“Bound by the Bond”
September 02, 2024 —
Daniel Lund III - LexologyA New York trial court granted judgment in favor of a performance bond surety on a construction project, based upon the failure of the claiming party to abide by the terms of the bond.
The “AIA Document A312” bond form – described by the court (quoting surety law authority) to be “one of the clearest, most definitive, and widely used type of traditional common law ‘performance bonds’ in private construction” – contains various procedures which must be honored as a “condition precedent to an action to recover” on the bond/against the surety. One of those prerequisites is a “declaration of default” concerning the contractor principal (here, a subcontractor).
The case involved the construction of an 85-story skyscraper in midtown Manhattan, and the performance of the subcontract for the building’s superstructure. The bonded contract was at a value of approximately $25,000,000 and obligated the sub to provide a performance bond “in a form similar to the [A312 bond],” and which was otherwise satisfactory to the obligee/construction manager.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Prior Occurrence Exclusion Bars Coverage for Construction Defects
April 11, 2022 —
Tred R. Eyerly - Insurance Law HawaiiWhile the insured's faulty work constituted an occurrence under Florida law, a prior occurrence exclusion barred coverage. Pro-Tech Caulking & Waterproofing v. TIG Ins. Co., 2022 U.S. Dist. LEXIS 12319 (S.D. Fla. Jan. 19, 2022).
Pro-Tech was a waterproofing subcontractor for construction of a oceanfront condominium building and was responsible for the installation of waterproofing systems on the Project. Pro-Tech entered into a separate contract with the developer, BRE Point Parcel, LLC to install a traffic coating on the garage floors.
BRE sued the general contractor, Pro-Tech and others for construction defects. The underlying action alleged that Pro-Tech, among other things, failed to wrap the filter fabric to protect the weep holes, improperly installed sealants between the stucco and the underside of the horizontal tile at the balcony slab edge, and failed to properly install traffic coating in one garage. The underlying complaint did not state exactly when the "property damage" resulting from Pro-Tech's alleged defective work occurred.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
How Do You Get to the Five Year Mark? Some Practical Advice
August 26, 2015 —
Christopher G. Hill – Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we would like to welcome back (again) Sean Lintow Sr. of
SLS Construction & Building Solutions . Sean has over 20 years working directly in the trenches in the construction arena. Since moving to Illinois, the focus of his business has shifted to helping builders, trade professionals& even code officials not only understand and meet the latest energy codes but how to improve their methods to accomplish it better and more affordably.
Currently he is RESNET Rater, AEE CEA (Certified Energy Auditor), ENERGY STAR partner & verifier, EPA Indoor airPLUS verifier, Level 2 Infrared Thermographer, Volunteer Energy Rater for Habitat for Humanity, and Builders Challenge Partner & Verifier. You may also want to check out his great resources on
The HTRC (Homeowners & Trades Resource Center).
I would like to thank Chris for inviting me back for my 6th musing on this great site. I would also like to give him a Belated Happy Birthday for reaching 5 years since going solo. Reaching five years is a big milestone for many businesses as most new ventures (I think it is 85% or maybe even 90%) fail during that time. Therefore, a big congrats to you Chris & here is to another five plus years.
For the most part the blame game for failure comes down to; wrong product offerings (market to saturated, not interested in, etc…), their ability to market, or poor business skills (not charging enough, realizing what they are spending, etc…) as the main point of failures. There is another group though that never seems to get much press and that is the ones that seemingly are blindsided by the dreaded “ignorance of the law” is no excuse… Not only does this effect many large companies but also many solo operations which is where I do want to focus today, especially on 4 “lesser” known issues.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Steel Makeover Under Way for Brooklyn's Squibb Footbridge
January 13, 2020 —
Tom Stabile - Engineering News-RecordBrooklyn Bridge Park’s Squibb Bridge has 127 fewer years of existence than the borough’s iconic East River span, but the pedestrian crossing got lots of New York City attention since it was first opened in 2013 after being shut down twice—once for excessive “bounciness” and again due to rotting wood. Now its reconstruction, hopefully for good, is anything but a straightforward operation.
Tom Stabile, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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The Coverage Fun House Mirror: When Things Are Not What They Seem
December 14, 2020 —
Randy J. Maniloff - White and Williams LLPWhen it comes to commercial general liability coverage, sometimes things are not what they seem. Some policy language looks like it has a clear meaning. But it turns out that there is more than meets the eye. To see this, you need not look further than the first page of the commercial general liability form. Take its insuring agreement. Its words are by now etched in stone tablets. But even so.
Any potential coverage is tied, in part, to damages because of “bodily injury.” Everyone knows what “bodily injury” is. The blood and broken bones are hard to miss. But is emotional injury bodily injury? Or what about hair loss, weight loss, fragile fingernails, loss of sleep, crying or a knot in your stomach? Courts have been required to address whether all of these are “bodily injury.”
And was that “bodily injury” caused by an “occurrence?” as required by the CGL insuring agreement? An “occurrence” is defined as an accident. Of course everyone knows what an accident is. Then why is it the oldest and most litigated coverage question of them all, with courts struggling with it for about 150 years?
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Randy J. Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Hotel Claims Construction Defect Could Have Caused Collapse
December 30, 2013 —
CDJ STAFFThe owners of the Crowne Plaza New Orleans Airport, in Kenner, Louisiana, have filed a lawsuit claiming that a defective beam installed during renovations put the building at risk of collapse, reports The Louisiana Record. The hotel was sold to its current owners, 2929 Williams Blvd, LLC, in 2006, and the renovations began after Hurricane Katrina in 2007. The renovations converted an indoor pool area into a ballroom.
The renovations were finished in 2008, but hotel staff noticed the walls and ceiling of the ballroom were sagging by September 2011. A structural engineer determined that a main beam had failed, risking collapse of the entire building. The hotel owners set upon repairing the structure and now seek reimbursement. 2929 Williams Blvd., LLC is suing Trimark Constructors LLC, Kyle Associates LLC, and Avengo Baily & Associates, Inc. for an unspecified amount of damages.
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How Many Homes have Energy-Efficient Appliances?
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing analyzed data from the Census Bureau’s 2011 American Housing Survey to “reveal the share of owner-occupied homes that contain various Energy Star related appliances.”
Eye on Housing reported that in “new homes, the leading shares of Energy Star rated appliances were refrigerators (70%), washing machines (69%), dishwashers (65%), and central air conditioning (52%).” In “owner-occupied homes,” the survey demonstrated that “refrigerators are the most common Energy Star appliance.”
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Questions of Fact Regarding Collapse of Basement Walls Prevent Insurer's Motion for Summary Judgment
December 19, 2018 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer's motion for summary judgment on whether the policy covered the collapse of basement walls based upon factual issues presented. Sirois v. USAA Cas. Ins. Co., 2018 U.S. Dist. LEXIS 158508 (D. Conn. Sept. 18, 2018).
The insureds' purchased their home in 2010. In December 2015, a crack in the basement wall was noticed. It was not thought to be a serious problem. But in 2016, the insured read an article about defective concrete problems affecting homeowners in Connecticut. An inspector, Dean Soucy, was hired. He found faults and cracks in the foundation walls. Thereafter, a claim was submitted to USAA under homeowners' policies issued over the years to the insureds. USAA denied coverage.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com