FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Agree First or it May Cost You Later

May 08, 2023 — Bill Wilson - Construction Law Zone
Business relationships often begin before parties execute a written agreement containing the terms and conditions by which the relationship will be governed. With little more than a Letter of Intent (“LOI”) or Letter of Award (“LOA”) one party is typically pressured to begin investing time and money to start preliminary work on a project. If such LOI or LOA contains nothing more than an agreement to agree later, the performing party should minimize its investment until the later agreement is executed. A recent court decision in New York confirmed the danger to the performing party under “agreement to agree” provisions. In Permasteelia North America Corp. v. JDS Const. Group, LLC, 2022 WL 2954131 (N.Y. Sup. CT. 7/22/22), the plaintiff subcontractor allegedly performed $1.9 million worth of preliminary work under nothing more than a LOA with an agreement to agree provision. Issues arose, and the parties never entered any later written agreement. The general contractor refused to pay the plaintiff anything for its preliminary work. In response, the plaintiff filed suit against the general contractor asserting four counts: foreclosure of its lien, breach of contract, unjust enrichment, and account stated. All four counts were based on an alleged oral “handshake deal” for subcontract work for the project. The general contractor’s LOA stated that neither party would be bound “unless and until the parties actually execute a subcontract.” During discovery, the plaintiff admitted that neither party intended to enter into any contract until its potential terms were negotiated, reduced to writing, and signed. Moreover, the plaintiff only offered one set of meeting minutes and a few project agendas to support its alleged “handshake deal.” Once these necessary undisputed facts were confirmed, the defendant moved for summary judgment on all four counts. Read the court decision
Read the full story...
Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

---

Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013). Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation. The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

Steven Cvitanovic Recognized in JD Supra's 2017 Readers' Choice Awards

April 05, 2017 — Steven M. Cvitanovic - Haight Brown & Bonesteel LLP
JD Supra named Partner Steven Cvitanovic among the Top 10 Authors in the construction industry in its 2017 Readers’ Choice Awards, which recognizes the excellence and achievement of firms and authors who published their substantive work on JD Supra in 2016. JD Supra editors chose the 25 industries and topics covered in these awards for their timeliness as well as their proven, ongoing importance. In each category, one firm and ten authors were recognized for consistently achieving the highest readership and engagement for all of 2016. Read the court decision
Read the full story...
Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

---

Merger to Create Massive Los Angeles Construction Firm

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
AECOM Technology Corp., a Los Angeles engineering and construction firm, has agreed to pay $4 billion to acquire URS Corp., their San Francisco competitor. According to the Sacramento Bee, “The combined company will employ about 95,000 people in 150 countries.” AECOM is currently building the World Trade Center in New York, and previous projects include the Los Angeles Police Department headquarters, and renovations to the Port of Los Angeles and the Bradley international terminal at the Los Angeles International Airport, the Sacramento Bee reported. Furthermore, “URS has worked on the Garden Grove (22) Freeway reconstruction, the UCLA Ronald Reagan Medical Center, the Port of Long Beach, the Gold Line Eastside Extension in Los Angeles and the Disneyland resort expansion.” Read the court decision
Read the full story...
Reprinted courtesy of

---

Ruling Finds Builder and Owners at Fault in Construction Defect Case

December 30, 2013 — CDJ STAFF
A Minnesota home owners association has been found 30liable for some of the damage to their homes in a jury trial. The Interlachen Propertyowners Association made a claim of construction defects against Keupers Architects and Builders who had constructed the 24-unit town home complex. According to the association’s lawyer, the half-log siding was improperly installed, leading to water intrusion and rot. The jury did find for the homeowners on the construction defect claim, but found on a claim of negligent repairs that the association was 30% at fault, due to insufficient maintenance of the building. “We don’t think any amount of maintenance would have saved these buildings,” said Jason Tarasek, the lawyer for the association. The association is likely to appeal. Read the court decision
Read the full story...
Reprinted courtesy of

---

South Carolina Supreme Court Finds that Consequential Damage Arise From "Occurrence"

October 10, 2013 — Tred Eyerly — Insurance Law Hawaii
The South Carolina Supreme Court held that continuing damage that was part of a continuum of property damage constituted an "occurrence." Auto-Owners Ins. Co. v. Rhodes, 2013 S.C. LEXIS 248 (Sept. 25, 2013). Rhodes hired Eadon to design, fabricate, and erect three outdoor advertising signs on Rhodes' property bordering an interstate highway. After the signs were erected, one fell across the highway, blocking both lanes of southbound traffic. The state Department of Transportation ordered Rhodes to remove the remaining two signs and revoked Rhodes' permit to maintain signs on the property. Rhodes sued Eaton. Eaton's insurer, Auto-Owners, filed a declaratory judgment action to determine whether there was coverage under the CGL policy. The trial court found the sign falling on the interstate constituted an "occurrence" that resulted in damages beyond the defective work to property other than the defective work itself. Read the court decision
Read the full story...
Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

---

Scarce Cemetery Space Creates Prices to Die For: Cities

August 06, 2014 — Flavia Krause-Jackson – Bloomberg
Even in death, you can’t escape the property bubble. From New York to London, growing populations are competing with the deceased for land, driving up real-estate costs well into the afterlife. In Asian megacities, where cremation is the norm, even space for urns is in short supply. “At the end of the day, it’s like any other piece of real estate,” says Amy Cunningham, a New York state licensed funeral director. “Prices have conspired to put burials out of the range of most people’s budgets.” Read the court decision
Read the full story...
Reprinted courtesy of Flavia Krause-Jackson, Bloomberg
Ms. Krause-Jackson may be contacted at fjackson@bloomberg.net

---

Third Circuit Limits Pennsylvania’s Kvaerner Decision; Unexpected and Unintended Injury May Constitute an “Occurrence” Under Pennsylvania Law

December 22, 2019 — Michael S. Levine & Michelle M. Spatz - Hunton Insurance Recovery Blog
The Third Circuit ruled on Friday that differing “occurrence” definitions can have materially different meanings in the context of whether product defect claims constitute an “occurrence” triggering coverage under general liability insurance policies. The Court held in Sapa Extrusions, Inc. v. Liberty Mutual Insurance Company, that product claims against Sapa may be covered under policies that define an “occurrence” as an accident resulting in bodily injury or property damage “neither expected nor intended from the standpoint of the insured.” However, the Court affirmed that coverage was not triggered under policies lacking the “expected” or “intended” limitation, reasoning that, under those policies, there was no question that the intentional manufacturing of Sapa’s product was too foreseeable to amount to an “accident.” The coverage dispute arose from an underlying action in which Marvin, a window manufacturer, alleged that, between 2000 and 2010, Sapa sold it roughly 28 million defective aluminum window extrusions. Marvin alleged that the extrusions, which are metal frames that hold glass window panes in place, began to oxidize and break down shortly after they were installed, causing Marvin to incur substantial costs to fix and replace them. Marvin sued Sapa in 2010 in Minnesota federal court, and the parties settled in 2013. Sapa sought coverage for the settlement from its eight general liability insurers for the period implicated by Marvin’s allegations. The insurers denied coverage and Sapa brought suit in the Middle District of Pennsylvania. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Michelle M. Spatz, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. Spatz may be contacted at mspatz@HuntonAK.com Read the court decision
Read the full story...
Reprinted courtesy of

---