Fairfield Connecticut Building Expert Directory

Ambiguity Kills in Construction Contracting

February 15, 2018 — Christopher G. Hill – Construction Law Musings
Well, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . . Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al Read the court decision
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Reprinted courtesy of Christopher G. Hill – The Law Officeof Christopher G. Hill, PC

Pennsylvania Superior Court Tightens Requirements for Co-Worker Affidavits in Asbestos Cases

November 26, 2014 — Jerrold P. Anders & Tonya M. Harris – White and Williams LLP
In Krauss v. Trane US Inc., 2014 Pa. Super. 241, --- A.3d --- (October 22, 2014), the Superior Court of Pennsylvania held that a witness affidavit does not create a genuine issue of fact to defeat summary judgment when it reflects only a presumption and belief that certain products contained asbestos. Moreover, when an affidavit fails to demonstrate plaintiff’s frequent, regular, and proximate exposure to a specific defendant’s asbestos-containing product, summary judgment will be granted. The Executor of the Estate of Henry M. Krauss filed two lawsuits against forty-nine defendants in the Philadelphia Court of Common Pleas. Plaintiff alleged that Mr. Krauss, a bricklayer from 1978 to 1983, was occupationally exposed to asbestos and developed mesothelioma. Various defendants moved for summary judgment based on insufficient product identification. The trial court granted summary judgment in favor of the defendants because the co-worker affidavits failed to show that: (1) Mr. Krauss worked in proximity to the defendants’ products; (2) the products contained asbestos during the relevant period; or (3) Mr. Krauss inhaled asbestos fibers from the products. Reprinted courtesy of Jerrold P. Anders, White and Williams LLP and Tonya M. Harris, White and Williams LLP Mr. Anders may be contacted at andersj@whiteandwilliams.com; Ms. Harris may be contacted at harrist@whiteandwilliams.com Read the court decision
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Freddie Mac Eases Mortgage Rules to Limit Putbacks

May 13, 2014 — Clea Benson and Jody Shenn - Bloomberg
Freddie Mac, which along with Fannie Mae has forced home lenders to buy back tens of billions of dollars of flawed mortgages, said the companies are loosening rules that made banks more cautious about extending credit. The government-backed companies will expand the pool of loans that become exempt from putback requests, Freddie Mac (FMCC) said in a memo to lenders today. Under the new rules, loans will typically be spared from such demands if borrowers make 34 of their first 36 scheduled monthly payments. Previously, borrowers needed to avoid delinquency for the first three years. Ms. Benson may be contacted at cbenson20@bloomberg.net; Ms. Shenn may be contacted at jshenn@bloomberg.net Read the court decision
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Reprinted courtesy of Clea Benson and Jody Shenn, Bloomberg

Maine Case Demonstrates High Risk for Buying Home “As Is”

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Meredith Eilers of Bernstein Shur, writing in JDSupra Business Advisor, a Boston Appeals court “enforced an 'as is' provision in a purchase and sale agreement and concluded that the sale of a multimillion dollar oceanfront property in Bar Harbor was not accompanied by Maine’s implied warranty of habitability.” Eilers explained that “the first circuit concluded that the bargained-for ‘as is’ provision that was incorporated into the purchase and sale agreement—in exchange for a reduction in the purchase price—essentially waived any claims from the buyer regarding misrepresentations by the sellers.” This left “the buyer to incur the repair costs without the ability to recover those costs from the seller” and it demonstrated “that agreeing to such a clause when closing a real estate deal has real risks.” Read the court decision
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Indiana Court of Appeals Rules Against Contractor and Performance Bond Surety on Contractor's Differing Site Conditions Claim

April 03, 2013 — Brian M. Falcon - Frost Brown Todd LLC
Earlier this year, the Indiana Court of Appeals issued an important opinion that impacts contractors and sureties alike. The decision should give contractors in Indiana pause before ceasing work while a dispute with the owner is pending. Sureties also have been placed on notice that strict compliance with the terms of their bonds is amongst their best defenses to claims made by owners and bond claimants. In Dave's Excavating, Inc. and Liberty Mutual Insurance Co. v. City of New Castle, Indiana, 959 N.E.2d 369 (Ind. Ct. App. 2012), the contractor (“Dave’s”) was the successful bidder on a public sanitary sewer and water main extension project. Dave's procured a performance bond from Liberty Mutual to guarantee its performance obligations to the owner (the "City"). After encountering what it deemed different subsurface conditions—and indeed after having been previously granted a change order to use excavated materials as backfill in light of the subsurface conditions on site—Dave’s placed the project engineer on notice of a differing site conditions claim. The total claim amounted to an 84% increase in the total contract price. With the claim, Dave's advised the project engineer it was ceasing further work until the project engineer provided direction. While the project engineer reviewed the claim, it reminded Dave's of its contractual obligation to "carry on the work and adhere to the progress schedule during all disputes or disagreements with the OWNER." A dispute immediately occurred regarding whether Dave's was required to continue to work while the project engineer resolved the differing site condition claim. After Dave's maintained its position that it was not required to continue to work, the project engineer placed it on notice of default and copied the letter to Liberty Mutual. Read the court decision
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Reprinted courtesy of Brian M. Falcon
Brian M. Falcon can be contacted at http://www.frostbrowntodd.com/contact.html

Ahlers & Cressman’s Top 10 Construction Industry Contract Provisions

July 02, 2014 — Beverley BevenFlorez-CDJ STAFF
James R. Lynch of Ahlers & Cressman, PLLC, has published the first two parts of the four-part “Top 10 Construction Contract Provisions” series: “As a powerful mechanism to control contract risk, increase predictability, and reduce the cost and complexity of potential disputes, we frequently recommend that our clients’ contracts include a mutual waiver of consequential damages.” The first part “explains the significance of such a clause and the risk a contractor assumes without it,” while the second part discusses “the various categories of damages flowing from a breach of contract and conclude[s] with examples of how parties can limit these damages to reflect their agreed allocation of risk.” Read the full story, Part 1... Read the full story, Part 2... Read the court decision
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Receiving a $0 Verdict and Still Being Deemed the Prevailing Party for Purposes of Attorney’s Fees

May 24, 2018 — David Adelstein - Florida Construction Legal Updates
Low and behold, a party can be the prevailing party for purposes of attorney’s fees even if that party is awarded $0. That’s right, even if the party is awarded a big fat zero, they can still be the prevailing party for purposes of being entitled to attorney’s fees. This is because a party is the prevailing party if they prevail on the significant issues in the case. A party can prevail on the significant issues even if that party is awarded $0. Whoa! For example, in Coconut Key Homeowner’s Association, Inc. v. Gonzalez, 43 Fla.L.Weekly D1045a (Fla. 4th DCA 2018), a homeowner sued her homeowner’s association claiming the association breached its governing documents. There was a basis for fees under Florida’s homeowner’s association law (and there likely was a basis under the governing documents). At trial, the jury held that the association breached its governing documents, but awarded the homeowner nothing ($0). The trial court also issued injunctive relief in favor of the homeowner. The homeowner claimed she should be deemed the prevailing party for purposes of attorney’s fees; however, this was denied by the trial court based on the $0 verdict and no fees were awarded to the homeowner. 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

Six-Month Prison Term for Role in HOA Scam

January 28, 2013 — CDJ STAFF
Ben Kim, the former police lieutenant whose wife is one of the figures in the scheme to take over Las Vegas homeowner associations in order to profit from construction defect settlements, might face a six-month sentence in a bank fraud scheme. Mr. Kim has plead guilty in the charges that he submitted false financial documents. Others who were involved in the homeowner scandal, including Mr. Kim's wife, were also involved in this case. Read the court decision
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