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    Not So Unambiguous: California Court of Appeal Finds Coverage for Additional Insured

    Repair Cost Exceeding Actual Cash Value Does Not Establish “Total Loss” Under Fire Insurance Policy

    Is There a Conflict of Interest When a CD Defense Attorney Becomes Coverage Counsel Post-Litigation?

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    Build, Baby, Build. But Not Like This, Britain.

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    FAIRFIELD CONNECTICUT BUILDING EXPERT
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    The Fairfield, Connecticut Building Expert Group at BHA, leverages from the experience gained through more than 7,000 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Drawing from this considerable body of experience, BHA provides construction related trial support and expert services to Fairfield's most recognized construction litigation practitioners, commercial general liability carriers, owners, construction practice groups, as well as a variety of state and local government agencies.

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    Fairfield, Connecticut

    DoD Will Require New Cybersecurity Standards in 2020: Could Other Agencies Be Next?

    September 09, 2019 —
    The Department of Defense (DoD) has announced a new five-tier standard for cybersecurity certification, which it calls the Cybersecurity Maturity Model Certification, or “CMMC”. Taking an unusual approach to informing the industry, the DoD has provided only limited information about the new standard through its website and a “road tour” led by the newly-appointed head of the DoD’s Chief Information Security Office (CISO), Ms. Katie Arrington. During her recent presentation at the National Institute of Standards and Technology’s (NIST’s) Information Security and Privacy Advisory Board (ISPAB) meeting, on August 8, 2019, Ms. Arrington revealed several new details about the requirements. Outlined below are the most significant facts from that presentation and the DoD’s website:
    All companies doing business with DoD (and all tiers of subcontractors) will need to obtain CMMC certifications.
    DoD will require the new certifications from all contractors (including suppliers and subcontractors) that are performing under a DoD contract. Even contractors that do not process or handle Controlled Unclassified Information (CUI) must obtain CMMCs. Read the court decision
    Read the full story...
    Reprinted courtesy of Alexander Gorelik, Smith Currie
    Mr. Gorelik may be contacted at agorelik@smithcurrie.com

    Sewage Flowing in London’s River Thames Draws Green Bond Demand

    April 04, 2022 —
    The green bond market just got one of its biggest challenges yet -- cleaning up London’s River Thames. A sale of the notes aims to help to fund upgrades to the city’s Victorian-era sewers, as population growth in London heaps increasing pressure on them. Designed to serve about 4 million people, the sewers instead handle waste from more than double that number, leading to multiple sewage overflows every year. Bazalgette Finance Plc sold 300 million pounds ($400 million) of green bonds Thursday to fund construction of a 25-kilometer tunnel to prevent millions of tonnes of sewage overflowing into the river. The 12-year notes were priced at 130 basis points above U.K. gilts, drawing investor orders of more than four times the amount on offer, according to a person with knowledge of the sale, who asked not to be named. The bond proceeds will be given to Bazalgette Tunnel Ltd for the ongoing construction of the Thames Tideway Tunnel, which is expected to be completed in 2023, according to the Tideway website. The 66 meter-deep tunnel is more than seven meters wide and will cost an estimated 4.2 billion pounds ($5.6 billion) at completion, according to an investor presentation seen by Bloomberg News. Read the court decision
    Read the full story...
    Reprinted courtesy of Ronan Martin, Bloomberg

    Consider Manner In Which Loan Agreement (Promissory Note) Is Drafted

    March 02, 2020 —
    Consider who you loan money too and, perhaps more importantly, the manner in which your loan agreements (promissory notes) are drafted. By way of example, in what appears to be a failed construction project in Conrad FLB Management, LLC v. Diamond Blue International, Inc., 44 Fla. L. Weekly D2897a (Fla. 3d DCA 2019), a group of lenders lent money to a limited liability company (“Company”) in connection with the development of a project. Promissory notes were executed by Company and executed by its managing member as a representative of Company, and not in a personal capacity. Company, however, did not own the project. Rather, an affiliated entity owned the project (“Affiliated Entity”). Affiliated Entity had the same managing member as Company. Once the Company received the loan proceeds, it transferred the money to Affiliated Entity, presumably for purposes of the project. The loans were not repaid and the lenders sued Company, Affiliated Entity, and its managing member, in a personal capacity. The lenders claimed they were all jointly liable under the promissory notes. Although the trial court granted summary judgment in favor of the lenders, this was reversed on appeal as to the Affiliated Entity and the managing member because there was a factual issue as to whether they should be bound by the note executed on behalf of Company. First, Florida Statute s. 673.4011(1) provides that “a person is not liable on a promissory note unless either (a) the person signed the note, or (b) the person is represented by an agent who signed the note.” Conrad FLB Management, LLC, supra. Affiliated Entity is a separate entity and did not execute the note. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    Time to Update Your Virginia Mechanic’s Lien Forms (July 1, 2019)

    May 01, 2019 —
    In a few of my recent posts here at Construction Law Musings, I’ve discussed a few bills that were considered and/or passed in the General Assembly this year. One of the bills is one close to my heart and a subject much discussed here, namely mechanic’s liens. HB2409 passed both houses of the General Assembly and has been signed by the Governor. This bill reconciled the language found in Virginia Code Sec. 43-4 with the various forms for general contractor, subcontractor and sub-subcontractor/supplier forms found in later sections of the code. As you will see if you download the .pdf of the bill as signed, this involved some tweaks to 43-4 and some updates to the mechanic’s lien forms that are in the code. The recent Desai case from the Virginia Supreme Court made it clear that such action was necessary. Read the court decision
    Read the full story...
    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrissghill@constructionlawva.com

    The Business of Engineering: An Interview with Matthew Loos

    July 15, 2019 —
    Matthew Loos is an experienced project manager in the civil engineering industry. He works as a project engineer at Jones|Carter in Fort Worth, Texas. In this interview, we discuss Matt’s new book, The Business of Engineering. It is not very common that an engineer writes a non-technical book. What inspired you to do so? Have you ever gotten an idea stuck in your head that you just couldn’t let go of? A time when you couldn’t go to sleep because the idea was consistently begging for your attention? That’s what happened to me. The idea for this book hits me right before bed, as most good ideas do. I couldn’t go to sleep after the idea struck me. I spent half of the night writing the chapters of this book in my mind. I had been thinking about the idea of engineering and how it relates to other career fields, even the non-technical ones. I was disenchanted with the trifling number of classes I took that prepared me for the business world. These were the initial thoughts that eventually led me down the road into thinking about engineering as a profession going forward. Read the court decision
    Read the full story...
    Reprinted courtesy of Aarni Heiskanen, AEC Business
    Mr. Heiskanen may be contacted at aec-business@aepartners.fi

    Adobe Opens New Office Tower and Pledges No Companywide Layoffs in 2023

    April 18, 2023 —
    Adobe Inc., breaking ranks with an industry cutting costs and laying off workers, has opened a new office tower in its home city, adding new capacity for staff and pledging no companywide job cuts in 2023. The Founders Tower is an 18-story, 1.25 million-square-foot shimmering glass addition to San Jose, California, a city Adobe has called home since the early ’90s. The software company’s fourth tower has capacity for 3,000 employee workstations, Adobe said Wednesday in a statement. Despite opening a new office with amenities, the company remains supportive of hybrid and flexible work arrangements. “We’re actually committed to continuing to grow here,” Adobe Chief People Officer Gloria Chen said in an interview with Bloomberg Television to air Wednesday. “We are committed to not having companywide layoffs.” Reprinted courtesy of Edward Ludlow, Bloomberg and Brody Ford, Bloomberg Read the court decision
    Read the full story...
    Reprinted courtesy of

    Court Holds That One-Year SOL Applies to Disgorgement Claims Under B&P Section 7031

    November 23, 2020 —
    We’ve talked before about Business and Professions Code section 7031 which courts have referred to as “harsh[ ],” “unjust[ ]” and even “draconian.” Under Section 7031, a contractor performing work requiring a contractor’s license, but who doesn’t: (1) is prohibited from suing to recover payment for work performed; and (2) is required to disgorge all money paid by the project owner for work performed. This is true even if the project owner knew that the contractor was unlicensed, the contractor was only unlicensed during part of the time it performed work requiring a license, and even if the work performed by the contractor was free of defects. In short, it’s the nuclear bomb of remedies against a contractor. However, until now, no court has addressed when a project owner is permitted to raise a Business and Professions Code section 7031 claim against a contractor. In the next case, Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, Inc., Case No B297247 (August 26, 2020), the 2nd District Court Appeal finally answers this question. Read the court decision
    Read the full story...
    Reprinted courtesy of Garret Murai, Nomos LLP
    Mr. Murai may be contacted at gmurai@nomosllp.com

    One Colorado Court Allows Negligence Claim by General Contractor Against Subcontractor

    December 20, 2012 —
    Judge Paul King of the Douglas County District Court recently confirmed that subcontractors in residential construction owe an independent duty, separate and apart from any contractual duties, to act without negligence in the construction of a home in Colorado. See Order, dated September 7, 2010, Sunoo v. Hickory Homes, Inc. et al., Case No. 2007CV1866; see also Cosmopolitan Homes, Inc. v. Weller, 663 P.2d 1041 (Colo. 1983); A.C. Excavating v. Yacht Club II Homeowners Ass’n, Inc., 114 P.3d 862 (Colo. 2005). He also verified that the holding in the B.R.W. Inc. v. Dufficy & Sons, Inc., 99 P.3d 66 (Colo. 2004)[1] case does not prohibit general contractors, such as Hickory Homes, from enforcing a subcontractor’s independent duty to act without negligence in the construction of a home. Read the court decision
    Read the full story...
    Reprinted courtesy of Heather Anderson, Higgins, Hopkins, McLain & Roswell, LLC.
    Ms. Anderson can be contacted at anderson@hhmrlaw.com