Reprinted courtesy of Kristen Lee Price, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Price may be contacted at kprice@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Repairs Could Destroy Evidence in Construction Defect Suit

June 28, 2013 — CDJ STAFF
Repair work is underway on the Palladium concert hall in Carmel, Indiana, a suburb of Indianapolis, a contractor for the project says that the repairs will destroy evidence that they need to defect against additional construction defect allegations. Work stopped in 2009 for three months of repairs after problems were found in the steel roof supports. Steel Supply & Engineering Co. has claimed that the column failures are due to errors in the design. They say that if the repair work continues, it “would result in the spoliation of evidence, and will irreparably harm the defendants, and ultimately adversely affect their ability to protect their rights in the action.” They have asked the court to bring repairs to a stop until they are able to inspect the steel. Read the court decision
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Gilbane Project Exec Completes His Mission Against the Odds

January 19, 2017 — Debra K. Rubin - Engineering News-Record
Afghanistan’s new Ministry of Defense headquarters in Kabul was supposed to symbolize the nation’s future—and U.S. support in that effort—as a self-sustaining, sophisticated structure akin to the Pentagon. But U.S. funding shortfalls stretched an anticipated 18-month project, which began in 2009, into years. While experienced in running projects in an underdeveloped country in which terror attacks and unstable regional politics are routine, Gilbane Building Co. Project Executive Michael P. Sousa wanted no part of this one in 2013, when he first toured it. “The structure was in a severe state of disrepair and riddled with poor construction,” he says, terming it “an embarrassment” to the U.S. government. Read the court decision
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Reprinted courtesy of Debra K. Rubin, ENR
Ms. Rubin may be contacted at rubind@enr.com

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Senate Committee Approves Military Construction Funds

June 29, 2011 — CDJ STAFF

With a decrease in funding, as compared to the House bill, the Military Construction and Veteran’s Affairs subcommittee of the Senate moved on a $72 billion construction bill. The House version had approved an additional half billion dollars in funding. Senator Tim Johnson, Democrat of South Carolina, said that he expected easy reconciliation with the House version. The Senate bill will move to the full Senate Appropriations Committee on June 30.



The bill, S 1255, includes funding for construction and remodeling of military housing, as well as construction and remodeling of base facilities.

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Read S1255

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What Should Be in Every Construction Agreement

November 04, 2019 — Patrick Barthet - Construction Executive
A detailed and coherent construction agreement in place on every job minimizes confusion, makes clear everyone’s respective responsibilities and reduces disputes. There are six things that should be addressed in every construction agreement. DEFINE THE SCOPE Define what the scope of work is that will be provided. Will it be only materials; will it be materials and labor; or will it be just labor? Be very clear and specific in how the scope of work is spelled out. Many contracts state that the contractor is responsible for all work that’s shown on the plans and specifications, as well as that which is reasonably inferable. While subjective—even if not actually on the plans or specifications, someone may believe that something should be part of the contractor’s work. This could expand what has to be done beyond what was understood or priced. LIST ALL THE EXCLUSIONS Do the parties each have the same understanding as to what is covered in the contract? How often are contractors faced with customers thinking something was included as part of the work? The contractor may have believed that task, or that material, or that specially fabricated item was excluded. But was it? Did the contractor articulate what was and was not in the scope and price? Specifically listing what is excluded can obviate this problem. Articulate what is not in the price or scope and reduce the chance of one party believing that something is to be done when it isn't. Reprinted courtesy of Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Barthet may be contacted at pbarthet@barthet.com

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