Fairfield Connecticut Building Expert Directory

Rancosky Adopts Terletsky: Pennsylvania Supreme Court Sets Standard for Statutory Bad Faith Claims

September 28, 2017 — John Anooshian & Sean Mahoney - White & Williams LLP
Earlier today, in a case of first impression, the Pennsylvania Supreme Court adopted the Terletsky two-part test for proving a statutory “bad faith” claim under 42 Pa. C.S.A. § 8371, which requires that a plaintiff present “clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington National Insurance Company, No. 28 WAP 2016 (Pa. Sept. 28, 2017). The court further ruled that proof of an insurer’s “subjective motive of self-interest or ill-will,” while potentially probative of the second prong of the test, is not a requirement to prevail under § 8371. Evidence of an insurer’s “knowledge or reckless disregard for its lack of a reasonable basis” for denying a claim alone, according to the court, is sufficient even in cases seeking punitive damages. Reprinted courtesy of John Anooshian, Saxe Doernberger & Vita, P.C. and Sean Mahoney, Saxe Doernberger & Vita, P.C. Mr. Anooshian may be contacted at anooshianj@whiteandwilliams.com Mr. Mahoney may be contacted at majoneys@whiteandwilliams.com Read the court decision
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Blackstone Said in $1.7 Billion Deal to Buy Apartments

January 21, 2015 — Hui-yong Yu – Bloomberg
Blackstone Group LP (BX), the biggest owner of U.S. single-family houses, agreed to buy 36 apartment properties across the country for about $1.7 billion as it expands its rental business, according to two people with knowledge of the transaction. The low-rise, garden-style properties are being sold by Praedium Group, a New York-based real estate investment firm, and contain about 11,000 apartments, said the people, who asked not to be identified because the deal is private. About half of the buildings are in California, Washington, D.C., and Boston, with the rest located around the U.S., they said. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

The Future of Construction Work with Mark Ehrlich

February 19, 2024 — Aarni Heiskanen - AEC Business
In this episode of the AEC Business podcast, I had the pleasure of speaking with Mark Ehrlich, a veteran of the construction industry from the USA and the author of “The Way We Build: Restoring Dignity to Construction Work.” Our conversation delved into the evolving landscape of construction work and the challenges faced by construction workers today. Mark shared his extensive background, starting as a carpenter and rising through the ranks to become the head of a 25,000-member union organization. His experience spans decades, and he has authored three books and numerous articles on labor issues. The historical labor shifts We discussed the historical shift from a predominantly unionized construction workforce to the current bifurcated system in the US, where union strongholds in the north contrast sharply with the non-union, lower-wage environments in the south and other regions. Mark highlighted the issues of wage theft, declining safety standards, and the exploitation of undocumented workers. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Performance Bond Surety Takeover – Using Terminated Contractor To Complete The Work

January 06, 2020 — David Adelstein - Florida Construction Legal Updates
When a contractor is defaulted under a performance bond, can its surety hire the same defaulted contractor to complete the work? Stated differently, can the performance bond surety engage its defaulted bond-principal in taking over and completing the same work the contractor was defaulted under? The answer is “yes” if you are dealing with a standard form AIA A312 performance bond (and other bond forms that contain analogous language), as demonstrated by the recent decision in Seawatch at Marathon Condominium Association, Inc. v. The Guarantee Company of North America, 2019 WL 4850194 (Fla. 3d DCA 2019). In this case, a condominium association hired a contractor in a multi-million dollar contract to renovate condominium buildings. The contractor provided the association, as the obligee, a performance bond written on an AIA A312 performance bond form. During construction, the association declared the contractor in default and terminated the contractor. In doing so, the association demanded that the performance bond surety make an election under paragraph 4 of the AIA A312 bond form that gave the surety the following options: 4.1 Arrange for the CONTRACTOR, with consent of the OWNER, to perform and complete the Contract; or 4.2 Undertake to perform and complete the Contract itself, through its agents or through independent contractors; or 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the OWNER for a contract for performance and completion of the Contract, arrange for a contract to be prepared for execution by the OWNER and the contractor selected with the OWNER’S concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the Bonds Issued on the Contract, and pay to the OWNER the amount of damages as described in paragraph 6 in excess of the Balance of the Contract Price incurred by the OWNER resulting from the CONTRACTOR Default; or Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Trump Tower Is Now One of NYC’s Least-Desirable Luxury Buildings

July 08, 2019 — Shahien Nasiripour - Bloomberg
Trump Tower, once the crown jewel in Donald Trump’s property empire, now ranks as one of the least desirable luxury properties in Manhattan. The 36-year-old building has been turned into a fortress since Trump won the presidency, ringed with concrete barriers and the two main entrances partially blocked off. It hasn’t been substantially updated in years. And Trump’s name has been a huge turnoff in liberal New York City. For anyone who owns a unit in the tower, the past two years have been brutal. Most condo sales have led to a loss after adjusting for inflation, property records show. Several sold at more than a 20% loss. By contrast, across Manhattan, just 0.23% of homes over the past two years sold at a loss, according to real-estate data provider PropertyShark, although the firm doesn’t adjust for inflation. Read the court decision
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Reprinted courtesy of Shahien Nasiripour, Bloomberg

Massachusetts High Court: Attorney's Fee Award Under Consumer Protection Act Not Covered by General Liability Insurance Policy

September 19, 2022 — Jeffrey J. Vita & David G. Jordan - Saxe Doernberger & Vita, P.C.
In the case of Vermont Mutual Insurance Co. v. Poirier, 189 N.E.3d 306 (Mass. 2022), Massachusetts’ Supreme Judicial Court concluded that an award of attorney's fees pursuant to Chapter 93A (Massachusetts’ Consumer Protection Act) is not covered under an insured’s general liability insurance policy. Applying Massachusetts law, the Court found that a statutory award of attorney’s fees stemming from a bodily injury claim is not reasonably considered “damages because of bodily injury” or “costs taxed against the insured” so as to trigger general liability coverage. Facts of the Case A Servpro company (owned by Mr. and Mrs. Poirier) was hired to clean up a basement after a sewage spill. The owners of the home were injured by fumes from chemicals used in the cleanup and accordingly brought suit against the Poiriers and their Servpro business. In the lawsuit, the homeowners alleged negligence, breach of contract, and also a Chapter 93A claim, asserting breach of warranty of merchantability and warranty of fitness for a particular purpose. Prior to trial, the plaintiffs waived the negligence and breach of contract claims and sought a bench trial on the Chapter 93A claims alone. Reprinted courtesy of Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and David G. Jordan, Saxe Doernberger & Vita, P.C. Mr. Vita may be contacted at JVita@sdvlaw.com Mr. Jordan may be contacted at DJordan@sdvlaw.com Read the court decision
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Construction Delays: Which Method Should Be Used to Calculate Delay?

July 25, 2021 — David Adelstein - Florida Construction Legal Updates
If you need to prove and allocate construction project delays, you should engage a scheduling consultant qualified with CPM (critical path method) analysis. You should also engage counsel to assist in preserving your rights, as well as presenting and maximing your arguments for delay. There are numerous methodologies used to quantify and allocate delay. You want to discuss the most effective analysis for your case and facts including whether you want/should use a forward-looking prospective analysis or a backward-looking retrospective analysis that factors in as-built data. In doing so, you want to make sure you understand the pros and cons of each methodology including the bases to attack the methodology that will be subject to cross-examination. The five primary CPM methodologies are as follows:

As-Planned Versus As-Built. This methodology compares the as-planned baseline schedule to an as-built schedule reflecting progress to assign delay. An as-built schedule that reflects progress includes actual start dates, finish dates, and durations. The actual dates and durations are compared with the as-planned dates and durations on the baseline schedule to determine delay. Under this methodology, the delay impact is determined retrospectively.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Coronavirus, Force Majeure, and Delay and Time-Impact Claims

March 30, 2020 — Garret Murai - California Construction Law Blog
It’s scary, uncertain times as the world grasps with how to deal with the coronavirus pandemic that has now spread to every continent on the globe with the exception of Antarctica. Although this is a global crisis, it has, and for the immediately future will continue to have, a direct impact on us individually as well our industry. While the impact of the coronavirus on the construction industry is uncertain, what is certain, is that it will have an impact, whether on the construction labor market, on construction supply chains, on the ability of contractors to deliver projects on time and within budget, and on decisions by owners whether to move forward with projects altogether. According to Ken Simonson, chief economist with the Associated General Contractors of America, during an interview at the ConExpo conference this past week in Las Vegas, while the coronavirus crises “is a story evolving by the hour . . . the impacts on construction are going to happen, but it’s hard to say how extensive, how long they’ll last, [and] how soon they’ll show up.” From a legal perspective, the coronavirus, and really any natural disaster, from the “Campfire Fire” in Northern California in 2018 to the “Big One” which can happen anytime, has the potential to adversely impact a construction project or shut it down completely. This in turn raises two different, but interrelated legal concepts: (1) force majeure; and (2) delay and time-impact claims. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES