FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Reminder: Pay if Paid Not All Encompassing (but Could it be?)

December 09, 2019 — Christopher G. Hill - Construction Law Musings
On numerous occasions, I have discussed the need to be careful with so called “pay if paid” clauses in construction contracts. While such clauses are enforceable in Virginia (when phrased correctly), there are exceptions and limitations (for instance in the Miller Act context). One such exception (that I frankly would have thought to be obvious) is that such clauses do not protect a general contractor from paying all subcontractors. Such a clause only protects a general contractor from payment to those subs for whose work the general contractor has not been paid. In other words, if a general contractor has been paid by an owner for a particular subcontractors work, it cannot use the pay if paid clause to deny payment even in the event that other subcontractors were deficient in their work or the owner has failed to pay the general contractor in full. In Precision Contractors Inc. v. Masterbuilt Companies Inc. (PDF) the Fairfax, VA Circuit Court reiterated this principal stating that nothing in the contract suggests that either party to the lawsuit had any intention to shift the risk of non-payment by the owner or non-performance of other subcontractors to the plaintiff (Precision). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Court of Appeals Rules that HOA Lien is not Spurious, Despite Claim that Annexation was Invalid

March 27, 2019 — Jesse Howard Witt - The Witt Law Firm
Today, the Colorado Court of appeals reversed a order that had deemed a homeowner association’s lien to be spurious. The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999. Several years later, the developer repurchased the property through a foreclosure sale. Despite its prior approval of the annexation, the developer refused to pay community maintenance assessments, which prompted the association to record a lien under its covenants and a statutory provision of the Colorado Common Interest Ownership Act (CCIOA). The parties remained in a standoff until 2016, when the Colorado Supreme Court announced two decisions that adopted a stricter standard for annexing property into communities subject to CCIOA. Relying on this new authority, the developer at Stroh Ranch argued that the 1999 annexation was no longer valid. The district court agreed and declared the association’s lien to be spurious. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Mr. Witt may be contacted at www.witt.law Read the full story... Read the court decision
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Orange County Team Obtains Unanimous Defense Verdict in Case Involving Failed Real Estate Transaction

March 25, 2024 — Lewis Brisbois Newsroom
Orange County, Calif. (March 4, 2024) - Orange County Partners Esther P. Holm and Alexandra Anast obtained a unanimous defense verdict in a real estate matter involving a failed real estate transaction. The property at issue, which was located in the West Hollywood Hills and had beautiful views, was undergoing extensive remodeling. There were several bids for its purchase. Ultimately, the plaintiff, a real estate investor, was awarded the purchase. The plaintiff and the seller entered into a real estate purchase agreement, but the plaintiff failed to release the physical contingencies within the 17-day period prescribed by the contract. Instead, the plaintiff demanded a reduction in price, which the seller rejected. The plaintiff then filed a lis pendens on the property, clouding the title and making it impossible for the sellers to sell the property to anyone else. The buyer and seller subsequently engaged counsel. The plaintiff filed the lawsuit against the seller as well as the real estate company and its agents. Prior to trial, the plaintiff and the seller reached a settlement. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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Coverage Under Builder's Risk Policy Properly Excluded for Damage to Existing Structure Only

April 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Tenth Circuit affirmed the District Court's determination that there was no coverage under the builder's risk policy. Gerald H. Phipps, Inc. v. Travelers Prop. Cas. Co. of Am., 2016 U.S. App. LEXIS 2764 (10th Cir. Feb. 16, 2017). GH Phipps Construction Company (GHP) was hired to renovate and expand the University of Denver's library. GHP was completing installation of a new roof on the library when water from melting snow leaked into the building. The water damaged existing drywall and insulation in the stairwells and elevator shafts that GHP planned to preserve and update. Before the snow melt mishap, GHP had completed some preliminary work in the damaged areas to designate locations for future installation of mechanical, plumbing and electrical systems. But GHP had not yet installed any new materials, updated any lighting fixtures, or patched and painted any existing drywall in the damaged areas. 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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Corps Proposes $4.6B Plan to Steel Miami for Storm Surge

June 22, 2020 — Pam Radtke Russell - Engineering News-Record
A $4.6-billion U.S. Army Corps of Engineers proposal to protect Miami from future storm surge, largely by building massive sea walls and elevating infrastructure systems, is the latest of such plans the agency has developed for East Coast communities. Pam Radtke Russell, Engineering News-Record Ms. Russell may be contacted at Russellp@bnpmedia.com Read the full story... Read the court decision
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Portion of Washington State’s Prevailing Wage Statute Struck Down … Again

July 04, 2023 — Brett Hill & Mason Fletcher - Ahlers Cressman & Sleight
In 2018, the Washington Legislature amended its prevailing wages statute adopting S.S.B 5493 and codified as RCW 39.12.015(3). RCW 39.12.015(3) changed how the Washington State Department of Labor and Industries’ industrial statistician set the prevailing wages for employees on public works projects, from a county-by-county basis to a “geographic jurisdiction” basis established in collective bargaining agreements (“CBA”) or if multiple CBAs, the CBA with the higher wage would prevail. This change proved problematic for contractors since it allowed a minority of employees to determine the prevailing wage through side agreements and limited meaningful wage negotiations by industry trade groups. Contrary to the previous rule wherein wages were set by the average or majority wage rate in a certain county (which was normally the collectively bargained wage) and provided some flexibility to the industrial statistician in determining the prevailing wage, now, RCW 39.12.015(3)(a) directs the industrial statistician to “establish the prevailing rate of wage by adopting the hourly wage … paid for the geographic jurisdiction established in [CBAs],” removing flexibility, and requiring the inclusion of CBA (which could encompass multiple counties) wage rates as a part of the prevailing wage formula. Reprinted courtesy of Brett Hill, Ahlers Cressman & Sleight and Mason Fletcher, Ahlers Cressman & Sleight Mr. Hill may be contacted at brett.hill@acslawyers.com Mr. Fletcher may be contacted at mason.fletcher@acslawyers.com Read the court decision
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Real Estate & Construction News Round-Up (09/21/22) – 3D Printing, Sustainable Design, and the Housing Market Correction

October 17, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The first 3D-printed home is under construction, construction contractors could face liability for not securing employee data, the housing market correction continues, and more.

• Sustainable home design has become key focus of builders and homeowners, helping reduce carbon emissions and other environmental impacts. (Kristi Waterworth, U.S.News)
• Construction contractors could face legal consequences for failing to manage employee data correctly. (Robyn Griggs Lawrence, Construction Dive)
• The home price correction continues to spread across the U.S., with an interactive map showcasing local housing markets that have been impacted. (Lance Lambert, Fortune)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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The Independent Tort Doctrine (And Its Importance)

October 24, 2022 — David Adelstein - Florida Construction Legal Updates
A non-construction raises an important legal principle. Here it is because it applies to construction disputes. It actually applies to many business-type disputes. It is based on what is widely referred to as the independent tort doctrine: Florida law does not allow a party damaged by a breach of contract to recover exactly the same contract damages via a tort claim. “It is a fundamental, long-standing common law principle that a plaintiff may not recover in tort for a contract dispute unless the tort is independent of any breach of contract. A plaintiff bringing both a breach of contract and a tort claim must allege, in addition to the breach of contract, “some other conduct amounting to an independent tort.” Bedoyan v. Samra, 47 Fla.L.Weekly D1955a (Fla. 3d 2022) (internal citations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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