Cambridge Massachusetts Building Expert Directory

Contractors Admit Involvement in Kickbacks

December 09, 2011 — CDJ STAFF

Two New Jersey contractors have pleaded guilty to charges that they made false representations for a government contract in a case related to kickbacks for construction work done in two school districts. New Jersey is recommending that the two men, Martin Starr and Stephen Gallagher, will each pay $50,000 in penalties, serve up to a year in jail, and be unable to accept public contracts for five years.

Last month, another individual in the case, Kenneth Disko, who had been the engineer for the school district, pleaded guilty on a similar charge. In addition to a $50,000 penalty, he will be serving three to five years in prison. A fourth conspirator, Robert Berman, the former business administrator for one of the school districts, has to pay a $13,000 fine and cooperate with the investigation. He is also barred from public employment in New Jersey and has been terminated from his position.

Starr admitted to preparing fictitious quotes which appeared to be from other contractors in order that his firm would seem to be the lowest bidder. Gallagher helped in preparing the fictitious bids and also provided cash kickbacks to Disko.

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Newark Trial Team Obtains Affirmance of Summary Judgment for General Contractor Client

January 21, 2025 — Lewis Brisbois Newsroom
Newark, N.J. (December 31, 2024) - Days after obtaining an Appellate Division victory affirming a “no cause” jury verdict, Newark Partner Afsha Noran and Managing Partner Colin Hackett obtained a second appellate court victory affirming a trial court's dismissal of a complaint against another firm client, a general contractor. The team had previously obtained summary judgment at the trial level on the grounds plaintiff could not establish a prima facie case against the client. The plaintiff appealed the grant of summary judgment and dismissal of her claim to the Appellate Division. Read the court decision
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Issue and Claim Preclusion When Forced to Litigate Similar Issues in Different Forums: White River Village, LLP v. Fidelity and Deposit Company of Maryland

October 10, 2013 — Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.
Often in construction litigation the parties wish to move the case to arbitration. However, there are certain circumstances in which such change of litigation forums should be carefully analyzed. The case of White River Village, LLP v. Fidelity and Deposit Company of Maryland, serves as an example of one of those circumstances. In March 2013, U.S. District Court Judge Blackburn ruled on a motion for summary judgment filed by Fidelity and Deposit Company of Maryland (“F&D”). The order grants the motion in part and denies it in part. White River Village, LLP (“White River”) was the owner of the project which hired S&S Joint Venture (“S&S”), the contractor, to build two similar developments, directly adjacent to each other. The contracts between Whiter River and S&S for the two projects were so substantially similar that the court referred to them as the S&S Contracts. F&D issued payment and performance bonds guarantying the obligations of S&S under the S&S Contracts. After S&S defaulted on the construction contracts, F&D, as the surety, undertook to complete performance on the contracts. White River alleged that F&D was liable for construction defects and delays in completing the project, and failed to fulfill its obligations under the performance bonds after it overtook the construction of the projects. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Brady Iandiorio can be contacted at Iandiorio@hhmrlaw.com

Real Estate & Construction News Roundup (10/18/23) – Zillow’s New Pilot Program, Production Begins at Solar Panel Plant in Georgia, and More Diversity on Contracts for Buffalo Bills Stadium

November 27, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, Netflix announces plans to open brick-and-mortar locations, NYU develops a way to examine buildings using drones, robots and AI, distressed U.S. commercial real estate hits a 10-year high, and more!

Zillow is piloting a new program in Arizona offering new home buyers thousands of dollars to help them with their down payments. (Oliver Staley, TIME)
After an initial backlash regarding workforce diversity, a Gilbane-Turner joint venture has given 40% of contracts on the new Buffalo Bills’ stadium to minority-, women- or service-disabled veteran-owned companies. (Joe Bousquin, Construction Dive)
To ensure easier compliance with New York City’s Local Law 97, researchers at NYU are developing a method using drones, robots and AI to examine building exteriors for leaks. (Nish Amarnath, Construction Dive)

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

More on the VCPA and Construction

February 01, 2023 — Christopher G. Hill - Construction Law Musings
I have posted before regarding the intersection between the Virginia Consumer Protection Act (VCPA) and construction contracting in regard to residential construction projects. A case out of the Eastern District of Virginia District Court further discusses this intersection as it relates to design contracts that also include the procurement and installation of certain design elements post-design. The basic facts of Marcus v Dennis are as follows: In October of 2018, Defendant Marlene Dennis, the owner of Marlene Dennis Design, LLC (“MDD”), operating out of Virginia, entered into a contract to provide design services and the procurement and installation of certain design elements for the Plaintiffs, Gregory and Jamie Marcus, at their Maryland home. The Marcuses agreed to $175 per hour to Dennis with a cap of a total of $100,000.00 for design consultation and furniture selection and procurement. The Marcuses also agreed that they would pay no more than $250,000.00 for furnishings, rugs, artwork, decorative lighting, and accessories. In November 2020, Dennis sent an invoice for $68,000.00 and informed the Plaintiffs that the total contract fees would be more than the $100,000.00 cap. After paying $124,722.41 in design fees, the Plaintiffs received an invoice for $255,5560.72 in January of 2021. Despite the cap of $250,000.00, the Plaintiffs wired $255,000.00 to Dennis while requesting the backup invoices for the material charges. After much effort and a threat of litigation, the Plaintiffs received documents from Dennis showing that Dennis inflated the costs of the materials prior to passing the costs along to the Marcuses. The Plaintiffs’ home was unfurnished and empty as of April 10, 2021, and the Marcuses had to hire and pay another design team over $85,000.00 to finish Dennis’ work. Needless to say, the Marcuses sued both Dennis and her firm for breach of contract, breach of fiduciary duty, and for violation of the VCPA. Dennis moved to dismiss the Complaint. 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

GAO Sustains Unsupported Past Performance Evaluation and Unequal Discussion Bid Protest

November 23, 2016 — Lindsay K. Taft – Ahlers & Cressman PLLC Construction Law Blog
Rotech Healthcare, Inc., a healthcare contractor, recently successfully protested the award of a home oxygen and durable medical equipment contract by the Department of Veterans Affairs to Lincare, Inc. based on an unsupported past performance evaluation and allegations of an unequal discussion. See GAO Protest File Number: File: B-413024 (August 17, 2016). The Request for Proposals (“RFP”) provided that award would be made on a “best value” basis to the offeror whose proposal was most favorable to the government[…] Read the court decision
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Reprinted courtesy of Lindsay K. Taft, Ahlers & Cressman PLLC Construction Law Blog
Ms. Taft may be contacted at ltaft@ac-lawyers.com

Supreme Court Opens Door for Challenges to Older Federal Regulations

August 05, 2024 — Jane C. Luxton - Lewis Brisbois
Washington, D.C. (July 1, 2024) – On July 1, 2024, the U.S. Supreme Court issued another end-of-term major decision limiting the scope of federal agency actions in Corner Post, Inc. v. Board of Governors of the Federal Reserve System. Adding to the tectonic shift in the regulatory landscape created by the Court’s June 27 and 28 rulings constraining the role of administrative law judges and overturning longstanding “Chevron deference” by courts to federal agency expertise, the decision in Corner Post establishes a newly expanded time frame for affected entities to challenge final agency action. Instead of confirming that final agency action is subject to a default six-year statute of limitations, the Court held that under the Administrative Procedure Act (APA), the time limit for appeal begins to run when a plaintiff is injured by the agency's action, not when the action becomes final. This decision has important implications for businesses and others affected by federal regulations. The case arose when Corner Post, a truck stop and convenience store in North Dakota that opened in 2018, challenged a 2011 Federal Reserve Board regulation (Regulation II) that set maximum interchange fees for debit card transactions. Corner Post filed suit in 2021, arguing that Regulation II allowed higher fees than permitted by statute. The lower courts dismissed the suit as time-barred under 28 U.S.C. § 2401(a), which effectively requires APA claims to be filed "within six years after the right of action first accrues." Read the court decision
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Reprinted courtesy of Jane C. Luxton, Lewis Brisbois
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com

Hotel Claims Construction Defect Could Have Caused Collapse

December 30, 2013 — CDJ STAFF
The owners of the Crowne Plaza New Orleans Airport, in Kenner, Louisiana, have filed a lawsuit claiming that a defective beam installed during renovations put the building at risk of collapse, reports The Louisiana Record. The hotel was sold to its current owners, 2929 Williams Blvd, LLC, in 2006, and the renovations began after Hurricane Katrina in 2007. The renovations converted an indoor pool area into a ballroom. The renovations were finished in 2008, but hotel staff noticed the walls and ceiling of the ballroom were sagging by September 2011. A structural engineer determined that a main beam had failed, risking collapse of the entire building. The hotel owners set upon repairing the structure and now seek reimbursement. 2929 Williams Blvd., LLC is suing Trimark Constructors LLC, Kyle Associates LLC, and Avengo Baily & Associates, Inc. for an unspecified amount of damages. Read the court decision
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