UConn’s Law-School Library Construction Case Settled for Millions
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFA group of builders recently settled with the state of Connecticut for $12.1 million in a case “over flaws in the construction of UConn's law-school library” reported Hartford Business. The State of Connecticut v. Lombardo Bros. Mason Contractors, Inc., et al. had been scheduled to start trial in 2015. According to Hartford Business, “The settlement ends six years of litigation over defects in construction of the library, which was completed in 1996 and renamed in 2010 in honor of the late Gov. Meskill.”
An investigation into the construction of the library began after “[l]eaks, instability in the library’s granite façade, and other structural and safety problems became evident.”
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Responding to Ransomware Learning from Colonial Pipeline
June 07, 2021 —
J. Kyle Janecek - Newmeyer DillionRecently, ransomware has taken to the forefront in national news. The most prevalent ransomware attack, the one perpetrated against Colonial Pipeline by the now-defunct "Dark Side" hackers, has served to remind businesses about the risks of ransomware. What happened to Colonial Pipeline? What should businesses do to learn from Colonial Pipeline's response? What should a business avoid?
What happened to Colonial Pipeline?
Colonial Pipeline, a Georgia based operator of fuel pipelines, had its billing software compromised by Dark Side's ransomware attack.1 Following this, Colonial Pipeline took proactive measures to (1) shut down their systems; (2) evaluate the issue; and (3) safely brought systems back on line after ensuring that they were not compromised.
Following this, Colonial Pipeline did eventually pay the 4.4 million dollar ransom demand from Dark Side. What it got in return was a decryption key, as promised, which ended up being slower than Colonial Pipeline's own backups.2 The ultimate result of this event being an initial cost of $4.4 million, in addition to lost profits, additional security costs, reputational costs, and litigation costs as consumers had filed a class-action lawsuit to hold Colonial Pipeline accountable for their perceived lapse in security.3 Further, the fall-out from Colonial Pipeline had prompted additional cybersecurity efforts and changes by the Biden administration, including proposed regulations requiring pipeline companies to inform the Department of Homeland Security of cybersecurity incidents within 12 hours, in addition to keeping a cybersecurity coordinator on staff at all times, and reviews of current security measures.
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J. Kyle Janecek, Newmeyer DillionMr. Janecek may be contacted at
kyle.janecek@ndlf.com
Housing Agency Claims It Is Not a Party in Construction Defect Case
February 28, 2013 —
CDJ STAFFThe Aspen/Pitkin County Housing Authority (APCHA) is seeking to be removed from a construction defect suit filed by Aspen homeowners. APCHA claims that it should not be a party to the suit, since it had nothing to do with the development of the Burlingame Ranch community. Responsibility should instead, according to the agency, rest with the City of Aspen. APCHA’s role was to sell the homes to individuals whom it had verified were eligible to purchase affordable housing. Tom McCabe, the director of APCHA said that “APCHA has no part in the building of housing anymore, and we haven’t for a long time.”
Chris Rhody, who represents the Burlingame homeowners, feels that APCHA should be involved. The homeowners are alleging that construction defects, including cracked exterior siding, are the result of faulty materials and improper installation.
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Henderson Land to Spend $839 Million on Hong Kong Retail Complex
September 03, 2014 —
Michelle Yun – BloombergHenderson Land Development Co. (12), controlled by billionaire Lee Shau-kee, will spend HK$6.5 billion ($839 million) on a shopping center in a prime retail area of Hong Kong after beating 17 rivals to win a land tender.
The complex in the Tsim Sha Tsui district will be completed by 2019 and will house retail, services and dining, as well as a public 345-space parking garage, spokeswoman Bonnie Ngan said yesterday, citing Vice Chairman Martin Lee. Henderson won the site for HK$4.69 billion as the highest bidder, the government said in a statement yesterday.
Henderson beat other developers, including Cheung Kong Holdings Ltd. (1), Sino Land Co. (83), and Sun Hung Kai Properties Ltd., to win the site in the district host to global luxury brands and hotels such as the Peninsula. The price was more than the HK$3.4 billion median estimate of three surveyors compiled by Bloomberg News.
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Michelle Yun, BloombergMs. Yun may be contacted at
myun11@bloomberg.net
Harsh New Time Limits on Construction Defect Claims
April 26, 2011 —
Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq.A recent Colorado Supreme Court decision, Smith v. Executive Custom Homes, Inc., 230 P.3d 1186 (Colo. 2010), considerably shortens the time limit for bringing many construction defect lawsuits. Homeowners and homeowner associations risk losing the right to seek reimbursement from builders, developers and other construction professionals unless they carefully and quickly act upon discovery of evidence of any potential construction defect.
The Statute of Limitations for Construction Defect Claims
Colorado’s construction defect statute of limitations limits the time for homeowners and homeowners associations to bring lawsuits for construction defects against “construction professionals,” including developers, general contractors, builders, engineers, architects, other design professionals, inspectors and subcontractors. The statute requires homeowners and associations to file suit within two years “after the claim for relief arises.” A claim for relief “arises” when a homeowner or association discovers or reasonably should have discovered the physical manifestation of a construction defect.
The two-year time limitation applies to each construction defect separately, and will begin to run upon the appearance of a “manifestation” of a construction defect (which may include, for example, a condition as simple as a roof leak or drywall cracks), even if the homeowner or association does not know the cause of the apparent problem.
The Smith Opinion and its Effect on the Statute of Limitations
In Smith v. Executive Custom Homes, Inc., the plaintiff homeowner, Mrs. Smith, slipped on ice that had accumulated on her sidewalk because of a leaking gutter and suffered injury. When she first noticed the leak, she reported it to her property manager, who reported it to the builder. The builder attempted to repair the gutter, unbeknownst to Mrs. Smith, and she did not notice further problems until approximately one year after she first observed the leak, when she fell and suffered serious injury. She sued the builder within two years of her injury, but nearly three years after she first learned of the leak.
The Colorado Supreme Court dismissed Mrs. Smith’s claims as untimely and held that under the construction defect statute of limitations, the two-year period for suing for injuries due to construction defects begins when the homeowner first observes the physical manifestation of the defect, even if the resulting injury has not yet occurred. The court acknowledged that this ruling could result in “unfair results,” especially if a serious and unforeseeable injury occurs more than two years after the first time the homeowner noticed the problem, and as a result the victim is unable to seek redress from those responsible for the defect.
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Reprinted courtesy of Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq. of Sullan2, Sandgrund, Smith & Perczak, P.C., and they can be contacted through their web site.
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Blackouts Require a New Look at Backup Power
April 06, 2020 —
John McBride - Construction ExecutiveRecent blackouts on both East and West coasts are causing commercial property owners to reassess their need for backup power. The likelihood of more-frequent blackouts means backup power must evolve from ensuring the safe exit of office workers to enabling core business functions to continue uninterrupted. That’s a major shift in preparedness that construction executives should consider in future planning.
In New York City on July 13, 2019, a Con Edison blackout left 72,000 customers in Manhattan and Queens without power primarily because of a flawed connection at an electrical substation. Eight days later, a second Con Edison blackout left more than 50,000 customers, mostly in Brooklyn, without power due to high usage during a heat wave. These events occurred even though, as Con Edison stated, the New York City grid is one of the most complex and technologically advanced in the world and contains multiple layers of redundancy.
In northern and central California in late October, 2019, intentional blackouts were implemented by Pacific Gas and Electric (PG&E) on a massive scale in response to out-of-control wildfires. “Never before in California history have more than 2 million people gone five days without electrical power because of the intentional safety policy of a utility,” reported the Los Angeles Times. It was the second massive blackout in California in two weeks, after PG&E had earlier shut off power to almost 2 million people in rolling blackouts.
The blackouts on both coasts are remarkable not only for their breadth but for the range of causes—from limiting wildfires sparked in part by faulty, above-ground, power lines to a flawed connection at a substation to overuse during a heat wave. The conditions creating those causes are not likely to subside, and Con Edison warned this summer of more service outages to come. In California, The Washington Post writes, “blackouts are redefining the prosperous state.”
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John McBride, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mid-Session Overview of Colorado’s 2017 Construction Defect Legislation
March 16, 2017 —
David McClain - Colorado Construction LitigationAs the 2017 Colorado legislative session reaches the halfway point, I thought it an opportune time to provide a quick overview of the construction defect bills introduced so far this session.
Senate Bill 17-045, “Concerning a Requirement for Equitable Allocation of the Costs of Defending a Construction Defect Claim,” sponsored by Senators Grantham and Angela Williams and Representatives Duran and Wist, was introduced on January 11th and assigned to the Senate Business, Labor, and Technology Committee. This bill affects construction defect actions in which more than one insurer has a duty to defend a party by providing that if the carriers cannot agree regarding how to allocate defense costs within 45 days of the filing of a contribution action, a court must conduct a hearing regarding the apportionment of the costs of defense, including reasonable attorneys’ fees, among all carriers sharing in the duty to defend within 60 days after an insurer files its claim for contribution, unless the carriers agree to resolve the issue through a mutually agreeable, alternative process. The bill further provides that the court must make a final apportionment of costs after entry of a final judgment resolving all of the underlying claims against the insured. The bill also makes clear that an insurer seeking contribution may also make a claim against an insured or additional insured who chose not to procure liability insurance during any period of time relevant to the underlying action. Finally, the bill states that a claim for contribution may be assigned and that bringing such a claim does not affect any insurer’s duty to defend. The Senate Business, Labor, and Technology Committee heard SB 17-045 on February 8th and referred the bill, as amended, to the Senate Appropriations Committee.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Traub Lieberman Partner Lisa Rolle Wins Summary Judgment on Behalf of Contract Utility Company in Personal Injury Action
April 25, 2023 —
Lisa M. Rolle - Traub LiebermanTraub Lieberman Partner Lisa Rolle obtained summary judgment on behalf of a contract utility company (“Utility Company”) in a matter brought before the New York Supreme Court, Queens County. In the complaint, the Plaintiff alleged that she sustained injuries as a result of a trip and fall accident where the Plaintiff’s foot allegedly went into a hole in the grass strip abutting the sidewalk adjacent to a premises located in Queens, NY. The Plaintiff claimed that the defect in the sidewalk was caused by the removal of a utility pole at the curb strip that was not correctly backfilled.
The Defendant Utility Company is in the business of inspecting, treating, and repairing utility and telecommunication structures, including wooden utility poles. TLSS was successfully able to establish that, three years prior to the accident, the Utility Company was retained to conduct a visual inspection of the subject pole. However, the Utility Company does not and has not owned, installed, removed or replaced in-service utility poles in New York or at the location of the alleged accident. Further, TLSS established that the Utility Company did not service or remove the subject pole at the accident site or backfill the curb strip.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com