Fairfield Connecticut Building Expert Directory

New York Supreme Court Building Opening Delayed Again

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
SI Live reported that the opening of the new state Supreme Court building in St. George, New York is delayed again due to problems with the air-conditioning and elevator systems. Delay, however, is not new to this project, which was originally expected to be completed over a decade ago. Initial delay was introduced “with the finding of remains from a 19th-century burial ground at the site, a former municipal parking lot, and more recently, with construction set-backs and other tie-ups,” according to SI Live. When completed, the new “building will boast 14 courtrooms, jury assembly, hearing and deliberation rooms, judges' chambers and court offices. There will also be holding cells for prisoners.” Read the court decision
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Why You May Not Want a Mandatory Mediation Clause in Your Construction Contract

October 26, 2017 — Christopher G. Hill - Construction Law Musings
I know, you are likely surprised by the title of this post. You’ve read Construction Law Musings for a while now and know that as a Virginia Supreme Court certified mediator, I have advocated mediation as a great way to resolve your construction disputes short of the expensive and time consuming litigation process. Knowing all of this, you as a reader of this blog (thanks by the way) probably wonder why I think that a mandatory mediation clause may not be the best thing for your construction contracts. I can understand your possible confusion (particularly in light of this post from @sethsmiley). Please don’t take the headline as my suddenly taking a new view of mediation. Short of simply resolving the dispute between the parties to the construction contract, mediation still remains number one on my list of construction dispute resolution mechanisms. I still believe that it is useful even when a resolution is not met after a good faith attempt by both sides to come to a business agreement. However, I also believe that mediation works best when entered into voluntarily by the parties. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Allegations Confirm Duty to Defend Construction Defect Claims

June 11, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Relying upon the same case cited by the Hawaii Supreme Court in its seminal decision on duty to defend, the federal district court determined the allegations sufficiently established a duty to defend construction defect claims. Voeller Constr. v. Southern-Owners Ins. Co., 2014 U.S. Dist. LEXIS 61862 (M. D. Fla. May 5, 2014). The Bay Harbor Clearwater Condominium Association, Inc. sued Voeller Construction for statutory breach of warranty and building code violations which allegedly caused damage to the condominium structure. The complaint alleged that the damage was unknown to the unit owners at the time they purchased their units. The project was completed in 2007. Expert reports attached to the complaint listed July 7, 2010, as the earliest date of discovery of the damage to the property. The CGL policies were effective from January 24, 2007 to May 9, 2009. Therefore, the insurer argued there was no coverage because the alleged "property damage" was discovered for more than one year after the policies expired. The court determined there was a duty to defend. Citing Trizec Props., Inc. v. Biltmore Constr. Co., 767 F.2d 810 (11th Cir. 1985), the court noted that if the complaint alleged facts which created potential coverage under the policy, the duty to defend was triggered. The Hawaii Supreme Court relied on Trizec and made the same ruling in Dairy Road Partners v. Island Ins Co., Ltd., 92 Haw. 398, 412, 992 P.2d 93, 107 (2000). 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

Ivanhoe Cambridge Plans Toronto Office Towers, Terminal

October 01, 2014 — Scott Deveau and Katia Dmitrieva – Bloomberg
Ivanhoe Cambridge, the real estate arm of the Caisse de depot et placement du Quebec, plans to build a C$2-billion ($1.8 billion) officer tower and bus terminal complex in Toronto’s financial district in partnership with regional transport authority Metrolinx. Construction is expected to begin as early as spring 2015, with a new GO bus terminal set to open three years later, the parties said in a joint statement. “We want this project to be iconic for Toronto through inspired design and intelligent integration of public transit with green spaces,” Daniel Fournier, chief executive officer of Montreal-based Ivanhoe Cambridge, said in the statement. The total cost of the complex is expected to be C$2 billion, Fournier said at a press conference in Toronto. Read the court decision
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Reprinted courtesy of Scott Deveau and Katia Dmitrieva, Bloomberg
Mr. Deveau may be contacted at sdeveau2@bloomberg.net

Sales of New U.S. Homes Rose More Than Forecast to End 2014

January 28, 2015 — Bloomberg News
(Bloomberg) -- Purchases of new homes in the U.S. jumped in December to the highest level in more than six years, a sign the industry is poised to keep expanding in 2015. Sales increased 11.6 percent to a 481,000 annualized pace, exceeding all estimates in a Bloomberg survey of economists and the most since June 2008, figures from the Commerce Department showed Tuesday in Washington. Demand increased in three of four regions. Gains in employment, borrowing costs close to historically low levels and easing credit may prompt more prospective buyers to enter the housing market. The improving outlook is driving up confidence among builders, and companies such as D.R. Horton Inc. and Lennar Corp. project the recovery will be sustained. Read the court decision
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Reprinted courtesy of Bloomberg News

The Year 2010 In Review: Design And Construction Defects Litigation

February 25, 2011 — Candace Matson, Harold Hamersmith, and Helen Lauderdale

This article is the first in a series summarizing construction law developments for 2010

1. Centex Homes v. Financial Pacific Life Insurance Co., 2010 U.S. Dist. LEXIS 1995 (E.D. Cal. 2010)

After settling numerous homeowners’ construction defect claims — and more than ten years after the homes were substantially completed — a home developer brought suit against one of the concrete fabrication subcontractors for the development seeking indemnity for amounts paid to the homeowners, as well as for damages for breach of the subcontractor’s duties to procure specific insurance and to defend the developer against the homeowners’ claims. The subcontractor brought a motion for summary adjudication on the ground the developer’s claims were barred by the ten year statute of repose contained in Code of Civil Procedure Section 337.15.

The District Court agreed the developer’s claim for indemnity was barred by Section 337.15. And it held that because the damages recoverable for breach of the subcontractor’s duty to purchase insurance are identical to the damages recoverable through the developer’s indemnity claim, the breach of duty to procure insurance claim also was time-barred. The District Court, however, allowed the claim for breach of the duty to defend to proceed. The categories of losses associated with such a claim (attorneys’ fees and other defense costs) are distinct from the damages recoverable through claims governed by Section 337.15 (latent deficiency in the design and construction of the homes and injury to property arising out of the latent deficiencies).

2. UDC — Universal Development v. CH2M Hill, 181 Cal. App. 4th 10 (6th Dist. Jan. 2010)

Indemnification clauses in construction agreements often state that one party to the agreement — the “indemnitor” — will defend and indemnify the other party from particular types of claims. Of course, having a contract right to a defense is not the same as actually receiving a defense. Any indemnitor attempting to avoid paying for defense costs can simply deny the tender of defense with the hope that when the underlying claim is resolved the defense obligations will be forgotten. In the past, when parties entitled to a defense — the “indemnitees” — had long memories and pressed to recover defense costs, indemnitors attempted to justify denying the tender by claiming their defense obligations coincided with their indemnity obligations and neither arose until a final determination was made that the underlying claim was one for which indemnity was owed.

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Reprinted courtesy of Candace Matson, Harold Hamersmith, and Helen Lauderdale, Sheppard Mullin Richter & Hampton LLP. Ms. Matson can be contacted at cmatson@sheppardmullin.com, Mr. Hamersmith can be contacted at hhamersmith@sheppardmullin.com, and Ms. Lauderdale can be contacted at hlauderdale@sheppardmullin.com.

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Construction Leads World Trade Center Area Vulnerable to Flooding

February 07, 2013 — CDJ STAFF
The Port Authority of New York and New Jersey and outside experts are looking at ways to make the World Trade Center area less vulnerable to flooding, both as construction continues and after it has concluded. Much of the site is built on landfill and the Hudson River is held back by retaining walls. Hurricane Sandy caused $2 billion of damage to sites managed by the Port Authority, including $800 million for the PATH train system. Construction and increased vulnerability to flooding is likely to continue for at least eight more years. Read the court decision
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Subcontractors Have Remedies, Even if “Pay-if-Paid” Provisions are Enforced

February 19, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
In a recent case in Kentucky[1], a sub-tier subcontractor sued the general contractor and owner for failure to pay for extra work. At the trial, the court held the subcontractor was entitled to recover under the theories of implied contracts and unjust enrichment, even though the subcontract contained a “pay-if-paid” clause. All parties appealed. In particular, the general contractor asserted that the pay-if-paid provision in the subcontract precluded recovery by the subcontractor. The issue was petitioned to the Supreme Court of Kentucky. The question to be resolved by the Supreme Court of Kentucky was whether a pay-if-paid provision was enforceable as between a general contractor and subcontractor, and if so, whether the subcontractor could nevertheless pursue the owner directly for payment notwithstanding a lack of privity between the owner and subcontractor. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

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