Fairfield Connecticut Building Expert Directory

Design-Build Contracting: Is the Shine Off the Apple?

March 09, 2020 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
The design-build delivery method offers many benefits to owners. Among the cited benefits are that projects are generally completed faster, at a lower cost, by allowing innovative approaches through early and continual contractor involvement in the design process. The design contractor serves as a single point of contact responsible for both the design and construction of the project. The Washington State Department of Transportation (“WSDOT”) utilized the design-build procurement method on the largest project ($2 billion) of its type in the state of Washington: the Highway 99 Tunnel, which was finished almost three years late after the tunnel-boring machine (“Bertha”) broke down six years ago. The sorted tale of the SR-99 Tunnel Project was the source of many of this firm’s blog articles.[1] The State of Washington staunchly maintained that the design-build contract protected its taxpayers from covering the repair costs to the tunnel-boring machine when it broke down in 2013. Bertha did not resume tunneling for almost two years, putting on hold removal of the Alaska Way viaduct and rebuilding of the Seattle Waterfront without an elevated highway. In December 2013, the contractor for the project, Seattle Tunnel Partners (“STP”), contended that a 110-foot long 8” steel pipe which Bertha hit caused the breakdown. That pipe had been installed for groundwater testing by WSDOT in 2002 during its preliminary engineering for the viaduct replacement project. The project’s Dispute Review Board (“DRB”) composed of three tunneling experts found that the pipe constituted a “differing site condition” for which the State was responsible to disclose to contractors. The Board, whose views were non-binding, did not opine about how much damage the undisclosed pipe cost.[2] In other words, the mere fact that a differing site condition occurred did not establish that there was a causal connection between the damages which STP was seeking (in excess of $600 million) and the differing site condition (the 8” steel pipe which WSDOT lawyers at trial derisively referred to as “nothing more than a toothpick for Bertha’s massive cutter head”). STP maintained that Bertha had made steady progress except for three days immediately after hitting the pipe. It didn’t help the contractors’ case that during the discovery phase of the two-month trial, WSDOT lawyers uncovered documents showing that the contractor’s tunnel workers encountered and logged the pipe before digging began.[3] Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Energy Company Covered for Business Interruption Losses Caused by Fire and Resulting in Town-Ordered Shutdown

February 15, 2021 — David G. Jordan - Saxe Doernberger & Vita, P.C.
In the case of NextSun Energy Littleton, LLC v. Acadia Ins. Co., the United States District Court of Massachusetts held that once direct physical damage from a covered peril causes a covered business interruption loss, any increase in the duration of such business interruption, due to the enforcement of an ordinance or law, extends the coverage period provided for lost income. The Court further held that a policy exclusion for business interruption due to the enforcement of any ordinance or law not in force at the time of the loss only applies when the ordinance or law itself, not the enforcement action that it authorizes, was not in force at the time of the loss. The case involved a solar panel company, NextSun Energy Littleton (NextSun), that operated solar panel arrays providing electricity to the town of Littleton, Massachusetts. Due to a fire, 88 of the solar panels were damaged, and the Town immediately issued a “red-tag” order halting all energy-generating activity pending a safety inspection. The plaintiff purchased insurance for its panels along with “Energy Generating Income” (EGI) coverage, from the defendant, Acadia Ins. Co. (Acadia). The EGI policy covered “direct physical loss or damage” to “renewable energy generating equipment” and also covered the actual loss of surplus power income incurred during the interruption period. However, it excluded interruption of energy-generating income “caused by the enforcement of any ordinance, law, or decree … not in force at the time of loss.” Read the court decision
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Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita
Mr. Jordan may be contacted at DJordan@sdvlaw.com

Owner’s Slander of Title Claim Against Contractor Recording Four Separate Mechanics Liens Fails Under the Anti-SLAPP Statute

February 01, 2021 — Garret Murai - California Construction Law Blog
Most mechanics lien actions follow a pretty standard process:

A mechanics lien claimant, either a contractor subcontractor, material supplier, or laborer, performs work but is not paid;
Mechanics lien claimant records a mechanics lien on the property in which work was performed; and
Within 90 days thereafter files suit to foreclose on the mechanics lien.

Sometimes, either before or after a mechanics lien claimant files suit, the owner will record a mechanics lien release bond, in which case mechanics lien claimant files suit against the release bond. But what if a mechanics lien claimant records a mechanics lien, the owner records a mechanics lien release bond, and the mechanics lien claimant records three different but identical mechanics liens thereafter? Is this even legal? Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Options When there is a Construction Lien on Your Property

June 02, 2016 — David Adelstein – Florida Construction Legal Updates
There is a construction lien on my property. What are my best options? I hear this question quite a bit…so here it goes… (1) Do nothing. That’s right – do nothing. If you are not looking to sell your house or refinance in the next year or so, you can do nothing and see whether the lienor files a construction lien foreclosure lawsuit. The lienor has one year from the recording of the lien to file the lawsuit. (2) Record a Notice of Contest of Lien. The Notice of Contest of Lien shortens the lienor’s statue of limitations to foreclose on the lien from one year to 60 days. If the lienor fails to foreclose on the lien within 60 days, the lien is extinguished by operation of law. This is the route I tend to prefer. If the lienor is going to file a lien foreclosure lawsuit, I tend to think it is better forcing the issue on the front end as opposed to waiting a year. But every situation is different. Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Big Policyholder Win in Michigan

January 05, 2017 — Jeremiah M. Welch – Saxe Doernberger & Vita, P.C.
Jeremiah Welch and Michael Barrese recently had a big win in front of the Michigan Court of Appeals. The case (Skanska-Schweitzer v. Farm Bureau General Insurance Company of Michigan) involved Skanska’s claim for defense and indemnity from Farm Bureau Ins. Co. of Michigan for an injury to an elementary school student arising out of the removal of playground equipment by a landscaping company, Horrocks. Farm Bureau denied coverage because it claimed that the work was not part of Horrocks’ contract with the project owner and therefore Skanska, the construction manager, did not qualify as an additional insured on the policy. SDV argued that the AI endorsement did not specify that Horrocks’ work be performed as part of its contract with the owner; it only required that the work be performed “for Skanska.” Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita, P.C.
Mr. Welch may be contacted at jmw@sdvlaw.com

No Bad Faith In Filing Interpleader

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Eighth Circuit determined that filing an interpleader action in the face of multiple claims against the policy holder did not constitute bad faith. Purscell v. Tico Ins. Co., 2015 U.S. App. LEXIS 10438 (8th Cir. June 22, 2015). Ben Purscell's vehicle collided with another vehicle, in which Tim and Amy Carr were riding. The Carrs were injured, and Purscell's passenger, Amy Priesendorf, was killed. Before the accident, Priesendorf had stretched her leg over and put her foot on the accelerator, on top of Purscell's foot. As the other car approached, Purscell swerved to avoid an accident, but the two vehicles collided. Purscell had a policy with Infinity Assurance Insurance Company. The policy limited liability to $25,000 per person and $50,000 per accident for bodily injury. Infinity put the full $50,000 per accident limits on reserve, with $25,000 designated to Priesendorf's fatality and $25,000 designated to the Carrs. 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 Simple Reason Millennials Aren't Moving Out Of Their Parents' Homes: They're Crushed By Debt

February 26, 2015 — Nina Glinski – Bloomberg
Millennials are not budging from their parents' basements, even though the job market is on the mend. One really big reason? Student loans. Last year, the rate of 25- to 34-year-olds living at home rose to 17.7 percent among men and 11.7 percent for women, Census data showed last week. That is a record high for both genders. Rising co-residence rates are correlated more closely with student debt than with factors like economic conditions and the housing market, according to a staff report in November from the Federal Reserve Bank of New York. The regional bank wrote about the trend today in its blog called "Liberty Street Economics." Read the court decision
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Reprinted courtesy of Nina Glinski, Bloomberg

More Reminders that the Specific Contract Terms Matter

January 24, 2022 — Christopher G. Hill - Construction Law Musings
If there is a theme I have pounded upon here at Construction Law Musings in the over 13 years of posting, it is that the specific terms of your construction contracts will make a huge difference. While there have been reminders galore, a case from the Eastern District of Virginia presented another wrinkle on this theme. The wrinkle? A factoring company. In CJM Financial, Inc. v. Leebcor Services, LLC et. al., the Court examined this scenario (though it went into more detail than I will here): Leebcorp hired a subcontractor, Maston Creek Services to provide certain construction services under two separate contracts. Maston then hired CJM, a factoring company, and assigned CJM its receivables and the right to collect those receivables. We wouldn’t be discussing this case if all had worked out as planned, so you likely anticipate at least some of what came next. The short story is that Matson failed to pay some of its suppliers and Leebcorp exercised its termination rights under those contracts when Matson refused to cure. In the interim, CJM had paid part of certain payment applications to Matson in compliance with the factoring agreement. When Leebcorp failed to pay CJM for Matson’s work, CJM exercised its assigned rights to collect the receivables and sued Leebcorp for breach of contract. In response, Leebcorp counterclaimed for, among other counts including civil conspiracy, breach of contract based on Matson’s failure to perform. CJM moved to dismiss the counterclaims. 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

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