Fairfield Connecticut Building Expert Directory

Court of Appeal Opens Pandora’s Box on Definition of “Contractor” for Forum Selection Clauses

October 02, 2015 — David A. Harris & Abigail E. Lighthart – Haight Brown & Bonesteel LLP
In Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc. (“Vita Planning”), the First Appellate District held California’s Code of Civil Procedure section 410.42 (“Section 410.42”) which prohibits an out-of-state contractor from requiring a California subcontractor to litigate disputes in a state other than California, applies not only to traditional “contractors” and “subcontractors” but also to design professionals and architects. In Vita Planning, a dispute arose when HKS, a Texas based architectural firm, refused to pay Vita Planning and Architecture (“Vita”), a landscape design firm, for work on a luxury hotel in Mammoth Lakes, California (“Project”). HKS contended it was not required to pay Vita until it was paid by the owner of the Project, and any claims regarding the work needed to be filed in Texas pursuant to a forum selection clause contained in a Prime Contract between HKS and the Owner. The forum clause was “incorporated by reference” into an unsigned “standard form” agreement between HKS and Vita. Despite the forum clause, Vita filed a Complaint against HKS in Marin County Superior Court. Reprinted courtesy of Abigail E. Lighthart, Haight Brown & Bonesteel LLP and David A. Harris, Haight Brown & Bonesteel LLP Mr. Harris may be contacted at dharris@hbblaw.com Ms. Lighthart may be contacted at alighthart@hbblaw.com Read the court decision
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No Duty to Defend Under Renter's Policy

May 03, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The court agreed that the insurer had no potential liability under a policy where the insured allegedly concealed facts and made misrepresentations regarding the condition of the property it sold. State Farm Fire & Cas. Co. v. TFG Enterprises, LLC, 2021 Neb. LEXIS 27 (Neb. Feb. 19, 2021). TFG sold a house to Jeffrey Barkhurst. Thereafter, Barkhurst filed suit alleging that TFG failed to disclose and actively concealed several defects, including water intrusion, the presence of mold, substandard repairs and structural issues. State Farm agreed to TFG defend under a reservation of rights. State Farm then filed a declaratory judgment action to determine its obligations under the policy. State Farm relied upon various exclusions in the rental policy issued to TFG. The exclusions provided there would be no liability coverage for "property damage to property owned by an insured"; "property damage to property rented to, occupied or used by or in the care of the insured"; or "property damage to premises the insured sells. . . if the property damage arises out of these premises." 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

Construction Continues To Boom Across The South

September 09, 2019 — Louise Poirier - Engineering News-Record
Contractors reported revenue growth of $2 billion in 2018 and are optimistic heading into the second half of 2019. The looming threat of a downturn, though, weighs heavy on some industry leaders’ minds as does the constant threat of workforce shortages. Reprinted courtesy of Louise Poirier, Engineering News-Record Ms. Poirier may be contacted at poirierl@enr.com Read the court decision
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Michigan Lawmakers Pass $4.7B Infrastructure Spending Bill

April 11, 2022 — James Leggate - Engineering News-Record
Michigan lawmakers have passed legislation appropriating $4.7 billion for state infrastructure, including more than $1 billion for various water projects.About $750 million will go toward drinking water infrastructure such as projects to replace lead service lines or remove contaminants like PFA substances, potentially harmful chemicals used in industrial and consumer products that are have been found in water. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Federal Court Opinion Has Huge Impact on the Construction Industry

July 06, 2020 — Wally Zimolong - Supplemental Conditions
The United States District Court for the Eastern District of Pennsylvania in Philadelphia recently issued an opinion that should get the attention of any contractor or subcontractor performing work on a federal funded construction project. In U.S. ex rel IBEW Local 98 v. The Fairfield Company, the federal court held that a contractor on a SEPTA project could be held liable under the False Claims Act for failing to pay its workers under the Davis Bacon Act. The court found that liability was appropriate under the FCA even through the contractor did not knowingly violate the Davis Bacon Act. The court awarded the plaintiff over $1,000,000 in damages and an additional over $1,000,000 in attorneys fees. An Extremely Brief Primer on the FCA A full discussion of the FCA is beyond the realm of this blog post and you could write a book on FCA cases. But in a nutshell, the FCA prohibits a contractor from knowingly submitting a claim for payment to the federal government (or an entity receiving funding from the federal government, like SEPTA) that is false. Importantly, knowingly does not equal actual knowledge of the falsity of the claim. Rather, “reckless disregard of the truth or falsity” of the submission is sufficient. As explained below, this standard played an important role in the court’s decision and should give contractors performing work on federally funded projects pause. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

PA Superior Court Provides Clarification on Definition of CGL “Occurrence” When Property Damage Is Caused by Faulty Building Conditions

September 30, 2019 — Anthony L. Miscioscia & Konrad R. Krebs - White and Williams LLP
The standard for an “occurrence” under a commercial general liability (CGL) insurance policy has been addressed on several occasions by Pennsylvania courts when an insured has allegedly performed faulty workmanship on a construction project. Specifically, in Pennsylvania, a claim for damages arising from an insured’s performance of faulty workmanship pursuant to a construction contract, where the only damage is to property supplied by the insured or worked on by the insured, does not constitute an “occurrence” under the standard commercial general liability insurance policy definition. But what about the circumstance when the insured has failed to perform contractual duties where the claim is for property damage to property not supplied by the insured or unrelated to the service the insured contracted to provide? The Pennsylvania Superior Court recently addressed this question in Pennsylvania Manufacturers Indemnity Co. v. Pottstown Industrial Complex LP, No. 3489 EDA 2018, 2019 Pa. Super. 223, 2019 Pa. Super. LEXIS 729* (Pa. Super. 2019). Pottstown Industrial Complex arose out of an underlying dispute between a landlord and a commercial tenant who had leased space to store its product inventory. The tenant alleged that the landlord was responsible under the lease for keeping the roof “in serviceable condition in repair.” Notwithstanding this responsibility, the tenant alleged that the landlord failed to properly maintain and repair the roof, resulting in leaks and flooding during four separate rainstorms, destroying over $700,000 in inventory. The tenant specifically alleged that the floods were caused by poor caulking of the roof, gaps and separations in the roofing membrane, undersized drain openings, and accumulated debris and clogged drains. The insurer filed a declaratory judgment action, seeking a determination that there was no coverage under a commercial general liability policy issued to the landlord. Following a motion for judgment on the pleadings, the trial court entered an order in favor of the insurer, holding that allegations of inadequate roof repairs were claims for faulty workmanship and were not covered under Kvaerner Metals Division of Kvaerner U.S., Inc. v. Commercial Union Insurance Co., 908 A.2d 888 (Pa. 2006) and Millers Capital Insurance Co. v. Gambone Brothers Development Co., 941 A.2d 706 (Pa. Super. 2007). Reprinted courtesy of Anthony Miscioscia, White and Williams LLP and Konrad Krebs, White and Williams LLP Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Mr. Krebs may be contacted at krebsk@whiteandwilliams.com Read the court decision
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Judge Nixes SC's $100M Claim Over MOX Construction Delays

February 16, 2017 — Engineering News-Record
A federal judge on Feb. 8 dismissed a claim by the state of South Carolina against the U.S. Dept. of Energy over delayed construction of the Mixed-Oxide Fuel Fabrication Facility, near Aiken, S.C. The claim for financial compensation was part of a lawsuit the state filed in February 2016 seeking payment of $1 million per day—or an annual maximum of $100 million—for the MOX facility not producing fuel by Jan. 1, 2016. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

Contractual Warranty Agreements May Preclude Future Tort Recovery

January 11, 2022 — Taylor Ostrowski - Colorado Construction Litigation Blog
When a buyer purchases a product that is later discovered to be defective, the court offers a remedy to make the buyer whole. Such remedies can arise either out of a contract, including express and/or implied warranties, or under common law through a tort theory. However, what happens when a buyer has already received the remedy specified in the contractual warranty, only to discover the product manufacturer misrepresented the quality of its product by failing to disclose a defect? Can the buyer subsequently recover for the same product under a tort theory of recovery? The Colorado Court of Appeals analyzed such questions in its December 2021 decision in Dream Finders Homes, LLC v. Weyerhaeuser NR Co., 2021 COA 143. In Dream Finders, the court examines the rights of sophisticated buyers who purchased defective products and received a warranty from the product manufacturer with purchase. The court specifically determines whether such buyers may recover under the tort theory product misrepresentation and failure to disclose when the buyers have already received the remedy specified and the warranty expressly excludes the type of damage the buyer now seeks. Read the court decision
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Reprinted courtesy of Taylor Ostrowski, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ostrowski may be contacted at ostrowski@hhmrlaw.com

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