Fairfield Connecticut Building Expert Directory

Another Exception to Fraud and Contract Don’t Mix

January 18, 2021 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, we’ve discussed the fact that, in Virginia, the “economic loss rule” generally renders claims of fraud and construction contracts like oil and water. This is true in most states, including Florida. What this means is that as a general rule where any party is supposed to perform under a contract, and fails to do so, the Virginia courts will dismiss a fraud claim out of a desire to avoid turning any breach of contract (read “broken promise”) case into a claim for fraud. As you have likely gathered by the title of this post, there are exceptions. One is a properly plead Virginia Consumer Protection Act (“VCPA”) claim. Another, found in a recent Loudoun County, VA Circuit Court opinion in Madison v. Milton Home Systems Inc., is so called fraud in the inducement (in other words, inducing a person to enter the contract under false pretenses). In Madison the Court analyzed several counts based upon a modular home contract and so called “performance agreement” guarantying that the home would be installed by the manufacturer in the event that it’s installer failed to perform. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

A Word to the Wise about Construction Defects

October 10, 2013 — CDJ STAFF
A post on The Buckner Blog suggests that “construction defects” are the scariest words for architects, engineers, and contractors. With the possible outcomes of a damaged reputation and astronomical costs, it’s not a surprise. Further, builders are using techniques that “have yet to be tested in real application over time.” As a result, “whoever has the deepest pockets or the most to lose becomes the primary target.” While a commercial general liability policy might pay for damage caused by a construction defect, the post notes that “it does not, however, cover the costs to remedy your work.” That cost could be “greater than the actual property damages incurred.” The post recommends a combination of transferring risk and risk control In transferring risk, the builder uses “indemnification and hold harmless agreements as well as inditional insured requirements in their construction contracts.” They advise to “request coverage as an additional insured on a primary basis.” And then there’s risk control. “Work only with architects, engineers and contactors who have good reputations and a track record of performance. Don’t cut corners.” By some careful planning, builders might “sleep better at night.” Read the court decision
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Critical Updates in Builders Risk Claim Recovery: Staying Ahead of the "Satisfactory State" Argument and Getting the Most Out of LEG 3

December 11, 2023 — Gregory D. Podolak & Cheryl L. Kozdrey - Saxe Doernberger & Vita, P.C.
Builders risk claims routinely involve complicated and aggressive debate about the interplay between covered physical loss and uncovered faulty work. However, denials on this front have recently experienced a noticeable uptick in frequency, creativity, and aggressiveness. The insurer arguments concentrate in two key areas with a common theme – that any damage associated with a construction defect is not covered:

Defective construction does not qualify as a “physical” loss to trigger the insuring agreement; and
Any natural results of defective construction are excluded as faulty workmanship, even with favorable LEG 3 or similar language.

Neither of these arguments should impede access to coverage in the majority of scenarios. To ensure as much, it is incumbent on the savvy policyholder to understand the insurer tactics, be prepared to spot them early, and have thoughtful counter positions at the ready to address them decisively. Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and Cheryl L. Kozdrey, Saxe Doernberger & Vita, P.C. Mr. Podolak may be contacted at GPodolak@sdvlaw.com Ms. Kozdrey may be contacted at CKozdrey@sdvlaw.com Read the court decision
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Arizona Is the No. 1 Merit Shop Construction State, According to ABC’s 2020 Scorecard

February 15, 2021 — ABC - Construction Executive
Associated Builders and Contractors released its 2020 Merit Shop Scorecard, an annual ranking based on state policies and programs that encourage workforce development, strengthen career and technical education, grow careers in construction, and promote fair and open competition for taxpayer-funded construction projects. Arizona topped the rankings for the first time this year based on the state’s promotion of free enterprise and investment in tomorrow’s construction workforce, a top priority for ABC. Georgia followed Arizona in second place this year, up from fifth in 2019. Florida, a year-to-year high performer, remained in the top five after two years in the top rank in 2018 and 2019. “A foundational pillar of ABC is building the next generation of craft professionals, and the top states in this year’s rankings lead the country in workforce development policies,” said Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs. “The merit shop contractor can flourish in free enterprise environments created in states like Arizona and Florida, which has positive ripple effects on a state’s overall economic growth.” Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No One to Go After for Construction Defects at Animal Shelter

January 28, 2013 — CDJ STAFF
The Riverside County Animal Shelter in Thousand Palms has had problems since it opened in 2006, including floors that weren't able to withstand scratching by dogs and a malfunctioning HVAC system. The county's expenses only started with the $6.9 million cost of building the shelter, as the building has required almost constant repairs. Riverside County Supervisor John Benoit said that "there were shortcomings in the construction that became apparent later." The County can't sue, because the builder closed operations after a bankruptcy. "There's no one to go after," said Benoit. Read the court decision
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Multifamily Building Pushes New Jersey to Best Year since 2007

December 04, 2013 — CDJ STAFF
One project that might be seen as typical for New Jersey is Fair Lawn Promenade, which is being built at the former site of a Kodak film processing plant. The development will revitalize an existing area, rather than send people further from the cities into the New Jersey countryside. The development is within walking distance of a commuter rail station. This project and ones like it have pushed New Jersey to a 37% increase in residential building over last year. Almost 60% of this year’s residential building in New Jersey has been multifamily. And it’s likely to stay that way for a while, according to Patrick O’Keefe, an economist at CohnReznick. He says that millennials have less of a “commitment to the American dream of homeownership.” Read the court decision
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Crisis Averted! Pennsylvania Supreme Court Joins Other Courts in Finding that Covid-19 Presents No Physical Loss or Damage for Businesses

October 21, 2024 — Edward M. Koch & Marc L. Penchansky - White and Williams LLP
Seeking to find some relief from business losses experienced during the COVID-19 pandemic, many businesses turned to their property insurers for coverage for their lost income. A clear national trend emerged among courts deciding the issue, as most businesses could not establish coverage because they had not experienced a “direct physical loss of or damage to their covered property” as required by most policies. While this legal question may have become an afterthought for many attorneys, the question remained an open one in Pennsylvania while the Pennsylvania Supreme Court considered two contradictory holdings issued in the Superior Court on this topic. Compare Macmiles, LLC v. Erie Ins. Exch., 286 A.3d 331 (Pa. Super. 2022) (holding there was no coverage for loss of use of a commercial property unaccompanied by any physical alteration or other physical condition that rendered the property unusable or uninhabitable) with Ungarean v. CNA, 286 A.3d 353 (Pa. Super. 2022) (holding that the policy at issue was ambiguous and therefore the policy covered the insured for COVID-related business losses). Last week, the Supreme Court considered the Superior Court’s holdings in Macmiles and Ungarean and held, at long last, that COVID-19 did not cause a direct physical loss of or damage to covered property. Reprinted courtesy of Edward M. Koch, White and Williams LLP and Marc L. Penchansky, White and Williams LLP Mr. Koch may be contacted at koche@whiteandwilliams.com Mr. Penchansky may be contacted at penchanskym@whiteandwilliams.com Read the court decision
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Lake Texoma, Texas Condo Case may go to Trial

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
A lawsuit that’s created a “four-year legal battle” over alleged construction defects at the Diamond Pointe Condominium Tower in Lake Texoma, Texas may soon be going to trial, according to KTEN News. A lawyer representing the Diamond Pointe condominiums stated that “he has 15 witnesses lined up for a two-week trial.” KTEN News reported that according to court papers, “the Association alleges issues with the elevator, doors not opening properly, cracks, water leaks, and septic containment system leaks over the past decade.” Furthermore, the Association president Dan Baucum said to KTEN, “There were some foundation repairs that we needed to do and there are some problems with the building. It was not built to the specifications, at least that's what we're alleging, and that has allowed some water seepage in certain areas.” Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES