Fairfield Connecticut Building Expert Directory

Construction Law Alert: A Specialty License May Not Be Required If Work Covered By Another License

March 07, 2011 — Steven M. Cvitanovic

Contractors should always be sure that they understand the licensing in any Subcontract or Prime Contract before entering into any agreement. However, on March 3, 2011, in the case of Pacific Casson & Shoring, Inc. v. Bernards Bros., Inc. 2011 Cal.App.Lexis 236, the Court of Appeal determined that if a specialty license is subsumed within another license, the specialty license may not be required.

Bernards entered into a subcontract with Pacific to excavate, backfill, grade and provide geotechnical design parameters for a hospital. The Prime Contract required the bidder to maintain a Class C-12 specialty earthwork license. However, Pacific only held a Class A general engineering license which it turns out was suspended during the performance of the work. Pacific sued Bernards for nonpayment of $544,567, but the lawsuit was dismissed because the trial court found that Pacific (1) lacked a C-12 license, and (2) Pacific’s Class A license was suspended for failure to pay an unrelated judgment. Pacific was also ordered to disgorge $206,437 in prior payments.

The Court of Appeal reversed and remanded. The Court of Appeal agreed with Pacific and held that a C-12 specialty license was not required despite the Prime Contract. The Court of Appeal found that the C-12 specialty license would have been “superfluous” since it was fully encompassed within the Class A requirements. However, the Court of Appeal also remanded the case for further

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

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Insurers' Motion to Knock Out Bad Faith, Negligent Misrepresentation Claims in Construction Defect Case Denied

August 27, 2013 — Tred Eyerly - Insurance Law Hawaii
Having previously decided that construction defect claims did not arise from an occurrence and were consequently not covered under Hawaii law, the Hawaii Federal District Court refused to dismiss the insured's second amended counterclaim alleging various claims for relief. Ill. Nat'l Ins. Co. v. Nordic PCL Construc., Inc., 2013 U.S. Dist. LEXIS 108932 (D. Haw. July 31, 2013). In earlier proceedings, the court determined that the Nordic's allegedly deficient performance on construction contracts was not an "occurrence." The court also rejected Nordic's argument that the Hawaii legislature's Act 83 required the court to deviate from the Ninth Circuit's opinion in Burlington Ins. Co. v. Oceanic Design & Constr., Inc., 383 F.3d 940 (9th Cir. 2004) or the Hawaii Intermediate Court of Appeals' decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010). Admiral now moved for summary judgment on its complaint and for dismissal of Nordic's second amended counterclaim, alleging bad faith and negligent misrepresentation, among other counts. Summary judgment as to the Safeway claim was denied. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

This Is the Most Remote and Magical Hotel on Earth

May 12, 2016 — Sarah Hepola – Bloomberg
There are no signs leading to the Fogo Island Inn. That’s how hard it is to miss the place. Designed by architect Todd Saunders, who grew up in nearby Gander, the building takes its inspiration from the fishing shacks that dot the shoreline, sagging on old wooden stilts, but it was also made with the dimensions of a cruising vessel. Three hundred feet long by 30 feet wide. Like a ship that’s just sailed into harbor. For decades, the flow of traffic in this community off the Newfoundland coast had moved in one direction: away. Fewer than 2,500 people live on an island four times the size of Manhattan. But the inn, the brainchild of Fogo Island native and tech millionaire Zita Cobb, reversed that trend when it was completed in 2013. Strangers now come from around the world to see the island, whose unspoiled landscape makes it a coveted spot for the under-the-radar traveler. Read the court decision
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Reprinted courtesy of Sarah Hepola, Bloomberg

Address 'Your Work' Exposure Within CPrL Policies With Faulty Workmanship Coverage

December 29, 2020 — Joseph Reynolds - Construction Executive
New faulty workmanship coverage forms have emerged to potentially address the “your work” exposure found in most contractors professional liability (CPrL) policies. Once offered by only a single carrier, several insurers have recently entered the marketplace to cover the cost to repair or replace faulty work or the related material costs associated with the “self-performed work” of general and trade contractors. Commonly serving as a separate insuring agreement and offered in carrier-specific CPrL policies, faulty workmanship coverage forms are designed to protect contractors from the “your work” claims triggered by project owners and other third parties. This includes the contractor’s workmanship as well as the equipment, parts and materials such as steel beams, epoxy activators and anchor bolts used to perform construction work. Insureds should be aware that exclusions and strict conditions apply. For instance, faulty workmanship policies typically do not cover resulting bodily injury and property damage and some policies even exclude project delays and other business risks that can arise from the claims of unhappy customers. Another potentially confusing issue is the scope of coverage offered under a ‘faulty work’ endorsement. While some faulty workmanship enhancements are specifically-designed to cover “your work,” claims, others may only cover the products manufactured or fabricated by the insured and not the work they perform or install. Reprinted courtesy of Joseph Reynolds, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Reynolds may be contacted at joseph.reynolds@rtspecialty.com

Stay of Coverage Case Appropriate While Court Determines Arbitrability of Dispute

April 22, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit vacated a discovery order issued by the district court and remanded the case for issuance of a stay while the arbitrability of the coverage dispute was reviewed. Cameron Parish Recreation #6 v. Indian Harbor Ins. Co., et al., 2024 U.S. App. LEXIS 3804 (5th Cir. Feb. 19, 2024). The plaintiffs purchased surplus lines polices from various insurance companies to provide coverage for commercial properties. The policies included an arbitration provision for resolving any disputes. After plaintiffs were denied coverage for damage to their properties from Hurricane Laura, they sued the insurers. The insurers filed motions to compel arbitration and to stay the case. The district court refused the stay and ordered limited discovery into arbitrability. The insurers appealed. 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

Real Estate & Construction News Round-Up (11/03/21)

December 06, 2021 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Amenity-rich buildings become a key focus in enticing employees back into the office, supply chain links are strained by a lack of storage capacity in warehouses and port areas, green lease signings are on the uptick, and more.

In an effort to draw employees back into the office and retain talent in a tight labor market, businesses are spending more than ever on upscale workspaces, paying high rents for modern, amenity-rich buildings. (Peter Grant, The Wall Street Journal)
As sustainability and ESG factors become increasingly important, net-zero carbon commitments are emerging as the next big “must-have” for commercial real estate owners, as more than 100 businesses and organizations have signed on to the World Green Building Council’s Net Zero Carbon Buildings Commitment, which seeks to decarbonize the buildings sector by 2050 and get halfway there by 2030. (Elsa Wenzel, GreenBiz)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Major Changes in Commercial Construction Since 2009

December 11, 2013 — CDJ STAFF
A new report from Jones Lang LaSalle tracks some of the changes that the commercial building industry has seen since 2009. One important change is that financing has returned. In reviewing the report, Buildings.com notes that “commercial lending conditions are improving.” A less positive change is that construction costs have gone up, with the increase in residential construction pushing prices up in commercial construction. Green construction has gone from a luxury to something owners and developers want. Read the court decision
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Quick Note: Expert Testimony – Back to the Frye Test in Florida

December 19, 2018 — David Adelstein - Florida Construction Legal Updates
Expert testimony (opinions) – very important testimony in construction disputes. Whether it is a delay claim, an inefficiency claim, a defect claim, etc., expert testimony plays an invaluable role in construction disputes. Construction attorneys work closely with expert witnesses to ensure that an expert helps render an opinion to support their client’s burden of proof (including damages) or an affirmative defense. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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