UConn’s Law-School Library Construction Case Settled for Millions
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFA group of builders recently settled with the state of Connecticut for $12.1 million in a case “over flaws in the construction of UConn's law-school library” reported Hartford Business. The State of Connecticut v. Lombardo Bros. Mason Contractors, Inc., et al. had been scheduled to start trial in 2015. According to Hartford Business, “The settlement ends six years of litigation over defects in construction of the library, which was completed in 1996 and renamed in 2010 in honor of the late Gov. Meskill.”
An investigation into the construction of the library began after “[l]eaks, instability in the library’s granite façade, and other structural and safety problems became evident.”
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Why Are Developers Still Pouring Billions Into Waterlogged Miami?
November 30, 2016 —
James Tarmy – BloombergOn Sunday, an ebullient procession of artists, performers, and city residents filled Collins Avenue between Miami Beach’s 32nd and 36th streets to inaugurate the Faena Forum, a 43,000--square-foot, $150 million, performing- and visual-arts space that’s the cultural centerpiece of the Faena District, a $1 billion development comprising luxury hotels, restaurants, and real estate. The complex is the brainchild of Alan Faena, an Argentinian fashion designer-cum-developer known for his all-white outfits, and Len Blavatnik, a Ukrainian born, New York-based billionaire whose net worth is estimated by Bloomberg Billionaires to be $18.6 billion.
The parade/carnival/performance was was titled “Side by Tide,” which might be an overly optimistic assessment of Miami Beach's sea level. With "king tides" flooding parking garages and a University of Miami study reporting that Miami Beach has seen a 200 percent increase in flooding in the last decade, the tide isn’t on anyone’s side. It’s already beneath the city, seeping upward, often as not, through the ground’s porous limestone and into buildings’ backlogged storm drains. Aside from ruining the undercarriages of residents’ Porsches, this ground-up flooding has a second, perhaps more deleterious effect on the long-term feasibility of Miami Beach: Normal defenses against a rising ocean—such as sea walls or dykes—are useless.
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James Tarmy, BloombergMr. Tarmy may be followed on Twitter @jstarmy
Seattle Independent Contractor Ordinance – Pitfalls for Unwary Construction Professionals
October 09, 2023 —
Travis Colburn - Ahlers Cressman & SleightChapter 14.34 of the Seattle Municipal Code is a relatively new ordinance that can affect the parties to a construction contract for work performed within the City of Seattle’s city limits. The Independent Contractor Protection Ordinance (“ICPO”) was enacted to provide self-employed persons, or entities composed of not more than one person, regardless of corporate form, recourse for timely payment for work performed. The ICPO applies to contracts of $600[i] or more between an independent contractor and a hiring entity where the work, in whole or in part, is known to be performed within the City of Seattle’s city limits.[ii] The ICPO cannot be waived by parties to a contract.[iii]
Historically, the primary legal recourse for non-payment or late payment for work performed under a contract involves an expensive breach of contract action, and one reason the ICPO was enacted was to give greater protection to a growing number of Washington independent contractors who report problems with timely and accurate payment.
The ICPO affects “hiring entities” or any individual, partnership, association, corporation, business trust, or any entity, person or group of persons, or a successor thereof, that hires independent contractors to provide services within the scope of a hiring entity’s business or commercial activities. In the construction context, most general contractors, subcontractors, design professionals, and design consultants should be aware of this ordinance, as well as certain owners[iv] and development-side entities.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Even Fraud in the Inducement is Tough in Construction
November 06, 2023 —
Christopher G. Hill - Construction Law MusingsI have discussed how hard it is in the Commonwealth of Virginia to make out a claim for fraud when a construction contract is involved. On limited exception is where a claim for “fraud in the inducement” is involved. Essentially, such a claim states that one party was hoodwinked into entering the contract in the first place. Because of the initial fraud (for instance misrepresenting the class or existence of a contractor’s license), the courts may bypass the terms of the contract and allow a claim for fraud to go forward.
While you may think that this would lead to many claims making it past a Motion to Dismiss, at least one court here in Virginia makes it clear that such claims will not be taken lightly and must be supported by specific and substantial allegations that would support more than just “advertising” or opinion. In County of Grayson v. Ra-Tech Services Inc., the U. S. District Court for the Western District of Virginia reviewed an amended complaint from the Plaintiff seeking to make out a claim for fraud in the inducement based upon the defendant’s statements in support of a proposal that certain brands of equipment would be used. The Court further considered general allegations that the Defendant never intended to provide those particular brands of equipment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Builder Waits too Long to Dispute Contract in Construction Defect Claim
May 10, 2012 —
CDJ STAFFThe Louisiana Court of Appeals has affirmed the lower court’s judgment in the case of Richard v. Alleman. The Richards initiated this lawsuit under Louisiana’s New Home Warranty Act, claiming that they had entered into a construction contract with Mr. Alleman and that they quickly found that his materials and methods had been substandard. They sued for the cost of repairing the home and filing the lawsuit. Mr. Alleman countersued, claiming the Richards failed to pay for labor, materials, and services. By his claim, they owed him $12,838.80.
The trial court split the issues of liability and damages. In the first trial, the court concluded that there was a contact between Alleman and the Richards and that the New Home Warranty Act applied. Mr. Alleman did not appeal this trial.
The second trial was on the issue of damages. Under the New Home Warranty Act, the Richards were found to be entitled to $36,977.11 in damages. In a second judgment, the couple was awarded $18,355.59 in attorney’s fees. Mr. Alleman appealed both judgments.
In his appeal, Alleman contended that the trial court erred in determining that the Home Warranty Act applied. This was, however, not the subject of the trial, having been determined at the earlier trial. Nor did the court accept Alleman’s claim that the Richards failed to comply with the Act. The trial record made clear that the Richards provided Alleman with a list of problems with their home by certified mail.
The court did not establish whether the Richards told Alleman to never return to their home, or if Alleman said he would never return to the home, but one thing was clear: Alleman did not complete the repairs in the list.
A further repair was added after the original list. The Richards claimed that with a loud noise, a large crack appeared in their tile flooring. Mr. Alleman stated that he was not liable for this as he was not given a chance to repair the damage, the Richards hired the flooring subcontractors, and that the trial court rejected the claim that the slab was defective. The appeals court found no problem with the award. Alleman had already “refused to make any of the repairs.”
Finally Alleman made a claim on a retainage held by the Richards. Since Alleman did not bring forth proof at trial, the appeals court upheld the trial courts refusal to award a credit to Alleman.
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Connecticut Supreme Court Further Refines Meaning of "Collapse"
January 13, 2020 —
Tred R. Eyerly - Insurance Law HawaiiConnecticut courts have been inundated with collapse cases the past couple of years due to insureds' living in homes that were constructed with defective concrete manufactured by J.J. Mottes Concrete Company. In a duo of cases, the Connecticut Supreme Court responded to a certified question from the U.S. District Court, holding that collapse required that the building be in imminent danger of falling down. Vera v. Liberty Mut. Fire Ins. Co., 2019 Conn. LEXIS 339 (Conn. Nov. 12, 2019).
Plaintiffs had resided in their home since 2009. The home was built in 1993. In August 2015, after learning about the problem of crumbling basement walls affecting homes in their community due to cement manufactured by Mottes, they retained a structural engineer to evaluate their basement walls. The engineer found spider web cracking approximately 1/16 of an inch wide in the basement walls and three small vertical cracks. There were no visible signs of bowing. The engineer did not find that the walls were in imminent danger of falling down, but recommended that the basement walls be replaced.
Plaintiffs submitted a claim under their homeowners policy to Liberty Mutual. The claim was denied. The policy did not define collapse, but stated that collapse did not include "settling, cracking, shrinking, bulging or expansion."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Senate’s Fannie Mae Wind-Down Plan Faces High Hurdles
March 19, 2014 —
Clea Benson, Cheyenne Hopkins and Kathleen Hunter – BloombergA bipartisan U.S. Senate plan to dismantle Fannie Mae (FNMA) and Freddie Mac must clear many political hurdles in a short time if it is to become law, leaving narrow chances of a housing-finance overhaul being enacted this year.
Senate Banking Committee leaders said the proposal, which they plan to release later this week, would replace the two U.S.-owned mortgage financiers with government bond insurance that would kick in only after private capital suffered severe losses.
It will be left to the courts to decide how investors in Fannie Mae and Freddie Mac are treated as the two companies are wound down, Mike Crapo, an Idaho Republican who co-wrote the bill, said today in an interview on Bloomberg Television. Investors including Perry Capital and Fairholme Capital Management are suing the U.S. to challenge an arrangement in which all the companies’ profits go to the Treasury.
Ms. Benson may be contacted at cbenson20@bloomberg.net; Ms. Hunter may be contacted at khunter9@bloomberg.net; Ms. Hopkins may be contacted at chopkins19@bloomberg.net
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Clea Benson, Cheyenne Hopkins and Kathleen Hunter, Bloomberg
Client Alert: Release of Liability Agreement Extinguishes Duty of Ordinary Care
February 05, 2015 —
R. Bryan Martin and Whitney L. Stefko – Haight Brown & Bonesteel LLPOn January 27, 2015, the California Court of Appeal, Fourth Appellate District, in Eriksson v. Nunnink (Case No. E057158), held a release of liability between Decedent and Defendant was enforceable as a defense to the Decedent's Parents' wrongful death and negligent infliction of emotional distress ("NIED") claims. In Eriksson, the Court concluded that on the basis of the signed release agreement, Defendant did not owe a duty of care to Decedent and thus could only be liable for Decedent's death if caused by the Defendant's gross negligence. The Court held that Plaintiffs failed to establish gross negligence and affirmed the lower court's judgment.
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R. Bryan Martin and
Whitney L. Stefko
Mr. Martin may be contacted at bmartin@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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