Cambridge Massachusetts Building Expert Directory

Saved By The Statute: The Economic Loss Doctrine Does Not Bar Claims Under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law

May 10, 2021 — Gus Sara - The Subrogation Strategist
In Earl v. NVR, Inc., No. 20-2109, 2021 U.S. App. LEXIS 6451, the U.S. Court of Appeals for the Third Circuit (Third Circuit) considered whether, under Pennsylvania law, the plaintiff’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) claims against the builder of her home were barred by the economic loss doctrine. The UTPCPL is a Pennsylvania statute that prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” 73 Pa. Stat. Ann. § 201-3. The Third Circuit previously addressed the impact of the economic loss doctrine on UTPCPL claims in Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002). In Werwinski, the court held that the plaintiff’s UTPCPL claim was barred by the economic loss doctrine. The Court of Appeals overturned its decision in Werwinski and held that the economic loss doctrine does not bar UTPCPL claims since such claims are statutory, and not based in tort. In Earl, the plaintiff, Lisa Earl, entered into an agreement with defendant NVR, Inc. (NVR) for the construction and sale of a home in Allegheny County, Pennsylvania. Ms. Earl learned of the home through NVR’s marketing, which described the home as containing “quality architecture, timeless design, and beautiful finishes.” Ms. Earl alleged that during the construction of the home, she had further discussions with agents of NVR, who made representations that the home would be constructed in a good and workmanlike manner and that any deficiencies noted by Ms. Earl would be remedied. The defendant also assured Ms. Earl that the home would be constructed in accordance with relevant building codes and industry standards. After moving into the home, Ms. Earl discovered several material defects in the construction. She provided notice of these defects to NVR, but NVR’s attempts to repair some of the defects were inadequate. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Can an App Renovate a Neighborhood?

August 10, 2021 — Patrick Sisson - Bloomberg
On a sleepy stretch of West Jefferson Boulevard not far from downtown Los Angeles, cars typically speed past blocks of old warehouses and blank retail facades for destinations elsewhere. But slow down, hit the sidewalk and peek into and around a few buildings, and you’ll see the telltale signs of renovation: sandblasted walls, new windows, work crews and exposed wood beams. In an expansive brick building that once housed a child-care center before reverting to a warehouse, an inside-out renovation for a future food hall has stripped the wooden ceiling down to gorgeous bow trusses, sunlight filtering through the gaps and lighting up a floor of dirt filled with tracks from heavy machinery. This string of commercial development, 20 buildings in total, isn’t a typical project, nor does it rely on traditional sources of financing. A clue can be found on the white and orange signs above a handful of buildings between La Brea Avenue and Crenshaw Boulevard, beckoning potential tenants to call Fundrise for leasing opportunities for built-to-suit office/retail. Read the court decision
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Reprinted courtesy of Patrick Sisson, Bloomberg

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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Governor Bob Ferguson’s Recent Executive Orders – A Positive Sign for Washington’s Construction Industry

January 21, 2025 — Ryan Sternoff & Trygve Groh - Ahlers Cressman & Sleight
On January 15th, in his first act as Washington’s Governor, Bob Ferguson signed three executive orders, two of which may have a direct impact by removing some of the “red tape” that stifles Washington’s construction industry. This appears to be a positive sign that the Governor’s office is focused on pragmatic action, rather than partisan politics. Executive Order 25-02 is entitled “Assessing Regulatory Efficiency and Addressing Washington’s Affordable Housing Crisis” and directs all executive and small cabinet agencies (collectively, “State Agencies”) to review their rules and regulations and prepare a report for the Governor’s Office that identifies rules or regulations that impact the construction of new housing. The reports will also identify rules or regulations that are no longer necessary and can be rescinded, rules or regulations that can be amended to speed up housing construction. The reports will include descriptions of proposed amendments to such rules and regulations. The reports must be provided to the Governor’s Office within sixty days. Read the court decision
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Reprinted courtesy of Ryan Sternoff, Ahlers Cressman & Sleight
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com

What Construction Contractors Should Know About the California Government Claims Act

May 28, 2024 — Garret Murai - California Construction Law Blog
If you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity. What types of claims does the Government Claims Act apply to? The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Construction Lien Waiver Provisions Contractors Should Be Using

January 06, 2020 — Jason Lambert - Construction Executive
It is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin. Additional Releases A typical lien release is going to release any liens and right to claim liens on the subject property. But a lien waiver can also include releases of any claims against surety bonds, other statutory rights or claims, and at its broadest, claims against the paying party. One example of a provision that could help accomplish this is a release of “any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights.” Broad release language can also be used to effectively preclude any claims arising prior to the date of the release. Payment Representations and Warranties A typical lien release has no representations or warranties about payment to subcontractors or material suppliers of a lower tier. But contractors can include language requiring the company receiving payment to represent and warrant that all subcontractors of a lower tier have been paid or will be paid within a certain timeframe using the funds provided and that these are material representations and inducements into providing payment. On a related note, if the contract requires subcontractors to provide lien releases from lower tier subcontractors in addition to their own release when seeking payment, contractors can require the sub-subcontractor releases to include representations that they have been paid by the subcontractor to try and tie up payment loose ends all around. Reprinted courtesy of Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Lambert may be contacted at jason.lambert@nelsonmullins.com

Alabama Limits Duty to Defend for Construction Defects

October 10, 2013 — CDJ STAFF
While supreme courts in several states have expanded what is covered under a commercial general liability policy, Alabama has bucked the trend. Martha P. Brown and David L. Brown discuss this in a post on the site of their firm, Nelson Levine de Luca & Hamilton. They note that in a recent case, Owners Insurance Company v. Jim Carr Homebuilders, “the court held that liability for defective construction resulting in water intrusion damage to otherwise properly constructed component parts is not covered under a general contractor’s commercial general liability (CGL) policy because such damages are not caused by an ‘occurrence.’” The background of Owners v. Jim Carr was that the work of the subcontractors was found not only to be defective, but responsible for damage to correctly performed work. The court held, however, that it was all part of the same project. The court “distinguished the present case from a situation where the insured’s work results in damages to other property outside the scope of the insured’s work,” which they noted could be covered under a CGL policy. Read the court decision
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Delaware “occurrence” and exclusions j(5) and j(6)

June 10, 2011 — CDCoverage.com

In Goodville Mut. Cas. Co. v. Baldo, No. 09-338 (D. Del. June 2, 2011), claimants condominium association and unit owners sued project developer Rehoboth and general contractor Capano seeking damages because of moisture penetration property damage to common elements and individual units resulting from construction defects. Rehoboth and Capano filed a third party complaint against insured property manager Baldo alleging that, if Rehoboth and Capano were liable to claimants, Baldo was also liable because of Baldo’s failure to properly manage, maintain, and repair the property