Fairfield Connecticut Building Expert Directory

Construction Law Alert: Appellate Court Rules General Contractors Can Contractually Subordinate Mechanics Lien Rights

November 26, 2014 — Steven M. Cvitanovic, Jessica M. Lassere Ryland, & Colin T. Murphy - Haight Brown & Bonesteel LLP
In Moorefield Construction, Inc. v. Intervest-Mortgage Investment Co., 230 Cal. App. 4th 146 (4th Dist. 2014), a California appellate court upheld an agreement executed by a general contractor which subordinated its mechanic’s lien to a construction lender’s deed of trust. In 2006, developer DBN Parkside LLC ("DBN") purchased land in San Jacinto, California (the "property") to build a medical complex (the "project"). DBN hired Moorefield Construction, Inc. (“Moorefield”) to act as general contractor and sought funding for the project from Intervest-Mortgage Investment Company (“Intervest”). Prior to the recordation of the construction loan, and unbeknownst to Intervest, Moorefield cleared and grubbed the project site. Pursuant to the construction loan agreement, Intervest required DBN to assign its rights and remedies under the construction contract to Intervest. Under its construction contract, Moorefield agreed to subordinate its lien rights to the construction loan. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys Steven M. Cvitanovic, Jessica M. Lassere Ryland and Colin T. Murphy Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com Read the court decision
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Claims against Broker for Insufficient Coverage Fail

May 10, 2021 — Tred R. Eyerly - Insurance Law Hawaii
After a coverage dispute for damage caused by Hurricane Harvey was settled, the insured's claims against its insurance broker for providing insufficient coverage were dismissed. Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., 2021 U.S. Dist. LEXIS 57452 (S.D. Texas Feb. 26, 2021). The School District suffered $3.5 million in property damage after Hurricane Harvey struck. Its insurers denied coverage and the School District sued. During the litigation, the School District learned that the policies contained an arbitration clause and a New York choice of law provision. Rather than pursue its claims in arbitration, the School District settled with its insurers and sued its broker for failing to obtain insurance without arbitration or choice of law provisions. The broker moved to dismiss The School District claimed that it had to settle with the insurers for less than what it would have settled had the arbitration and choice of law provisions not been in its policies. The court found this novel theory to be based upon pure speculation 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

Lien Attaches To Landlord’s Interest When Landlord Is Party To Tenant Improvement Construction Contract

January 03, 2022 — David Adelstein - Florida Construction Legal Updates
If you are a landlord / lessor, then you want to maximize the protections afforded to you under Florida’s Lien Law in Florida Statute s. 713.10. These protections are designed to protect your property from liens for improvements performed by your tenant / lessee. The intent is that if you comply with s. 713.10, then a tenant improvement contractor’s recourse is against the leasehold interest, and NOT against the interest of the real property (or your interest as the landlord / lessor). Needless to say, it is imperative that a landlord / lessor make efforts to comply with this section when a tenant is performing tenant improvements, even when the landlord is contributing money to those improvements. Section 713.10 provides in material part:

(1) Except as provided in s. 713.12, a lien under this part shall extend to, and only to, the right, title, and interest of the person who contracts for the improvement as such right, title, and interest exists at the commencement of the improvement or is thereafter acquired in the real property. When an improvement is made by a lessee in accordance with an agreement between such lessee and her or his lessor, the lien shall extend also to the interest of such lessor.

(2)(a) When the lease expressly provides that the interest of the lessor shall not be subject to liens for improvements made by the lessee, the lessee shall notify the contractor making any such improvements of such provision or provisions in the lease, and the knowing or willful failure of the lessee to provide such notice to the contractor shall render the contract between the lessee and the contractor voidable at the option of the contractor.

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

History and Gentrification Clash in a Gilded Age Resort

October 05, 2020 — Alex Ulam - Bloomberg
Newport, Rhode Island, is a small New England beachfront town with a permanent population of 26,000 and an amazing collection of historic homes. Billed as “America’s First Resort,” the 350-year-old city on Aquidneck Island hosts more than 3 million tourists every year. They come for the boating, the famous folk and jazz festivals (both canceled this summer), and the architecture. The narrow streets of the Point along the waterfront are lined with hundreds of modest homes from the early 1700s, one of the largest ensembles of colonial architecture in the country. On Historic Hill sits an assortment of grander antebellum, classical and Gothic Revival structures from the latter part of the 18th and early to mid-19th century, many built by Southern plantation owners. Newport also boasts what is probably the most opulent thoroughfare in the country, a several-mile stretch of Bellevue Avenue lined with shade trees and palatial limestone mansions built by Gilded Age robber barons and industrialists. Read the court decision
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Reprinted courtesy of Alex Ulam, Bloomberg

Jason Poore Receives 2018 Joseph H. Foster Young Lawyer Award

July 21, 2018 — Jason Poore - White and Williams LLP
Jason Poore, an associate in the General Litigation Group, recently received the 2018 Joseph H. Foster Young Lawyer Award during the Philadelphia Association of Defense Counsel’s annual meeting. The Joseph H. Foster Young Lawyer Award honors “a young lawyer who best exemplifies the qualities of professionalism and dedication as defense counsel in the practice of law and in the promotion of the highest ideals of justice in the community." Jason continues to make significant contributions to the local bar and community. In addition to serving on the Executive Committee of the Philadelphia Bar Association Young Lawyers Division, he is the creator and Chair of the PBA's Youth Courts Committee. Read the court decision
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Reprinted courtesy of Jason Poore, White and Williams LLP
Mr. Poore may be contacted at poorej@whiteandwilliams.com

Harmon Tower Case Settled Prior to Start of Trial

January 09, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Las Vegas Sun, MGM Resorts International settled with “six of seven contractors in a massive civil breach-of-contract lawsuit over a never-opened Las Vegas Strip tower called the Harmon.” Clark County District Court Judge Elizabeth Gonzalez announced the settlement agreement just before the trial was to begin. The Las Vegas Sun reported that “just a list of exhibits — not the exhibits themselves — filled 100 banker's boxes.” Michael Infuso, Show Canada Inc.’s attorney, stated that “[b]ecause of the complexity of this case, it was going to be impossible to try it.” Read the court decision
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How to Remove a Mechanics Lien from Your Property

March 21, 2022 — Hannah Kreuser - Porter Law Group
It sometimes happens that a contractor or material supplier records a mechanics lien on your property that becomes expired. Other times, the mechanics lien may be wrong, invalid and unenforceable for some reason, serving no legitimate purpose. The contractor or material supplier may be reasonable and release the mechanics lien once these issues are brought to its attention, but the contractor or material supplier may very well refuse to release the mechanics lien when requested. When this happens, what are your options? In California, there are various ways to bring this type of mechanics lien to a court’s attention in the hopes that the court will cause it to be released. Three of the more common methods are: (1) a petition under California Civil Code (“CCC”) § 8480; (2) a petition under California Code of Civil Procedure (“CCP”) § 765.010; or (3) a Lambert motion. This article will briefly discuss each of these methods. Read the court decision
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Reprinted courtesy of Hannah Kreuser, Porter Law Group
Ms. Kreuser may be contacted at hkreuser@porterlaw.com

Insurer in Bad Faith For Refusing to Commit to Appraisal

October 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The court denied State Farm's motion for summary judgment on the insured homeowners' bad faith claim for State Farm's failure to agree to an appraisal. Currie v. State Farm Fire and Cas. Co., 2014 WL 4081051 (E.D. Pa. Aug. 19, 2014). Superstorm Sandy caused a tree to crash in the insureds' home. The loss was reported to State Farm. The State Farm adjuster verbally quoted the roof replacement at more than $100,000. State Farm eventually paid $60,000 for the roof replacement. The insureds' adjuster estimated the loss at $363,804.98. The insureds demanded an appraisal. State Farm rejected the demand because the claim involved certain items for which State Farm did not admit liability, including damage to the interior hardwood floors. State Farm contended that since the dispute went beyond the amount of loss, an appraisal was not an appropriate method of resolution. 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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