FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

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
Read the full story...
Reprinted courtesy of

---

Construction Client Advisory: The Power of the Bonded Stop Notice Extends to Expended Construction Funds

February 07, 2014 — Steven M. Cvitanovic - Haight Brown & Bonesteel LLP
CFO to CEO: “I have bad news, the developer on our biggest project has run out of money.” Frightening words for sure, but contractors should not overlook the bonded stop notice in situations where the construction lender seemingly has expended all construction funds. The recent case of Brewer Corporation v. Point Center Financial, Inc. 2014 WL 346636 illustrates this point. Contractors have two options at their disposal to secure payment on private works of improvement. The first is the mechanics lien. However, construction loan trust deeds are normally recorded prior to the commencement of construction and therefore have priority over mechanics liens. Connolly Development, Inc. v. Superior Court (1976) 17 Cal.3d 803, 827. Enter the bonded stop notice. The bonded stop notice requires the lender to withhold unexpended funds and, if it fails to do so, it is personally liable to the claimant for the full amount of the claim. But the stop notice also has the power of “priority” over any assignment of construction loan funds, whether before or after a stop notice is served. Civil Code § 3166, now Civil Code § 8544. Read the court decision
Read the full story...
Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

---

Builders Can’t Rely on SB800

October 01, 2013 — CDJ STAFF
In coming to their ruling on SB800, the California Court of Appeals looked to the legislative intent behind the law. Valentine Hoy, Timothy Hutter, and Erin Sedloff of Allen Matkins, in an article on the ruling, note that SB800 was written in response to Aas v. Superior Court, in which the court found that there was no remedy for construction defects that had not resulted in property damage. In the latest ruling, Liberty Mutual v. Brookfield Crystal Cove, LLC, the court concluded that SB800 was passed to give homeowners a way to address defects that had not lead to damage. However, the court also concluded that the legislature did not intend for SB800 to be the only remedy. In Liberty Mutual, the insurance company sought reimbursement for claims it had paid on a homeowner’s claim after a fire sprinkler pipe burst. Liberty Mutual had insured the homeowner and sought repayment from the builder. Escrow had closed on the home in 2004, the pipe burst in 2008, and Liberty Mutual filed their claim in 2011, seven years after the close of escrow. But for plumbing issues, SB800 has a four-year statute of limitations. The writers describe California as “a hotbed for construction defect litigation.” Due to the Liberty Mutual ruling, developers now “cannot rely on the statutes of limitation set forth in SB800.” Read the court decision
Read the full story...
Reprinted courtesy of

---

2011 Worst Year Ever for Home Sales

September 09, 2011 — CDJ STAFF

So few new single-family homes have sold in 2011 that expectations are that this will be the worst year for new homes sales since the Commerce Department started tracking this in 1963. The Harford Courant notes that previously builders created a new supply to which was added homes under foreclosure.

Ed Leamer, economist and director of UCLA’s Anderson Forecast, says that recovery would be driven by two sectors, manufacturing and construction. “It doesn’t look like there is going to be a big recovery in manufacturing,” he says. “It is going to have to come in housing.”

The soft housing market, however, is leading to a loss of construction jobs, as reported by the Associated General Contractors of America. As a result, stock prices for the twelve largest publicly-traded home builders have declined 22.7 percent in a market that has declined 4.2 percent overall.

Read the full story…

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

---

Ambiguous Application Questions Preclude Summary Judgment on Rescission Claim

July 19, 2017 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Duarte v. Pacific Specialty Ins. (No. A143828; filed 6/12/17, ord. pub. 6/29/17) a California appeals court held that an insurer was not entitled to summary judgment on its rescission claim because the disputed questions in the insurance application were ambiguous. In Duarte, the insured/owner purchased a tenant-occupied property in Oakland. Several years later the tenant’s daughter moved in, and continued living there after the tenant died. The insured/owner served the daughter with an eviction notice and shortly thereafter applied for Owners, Landlords & Tenants (“OLT”) liability coverage. The tenant/daughter responded to the eviction notice by filing a habitability lawsuit, claiming emotional distress and physical injury, among other things. The insurer denied coverage and a defense, drawing a bad faith lawsuit for failure to defend and “wrongful cancellation” of the policy. The insurer answered and raised rescission as an affirmative defense, based on alleged fraud and misrepresentation in the OLT policy application. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Yet ANOTHER Reason not to Contract without a License

October 25, 2021 — Christopher G. Hill - Construction Law Musings
Remember when I stated that you cannot lawfully perform construction work in Virginia without a contractor’s license? Remember when I said that you risk non-payment if you do so? If you needed another reason, a relatively recent Virginia Court of Appeals decision upholding a criminal conviction for performing construction work without a license should be that reason. In Riddel v. Commonwealth, the Court took up an appeal from the conviction of Jeff Riddel where Mr. Riddel was verbally asked by homeowners to inspect and then repair their septic system. Mr. Riddel then contracted with Fairfax Suburban Septic to pump out and repair the system. Mr. Riddel then delivered the homeowners an invoice from Fairfax Suburban Septic and instructed the homeowners to pay Fairfax Suburban Septic directly. After payment, the homeowners became aware that the work was not completed and that neither Mr. Riddel nor his subcontractor was licensed to perform septic work in Virginia. During the trial, Mr. Riddel argued on a Motion to Strike the Commonwealth’s evidence that (1) he merely arranged for licensed contractors to perform the repairs to the septic system, arguing that Virginia Code §§ 54.2-801 to 802 permitted Riddel to arrange the work without a contractor’s license and (2) no written contract to perform a septic inspection or repairs existed. The Circuit Court denied the motion and Mr. Riddel was convicted under Va. Code 54.1-111 for performing the work without a license. Needless to say, he appealed. 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

---

Appraisal Goes Forward Even Though Insurer Has Yet to Determine Coverage on Additional Claims

December 11, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The trial court's order granting the insured's motion to stay litigation and compel an appraisal was affirmed even though the insurer had not determined coverage on the insured's additional claims.Heritage Prop. & Cas. Ins. Co. v. Wellington Place HOA, 2023 Fla. App. LEXIS 6405 (Fla. Ct. App. Sept. 13, 2023). The insured homeowner's association reported roof damage to its insurer, Heritage, after Hurrican Irma struck. Heritage agreed the damage was covered, but issued no payment because the amount of loss was less than the deductible. The insured hired its own adjuster. The insured requested an extension of the policy's two year time limit to complete repairs because the claim was still in dispute and the insurer had not yet paid sufficient funds to allow necessary repairs. Heritage sent a revised estimate and asked the insured to send its adjuster's estimate in order to address any disputes. The insured submitted its adjuster's estimate of more than $6 million, including, for the first time, the cost to replace all the windows and sliding glass doors. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

Senator Ray Scott Introduced a Bill to Reduce Colorado’s Statute of Repose for Construction Defect Actions to Four Years

January 21, 2015 — David M. McLain – Colorado Construction Litigation
For those of you reading this blog who are familiar with Colorado’s law as it pertains to construction defect actions, which I assume to be anyone reading this blog as it does not seem to get much random traffic, you are probably aware that the statute of repose applicable to construction defect actions in Colorado is generally thought of as being six plus two years. Specifically, C.R.S. § 13-80-104 states, in pertinent part:

(1)(a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.

Read the court decision
Read the full story...
Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

---