Fairfield Connecticut Building Expert Directory

Walking the Tightrope of SB 35

December 22, 2019 — Robert Howard, Alexander Walker and Matt Olhausen - Gravel2Gavel Construction & Real Estate Law Blog
Developers in California know that getting approval to build new housing projects can be extremely difficult, time-consuming, and expensive. But a new policy is finally coming into full effect which could help developers cut through those barriers. SB 35, enacted in 2017, streamlines the approval process for housing developments in areas with inadequate housing supply, so long as the developments meet certain criteria. We have written elsewhere about the initial impacts of SB 35. SB 35 has successfully allowed some developers to obtain their entitlements quickly and easily through a streamlined process, but some local governments have resisted the use of SB 35. For example, the City of Los Altos denied an application that attempted to obtain streamlining through SB 35, prompting a nonprofit housing organization to sue. In Cupertino, the Planning Commission Chairman advocated in April 2019 for rescinding the SB 35 approval of the redevelopment of the Vallco Mall, which would include over 2,400 units of housing, while some residents have sued to block the development. As a result, it is crucial for developers to understand the details of SB 35 and make sure to meet all of its requirements. Any misstep may allow a recalcitrant local government to deny that a development project qualifies for SB 35 treatment and attempt to block it. In November 2018, the state Department of Housing and Community Development (HCD) released Guidelines to clarify the criteria for SB 35 and assist cities in determining whether projects qualify for streamlining. Reprinted courtesy of Pillsbury attorneys Robert Howard, Alexander Walker and Matt Olhausen Mr. Howard may be contacted at robert.howard@pillsburylaw.com Mr. Walker may be contacted at alexander.walker@pillsburylaw.com Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com Read the court decision
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Insurance Tips for Contractors

December 08, 2016 — Patrick McNamara - Porter Law Group
Many contractors contentedly accept the insurance policies presented to them by their insurance carriers. However, it is a much better practice to be an active participant in choosing the most appropriate coverage for your business and the specific jobs that you are performing. Use the following tips to be sure your company has the best and most comprehensive coverage.

Never purchase a Commercial General Liability (“CGL”) policy with a “sunset” provision limiting coverage under Products & Completed Operations liability (P&CO) to a 2, 3 or 4-year term. Why? Because the California statute of limitations for construction defect claims is generally 10 years.
Never consider a “Claims-made” or “Modified Occurrence” coverage form which also have a built-in limitation as to the length or term of P&CO coverage. Example: If you purchase a claims-made policy and decide to “switch” your insurance to the preferred “occurrence” coverage form, unless a special provision is made prior to the new purchase, the claims-made coverage would become worthless after the sixty (60) day claims-reporting period.

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Reprinted courtesy of Patrick McNamara, Porter Law Group
Mr. McNamara may be contacted at pmcnamara@porterlaw.com

Hawaii Appellate Court Finds Appraisers Limited to Determining Amount of Loss

April 25, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The Hawaii Intermediate Court of Appeals determined that appraisers cannot decide what amount is owed by the insurer after loss, but are limited to finding the amount of the loss. Krafchon v. Dongbu Ins. Co., Ltd., 2023 Haw. App. LEXIS 43 (Haw. Ct. App. Feb. 17, 2023). The insureds owned three structures on the property on Maui: the Villa; the Cottage; and the Garage. The three structures were insured under homeowners and dwelling fire policies issued by Dongbu. When the structures were damaged by wildfire, Dongbu tendered over $300,000 under a reservation of rights, pending preparation of a final settlement. There was disagreement over the total amount of the loss. The insureds invoked the appraisal provision of the policies. When Dongbu failed to appoint an appraiser, the insureds sued. The trial court granted the insureds' motion to compel appraisal. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurance Policy’s “No Voluntary Payment” Clauses Lose Some Bite in Colorado

October 22, 2013 — Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.
The Colorado Court of Appeals recently handed down an opinion dulling the teeth of the “no voluntary payment” clauses found in many contractors’ insurance policies. In the case of Stresscon Corporation v. Travelers Property Casualty Company of America, 2013 WL 4874352 (Colo. App. 2013), the Court of Appeals found that an insured’s breach of the “no voluntary payment” clause does not always bar the insured from receiving benefits from its insurance company. In July 2007, at a construction project run by Mortenson (the “GC”), a partially erected building collapsed, killing one worker and gravely injuring another. The collapse was caused by a crane hook pulling a concrete component off of its supports. The GC contracted with Stresscon Corporation (“Stresscon”) to build pre-cast concrete components for the project, and in turn Stresscon hired two sub-subcontractors, RMS and Hardrock (the “Crane Team”) to work together to erect those concrete components. Stresscon and the Crane Team had liability insurance, and Stresscon was insured by Travelers Property Casualty Company of America (“Travelers”). The accident led to three separate lawsuits: 1) one brought by the deceased worker; 2) one brought by the injured worker; and 3) one brought by the GC against Stresscon claiming it was entitled to contract damages incurred because the project was delayed. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Brady Iandiorio can be contacted at Iandiorio@hhmrlaw.com

Homeowners May Not Need to Pay Lien on Defective Log Cabin

July 01, 2011 — CDJ STAFF

The Idaho Supreme Court has ruled in the case of Perception Construction Management v. Bell. The Bells hired PCM to build a log home, agreeing to play monthly invoices in full within ten days. The Bells paid the first four invoices in full, part of the fifth, and ceased payment after that. Beofre seventh invoice, the Bells terminated the contract and hired a new contractor. PCM filed a claim of lien and ceased work.

The Bells responded that PCM was in breach of contract and had failed to fulfill the contract in a workmanlike manner. They claimed construction defects and in the lien suit, sought to include testimony from an architect and a plumber reviewing PCM’s work. The court only allowed the architect to testify as to whether the amount of the lien was reasonable. No testimony was permitted from the plumber.

The Idaho Supreme Court concluded that the claims of construction defects were important to case and remanded it to the lower court for a new trial taking into evidence that Bell’s contention that PCM’s work was defective.

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Contractor Prevails on Summary Judgment To Establish Coverage under Subcontractor's Policy

June 07, 2021 — Tred R. Eyerly - Insurance Law Hawaii
When sued for construction defects caused by the subcontractor, the general contractor was granted summary judgment on the issue of coverage under the subcontractor's policy. Meritage Homes of Ga. v. Grange Ins. Co., 2021 U.S. Dist. LEXIS 84591 (N.D. Ga. March 23, 2021). Meritage built a home for the owners. Easterwood Excavating, Inc. was the subcontractor for excavation and grading work. Meritage was named an additional insured under Easterwood's policy with Grange. After construction was completed, the owners were experiencing severe flooding after rain storms purportedly due to defects in the grading, site preparation and excavation. The owners filed an arbitration against Meritage for damages. The owners alleged that Meritage improperly excavated and graded their lot, causing water to collect and pool in their yard. Meritage denied all liability and looked to Easterwood and Grange for defense and indemnification. Grange denied coverage, contending there was no occurrence which resulted in property damage. The arbitrator found that the folding of water was caused by Meritage's improper grading of the lot. A Final Award in the amount of $129,530.93 was issued against Meritage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Foreclosure Deficiency: Construction Loan vs. Home Improvement Loan

November 12, 2019 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Helvetica Servicing, Inc., v. Pasquan, 2019 WL 3820015, (8/15/19), the Court of Appeals addressed the distinction between (1) a construction loan (or refinance of same) and (2) a home improvement loan (or refinance of same), as it relates to Arizona’s anti-deficiency statute, A.R.S. §33-729(A). In general, an anti-deficiency statute provides that although a purchase-money lender or a construction lender can – in appropriate circumstances – foreclose on their loan and cause a sale of the property to pay the loan, the lender cannot (if the statutory criteria are met) force the homeowner/borrower to pay the remaining balance still owed on the loan following the foreclosure (known as the deficiency). In other words, if the anti-deficiency rule applies, the lender’s sole remedy to collect on the loan is a foreclosure sale of the property; and the homeowner/borrower’s downside risk is loss of the property in foreclosure; the homeowner/borrower does not have any personal liability to pay the remaining unpaid balance of the loan post-foreclosure. In effect, the homeowner/borrower can simply walk away and not have to repay the loan. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

Georgia House Bill Addresses Construction Statute of Repose

May 04, 2020 — Jason Gropper - Autry, Hall & Cook, LLP
On March 2, 2020, by a unanimous vote, the House passed HB 968. This Bill seeks to clarify which civil actions are subject to Code Section 9-3-51, which is the eight-year statute of repose for deficiencies in connection with improvements to realty. If passed by the General Assembly, it would explicitly state that the statute of repose will not apply to breach of express warranties. If the Bill is passed, O.C.G.A § 9-3-51 would include a subsection that provides: “This Code section shall not apply to actions for breach of contract, including, but not limited to actions for breach of express contractual warranties.” Jason Gropper, Autry, Hall & Cook, LLP Mr. Gropper may be contacted at Gropper@ahclaw.com Read the full story... Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES