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    KB to Spend $43.2 Million on Florida Construction Defects

    Contractor Underpaid Workers, Pocketed the Difference

    Falls Requiring Time Off from Work are Increasing

    COVID-19 Likely No Longer Covered Under Force Majeure

    HUD Homeownership Push to Heed Lessons From Crisis, Castro Says

    Contract Change # 10: Differing Site Conditions (law note)

    Court of Appeals Finds Additional Insured Coverage Despite “Care, Custody or Control” Exclusion

    Travelers v. Larimer County and the Concept of Covered Cause of Loss

    University of Tennessee Commits to $1.9B Capital Plan

    Federal Court Sets High Bar for Pleading Products Liability Cases in New Jersey

    Motions to Dismiss, Limitations of Liability, and More

    Vallagio v. Metropolitan Homes: The Colorado Court of Appeals’ Decision Protecting a Declarant’s Right to Arbitration in Construction Defect Cases

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    Is the Sky Actually Falling (on Green Building)?

    November 03, 2016 —
    I have spoken on many occasions here at Construction Law Musings and elsewhere about the risks and rewards for contractors found in sustainable construction. The rewards were fairly apparent. New markets, government incentives and the desires of owners to be “green” clearly point toward a need for contractors to get into the sustainable building game. However, when I was first writing my Eeyore like thoughts most of the thoughts of all us construction attorneys were speculative. Whether because wholesale “green” construction was relatively new or because the court process was relatively slow, there were not many ways to test if our, shall we say “less optimistic,” predictions were going to come to pass. For better or worse, several of the more dire predictions have come true. One major green construction debacle is the Destiny USA litigation. I cannot possibly set out all of the various issues as well as my friend and colleague Chris Cheatham does in his e-book about the project and its aftermath. I highly recommend this e-book and the posts found at Chris’ Green Building Law Update blog for those of you interested in how the IRS, the USGBC and the Green Bonds Program interact to cause many a pitfall for construction and design professionals. Read the court decision
    Read the full story...
    Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Will Superusers Future-Proof the AEC Industry?

    May 13, 2019 —
    Design professionals who leverage tools and technology and, at the same time, have people skills, are essential to the future of the industry. They are Superusers, the protagonists of the latest book by Randy Deutsch. Randy Deutsch is an architect, educator, workshop leader, writer, and international keynote speaker. I had a chance to interview him about his book, Superusers: Design Technology Specialists and the Future of Practice. First, I was curious to know why he chose this topic for his fourth book. He explains: “Right now, it made a lot of sense to focus on the individual, not focus on collaboration and building teams, and really define what each individual team member should be.” Who Are Superusers? IT, technology, and tool specialists are typically experts in a relatively narrow field. Designers, especially architects, must have a wider perspective. Superusers are design technologists; liaisons between business needs and technology solutions. They demonstrate certain skillsets and mindsets. Read the court decision
    Read the full story...
    Reprinted courtesy of Aarni Heiskanen, AEC Business
    Mr. Heiskanen may be contacted at aec-business@aepartners.fi

    Building Inspector Jailed for Taking Bribes

    September 30, 2011 —

    The LA Times reports that Raoul Germain, a city Los Angeles building inspector has been sentenced to 21 months in prison after pleading guilty to taking bribes. Germain was caught as part of an FBI sting operation in which he approved work in exchange for thousands of dollars in bribes. The Times notes that that in some cases, Germain never visited the construction sites. Germain was offered a chance to cooperate with investigators. His lawyer, Steve Cron asked the Times, “What do you think happens to someone who cooperates?”

    In addition to Germain, another city inspector has pleaded guilty to taking bribes and two more employees of the Department of Building and Safety have been fired in connection with the investigation.

    Read the full story…

    Read the court decision
    Read the full story...
    Reprinted courtesy of

    Ill-fated Complaint Fails to State Claims Against Broker and FEMA

    September 10, 2014 —
    A complaint lodged against the insureds' broker and FEMA was dismissed for failure to state a claim. Lopez v. State Farm Gen. Ins. Co., 2014 U.S. Dist. LEXIS 109803 (E.D. La. Aug. 8, 2014). The insureds held a Standard Flood Insurance Policy (SFIP) issued by FEMA, but sold by the broker. The insureds alleged that their property was totally destroyed by Hurricane Isaac. FEMA paid the insureds $234,513.02 for damage to their dwelling and $80,566.17 for its contents, for a total of $315,079.19. This was $34,920.81 below the policy limits. The insureds sued, claiming FEMA negligently miscalculated their damages, misvalued their property, and improperly adjusted their claim. The insureds also alleged that the broker failed to properly advise them regarding the nature of their coverage, the true value of their property, or to purchase the correct amount of insurance on their behalf. The negligent procurement claim against the broker failed because the insureds did not allege any specific facts tending to establish that the broker failed to use reasonable diligence in procuring their insurance. Likewise, the negligent misrepresentation claim against the broker was dismissed. Insurance agents had a duty to supply their customers with correct information, and they could be liable for negligent misrepresentation if they provided incorrect information and an insured was damaged. Here, the insureds did not allege a breach of the duty to supply correct information. Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Dispute Resolution Provision in Subcontract that Says Owner, Architect or Engineer’s Decision Is Final

    March 29, 2021 —
    In subcontracts, it is not uncommon to see a provision that says something to the effect: Should any dispute arise between the parties respecting the true construction or interpretation of the Plans, Specifications and/or the Contract Requirements, the decision of the Owner or the Owner’s designated representative as set forth in the General Contract shall be final. This is a provision in a subcontract dealing with dispute resolution, typically when there is a dispute as to whether the subcontractor is performing extra-contractual or base contract work regarding an “interpretation of the Plans, Specifications, and/or the Contract Requirements.” It is not uncommon for there to be a dispute as to whether certain work is within the subcontractor’s scope of work or outside the subcontractor’s scope of work and subject to a change order. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    Time is of the Essence, Even When the Contract Doesn’t Say So

    January 11, 2021 —
    Welcome to 2021! As often happens here at Construction Law Musings, the year starts with a few posts on notable construction law cases that dropped in the past year or so. Not only does this review hopefully help you keep up, but helps me keep up with the latest developments (one of the reasons why I keep blogging). The first of these cases is Appalachian Power Co. v. Wagman Heavy Civil, Inc. out of the Western District of Virginia federal court. In this case, Wagman Heavy Civil, Inc. (“Wagman”) and the Virginia Department of Transportation (“VDOT”) contracted for the design and construction of a highway interchange project (the “Project”). Wagman and the Appalachian Power Company (“APCO”) entered into a written contract (the “Written Contract”) for APCO to remove and relocate its utility structures (the “Work”) in order to facilitate construction for the Project. Read the court decision
    Read the full story...
    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Mold Due to Construction Defects May Temporarily Close Fire Station

    October 25, 2013 —
    Fire Station 5 in Chino, California is about to undergo mold remediation. Ruben Martinez, the city’s Public Works Director, expects the station to be closed during remediation. “We’d like to get the firemen out of there so there isn’t any potential infection or worker’s compensation issues,” he said. However, Fire Department Captain Steve Harrison did not think the station needed to be closed. “We are adamant the station stays staffed while the remediation work is completed.” The mold came about due to problems the station has had with roof leaks since its opening in 1999. The current set of repairs will cost between $12,000 and $25,000, and the city is discussing matters with its insurer to determine who will pay for the repairs. It’ won’t be the original contractor, as the building is past the 10-year limit for construction defect claims. Even if a claim were possible, the contractor who built the building is bankrupt. Read the court decision
    Read the full story...
    Reprinted courtesy of

    Traub Lieberman Partner Greg Pennington Wins Summary Judgment in Favor of Property Owner

    September 12, 2022 —
    In a case brought before the Superior Court of New Jersey, Traub Lieberman Partner Greg Pennington won a motion for summary judgment in favor of their client, the owner of a residential property (“Property Owner”) in Atlantic City, New Jersey. The Property Owner had retained a Construction Company (“Construction Company” or “Contractor”) to perform renovations to the residence, which included building a new staircase. The Plaintiff alleged that while walking down a set of temporary wooden steps on the property, the third step broke, which caused him to fall and resulted in the alleged injuries. The Plaintiff brought suit against the Property Owner and Construction Company for personal injuries as a result of the alleged fall. In the contract between the Property Owner and the Construction Company, it is stated that “[the Contractor] shall be solely responsible for all construction methods and materials and for coordinating all portions of the Work….The Contractor warrants to [the Property Owner] that all materials and equipment incorporated are new and that all work shall be of good quality and free of defects or faults.” The contract continues to state that the Construction Company shall indemnify and hold harmless the Property Owner against all claims, which includes damages, losses, expenses, legal fees and other costs that might arise from the Construction Company’s performance of the work under the contract. Read the court decision
    Read the full story...
    Reprinted courtesy of Gregory S. Pennington, Traub Lieberman
    Mr. Pennington may be contacted at gpennington@tlsslaw.com