Fairfield Connecticut Building Expert Directory

Contractor Liable for Soils Settlement in Construction Defect Suit

February 10, 2012 — CDJ STAFF

The California Court of Appeals ruled on January 9 in Burrow v. JTL Dev. Corp., a construction defect case in which houses suffered damage due to improperly compacted soil, upholding the decision of the lower court.

Turf Construction entered into a deal with JTL to develop a parcel they acquired. A third firm, Griffin Homes, withdrew from the agreement “when a geotechnical and soils engineering firm reported significant problems with soil stability on 14 of the lots.” Turf Construction then took over compacting and grading the lots. Turf “had never compacted or graded a residential tract before.” Robert Taylor, the owner of Turf, “testified he knew there was a significant problem with unstable soils.”

After homes were built, the plaintiffs bought homes on the site. Shortly thereafter, the homes suffered damage from soil settlement “and the damage progressively worsened.” They separately filed complaints which the court consolidated.

During trial, the plaintiff’s expert said that there had been an inch and a half in both homes and three to five inches in the backyard and pool areas. “He also testified that there would be four to eight inches of future settlement in the next fifteen to twenty years.” The expert for Turf and JTL “testified that soil consolidation was complete and there would be no further settlement.”

Turf and JTL objected to projections made by the plaintiffs’ soil expert, William LaChappelle. Further, they called into question whether it was permissible for him to rely on work by a non-testifying expert, Mark Russell. The court upheld this noting that LaChappelle “said that they arrived at the opinion together, through a cycle of ‘back and forth’ and peer review, and that the opinion that the soil would settle four to eight inches in fifteen to twenty years was his own.”

Turf and JTL contended that the court relied on speculative damage. The appeals court disagreed, stating that the lower court based its award “on evidence of reasonably certain damage.”

Turf also that it was not strictly liable, since it did not own or sell the properties. The court wrote that they “disagree because Turf’s grading activities rendered it strictly liable as a manufacturer of the lots.” The court concluded that “Turf is strictly liable as a manufacturer of the lots.”

Judge Coffee upheld the decision of the lower court with Judges Yegan and Perren concurring.

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South Carolina Contractors Regain General Liability Coverage

May 20, 2011 — CDJ STAFF

PR Newswire reports that the Carolinas Associated General Contractors (CAGC) have successfully persuaded the South Carolina legislature to pass a bill restoring commercial general liability (CGL) coverage. Governor Nikki Hartley signed the legislation on May 17.

A South Carolina Supreme Court decision given on January 7, 2011, had ended commercial general liability coverage in the state. Senate Bill 431 addressed this decision, restoring the ability of home builders to obtain CGL coverage.

PR Newswire quotes South Carolina homebuilder, Allen Amsler: “We have seen a lot of legislation with substantial impact to our business over the years. However, I would place this in the same level of importance with the original tort reform legislation. The effects of the Supreme Court’s ruling could have been catastrophic to our industry in South Carolina had it not been for this bill. Thanks to all those in the House, Senate and the Governor’s office who assisted us.”

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U.S. Homeownership Rate Falls to Lowest Since Early 1995

October 29, 2014 — Prashant Gopal – Bloomberg
The homeownership rate in the U.S. fell to the lowest in more than 19 years as the market shifted toward renting and tight credit blocked some potential buyers. The share of Americans who own their homes was 64.4 percent in the third quarter, down from 64.7 percent in the previous three months, the Census Bureau said in a report today. The rate was at the lowest level since the first quarter of 1995. Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29 percent in September for the third straight month, compared with about 40 percent historically, according to the National Association of Realtors said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Grupo Mexico Spill Sparks Public Scrutiny of $150 Million Mop-Up

September 17, 2014 — Nacha Cattan – Bloomberg
Mexico is sending federal officials to Sonora state to oversee Grupo Mexico SAB (GMEXICOB)’s $150 million cleanup of a copper mine spill that the government says contaminated the water supplies of at least 24,000 people. The special commission of environmental and agriculture ministry officials will monitor the company’s pledge to clean Mexico’s worst mining spill, which occurred Aug. 6 in the northern state that borders Arizona. Grupo Mexico said last week it would create a $150 million trust after its Buenavista del Cobre operation dumped 11 million gallons of copper sulfate solution into two Sonora rivers. Industrias Bachoco SAB de CV and Ford Motor Co. (F) operate plants in Hermosillo, south of the contaminated waterways. Read the court decision
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Reprinted courtesy of Nacha Cattan, Bloomberg
Ms. Cattan may be contacted at ncattan@bloomberg.net

Are Modern Buildings Silently Killing Us?

May 16, 2022 — Michael Rubino - Construction Executive
Construction, in general, is a rapidly evolving industry as contractors, architects, and engineers are tasked with keeping up with government regulations, building practices and technological innovations. While growth and evolution are pivotal components of successful projects and businesses, it’s led to a few issues, one of which involves mold. Like the construction industry, the world of mold is evolving as more research, understanding, and awareness develops, highlighting its prevalence in buildings and the effect it can have on the health of those exposed. What industry professionals are witnessing time and again is an increasing occurrence of individuals reaching out and asking for help after experiencing exposure that led to chronic illness. The reality is that modern buildings are contributing to this rise. The Top of the Funnel An issue aiding in mold’s prevalence in modern-day buildings is the way in which they are built. In an effort to achieve net-zero energy-efficient buildings, construction professionals have adopted the technique of sealing buildings as tightly as possible. While this transition reduces energy costs in the building, it also introduces a few new problems that aren't always addressed in modern construction. One such issue is how the lack of airflow between the indoor and outdoor environments can lead to a buildup of contaminant particles in the building. Reprinted courtesy of Michael Rubino, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Construction Defects Are Occurrences, Says South Carolina High Court

December 20, 2012 — CDJ STAFF
The South Carolina Supreme Court has left the legislature’s new, expanded definition of “occurrence” in place, declining to declare it unconstitutional. South Carolina included faulty workmanship as an occurrence in response to a Supreme Court decision, which the court later reversed. One of the parties in that earlier decision, Harleysville Insurance, challenged the new law, claiming that the legislature didn’t have the power to pass a law to overturn a court ruling. The court did not concur. However, the court did determine that the law was not retroactive and covered only claims filed after the law became effective in May 2011. The Chief Justice of South Carolina noted that “insurance coverage for construction liability lacks clarity, particularly with respect to whether construction defects constitute ‘occurrences’ under construction general insurance policies.” Read the court decision
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Contractor Sentenced to 7 Years for “Hail Damage” Fraud

November 13, 2013 — CDJ STAFF
The hailstorm might have spared homes in New Jersey, but the contractor didn’t. Marcin Gradziel entered a guilty plea when he was accused of filing fraudulent insurance claims for homes in New Jersey. In order to fool the inspectors from the insurance agency, after homeowners agreed to their pitch, Mr. Gradziel would damage their homes. After admitting this in court, Mr. Gradziel has now been sentenced to seven years in prison. His former employers, Precision Building, has gone out of business after paying restitution to the defrauded insurers. Read the court decision
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Incorporation by Reference in Your Design Services Contract– What Does this Mean, and Are You at Risk? (Law Note)

June 19, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Has an Owner ever asked you to sign his contract before you started work on a new design project? Rhetorical question– this happens all the time, right? Especially in commercial work, developers or owners typically are not happy to simply agree to your Proposal for Services, but instead want you to sign *their* contract. There are some risks with that you should be aware of — one of which is the seemingly arcane and legalistic language that reads something like this:

“The Developer’s contract with Owner is hereby incorporated by reference.”

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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

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