Fairfield Connecticut Building Expert Directory

Hybrid Contracts for The Sale of Goods and Services and the Predominant Factor Test

February 15, 2021 — David Adelstein - Florida Construction Legal Updates
Florida’s Uniform Commercial Code (also known as the UCC) applies to transactions for goods. “Goods” is defined by Article II of the UCC as “all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (chapter 678) and things in action.” Fla. Stat. s. 672.105(1). The UCC does NOT apply to transactions for services. Transactions for services are governed by common law. Oftentimes, transactions or contracts include BOTH goods and services. In this scenario, referred to as a hybrid contract, does the UCC or common law apply? In this scenario, courts apply the predominant factor test to determine whether the UCC or common law governs the transaction:

Whether the UCC or the common law applies to a particular hybrid contract depends on “whether the[ ] predominant factor, the [ ] thrust, the[ ] purpose [of the contract], reasonably stated, is the rendition of service, with goods incidentally involved (e.g., contract with artist for painting) or is a transaction of sale, with labor incidentally involved (e.g., installation of a water heater in a bathroom).” In such instances, the determination whether the “predominant factor” in the contract is for goods or for services is a factual inquiry unless the court can determine that the contract is exclusively for goods or services as a matter of law. Allied Shelving & Equipment, Inc. v. National Deli, LLC, 154 So.3d 482, 484 (Fla. 3d DCA 2015) (citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

First Trump Agenda Nuggets Hit Construction

January 26, 2017 — Pam Radtke Russell, Mary B. Powers & Debra K. Rubin - Engineering News-Record
President Donald J. Trump began making good on campaign promises to put Americans back to work and reduce the size of government, as he signed orders and memoranda setting in motion approval of the Obama administration-halted Keystone XL and Dakota Access pipelines and streamlining of infrastructure and manufacturing permitting processes. But firms and watchdog groups are concerned how an announced freezing of government hiring and contracting will play out, as well as the future of environmental protection. Reprinted courtesy of Engineering News-Record staff Pam Radtke Russell, Mary B. Powers and Debra K. Rubin Read the court decision
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Ms. Rubin may be contacted at rubind@enr.com

The American Rescue Plan Act: What Restaurants Need to Act on NOW

March 22, 2021 — Michael Krueger - Newmeyer Dillion
The American Rescue Plan Act (“Act”) was passed by the Senate over the weekend and passed by the House today. President Biden is set to sign the Act into law on Friday, March 12th. The Act has $1.9 Trillion in relief funds with $28.6 Billion set aside for the restaurant industry in the Restaurant Revitalization Fund (“Fund”). The Fund has apportioned funds into two funding groups; $5 Billion for restaurants with annual gross revenue under $500,000 and $23.6 Billion for restaurants over $500,000 in annual gross revenue. Differences from the Paycheck Protection Program (“PPP”) This is a grant program with no loan documents or forgiveness applications. Instead, each restaurant entity can apply for and receive up to $10M in grant funds through the Act. The amount a restaurant receives is based on the sum of the restaurant’s gross revenue in 2019 minus the gross revenue in 2020 minus PPP and EIDL money received. For example, Restaurant A made $7M gross revenue in 2019, made $3M gross revenue in 2020 and received $1M in PPP and EIDL combined. ($7M - $3M -$1M =$3M) The restaurant will receive $3M in grant funds directly from the SBA (as long as funds are available). Read the court decision
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Reprinted courtesy of Michael Krueger, Newmeyer Dillion
Mr. Krueger may be contacted at michael.krueger@ndlf.com

Fire Raging North of Los Angeles Is Getting Fuel From Dry Winds

June 17, 2024 — Brian K Sullivan - Bloomberg
A wildfire raging north of Los Angeles has sent smoke billowing south and forced more than 1,000 people to evacuate — and with dry winds raking the hills, the blaze is poised to intensify. A red flag fire warning has been raised in the area around the Post Fire, which is forecast to be whipped with winds reaching at least 20 miles (32 kilometers) per hour, according to the California Department of Forestry and Fire Protection, commonly called Cal Fire. The flames, which have burned more than 14,000 acres (5,700 hectares), are only about 8% contained and the smoke has prompted air quality alerts in parts of Los Angeles County and Ventura County. “Crews are working to establish perimeter fire lines around the fire’s edges,” Cal Fire said in a report. “Aircraft are being utilized to halt the fire’s forward progress but are facing challenges due to limited visibility.” Along with the Post Fire, crews are battling 10 other blazes throughout the state that flared up over the weekend in an ominous start to wildfire season. While California had heavy snow and rain this past winter, that doesn’t mean a respite from fires. The moisture that kept drought away allowed for grasses and brush to grow, meaning more wildfire fuel as California enters its driest months. Read the court decision
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Reprinted courtesy of Brian K Sullivan, Bloomberg

Colorado Passes Construction Defect Reform Bill

June 05, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
According to Daniel E. Evans of Gordon & Rees Scully Mansukhani, Colorado’s state legislature recently passed a bill “designed to reduce litigation risk associated with building condos by requiring a majority of actual condo unit owners, as opposed to a majority of the HOA board members, to approve the filing of a lawsuit over construction defects.” Evans stated that this “legislation cannot be viewed as sweeping reform” and that “future legislative sessions will undoubtedly see additional efforts to reform construction defect litigation.” Perhaps the most significant aspect of HB 1279 is the requirement for a majority of condo owners in a development to approve a lawsuit, Evans reported. Furthermore, HB 1279 “requires the HOA board to notify all condo unit owners and builders about plans to pursue a construction lawsuit. It further requires the HOA board to hold a meeting to allow the board and the developer to present facts and arguments to the individual condo unit owners, including arguments of the potential benefits and detriments of filing a lawsuit.” Unlike its failed predecessors, HB 1279 does not require arbitration. Read the court decision
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A Few Green Building Notes

April 03, 2019 — Christopher G. Hill - Construction Law Musings
This past week, the blogosphere (if that’s even the word these days) has been abuzz about green building and the value that green can add to a project. Three items in particular (among many) got my attention. The first of these was the fact that a new private sustainability rating system is ready for launch. The Institute for Sustainable Infrastructure (or ISI) is seeking public comment on its proposed envISIon. This new system (aptly dubbed Version 1.0) will go “live” in July for comment. Why mention this new system? First of all, ISI’s founding members are the American Society of Civil Engineers (ASCE), the American Public Works Association (APWA) and the American Council of Engineering Companies (ACEC). This trio gives the new program some fairly heavy weight backing. Second, while there are rating systems aside from the ever present LEED, none have taken hold in any real way to compete with LEED. I am curious to see if the envISIon system has any better luck. Finally, this shows that sustainable building is of interest to more than the USGBC and those of us that discuss LEED on a daily basis. I find this to be a great thing that could lead to more societal acceptance of sustainable practices as a standard practice rather than a goal. Hopefully such efforts will offset the other two notes that caught my eye recently. 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

Federal Defend Trade Secrets Act Enacted

July 14, 2016 — Michael B. McClellan & Jason L. Morris – Newmeyer & Dillion LLP
On May 11, 2016, President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, creating a private federal civil cause of action for trade secret misappropriation. This landmark legislation, a product of bipartisan backing and significant support from the business community, will affect businesses and individuals operating in almost every economic sector across the country. The DTSA will potentially be at issue any time an employee with access to confidential, proprietary, and trade secret information moves on to a competitor or launches a startup that competes with the former employer. This will be true so long as the product or service that the trade secret relates to is either used in or intended for use in interstate or foreign commerce. Under present commerce clause jurisprudence, the vast majority of businesses providing products and services in the United States will be affected by this new law. The DTSA will provide, for the first time, a codified federal civil remedy for misappropriation of trade secrets. Although most states have adopted some version of the Uniform Trade Secrets Act (“UTSA”), there remains significant variation between the states in their application of the UTSA and litigants face significantly different statutory frameworks depending upon which state holds jurisdiction over the dispute. In addition, prior to this new law, litigants were limited to pursuing their claims for misappropriation of trade secrets in state courts, unless federal diversity jurisdiction applied to the dispute. The DTSA changes that dynamic, providing original federal subject matter jurisdiction over trade secret disputes. Reprinted courtesy of Michael B. McClellan, Newmeyer & Dillion and Jason L. Morris, Newmeyer & Dillion Mr. McClellan may be contacted at Michael.mcclellan@ndlf.com Mr. Morris may be contacted at Jason.morris@ndlf.com Read the court decision
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California Subcontractor Gets a Kick in the Rear (or Perhaps the Front) for Prematurely Recorded Mechanics Lien

October 21, 2019 — Garret Murai - California Construction Law Blog
California provides three statutorily recognized construction payment remedies: (1) mechanics liens; (2) stop payment notices; and (3) payment bond claims. Each is intended to provide payment protections for those who furnish labor, materials and services on a construction project. However, each is also different in important ways. One of those differences has to do with timing. Specifically, when the statutory payment remedy may be used by a claimant. Stop payment notices can be served at any time during a project even before a claimant has completed its work. However, mechanics liens may only be recorded and payment bond claims may only be made after a claimant has completed or ceased performing its work. In Precision Framing Systems, Inc. v. Luzuriaga, Case No. E069158 (August 29, 2019), the 4th District Court of Appeal examined whether a subcontractor had prematurely recorded a mechanics lien and, thereby, was prevented from filing a lawsuit to foreclose on its mechanics lien. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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