Fairfield Connecticut Building Expert Directory

Recent Developments Involving Cedell v. Farmers Insurance Company of Washington

September 05, 2022 — Donald Verfurth, Sally Kim, Stephanie Ries & Kyle Silk-Eglit - Gordon & Rees Insurance Coverage Law Blog
Ever since the Washington Supreme Court’s 2013 decision in Cedell v. Farmers Insurance Company of Washington, 176 Wn.2d 686, 295 P.3d 239 (2013), insurance coverage attorneys have been struggling to define the exact parameters of the Cedell ruling in order to safeguard the attorney-client privilege as to the communications between the insurer and its counsel. As a brief background, the Washington Supreme Court held in Cedell that there is a presumption of no attorney-client privilege in a lawsuit involving bad faith claims handling. However, an insurer can overcome the presumption of no attorney-client privilege by showing that its counsel provided legal advice regarding the insurer’s potential liability under the policy and law, and did not engage in any quasi-fiduciary activities, i.e. claims handling activities, such as investigating, evaluating, adjusting or processing the insured’s claim. Since Cedell, various trial courts have held that the following activities by an insurer’s counsel constitute quasi-fiduciary conduct that do not overcome the presumption of no attorney-client privilege, resulting in an order to produce documents and/or to permit the deposition of the insurer’s counsel:

Insurer’s attorney being the primary or sole point of contact with the insured for the insurer;
Insurer’s attorney requesting documents from the insured that are relevant to the investigation of the claim;
Insurer’s attorney communicating directly with the insured or the insured’s counsel regarding claims handling issues or payments;
Insurer’s attorney interviewing witnesses for purposes of the investigation of the claim;
Insurer’s attorney conducting an examination under oath of the insured;
Insurer’s attorney drafting proposed or final reservation of rights letter or denial letter to the insured; and
Insurer’s attorney conducting settlement negotiations in an underlying litigation.

Reprinted courtesy of Donald Verfurth, Gordon Rees Scully Mansukhani, Sally Kim, Gordon Rees Scully Mansukhani, Stephanie Ries, Gordon Rees Scully Mansukhani and Kyle Silk-Eglit, Gordon Rees Scully Mansukhani Mr. Verfurth may be contacted at dverfurth@grsm.com Ms. Kim may be contacted at sallykim@grsm.com Ms. Ries may be contacted at sries@grsm.com Mr. Silk-Eglit may be contacted at ksilkeglit@grsm.com Read the court decision
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Orchestrating Bias: Arbitrator’s Undisclosed Membership in Philharmonic Group with Pauly Shore’s Attorney Not Grounds to Reverse Award in Real Estate Dispute

June 21, 2017 — Lyndsey Torp - Snell & Wilmer Real Estate Litigation Blog
The California court of appeal recently issued an unpublished decision in Knispel v. Shore, 2017 WL 2492535, affirming a judgment confirming an arbitration award in a real estate dispute involving Pauly Shore. The court of appeal held that the arbitrator’s failure to disclose her membership in the Los Angeles Lawyers Philharmonic Group with the attorney representing Pauly was not grounds to overturn the judgment. The underlying arbitration involved a dispute between Michael Scott Shore, on the one hand, and his brother, Pauly, among others, on the other hand, regarding certain residential property located on Sunset Boulevard near The Comedy Store in West Hollywood (owned and operated by their mother, Mitzi Shore). The parties agreed to arbitrate their dispute before Judge Aviva K. Bobb (Ret.) of the Alternative Resolution Center. Judge Bobb issued an award in favor of Pauly, and he petitioned the trial court to affirm the award. Michael opposed, contending the arbitrator failed to disclose that she and Pauly’s attorney had both been members of the Lawyers Philharmonic, for which they had been practicing and performing together since November 2010. Read the court decision
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Reprinted courtesy of Lyndsey Torp, Snell & Wilmer
Ms. Torp may be contacted at ltorp@swlaw.com

Spearin Doctrine: Alive, Well and Thriving on its 100th Birthday

January 15, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
On December 9, 2018, United States v. Spearin, [1] a landmark construction law case, will be 100 years old. The Spearin “doctrine”[2] provides that the owner impliedly warrants the information, plans and specifications which an owner provides to a general contractor. The contractor will not be liable to the owner for loss or damage which results from insufficiencies or defects in such information, plans and specifications. Some construction lawyers questioned whether the Spearin doctrine was still viable in Washington after the Washington Court of Appeals decided the recent case of King County v. Vinci Constr. Grand Projets.[3] Some concerned contractor industry groups even considered a “statutory fix” in the wake of the Court of Appeals Vinci decision. It is our opinion that the facts in the Vinci case are distinguishable and the Spearin doctrine is alive and thriving in Washington. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Feds Outline Workforce Rules for $39B in Chip Plant Funding

April 10, 2023 — James Leggate - Engineering News-Record
Semiconductor chip producers must pay their construction workforce prevailing wages and will be “strongly encouraged” to use project labor agreements if they want a piece of the $39 billion available in federal funding to support fabrication plant construction, expansion or modernization projects, U.S. Commerce Secretary Gina Raimondo says. 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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A Few Construction Related Bills to Keep an Eye On in 2023 (UPDATED)

February 20, 2023 — Christopher G. Hill - Construction Law Musings
The annual General Assembly session is now well underway here in the Commonwealth of Virginia. As is always the case, those in our fine state legislature have introduced with varying success a few construction-related bills. This post will list just a few without comment, and a big one at the end that will likely spur a post or two down the road here at Construction Law Musings: HB1490: Virginia Public Procurement Act; certain construction contracts; performance and payment bonds. Allows localities to allow a contractor of indefinite-delivery or quantity contracts, defined in the bill, who is otherwise required to furnish performance and payment bonds in the sum of the contract amount to the public body with which he contracted to furnish such bonds only the dollar amount of the individual tasks identified in the underlying contract. Such contractors shall not be required to furnish the sum of the contract amount if the governing locality has adopted such an ordinance. UPDATE: Passed the House and is being considered in the Senate UPDATE 2: A substitute bill has passed both the House and the Senate. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Alleged Negligent Misrepresentation on Condition of Home is Not an Occurrence Causing Property Damage

December 17, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court found that even if the insured's negligent misrepresentations constituted an accident, the disclosures did not cause physical damage to the property. Wood v. USAA Cas. Ins. Co., 2024 U.S. Dist. LEXIS 180624 (D. S.C. Sept. 12, 2024). The insured, Clinton Wood, purchased a townhome in January 2014. After the purchase, Wood experienced leaks and significant water intrusion, as did other townhome owners in the same development. Wood and the other owners retained an engineer to evaluate the cause of the water damage. The engineer determined that the water intrusion was caused by defects in the design and construction of the residence. The engineer told Wood that the proposed repairs would not adequately address and resolve the water intrusion and leaks, and that the problems would continue even if repairs were made. 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

Choice of Law Provisions in Construction Contracts

October 07, 2024 — Victoria Davies - ConsensusDocs
If you have used a ConsensusDocs® construction agreement or another industry association construction agreement for one of your projects, you are accustomed to seeing the laws of the state where the construction project is located as the governing law. There are good reasons for the laws of the state where the project is located to govern the construction agreement for the project. Even if not headquartered in the state, the parties have a presence there by virtue of their participation in the project in the state. Personnel and records that may be needed to resolve a claim may be located in the state. If there are experts that need to be engaged, they will likely need to visit the site. These reasons of efficiency and convenience, alone, may justify the parties’ decision to select the project state’s laws to govern their construction contract. However, there is also the policy interest of the project state, whose laws may even mandate that the project state’s laws govern construction contracts for in-state projects and that the parties resolve their disputes in state as well. Several states have laws that require construction disputes for projects in the state to be resolved under its laws and/or litigated or arbitrated in the state. Some states require only that its laws govern and do not also require that the dispute resolution take place in the state, but some require both – that its laws govern and the disputes be resolved there. There may be different triggers as to when the statute applies. For example, in some states, the statute applies to any construction contract for a project in the state. In others, the law may only be triggered if one of the parties is domiciled in the state. Read the court decision
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Reprinted courtesy of Victoria Davies, Jones Walker LLP
Ms. Davies may be contacted at vdavies@joneswalker.com

Newport Beach Attorneys John Toohey and Nick Rodriguez Receive Full Defense Verdict

July 31, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara is pleased to report that Partner John Toohey and Senior Associate Nicholas Rodriguez received a complete defense verdict after a 5-week jury trial in Orange County Superior Court. The case involved a multimillion-dollar home in Orange County. Plaintiff had originally suffered a water loss throughout areas of the home. Our client, an Orange County restoration and construction company, was hired to provide on-going estimates and perform demolition. Plaintiff claimed that, in the course of the demolition process, asbestos containing material was disturbed and spread resulting in contamination throughout home. Plaintiff claimed contractor negligence and breach of contract against our client. Plaintiff sought millions against our client in general and special damages for whole home restoration and other related general damages. The jury found in complete favor of our client on all allegations and awarded zero dollars to the opposing party. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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