Fairfield Connecticut Building Expert Directory

One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

April 06, 2016 — David A. Harris – Haight Brown & Bonesteel LLP
Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs until it receives funding from the owners. The subs, of course, want their progress and final payments as soon as possible. Up until 1997, two different payment provisions were used in California contracts to manage payments by a general to its subcontractors. The first was called a “pay if paid” clause, and provided a contractor did not have to pay its subcontractors for work performed unless the subcontractor was first paid by the owner of the project. The second was the “pay when paid clause.” It required subcontractors to be paid for their work after the general was paid by the owner, or within “a reasonable time” after the subcontractors finished their work if the owner did not pay the general. Read the court decision
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Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP
Mr. Harris may be contacted at dharris@hbblaw.com

AB 1701 – General Contractor Liability for Subcontractors’ Unpaid Wages

December 01, 2017 — Alex Baghdassarian, Eric M. Gruzen, & Kerri Sakaue – Peckar & Abramson, P.C.
Contractors will soon find themselves on the frontline of wage disputes on projects if laborers working on behalf of their subcontractors or vendors are unpaid. On October 14, 2017, Governor Jerry Brown signed into law AB 1701, which will allow laborers to seek direct compensation from the general contractors on private projects, if their wages remain unpaid. The legislative mandate requires direct contractors—defined as contractors who have a direct contractual relationship with an owner—to assume liability for any debt incurred by a subcontractor, at any tier, for a wage claimant’s performance of labor included in the subject of the original contract between the general contractor and the owner. The California bill will apply to all private construction contracts entered into on or after January 1, 2018. Previously, all laborers could maintain a mechanic’s lien claim against private property, without needing to serve a 20-day preliminary notice, but there was no statutory obligation on the “direct contractors” to reimburse the laborers their unpaid wages. Reprinted courtesy of Peckar & Abramson, P.C. attorneys Alex Baghdassarian, Eric M. Gruzen and Kerri Sakaue Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com Mr. Gruzen may be contacted at egruzen@pecklaw.com Ms. Sakaue may be contacted at ksakaue@pecklaw.com Read the court decision
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The Conscious Builder – Interview with Casey Grey

February 16, 2017 — Aarni Heiskanen – AEC Business
In this podcast interview, Casey Grey talks about Conscious Building, passive houses, and and how we can make our homes healthier. About Casey Grey Casey Grey is the founder and CEO of The Conscious Builder Inc., an Ontario company. Casey is one of those very few people who knew what he wanted from a very young age. Although his goals have changed over the years, they have always revolved around building homes. From Lego, to tree houses to custom homes, he is constantly looking for ways to build better homes. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aarni@aepartners.fi

Appraisal Can Go Forward Prior to Resolution of Coverage Dispute

April 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Florida Supreme Court found that a trial court could compel an appraisal of the insured's loss prior to resolving coverage issues. Am. Coastal Ins. Co. v. San Marco Villas Condo. Ass'n, Inc., 2024 Fla. LEXIS 185 (Fla. Feb. 1, 2024). Hurricane Irma damaged San Marco Condominium Association's buildings. American Coastal paid $192,629.75 for the loss. San Marco estimated the damage to be in excess of eight million dollars. San Marco demanded an appraisal under the policy. American Coastal refused to submit to appraisal because it was premature as its investigation was still ongoing. San Marco sued American Coastal and asked the court to compel appraisal. American Coastal argued that San Marco had committed fraud or had made material misrepresentations regarding its claim. The trial court heard San Marco's appraisal motion and entered an order compelling appraisal. American Coastal appealed, bu the Second District Court affirmed. 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

Louisiana Court Holds That Application of Pollution Exclusion Would Lead to Absurd Results

October 21, 2019 — Sergio F. Oehninger & Daniel Hentschel - Hunton Insurance Recovery Blog
A Louisiana court recently denied an excess insurer’s bid for summary judgment, finding that the insurer’s interpretation of a pollution exclusion would lead to “absurd results.” Central Crude, Inc., a crude oil transporter company, experienced an oil pipeline leak, allegedly causing damage to property belonging to Columbia Gas Transmission Company. Columbia Gas sued Central Crude seeking compensatory damages and injunctive relief to compel remediation of the site. Central Crude sought coverage under a CGL primary insurance policy issued by Liberty Mutual. The insurer initially agreed to cover Central Crude’s “reasonable and necessary costs” relating to the incident, but later refused to defend or indemnify Central Crude for any costs incurred from the incident. As a result, Central Crude brought suit against Liberty Mutual and its excess insurer, Great American, to enforce coverage. Great American moved for summary judgment arguing coverage was excluded by the excess policy’s pollution exclusion, which precludes coverage for injury “arising out of a discharge of pollutants.” Central Crude responded arguing that the exclusion’s applicability was invalidated or at least rendered ambiguous by the Following Form Endorsements, which reflect an intent to mirror the coverage afforded under the primary Liberty Mutual policy, and because coverage appears to be specifically authorized through the Premises Operations Liability Endorsement. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Event-Cancellation Insurance Issues During a Pandemic

September 07, 2020 — Lorelie S. Masters & Latosha M. Ellis - Hunton Andrews Kurth
As the effects of coronavirus continue, organizations and companies now are considering whether events in late 2020 and early 2021 can take place or need to be converted to virtual events. What insurance effects will those changes and cancellations have? Consideration of these important decisions requires a review of both event-cancellation insurance and a consideration of force majeure and other such issues. On the insurance front, years ago, many policyholders purchased event-cancellation insurance for events in 2020, 2021, and even as far out as 2024. Such policies, purchased before the middle of March 2020, generally contain explicit coverage “buy-backs” for losses from “communicable disease.” That is, the policyholders paid an extra, specifically identified premium to remove any exclusion for communicable disease from these policies. Typically, these policies do not use the word, “virus”, but rather use “communicable disease”; and exclude neither. Those policies typically cover a specified amount of net profit and include additional coverages for “Cost of Remedial Action”, “Future Marketing Expense”, etc., over and above that specified amount of coverage. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Ms. Ellis may be contacted at lellis@HuntonAK.com Read the court decision
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Insured's Complaint Against Flood Insurer Survives Motion to Dismiss

May 07, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insurer's attempt to dismiss the insured's multi-count complaint for failure to provide full coverage for flood damage failed. Ragusa Corp. v. Standard Fire Ins. Co., 2014 U.S. Dist. LEXIS 40812 (D. Conn. March 27, 2014). The insureds' house suffered significant damage due to flood associated with Hurricane Irene. The insureds submitted a claim. Standard Fire paid $35,216.75, well below what the insureds thought they were owed. The insureds returned the check and demanded what they believed was full payment. The insureds demanded an appraisal because the parties did not agree on the amount being paid under the policy, including disagreement about the amount owed for items that both sides agreed were covered under the policy. Standard Fire refused to participate in an appraisal. The insureds ended up suing Standard Fire, alleging, among other things, breach of contract, negligent misrepresentation, and breach of the implied covenant of good faith and fair dealing. 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

Chinese Demand Rush for Australia Homes to Stay, Ausin Says

August 06, 2014 — Nichola Saminather – Bloomberg
Ausin Group (Finance) Pty, which offers property and mortgage broking in Australia to Chinese buyers, expects to sell two-thirds more homes and to double the amount of loans it arranges as demand from the mainland surges. The company forecasts A$1.5 billion ($1.4 billion) in sales of new residential properties in the year ending June 30, compared with A$900 million over the previous 12 months, Sydney-based Managing Director Joseph Zaja said in an interview yesterday. The value of mortgages the closely held company arranges through Australian banks is expected to climb to A$500 million in the 2015 calendar year, he said. Ausin is benefiting from surging demand from China, where the housing market is faltering. Chinese purchasers overtook Americans to become the biggest buyers of real estate in Australia in the 12 months through June 2013, plowing A$5.9 billion into commercial and residential property, a 42 percent increase from the previous 12 months. Read the court decision
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Reprinted courtesy of Nichola Saminather, Bloomberg
Ms. Saminather may be contacted at nsaminather1@bloomberg.net

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES