FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Is Construction Defect Litigation a Cause for Lack of Condos in Minneapolis?

September 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Peter Callaghan writing for the Minn Post, while multi-family residential real estate is “hot” right now, most developers are building apartments rather than condos. Four developers spoke on the topic during Minneapolis City Council Member Lisa Goodman’s monthly “Lunch with Lisa” program. The developers stated that financing is more difficult for condos than it is for apartments, and millennials and baby boomers seem to prefer renting over buying. However, some developers stated that “the 10-year liability exposure for construction defects” was another reason to avoid condo building. However, not all developers avoid condo building in Minneapolis. Jim Stanton, owner of Shamrock Development, said that he still is building condos. Stanton declared that he “has a good relationship with his lender,” and “he hasn’t been sued a lot and has never had a suit reach court.” Read the court decision
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What Is the Best Way to Avoid Rezoning Disputes?

August 30, 2021 — Collier Marsh - Construction Executive
Construction companies and developers are accelerating projects in the southeast and throughout the country as the economy rebounds from the worst of the COVID-19 pandemic. Whether they are building commercial, industrial or residential projects, these developments often require rezoning to maximize an investment. But rezoning disputes can add significant delays and costs to a project and can even defeat the project altogether. There are proactive steps construction companies can take to avoid disputes as they are working to secure rezoning approval, as well after the rezoning is complete. During the initial rezoning process, before a final municipal decision, one of the best practices is to anticipate opposition and address it head-on. As for post-approval disputes, those often come down to how carefully a company followed the local procedures and, where applicable, the local evidentiary requirements. Reprinted courtesy of Collier Marsh, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Marsh may be contacted at colliermarsh@parkerpoe.com

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Repair of Part May Necessitate Replacement of Whole

February 10, 2012 — CDJ STAFF

Judge Gleuda E. Edmonds, a magistrate judge in the United States District Court of Arizona issued a ruling in Guadiana v. State Farm on January 25, 2012. Judge Edmonds recommended a partial summary judgment in favor of the plaintiff.



Ms. Guandiana’s home had water damage due to pluming leaks in September 2004. She was informed that polybutylene pluming in her house could not be repaired in parts “it must be completely replaced.” She had had the plumbing replaced. State Farm denied her claim, arguing that “the tear-out provision did not cover the cost of accessing and replacing those pipes that were not leaking.”



In September 2007, State Farm filed a motion to dismiss. The court rejected this motion, stating that “If Guadiana can establish as a matter of fact that the system that caused the covered loss included all the pipes in her house and it was necessary to replace all the pipes to repair that system, State Farm is obligated to pay the tear-out costs necessary to replace all the pipes, even those not leaking.”



In March 2009, State Farm filed for summary judgment, which the court granted. State Farm argued that “the tear-out provision only applied to ‘repair’ and not ‘replace’ the system that caused the covered leak.” As for the rest of the piping, State Farm argued that “the policy does not cover defective materials.”



In December 2011, Ms. Guadiana filed for summary judgment, asking the court to determine that “the policy ‘covers tear-out costs necessary to adequately repair the plumbing system, even if an adequate repair requires replacing all or part of the system.”



In her ruling, Judge Edmonds noted that Ms. Guadiana’s claim is that “the water damage is a covered loss and she is entitled to tear-out costs necessary to repair the pluming system that caused that covered loss.” She rejected State Farm’s claim that it was not obligated to replace presumably defective pipes. Further, she rejected State Farm’s argument that they were only responsible for the leaking portion, noting “Guadiana intends to prove at trial that this is an unusual case where repair of her plumbing system requires replacement of all the PB plumbing.”



Judge Edmonds concluded by directing the District Court to interpret the tear out issue as “the tear-out provision in State Farm’s policy requires State Farm to pay all tear-out costs necessary to repair the plumbing system (that caused the covered loss) even if repair of the system requires accessing more than the leaking portion of the system.”

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New World to Demolish Luxury Hong Kong Towers in Major Setback

August 04, 2021 — Shawna Kwan - Bloomberg
New World Development Co. will demolish two towers at Hong Kong’s most popular housing development in decades and compensate buyers after finding unexpected defects, in a major setback for the real estate company. The developer will pull down and rebuild the existing floors of Towers 1 and 8 at its Pavilia Farm III project near Tai Wai station after it found the concrete strength in some areas did not meet design requirements, the Hong Kong-based company said in a statement. Shares of New World fell as much as 4.8% Thursday in Hong Kong, the most in more than seven months, before recovering to close 3.9% lower. Read the court decision
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Reprinted courtesy of Shawna Kwan, Bloomberg

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Know and Meet Your Notice Requirements or Lose Your Payment Bond Claims

May 17, 2021 — Chris Broughton, Jones Walker LLP - ConsensusDocs
Time is of the essence in the construction industry, and failing to provide timely notice of your payment bond claim can end your chance of recovery. Payment bonds guarantee payment for the subcontractors and suppliers who provide labor or materials on covered construction projects. Federal and state statutes governing payment bonds on public projects and the specific terms of non-statutory, private payment bonds have strict notice and timing requirements. Claimants who fail to provide timely notice can forfeit their chance of recovery. This article provides a brief overview of the notice requirements for payment bond claims – who has to give notice, what notice is required, and when you have to give notice. Payment bond protection is a frequent feature in construction. Payment bonds are required on most federal construction projects of over $100,000 under the federal Miller Act. Similar state statutes, typically referred to as “Little Miller Acts,” also require payment bonds on most state and local construction projects. Owners on private projects may require their general contractor to provide a payment bond to protect the property from liens. Finally, general contractors may also require subcontractors to provide payment bonds on public or private projects. Read the court decision
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Reprinted courtesy of Chris Broughton, Jones Walker LLP
Mr. Broughton may be contacted at cbroughton@joneswalker.com

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Note on First-Party and Third-Party Spoliation of Evidence Claims

October 30, 2018 — David Adelstein - Florida Construction Legal Updates
In an earlier posting, I talked about spoliation of evidence. This posting discussed first-party spoliation of evidence which is where a party in a lawsuit has destroyed or lost potentially important documents or evidence. This type of spoliation of evidence does not give rise to an affirmative claim, but could be addressed by the trial court imposing sanctions or giving the devastating adverse inference jury instruction. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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DoD Issues Guidance on Inflation Adjustments for Contractors

August 15, 2022 — Jennifer Harris & Abby Salinas - ConsensusDocs
The Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4. Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract. Reprinted courtesy of Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs) Ms. Harris may be contacted at jharris@pecklaw.com Read the court decision
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California Contractors: Amended Section 7141.5 Provides Important License Renewal Safety Net

July 25, 2021 — Amy L. Pierce, Mark A. Oertel, John Lubitz & Adam B. Wiens - Lewis Brisbois
Under California’s Contractors State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., contractors’ licenses expire two years from the last day of the month in which the license was issued or two years from the date on which the renewed license last expired. The Contractors State License Board (CSLB) sends licensees a renewal application 60 to 90 days in advance of the date the license is set to expire. Even with various controls in place, mistakes happen and a renewal application filing deadline can be missed. During the August 5-6, 2019 Executive, Licensing, and Legislative Committee Meetings, the CSLB discussed proposed amendments to Section 7141.5 to reduce both the burden on it to review applications for retroactive renewal of a license that had not been timely submitted and to provide contractors with some relief from the high burden to establish “the failure to renew was due to circumstances beyond the control of the licensee.” Not long after, the CSLB’s Board of Directors gave staff approval to seek an author for the bill and, on September 29, 2020, Governor Newsom signed Senate Bill 1474 into law, which includes the CSLB’s proposed amendments to Section 7141.5, effective January 1, 2021. Reprinted courtesy of Amy L. Pierce, Lewis Brisbois, Mark A. Oertel, Lewis Brisbois, John Lubitz, Lewis Brisbois and Adam B. Wiens, Lewis Brisbois Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com Mr. Wiens may be contacted at Adam.Wiens@lewisbrisbois.com Read the court decision
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