Fairfield Connecticut Building Expert Directory

Construction Payment Remedies: You May be Able to Skate by, But Why?

April 06, 2016 — Garret Murai – California Construction Law Blog
My grandfather used to say that “anything worth doing, is worth doing well.” It wasn’t until later that I learned the quote wasn’t his, but a quote from Philip Stanhope the Fourth Earl of Chesterfield, who said in his posthumously published and quite lengthily titled Letters to His Son on the Art of Becoming a Man of the World and a Gentleman, that “whatever is worth doing at all, is worth doing well.” I’m not sure where my grandfather, who wasn’t a man of letters, picked up this quote, but I like his version better. While “anything worth doing, is worth doing well” can be said to apply to a wide variety of things in life, including living itself, it applies equally to the world of construction payment remedies, which have requirements that are both detailed and deadline driven. 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

The One New Year’s Resolution You’ll Want to Keep if You’re Involved in Public Works Projects

January 07, 2015 — Garret Murai- California Construction Law Blog
New Year’s resolutions are hard to keep. In fact, studies (which I have a sneaking suspicion may have been paid for by the tobacco, donut and vacation timeshare lobbies) have found that only 8% of New Year’s resolutions are kept. But, here’s one you’ll want to make sure you keep. Mandatory Registration and Notice Requirements If you’re a public works contractor or subcontractor you only have until March 1, 2015 to register through the California Department of Industrial Relations (“DIR”) to bid and enter into public works contracts on state and local public works projects. And if you’re a state or local public agency you must provide notice of the DIR’s new registration requirements in all call for bids and contract documents beginning January 1, 2015. 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

As Climate Changes, 'Underwater Mortgage' May Take on New Meaning

August 20, 2014 — James Tarmy – Bloomberg
Looking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it. So. If you’re looking to settle down for the long haul, where’s the best place to do it? Great Plains? You're looking at higher temperatures and more demand for water and energy. The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment. Read the court decision
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Reprinted courtesy of James Tarmy, Bloomberg

Construction Defect Claims Not Covered

May 10, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insured's negligent acts causing damage to only the structure of the home it built were not covered under the CGL policy. Westfield Ins. Co. v. Zaremba Builders II LLC, 2022 U.S. Dist. LEXIS 36189 (N.D. Ill. March 2, 2022). Zaremba contracted to build a house for the Vrdolyak Trust. After completion of the home, the occupants found many problems, including painting defects such as bubbling and peeling, leaving the basement full of water for months, causing damage to ductwork, framing and piping in the house, etc. The Trust sued and Westfield denied a defense. Westfield filed a declaratory judgment action for a ruling that it had no duty to defend or indemnify. On Westfield's motion for summary judgment, the court determined there was no property damage. Property damage included "physical injury to tangible property." When the alleged damage occurred in the course of a construction project, tangible property had to be property outside the scope of the contract for project. 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

Supply Chain Delay Recommendations

August 07, 2022 — Denise Motta - Gordon & Rees Construction Law Blog
This Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by supply chain delays. Contract Protection Tips: The construction industry is being impacted substantially by inability to obtain necessary construction products due to supply chain issues. Most construction contracts do not accommodate time extensions due to supply chain impacts. To address this gap in contract terms, we recommend including language such as: “lack of or failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers” as part of the defined force majeure event under the contract. This provision can be included in the Change Order section of the contract as well by including a provision such as: “If the Work is delayed by the failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers, contractor shall be entitled to a change order for its costs and time associated with the delay.” Read the court decision
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Reprinted courtesy of Denise Motta, Gordon Rees Scully Mansukhani, LLP
Ms. Motta may be contacted at dmotta@grsm.com

Richest NJ Neighborhood Fights Plan for Low-Cost Homes on Toxic Dump

May 28, 2024 — Nacha Cattan - Bloomberg
Josh Bauers has long had his sights set on the town dump in Millburn. Bauers wants to put 75 affordable apartments on the site where piles of Styrofoam and food scraps lie in heaps. But that’s a bridge too far for many residents of New Jersey’s richest ZIP code, Short Hills, where multimillion dollar Tudor and colonial-style mansions are perched atop grassy hillocks less than an hour’s commute from Manhattan. Many in the community, favored by finance types and lawyers, are up in arms over the development’s potential effect on the environment and its highly-rated schools. But the years-long fight to put affordable housing in the town has become about far more than that, and has raised accusations over inequality and race. Millburn Township, whose largest community is Short Hills, may be forced to build on the dump after a state court ruled last month that it will decide where the development will go. The town had agreed to build on the polluted site three years ago, only to backtrack. Read the court decision
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Reprinted courtesy of Nacha Cattan, Bloomberg

NJ Transit’s Superstorm Sandy Coverage Victory Highlights Complexities of Underwriting Property Insurance Towers

February 24, 2020 — Traub Lieberman
In New Jersey Transit Corp. v. Certain Underwriters at Lloyd’s, London, 2019 WL 6109144 (N.J. App. Div. Nov. 18, 2019), New Jersey Transit (“NJT”) defeated the claim of several of its insurers that a $100 million flood sublimit applied to its Superstorm Sandy damages and recovered the full $400 million limits of its property insurance tower. The decision is a big win for the beleaguered transit agency, and for insurance professionals working with complex insurance towers, the decision highlights critical underwriting issues that can dramatically affect the amount of risk transferred by the policyholder or assumed by the insurer. In NJ Transit, NJT secured a multi-layered property insurance program providing $400 million in all-risk coverage. The first and second layers provided $50 million each, the third and fourth layers provided $175 million and $125 million, respectively, with several insurers issuing quota shares in each layer. The program contained a $100 million flood sublimit, and “flood” was defined to include a “surge” of water. The program did not contain a sublimit for damage caused by a “named windstorm,” which was defined to include “storm surge” associated with a named storm. After NJT made its Superstorm-Sandy claim, some of the third- and fourth-layer insurers advised NJT that the $100 million flood sublimit applied to bar coverage under their policies. NJT sued these excess insurers and won at the trial and appellate levels. In holding that the $100 million flood sublimit did not apply, the court applied the rule of construction that the specific definition of “named windstorm,” which included the terms “storm surge” and “wind driven water,” controlled over the policies’ more general definition of “flood.” In ascertaining the parties’ intent, the court noted that the omission of the term “storm surge” in the definition of “flood” evidenced an intention that the flood sublimit would not apply to storm surges. Based on this finding, the court rejected several arguments made by the insurers that other policy provisions evidenced the parties’ intent to apply the flood sublimit to all flood-related losses, regardless of whether the loss was caused by a storm surge. Read the court decision
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Reprinted courtesy of Traub Lieberman

Following California Law, Federal Court Adopts Horizontal Allocation For Asbestos Coverage

May 19, 2014 — Tred R. Eyerly – Insurance Law Hawaii
Following California law, the federal district court adopted horizontal allocation to settle a dispute among carriers for an insured sued for selling asbestos products. New England Fire Ins. Corp. v. Ferguson Enterprises, Inc., Civil No. 3:12cv948 (D. Conn. April 8, 2014) [ruling here] The insured was a California-based corporation that sold plumbing supply products that contained asbestos. The insured was named in numerous asbestos-related lawsuits that were filed largely in California. The insured had primary and excess coverage for bodily injury claims. New England Fire Insurance issued an excess policy to the insured. The policy provided the insurer would be liable for the ultimate new loss in excess of the insureds underlying limit, which was defined as the amount equal to the limits of the underlying insurance, plus the applicable limits of any other underlying insurance collectible by the insured. 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

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