Fairfield Connecticut Building Expert Directory

The Prompt Payment Act Obligation is Not Triggered When the Owner Holds Less Retention from the General Contractor

October 27, 2016 — John P. Ahlers – Ahlers & Cressman PLLC
Most states have laws known as “prompt payment” statutes which govern the timing of payments on public works projects[i] from project owners to general contractors, and from general contractors to subcontractors.[ii] The purpose of these statutes is to ensure that contractors and subcontractors who may have less leverage than the project owners and prime contractors, respectively, are paid for their work on a timely basis. Prompt Payment Act cases are rare, and, since many of the prompt payment statutes are founded on the same principles, when we come across a Prompt Payment Act case, it is “blog worthy.” This dispute arose from the construction of the Exposition Light Rail Line Project connecting downtown Los Angeles with Culver City on which FCI/Fluor/Parsons (“FFP”) was the prime contractor, and Bloise Construction, Inc. (“Bloise”) was the excavation subcontractor to FFP. Under the prime contract, Expo,[iii] the owner, was permitted to withhold ten percent of the payments owed to FFP, and FFP, pursuant to its subcontract with Bloise, was entitled to also withhold ten percent of the payments to Bloise as retention. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman, PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

Failing to Pay Prevailing Wages May Have Just Cost You More Than You Thought

April 01, 2015 — Garret Murai – California Construction Law Blog
Mechanics lien claims, payment bond claims, stop payment notice claims, delay claims, defect claims, abandonment claims . . . With the variety of claims unique to construction projects it’s easy to forget that construction disputes are simply a category of business disputes in which broader business-related torts apply. In Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc., Case No. B255558 (February 20, 2015), the California Court of Appeal for the Second District held for the first time that a second-place bidder on a public works contract may sue a winning bidder – who failed to pay its workers prevailing wages – under the business tort of intentional interference with prospective economic advantage. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Construction Companies Must Prepare for a Surge of Third-Party Contractors

February 08, 2021 — Kim Holly - Construction Executive
Economists agree that the trajectory of the current recession has been different from any other. Looking back at the 2008 economic crisis, there are noticeable trends in the construction space that indicate a surge in third-party contractor hiring could be coming in 2021. The demand for more contract work will come as no surprise for seasoned construction executives—the share of contractors at U.S. businesses has increased by 15% in the last decade. Contractors are a valuable asset in the construction industry, but organizations will need to prepare for the coming influx to ensure third-party contractors and full-time employees are set up for success to keep operations running smoothly. THE CONTRACTOR SURGE BLUEPRINT Managing a substantial influx of contractors on construction worksites can be an overwhelming task. However, with guiding principles in place, construction executives can successfully incorporate more contractors into their operations and effectively manage associated risks. Reprinted courtesy of Kim Holly, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Blackstone Suffers Court Setback in Irish Real Estate Drama

August 20, 2014 — Donal Griffin and Dara Doyle – Bloomberg
At 11:15 a.m. on July 29, Irish property developer Michael O’Flynn realized that Blackstone Group LP (BX) was trying to gain control of his real estate empire, which includes the country’s tallest residential tower. Ten weeks earlier, the private equity firm had bought 1.8 billion euros ($2.4 billion) of loans to O’Flynn’s companies and the developer personally. Coming out of a meeting, he learned Blackstone was demanding the immediate repayment of 16 million euros of personal loans secured on his shareholdings -- even though he wasn’t in default. By the end of the day he had lost control of the business he’d spent more than 30 years building. “I was shocked that they’d made this demand,” O’Flynn, 57, said in an interview. “It took time to understand the gravity of it because I’ve never been served with a demand in my 36 years of business. I was very recently transferred to Blackstone and I was doing my damnedest to work with them.” Mr. Doyle may be contacted at ddoyle1@bloomberg.net; Mr. Griffin may be contacted at dgriffin10@bloomberg.net Read the court decision
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Reprinted courtesy of Donal Griffin and Dara Doyle, Bloomberg

Governor Signs Permit Extension Bill Extending Permit Deadlines to One Year

October 23, 2018 — Garret Murai - California Construction Law Blog
It’s like that feeling you got when your teacher said you have another week to complete your group project. On September 21, 2018, Governor Brown signed AB 2913, which, for the first time, provides a uniform 12-month period across the state for work to commence before a building permit expires. Previously, the period was six months. In addition to doubling the expiration period, the statute includes a “justifiable cause” provision permitting local building departments to extend the time for one or more additional periods of not more than 180 days per extension upon written demonstration of “justifiable cause for the extension.” Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Full Extent of Damage From Turkey Quakes Takes Shape

February 20, 2023 — Jeff Rubenstone - Engineering News-Record
Nearly two weeks after a pair of severe earthquakes rocked central Turkey and northern Syria, the full extent of damage to buildings and other structures is beginning to emerge. With the magnitude 7.8 and 7.5 epicenters located hundreds of kilometers apart, the area affected is vast. Reprinted courtesy of Jeff Rubenstone, Engineering News-Record Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the full story... Read the court decision
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WSHB Ranked 4th Most Diverse Law Firm in U.S.

July 14, 2016 — Beverley BevenFlorez-CDJ STAFF
American Lawyer, in its annual Diversity Scoreboard Survey, ranked Wood Smith Henning & Berman LLP (WSHB) one of the four top law firms in the nation. Scores are based upon the firms’ combined percentage of minority lawyers as well as minority partners in U.S. offices. “Historically, law has not been among the most diverse of professions,” Partner Domingo Tan, Chair of WSHB’s Recruiting Committee, stated according to the firm’s media release. “This trend has recently begun to change and I am proud that our firm is one of the national leaders in recognizing and celebrating diversity as a core value.” WSHB Partner Jade Tran explained how the firm’s diversity benefits its clients: “At WSHB, we are a litigation powerhouse built upon the experiences drawn from our diverse attorney backgrounds. It’s this diversity that also makes our attorneys relatable to our clients who themselves stem from diverse backgrounds.” Read the court decision
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Arbitration: For Whom the Statute of Limitations Does Not Toll in Pennsylvania

June 03, 2019 — Gus Sara - The Subrogation Strategist
In Morse v. Fisher Asset Management, LLC, 2019 Pa. Super. 78, the Superior Court of Pennsylvania considered whether the plaintiff’s action was stayed when the trial court dismissed the plaintiff’s complaint after sustaining the defendants’ preliminary objections seeking enforcement of an arbitration clause in the contract at issue. The Superior Court—distinguishing between a defendant who files a motion to compel arbitration and a defendant who files preliminary objections based on an arbitration clause—held that, in the latter scenario, if the defendant’s preliminary objections are sustained, the statute of limitations is not tolled. This case establishes that, in Pennsylvania, plaintiffs seeking to defeat a challenge to a lawsuit based on a purported agreement to arbitrate need to pay close attention to the type of motion the defendant files to defeat the plaintiff’s lawsuit. In Morse, the plaintiff entered into a contract with Fisher Asset Management (Fisher) in 2008 for investment-advisor services. The contract included a provision stating that any dispute, claim or controversy arising out of the agreement between the parties shall be determined by arbitration. In June 2009, the plaintiff filed a complaint against Fisher and two of its employees in the Court of Common Pleas of Allegheny County, alleging breach of fiduciary duty, breach of contract, negligence, and other claims. The defendants filed preliminary objections to the complaint seeking dismissal on grounds that the contract between the plaintiff and Fisher required that the dispute be determined by arbitration. The court sustained the preliminary objections and dismissed the complaint. The plaintiff did not appeal the court’s ruling. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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