FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Residential Construction: Shrinking Now, Growing Later?

August 17, 2011 — CDJ STAFF

Jim Haugey, the Chief Economist for Reed Construction Data noted that new residential construction spending fell 0.2% in June and a slightly larger drop of 0.5% in residential remodeling. While economic growth is still low, Haugey states that homebuilders have “record low inventories.” He forecasts a shrinkage of 1.5% in 2011, followed by about 20% growth in 2012.

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Language California Construction Direct Contractors Must Add to Subcontracts Beginning on January 1, 2022, Per Senate Bill 727

December 20, 2021 — William L. Porter - Porter Law Group
Senate Bill No. 727, Imposing Liability on Contractors for Wage Claims of Subcontractor Employees: California Senate Bill 727 was approved by the Governor on September 27, 2021. The new Act amended Labor Code Section 218.7 and added a new section 218.8 to the Labor Code. Both Labor Code sections impose on “direct contractors” in the construction industry (defined by Civil Code 8018 as “a contractor that has a direct contractual relationship with an owner”) liability for the wage violations of their subcontractors and sub-subcontractors at any tier when working on California private construction projects. Specifically, new Section 218.8 expands the liability of direct contractors for wage claims of the employees of subordinate subcontractors on projects for contracts executed beginning on January 1, 2022. The liability of the direct contractor under Labor Code 218.8 will include “any debt owed to a wage claimant or third party on the wage claimant’s behalf, incurred by a subcontractor at any tier acting under, by, or for the direct contractor.” Specifically included as listed liabilities of the direct contractor are: “any unpaid wage, fringe or other benefit payment or contribution, penalties or liquidated damages, and interest owed by the subcontractor on account of the performance of the labor.” Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Bill Introduced to give Colorado Shortest Statute of Repose in U.S.

January 21, 2015 — Jesse Howard Witt – Acerbic Witt
Yesterday, State Senator Ray Scott (R-Mesa County) introduced a bill to shorten Colorado’s already short statute of repose. If this bill passes, it will severely undermine the rights of Colorado homeowners. Colorado already has one of the shortest construction defect statutes of repose in the United States. If a homeowner does not discover a defect within six years of a house’s completion, the homeowner may forfeit all legal rights to seek repairs. Senator Ray’s bill would cut this time in half and could preclude homeowners from obtaining any relief three years after a home is built. No other state in America has such a severe limit on homeowner rights. Read the court decision
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Reprinted courtesy of Jesse Howard Witt, The Witt Law Firm
Mr. Witt welcomes comments at www.wittlawfirm.net

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Understand and Define Key Substantive Contract Provisions

March 23, 2020 — Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive
The following contract provisions should be clearly understood before undertaking any construction project commences. Force Majeure Often referred to as an “Act of God,” a force majeure is an event, typically beyond the parties’ control, that prevents performance under a contract. To determine if a contractor need a force majeure clause in its contract, it should ask whether there may be instances where events beyond the contractor’s control could impact its contractual performance? If so, it will want this clause. Courts currently treat force majeure as an issue of contractual interpretation, focusing on the express language in the contract. Consequently, the scope and applicability of a force majeure clause depends on the contract’s terms. Using broad language in a force majeure clause may help protect against unforeseen events. But to the extent possible, parties should describe with particularity the circumstances intended to constitute a force majeure. The law relating to force majeure also fairly consistently provides that parties cannot avoid contractual obligations because performance has become economically burdensome. Courts have refused to apply force majeure clauses where an event only affects profitability. Recent attempts to categorize tariffs on construction materials as a force majeure have failed. Unless a tariff or tax is specifically listed as a force majeure event, it is unlikely to constitute a force majeure because it only affects profitability. Reprinted courtesy of Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Gen Xers Choose to Rent rather than Buy

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
David Crowe reported in Big Builder that the rate of home purchases by Gen Xers is low due to “challenges” they face caused by the recent recession. According to the article, “The headship rate rises from 16 percent to 48 percent in this age group—known as Generation X—as they finish college and become financially independent. There are 42.5 million people in this age range, and they are followed by 43.9 million in the 15 to 24 age cohort.” However, the recession forced many Gen Xers to postpone “independent living, marriage, and children. Birth rates hit all-time lows in 2012 (half the level of the baby boom), and marriage rates are the lowest they’ve been in a century.” Unemployment seems to be the major factor in why many Gen Xers are choosing to live with parents or rent instead of buying a home. Crowe stated, “Young adults continue to express the goal of owning their own homes, but many are faced with challenges such as job availability, tight credit standards, inadequate savings for a down payment, student debt, and careers that are likely to require moves.” However, the “employment picture is expected to improve.” Read the court decision
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Traub Lieberman Partner Lisa Rolle Obtains Summary Judgment in Favor of Defendant

November 15, 2022 — Lisa M. Rolle - Traub Lieberman
Traub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms. Read the court decision
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Reprinted courtesy of Lisa M. Rolle, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com

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California Rejects Judgments By Confession Pursuant to Civil Code Section 1132

May 08, 2023 — Drew M. Jorgenson & Louis "Dutch" Schotemeyer - Newmeyer Dillion
The Elimination of Judgment by Confession Following in the footsteps of Massachusetts and Florida, California recently updated California Code of Civil Procedure section 1132 which renders judgments by confession unenforceable and inadmissible in any superior court, effective January 1, 2023. The bar is not retroactive, so judgments by confession obtained or entered before January 1, 2023 are still valid. Moving forward, consider the following. What is a Judgment By Confession? A judgment by confession, also known as a confession of judgment or "cognovit" clause, is a mechanism by which a debtor agrees that a creditor may summarily obtain a legal judgment against that debtor and enforce it in the event of the debtor's breach of contract or default. In other words, it is a private admission by a debtor that they are liable for a debt without the need for a trial, and consequently, agree to forfeit very important rights. Most importantly, parties agreeing to such clauses are waiving rights such as the right to notice of the judgment and the right to assert defenses against the creditor or third party's claims. Historically, without any judicial involvement, these types of out-of-court judgments would be enforceable. Reprinted courtesy of Drew M. Jorgenson, Newmeyer Dillion and Louis "Dutch" Schotemeyer, Newmeyer Dillion Mr. Jorgenson may be contacted at drew.jorgenson@ndlf.com Mr. Schotemeyer may be contacted at dutch.schotemeyer@ndlf.com Read the court decision
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Recovering Attorney’s Fees and Treble Damages in Washington DC Condominium Construction Defect Cases

April 03, 2023 — Nicholas D. Cowie - Cowie Law Group
DC Condominium Association’s Can Recover Attorney’s Fees, Litigation Costs and Treble Damages in Construction Defect Cases Involving Misrepresentation The District of Columbia Consumer Protection Procedures Act (“CPPA”) § 28-3905(k)(1)(A) creates a private legal claim (a/k/a “cause of action”) which can be asserted by a condominium unit owners association (“condominium association”) on behalf of two or more of its unit owner members who are misled by a condominium developer regarding the condition or quality of a newly constructed or newly converted condominium. Under the DC CPPA, a successful claimant is entitled to recover “treble damages” (i.e., three times the amount of damages it proves), plus recovery of “reasonable attorney’s fees” incurred in prosecuting the construction defect claim and “[a]ny other relief the court determines proper,” including non-attorney fee litigation expenses. DC CPPA § 28-3905(k)(2)(A), (B) and (F). The CPPA Creates the Legal Claim that Allows a Condominium Associations to Recover Attorney’s Fees, Litigation Costs and Treble Damages The DC CPPA is a consumer-oriented statute designed to protect Washington DC consumers misled in connection with the purchase of consumer “real estate,” including transactions involving the purchase of a condominium unit and interest in the condominium common elements. Typically, these cases involve the sale of a newly constructed or newly converted condominium, which, contrary to developer representations, contains latent construction defects. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie Law Group
Mr. Cowie may be contacted at ndc@cowielawgroup.com

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