FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Most Expensive Travel Construction Flops

September 03, 2014 — Beverley BevenFlorez-CDJ STAFF
Fox News recently showcased “the world’s biggest and most expensive travel flops,” which includes several construction woes. For instance, the $8.5 billion dollar Harmon Tower in Las Vegas was never completed, and is in the process of being demolished due to construction defects. Also mentioned is the cone-shaped Ryugyong Hotel in North Korea, which had planned to be the tallest hotel on earth with an opening to coincide with the 1989 World Festival of Youth and Students. First, construction delays were blamed on a lack of raw materials, and then the development was passed to an Egyptian company. However, today, over 20 years later, and the hotel has still not been completed. The Berlin Brandenburg Airport made the list. It was supposed to have been completed by 2010, but managers have moved it to 2015, while “insiders hint that the date will be closer to 2019.” Alleged problems include “poor construction and planning—not to mention corruption,” reported Fox News. Read the court decision
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Denver Officials Clamor for State Construction Defect Law

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal reported that a construction defects law to encourage more condo development in Colorado was discussed during the Denver Metro Chamber of Commerce’s annual State of the City event. Colorado Senator Jessie Ulibarri in attendance stated that the construction defect bill that he had sponsored earlier this year was defeated partly due to timing, and he plans on introducing a new bill early 2015. Denver Mayor Michael Hancock spoke in favor of such a bill, alleging that nearly all developers avoid building multifamily units for fear of potential litigation. “We are being hamstrung by this law in the state of Colorado.” However, the Denver Business Journal reported that those who favor status quo, including homeowners association industry groups and attorneys, claim that “changing the law will open the door to poor work on the part of developers and builders, leaving condo buyers holding the bag for repairs when something goes wrong in their home.” Read the court decision
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Real Estate & Construction News Roundup (10/16/24) – Chevron Ruling’s Impact on Construction Industry, New Kind of Public Housing and Policy Recommendations from Sustainable Building Groups

November 11, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, Hurricane Helene affects infrastructure, California Gov. Gavin Newsom signs bills aimed at renter protections, Federal Reserve kick-off rate-easing cycle, and more!

• Hurricane Helene illustrates how communities and infrastructure across the U.S. are unprepared for the extreme weather driven by climate change. (Julie Strupp, Construction Dive)
• The Supreme Court’s June Chevron ruling will likely have a seismic impact on laws that pertain to the construction industry. (Julie Strupp, Construction Dive)
• California Gov. Gavin Newsom signed three bills changing renter protection practices in the state last month including new requirements for security deposit deductions and restrictions on certain fees. (Mary Salmonsen, Multifamily Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Ensuing Loss Provision Found Ambiguous

April 25, 2012 — Tred R. Eyerly - Insurance Law Hawaii

After the insurer denied coverage in a homeowner’s policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous.Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).



After purchasing a home from the sellers, the insureds noticed problems with the deck of the home. Massive cracking appeared, causing lifting and leaking on the deck and water running through the exterior foundation wall into the home. There was also damage to the roof and crawlspace.



The insureds had a homeowner’s policy with American Family, which covered accidental direct physical loss to property described in the policy unless the loss was excluded. They requested coverage for "conditions, defects and damages." American Family denied coverage because wear and tear, as well as damage to foundations, floors and roofs were excluded. The policy did provide coverage, however, for "any resulting loss to property described . . . above, not excluded or excepted in this policy.



When coverage was denied, the insureds sued American Family.



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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Difference Between a Novation And A Modification to a Contract

May 10, 2022 — David Adelstein - Florida Construction Legal Updates
In contract law, there are two doctrines that have similarities but are indeed different. These doctrines are known as novation and modification. There are times you may want to make arguments relative to these doctrines because they are important for your theory of the dispute. Thus, you want to make sure you understand them so you can properly plead and prove the required elements to substantiate the basis of the theories. Understanding the elements will help you understand the evidence you will need to best prove your factual theories. A novation is essentially substituting a new contract for an old contract.

“‘A novation is a mutual agreement between the parties for the discharge of a valid existing obligation by the substitution of a new valid obligation.’” Thompson v. Jared Kane Co., Inc., 872 So.2d 356, 361 (Fla. 2d DCA 2004) (citation omitted). To prove a novation, a party must prove four elements: “(1) the existence of a previously valid contract; (2) the agreement of the parties to cancel the first contract; (3) the agreement of the parties that the second contract replace the first; and (4) the validity of the second contract.” Id. at 61. Whether the parties consented to the substitute contract can be implied from the factual circumstances. Id.

Parties are more familiar with a modification because it is not uncommon that parties may agree to modify contractual terms. The contract remains in effect but certain terms or obligations are modified. For example, a change order to a contract is a modification. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured’s Expectations

November 21, 2018 — Brian Margolies - TLSS Insurance Law Blog
In its recent decision in Frederick Mut. Ins. Co. v. Hall, 2018 U.S. App. LEXIS 31666 (3d Cir. Nov. 8, 2018), the United States Court of Appeals for the Third Circuit had occasion to consider Pennsylvania’s doctrine of reasonable expectations in the context of a faulty workmanship claim. Hallstone procured a general liability policy from Frederick Mutual to insure its masonry operations. Notably, when purchasing the policy through an insurance broker, Hallstone’s principal stated that he wanted the “maximum” “soup to nuts” coverage for his company. Hallstone was later sued by a customer for alleged defects in its masonry work. While Frederick agreed to provide a defense, it also commenced a lawsuit seeking a judicial declaration that its policy excluded coverage for faulty workmanship. The district court agreed that the business risk exclusions applied, but nevertheless found in favor of Hallstone based on the argument that Hallstone had a reasonable expectation that when applying for an insurance policy affording “soup to nuts” coverage, it this would include coverage for faulty workmanship claims. Read the court decision
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Reprinted courtesy of Brian Margolies, Traub Lieberman Straus & Shrewsberry LLP
Mr. Margolies may be contacted at bmargolies@tlsslaw.com

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The Show Must Go On: Shuttered Venues Operators Grant Provides Lifeline for Live Music and Theater Venues

March 29, 2021 — David Rao - Snell & Wilmer Real Estate Litigation Blog
Although it’s been a tough twelve months for many live music venues, movie theaters, and performing arts organizations, help may finally be around the corner. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law, creating a $15 billion fund for grants to shuttered venues to be administered by the Small Business Administration’s (“SBA”) Office of Disaster Assistance. The law states that Shuttered Venues Operator Grants (“SVOGs”) will be made available to the following entities and individuals:

1. Live venue operators or promoters;
2. Theatrical producers;
3. Live performing arts organization operators;
4. Relevant museum operators, zoos, and aquariums which meet specific criteria;
5. Movie theater operators;
6. Talent representatives; and
7. Each business entity owned by an eligible entity that also meets the eligibility requirements.

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Reprinted courtesy of David Rao, Snell & Wilmer
Mr. Rao may be contacted at drao@swlaw.com

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Include Materials Price Escalation Clauses in Construction Clauses

December 26, 2022 — Robert Alfert Jr. - Construction Executive
The construction sector has been in a bull market for an unprecedented period of time. With the novel impacts from the coronavirus—and all the associated side effects, such as government moratoria, shipping delays and materials availability—we are now in a market of extreme volatility in pricing, inflation and increasing capital finance rates. And yet the construction sector continues to plow forward despite uncertainty, producing critical infrastructure, and much necessary housing, among other projects. The signs are that this trend will continue at least through Q1 of 2023, and likely beyond that, especially when you factor into the equation the many billions of dollars being placed into the market through the Bipartisan Infrastructure Law. It is not surprising, therefore, that the number one issue in construction contracts in 2022 is how parties handle inflation and materials cost escalations in existing contracts and in the negotiations for new contracts. There is no other issue more heavily negotiated, often disputed and hotly debated in the construction sector today. Reprinted courtesy of Robert Alfert Jr., Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Alfert may be contacted at robert.alfert@nelsonmullins.com

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