Fairfield Connecticut Building Expert Directory

Hoboken Mayor Admits Defeat as Voters Reject $241 Million School

February 21, 2022 — Nic Querolo - Bloomberg
Hoboken Mayor Ravi Bhalla said late Tuesday that the city’s $241 million bond referendum to build a new high school won’t pass. “While the will of the voters has made it clear that the Board of Education’s current proposal for the new high school will not move forward, I sincerely believe that the effort to improve our public schools will continue,” Bhalla said in a statement. While the board of education put forth the proposal, the mayor was a big proponent. The vote in a special election Tuesday was one of the costliest school construction referendums in New Jersey history. The bond was failing 66% to 34%, with 35 out of 42 precincts reporting, according to unofficial results posted by Hudson County as of Wednesday morning. About 7,500 ballots had been cast, translating to a roughly 17% turnout, which is strong for a school bond vote. Read the court decision
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Reprinted courtesy of Nic Querolo, Bloomberg

Good Ole Duty to Defend

August 02, 2017 — David Adelstein - Florida Construction Legal Updates
The good ole duty to defend. Certainly, a duty that should not be overlooked. A commercial general liability insurer has two duties to its insured when it comes to third-party claims: 1) the duty to defend its insured and 2) the duty to indemnify its insured. The insurer’s duty to defend its insured will always be broader than its duty to indemnify because this duty is triggered by the allegations in the lawsuit. (For this precise reason, insurers will oftentimes defend their insured under a reservation of rights.) The duty to defend is a very important duty as it is the first duty that typically comes into play when a third-party claim / action is initiated against the insured. Getting the insurer on board to provide a defense is an initial focus. One that cannot be neglected or overlooked. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Real Estate & Construction News Round-Up (01/18/23) – Construction Inventory, 3D Printing, and Metaverse Replicas

February 06, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up dives into projections on construction inventory in the housing market, the first 3D-printed house, a replica of South Korea’s Seoul in the Metaverse, and more.

Shifts that occurred last year and at the peak of pandemic have transformed the real estate industry, with 2023 emerging as something of a barometer in the manifestations of those changes. (Tony Cantu, Mortgage Professional America (MPA))
Total new construction of homes across the country is expected to drop by 200,000 dwellings per year until 2026 as skill shortages and supply issues continue to bite. (Sowaibah Hanifie, 7 News)
Almost all economists and contractors expect some sort of an economic slowdown this year. (Sebastian Obando, Construction Dive)

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

High School Gym Closed by Construction Defects

October 28, 2011 — CDJ STAFF

The high school gym in Lake Oswego, Oregon has been shut down because testing has revealed that the construction defects have lead to deterioration of the structural integrity of the roof. The school district noted that there was a chance of collapse if there were a “significant seismic event or heavy rain and winds and snow.” The school district has been in a lawsuit with the builders since 2008, which was recently settled for $600,000.

The school board is still determining whether the original contractor will be asked to correct the defect or if they will bid the job out.

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Homeowner Protection Act of 2007 Not Just for Individual Homeowners Anymore?

March 22, 2017 — Maggie Stewart - Colorado Construction Litigation
On March 9, 2017, the Colorado Court of Appeals announced its decision in Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Company, No. 16CA0101, 2017 COA 31 (Colo. App. Mar. 9, 2017). As a matter of first impression, the Court evaluated whether a senior living facility constitutes “residential property” protected by the Homeowner Protection Act of 2007 ("HPA") provision of the Construction Defect Reform Act (CDARA). In 2007, Plaintiff Broomfield entered into a contract with Defendant Brinkmann for construction of a senior assisted and independent living facility. The contract contained warranty provisions related to the quality of construction and cautioned that Plaintiff’s failure to provide Defendant with prompt notice of any defects would result in waiver of any claim for breach. The contract also limited Defendant Brinkmann’s liability by identifying three separate accrual provisions that would determine the time period in which Plaintiff could bring a claim. The project was completed in 2009. Read the court decision
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Reprinted courtesy of Maggie Stewart, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Stewart may be contacted at stewart@hhmrlaw.com

Contractor Haunted by “Demonized” Flooring

December 14, 2020 — Garret Murai - California Construction Law Blog
The most un-Halloween of Halloweens has come and gone. If you ask me though, between COVID, protests, fires, hurricanes, the passing of a Supreme Court Justice, and one of the most hotly contested elections in U.S. history, we’ve had enough scares this year to make up for it and then some. In the next case, Sieg v. Registrar of Contractors, Case No. A156089 (September 28, 2020), 1st District Court of Appeal, one contractor, haunted by “demonized” flooring, and who couldn’t catch a break even with the talisman of a release of liability signed by the homeowner, can add one more to his list of reasons why 2020 needs to be relegated to the history books. The Sieg Case In January 2012, homeowners Dennis and Ana Torchia purchased wood flooring for their home in Windsor, California. Specifically, they selected Brazilian Ebony, an exotic species of unusually hard wood, for its appearance and durability. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Limitations on the Ability to Withdraw and De-Annex Property from a Common Interest Community

October 10, 2013 — Derek Lindenschmidt — Higgins, Hopkins, McLain & Roswell, LLC.
On February 28, 2013, the Colorado Court of Appeals issued its opinion with regard to the ability of an owner (and in this case, a real estate investment owner) to withdraw and de-annex lots from a common interest community. Specifically, in Vista Ridge Homeowners Ass’n., Inc. v. Arcadia Holdings at Vista Ridge, LLC, 300 P.3d 1004 (Colo. App. 2013), the Court denied Arcadia’s appeal of a lower Colorado District Court ruling which invalidated Arcadia’s attempt to withdraw and de-annex 70 single-family lots which it owned from the 94-lot Vista Ridge Filing No. 9. The applicable Declaration reserved the right to withdraw or de-annex any portion of the community in accordance with the Colorado Common Interest Ownership Act (CCIOA), and further limited such right to the extent that “no portion of the Property may be withdrawn or de-annexed after a Lot or Unit in that portion of the Property has been conveyed to an Owner other than a Declarant or a Builder.” The decision ultimately turned on the meaning of a “portion” of the property, as intended by CCIOA, and as applied to the specific language in the Vista Ridge Declaration. Read the court decision
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Reprinted courtesy of Derek Lindenschmidt
Derek Lindenschmidt can be contacted at lindenschmidt@hhmrlaw.com

Bad Faith and a Partial Summary Judgment in Seattle Construction Defect Case

February 10, 2012 — CDJ STAFF

The US District Court of Washington has issued a ruling in the case of Ledcor Industries v. Virginia Surety Company, Inc. Ledcor was the builder of a mixed-use real estate project in Seattle called the Adelaide Project. Ledcor purchased an insurance policy from Virginia Surety covering the project. After the completion of the project, Ledcor received complaints of construction defects from the homeowners, which they forwarded to Virginia Surety.

Virginia Surety denied coverage on several grounds. Absent any lawsuit, Virginia claimed that there was “not yet any duty to defend or indemnify.” Further, as the policy commenced ten days after work on the project was substantially completed, Virginia cited a provision in the policy that excluded coverage for damage that occurred before the policy began. As problems included water intrusion, Virginia noted an exclusion for fungal damage. Finally, Virginia noted that it was not clear whether damage was due to Ledcor’s own actions.

The homeowners sued over the construction defects. Ledcor settled these suits before trial. In this, they were defended by, and settlements were paid by American Home, another of Ledcor’s insurers. Ledcor claims that Virginia Surety acted in bad faith by denying coverage and by its failure to investigate the ongoing nature of the work at the project.

The judge determined that Virginia Surety acted in bad faith when it invoked the fungus exclusion. Virginia noted that fungal damage “‘would have been’ referenced in the list of construction defects,” however, the HOAs claimed only “water stains” and “water damage,” and made no mention of mold or fungus. The court found that Virginia Surety “was not entitled to deny coverage simply because it may have suspected that mold or fungus damage existed.” The court noted that further proceedings would be needed to determine what portion of the settlement Virginia is obligated to pay.

The court found that there were matters of fact to be determined on the further issues in the case. The judge wrote that although Virginia acted in bad faith in invoking the fungus exclusion, it still had to be determined if they were in breach of contract by failing to defend Ledcor. Ledcor still needs to show that the damages claimed by the HOA were due to work actually covered by Virginia Surety.

Ledcor made an additional claim that Virginia Surety violated Washington’s laws concerning the insurance industry. Here, the court noted that the improper exclusion for fungus issues “constitutes a per se unfair trade practice.” Six other claims were made under this law. The court found that Virginia Surety did not misrepresent “pertinent facts or insurance policy provisions.” It also issued its denial letter promptly, satisfying the fifth provision. However, Virginia Surety did violate the second provision, in that it failed “to acknowledge and act reasonably promptly upon communications with respect to claims.” Two other issues could not be determined.

Judge Martinez’s decision granted a summary judgment to Ledcor on the issue of bad faith. An additional summary judgment was granted that Virginia Surety violated Washington’s Insurance Fair Conduct Act. Judge Martinez did not grant summary judgment on any of the other issues Ledcor raised.

Read the court’s decision…