Cambridge Massachusetts Building Expert Directory

Terminating A Subcontractor Or Sub-Tier Contractor—Not So Fast—Read Your Contract!

May 24, 2018 — John P. Ahlers - Ahlers Cressman & Sleight PLLC Blog
Every few months I receive a call from a general contractor or subcontractor who has just terminated a subcontractor or sub-tier contractor for non-performance and is “checking in with me to see if there are any liability issues.” After the termination has taken place, if the termination is wrongful, there are serious legal consequences. Calling your lawyer after the fact will not cure missteps in the termination process. Termination for non-performance is a common term in most contract documents. As courts interpret contracts, however, the right to earn revenue from a contract is a substantial interest, and courts generally “abhor” forfeitures (termination) of that right. In other words, the courts will strictly determine whether the terminating party to a contract has complied with the termination process to the letter. A recent example from Connecticut is instructive in this regard. [1] The general contractor on a large hospital project in Connecticut terminated its electrical subcontractor, hired others to finish the electrical subcontractor’s work, and then sued the electrical subcontractor for $26 million. The electrical subcontractor countersued the general contractor for $3.6 million of work that it had completed at the time of the termination which had not been paid for. The subcontractor claimed that due to the many changes that had occurred on the project, it stopped work because the changes altered the contract to the point that it was no longer the same contract. The subcontractor walked off the project and the general contractor then terminated the subcontractor and re-procured the work from other subcontractors. 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

Second Circuit Upholds Constitutionality of NY’s Zero Emissions Credit Program

November 21, 2018 — Anthony B. Cavender - Gravel2Gavel
On September 27, the U.S. Court of Appeals for the Second Circuit affirmed the District Court’s ruling that the “Zero Emissions Credit” (ZEC) program of the New York Public Service Commission is not unconstitutional. The case is Coalition for Competitive Electricity, et al. v. Zibelman, Chair of the New York Public Service Commission, et al. In effect, the ZEC program provides subsidies to qualifying New York nuclear power plants as a way to reduce greenhouse gas emissions. The ZEC program is intended to prevent nuclear plants from being prematurely retired from generating power until suitable replacement facilities are operating. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Oregon Supreme Court Confirms Broad Duty to Defend

January 13, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

Trump Administration Issues Proposed 'Waters of the U.S.' Rule

December 19, 2018 — Pam Radtke Russell - Engineering News-Record
Construction contractors said a proposed revised definition of “Waters of the United States,” released by the Environmental Protection Agency and the Army Corps of Engineers on Dec. 11, would provide their firms with clarity about what types of permits they will need for their construction projects near various bodies of water. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

Homeowner’s Claims Defeated Because “Gravamen” of Complaint was Fraud, not Breach of Contract

September 29, 2021 — Garret Murai - California Construction Law Blog
Be careful what you wish for or, as in the next case, what you plead. In Vera v. REL-BC, LLC, Case Nos. A155807, A156823, and A159141 (June 30, 2021) 1st District Court of Appeal, a the buyer of a remodeled home who asserted breach of contract and fraud claims against a developer discovered that her claims, including her breach of written contract claim, was subject to a shorter 3 year statute of limitations because the “gravamen” of her complaint was fraud. The REL-BC Case Homeowner Adriana Vera purchased a remodeled home in Oakland, California from developers REL-BC, LLC and SNL Real Estate Solutions, LLC. The developers had purchased the home in July 2011, remodeled it, and sold it to Vera in November 2011. As is typical in such transactions, the purchase agreement for the house required that the sellers disclose known material facts and defects affecting the property. In their disclosure, the sellers stated that they were not aware of any significant defects or malfunctions with respect to the property. The disclosure also stated that the sellers were not aware of any water intrusion issues with respect to the property. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Bremer Whyte’s Newport Beach Team Prevails on a Motion for Summary Judgment in a Wrongful Death Case!

September 02, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Congratulations on another win to Orange County Partners Jonathan Cothran and Rachel Mihai for prevailing on a Motion for Summary Judgment in a wrongful death case! Plaintiffs filed a wrongful death lawsuit alleging negligence and vicarious liability against BWB&O’s client, a licensed electrical contractor. BWB&O’s client installed a solar system at the Plaintiffs’ home in January 2018. In October 2018, an electrical fire broke out at the home in an upstairs bedroom. Tragically, the family’s father perished in the fire when he entered the home after the fire started. Plaintiffs alleged that BWB&O’s client was liable for the fire and Plaintiffs’ resulting injuries due to its electrical work on the solar system at the home. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

New York’s Lawsky Proposes Changes to Reduce Home Foreclosures

May 20, 2015 — Jesse Westbrook – Bloomberg
New York’s banking regulator proposed changes to the foreclosure process to try to help borrowers in the state keep their homes. One reason New York has a high rate of foreclosures is that mandatory settlement meetings between borrowers and mortgage servicers typically don’t take place for months after a bank initiates a foreclosure, Benjamin Lawsky, superintendent of New York’s Department of Financial Services said in prepared remarks Tuesday. Read the court decision
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Reprinted courtesy of Jesse Westbrook, Bloomberg

Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013). Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation. The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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