Fairfield Connecticut Building Expert Directory

Subprime Bonds Are Back With Different Name Seven Years After U.S. Crisis

January 28, 2015 — Jody Shenn – Bloomberg
(Bloomberg) -- The business of bundling riskier U.S. mortgages into bonds without government backing is gearing up for a comeback. Just don’t call it subprime. Hedge fund Seer Capital Management, money manager Angel Oak Capital and Sydney-based bank Macquarie Group Ltd. are among firms buying up loans to borrowers who can’t qualify for conventional mortgages because of issues such as low credit scores, foreclosures or hard-to-document income. They each plan to pool the mortgages into securities of varying risk and sell some to investors this year. JPMorgan Chase & Co. analysts predict as much as $5 billion of deals could get done, while Nomura Holdings Inc. forecasts $1 billion to $2 billion. Read the court decision
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Reprinted courtesy of Jody Shenn, Bloomberg
Ms. Shenn may be contacted at jshenn@bloomberg.net

Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance

May 01, 2023 — Jason Feld & Stephanie Wilson - Kahana & Feld LLP
Arizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022) adopted a bright line rule that regardless of the contract, the implied warranty of workmanship and habitability (“implied warranty”) cannot be disclaimed or waived under any circumstance. The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty – which is a definitive violation of public policy. The Zambrano decision involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty. The express warranty was to be the “only warranty applicable to the home.” The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty. The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged “design and construction defects” that were “either time barred or outside the coverage” of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano’s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court. Reprinted courtesy of Jason Feld, Kahana & Feld LLP and Stephanie Wilson, Kahana & Feld LLP Mr. Feld may be contacted at jfeld@kahanafeld.com Ms. Wilson may be contacted at swilson@kahanafeld.com Read the court decision
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Court of Federal Claims: Upstream Hurricane Harvey Case Will Proceed to Trial

July 02, 2018 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On May 24, the U.S. Court of Federal Claims decided one of what may be many cases involving the terrible flooding wrought by Hurricane Harvey in the Houston, TX region. The Court of Federal Claims has divided thousands of pending claims into “upstream” and “downstream” categories, depending on whether the flooded properties were located upstream or downstream of two U.S. Army Corps of Engineers (Corps) flood control reservoirs that were constructed in the 1940s and 1950s. The case is In re Upstream Addicks and Barker (Texas) Flood-Control Reservoirs; however, the Court of Federal Claims’ order in this case applies to “all upstream cases.” Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLP
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

BIOHM Seeks to Turn Plastic Waste into Insulation Material with Mushrooms

July 27, 2020 — Aarni Heiskanen - AEC Business
BIOHM is a research and development led UK start-up that aims to revolutionize the construction industry with its bio-based materials. Among their products are insulation panels made from mycelium, the root formations of fungi. Recently, the company discovered that certain fungal species can consume plastic as a food source. This invention could bring about new construction materials that originate from plastic waste. “Evolving from eating leaf matter and the odd bit of tree bark, to eating plastic might seem like a huge jump, but for certain fungi, it can actually happen very quickly. The inhabitants of the microbial world are far more genetically flexible than humans, able to evolve and adapt to their environment within a generation, constantly modifying and improving upon their genome to maximize their productivity,” says Samantha G.R. Jenkins, Lead Biotechnology Engineer. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Failure to Consider Safety Element in Design Does Not Preclude Public Entity’s Discretionary Authority Under Design Immunity Defense

May 16, 2018 — Garret Murai - California Construction Law Blog
In Rodriguez v. Department of Transportation, Case No. F074027 (March 27, 2018), the Court of Appeals for the Fifth District considered the following mind-twister: Can you knowingly approve something (which does not include something else) if you never considered the absence of that “something else?” Think about that for a moment . . . or, better yet, just read on. Rodriguez v. Department of Transportation In 2013, a pickup truck traveling westbound on State Route 152 toward Los Banos, California, ran off the road injuring Erik Rodriguez and the driver and killing another passenger. Rodriguez sued the California Department of Transportation (Caltrans) on the ground that the accident was caused by a dangerous condition on public property. 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

Court Dismisses Coverage Action In Lieu of Pending State Case

July 25, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's coverage action was dismissed by the federal court in favor of the pending case in state court. Southern-Owners Ins. Co. v Marquez, 2021 U.S. Dist. LEXIS 108125 (S.D. Fla. May 4, 2021). The underlying lawsuit was filed because of of an incident involving a golf cart on a sidewalk owned by the AOAO. The Marquezes owned the golf cart that injured the Murphy's child. Southern-Owners issued a CGL policy to the AOAO. The Marquezes submitted a claim to Souther-Owners for coverage in the underlying lawsuit as additional insureds under the policy. Southern-Owners defended the AOAO and the Marquezes in the underlying lawsuit pursuant to a reservation of rights. The underlying complaint alleged that the Marquezes negligently permitted their daughter to operate the golf cart on the AOAO's pedestrian walkway. Further, the AOAO negligently failed to reasonably maintain the 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

Texas School District Accepts Settlement Agreement in Construction Defect Case

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
The Pine Tree ISD Board of Trustees “voted to accept a mediated settlement agreement to end litigation concerning the District’s middle school and its construction issues,” according to KETK News. Pine Tree ISD, located in Longview, Texas, “sued a number of defendant companies for construction and design defects at that campus.” The school district “will receive the total sum of $820,500,” which “will cover the District’s costs in remediating the campus to repair the construction problems, as well as implementing new systems designed to prevent future issues, both of which came out of the District’s general fund.” Read the court decision
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Are Proprietary Specifications Illegal?

April 11, 2018 — Wally Zimolong – Supplemental Conditions
A friend came to me with a question regarding a case he was working: “can a public owner require that bidders use a specific brand name product?” “Of course not,” I said “proprietary specifications are illegal.” Or, at least that’s what I assumed. To my surprise, the law in the Commonwealth of Pennsylvania is not as clear as it is in other jurisdictions. What is a proprietary specification? A proprietary specification lists a product by brand name, make, model and/model that a contractor must (shall) utilize in construction. A basic example of a proprietary specification would state:

“Air Handlers shall be “Turbo Max” as manufactured by Chiller Corp.”

There are two problems with a proprietary specification (other than potentially being illegal): (a) they limit competition, and (b) invite steered contract awards. They limit competition because it limits the type of material that can be used on the project. In the example above, there could be equivalent air handlers available at a better price but the contractor could not use that lower priced product in its bid. Thus, the taxpayers end up paying more for tile. Also, contractors may not be able to secure a certain brand name product because of exclusive distribution agreements. Again, using the example above, contractor A’s competitor may have the exclusive distribution agreement with Chiller Corp. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES