Fairfield Connecticut Building Expert Directory

Will Colorado Pass a Construction Defect Reform Bill in 2016?

December 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to blogger Jill Jamieson-Nichols of the Colorado Real Estate Journal, another construction defects bill may be debated in Colorado next year. Representative Dan Pabon told Jamieson-Nichols that “the answer lies in ‘thinking about the insurance piece’ so condominium developers can afford insurance against litigation that might arise.” She also stated that the city of Denver is considering ways to increase funding to increase affordable housing in the area. Read the court decision
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School Board Sues Multiple Firms over Site Excavation Problem

February 12, 2013 — CDJ STAFF
A West Virginia school board has filed a lawsuit against four companies over the construction of the Lewisburg Elementary School. The main allegation is that Carpenter Reclamation Inc. excavated the site deeper than was called for, which then incurred greater expenses for the subsequent contractors, and further that the liner installed by Carpenter Reclamation was defective. The suit also names Western Surety, which issued a performance bond for Carpenter Reclamation. The school board claims that Carpenter’s failure to fix the problem, required $5,800 in evaluation, review, and testing. Further, the plumbing and lead contractors had additional expenses of $10,587 and $212,645 because of the deeper foundation. The school board has also named these firms, Dougherty Company, Inc. and Swope Construction, in the lawsuit. Ron Mallory, the president of Swope Construction said that the school board’s dispute was “with the site contractor, not with us,” noting that they did corrective work under a change order. Read the court decision
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Netherlands’ Developer Presents Modular Homes for Young Professionals

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine reported that Heijmans, a development and building company based in The Netherlands, believes their new modular home, the Heijmans ONE, is a solution for young professionals looking for an affordable, urban option. “As a designer, I believe prefabricated architecture can beautifully balance quality, experience and economic feasibility,” the project's architect Tim van der Grinten, of Moodbuilders Architecture, told Builder Magazine. “The architecture of this compact house is characterized by natural materials, space, openness and identity. It is a clearly recognizable property that you can make your own.” Read the court decision
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Property Damage, Occurrences, Delays, Offsets and Fees. California Decision is a Smorgasbord of Construction Insurance Issues

November 15, 2017 — Garret Murai - California Construction Law Blog
I read once that 97 percent of cases never go to trial. However, there are still the ones that do. And, then, there are the ones that do both. The following case, Global Modular, Inc. v. Kadena Pacific, Inc., California Court of Appeals for the Fourth District, Case No. E063551 (September 8, 2017), highlights some of the issues that can arise when portions of cases settle and other portions go to trial, the recovery of delay damages on a construction project through insurance, and the recovery of attorneys’ fees. Global Modular, Inc. v. Kadena Pacific, Inc. The U.S. Department of Veterans Affairs contracted with general contractor Kadena Pacific, Inc. (Kadena) to oversee construction of its Center for Blind Rehabilitation in Menlo Park, California. Kadena, in turn, contracted with subcontractor Global Modular, Inc. (Global) to construct, deliver and install 53 modular units totaling more than 37,000 square feet for a contract price of approximately $3.5 million. 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

Legislative Update – The CSLB’s Study Under SB465

March 22, 2018 — John Castro - Construction Law Blog
Following the tragic Berkeley balcony collapse in 2015, the Legislature enacted California Senate Bill 465 which commissioned the Contractors State License Board (“CSLB” or “Board”) to perform a study regarding the efficacy of having contractors report settlements to the Board. In December 2017 the CSLB released their findings in a report. The ultimate conclusion of the report is to recommend to the Legislature that the ability of the CSLB to protect the public “would be enhanced by regulations requiring licensees to report judgments, arbitration awards, or settlement payments of construction defect claims for rental residential units.” Senator Jerry Hill authored SB465, and his office is presently now drafting legislation on settlement reporting based in part on this study. The most troubling concern about the study is transparency. The report references nine exhibits, all of which have been withheld from publication under purposes of confidentiality. Therefore, much of the CSLB’s study must be taken at face value because much of the data they rely on to formulate their conclusions cannot be independently verified. One of the factors that the CSLB undertook in its study was to determine criteria for when a settlement was “nuisance value,” and therefore less important for reporting purposes. The CSLB acknowledged there was no industry-wide definition for “nuisance value,” whether it be in the insurance industry, construction industry, or otherwise. Insurer survey respondents reached a general consensus on aspects of what can constitute a “nuisance value” settlement, including the amount of the settlement and the size of the case. However, the response rate to the insurer survey was only 3.3 percent. In general, the concern with using settlement amount and size of the case as indicative factors is the fact that a large settlement size, for instance, may still constitute a “nuisance value” settlement. One example would be a large settlement figure in a case involving hundreds of homes in multiple subdivisions. Read the court decision
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Reprinted courtesy of John Castro, Gordon Rees Scully Mansukhani LLP
Mr. Castro may be contacted at jcastro@grsm.com

Legal Matters Escalate in Aspen Condo Case

January 28, 2014 — Beverley BevenFlorez-CDJ STAFF
On January 3rd of this year, Chad Abraham reported in the Aspen Daily News that the Ute City building—a condominium on Hopkins Avenue in Aspen, Colorado—“lacks proper entryways to apartments and a basement-level nightclub space for both tenants and the disabled.” The owners, Michael Sedoy and Natalia Shvachko, have been sued by the city after refusing “to allow access to an eastside staircase and elevator for other building residents and disabled patrons of a basement restaurant,” according to the Aspen Daily News. “Their stance has forced the other tenants and the disabled to use a westside, alleyway service entrance, according to the city.” Sedoy and Schvachko’s attorney retorts in court documents “that the city approved of a building map and declarations that allow access through the westside entry in the alley.” Furthermore, in another article by Abraham published in the Aspen Daily News on January 25th, he relates that the owners had filed more than “more than 30 noise complaints with the police and the city’s environmental health department about eateries and bars around their home on Restaurant Row. That led to a trial for the Aspen Brewing Co., which a jury acquitted in about 10 minutes last week.” In addition, the couple is being sued by Mountain Home Window Fashions, the Ute City building general contractor. According to the lawsuit as reported by the Daily Aspen News, Mountain Home claims they are owed $12,332. The owners have counter-sued, alleging “that there were defects in Mountain Home Window Fashions’ work” and that one of the employees “made unauthorized charges on Sedoy’s credit card.” Read the full story, January 3rd article ... Read the full story, January 25th article ... Read the court decision
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Hovnanian Reports “A Year of Solid Profitability”

December 30, 2013 — CDJ STAFF
Hovnanian Enterprises has released its results for its fourth quarter and the twelve months ending in October 2013, which are described by Ara K. Havnanian, the company’s Chairman of the Board, President and Chief Executive Officer as “a year of solid profitability,” which he attributes to “revenue growth, gross margin improvement and operating efficiencies,” as reported by The Wall Street Journal. The company’s total revenues for 2013 were $1.85 billion, a 24.2% increase over the 2012 totals. Home sales totaled 5,930, a 10.7% increase over the prior year. Mr. Hovnanian expects “increased demand for new homes,” and he believes that “our industry is still in the early stages of a housing recovery.” Read the court decision
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Illusory Insurance Coverage: Real or Unreal?

August 24, 2017 — David Adelstein - Florida Construction Legal Updates
In insurance coverage declaratory relief actions, there are times an insured will argue that the insurance policy coverage is illusory. Typically, an insured will raise this illusory argument if its insurer is denying coverage based on an exclusion or limitation in the policy. If a court agrees and deems the coverage illusory, the court will construe the policy to afford coverage to the insured. This is the obvious value of the argument: coverage! “A policy is illusory only if there is an internal contradiction that completely negates the coverage it expresses to provide.” The Warwick Corp. v. Turetsky, 42 Fla.L.Weekly D1797a (Fla. 4th DCA 2017). Thus, if a policy grants coverage in one section but then excludes the same coverage in another section, the coverage would be deemed illusory. Id. quoting Tire Kingdom, Inc. v. First S. Ins. Co., 573 So.2d 885, 887 (Fla. 3d DCA 1990). An illusory policy was found in the following examples: (a) a policy covered certain intentional torts but then excluded intended acts; (b) a policy covered advertising injury but elsewhere excluded advertising injury; and (c) a policy covered parasailing but excluded watercrafts. Id. (citations omitted). In all examples, coverage in the policy was completely swallowed up by an exclusion rendering the coverage illusory. Stated differently, coverage was completely contradicted by an exclusion in the policy rendering the policy absurd. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

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