FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Guarantor’s Liability on Partially Secured Debts – The Impacts of Pay Down Provisions in Serpanok Construction Inc. v. Point Ruston, LLC et al.

October 24, 2021 — Margarita Kutsin - Ahlers Cressman & Sleight
In Serpanok Construction, Inc. v. Point Ruston, LLC, Division Two of the Washington Court of Appeals decided an issue of first impression in Washington—whether a guarantor of a partially secured debt remains liable until the last dollar of the entire debt is paid off. After examining cases from other jurisdictions, the court held that that a guarantor is liable until the underlying debt is paid in full unless the agreement contains an express pay down provision. A pay down provision sets forth the guarantor’s right to reduce its obligation to the extent of any payment toward the debt, and it establishes that the guaranty applies only until an amount equivalent to the guaranteed amount is paid off. The Serpanok decision addressed several other issues, but the published portion of this part-published case focused on whether an entity involved in a real estate development, Point Ruston LLC, was discharged from its guaranty obligation following a foreclosure sale where the proceeds did not cover the entire debt owed to a subcontractor. Point Ruston LLC, Point Ruston Phase II LLC (“Phase II”), and Century Condominiums (“Century”) were affiliated entities (collectively “Point Ruston parties”) that constructed retail and residential structures on a site in Point Ruston. Serpanok Construction Inc. (“Serpanok”) entered into subcontract agreements with Phase II and Century to perform concrete and steel work on a parking garage and movie theater for the project. Point Ruston LLC was not a party to either subcontract. Read the court decision
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Reprinted courtesy of Margarita Kutsin, Ahlers Cressman & Sleight
Ms. Kutsin may be contacted at margarita.kutsin@acslawyers.com

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Force Majeure Recommendations

August 15, 2022 — Denise Motta - Gordon & Rees Construction Law Blog
This Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by a force majeure event. Contract Protection Tips: A force majeure event is defined as an unforeseeable circumstance that prevents someone from fulfilling a contract. Because many events arising on a construction project could be arguably unforeseen, it is imperative that the contract contain a Force Majeure provision. Examine all contracts for the applicable Force Majeure provision. Look for a clause like this:

§ 8.3.3 Any failure or omission by Owner or Contractor in performance of its obligation shall not be deemed a breach or create any liability for damages or other relief (other than additional time) if it arises from any cause beyond the reasonable control of such party, including, without limitation, acts of God, floods, fire, explosions, storms, earthquakes, acts of public enemy, war, terrorism, rebellion, insurrection, riot, sabotage, invasion, epidemic, quarantine, strikes, lockouts, labor disputes or other industrial disturbances, or any order or action by any governmental agency, or causes of similar nature.

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Reprinted courtesy of Denise Motta, Gordon Rees Scully Mansukhani, LLP
Ms. Motta may be contacted at dmotta@grsm.com

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Treasure Island Sues Beach Trail Designer over Concrete Defects

September 10, 2014 — Beverley BevenFlorez-CDJ STAFF
The city of Treasure Island, Florida “has filed a lawsuit against Graham Landscape Design of St. Petersburg and Coastal Technology Corp. of Vero Beach for failing to properly design the 1-mile trail along the city's beachfront, which has hundreds of cracks in its concrete surface,” reported the Tampa Bay Times. "The city has been unable to resolve the construction defects of the Central Beach Trail outside of the litigation process," City Attorney Maura Kiefer said to the Tampa Bay Times. Cracks allegedly began appearing on the $1.2 million dollar trail soon after the project was concluded (March 2013). Treasure Island “submitted a performance bond claim and notified insurance companies representing Graham Landscape of the problem.” Consultants hired by Phil Graham IV, the owner of the design company, determined that the cracking was caused by “a combination of problems in the design, construction and composition of materials.” Read the court decision
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Reprinted courtesy of

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Women Make Slow Entry into Building Trades

December 04, 2013 — CDJ STAFF
In the next seven years, about 200,000 carpenters will be added to workforce, but few of those are likely to be women. Sylas Demello, an electrical apprentice noted that it isn’t “made clear for women in high school to say, ‘hey, this is an option for you.’” Tiffany Bluemle is trying to do something about that. She runs Vermont Works for Women, which trains women for jobs in which there are few women, including the building trades. She notes that “seventy-five percent of owners say they face labor shortages.” Amy Judd is now one of those owners. Fifteen years ago, failing to find a teaching job, she started working as a carpenter. “It had never occurred to me that I would want to be a carpenter,” she said. Her firm employs eight people, half of whom are women. Read the court decision
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Reprinted courtesy of

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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

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DC Circuit Rejects Challenge to EPA’s CERCLA Decision Regarding Hardrock Mining Industry

September 23, 2019 — Anthony B. Cavender - Gravel2Gavel
In a decision that will likely be welcomed by the electrical power, chemical manufacturing, and petroleum and coal products manufacturing industries, on July 19, 2019, the U.S. Court of Appeals for the District of Columbia Circuit held in the case of Idaho Conservation League et al., v. Wheeler, that EPA acted reasonably in deciding not to issue CERCLA financial responsibility regulations for the hardrock mining industry. CERCLA (a.k.a., Superfund) was enacted in 1980 and amended in 1986, and Section 108(b) of CERCLA provides that EPA shall promulgate requirements that classes of facilities establish and maintain evidence of financial responsibility “consistent with the degree and duration of risk” associated with the production, transportation, treatment, storage or disposal of hazardous substances. However, no action was taken to implement Section 108(b) until 2009, and then only as the result of litigation challenging EPA’s failure to act. EPA and the petitioners agreed to a schedule by which the agency would propose financial responsibility rules for the hardrock mining industry—which was the initial class of industry facilities selected for the possible application of these rules—and the DC Circuit approved this schedule in 2016, which contained the court’s caveat that EPA retained the discretion not to issue any rule at the conclusion of the rulemaking. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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The Louvre Abu Dhabi’s Mega-Structure Domed Roof Completed

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
The final part of the Louvre Abu Dhabi’s 180-metres (almost 600 feet) long domed roof was put into place on Monday, according to Arabian Business. The 12,000 tonne dome is “made up of a steel structure, weighing 7,000 tonnes (almost as much as the Eiffel Tower), and a further 5,000 tonnes of aluminum cladding.” Carlos Antonio-Wakim, executive director of development at master developers TDIC, stated (as quoted by Arabian Business) that construction was on schedule for the opening of the museum, which is on Saadiyat Island, by the end of next year. “The concrete works under the dome is all done, so we have all the galleries up and fit-out of those galleries has already begun,” Antonio-Wakim told Arabian Business. “There is also a lot of electromechanical works. A complex project like this requires a lot of mechanical and electrical coordination.” Read the court decision
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Reprinted courtesy of

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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

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