Fairfield Connecticut Building Expert Directory

The Expansion of Potential Liability of Construction Managers and Consultants

November 18, 2019 — Scott D. Cessar - Construction Executive
Over the last decade or so, there has been far more judicial willingness to adopt legal theories that result in an increased risk of exposure to construction managers and consultants working on construction projects. This has resulted in a greater likelihood of lawsuits being filed that name construction managers and consultants as defendants and a greater likelihood of those lawsuits surviving efforts to have the lawsuits dismissed prior to trial. The consequence of more claims has led to increased costs for legal expenses, settlements and uncompensated personnel time devoted to the defense of the claims. This expansion of potential liability may be broken into two sets:

claims for pure economic loss not arising from property damage or personal injury by parties not in a contractual relationship with a construction manager or consultant; and
claims for property damage or personal injury by a party not in a contractual relationship with a construction manager or consultant.

The first set concerns claims by a contractor against a construction manager or consultant that its breach of duties owed to the owner on a project and/or its provision of incomplete or inaccurate information on a project, which it knew, or should have reasonably anticipated, would be relied on by the contractor, resulted in damages to the contractor. Reprinted courtesy of Scott D. Cessar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Cessar may be contacted at scessar@eckertseamans.com

NCDOT Aims to Reopen Helene-damaged Interstate 40 by New Year's Day

December 10, 2024 — Derek Lacey - Engineering News-Record
Interstate 40, closed in late September when flooding from Hurricane Helene caused multiple landslides and washouts in the Pigeon River Gorge between North Carolina and Tennessee, is expected to partially reopen on New Year’s Day 2025, more than three months after the storm. Long-term reconstruction plans are still in early development. Read the court decision
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Reprinted courtesy of Derek Lacey, ENR
Mr. Lacey may be contacted at laceyd@enr.com

Owners and Contractors are Liable for Injuries Caused by their Independent Contractors under the “Peculiar Risk Doctrine”

October 15, 2024 — William L. Porter - Porter Law Group
Many contractors and owners believe that if they hire an independent contractor to perform work and that independent contractor causes injury to others during the performance of that work, then it is the independent contractor alone who will be liable for those injuries. In most circumstances, this is correct. The owner or the contractor will not be held liable for injuries caused by his or her independent contractor. However, this is not always the case. Under the “Peculiar Risk Doctrine” and California cases interpreting the doctrine, a contractor or owner who hires an independent contractor to do work which is considered to be “inherently dangerous work” can be still be held directly liable for damages when that independent contractor causes injury to others by negligently performing the work. Such liability can generally be imposed on the one hiring the independent contractor under either of two branches of the peculiar risk doctrine. First, where a person hires an independent contractor to do inherently dangerous work, but fails to provide in the contract or in some other manner that special precautions must be taken to avert the peculiar risk of injury related to that work, then the one hiring the independent contractor can be held liable for injuries to others caused by the independent contractor’s negligence. (Restatement Second of Torts Section 413). For example, in Mackey v. Campbell Construction Co. 101 Cal. App. 3d 774, 162 Cal. Rptr. 64 (1980), Western Electric Company, the owner of the project, was found liable for the personal injuries of a subcontractor’s employee because Western’s representatives were on the job at all times, had doubts about the safety of scaffolding being used on the project, yet failed to require use of precautions that could have been taken to avoid injury. 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

Insurer's Refusal to Consider Supplemental Claim Found Improper

June 17, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventy Circuit reversed the district court's finding that the insurer had properly rejected the insured's supplemental claim. Great Lakes Ins. SE v. Concourse Plaza A Condomiium Association, Inc., 2024 U.S. App. LEXIS 8958 (11th Cir. April 15, 2024). On September 10, 2017, Hurrican Irma struck Concourse Plaza's building, causing wind and water damage. Great Lakes sent a adjuster to inspect the property. The adjuster found damages to the building were $31,035.21, well below the policy's deductible. Accordingly, Great Lakes advised that the net amount of the claim was zero. Concourse Plaza responded on September 4, 2020, just shy of three years after the cliam accured. Concourse Plaza disputed the damages estimate, but did not include a competing estimate. The letter said an estimate was being prepared and Great Lakes should consider the letter as notice of the intent to pursue additional benefits for the loss pursuant to the policy's notice provisions and Florida law. 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

WA Supreme Court Allows Property Owner to Sue Engineering Firm for Lost Profits

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
In the Daily Journal of Commerce, Scott A. Smith and James H. Wendell discussed the recent Washington Supreme Court decision in Donatelli v D. R. Strong Consulting Engineers. The court’s ruling casts “doubt on a company's ability to limit its liability for economic losses arising out of a contract dispute.” The Donatellis hired D. R. Strong Consulting Engineers to develop vacant land in King County, however, the “project did not go according to plan and the real estate market collapsed before the project was completed,” according to the Daily Journal of Commerce. The “Donatellis lost their property through foreclosure” and then “sued the engineering firm for more than $1.5 million in lost profits.” D. R. Strong Consulting Engineers asked for the negligence claims to be dismissed “because the parties' contract contained a provision limiting the engineering firm's liability to the amount of its fee for ‘any injury or loss on account of any error, omission, or other professional negligence.’” However, the Washington Supreme Court ruled that “the case could proceed in the trial court on a theory that the engineers could be liable if they made negligent misrepresentations that induced the Donatellis to enter into the contract in the first place.” Smith and Wendell stated that because of “this decision, engineering, architectural, construction, and other professional service companies may now face damage claims they thought they were contractually protected against.” Read the court decision
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Alert: AAA Construction Industry Rules Update

June 07, 2021 — Christopher G. Hill - Construction Law Musings
The American Arbitration Association has made some needed updates to their Construction Industry Arbitration and Mediation Rules, effective July 1, 2015. Among the changes listed at their website are:

A mediation step for all cases with claims of $100,000 or more (subject to the ability of any party to opt out).
Consolidation and joinder time frames and filing requirements to streamline these increasingly involved issues in construction arbitrations.
New preliminary hearing rules to provide more structure and organization to get the arbitration process on the right track from the beginning.
Information exchange measures to give arbitrators a greater degree of control to limit the exchange of information, including electronic documents.
Availability of emergency measures of protection in contracts that have been entered into on or after July 1, 2015.
Enforcement power of the arbitrator to issue orders to parties that refuse to comply with the Rules or the arbitrator’s orders.
Permissibility of dispositive motions to dispose of all or part of a claim or to narrow the issue in a claim.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

In Florida, Component Parts of an Improvement to Real Property are Subject to the Statute of Repose for Products Liability Claims

December 02, 2015 — Michael L. DeBona – White and Williams LLP
In Dominguez v. Hayward Industries, Inc., Certified Gunite Company d/b/a Custom Pools, and John M. Pieklo, — So.3d —-, 2015 WL 5438782 (3d DCA Sept. 16, 2015), the District Court of Appeal of Florida, Third District, discussed whether products liability claims related to a pool filter, a component part of a pool system, were subject to Florida’s twelve-year products liability statute of repose, section 95.031, Florida Statutes. The court held that a pool filter does not constitute an improvement to real property and, thus, the plaintiffs’ claims were subject to the statute of repose. Background Facts Ryan and Jessica Dominguez had a pool installed at their house; the delivery and installation of the pool and its filter were completed on December 20, 1999. Over twelve years later – on November 17, 2012 – the pool filter exploded, causing Mr. Dominguez a severe head injury. Mr. Dominguez and his wife brought a products liability action against, among others, the pool filter manufacturer and distributor, Hayward Industries, Inc., and the installer of the pool and intermediate distributor of the pool filter, Certified Gunite Company. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

The One New Year’s Resolution You’ll Want to Keep if You’re Involved in Public Works Projects

January 07, 2015 — Garret Murai- California Construction Law Blog
New Year’s resolutions are hard to keep. In fact, studies (which I have a sneaking suspicion may have been paid for by the tobacco, donut and vacation timeshare lobbies) have found that only 8% of New Year’s resolutions are kept. But, here’s one you’ll want to make sure you keep. Mandatory Registration and Notice Requirements If you’re a public works contractor or subcontractor you only have until March 1, 2015 to register through the California Department of Industrial Relations (“DIR”) to bid and enter into public works contracts on state and local public works projects. And if you’re a state or local public agency you must provide notice of the DIR’s new registration requirements in all call for bids and contract documents beginning January 1, 2015. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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