Fairfield Connecticut Building Expert Directory

No Coverage for Foundation Collapse

November 08, 2017 — Tred R. Eyerly - Insurance Law Hawaii
Coverage for the collapse of a foundation was not covered under the contractor's builder's risk policy. Taja Investments LLC v. Peerless Ins. Co., 2017 U.S. App. LEXIS 19855 (4th Cir. Oct. 11, 2017). Taja Construction LLC was renovating a row house owned by Taja Investments LLC when the east wall of the property collapsed. Taja submitted a claim for repair costs in the amount of $400,000. Peerless denied coverage because the collapse was caused by Taja's failure to support the building's foundation properly while excavating the basement. The policy excluded coverage for defects in construction or workmanship. The claim was also denied under the earth movement exclusion. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Construction Litigation Roundup: “Based on New Information …”

August 01, 2023 — Daniel Lund III - Lexology
Based on new information … your arbitration award is thrown out! So said the United States Eleventh Circuit Court of Appeals, affirming a district court’s vacatur of the award based upon the award having been procured by fraud. The lower court ruled as it did notwithstanding the fact that the action seeking to have the arbitration award vacated was filed and served beyond the three months allowed by the Federal Arbitration Act, 9 U.S.C. 12. The party attacking arbitration award alleged that during the course of the arbitration hearing, a witness whose testimony was been handled remotely by videoconference was being inappropriately aided: the witness was being instructed remotely – by texting – by the corporate representative for his company, who was entitled to sit in on all portions of the arbitration hearing. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

US Appeals Court Slams FERC on Long-Muddled State Environmental Permits

March 27, 2019 — Mary B. Powers and Debra K. Rubin - Engineering News-Record
What may be the nation’s largest dam removal project—delayed for years by regulatory and legal disputes of a utility, stakeholders and states over licensing and environmental permits—now may have new momentum after a hard-hitting January federal appeals court ruling. Reprinted courtesy of Mary B. Powers, ENR and Debra K. Rubin, ENR Ms. Rubin may be contacted at rubind@enr.com Read the court decision
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Pandemic-Related Construction Materials Pricing Poses Challenges in Construction Lawsuits

September 20, 2021 — Nick Stewart - Construction Executive
During the global pandemic the construction industry saw unprecedented inflation in the cost of building supplies as a result of a myriad of issues. On May 7, 2021, lumber prices hit a record high at $1,670.50 per thousand board feet. This was more than six times their pandemic low in April 2020. This significant price spike was related to closure of sawmills during the height of the pandemic, low supply, soaring demand to expand existing homes or purchase new construction, the western U.S. wildfires and tariffs. More recently, lumber prices have fallen but they are still up nearly 100% from spring 2020. Some experts believe that the recent wildfires in the western United States and upcoming hurricane season will cause prices to jump back up in the upcoming months. Additionally, since March 2020, steel prices are up roughly 200%. The increase in steel prices is a result of many of the same factors causing lumber pricing spikes. Many steel mills shut down production or drastically reduced production during the early days of the pandemic expecting a deep recession and/or to comply with restrictive government mandates. Despite these industry expectations, demand for steel -elated products like grills and home appliances soared. These household demands for steel-based products impacted the price of steel for construction projects. Prior to the pandemic, hot-rolled steel traded between $500 and 800 per ton but hit an all-time high of $1,825 per ton in early July 2021. Reprinted courtesy of Nick Stewart, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Stewart may be contacted at nstewart@turnerpadget.com

New York Appellate Division Reverses Denial of Landlord’s Additional Insured Tender

December 07, 2020 — Eric D. Suben - Traub Lieberman
In Wesco Insurance Co. v. Travelers Property & Cas. Co. of America, 2020 WL 6572489 (1st Dep’t Nov. 10, 2020), the New York Appellate Division found that a commercial landlord was owed additional insured coverage in connection with an incident in which a plaintiff slipped and fell on the sidewalk while exiting the leased premises. The tenant, Capital One, was the named insured in a CGL policy issued by Travelers. The policy added the landlord as an additional insured, but “only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to [Capital One] and shown in the Schedule.” The lease defined the demised premises to include the building and “all appurtenances.” Travelers denied the landlord’s tender on the basis that the sidewalk did not constitute “that part of the premises leased to” Capital One. In the ensuing declaratory judgment action brought by Wesco (the landlord’s insurer), the court granted Travelers’ motion for summary judgment on this ground. Read the court decision
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Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

California Supreme Court Protects California Policyholders for Intentional Acts of Employees

July 02, 2018 — William S. Bennett – Saxe Doernberger & Vita P.C.
Recently, the California Supreme Court ruled that liability insurers are obligated to cover negligent supervision, hiring, and retention claims against employers resulting from the intentional acts of their employees. The case, Liberty Surplus Insurance v. Ledesma & Meyer Construction, case no. S236765 (2018), involved an insurance coverage dispute between a construction company, Ledesma & Meyer Construction (“L&M”), and its insurers, Liberty Insurance Underwriters, Inc. (“Liberty”) and Liberty Surplus Insurance Corp (“Liberty Surplus”). Liberty was L&M’s primary insurer, while Liberty Surplus had the excess policy. L&M had contracted with the San Bernardino Unified School District to renovate a school building while the school was still in session. In a separate action, another court found that an L&M employee sexually assaulted a 13-year-old student while working at the project. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

Homebuilding Design Goes 3D

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Houston Business Journal reported that some home builders are using new computer visualization technology to create 3D representations of home designs. Autodesk Revit not only helps the buyer visualize the home, but it also catches architectural design mistakes and can help homebuilders quantify all of the building materials necessary for a particular model. Mollie Silver, a senior designer with On Point Custom Homes, uses Autodesk Revit. “It changes the game for our clients, because this gives them a really good idea of what their home will look like in real life,” Silver told the Houston Business Journal. “If you give them floor plans, it just doesn’t give them the same idea.” Read the court decision
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Five-Year Statute of Limitations on Performance-Type Surety Bonds

December 01, 2017 — David Adelstein - Florida Construction Legal Updates
The statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998). This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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