Fairfield Connecticut Building Expert Directory

Contractor’s Claim for Interest on Subcontractor’s Defective Work Claim Gains Mixed Results

April 27, 2020 — John J. Gazzola, Associate, Pepper Hamilton LLP - ConsensusDocs
This case concerns calculation of a damages award to a general contractor, Skanska USA Building, Inc., on its claim for breach of contract against its masonry subcontractor, J.D. Long Masonry, Inc., arising from Long’s faulty construction of a masonry façade at a medical research facility in Baltimore. When the façade collapsed and Long failed to repair it, Skanska hired a replacement subcontractor, C.A. Lindman, to remediate Long’s defective work and filed suit against Long to recover the resulting damages. After the court granted Skanska’s motion for summary judgment as to liability, Skanska moved for summary judgment on the issue of damages, relying on the indemnification provision of the subcontract to seek compensatory damages, pre- and post-judgment interest, and litigation fees. In the subcontract, Long agreed to indemnify and hold Skanska harmless from all claims, losses, costs and expenses, including attorneys’ fees, arising before or after completion of Long’s work, caused by, arising out of, resulting from, or occurring in connection with Long’s performance of the work or breach of the subcontract. The court first applied the terms of this provision to award Skanska compensatory damages, holding that Skanska was, as a matter of law, entitled to recover the amount of the Lindman subcontract and general conditions incurred to supervise remediation of Long’s work. The court, however, denied Skanska’s claim for pre-judgment interest on the entirety of these damages. Skanska asserted that it was entitled to pre-judgment interest on the full award, calculated from the date on which it first paid Lindman. The court disagreed, explaining that, under Maryland law, a claimant is entitled to an award of pre-judgment interest as of right only when the amount due is certain, definite and liquidated by a specific date prior to judgment. The court reasoned that, because much of the Lindman subcontract value was composed of later-executed change orders, an award of pre-judgment interest could not be uniformly calculated back to the date of Skanska’s first payment to Lindman. And moreover, because Skanska continued to withhold sums due to Lindman pending resolution of certain issues, awarding Skanska pre-judgment interest on amounts it had not yet paid would result in a “windfall” to Skanska because there was no “use of income” loss to be compensated. Read the court decision
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Reprinted courtesy of John J. Gazzola, Pepper Hamilton LLP
Mr. Gazzola may be contacted at gazzolaj@pepperlaw.com

Oregon Court of Appeals Rules That Negligent Construction (Construction Defect) Claims Are Subject to a Two-Year Statute of Limitations

October 20, 2016 — John P. Ahlers – Ahlers & Cressman PLLC
Statutes of limitations are distinct from statutes of repose. There is a lot of confusion between the two. Generally, a statute of limitations is a law which sets the maximum period of time which one can wait before filing a lawsuit, depending on the type of case or claim. The periods vary by state and by type of claim. Most states also employ a “discovery rule,” which provides that the statute of limitations does not “accrue” until such time as the plaintiff knew or should have reasonably known that the injury or property damage has occurred. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers & Cressman, PLLC
Mr. Ahlers may be contacted at jahlers@ac-lawyers.com

Additional Insured is Loss Payee after Hurricane Damage

October 01, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Construing the policy language, the federal district court found that the policy's additional insured was the loss payee for damage caused by Hurricanes Laura and Delta. TCP Ryan St. LLC v. Weschester Surplus Lines Ins. Co., 2024 U.S. Dist. LEXIS 125529 (W.D. La. July 16, 2024). Hurricanes Laura and Delta caused damage to TCP Ryan Street, LLC's (TCP) property. Westchester had issued a policy to MRI Heritage Brand, Inc. (MRI). MRI, as lessee, was obligated pursuant to the lease terms to "purchase and maintain . . . a policy of fire, extended coverage, vandalism and malicious mischief (or 'all risk') insurance coverage on all real property situated at the Lease Premises." The lease also required MRI to obtain coverage under a policy naming only the landlord as the sole insured and provided that the proceeds would be payable to the landlord. The policy provided that no entity was covered unless Westchester had received identifying information for the entity during the application process or the entity was added by endorsement. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Boots on the Ground- A Great Way to Learn and Help Construction Clients

May 02, 2022 — Christopher G. Hill - Construction Law Musings
This past week, I attended the Construction Law and Public Contracts seminar in Charlottesville, VA and also a breakfast meeting of the Richmond chapter of the Associated General Contractors of Virginia. Reflecting on this past week, I realized that my membership and participation in both of these great organizations (I am a member of the Board of Governors for the state bar section and the Executive Committee for the Richmond District of AGC-VA) not only provides great marketing and friendship opportunities, participation helps my construction clients in ways that a singular online marketing and interactive path would not (even with the growth of social media). Among other benefits (including case digests and the insightful newsletter), being a member of the Construction Law and Public Contracts section helps my clients in numerous ways, not the least of which is the ability to network and gain the perspective of many of the great construction attorneys here in Virginia. The ability to bounce legal thoughts off of others for their perspectives gives me the benefit of their experiences and, importantly to my clients, allows me to be more efficient in my research and arguments because of their insight. Additionally, as a solo construction attorney, knowing other attorneys in other parts of the Commonwealth of Virginia gives me a network of trusted lawyers to whom I can safely and confidently refer a case where a conflict exists or other factors (like geography) make such a referral a benefit to a construction firm in need of legal assistance on a particular matter. 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

Indiana Court of Appeals Holds That Lease Terms Bar Landlord’s Carrier From Subrogating Against Commercial Tenant

April 03, 2019 — Gus Sara - The Subrogation Strategist
In Youell v. Cincinnati Ins. Co., 2018 Ind. App. LEXIS 497 (2018), the Court of Appeals of Indiana considered whether a landlord’s carrier could bring a subrogation claim against a commercial tenant for fire-related damages when the lease, which did not reference subrogation, explicitly required the landlord to maintain fire insurance coverage for the leased premises. The court held that subrogation was barred because the provision requiring the landlord to maintain fire insurance established an agreement to provide both parties with the benefits of insurance. The Youell case establishes that, in Indiana, if the lease explicitly states that the landlord will maintain fire casualty insurance for the building, the lease evidences an agreement by the parties to shift the risk of loss to the insurer. This agreement bars a landlord’s insurance carrier from subrogating against a commercial tenant in the event of a casualty. In 2013, the building owner, Greg Dotson, began leasing a commercial building to Robert Youell for his tire business, Best One Giant Tire, Inc. (collectively, Youell). The lease agreement required that the landlord maintain fire and extended coverage insurance on the building and the leased premises. The lease also required the tenant to purchase fire and extended coverage insurance for its personal property. The lease did not mention subrogation. Dotson obtained a property insurance policy through Cincinnati Insurance. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams LLP
Mr. Sara may be contacted at sarag@whiteandwilliams.com

David M. McLain to Speak at the CLM Claims College - School of Construction - Scholarships Available

July 28, 2016 — David M. McLain – Colorado Construction Litigation
I am happy to have been asked to serve as an instructor at this year's CLM Claims College – School of Construction, to be held at the Marriott Baltimore Waterfront in Baltimore, Maryland on Wednesday, September 7, 2016 through Saturday, September 10, 2016. Overview of the 2016 School of Construction Construction claims present myriad complexities in claim handling. Construction defect lawsuits are often multi-party cases with cross claims and third-party claims between and among the numerous defendants. Insurance coverage is intertwined and complex due to the interplay of primary, excess, wrap, and additional insurers for the numerous defendants. All this is further complicated by statutes and regulations, inconsistent case law and procedural peculiarities throughout the United States. The economic stakes are high as the damages claims can be in the multi-millions. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

California Enacts New Claims Resolution Process for Public Works Projects

January 19, 2017 — Garret Murai – California Construction Law Blog
If you’re a public entity or contractor involved in public works construction you should be aware of a new law, AB 626, which took effect on the first of this year and establishes a new mandatory claims resolution process for disputes on public works projects. Here’s what you need to know: What is the new law and where is it codified at? AB 626 added new Public Contract Code Section 9204 that according to the bill’s author, Assemblymember David Chiu of San Francisco, establishes “a claim resolution process applicable to any claim by a contractor in connection with a public works project.” Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

ABC Announces Disaster Relief Efforts and Resources Following Hurricane Milton

October 15, 2024 — ABC - Construction Executive
HURRICANE RELIEF Florida, Georgia, South Carolina, North Carolina, Virginia and Tennessee were hit with Hurricane Helene, and now Florida is facing additional damage from Hurricane Milton, which is expected to make landfall on Wednesday, Oct. 9. Damages from Helene have already been catastrophic, and our hearts and prayers go out to all currently affected and those who may be in the path of Milton. Florida Gov. DeSantis has declared a state of emergency for 51 counties ahead of this impending storm. Donate to the ABC Cares Foundation via the online portal. The ABC Florida East Coast chapter and the ABC Cares Foundation Inc. are committed to assisting communities impacted by Hurricanes Helene and Milton. 100% of donations made to the ABC Cares Foundation—an IRS 501(c)(3)—for this purpose will be restricted, directly supporting regional needs, and are 100% tax deductible. Donate to the American Red Cross through ABC’s donation portal. Your Red Cross disaster relief gift will help people whose lives have been upended by wildfires, storms, floods and countless other crises. This custom website tracks donations by the ABC community and can be dedicated to a friend or loved one. Donate Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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