Fairfield Connecticut Building Expert Directory

Terminating Contracts for Convenience — “Just Because”

June 28, 2021 — David Adelstein - Florida Construction Legal Updates
Termination for convenience provisions are important provisions to include in construction contracts. These are provisions that allow a party to terminate the contract for ANY REASON. No cause is needed to exercise the termination for convenience provision. In other words, the terminating party does not have to demonstrate the other party breached the contract. A termination for convenience can be exercised “just because.” Typically, the party providing the service should not get to terminate for convenience. However, the party receiving the service will want to be afforded this contractual right. For example, an owner (receiving a service) will want to include a termination for convenience provision with its prime contractor (providing a service). And, a general contractor (receiving a service) will want to include a termination for convenience provision in its subcontract with its subcontractor (providing a service). However, a general contractor providing a service for an owner, or a subcontractor providing a service to a general contractor, should not be able to terminate the contract for their convenience “just because” a better opportunity comes along. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Cyber Thieves Phish Away a $735K Payment to a Minnesota Contractor

May 06, 2024 — Richard Korman - Engineering News-Record
The contractor's project manager asked for money due, $735,000 under Payment Application 13, to be sent by the owner electronically. "Hi Rick," the project manager, whose first name is Jalen, wrote in an email dated Aug. 15. "Can we have payments remitted electronically as we currently have numerous uncleared checks on hold?" Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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Kushner Cos. Probed Over Harassment of Low-Income Tenants

July 21, 2018 — Erik Larson - Bloomberg
Kushner Cos. is being investigated in New York over allegations the real-estate company used disruptive construction projects to harass rent-regulated tenants so they’d move out of their apartments. New York Governor Andrew Cuomo’s Tenant Protection Unit opened the probe after residents of Austin Nichols House in Brooklyn accused Kushner Cos. in a lawsuit of doing work "that released dangerous toxins into the air and created unlivable conditions for tenants, including vermin and excessive construction noise," the state said Monday in a statement. Read the court decision
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Reprinted courtesy of Erik Larson, Bloomberg

Sixth Circuit Affirms Liability Insurer's Broad Duty to Defend and Binds Insurer to Judgment Against Landlord

September 07, 2020 — Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & Vita
In a victory for policyholders, the Sixth Circuit affirmed that a landlord’s insurer owed a duty to defend the landlord in a bodily injury claim arising out of a fire that killed three and injured one. The Court held that the insurer breached its duty to defend and was bound to the insured’s $3 million consented judgment. Transition Investments LLC, an owner of three properties in the Detroit area, purchased a general liability insurance policy with Hamilton Specialty Insurance Company to insure its properties. At one of the properties, a faulty stove started a fire, destroying the building, injuring one person and killing three others. The estates of the deceased and the injured party sued Transition in Michigan state court. In their complaint, the plaintiffs contended that Transition failed to provide a habitable premise and neglected to maintain the property’s stove, which allegedly caused the fire. The plaintiffs argued that Transition’s negligent maintenance of the property led to the fire and the resulting injuries. Transition subsequently tendered the claim to Hamilton. Hamilton claimed that the insurance policy did not cover the fire’s damages and refused to participate in the state court litigation. Ultimately, Transitions entered into a consent judgment with the plaintiffs for $3 million. Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita and Janie Reilly Eddy, Saxe Doernberger & Vita Mr. Pepe may be contacted at mvp@sdvlaw.com Ms. Eddy may be contacted at jre@sdvlaw.com Read the court decision
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Falling Crime Rates Make Dangerous Neighborhoods Safe for Bidding Wars

March 19, 2015 — Heather Perlberg, Prashant Gopal and John Gittelsohn – Bloomberg
(Bloomberg) -- LaTasha Gunnels was outbid four times before she snagged a home in Anacostia, the southeast Washington, D.C. neighborhood that comes with a discount because of its reputation for drugs and crime. The 35-year-old nurse said the area, in a section of the city across a river from Capitol Hill known for its historically high murder rates, is changing rapidly. Buyers like Gunnels, priced out of costlier spots, helped lift values 21 percent in the Anacostia area in 2014, the biggest surge of any D.C. neighborhood, according to data provider Real Estate Business Intelligence. “I’m not going to sugarcoat it -- crime is still there -- but police officers are on every single corner and nobody has bothered me yet,” Gunnels said. “What I’m paying for my mortgage, people are paying for one-bedroom apartments in other parts of D.C.” Reprinted courtesy of Bloomberg reportersHeather Perlberg, Prashant Gopal, and John Gittelsohn Ms. Perlberg may be contacted at hperlberg@bloomberg.net Mr. Gopal may be contacted at pgopal2@bloomberg.net Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Homebuilders Call for Housing Tax Incentives

May 10, 2013 — CDJ STAFF
The National Association of Home Builders has asked Congress to support tax incentives for home buyers and renters, including the Low Income Housing Tax Credit and the mortgage interest deduction. Robert Dietz, an economist at the NAHB, noted that in 2009, 35 million home owners were able to claim the mortgage deduction. Dietz responded to arguments that the deduction simply lead to people buying bigger homes by saying that “the need for a larger home created the higher loan deduction, not the other way around.” The NAHB notes that one hundred new single-family homes creates more than 300 jobs and generates substantial tax revenues. “Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers” said Dietz. Read the court decision
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Final Rule Regarding Project Labor Agreement Requirements for Large-Scale Federal Construction Projects

January 29, 2024 — Aaron C. Schlesinger & Julia Loudenburg - Peckar & Abramson, P.C.
Beginning on January 22, 2024, in compliance with President Biden’s February 4, 2022 Executive Order, 14603, federal construction projects with a total estimated cost of $35 million are required to utilize a project labor agreement (“PLA”) unless the contracting agency grants an exception. The Federal Register estimates that this rule will impact approximately 119 IDIQ contracts each year; these contracts have an average award value of about $114 million. The White House claims the PLAs will improve projects by:

Eliminating project delays from labor unrest, such as strikes;
Creating dispute resolution procedures and cooperation for labor-management disputes, such as those over safety;
Including provisions “to support workers from underserved communities and small businesses”;
Helping to create a steady pipeline of workers for federal projects; and
Promoting competition on government contracts so that all builders, even those who are non-union, can bid on jobs that require a PLA.

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Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com

Not so Fast! How Does Revoking Acceleration of a Note Impact the Statute of Limitations?

July 30, 2018 — Ben Reeves - Snell & Wilmer Real Estate Litigation Blog
Introduction Lenders routinely accelerate notes after a default occurs, calling the entire loan due immediately. Less regularly, a lender may change its mind and unilaterally revoke the acceleration. Rarely, however, does a lender fail to foreclose on its real property collateral before the statute of limitations expires. In Andra R. Miller Designs, LLC v. U.S. Bank, N.A., 244 Ariz. 265, 418 P.3d 1038 (Ct. App. 2018), a unique set of facts involving these issues led the Arizona Court of Appeals to hold that proper revocation of acceleration resets the statute of limitations. The Facts In Miller, a lender made a $1,940,000 loan evidenced by a promissory note and secured by a deed of trust against a home in Paradise Valley, Arizona. The borrower defaulted in September 2008. The default prompted the lender to notice a default, accelerate the note, and initiate a trustee’s sale of the home in 2009. After the lender accelerated the note, the six year statute of limitations began to run. See A.R.S. § 12-548(A)(1) and A.R.S. § 33-816. Pretty standard facts so far, right? Don’t worry, it gets a bit more convoluted. Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com

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