FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Colorado statutory “property damage” caused by an “occurrence”

August 04, 2011 — CDCoverage.com

Colorado General Assembly House Bill 10-1394 was signed into law by the Governor on May 21, 2010, codified at Colo. Rev. Stat. § 13-20-808 (2010)



13-20-808. Insurance policies issued to construction professionals



(1) (a) The general assembly finds and determines that:



(I) The interpretation of insurance policies issued to construction professionals is of vital importance to the economic and social welfare of the citizens of Colorado and in furthering the purposes of this part 8.



(II) Insurance policies issued to construction professionals have become increasingly complex, often containing multiple, lengthy endorsements and exclusions conflicting with the reasonable expectations of the insured.



(III) The correct interpretation of coverage for damages arising out of construction defects is in the best interest of insurers, construction professionals, and property owners.



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Reprinted courtesy of CDCoverage.com

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Insurance for Large Construction Equipment Such as a Crane

July 30, 2018 — David Adelstein - Florida Construction Legal Updates
Many, many projects require the use of a crane. The skyline is oftentimes filled with the sight of cranes—one after the other. Most of the time, the cranes are leased from an equipment supplier. What happens if the crane (or any large, leased equipment) gets damaged? I wrote an article regarding a builder’s risk carrier NOT covering damage to a crane from a storm based on a common exclusion. Another case, Ajax Bldg. Corp. v. Hartford Fire Ins. Co., 358 F.3d 795 (11th Cir. 2004), had a similar result. In this case, a prime contractor leased a crane from an equipment supplier. The crane was used by the structural concrete subcontractor. The crane collapsed during the subcontractor’s work. The supplier sued both the contractor and subcontractor. The prime contractor was defended under a contractor’s equipment liability policy and the subcontractor was defended under a general liability policy it procured for its work on the project. Ultimately, a settlement was reached where the subcontractor’s liability insurer paid a bulk of the damage. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Avoiding Project Planning Disasters: How to Spot Problem Projects

December 13, 2021 — James T. Dixon - Construction Executive
The burden of project planning falls first and foremost upon a project owner. Owners have varying levels of sophistication, and the smart ones fill weak spots on their staff by engaging project managers, construction managers and owner’s representatives. Typically, the owner then delegates the largest part of the project’s plan to the contractor in terms of creation and execution of a critical path method schedule during the construction phase. Before accepting that burden, a wise contractor will evaluate the project to determine if it is on a path to success or disaster. It is guaranteed that an owner’s problems will become the contractor’s problems in one way or another. There are legendary projects that were also legendary planning failures. The iconic Sydney Opera House is one. The design competition began in 1955. After selecting the architect, the owner implemented a team that involved that architect, a structural engineer and an executive committee of inexperienced politicians. The original plan included a budget of $7 million (Australian) and a completion schedule spread over four years. That executive committee forced the project to start before designs were complete, doubled the number of theaters and then put a strangle-hold on the payment process, eventually causing the architect to quit and return to Europe with the construction drawings. The Opera House opened for its first performance in 1973—14 years late and $98 million over budget. Reprinted courtesy of James T. Dixon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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IRMI Expert Commentary: Managing Insurance Coverage from Multiple Insurers

May 11, 2020 — Gregory D. Podolak, Philip B. Wilusz & Ashley McWilliams - Saxe Doernberger & Vita
What do you do when less is more? In many loss scenarios, triggering coverage under multiple policies can be a critical and effective strategy. However, doing so has the potential to complicate the insurance recovery proceedings immensely, and possibly even undermine those overall goals. The relation of "other insurance" clauses, allocation schemes, and the practical impacts of interacting with multiple insurers can all leave the insured with some difficult questions. We present here several scenarios that illustrate how these concerns can arise and how they should be addressed to avoid running into what The Notorious B.I.G.—had he been a coverage lawyer—would have called "The More Coverage We Come Across, the More Problems We See." The "Other Insurance" Issue This first scenario is where a single-year loss implicates multiple lines of coverage. Consider the following: a general contractor (GC) faces a property damage liability claim from an owner. As a prudent insured, the GC notifies its customary first line of defense, its commercial general liability (CGL) insurer, to provide a defense. As knowledge of the claim evolves, it appears an element of pollution may be involved. The GC also places its pollution insurer on notice. Later, it's determined that the GC may have a professional liability exposure, so it tenders a claim to its professional liability insurer. Now assume that each insurer accepts coverage. Reprinted courtesy of Saxe Doernberger & Vita attorneys Gregory D. Podolak, Philip B. Wilusz and Ashley McWilliams Mr. Podolak may be contacted at gdp@sdvlaw.com Mr. Wilusz may be contacted at pbw@sdvlaw.com Ms. McWilliams may be contacted at amw@sdvlaw.com Read the court decision
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Tesla Finishes First Solar Roofs—Including Elon's House

August 02, 2017 — Tom Randall - Bloomberg
First the Model 3 electric car. Now the solar roof. In just one week, Tesla has challenged two distinct industries with radically new products. Tesla has completed its first solar roof installations, the company reported Wednesday as part of a second-quarter earnings report. Just like the first Model 3 customers, who took their keys last week, the first solar roof customers are Tesla employees. By selling to them first, Tesla says it hopes to work out any kinks in the sales and installation process before taking it to a wider public audience. “I have them on my house, JB has them on his house,” Musk said, referring to Tesla’s Chief Technology Officer J.B. Straubel. “This is version one. I think this roof is going to look really knock-out as we just keep iterating.” Read the court decision
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Reprinted courtesy of Tom Randall, Bloomberg

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Study May Come Too Late for Construction Defect Bill

February 14, 2013 — CDJ STAFF
Colorado State Senator Mark Scheffel removed his bill, Senate Bill 13-052, from the calendar of the Senate Judiciary Committee in anticipation of a study which he feels would be pertinent to the discussion. The bill would stop communities from suing developers over noise and vibration issues associated with transit facilities, and would also provide for developers fixing construction defects before being sued. Senator Scheffel said that the intent of his bill was to spur development near transit facilities. The study, commissioned by the Denver Regional Council of Governments, would focus on the effects of the state’s construction defects law on housing. It might not come soon enough for the senator’s bill. The Denver Business Journal reports that the study, which will take four months to complete, doesn’t yet have a contract. The Legislature must adjourn by May 8, so it is not possible for the study to be concluded before the end of this legislative session. Read the court decision
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A Primer on Suspension and Debarment for Federal Construction Projects

August 10, 2020 — Hal J. Perloff - Construction Executive
We’ve all heard the expression that those who deal with the government must turn square corners. This is because the government has a broad array of tools at its disposal to motivate, coax and cajole contractors and federal grant recipients to play by the rules. Those tools include harsh measures such as criminal prosecution and civil false claims act enforcement on the one hand and poor CPARS ratings on the other. A seemingly less severe administrative option available to the government is suspension and debarment. However, any entity that has been suspended or debarred knows that these measures can prove harsh and disruptive. While the numbers of suspensions and debarments have declined from the all-time high in 2011, there is still significant activity. In its FY 2018 report, the Interagency Suspension and Debarment Committee reported 2444 referrals, 480 suspensions, 1542 proposed debarments and 1334 debarments. The number of referrals for suspension and debarment in FY 2018 is almost exactly the same as the number of GAO bid protests filed that year. WHAT IS SUSPENSION AND DEBARMENT? Suspension and debarment are the government’s tools to avoid entities it views as a high risk for poor performance, fraud, waste and abuse. Suspension and debarment preclude a business entity or individual from contracting with the government or from receiving grants, loans, loan guarantees or other forms of assistance from the government. A suspension is a temporary exclusion when the government determines immediate action is necessary pending the completion of an investigation or legal proceeding. A debarment is an exclusion for a defined, reasonable period of time—often three years. Reprinted courtesy of Hal J. Perloff, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Perloff may be contacted at hal.perloff@huschblackwell.com

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Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect Action

November 06, 2013 — Tred Eyerly — Insurance Law Hawaii
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic PCL Constr., 2013 U.S. Dist. LEXIS 151748 (D. Haw. Oct. 22, 2013). The insurer denied coverage when Nordic was sued for construction defects related to its construction of two Safeway stores in Honolulu. Prior to the issuance of the policies the Ninth Circuit had issued its opinion in Burlington Ins. Co. v .Oceanic Design & Constr., Inc., 398 F.3d 940 (9th Cir. 2004), which predicted that Hawaii appellate courts would rule that construction defects were not "occurrences." Nevertheless, Nordic's witnesses contended when the policies were purchased, they believed construction defects were covered. Specifically, Nordic thought the policies provided completed operations coverage for property damage arising out of Nordic's subcontractors' work. Nordic further contended that only after the Hawaii Intermediate Court of Appeals decided in Group Builders, Inc. v. Admiral Ins .Co., 123 Haw. 142 (Haw. Ct. App. 2010) that construction defect claims did not constitute an "occurrence" did the insurer change its position and decide the policies did not cover construction defects. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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