Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Round-Up 04/13/22

April 25, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Phishing schemes target the mortgage industry, housing prices rise in Europe as Ukrainian refugees flee from their home country, the SEC announces new climate change regulations that will impact commercial real estate, and more.

The Federal Reserve aims to rein in one of the biggest drivers of runaway inflation: the U.S. housing market. (Lance Lambert, Fortune)
Late last month, the SEC announced that publicly traded organizations would soon need to disclose their climate change risks and exposure, causing a shake up in the real estate industry. (Hiten Samtani, The Real Deal)
As the purpose of in-person office work continues to be questioned, the return to office debate causes challenges for occupier services, a backbone of commercial real estate. (Patrick Sisson, Bisnow)

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

Mediating Contract Claims and Disputes at the ASBCA

December 20, 2021 — Brian Waagner - Construction Executive
The Contract Disputes Act establishes the formal process for resolving nearly all claims and disputes that arise under federal government contracts. It is the source of the requirement that contractors certify claims in excess of $100,000, the contracting officer’s final decision and the deadlines for bringing a dispute to the court of federal claims or an agency board of contract appeals. It is also the source of the federal government’s authority to use mediation and other forms of alternative dispute resolution. Here are six key factors contractors should know about mediating contract claims and disputes at the Armed Services Board of Contract Appeals (ASBCA). 1. The Parties Control the Parameters of ADR Proceedings Many commercial contracts and court rules require mediation of every dispute. There is no settlement meeting, mediation or any other type of mandatory ADR proceedings in cases brought to the ASBCA. The parties control the process, and they may adopt any approach to ADR that they believe will be effective. Mediation is nevertheless voluntary. Without the agreement of both parties, it won’t happen. Reprinted courtesy of Brian Waagner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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The Case For Designers Shouldering More Legal Responsibility

November 21, 2018 — Richard Korman - Engineering News-Record
Ujjval Vyas is dignified, articulate and persistent. In past years he earned a law degree and a PhD where his thesis concerned Philip Johnson and architectural modernism. He is a founder of a hydrogen energy company. He is also leading a crusade, largely by himself, advocating that designers should be held to a "clients come first" approach applied to other professionals—an idea that would burden engineers and architects with the weight of vastly increased legal liability. The reactions to his ideas in the past have ranged from scornful to sympathetic. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

Colorado Supreme Court Decision Could Tarnish Appraisal Process for Policyholders

September 16, 2019 — Michael V. Pepe - Saxe Doernberger & Vita, P.C.
On June 24, 2019, the Colorado Supreme Court ruled that the plain language of appraisal provisions in insurance policies, requiring “impartial appraisers,” direct appraisers to be “unbiased, disinterested, and unswayed by personal interest,” regardless of who hires them, and prohibits the party-appointed appraisers from acting as advocates. A common and attractive alternative dispute resolution option, the appraisal process usually entails the policyholder and insurer each hiring their own appraiser, who estimates how much the claim is worth. These appraisers also select a third-party umpire, and if they cannot agree upon one, a court appoints one. The umpire analyzes the conflicting estimates and presents a number to resolve the dispute. If two of the three parties agree with the outcome, the number becomes binding. Owners Ins. Co. v. Dakota Station II Condo. Ass'n, Inc.1 began when Dakota Station II Condominium Association Inc. (“Dakota”) and its insurer, Owners Insurance Company (“Owners”) could not agree on how to value two claims arising out of weather damage. To settle the differences and come to a resolution, Dakota invoked the appraisal provision in the insurance policy instructing each party to select its own “competent and impartial appraiser.” Ultimately, a court-appointed umpire considered six cost categories in dispute and adopted four of Owners’ estimates and two of Dakota’s. Read the court decision
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Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita, P.C.
Mr. Pepe may be contacted at mvp@sdvlaw.com

Additional Insured Not Entitled to Reimbursement of Defense Costs Paid by Other Insurers

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Con Edison ("Con Ed") was unsuccessful in arguing for defense costs that had already been paid by other insurers. Consol. Edison Co. of N.Y. v. Lexington Ins. Co., 2015 U.S. Dist. LEXIS 121573 (S.D. N.Y. Sept. 9, 2015). Team, Inc. was under contract with Con Ed to provide repairs to the steam system running below the streets of New York City. The contract required Team to indemnify Con Ed for all claims resulting from personal injury or property damage connected to Team's work. Team also obtained a CGL policy naming Con Ed as an additional insured. The policy was to provide primary coverage. Any insured was responsible for the first $250,000 of costs for investigation and/or defense. On July 1, 2007, a steam distribution main, on which Team had finished working, ruptured, creating a huge crater and sending steam and debris, including asbestos insulation, into the surrounding area. The rupture caused substantial damage to nearby buildings, vehicles and underground infrastructure. It also caused personal injury, including two individuals in a tow truck that fell into the crater and a woman who suffered a fatal heart attack while running from the explosion. 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

Towards Paperless Construction: PaperLight

June 02, 2016 — Aarni Heiskanen – AEC Business
I just toured the newly built headquarters of a financial corporation. Our guide, a M&A specialist, boasted that they have completely removed paper from their offices. Could paperless construction become feasible any time soon? PaperLight is a portable smart board that could replace paper drawings on many occasions. Rollout, Inc., the developer of PaperLight, says that 90% of contractors still use paper plans. AEC firms spend, on average, $1600 per employee on printing annually. Over 37 million construction drawings are printed every year. Finding a usable solution that reduces these numbers makes economic sense. Even more so if you consider all the costs of errors that result from using outdated paper drawings. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aarni@aepartners.fi

Home Building Mergers and Acquisitions 2014 Predictions

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
John McManus, writing for Big Builder, discusses the various predictions for mergers and acquisitions in the home building field for 2014. While predictions vary between individuals, it seems to hover between 15 and 30. McManus lists several home building seller motivations, such as a “[n]eed for cash infusion to buy and develop new lot pipeline” and “[s]uccession planning.” Finally, McManus points out that not every merger and acquisition discussion will lead to a deal: “We've recently seen a combination or three flounder on the issue of price. This occurs partly as the home builder buyer community becomes more discriminating as to what truly fits their program, and partly as smaller builders attain options as regional and national lenders awaken and look to reenter project financing in a bigger way.” Read the court decision
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Too Late for The Blame Game: Massachusetts Court Holds That the Statute of Repose Barred a Product Manufacturer from Seeking Contribution from a Product Installer

March 21, 2022 — Gus Sara - The Subrogation Strategist
In State Farm Fire & Cas. Co. v. Wangs Alliance Corp., No. 21-cv-10389-AK, 2022 U.S. Dist. LEXIS 26712, the United States District Court for the District of Massachusetts (District Court) considered whether a product manufacturer was barred by the Commonwealth’s six-year statute of repose for improvements to real property from joining the installer of the product as a third-party defendant. The court denied the defendant’s motion for leave to file a third-party complaint to join the installer, finding that the installer completed its work more than six years prior to the motion being filed. This case reminds us that Massachusetts’ six-year statute of repose for improvement to real property also bars a defendant’s contribution claims against third parties. The Wangs Alliance case involves a subrogation action filed by State Farm Fire & Casualty Insurance (Insurer) against Wangs Alliance Corp. (Wangs), a manufacturer of rope lighting. Insurer insured the homeowners, who experienced a fire in their home in 2018. The home was originally built in 2002 by Wellen Construction (Wellen). As part of the original construction, Wellen installed rope lighting manufactured by Wangs in the house. Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

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