Fairfield Connecticut Building Expert Directory

Harmon Tower Construction Defects Update: Who’s To Blame?

August 17, 2011 — CDJ STAFF

Reporting on the site VegasInc.com, Liz Benton notes that “nobody wants to take the fall for what happened at Harmon.” Work on the Harmon hotel building in Las Vegas’s CityCenter stopped in 2008 after 26 of the planned 49 stories were completed. Lorence Slutzky, a construction law professor at John Marshall Law School and a partner with the Chicago firm Robbins Schwartz Nicholas Lifton & Taylor told Benton that while inspectors and others are complicit, “the real responsibility rests with Perini, which has an obligation to comply with the plan specifications.” Perini’s claim is that they were given faulty design drawings. MGM disputes this.

Perini has offered to repair the building defects, however MGM has released a statement that they have “zero confidence or trust that Perini can and will properly fix a building it has so badly constructed thus far.” One MGM spokesperson likened these requests from Perini to “the director of ‘Ishar’ demanding a sequel.” “Ishtar,’ cost Columbia Pictures $55 million dollars and earned only $4.2 million in its initial run. Perini claims that MGM halted work because of the economy.

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Business Risk Exclusions Bar Coverage for Construction Defect Claims

June 28, 2013 — Tred Eyerly
The federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013). The plaintiffs entered a construction contract with the insured general contractor to build a home. After the project was one-third completed, plaintiffs terminated the contract. Experts hired by plaintiffs found a failure to properly site the residence, as the house was constructed 48 feet from the intended location; violations of county height restrictions; failure to follow building plans, which were themselves deficient; and an improperly poured foundation. The experts estimated that the costs of repairing the property to be between $1.3 and $1.5 million, and that the cost of demolishing the structure and rebuilding it would be between $1.1 and $1.3 million. After plaintiff filed suit, a stipulated judgment of $1.952 million was entered. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Deductibles Limited to Number of Suits Filed Against Insured, Not Number of Actual Plaintiffs

December 08, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The court limited the number of deductibles to the counterclaims filed against the insured, not the more than 600 plaintiffs who were parties to the three underlying lawsuits. Probuilders Spec. Ins. Co. v. Yarbrough Plastering, 2016 U.S. Dist. LEXIS 134959 (E.D. Calif. Sept. 29, 2016). Yarbrough entered into contracts with Lenox Homes to provide stucco and drywall services in the homes Lenox would build. Each contract required Yarbrough to indemnify Lenox for any claims resulting from property damage arising out of the performance of the contract. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Before Collapse, Communications Failed to Save Bridge Project

December 30, 2019 — Scott Judy - Engineering News-Record
The National Transportation Safety Board’s Oct. 8 release of documents related to its FIU bridge collapse investigation raises questions but provides no definitive conclusions about why the partially built structure suddenly crashed to the ground on March 15, 2018, killing six. The last official word on the cause of the fatal collapse will have to await the agency’s final report, scheduled to be released on Oct. 22. Scott Judy, Engineering News-Record Mr. Judy may be contacted at judys@enr.com Read the full story... Read the court decision
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Look to West Africa for the Future of Green Architecture

May 16, 2022 — Kriston Capps - Bloomberg
In 2014, a crowd of demonstrators stormed Burkina Faso’s National Assembly building, setting it ablaze and ending the nearly 30-year rule of President Blaise Compaoré. A year later, Burkenabè architect Diébédo Francis Kéré was asked to imagine a new parliamentary building — one that would reflect a more democratic future for the West African nation. Kéré conceived a six-story stepped pyramid that slopes up gently from the ground, inviting citizens to gather, climb and take in views of the capital city, Ouagadougou. The ruins of the former parliament building next door would be transformed into a rainwater-collecting memorial park. The project remains a ways off: Burkina Faso continues to struggle with political unrest, including a coup d’état in January 2022. But Kéré’s fast-growing prominence may improve the odds that his vision will eventually materialize. In March, he became the first African architect to win the Pritzker Architecture Prize, the design field’s top honor. Read the court decision
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Reprinted courtesy of Kriston Capps, Bloomberg

Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?

January 17, 2023 — Christopher G. Hill - Construction Law Musings
All Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.” A recent case in Fairfax County, Virginia, Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

New York Condominium Association Files Construction Defect Suit

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
According to The Real Deal, “The condominium association at 15 Union Square West has filed a $5 million lawsuit against developer Brack Capital Real Estate eight years after the building first launched sales, alleging that the firm did not deliver the quality of units it promised when residents originally signed their contracts.” Alleged problems include roof leaks, lack of terrace landscaping, and patchy electrical work, The Real Deal reported. A spokesperson for Brack stated, “We stand behind our product and are very proud of it.” Read the court decision
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CC&Rs Not the Place for Arbitration Agreement, Court Rules

May 24, 2011 — CDJ STAFF

In January, the California Court of Appeals ruled that an arbitration clause inserted in a development’s CC&Rs by the developer could not be enforced. The case, Villa Vicenza Homeowners Association v. Noble Court Development, involved a case in which, according to the opinion, “following the first sale Nobel controlled the board of directors of the Association and because the initial condominium buyers noticed defects in common areas and common facilities and did not believe Nobel had provided a reserve fund sufficient to repair the defects, the condominium owners brought a derivative action on behalf of the Association against Nobel.”

The court concluded, “The use of CC&R's as a means of providing contractual rights to parties with no interest in or responsibility for a common interest development is also problematic from the standpoint of determining what if any consideration would support such third-party agreements. By their terms the CC&R's bind all successors, even those with whom a third party such as Nobel has never had any contractual relationship and to whom Nobel has not provided any consideration.” The court determined that “the trial court did not err in denying Nobel's motion to compel arbitration.”

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