Fairfield Connecticut Building Expert Directory

Insurer Doomed in Delaware by the Sutton Rule

September 12, 2023 — Katherine Dempsey - The Subrogation Strategist
In Donegal Mut. Ins. Co. v. Thangavel, No. 379, 2022, 2023 Del. LEXIS 227, the Supreme Court of Delaware (Supreme Court) considered whether the Sutton Rule prevented the plaintiff from pursuing subrogation against the defendants. As applied in Delaware, the Sutton Rule explains that landlords and tenants are co-insureds under the landlord’s fire insurance policy unless a tenant’s lease clearly expresses an intent to the contrary. If the Sutton Rule applies, the landlord’s insurer cannot pursue the tenant for the landlord’s damages by way of subrogation. Here, the Supreme Court affirmed the trial court’s decision that the Sutton Rule applied because the lease did not clearly express an intent to hold the tenants liable for the landlord’s damages. In Thangavel, the plaintiff, Donegal Mutual Insurance Company (Insurer), provided property insurance to Seaford Apartment Ventures, LLC (Landlord) for a residential property in Delaware. Sathiyaselvam Thangavel and Sasikala Muthusamy (Tenants) leased an apartment (the Premises) from Landlord and signed a lease. Insurer alleged that Tenants hit a sprinkler head while flying a drone inside the Premises which caused water to spray from the damaged sprinkler head, resulting in property damage to the Premises. Landlord filed an insurance claim with Insurer, who paid Landlord $77,704.06 to repair the damage. Insurer then sought to recover the repair costs from Tenants via subrogation. Read the court decision
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Reprinted courtesy of Katherine Dempsey, White and Williams LLP
Ms. Dempsey may be contacted at dempseyk@whiteandwilliams.com

Amazon Urged to Review Emergency Plans in Wake of Deadly Tornado

June 20, 2022 — Spencer Soper - Bloomberg
Amazon.com Inc. should better prepare workers for extreme weather events, according to federal regulators who investigated a deadly tornado strike on a company warehouse in Edwardsville, Illinois. The storm ripped through the facility in December, killing six workers and injuring several others, prompting the Occupational Safety and Health Administration to launch a probe. At the time, Amazon said the facility complied with all construction regulations and that proper safety procedures were followed when the tornado struck. But several workers told Bloomberg that training for such events was minimal and mostly entailed pointing out emergency exits and assembly points. An OSHA report released on Tuesday echoed those concerns. The agency said a bullhorn that was supposed to be used to tell workers to take cover was locked up in a cage and inaccessible. In interviews with investigators, some employees couldn’t recall ever participating in emergency drills and said they mistakenly took shelter in a bathroom on the south side of the building rather than in designated restrooms on the north side. Read the court decision
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Reprinted courtesy of Spencer Soper, Bloomberg

Construction Contract Clauses Only a Grinch Would Love – Part 4

November 30, 2016 — Garret Murai – California Construction Law Blog
Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The fourth and final part in a multi-part series, here are some other important construction contract clauses that can put a damper on your holidays.

Provision: Warranty Provisions

Typical Provision: “Subcontractor warrants to Contractor that all materials and equipment furnished shall be new unless otherwise specified and that all Work performed shall be performed in a good and workmanlike manner, of good quality and free from defects, and in conformance with industry standards, manufacturer’s recommendations and the Contract Documents. All work not conforming to these requirements, including substitutions not properly approved, shall be considered defective. Subcontractor agrees to promptly make good any and all defects due to faulty workmanship, materials and/or equipment which may appear within the Contract Documents, and if no such period is stipulated in the Contract, then for a period of one year from the date of acceptance by the Owner. Nothing herein shall shorten or limit any applicable periods of limitations including, but not limited to, those set forth in Civil Code, Part 2, Title 2, Chapter 3.”
What it Means: Warranty periods are subject to the agreement of the parties. However, warranties are different than limitations periods, such as California’s 4 year statute of repose for patent defects and 10 year statute of repose for latent defects (note: a statute of repose is different than a statute of limitation. A statute of repose sets a deadline based on an event. So, for example, under the 10 year statute of repose for latent defects a claimant must bring a latent defect claim within 10 years following substantial completion even if the latent defect wasn’t discovered until 10 years and 1 month following substantial completion. A statute of limitation, in contrast, sets a deadline based on the occurrence of an injury or damage. So, for example, California has a 2 year statute of limitation for personal injuries, which sets a deadline of 2 years from the date of injury to bring a personal injury claim). Warranty periods are also different from limitations periods because most warranties require work to be corrected at no cost, and because many contracts include attorney’s fee provisions, breach of a warranty can give rise to claim for attorney’s fees as well.
What You Can Do: Lower-tiered parties should examine warranty provisions to see if they are reasonable, and if not reasonable, should seek to either eliminate or limit those provisions, such as by reducing the warranty period or providing different warranty periods for different components of work, etc.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

South Carolina Couple Must Arbitrate Construction Defect Claim

June 28, 2013 — CDJ STAFF
The South Carolina Court of Appeals has rejected a claim by Sun City property owners that they were not bound by the arbitration clause in their purchase agreement. Roger and Mary Jo Carlson brought the claim against Del Webb Communities and Pulte Homes. About 140 homeowners are alleging problems in the community. According to the court, the Carlsons will have to go through arbitration with the companies over the alleged stucco defects to their home. Read the court decision
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Flint Water Crisis Prompts Call for More Federal Oversight

August 28, 2018 — Associated Press - Engineering News-Record
WASHINGTON (AP) — A federal watchdog is calling on the Environmental Protection Agency to strengthen its oversight of state drinking water systems nationally and respond more quickly to public health emergencies such as the lead-in-the water crisis in Flint, Michigan . In a 74-page report released Thursday, the EPA's inspector general report pointed to "oversight lapses" at the federal, state and local levels in the response to Flint's contaminated drinking water. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Napa Quake Seen Costing Up to $4 Billion as Wineries Shut

August 27, 2014 — Michael B. Marois, Zachary Tracer and Dan Hart – Bloomberg
The earthquake that struck northern California yesterday will lead to economic losses of as much as $4 billion, fueled by damaged wineries and shuttered businesses that rely on tourists. Insurers will probably cover about $2.1 billion, according to an estimate from Kinetic Analysis Corp., which projected total losses of about twice that sum. Costs borne by the industry may be limited because many homeowners don’t have earthquake coverage, according to the Insurance Information Institute. “The main source of claims could well be commercial claims, those coming from wineries and vineyards and other commercial interests,” Robert Hartwig, the institute’s president, said in an interview today. “It will take a while for the business owners to sort this out.” Mr. Marois may be contacted at mmarois@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net; Mr. Hart may be contacted at dahart@bloomberg.net Read the court decision
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Reprinted courtesy of Michael B. Marois, Zachary Tracer and Dan Hart, Bloomberg

Administration Launches 'Buy Clean' Construction Materials Push

February 28, 2022 — James Leggate - Engineering News-Record
The Biden administration is moving to put U.S. government purchasing power behind construction materials with lower embodied carbon emissions and pollutants, with the White House launching a “Buy Clean Task Force” on Feb. 15. as part of a slate of initiatives intended to decarbonize manufacturing while boosting the economy. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Seeking the Urban Lifestyle in the Suburbs

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
As the ‘burbs become more urbanized, the definition of city is changing. Builder Magazine reported that while builders have responded to buyers who wanted an urban lifestyle, “what nearly all of them have learned in the process is that ‘city’ doesn’t mean what it used to. Neither does ‘suburb.’ In fact, nearly every builder that added a post-recession ‘urban’ division has found that home buyers in search of an urban lifestyle aren’t married to living downtown. For many, it seems it’s not ‘the city’ they want at all—it’s the lifestyle.” Leigh Gallagher, assistant managing editor of Fortune and author of The End of the Suburbs: Where the American Dream is Moving, told Builder, “People don’t necessarily want to live in Manhattan. They want a little bit of Manhattan sprinkled right near them.” Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES