FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.

April 20, 2011 — Beverley BevenFlorez CDJ STAFF

After reviewing the decision in Abraham v. T. Henry Construction, et al., the Oregon Supreme Court affirmed that a tort claim for property damage arising from construction defects may exist even when the homeowner and the builder are in a contractual relationship.



When the case was initially filed, the plaintiffs alleged breach of contract and negligence. The defendants moved for summary judgment arguing that one, the claim was barred by the six-year statute of limitations and two, no special relationship (such as one between a doctor and patient) existed. The court agreed with the defendants. However, the Court of Appeals while affirming the trial court’s decision on breach of contract reversed the decision on negligence. The Court of Appeals stated that an administrative or statute rule could establish a standard of care independent from the contract.



The Oregon Supreme Court gave an example of cases where a tort claim could exist when a contract is present: “If an individual and a contractor enter into a contract to build a house, which provides that the contractor will install only copper pipe, but the contractor installs PVC pipe instead (assuming both kinds of pipe comply with the building code and the use of either would be consistent with the standard of care expected of contractors), that failure would be a breach of contract only. […] If the failure to install the copper pipe caused a reduction in the value of the house, the plaintiff would be able to recover that amount in an action for breach of contract. […] On the other hand, if the contractor installed the PVC pipe in a defective manner and those pipes therefore leaked, causing property damage to the house, the homeowner would have claims in both contract and tort. […] In those circumstances, the obligation to install copper instead of PVC pipe is purely contractual; the manner of installing the pipe, however, implicates both contract and tort because of the foreseeable risk of property damage that can result from improperly installed pipes.”



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Corporate Transparency Act’s Impact on Real Estate: Reporting Companies, Exemptions and Beneficial Ownership Reporting (webinar)

December 04, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
On October 23, 2023, colleague Andrew Weiner and Kevin Gaunt, counsel at Hunton Andrews Kurth, examined the Corporate Transparency Act (CTA), effective Jan. 1, 2024, and its impact on real estate entities and transactions, including who is considered a reporting company subject to new beneficial ownership information (BOI) reporting requirements and whether an exemption applies. The panel also discussed certain state laws that impose similar reporting requirements as the CTA and described best practices for real estate counsel to assist their clients with preparing for the CTA’s implementation and ongoing compliance. The panel also reviewed other important considerations, including:

1. Which real estate entities will likely be most affected by the CTA’s implementation and why?
2. What exemptions may apply?
3. How will the CTA’s reporting requirements affect real estate transactions for lenders and investors/buyers?
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team


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Court Rules Planned Development of Banning Ranch May Proceed

June 10, 2015 — Kristian B. Moriarty and Lawrence S. Zucker II – Haight Brown & Bonesteel, LLP
In Banning Ranch Conservancy v. City of Newport Beach (filed 5/20/2015, No. G049691), the California Court of Appeal, Fourth District, held the Environmental Impact Report prepared by the City of Newport Beach for the partial development of Banning Ranch complied with California environmental protection statutes and local ordinances. Under the California Environmental Quality Act (“CEQA”), a city desiring to approve or carry out a project that may have significant effect on the environment must prepare an environmental impact report (“EIR”) designed to provide the public with detailed information about the effect which a proposed project will have on the environment. The California Coastal Act of 1976 provides for heightened protection of environmentally sensitive habitat areas (“ESHA”) defined as any “area in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments.” In 2006, the City of Newport Beach adopted a General Plan for the physical development of the city. The plan specifically identifies Banning Ranch as having significant value as a wildlife habitat and open space resource for citizens. The general plan includes a primary goal of complete preservation of Banning Ranch as open space. To the extent the primary goal cannot be achieved, the plan identifies a secondary goal allowing limited development of Banning Ranch “to fund preservation of the majority of the property as open space.” The plan also requires the City to coordinate any development with the state and federal agencies. Reprinted courtesy of Kristian B. Moriarty, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Mr. Moriarty may be contacted at kmoriarty@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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While Starts Fall, Builder Confidence and Permits are on the Rise

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The National Association of Home Builders’ (NAHB) Eye on Housing reported that “the NAHB/Wells Fargo Housing Market Index and the expansion of housing permits, suggest more growth ahead.” While the Census Bureau and HUD reported that housing starts in May declined 11.1%, Eye on Housing points to a positive sign in that building permits were up 11.8% in the same month. Read the court decision
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EPA Rejects Most of N.Y.’s $511 Million Tappan Zee Loan

September 17, 2014 — Freeman Klopott – Bloomberg
A $511 million loan approved by a New York environmental agency to help fund the construction of a new $4 billion Tappan Zee Bridge was rejected almost entirely by the U.S. Environmental Protection Agency. The loan was intended to drive down borrowing costs for the replacement span being built across the Hudson River, with half of it being provided at zero interest. The agency, the Environmental Facilities Corp., approved the borrowing in June, saying it could use the funds from a program that targets clean-water projects. The EPA said today in a letter to state officials that building a new bridge doesn’t fit the intention of the program, which is backed by federal dollars. The agency, citing the U.S. Clean Water Act, said only $29.1 million could be allowed. Read the court decision
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Reprinted courtesy of Freeman Klopott, Bloomberg
Mr. Klopott may be contacted at fklopott@bloomberg.net

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The Practical Distinction Between Anticipatory Breach and Repudiation and How to Deal with Both on Construction Projects

June 10, 2024 — Devon Griger - ConsensusDocs
When a multilevel construction project is underway and a contractor or subcontractor isn’t performing as expected, it can be difficult to know how to address the low performance without putting the parties’ contract and good working relationship at risk. However, there may come a time when poor performance lapses into a something much worse: an anticipatory breach or repudiation of the subject contract. Imagine Scenario One: You are a general contractor managing a large-scale construction project and one of your subcontractors is falling behind on their work. The project manager for the subcontractor calls you and says, “Look, I don’t think we’re going to be able to hit our next milestone, and probably not the next one after that.” A conversation like this would generally trigger concern for most general contractors, but it would not necessarily invoke panic. These types of delay conversations are not uncommon on large scale projects. Compare that example, however, with Scenario Two, where the subcontractor instead says, “We received an offer to work another job for much more money, so we’re leaving the project site today and will not be returning.” This is obviously different (and potentially worse) than Scenario One, and likely cause for much greater concern. Read the court decision
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Reprinted courtesy of Devon Griger, Jones Walker
Ms. Griger may be contacted at dgriger@joneswalker.com

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Delaware Strengthens Jurisdictional Defenses for Foreign Corporations Registered to Do Business in Delaware

April 28, 2016 — Randall MacTough, Timothy Martin & Christian Singewald – White & Williams LLP
The days of companies being sued in Delaware based solely upon their compliance with Delaware’s registration statutes appear over. Recently, the Delaware Supreme Court, in Genuine Parts Co. v. Cepec[1], held that Delaware Courts cannot exercise jurisdiction over a foreign corporation registered to do business in Delaware for claims unrelated to its conduct in Delaware. In Delaware, foreign corporations must register to do business and designate a registered agent in Delaware to accept service of process to sell its products or services.[2] Since 1988, Delaware has construed these registration laws as foreign corporations’ express consent to general jurisdiction.[3] Reprinted courtesy of White & Williams LLP attorneys Randall MacTough, Timothy Martin and Christian Singewald Mr. MacTough may be contacted at mactoughr@whiteandwilliams.com Mr. Martin may be contacted at martint@whiteandwilliams.com Mr. Singewald may be contacted at singewaldc@whiteandwilliams.com Read the court decision
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CDJ’s #2 Topic of the Year: Ewing Constr. Co., Inc. v. Amerisure Ins. Co., 2014 Tex. LEXIS 39 (Tex. Jan.17, 2014)

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Ewing received quite a bit of attention around the blogosphere, and Tred R. Eyerly of Damon Key Leong Kupchak Hastert wrote a nicely succinct case summary on his blog, Insurance Law Hawaii: “In a much anticipated decision, the Texas Supreme Court ruled that a general contractor who agrees to perform its work in a good and workmanlike manner does not "assume liability" for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion.” Read the court decision
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