FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Wow! A Mechanic’s Lien Bill That Helps Subcontractors and Suppliers

March 05, 2015 — Christopher G. Hill – Construction Law Musings
You know how I’ve stated on many occasions that the contract is king here in Virginia? You know how that included contractual provisions waiving mechanic’s lien rights for subcontractors and suppliers? You know how I thought that the General Assembly would not do anything to make mechanic’s liens in Virginia easier to prosecute? Well, it seems, at least for waivers of mechanic’s lien rights by subcontractors and suppliers (more about general contractors later) I was wrong. This General Assembly session, the Senate introduced a bill, that has now passed both houses as of February 25, 2015, that adds language to Virginia Code Section 43-3 that effectively nullifies any contractual waiver of lien rights prior to any work having been performed by any tier of construction company aside from general contractors. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Home Buyer Disclosures, What’s Required and What Isn’t

February 05, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Sandy Gadow of the Washington Post, while all states require a property disclosure statement, “the extent of what must be revealed can vary from state to state, county to county and even city to city.” Gadow stated that while, “Federal law requires certain disclosures, such as the existence of asbestos or lead-based paint in the home or other known health or safety risks. But the enforcement of other disclosures (such as reporting certain environmental conditions pertinent to the area, or the existence of Megan’s Law offenders) will be determined by local ordinance or law.” Gadow recommends home buyers go to their state’s Department of Real Estate to discover the Seller Disclosure requirements. Read the court decision
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Miller Act and “Public Work of the Federal Government”

March 01, 2017 — David Adelstein – Florida Construction Legal Updates
The Miller Act applies to the “construction, alteration, or repair of any public building or public work of the Federal Government.” 40 U.S.C. s. 3131. A recent opinion out of the Northern District of Oklahoma sheds light on what the Miller Act means regarding its application to any public work of the Federal Government. See U.S. v. Bronze Oak, LLC, 2017 WL 190099 (N.D.Ok. 2017). If the project is not a public works project of the Federal Government, the Miller Act does not apply. In this case, the Department of Transportation entered into an agreement with the Cherokee Nation where the Department would provide lump sum funding and the Nation would use the money to fund transportation projects. Based on the federal funding, the Nation issued a bid for a transportation project in Mayes County, Oklahoma and the project was awarded to a prime contractor. The prime contractor provided a payment bond that identified the United States as the obligee (as a Miller Act payment is required to do) and stated that it was issued per the Miller Act. Thereafter, the Nation and Mayes County, Oklahoma entered into a Memorandum of Understanding where the County would assume responsibility for the construction and maintenance of the project and the Nation would pay the County an agreed amount upon the completion of the project. 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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Travelers’ 3rd Circ. Win Curbs Insurers’ Asbestos Exposure

May 03, 2017 — Gregory D. Podolak - Saxe Doernberger & Vita, P.C.
In breaking news this week, LAW360.com posted that the Third Circuit ruled Friday that “a common exclusion found in a Travelers policy bars coverage for claims arising out of asbestos in any form, limiting insurers’ potential exposure to asbestos injury claims by precluding policyholders from arguing that the exclusionary language is ambiguous and doesn’t extend to products containing the carcinogen.” In its detailed analysis of the decision, LAW360 turned to Greg Podolak for his analysis. Gregory D. Podolak, managing partner of Saxe Doernberger & Vita PC’s Southeast office, said the ruling is a cautionary tale that should galvanize policyholders and their insurance brokers to take a closer look at policies to delete or curtail broad “arising out of” language in exclusions. Otherwise, insureds could find themselves without any coverage for claims even remotely related to a certain product, he said. Read the court decision
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Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at gdp@sdvlaw.com

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San Francisco Bay Bridge Tower Rod Fails Test

May 20, 2015 — Beverley BevenFlorez-CDJ STAFF
The San Francisco Chronicle reported that “[o]ne of the steel rods anchoring the tower of the new Bay Bridge eastern span has failed a key integrity test, suggesting it became corroded and broke during years when it was soaking in water.” Hundreds of other rods have also been steeped in water, which raises concerns about how stable the bridge might be during a major earthquake. Gareth Lacy, a Transportation Agency spokesperson, told the Chronicle that “[t]hey are investigating why one seismic rod at the base at the tower moved when it was pulled by the machine,” Lacy said. “It did not carry the expected load, and the next step is to remove it to fully investigate its condition.” Read the court decision
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There Are Consequences to Executed Documents Such as the Accord and Satisfaction Defense

October 01, 2024 — David Adelstein - Florida Construction Legal Updates
A federal government contractor in Jackson Construction Co., Inc. v. U.S., 62 Fed.Cl. 84 (Fed.Cl. 2024) sought delay damages against the government. It lost. The reason for the loss is a crucial reminder that documents parties sign ALWAYS matter. ALWAYS!! In Jackson Construction Co., the contractor’s delay claim was premised on relocating a waterline. The contractor, however, received additional money for relocating the waterline, but no additional time, and this was memorialized in a modification to the contract (i.e., a change order). In executing the modification for the additional work, the contractor did NOT reserve rights for time or money. Indeed, the modification reflected that the monetary adjustment constitutes full compensation for the additional work including delay, namely:

The contract period of performance remains the same. It is further understood and agreed that this adjustment constitutes compensation in full on behalf of the contractor and his subcontractors and suppliers for all costs and markup directly or indirectly, including extended overhead, attributable to the change order, for all delays related thereto, and for performance of the change within the time frame stated.

Jackson Construction Co., supra, at 90.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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A Discussion on Home Affordability

April 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Krishna Rao, in the online publication Zillow Real Estate Research, analyzed statistics on home price affordability across the United States. Rao found that “[a]cross the United States, strong home price affordability has been recently eroded by a combination of rising home prices and mortgage rates. Some areas, particularly on the West Coast, have begun to look unaffordable compared to their historic norms, forcing some household to look to the periphery of urban areas in search of affordable homes.” However, John McManus in Big Builder said a more helpful term when looking at the new home market would be “relative affordability (which inheres both payment power and access to credit).” “Little attention has been given to the fact that many builders' mix--first- and second-time move-up and higher end homes.” McManus wrote that this “has skewed pricing conversations. When the buyer is ‘discretionary,’ has access to cash and no impediment of another property to sell in order to trigger a purchase--then both base price and price elasticity can be greater.” Read the full story, Zillow... Read the full story, Big Builder... Read the court decision
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California Commission Recommends Switching To Fault-Based Wildfire Liability Standard for Public Utilities

June 25, 2019 — Lawrence J. Bracken II, Sergio F. Oehninger, Paul T. Moura & Alexander D. Russo - Hunton Insurance Recovery Blog
A state-appointed panel advised last week that California should change the standard for determining whether utilities are liable for wildfires. Under the current system, California’s Public Utilities Code § 2106 provides a private right of action by any person or entity that has suffered loss, damages, or injury caused by prohibited or unlawful acts of a public utility. Relying on this statute, property owners have asserted wildfire-related claims directly against allegedly culpable electric utility companies. Public utilities in California also face inverse condemnation claims arising out of wildfires. Under inverse condemnation, where private property is taken for public use and later damaged by the state or its agency, the state or agency is strictly liable to the property owner. In an effort to reduce the financial impact on public utilities resulting from wildfires—as exemplified by Pacific Gas and Electric Co.’s recent filing for Chapter 11 protection in January—the California Commission on Catastrophic Wildfire Cost and Recovery recommended changing the current laws to reflect a fault-based standard. According to the panel, this change would reduce the risk of bankruptcy and decrease the cost of capital. The commission also recommended establishing a wildfire victims’ fund and setting up an electric utility wildfire board to handle the prevention and mitigation of utility-related wildfires. Reprinted courtesy of Hunton Andrews Kurth attorneys Lawrence J. Bracken II, Sergio F. Oehninger, Paul T. Moura and Alexander D. Russo Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Paul may be contacted at pmoura@HuntonAK.com Mr. Alexander may be contacted at arusso@HuntonAK.com Read the court decision
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