FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.

January 31, 2018 — Sean Minahan – Construction Contract Advisor
According to a quick Google search the term “holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client. Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently, leaving our client holding the bag. Read the court decision
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Reprinted courtesy of Sean Minaham, Lamson, Dugan and Murrary, LLP
Mr. Minahan may be contacted at sminahan@ldmlaw.com

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Crossrail Audit Blames Busted Budget and Schedule on Mismanagement

August 13, 2019 — Peter Reina - Engineering News-Record
In a new report on London’s Crossrail, the U.K. National Audit Office says the beleaguered transportation project is around two years late and nearly 20% over budget because of poor management. The NAO, charged by Parliament with monitoring public spending, pointed to ill-conceived “aspirational” plans that proved to be unfit for the technologically challenging and vast program when things went wrong. Read the court decision
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Reprinted courtesy of Peter Reina, ENR

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“Freelance Isn’t Free” New Regulations Adopted in New York City Requiring Written Contracts with Independent Contractors

June 15, 2017 — Kevin J. O'Connor - Peckar & Abramson. P.C.
Attacks on employers for alleged misclassification of workers—particularly independent contractors—are continuing unabated, and the risk of liability for employers operating in New York City just increased. New York City has just adopted sweeping regulations requiring written contracts with certain freelancers and independent contractors. Anyone doing business in that jurisdiction should take notice and take action to comply with the law. New York City’s “Freelance Isn’t Free Act,” N.Y.C. Administrative Code §§ 20-927 et seq. (“FIFA”) went into effect on May 15, 2017. This new law substantially regulates the relationship between a business and an independent contractor or “freelancer” working in New York City. Read the court decision
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Reprinted courtesy of Kevin J. O'Connor, Peckar & Abramson. P.C.
Mr. O'Connor may be contacted at koconnor@pecklaw.com

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Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

September 10, 2018 — Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog
In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion. The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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Equities Favor Subrogating Insurer Over Subcontractor That Performed Defective Work

August 04, 2015 — Christopher Kendrick and Valerie A. Moore – Haight Brown & Bonesteel LLP
In Valley Crest Landscape v. Mission Pools (No. G049060, filed 6/26/15, ord. pub. 7/2/15), a California appeals court held that equities favor an insurer seeking equitable subrogation over a subcontractor that agreed to defend and indemnify claims arising out of its performance of work under the subcontract. Valley Crest contracted to build a pool at the St. Regis Hotel in Dana Point. Valley Crest subcontracted with Mission Pools to perform the work. The master contract contained an indemnity clause in favor of St. Regis, and the subcontract contained an indemnity clause in favor of Valley Crest. An intoxicated guest who was rendered quadriplegic after diving in the shallow end of the pool sued the hotel, Valley Crest, Mission and others involved in the design, construction and operation of the pool. The suit included allegations that the pool depth was improperly marked; there was inadequate warning signage; and the pool finish caused the pool to appear deeper than it was. Valley Crest tendered its defense to Mission Pools under the subcontract’s indemnity agreement. When Mission did not respond, Valley crest filed a cross-complaint for indemnity. All parties ultimately reached a settlement with the injured plaintiff, leaving Valley Crest’s cross-complaint against Mission Pools. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com; Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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A Recession Is Coming, But the Housing Market Won't Trigger It

June 12, 2023 — Edward Harrison - Bloomberg
One big reason to continue to believe this is no 2008-style financial crisis in the making is the housing market, which has held up well. That means, we’re more likely to experience a garden-variety recession, and I think it will happen sometime later this year. Why this isn’t another 2008-style crisis Residential property was famously the trigger for a cataclysmic global financial crisis a decade and a half ago. That’s because residential property is one of the principal assets of the middle classes across the globe. And it’s a leveraged investment to boot because of the money borrowed through mortgages. That makes large and pervasive house-price declines toxic for the economy. But not that many people are worrying about house prices today. So I thought I’d take a breather from the doom and gloom surrounding commercial real estate, banks and the debt ceiling to focus on house prices and why they aren’t worrying us this go round. And I’ll use one of the pricier markets, the UK, as a first example. Read the court decision
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Reprinted courtesy of Edward Harrison, Bloomberg

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The Multigenerational Housing Trend

May 02, 2014 — Beverley BevenFlorez-CDJ STAFF
Reuters reported that “[m]ore than 50 million Americans already live in multigenerational situations, according to Pew Research, and the number is expected to grow as baby boomers age.” Lennar Corp has “Next Gen” home models, which provides multigenerational housing for prices similar to traditional homes. For instance, according to Reuters, one of the Next Gen models contains “an 800-square-foot house-within-a-house” with “a separate entrance and its own patio, plus a bedroom, sitting area, and bathroom.” Other home builders are also providing multigenerational housing: “Gertz Fine Homes, which builds between 12-30 houses a year near Portland, Oregon, says about 30 percent of sales are now multigenerational models, which can cost around $600,000.” Read the court decision
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Withholding Payment or Having Your Payment Withheld Due to Disputes on Other Projects: Know Your Rights to Offset

January 04, 2021 — Christopher C. Broughton, Jones Walker LLP - ConsensusDocs
Introduction The right to offset refers to the common sense ability to reduce or eliminate your payment obligations to a party who owes you money on another contract. With offsets, common law largely tracks common sense. The right of offset is recognized by statute and court decisions in many states as well as under federal law and the U.S. Bankruptcy Code. The right to offset can also be established in the contract or subcontract. But like many things that may seem simple, the right to offset can easily become complex. This article provides an overview of the extent and limits of the right to offset varies from state to state and with federal government contracts about the extent and limits of the right of offset. Construction trust fund statutes add another layer of complications. These variations may not be obvious or intuitive, but they have a tremendous impact on your right to get paid or your right to withhold payment. Because of the variations, you must always confirm the law applicable to your contract or subcontract, which may not be where the project or you are located. Read the court decision
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Reprinted courtesy of Christopher C. Broughton, Jones Walker LLP
Mr. Broughton may be contacted at cbroughton@joneswalker.com

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