Fairfield Connecticut Building Expert Directory

Key Amendments to Insurance Claims-Handling Regulations in Puerto Rico

September 23, 2019 — Andres Avila & Richard W. Brown - SDV Insights
Policyholders in Puerto Rico should be aware of significant benefits provided by recent amendments to the Insurance Code. New rules establish an expedited method of property insurance dispute resolution, mandatory expedited partial payments in the event of catastrophic events, and protection against bad faith claims handling by insurers. Appraisal Process with a Puerto Rican Twist A key amendment is the establishment of an appraisal process, widely used for many years in the United States and now adopted in Puerto Rico. Commercial and personal property insurers in Puerto Rico shall include, in their policies, a clause for an appraisal process according to Article 11.150 of the Insurance Code of Puerto Rico, 26 L.P.R.A. § 101 et seq. (“the Code”). The appraisal process provides both policyholders and insurers the option to submit insurance claims to an impartial umpire if a dispute arises over the value of covered damages or losses. The umpire and appraisers do not have authority to resolve coverage or legal issues. They can only resolve disputes over the quantum claimed for losses already determined to be covered by the insurer. Id. Each party is required to pay its own appraiser’s fees and split equally the fees of the umpire. Id. Reprinted courtesy of Andres Avila, Saxe Doernberger & Vita, P.C. and Richard W. Brown, Saxe Doernberger & Vita, P.C. Mr. Avila may be contacted at ara@sdvlaw.com Mr. Brown may be contacted at rwb@sdvlaw.com Read the court decision
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Independent Contractor v. Employee. The “ABC Test” Does Not Include a Threshold Hiring Entity Test

October 03, 2022 — Garret Murai - California Construction Law Blog
In 2018, in Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (2018), the California Supreme Court overturned nearly thirty years of jurisprudence governing the manner in which workers are classified as employees or independent contractors. The Dynamex decision replaced the “Borello test,” derived from a case of the same name, S.G. Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal.3d 341 (1989), in which the California Supreme Court at the time set forth a variety of factors to be considered when determining whether a worker was an employee or independent contractor. The Dynamex decision replaced with the “Borello test” with the “ABC test.” Under the ABC test, a worker can be deemed an independent contractor if three conditions are met:

The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
The worker performs work that is outside the usual course of the hiring entity’s business; and
The worker is customarily engaged in an independent established trade, occupation, or business

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

This Company Wants to Cut Emissions to Zero in the Dirty Cement Business

November 12, 2019 — Nick Rigillo - Bloomberg
Europe’s biggest maker of cement plants is looking for help to clean up one of the world’s dirtiest industries. FLSmidth A/S, which is based in climate-friendly Denmark, wants to reduce emissions in cement production to zero by 2030. The company says it can achieve 70% of that target by leveraging existing technologies, for instance by blending clinker with alternative materials. Read the court decision
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Reprinted courtesy of Nick Rigillo, Bloomberg

Court Holds That One-Year SOL Applies to Disgorgement Claims Under B&P Section 7031

November 23, 2020 — Garret Murai - California Construction Law Blog
We’ve talked before about Business and Professions Code section 7031 which courts have referred to as “harsh[ ],” “unjust[ ]” and even “draconian.” Under Section 7031, a contractor performing work requiring a contractor’s license, but who doesn’t: (1) is prohibited from suing to recover payment for work performed; and (2) is required to disgorge all money paid by the project owner for work performed. This is true even if the project owner knew that the contractor was unlicensed, the contractor was only unlicensed during part of the time it performed work requiring a license, and even if the work performed by the contractor was free of defects. In short, it’s the nuclear bomb of remedies against a contractor. However, until now, no court has addressed when a project owner is permitted to raise a Business and Professions Code section 7031 claim against a contractor. In the next case, Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, Inc., Case No B297247 (August 26, 2020), the 2nd District Court Appeal finally answers this question. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Does the UCC Apply to the Contract for the Sale of Goods and Services

July 03, 2022 — David Adelstein - Florida Construction Legal Updates
What governs the transaction for the hybrid contract that includes both goods and services–the Uniform Commercial Code (UCC) or the common law? A question that is asked in numerous disputes. A good example is the recent case out of the Eleventh Circuit Court of Appeals, Wadley Crushed Stone Company, LLC v. Positive Step, Inc., 2022 WL 1639011 (11th Cir. 2022), dealing with Alabama law. In this case, the plaintiff (buyer) wanted to build a granite plant in Alabama that would process 500 tons of granite per hour. The plaintiff reached out to a defendant company to start the process of building a granite plant. The defendant company engaged vendors and professionals in the due diligence process to determine the equipment the plaintiff would need. After this due diligence, plaintiff and defendant entered into a contract that included equipment and services. Thereafter, the parties modified the contract to reduce the amount for the erection, installation, and electrical work (about $1.5 Million) as plaintiff planned to independently hire the contractor to perform that work. The modified contract was worth $4,059,224.43 of which there were 25 lines items for equipment totaling $3,887,274.43 with the balance (less than 5% of the contract amount) for engineering (done by a third party), installation, setup, and calibration of scales. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Contractor Haunted by “Demonized” Flooring

December 14, 2020 — Garret Murai - California Construction Law Blog
The most un-Halloween of Halloweens has come and gone. If you ask me though, between COVID, protests, fires, hurricanes, the passing of a Supreme Court Justice, and one of the most hotly contested elections in U.S. history, we’ve had enough scares this year to make up for it and then some. In the next case, Sieg v. Registrar of Contractors, Case No. A156089 (September 28, 2020), 1st District Court of Appeal, one contractor, haunted by “demonized” flooring, and who couldn’t catch a break even with the talisman of a release of liability signed by the homeowner, can add one more to his list of reasons why 2020 needs to be relegated to the history books. The Sieg Case In January 2012, homeowners Dennis and Ana Torchia purchased wood flooring for their home in Windsor, California. Specifically, they selected Brazilian Ebony, an exotic species of unusually hard wood, for its appearance and durability. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Court of Appeals Affirms Dismissal of Owner’s Claims Based on Contractual One-Year Claims Limitations Period

October 04, 2021 — Cassidy Ingram - Ahlers Cressman & Sleight
In a recent unpublished decision – Tadych v. Noble Ridge Construction, Inc.– the Washington State Court of Appeals, Division One, held that a one-year contractual claim limitations clause was valid and enforceable. The Tadych decision is important because it reiterates the strict approach courts will take to a claim limitations clause less than the statutory six years for breach of contract claims prescribed by RCW 4.16.040(1). In other words, when the parties agree to shorten the limitations period, the agreement will be enforced barring any procedural or substantive unconscionability. In Tadych, plaintiff owners (the Tadychs) contracted with defendant contractor (Noble Ridge Construction, Inc., or NRC) for the construction of a custom home in 2012. The contract provided a one-year claim limitations clause in which claims could be raised, and that all claims not raised in the one-year period would be waived. In December 2013, as the project neared completion, the Tadychs met with NRC to identify any outstanding project issues. The Tadychs noted several, including rainwater pools at the landing at the bottom of the stairs and several nicks and cracks on the stucco exterior walls. Read the court decision
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Reprinted courtesy of Cassidy Ingram, Ahlers Cressman & Sleight
Ms. Ingram may be contacted at cassidy.ingram@acslawyers.com

General Contractors Have Expansive Common Law and Statutory Duties To Provide a Safe Workplace

February 18, 2020 — Paul R. Cressman Jr. - Ahlers Cressman & Sleight PLLC
On November 21, 2019, the Washington Supreme Court handed down its decision in Vargas v. Inland Washington, LLC.[1] At the time of the incident in May 2013, Mr. Vargas, the plaintiff, was helping pour the concrete walls for what would become a parking garage for an apartment building. He was employed by Hilltop Concrete Construction. Inland Washington was the general contractor, and subcontracted with Hilltop to pour concrete. Hilltop, in turn, entered into agreements with Ralph’s Concrete Pumping and Miles Sand & Gravel to provide a pump truck, certified pump operator, and supply concrete. A rubber hose carrying concrete whipped Mr. Vargas in the head. It knocked him unconscious and caused a traumatic brain injury. Vargas, through his guardian ad litem, along with his wife and children, sued Inland Washington, Ralph’s, and Miles. The trial court initially dismissed on summary judgment Vargas’ claims that Inland Washington was vicariously liable for the acts of Hilltop, Ralph’s, and Miles. Later, the trial court also granted Inland Washington’s motion for summary judgment that it was not directly liable as a matter of law. Read the court decision
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Reprinted courtesy of Paul R. Cressman Jr., Ahlers Cressman & Sleight PLLC
Mr. Cressman may be contacted at paul.cressman@acslawyers.com

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