As a shareholder in Marshall, Dennehey's Roseland, New Jersey, office, Stephen is regularly called upon to oversee and litigate large and complex construction defect suits throughout New Jersey and New York, and he is often engaged to assist his construction and insurance industry clients obtain resolution of disputed matters through alternate means such as mediation or arbitration.
Stephen's counsel is often sought with regard to insurance coverage issues specifically related to the construction industry, particularly additional insured and insured indemnity issues. Stephen also defends claims of bodily injury and property damage from microbial contamination arising out of construction projects. At present, the bulk of Stephen's construction defect practice is on behalf of general contractors.
A graduate of the Rutgers University School of Law, Newark, New Jersey, Stephen is admitted to the Bars of the State of New Jersey and the State of New York. He is also admitted to practice before the U.S. District Court for the District of New Jersey and the Eastern and Southern Districts of New York.
Prior to attending law school, Stephen enjoyed a six-year career with AT&T, culminating in a management position at the company's then corporate headquarters in Basking Ridge, New Jersey, where he oversaw and developed pilot marketing programs for one of the company's core business units. Stephen began his legal career as an associate in the construction department of one of New Jersey's largest and most well-respected law firms. Thereafter, Stephen became associated with a New York City-based law firm, becoming the managing partner of that firm's New Jersey office where he practiced exclusively in the construction litigation context.
Significant Representative Matters
The eleventh hour assumption of the defense of a defunct general contractor in an eleven-year-old litigation arising out of a series of catastrophic construction failures in a luxury Hudson River front condominium and townhouse community. Plaintiff's demand was $65 million. Secured a greatly reduced settlement after leading the more then 75 parties in the liability case and companion declaratory judgment action through more than 20 days of mediation. Ninety percent of the settlement was funded by the third party defendants and their carriers against whom client had asserted claims for contractual indemnity. Also recovered a large percentage of the legal fees client's carriers had incurred by virtue of client's status as an additional insured on the policies issued by client's subcontractor's insurance carriers.
Settlement of a roofing claim in the context of an eight-figure condominium litigation for 25 percent of plaintiff's demand. Able to obtain numerous concessions from plaintiff's experts, including an acknowledgement that the expert lacked certain crucial credentials and that the plaintiff's needed repairs, some twelve years after original construction, were well beyond the original scope of work and were caused in large part by plaintiff's failure to maintain the roofs.
Summary judgment on behalf of a national homebuilder in a case involving allegations of a range of construction defects in a 39-home subdivision. Obtained dismissal of the entire case based upon plaintiffs' failure to obtain a legally competent expert opinion necessary to support its case.
A directed verdict on behalf of a mortgage monitor hired by a construction lender to monitor the progress of construction. This federal court case arose out of the construction of a luxury high rise on the Hudson River. Had already obtained a partial victory by prevailing on a motion in limine to bar the plaintiff condominium association's expert from offering testimony against his client. The federal court granted motion for a directed verdict at the close of plaintiff's case.
Partial summary judgment of the most damning counts of a complaint asserting, among other things, common law and statutory fraud, exposing client to potential treble damages and counsel fees. By obtaining dismissal of these counts, virtually eliminated plaintiff's leverage and was able to resolve the matter for nuisance value.
Settlement, during trial, of a claim asserted against client, an HVAC designer and installer, in a wide ranging construction defect suit arising out of the construction of a 35,000 square foot luxury residence. Following cross examination of plaintiff's HVAC expert, the matter was settled for less than half of plaintiff's original demand.
Settlement, during trial, of a claim asserted against client, a construction manager, in an acrimonious six-year-old construction defect suit arising out the construction of a 29,000 square foot luxury home on Long Island, New York. Represented the only party that had not settled with plaintiffs, and on the eve of trial, client was named in a declaratory judgment action by its own carrier seeking a declaration of no coverage. Was allowed to continue defending the matter, and following several days of testimony, was able to secure settlement for a relatively modest sum.
Currently litigating defense of a large ($500M+ annual revenues) general contractor in a $25 million defect dispute arising out of the construction, design, and sale of a high rise luxury rental building on the Hudson River. Has already obtained a defense for client from the client's subcontractor's insurers, thus sparing the client's own carriers significant defense costs. Has named nearly a dozen subcontractors and continues to build a strong forensic case against the architect for the numerous design shortcomings in the building at issue.
Currently litigating defense of a large ($50M annual revenues) general contractor in a defect suit arising out of the construction of a middle school. The suit alleges defects in the roof and HVAC system. This matter has been hotly contested with numerous legal issues being brought before the court. In this case, led a ten-day Lopez hearing seeking to prove that the plaintiff had knowledge of the supposed damages but failed to take action, thus, barring the claim as untimely. Though unsuccessful at the trial level, the issue is now pending before the appellate court as the case continues through in-depth discovery. Called upon by client's carrier to commence a declaratory judgment action against two other carriers who refused to defend client despite an apparent obligation to do so. Actively prosecuting claims for indemnity and contribution against more than half a dozen subcontractors.
Currently litigating defense of a school district and board of education in the United States District Court against a series of student claims for bodily and psychic injury as a result of supposed exposure to mold. This matter is being defended as a result of an indemnity agreement between an HVAC contractor and the municipal school district. This matter is the subject of intense local media coverage and is being vigorously fought given the public interests at issue.
Currently litigating defense of a surety as requested by the principal, a large ($600M+ annual revenues) general contractor, arising out of the client's construction of a landmark public university professional school.
Currently litigating defense of a synthetic stucco applicator in a condominium defect suit in which all other parties have now settled. In this case, client is the defendant in a declaratory judgment action filed by the client's own carrier and is facing seven-figure exposure. Has been authorized by the client' carrier to continue in role as defense counsel through trial. In the absence of settlement authority, the need to obtain some sort of dispositive relief is urgent given the pending coverage suit and the apparent lack of coverage.
Currently retained by a carrier on behalf of a large ($500M annual revenue) contractor to prosecute a claim against the contractor's subcontractors in an arbitration. The dispute arises out of the build out of luxury retail space in a new landmark building in New York City. Large portions of the retail space are suffering from numerous construction defects causing damage to the building and to the business and property of other tenants.
