FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

A Reminder to Get Your Contractor’s License in Virginia

April 25, 2023 — Christopher G. Hill - Construction Law Musings
How are ducks and contractors alike? A question I get often, particularly from construction contractors outside of Virginia is whether they need to get a Virginia contractor’s license. The answer is almost invariably “yes.” The next question is why? The answer is almost always “Because state law says so.” With some minor exceptions for material suppliers and the like, Virginia law requires that all of those that perform construction for others carry the proper license and specialization for the work performed. There is no exception for the proverbial “paper contractor” that takes money from an owner and subcontracts all of the actual physical work. It does not matter if you use a different term for what you do for the owner. If it walks like a duck and quacks like a duck. . .its a duck. If you take money to perform construction, you’re a contractor. Some of the consequences of contracting without a license (aside from possible criminal charges) include among other things, the inability to perfect a mechanic’s lien under Va. Code 43-3(D) and, with minor exceptions, the ability to enforce a contract (meaning it really hurts your ability to get paid). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Business Risk Exclusions Bar Coverage for Construction Defect Claims

August 27, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014). The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable. The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Traub Lieberman Attorneys Recognized in 2019 Edition of Who’s Who Legal

June 10, 2019 — Traub Lieberman
Traub Lieberman attorneys Richard K. Traub and Richard J. Bortnick have been recognized in Who’s Who Legal Insurance & Reinsurance: Lawyers. Published by London-based Law Business Research Limited, Who’s Who Legal recognizes the premier legal practitioners in multiple areas of business law. Start in 1996, Who’s Who Legal has recognized over 24,000 private practice lawyers and 2,500 consulting experts from over 150 national jurisdictions across the globe. Traub is a founder and co-managing partner of Traub Lieberman who works in a wide array of fields, including construction, pharmaceutical, product manufacturing, technology, insurance and reinsurance. Bortnick is a Partner in the firm’s New Jersey office who counsels clients on cyber and technology risks, exposures and best practices, cyber breach response management and interaction with regulators. He also handles matters involving directors’ and officers’ liability, professional liability, insurance coverage, and commercial litigation matters. Read the court decision
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No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”

February 10, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Jeff City Industries was the general contractor for a sewer system improvement project in Branson, Missouri. Bituminous Cas. Corp. v. United HRB Gen. Contractors, Inc., 2011 U.S. Dist. LEXIS 145666 (W.D. Mo. Dec. 19, 2011). Branson sued Jeff City, alleging breach of the construction contract for the project. The claims included improperly bedded sewer piping, improper aligning portions of trenching for the sewer piping, improper service line connections to the sewer piping, etc.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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The Case For Designers Shouldering More Legal Responsibility

November 21, 2018 — Richard Korman - Engineering News-Record
Ujjval Vyas is dignified, articulate and persistent. In past years he earned a law degree and a PhD where his thesis concerned Philip Johnson and architectural modernism. He is a founder of a hydrogen energy company. He is also leading a crusade, largely by himself, advocating that designers should be held to a "clients come first" approach applied to other professionals—an idea that would burden engineers and architects with the weight of vastly increased legal liability. The reactions to his ideas in the past have ranged from scornful to sympathetic. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

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Construction Suit Ends with Just an Apology

February 10, 2012 — CDJ STAFF

After suing a contractor for failing to complete the remodeling of their home, an Orange County couple has settled for an apology. Douglas J. Pettibone represented the contractor, who had lost his business after a broken neck, multiple surgeries, and an addiction to pain medicine. Mr. Pettibone represented his client pro bone. The case was settled in arbitration by JAMS.



Mr. Pettibone noted that his client gave “a heartfelt and very moving apology.” The remodeling was completed by another contractor, two years after Thorp Construction stopped work on the project. After the apology, the case was dismissed.

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Miller Act Bond Claims Subject to “Pay If Paid”. . . Sometimes

November 04, 2019 — Christopher G. Hill - Construction Law Musings
The Federal Miller Act is a great tool that subcontractors and suppliers on Federal projects can use for collection of wrongfully withheld amounts due. However, as a recent federal case from the Eastern District of Virginia points out, the construction contract’s terms affect when a subcontractor or supplier can use this great collection tool and how much it can recover. In Aarow v Travelers the Court looked at the interaction between a typical termination clause, a “pay when paid” clause, and the Miller Act. The key facts are these. The general contractor on the project at issue, Syska, did not get paid some disputed amounts by the owner and subsequently did not pay Aarow, the plaintiff and a subcontractor on the project. Aarow then refused to continue work and was terminated by Syska who then took over the completion of the work. Aarow sued, seeking damages for the value of its work prior to the termination. Travellers, the surety defended stating that, if Aarow was properly terminated for cause by Syska, then Aarow was not entitled to payment under the contract until such time as the work was completed and accepted by the owner. The termination clauses are set out in the linked opinion. The Court agreed with Travelers, stating that the pay when paid clause created a situation whereby Aarow could not stop work merely because of a non-payment by Syska attributed to non-payment by the owner. The Court was clear in stating that the Miller Act trumps “pay when paid” in instances where the only cause for non-payment is non-payment by an owner. The Court then reasoned that it is the interaction between the termination and “pay when paid” provisions, and not the “pay when paid” clause itself, that exonerated Travelers because it created the default by Aarow due to its refusal to continue work. In short, Aarow was properly terminated for cause because it left the job without justification and therefore Travelers was not liable. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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HOA Foreclosure Excess Sale Proceeds Go to Owner

August 15, 2022 — Ben Reeves - Snell & Wilmer Real Estate Litigation Blog
Over the last few years, the Arizona Court of Appeals wrestled with the question of who should receive the excess proceeds from a foreclosure sale. We’ve blogged about some these past unreported decisions here and here. Those decisions, somewhat inexplicably, required excess sale proceeds to be paid to senior creditors. As we noted at the time, these unreported (and non-precedential) decisions did not seem to make much sense in the context of debtor/creditor rights. Thankfully, a reported opinion finally sets the record straight. Excess sale proceeds should be paid downstream. In Tortosa Homeowners Assoc. v. Garcia, et al., No. 2 CA-CV 2021-0114 (Ct. App. Aug. 1, 2022), the Court of Appeals held that after the foreclosing lienholder is paid in full, then the excess sale proceeds should be paid to claimants in the order of their priority after the foreclosing lienholder. In other words, if a junior lienholder forecloses, then any creditors behind (i.e., junior to) the foreclosing creditor should be paid, and if all such creditors are paid, then the rest should be given to the owner. Creditors senior to the foreclosing creditor should not be paid anything from the foreclosure sale. This makes sense from a policy perspective, because the senior creditor retains its lien against the property and the bidder presumably took the presence of the senior lien into account when it made its bid for the foreclosed property. Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com

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