Fairfield Connecticut Building Expert Directory

The Utility of Arbitration Agreements in the Construction Industry

December 30, 2019 — Brian L. Gardner & Jason R. Finkelstein - Construction Executive
In today’s ever-evolving world of employment law, it is far from an easy task for construction industry employers to operate their business while successfully navigating all of the potential legal potholes that continue to abound and multiply seemingly with every passing day. This is particularly true in the face of the onslaught of claims lodged by current and former employees in recent years for alleged unpaid wages. While there may not be a “sure bet” way of avoiding such claims, one tool that employers should strongly consider in their arsenal are arbitration and class action waiver agreements. To that end, last year, the United States Supreme Court rendered its ground-breaking decision in Epic Systems Corp. v. Lewis, 584 U.S. ___ (2018). In Epic Systems, the Supreme Court held that arbitration agreements containing class and collective action waivers of wage and hour disputes are enforceable. At the time of the decision, a split of authority existed among courts across the country as to whether such agreements were viable. On the one hand, several courts contended that class waivers unfairly violated employees’ rights to collectively bargain under the National Labor Relations Act. On the other hand, many other courts were finding that such agreements were fully enforceable and supported by the policies promoted under the Federal Arbitration Act. The Epic Systems Court sided with this latter viewpoint, concluding that the FAA’s clear policy promoting arbitration as a dispute resolution mechanism and private parties’ rights to freely negotiate contracts outweighed any potential arguments against such agreements under the NLRA. With wage and hour lawsuits being filed against construction industry employers practically daily, the Epic Systems decision is critically important. Construction employers can now freely enter into arbitration and class waiver agreements with their laborers and thereby potentially limit the cost, expense and exposure of fighting such actions in a public forum on a collective or class-wide basis. To be clear, such agreements will not eliminate employees from bringing such wage and hour claims entirely, nor should the use of those agreements signal to employers that they need not make every good-faith effort to comply with their obligations under the Federal Labor Standards Act and/or any applicable state wage and hour laws. But the reality is that arbitration and class waiver agreements can work to avoid tens or hundreds or even thousands of employees from banding together in some of the massive wage and hour lawsuits being filed across the country. Instead, employers can require that those legal battles be conducted by a single plaintiff in a more controlled environment before an arbitrator (or panel of arbitrators). Reprinted courtesy of Brian L. Gardner & Jason R. Finkelstein, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Gardner may be contacted at bgardner@coleschotz.com Mr. Finkelstein may be contacted at jfinkelstein@coleschotz.com Read the court decision
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Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

June 15, 2011 — Haight Brown & Bonesteel, LLP

On June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.

Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.

A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.

The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.

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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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Suit Against Broker for Securing Inadequate Coverage Dismissed on Statute of Limitations Grounds

April 11, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The insured's suit against his broker for securing a policy with insufficient policy limits was dismissed when filed more than two years after the alleged professional negligence occurred. Pritchard v. Andy Houghton Ins. Agency, 2018 Cal. App. Unpub. LEXIS 1160 (Cal. Ct. App. Feb. 20, 2018). Pritchard requested coverage for replacement of his property in the event of a total loss by fire. He obtained a policy from Houghton. 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

The Cost of Overlooking Jury Fees

February 07, 2022 — Nicholas B. Brummel, Arezoo Jamshidi & Lawrence S. Zucker II - Haight Brown & Bonesteel
On January 21, 2022, the Court of Appeal, Second Appellate District, Division Two (Los Angeles), certified for publication a 2-1 decision that serves as an important reminder to California attorneys to post jury fees in a timely manner and to use appropriate channels and consult with appellate counsel in seeking appellate relief from contested rulings. In TriCoast Builders, Inc. v. Nathaniel Fonnegra, (B303300, Jan. 21, 2022), a construction defect dispute, the trial court set a jury trial at defendant’s request. However, on the day trial was set, defendant waived jury trial. Plaintiff objected and made an oral request for jury trial. The trial court denied the request finding that plaintiff waived its right to a jury trial by failing to timely post jury fees. The matter proceeded to a bench trial, and the court ruled in favor of defendant. Plaintiff appealed, having failed to seek a writ of mandate, which the appellate court noted “is the proper remedy to secure a jury trial allegedly wrongfully withheld.” Reprinted courtesy of Nicholas B. Brummel, Haight Brown & Bonesteel, Arezoo Jamshidi, Haight Brown & Bonesteel and Lawrence S. Zucker II, Haight Brown & Bonesteel Mr. Brummel may be contacted at nbrummel@hbblaw.com Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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Insurer Wrongfully Denies Coverage When Household Member Fails to Submit to EUO

May 06, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court determined that coverage for a loss by fire could not be denied when the insured's son failed to appear for a examination under oath (EUO). Adekola v. Allstate Vehicle & Prop. Ins. Co., 2024 U.S. Dist. LEXIS 27125 (E.D. Pa. Feb. 16, 2024). Plaintiff had a homeowners policy with Allstate. Plaintiff - Michele Adekola - was the named insured under the policy. After the fire, Allstate provided payments for temporary housing. Allstate requested examinations under oath of Plaintiff and her son, Nico. Plaintiff and her son were examined by Zoom. Allstate then sought to examine Plaintiff's other son, Lemmeco, but these efforts were unsuccessful. Allstate then stopped paying for Plaintiff's temporary housing and informed Plaintiff that Lemmeco's failure to participate in an EUO was a material breach of duties under the policy and the breach was prejudicial to Allstate. Allstate further contended that Lemmeco had a duty to submit to an EUO. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Run Spot...Run!

November 18, 2024 — Daniel Lund III - Lexology
"The 'classic' definition of spot zoning is 'the process of singling out a small parcel of land for a use classification totally different from that of the surrounding area for the benefit of the owner of such property and to the detriment of other owners.’ Anderson’s American Law of Zoning, 4th Edition, § 5.12 (1995)” (from plannersweb.com). A wireless carrier rebuffed in Jennings, Louisiana, on an application to rezone residential property to site a monopole cell tower sought relief from the federal court for the Western District of Louisiana. The city lacked any wireless tower provisions in its ordinances, and the carrier asserted that existing “commercial property within the appropriate range” was unavailable. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Judge Tells DOL to Cork its Pistol as New Overtime Rule is Blocked

November 23, 2016 — Evelin Y. Bailey – California Construction Law Blog
Earlier this year we informed you that the federal Department of Labor intended to raise the minimum salary for individuals classified as executive, administrative, and professional (“white collar”) exempt employees. The result? About 4.2 million workers classified as exempt would become eligible for overtime pay on December 1, 2016, the effective date of the new rule. Businesses would need to pay $47,476 starting on December 1, 2016 to maintain the exempt status of workers. However, a combination of business groups and states sued to invalidate the regulation, requesting expedited and emergency injunctive relief. On November 22, 2016, a federal district court in Texas granted the emergency motion for a preliminary injunction barring the DOL from enforcing its new overtime rule. The injunction will remain until the resolution of this legal challenge to the rule. Read the court decision
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Reprinted courtesy of Evelin Y. Bailey, California Construction Law Blog
Ms. Bailey may be contacted at ebailey@wendel.com

Water Intrusion Judged Not Related to Construction

October 09, 2013 — CDJ STAFF
A Wisconsin couple has lost their lawsuit against the city of Stoughton. Jerry and Maxine King claimed that construction of the Stoughton Fire Station lead to flooding of their basement. The city conceded that in 2008, the contractor failed to “have in place some of the measures that could have prevented the water from running onto the King property.” The contractor’s insurance company compensated the Kings. Subsequently, the Kings complained of further water damage. But Matt Dregne, Stoughton’s attorney, said that the Kings “didn’t repair the basement.” The judge in the case dismissed the suit with prejudice, disallowing any further suits from the Kings on these circumstances. Read the court decision
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