Fairfield Connecticut Building Expert Directory

Federal Interpleader Dealing with Competing Claims over Undisputed Payable to Subcontractor

September 28, 2017 — David Adelstein - Florida Construction Legal Updates
What do you do if you are holding undisputed money owed to a subcontractor? Well, you make an effort to pay it or tender it! Right? I am never a fan of a client holding undisputed sums without a legitimate contractual basis. There are circumstances, however, where the effort to pay an undisputed payable is not so easy. In fact, it is challenging, as in the below case example where the subcontractor filed for an Assignment for the Benefit of Creditors (referred to as an “ABC”). An ABC, in a nutshell, allows an insolvent entity to file an insolvency action in state court governed by state law and choose its assignee (versus a federal bankruptcy action governed by federal law where a trustee is appointed). One major difference is that there is no automatic stay in an ABC as there is in a federal bankruptcy action. Thus, the insolvent entity can still be sued, but, while that entity is in an ABC, there are many creditors that will not be able to enforce a judgment. (See Florida Statute Ch. 727). 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

One Way Arbitration Provisions are Enforceable in Virginia

October 07, 2019 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I’ve discussed arbitration clauses (pros and cons) as well as the fact that in our fair Commonwealth, contracts are enforced as written (for better or worse). A case out of the Eastern District of Virginia takes both of these observations and uses them to make it’s decision. In United States ex rel. Harbor Constr. Co. v. T.H.R. Enters., the Newport News Division of the Eastern District of Virginia federal court considered the following provision and it’s enforceability:

At CONTRACTOR’s sole election, any and all disputes arising in any way or related in any way or manner to this Agreement may be decided by mediation, arbitration or other alternative dispute resolution proceedings as chosen by CONTRACTOR…. The remedy shall be SUBCONTRACTOR’s sole and exclusive remedy in lieu of any claim against CONTRACTOR’s bonding company pursuant to the terms of any bond or any other procedure or law, regardless of the outcome of the claim. The parties further agree that all disputes under this Subcontract shall be determined and interpreted pursuant to the laws of the Commonwealth of Virginia….

This provision was the crux of the argument made by T. H. R., the Defendant, in making a motion to dismiss or stay the lawsuit for payment filed by Harbor Construction. As background, Harbor Construction contracted with T. H. R. to perform work at Langley Air Force Base. Alleging non-payment of approximately $250,000.00, Harbor filed a complaint with three counts, one under the Federal Miller Act, one for breach of contract, and a third for unjust enrichment. 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

Not So Unambiguous: California Court of Appeal Finds Coverage for Additional Insured

October 11, 2017 — Malcom Ranger-Murdock - Saxe Doernberger & Vita, P.C.
California’s Fourth District Court of Appeal recently determined that manuscript additional insured endorsements (AIEs), which purportedly provided coverage for ongoing operations only, were ambiguous. The court also found the insurer that issued the policies, American Safety Indemnity Co. (American Safety), acted in bad faith due to its systematic efforts to deny coverage to general contractors as additional insureds. In Pulte Home Corp. v. American Safety Indemnity Co.,1 Pulte Home Corporation (Pulte Home), a general contractor, sued American Safety for failure to defend Pulte Home as an additional insured in connection with two underlying construction defect lawsuits. American Safety contended that it did not have a duty to defend Pulte Home because the loss occurred after the construction project was complete and the applicable AIEs did not provide coverage for completed operations, and/or because the policy’s faulty workmanship exclusions applied. The trial court awarded $1.4 million in compensatory and punitive damages to Pulte Home, and American Safety appealed. Read the court decision
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Reprinted courtesy of Malcom Ranger-Murdock, Saxe Doernberger & Vita, P.C.
Mr. Ranger-Murdock may be contacted at mrm@sdvlaw.com

Want to Stay Up on Your Mechanic’s Lien Deadlines? Write a Letter or Two

March 22, 2017 — Christopher G. Hill – Construction Law Musings
90 days. 150 days. 6 months. 30 days. Do these numbers sound familiar? If you read Construction Law Musings regularly, they should be. These are various deadlines relating to the recording and enforcement of mechanic’s liens in Virginia. 90 days from your last work performed (or from the last date of the last month of work in the correct circumstances) sets the outside limit on when a construction company can record a lien on a construction project. 150 days is the “look back” period for what work’s value can be included in that lien. 6 months is the statute of limitations for the filing of an enforcement suit. Finally, 30 days amount of time after your start of work within which you, as a construction professional, must notify a mechanic’s lien agent of your presence on a residential project. Of course, there are always nuances to these rules that need to be taken into account, preferably with the help of your friendly neighborhood construction attorney, before deciding how to proceed in this very picky and “form over function” area of construction law. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Deadline for Hurricane Ian Disaster Recovery Applications Announced

October 17, 2022 — Lewis Brisbois
Washington, D.C. (October 11, 2022) - On Friday, October 7, 2022, the Florida Division of Emergency Management (FDEM) announced that applications for the Federal Emergency Management Agency’s (FEMA) Public Assistance Grant Program are due by October 29, 2022. FEMA provides disaster recovery assistance to eligible individuals, families, governments, and private non-profit entities. However, the process for recovering costs is complicated, and FEMA has broad discretion to determine whether applicants and their expenses are eligible. All too often, failure to understand FEMA regulations or submit sufficient documentation results in FEMA denying applicants’ claims, leaving individuals, local governments, and non-profits to bear the full cost of recovery. While ensuring successful recovery through the FEMA grant program can be challenging, clients can increase their likelihood of success when preparing the initial application and documentation by enlisting experienced legal counsel who understand the FEMA process and regulations. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Waiving The Right to Arbitrate Under Federal Law

November 08, 2021 — David Adelstein - Florida Construction Legal Updates
If there is an arbitration provision in your contract that you want to enforce, you do not want to take action inconsistent with those rights as this could give rise to a waiver argument, i.e., that you waived your rights to arbitrate, particularly if the other party has been prejudiced. Under federal policy and law, establishing waiver requires the party arguing waiver to “bear a heavy burden of proof.” U.S. f/u/b/o John Wayne Construction, G.S.A. Division, LLC v. Federal Ins. Co., 2021 WL 4526727 (M.D.Fla. 2021) quoting Stone v. E.F. Hutton & Co., 898 F.2d 1542, 1543 (11th Cir. 1990). “To determine whether the right to arbitrate has been waived, courts apply a two part test: i) whether, “‘under the totality of the circumstances,’ the party ‘has acted inconsistently with the arbitration right’”; and ii) “whether, by doing so, that party ‘has in some way prejudiced the other party.’” Id. quoting Ivax Corp. V. B. Braun of Am., Inc., 286 F.3d 1309, 1315-16 (11th Cir. 2002). Substantial participation in litigation prior to invoking the right to arbitrate supports a party acting inconsistent with the right to arbitrate. Id. And, “‘[p]rejudice has been found in situations where the party seeking arbitration allows the opposing party to undergo the types of litigation expenses that arbitration was designed to alleviate.’” Id. quoting Morewitz v. W. of Eng. Ship Owners Mut. Prot. & Indem. Ass’n (Luxembourg), 62 F.3d 1356, 1366 (11th Cir. 1995). Hence the heavy burden for a party to support to prove waiver– establishing both substantial participation in litigation that is inconsistent with the right to arbitrate AND prejudice. 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

New Case Alert: California Federal Court Allows Policy Stacking to Cover Continuous Injury

November 23, 2016 — William S. Bennett - Saxe Doernberger & Vita, P.C.
“Stacking” is a practice that is very favorable for policyholders, especially in environmental coverage cases involving extended pollution events. It allows a policyholder to combine the limits of multiple consecutive policies to cover continuous injury claims occurring over multiple policy periods. Without stacking, insurers can limit a policyholder’s recovery to a single policy limit. The Eastern District of California recently decided that a policyholder could stack the limits of six consecutive policies, where the occurrence was a continuous injury spanning all six policy years. Among other rulings, the court determined that the plain language of the policy under dispute did not prevent stacking. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita, P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

John Boyden, Alison Kertis Named “Top Rank Attorneys” by Nevada Business Magazine

July 25, 2022 — John Boyden & Alison Kertis - Lewis Brisbois
Reno, Nev. (June 16, 2022) – Reno Partner John Boyden and Associate Alison Kertis were recently named to Nevada Business Magazine's 2022 list of "Top Rank Attorneys." Formerly known as "Legal Elite," this annual list represents the top talent in the legal industry across the State of Nevada. According to Nevada Business Magazine, thousands of attorneys are nominated for the list and then scored based on the number and type of votes they receive, with votes from outside an attorney's firm receiving more weight. Finally, before being added to the list, the attorneys, and the votes they receive, go through several levels of verification and scrutiny, with each ballot individually reviewed for eligibility and every voting attorney verified with the State Bar of Nevada. The magazine has published this list for the past 15 years. Reprinted courtesy of John Boyden, Lewis Brisbois and Alison Kertis, Lewis Brisbois Mr. Boyden may be contacted at John.Boyden@lewisbrisbois.com Ms. Kertis may be contacted at Alison.Kertis@lewisbrisbois.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES