FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Motion to Dismiss Insurer's Counterclaim for Construction Defects Is Granted

June 29, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the insured's motion to dismiss the insurer's counterclaim arising out of construction defects. Centrex Homes v. Zurich Specialties London Limited, et al., 2017 U.S. Dist. LEXIS 77212 (D. Nev. May 19, 2017). Centrex, the general contractor, was sued by homeowners in a residential development known as Liberty Hill Estates. The suit alleged that defective work had been performed by Centrex's subcontractors, one of which was Valley Concrete Company, Inc. The insurer had issued a policy to Valley and Centrex was an additional insured. The insurer agreed to defend, but only paid a portion of the defense fees and costs because the policy only covered Centrex as to liability arising from Valley's work. The insurer refused to pay defense costs incurred prior to March 28, 2012 the date of notice of claims arising from Valley's work. Centrex then filed suit against the insurer alleging breach of contract and bad faith. The insurer filed a counterclaim seeking a declaration that it had no duty to defend. The insurer claimed that Centrex failed to cooperate by unilaterally switching counsel without prior notification to the insurer. This deprived the insurer of the right to control the defense and discharged the insurer's obligations under the policy. Centrex moved to dismiss the counterclaim. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Florida trigger

May 18, 2011 — CDCoverage.com

In Johnson-Graham-Malone, Inc. v. Austwood Enterprises, Inc., No. 16-2009-CA-005750-XXXX-MA (Fla. 4th Cir. Ct. Duval County, April 29, 2011), insured JGM was the general contractor for an apartment project completed in 1998. In 2007, the project owner sued JGM seeking damages for defective construction resulting in moisture penetration property damage. JGM tendered its defense to Amerisure. Amerisure denied a defense. JGM defended and settled the underlying suit and then filed suit against Amerisure seeking recovery of defense and settlement costs. The trial court granted JGM’s motion for partial summary judgment. The court first addressed Amerisure’s duty to defend. Applying Florida law, the court held that, although the underlying complaint alleged that the property damage was not discovered until after expiration of the Amerisure policies



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Some Work Cannot be Included in a Miller Act Claim

June 28, 2021 — Christopher G. Hill - Construction Law Musings
The Miller Act is close to my heart here at Construction Law Musings. Payment bond claims under the Miller Act help protect subcontractors on construction projects where the national government or its agencies are the owners of the property and therefore mechanic’s liens are unavailable. Even where you follow the proper claims process under this statute, the question remains as to what sorts of costs can be included in the claim. A recent case out of the Eastern District of Virginia federal court in Alexandria, VA gives some insight into the limits of claims under the federal Miller Act. In Dickson v Forney Enterprises, Inc. et. al., the Court looked at the question of whether costs of a project manager’s purely clerical duties can be included and correspondingly whether performing those duties can extend the relevant one-year limitations period for filing suit. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Presenting a “Total Time” Delay Claim Is Not Sufficient

September 12, 2022 — David Adelstein - Florida Construction Legal Updates
When presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss. In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim. 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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Subcontractor Strength Will Drive Industry’s Ability to Meet Demand, Overcome Challenges

October 10, 2022 — Anwar Ghauche - Construction Executive
Owners, developers and general contractors get a lot of notoriety for construction projects, especially in these infrastructure-focused times. However, the subcontractor is truly the one under the microscope, as this group requires the most care and attention to ensure the owners and operators are able to meet accelerating demand and public expectations. The challenges in the current environment are many. Inflation and supply chain disruptions are highly detrimental to specialty trades in the mechanical, electrical, plumbing, drywall and other areas. Reports show that the construction industry, in particular, has seen an increase of over 20% in the cost of supplies and building materials in the last year alone and, in some cases, over 90% since the start of the pandemic. While these costs are passed along to the owner, the subcontractor still retains significant cash flow risk. This truth is amplified in a volatile market. As if the cost was not enough, equipment and material shortages coupled with rising interest rates only compound the problem—and tenfold for small businesses. Subcontractors are likely to feel the greatest pressure from supply-related issues. Inflation combined with supply chain shortages require subcontractors to prepare earlier for projects and, when possible, purchase materials upfront. However, the consequence of this preliminary preparation equates to further strains on cash flow. In an effort to remain aligned on schedules and budgets, subcontractors frequently buy all of a project’s materials as soon as a contract is signed—if not before. Reprinted courtesy of Anwar Ghauche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Wildfires Threaten to Make Home Insurance Unaffordable

January 10, 2018 — Christopher Flavelle – Bloomberg
More frequent and intense wildfires are making it harder for homeowners to find and keep insurance in California, a state regulator warned Thursday. Read the court decision
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Reprinted courtesy of Christopher Flavelle, Bloomberg

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Home Prices Up in Metro Regions

October 30, 2013 — CDJ STAFF
Housing prices in the largest metro regions beat expectations, rising 12.8% in August as compared to a year before. Analysts were expecting weaker increases; instead these have been the fastest increases in seven years. The metropolitan area with the largest increase was Las Vegas, where houses increased in price by 29.2%. Three California regions — San Francisco, Los Angeles, and San Diego — also saw increases of greater than 20%. Read the court decision
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Force Majeure Under the Coronavirus (COVID-19) Pandemic

March 08, 2021 — Lindsay T. Watkins - Ahlers Cressman & Sleight PLLC
As COVID-19 disrupts work and life as we know it, the question many contractors have is what protections are available against the inevitable project impacts and delays? Generally, construction contracts require a contractor to timely perform work until project completion or potentially face damages (liquidated or actual) and possible termination. When events occur, however, that are beyond our control (such as a national pandemic), it is important to review and understand what contract provisions or avenues are available for potential relief. 1. Review Your Contract For A Force Majeure Provision. A “force majeure” contract provision is commonly included in construction contracts, service agreements, purchase orders, etc. It typically covers events or conditions that can be neither anticipated nor controlled. These provisions, however, will vary greatly from contract to contract and may not include the language “force majeure” but rather may be included in general delay or impact clauses. For example, some common provisions include:

• Washington State Department of Transportation Clause (2018 Standard Specifications for Road, Bridge and Municipal Construction): The Contractor shall rebuild, repair, restore, and make good all damages to any portion of the permanent or temporary Work occurring before the Physical Completion Date and shall bear all the expense to do so, except damage to the permanent Work caused by: (a) acts of God, such as earthquake, floods, or other cataclysmic phenomenon of nature, or (b) acts of the public enemy or of governmental authorities; or (c) slides in cases where Section 2-03.3(11) is applicable; Provided, however, that these exceptions shall not apply should damages result from the Contractor’s failure to take reasonable precautions or to exercise sound engineering and construction practices in conducting the Work.

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Reprinted courtesy of Lindsay T. Watkins, Ahlers Cressman & Sleight PLLC
Ms. Watkins may be contacted at Lindsay.Watkins@acslawyers.com

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