Fairfield Connecticut Building Expert Directory

Flow-Down Clauses Can Drown Your Project

August 26, 2015 — Craig Martin – Construction Contractor Advisor
Flow-Down or pass-through clauses obligate downstream contractors to certain provisions contained in the up up-stream contractor contracts, such as the contract between the general contractor and the owner. These clauses are contained in every major form subcontract and they can expand the scope of your potential liability. This blog will look at typical language of a flow-down clause, what it means and how you can deal with them. Typical Flow-Down Clause A simple flow down clause might provide:

“The Subcontractor agrees to be bound to the Contractor by the terms of the prime contract and to assume to the Contractor all the obligations and responsibilities that the Contractor by those documents assumes to the Owner, except to the extent that the provisions contained therein are by the terms or by law applicable only to the Contractor.”

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Traub Lieberman Attorneys Recognized as 2023 New York – Metro Super Lawyers® and Rising Stars

October 24, 2023 — Traub Lieberman
Traub Lieberman is pleased to announce that seven Partners from the Hawthorne, NY Office have been selected to the 2023 New York - Metro Super Lawyers list. In addition, one associate has been named to the 2023 Super Lawyers Rising Stars list. 2023 New York – Metro Super Lawyers

Copernicus Gaza – Insurance Coverage
Jonathan Harwood – Professional Liability
Lisa Rolle – Construction Litigation
Christopher Russo – Professional Liability
Lisa Shrewsberry – Professional Liability
Stephen Straus – Insurance Coverage
Richard Traub – Insurance Coverage

2023 New York – Metro Super Lawyers Rising Stars

Aris Rotella – Civil Litigation

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Reprinted courtesy of Traub Lieberman

Attorney’s Fees Entitlement And Application Under Subcontract Default Provision

May 06, 2019 — David Adelstein - Florida Construction Legal Updates
Many subcontracts contain a provision in the default section that reads something to the effect: “Upon any default, Subcontractor shall pay to Contractor its attorney’s fees and court costs incurred in enforcing this Subcontract or seeking any remedies hereunder.” Oftentimes, a party may wonder as to the enforceability of the provision and how it is applied in the context of a dispute between a contractor and its subcontractor where both parties have asserted claims against the other. In an opinion out of the Middle District of Georgia, U.S. f/u/b/o Cleveland Construction, Inc. v. Stellar Group, Inc., 2019 WL 338887 (M.D.Ga. 2019), a subcontractor and prime contractor on a federal construction project each asserted claims against the other in the approximate amount of $4 Million, meaning there was a potential $8 Million swing in the dispute. The subcontract contained a provision entitling the contractor to recover attorney’s fees incurred in enforcing the subcontract or seeking remedies under the subcontract upon any default, identical to the provision above. 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

Construction Slow to Begin in Superstorm Sandy Cases

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
U.S. Senator Robert Mendendez of New Jersey, “has called on government officials to speed up the way home rebuilding aid is reaching thousands of New Jersey victims of Superstorm Sandy,” according to CBS New York. Mendendez stated that out of the 12,000 people who have received “preliminary approval for aid” under New Jersey’s “Reconstruction, Elevation and Mitigation program,” only “2,700 have been told they can begin construction.” The storm occurred more than sixteen months ago. “Part of the problem,” Mendendez told CBS New York, “has been that state officials have placed federally required environmental and historic preservation reviews at the end of the lengthy aid application process. That delays rebuilding because federal rules allow reconstruction work to begin once those reviews are completed.” CBS New York reported that the state announced that those “using their own contractors to rebuild homes can request 50 percent of their grant in advance under the change, which went into effect Monday.” Read the court decision
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Design Professional Liens: A Blueprint

March 12, 2015 — Garret Murai – California Construction Law Blog
If you work in the construction industry in California you’re likely familiar with mechanics liens. But there’s one other type of lien available on construction projects in California: The design professional lien. So, here’s a blueprint of what you need to know. What is a design professional lien? A design professional lien, like a mechanics lien, creates a security interest in real property for services rendered by a design professional prior to commencement of construction. If the design professional is not paid, the design professional can file a lawsuit to foreclose on the design professional lien to have the property sold and the proceeds from the sale used to satisfy the amount of the design professional lien. 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

Quick Note: Subcontractor Payment Bond = Common Law Payment Bond

February 16, 2017 — David Adelstein – Florida Construction Legal Updates
What is a common law payment bond? A common law payment bond is a bond not required or governed by a statute. For example, if a prime contractor provides the owner a payment bond, that bond will be a statutory payment bond. On the other hand, if a subcontractor provides the general contractor with a payment bond, that bond will be a common law payment bond. Why? Because there is not a statute that specifically governs the requirements of a subcontractor’s payment bond given to a general contractor. The subcontractor’s payment bond is aimed at protecting the general contractor (and the general contractor’s payment bond) in the event the subcontractor fails to pay its own subcontractors and suppliers. The subcontractor’s payment bond will generally identify that claimants, as defined by the bond, are those subcontractors and suppliers the subcontractor has failed to pay. This common law payment bond is not recorded in the public records so sometimes it can be challenging for a claimant (anyone unpaid working under the subcontractor that furnished the bond) to obtain a copy of the bond. With that said, an unpaid claimant should consider pursuing a copy of this bond in certain situations, particularly if it may not have preserved a claim against the general contractor’s statutory payment bond. 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

New Jersey Supreme Court Hears Arguments on Coverage Gap Dispute

October 26, 2017 — Austin D. Moody - Saxe Doernberger & Vita, P.C.
On Tuesday, October 24, the New Jersey Supreme Court heard arguments in a 17-year-old battle over whether Honeywell International Inc. (Honeywell) will have to help cover the costs of asbestos-related injury suits that were filed against it after insurers began to universally exclude coverage for asbestos-related liabilities. The Court considered the arguments made by two excess insurers, St. Paul Fire and Marine Insurance Co. (St. Paul) and parent Travelers Casualty and Surety Co. (Travelers), that the Court should overturn a state appellate court’s ruling that Honeywell does not have to contribute to these costs. During the course of this case, Honeywell has sought coverage under more than 300 different policies, ultimately settling with all insurers except St. Paul and Travelers, who had issued a total of 10 excess policies to Honeywell’s predecessor, Bendix Corp. (Bendix) between 1968 and 1983. Honeywell has only sought coverage for claims made by individuals who allege that they were first exposed to asbestos prior to 1987. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

California Contractors – You Should Know That Section 7141.5 May Be Your Golden Ticket

February 18, 2020 — Amy L. Pierce, Mark A. Oertel & John Lubitz - Lewis Brisbois Bisgaard & Smith LLP
Under California’s Contractors’ State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., all contractors’ and subcontractors’ licenses expire two years from the last day of the month in which the license 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 prior to the date the license is set to expire. Most contractors have various controls in place to make sure that the renewal application is timely filed and the required fee paid. Even so, we are only human and mistakes are made, and a renewal application filing deadline can be missed for a variety of reasons, e.g., the licensee’s mailing address has not been updated on the CSLB’s records, the individual responsible for filing the license renewal is out on leave, there has been a death in the family or a serious health issue, etc. Quoting Robert Burns, even “[t]he best-laid schemes of mice and men go oft awry” (To a Mouse, 1786). General contractors should be cognizant of both their and their subcontractors’ license renewal obligations and deadlines. If a licensee missed timely filing its renewal application, Business & Professions Code Section 7141.5may provide some relief. Section 7141.5 provides that the Registrar of Contractors,

“may grant the retroactive renewal of a license if the licensee requests the retroactive renewal in a petition to the registrar, files an application for renewal on a form prescribed by the registrar, and pays the appropriate renewal fee and delinquency fee prescribed by this chapter. This section shall only apply for a period not to exceed 90 days from the due date and only upon a showing by the contractor that the failure to renew was due to circumstances beyond the control of the licensee.”

Reprinted courtesy of Lewis Brisbois Bisgaard & Smith LLP attorneys Amy Pierce, Mark Oertel and John Lubitz 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 Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES