CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Class Action Certification by Association for “Matters of Common Interest”

August 24, 2020 — David Adelstein - Florida Construction Legal Updates
Associations have authority to pursue as a class, on behalf of all of their respective members, lawsuits “concerning members of common interest to the members.” Fla. R. Civ. P. 1.221. This includes, but is not limited to, the common property or the areas in which the association is responsible. But, what about matters or elements for which the association is not responsible or does not own? For example, issues or damages relative to a specific unit or owner that are prevalent throughout? The Third District Court of Appeal addressed this question in Allied Tube and Conduit Corp. v. Latitude on the River Condominium Association, Inc., 45 Fla. L. Weekly D1518a (Fla. 3d DCA 2020) when in affirmed a class certification by a condominium association relating to the removal and replacement of the condominium building’s defective fire sprinkler system. In affirming the class certification by the condominium association, the Third District maintained:

Rule 1.221 expressly authorizes condominium associations to “institute, maintain, settle, or appeal actions or hearings in its name on behalf of all association members concerning matters of common interest to the members.” “[A]s to controversies affecting the matters of common interest . . ., the condominium association, without more, should be construed to represent the class composed of its members as a matter of law.” “[T]he common interest provision of the rule has been interpreted to permit a class action by the association for a construction defect located physically within a unit, rather than in the common elements, if the defect is prevalent throughout the building.” We, therefore, cannot say the trial court abused its discretion in finding that damages resulting from the replacement of the fire-sprinkler system throughout the building were a matter of common interest for purposes of certification at this stage of the litigation. Allied Tube and Conduit Corp, supra (internal citations omitted).

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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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Flushing Away Liability: What the Aqua Engineering Case Means for Contractors and Subcontractors

October 21, 2024 — Heather Zipperer - Colorado Construction Litigation Blog
The recent Town of Mancos v. Aqua Engineering case is an insightful example of how well written contracts and timely legal action can make all the difference in resolving disputes between municipalities, general contractors, and subcontractors. The ruling favored Aqua Engineering; a subcontractor that played a role in a wastewater treatment facility project gone wrong. The court’s decision highlighted key legal principles, including the economic loss rule and the importance of well-structured contracts in construction disputes. Whether you are a subcontractor looking to avoid undue liability or a general contractor seeking to ensure subcontractors shoulder their fair portion of responsibility, this case offers valuable lessons for all parties involved in construction projects. The Background: A Wastewater Project with Issues In 2008, the Town of Mancos, Colorado, hired Souder, Miller & Associates (“SMA”) to design a new wastewater treatment facility. SMA subcontracted Aqua Engineering to help implement a specific wastewater treatment system known as the Multi-Stage Activated Biological Process (“MSABP”). However, after construction, the facility never worked as expected. For years, the Town faced ongoing issues, and despite Aqua’s involvement in attempts to fix the problems, the facility remained dysfunctional. Read the court decision
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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

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So a Lawsuit Is on the Horizon…

August 10, 2021 — Sean Donoghue - Construction Executive
As certain as death and taxes, documents will need to be exchanged in the event of a lawsuit. Here is what to expect and a few tips for reducing costs and protecting the case. What Needs to Be Produced? Discovery is broad, but proportional to the needs (i.e., usually the dollar value) of the case. Cost reports, bid back up and scheduling information are often at the heart of damages issues in construction disputes. Thus, while it will depend on the nature of the dispute, these items will generally need to be produced. It is no secret that electronically stored information (ESI) can be a big part of discovery in litigation, particularly in a document intensive industry like construction. In addition to electronically stored project files, expect that the inboxes of employees who are close to the dispute will need to be searched. How many will depend on the size of the dispute and the number of players involved. Hard-drives and text messages of those employees may also be discoverable. Reprinted courtesy of Sean Donoghue, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Donoghue may be contacted at sdonoghue@eckertseamans.com

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Real Estate & Construction News Round-Up (09/21/22) – 3D Printing, Sustainable Design, and the Housing Market Correction

October 17, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The first 3D-printed home is under construction, construction contractors could face liability for not securing employee data, the housing market correction continues, and more.

• Sustainable home design has become key focus of builders and homeowners, helping reduce carbon emissions and other environmental impacts. (Kristi Waterworth, U.S.News)
• Construction contractors could face legal consequences for failing to manage employee data correctly. (Robyn Griggs Lawrence, Construction Dive)
• The home price correction continues to spread across the U.S., with an interactive map showcasing local housing markets that have been impacted. (Lance Lambert, Fortune)

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

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Bound by Group Builders, Federal District Court Finds No Occurrence

August 11, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home.  State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011).  The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence.  State Farm agreed to defend under a reservation of rights.



State Farm filed suit in federal court for declaratory relief.  Judge Mollway granted State Farm's motion for summary judgment.  Relying on the Hawaii Intermediate Court of Appeal's decision in Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010), Judge Mollway determined that the claims asserted in the underlying litigation arose from the contractor's alleged breach of contract.  Group Builders held that breach of contract claims based on allegations of shoddy performance were not covered under CGL policies.

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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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Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue

March 18, 2019 — David Adelstein - Florida Construction Legal Updates
The United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question. In Henry Schein, Inc., the contract at-issue provided: This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina. The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Prevent Costly Curb Box Damage Due on New Construction Projects

May 11, 2020 — Bob Welker - Construction Executive
For new construction projects in areas with acidic soils, keeping curb boxes in good working order is critical to avoid compromised water service, angry customers, and costly repair and replacement. Traditionally, a curb box is composed of a metal tube that connects the cast iron base to a cast iron lid/cap. It is necessary for water line repairs and shut off in case of flooding. Typically, they are buried six to eight feet below ground, beneath the frost line. Curb boxes are found on every water line that connects a building to a city water main. One major challenge is that many areas across the United States—including the East Coast, South, upper Midwest and Pacific Northwest—have acidic soil that rapidly corrodes cast iron infrastructure, including curb boxes. Soil with a pH of six or less is considered acidic. Reprinted courtesy of Bob Welker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Contractor Gets Benched After Failing to Pay Jury Fees

April 11, 2022 — Garret Murai - California Construction Law Blog
Trial by jury is a fundamental right under the U.S. and California Constitutions. However, to avail yourself of this right, you not only have to declare that in advance that you intend to try your case to a jury but post jury fees as well. In TriCoast Builders, Inc. v. Fonnegra, a contractor who failed to timely post jury fees, discovered on the day of trial that it waived the right to insist on a jury trial when the defendant pulled an “I gotcha” and waived his right to a jury trial. The TriCoast Case In May 2014, Nathaniel Fonnegra house was damaged by fire. The following month, Fonnegra entered into a construction contract with TriCoast Builders, Inc. to repair the property. Dissatisfied with the work, Fonnegra terminated the contract, and TriCoast in turn filed a complaint against Fonnegra for unpaid work. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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