Fairfield Connecticut Building Expert Directory

Contractors: Beware the Subordination Clause

October 15, 2014 — Garret Murai – California Construction Law Blog
A bit of mechanics lien trivia. What is the only state in the United States in which mechanics liens are a constitutional right? If you answered California, ding, ding. Article XIV of the California Constitution states:

Mechanics, persons furnishing materials, artisans, and laborers of every class, shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and materials furnished; and the Legislature shall provide, by law, for the speedy and efficient enforcement of such liens.

But how does that constitutional right stand up against contractual rights? Not so well it seems. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

25 Days After Explosion, Another Utility Shuts Off Gas in Boston Area

October 30, 2018 — Johanna Knapschaefer - Engineering News-Record
Three hundred thirty-nine homes in Woburn, Mass., were without power on Oct. 8 after National Grid shut off gas meters following the inadvertent over-pressurization of the natural gas line on Oct. 8, according to the Woburn Fire Dept. Read the court decision
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Reprinted courtesy of Johanna Knapschaefer, ENR
ENR may be contacted at ENR.com@bnpmedia.com

ICC/ASHRAE/USGBC/IES Green Model Code Integrates Existing Standards

December 04, 2018 — Nadine M. Post - Engineering News-Record
The release this month of the 2018 edition of the International Green Construction Code marks the first time two sustainability standards developers have joined to foster green buildings and streamline code adoption. The model IgCC is now integrated with ASHRAE’s standard for high-performance buildings. And to reduce green-standard confusion even further, the 2018-IgCC is aligned with the LEED rating system program. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Coverage for Construction Defects Barred By Exclusion j (5)

April 15, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Texas Court Appeal reversed a trial court judgment which found coverage in favor of the contractor based upon exclusion j(5). Dallas Nat'l Ins. Co. v. Calitex Corp., 2015 Tex. App. LEXIS 2002 (Tex. Ct. App. March 3, 2015). Turnkey Residential Group, Inc., was the contractor to construct a twelve-unit townhome complex in Dallas. The owner of the project was Calitex Corporation. Construction began on November 2006. The project was to be completed by Turnkey by October 27, 2007. Calitex filed suit against Turnkey and some of its subcontractors in February 2008. Calitex alleged problems with Turnkey's work included: (1) the stone exterior was not properly treated and leaked, and some areas were left uncovered with stone; and (2) windows leaked. It was further alleged that the quality of materials, labor and craftsmanship did not meet the standards of the contract and resulted in damages. Turnkey submitted a notice of claim to its insurer, Dallas National Insurance Company (DNIC). Coverage was denied. 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

Do Engineers Owe a Duty to Third Parties?

June 10, 2015 — Craig Martin – Construction Contractor Advisor
A Texas Court of Appeals, in USA Walnut Creek, DST v. Terracon Consultants, Inc., recently ruled that an engineer owed a duty to the buyer of an apartment complex, even though the engineer had no contractual relationship with the buyer. This is an expansion of the duty professionals owe on construction projects and could signal a change in the law. In the case, Walnut Creek purchased a three year old apartment complex. A few years after taking possession, Walnut Creek noticed problems with the apartments, including cracking foundations, walls, breaking windows, and out of square door frames. Walnut Creek sued the developer and general contractor, alleging construction defects. The developer claimed that the engineer, Terracon, was at fault and Walnut Creek added Terracon to the lawsuit, asserting that Terracon was negligent in performing engineering services during construction. Terracon asked the court to dismiss the claim, arguing that it did not owe a duty to Walnut Creek. Walnut Creek in turn argued that engineers do owe a duty to subsequent owners. The trial court dismissed the case against the engineer and Walnut Creek appealed. The appellate court reversed the trial court, finding that the engineer did owe a duty to subsequent purchasers. The court seemed persuaded by the allegations that the engineer actually created the construction defects which were the basis for the litigation. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Sinking Buildings on the Rise?

July 01, 2019 — Jason M. Adams - Gibbs Giden
By now everyone in the construction and insurance industries is familiar with the 58-story Millennium Tower building in San Francisco that has sunk 17 inches and tilted another 14 inches to the northwest. Another recent New York lawsuit alleges that a 58-story luxury Manhattan condo high-rise is also sinking and causing significant damage. With construction booming in the Southeast and other areas with questionable soils, sinking building cases may be on the rise. Given this reality, the issue of subsidence should be of paramount importance to every construction and insurance professional when insuring a project. Most insurance carriers will include a subsidence and/or other earth movement exclusion on a commercial general liability ("CGL") quote for insurance as a matter of course. Construction professionals (owners/developers, general contractors, and subcontractors) or their brokers may be under the mistaken impression that they have no choice but to accept these subsidence exclusions as part of a standard construction policy. This is not the case. To the contrary, most insurance carriers are willing to remove subsidence exclusions if the underwriters are provided with acceptable geotechnical/soils reports when considering the project. The insured construction professional often pushes back on the insurance carrier's request for soils reports because the insured sees the request as an unnecessary hassle, expense or unwelcome interference in the job. However, the carrier's soils review is designed to benefit everyone. If potential soils issues are discovered during the underwriting process they can be addressed at the outset of the project rather than after the project is built, which will typically cost substantially more to remedy. Moreover, a thorough analysis of the condition of the soils at the outset of the project allows the risk management team to recognize any potential issues and ensure that the proper coverage is obtained in order to provide protection down the road. Even if the insurance carrier charges more money to sign off on questionable soils after a review of the reports, the slight increase in premium is likely a worthwhile investment in the event of a subsidence loss. The lesson is that the insured should not blindly accept a subsidence exclusion and should negotiate its removal. The insured should provide its broker and the insurance carrier the information they need in order to make a fully-informed decision as it pertains to the soils. Once the insurance carrier has had the opportunity to review and sign off on the condition of the soil, the carrier should feel comfortable enough to remove any subsidence exclusions or other similar earth movement limitations. Subsidence is a relatively straightforward issue to deal with as long as the project team’s lawyers, brokers, risk managers and insurance company underwriters are working together toward the common goal of properly evaluating the risk and adequately insuring the project. This simple cooperative process between the entire risk management team could mean the difference between being covered or not covered in the event of a loss related to earth movement. Jason M. Adams, Esq. is Senior Counsel at Gibbs Giden representing construction professionals (owners/developers, contractors, architects, etc.) in the areas of Construction Law, Insurance Law and Risk Management, Common Interest Community Law (HOA) and Civil Litigation. Adams is also a licensed property and casualty insurance broker and certified Construction Risk & Insurance Specialist (CRIS). Gibbs Giden is nationally and locally recognized by U. S. News and Best Lawyers as among the “Best Law Firms” in both Construction Law and Construction Litigation. Chambers USA Directory of Leading Lawyers has consistently recognized Gibbs Giden as among California’s elite construction law firms. Mr. Adams can be reached at jadams@gibbsgiden.com. The content contained herein is published online for informational purposes only, may not reflect the most current legal developments, verdicts or settlements, and does not constitute legal advice. Do not act on the information contained herein without seeking the advice of licensed counsel. The transmission of information by email, or any transmission or exchange of information over the Internet, or by any of the included links is not intended to create and does not constitute an attorney-client relationship. This publication may not be reproduced or used in whole or in part without written consent of the author. Copyright 2019 © Read the court decision
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Pipeline Safety Violations Cause of Explosion that Killed 8

April 02, 2014 — Beverley BevenFlorez-CDJ STAFF
Bloomberg Business Week reported that “PG&E Corp. (PCG:US), owner of California’s largest utility, was charged with 12 pipeline safety violations by the U.S. government for a 2010 natural gas explosion that killed eight people and left a crater the size of a house.” PG&E was charged “with knowingly and willfully violating the Natural Gas Pipeline Safety Act by failing to test and assess unstable pipelines to determine whether they could fail.” Furthermore, “Federal investigators are studying whether a leaking gas main operated by Consolidated Edison Inc. (ED:US) contributed to an explosion in New York City last month that also claimed eight lives.” Read the court decision
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Business and Professions Code Section 7031, Demurrers, and Just How Much You Can Dance

February 14, 2022 — Garret Murai - California Construction Law Blog
Fights between owners and contractors under Business and Professions Code section 7031 can get nasty and detailed. An owner’s remedy under Section 7031, as courts have stated, can be “harsh[ ],” “draconian” and even “unjust” and damages can be significant. Panterra GP, Inc. v. Superior Court, 2022 WL 289216 (2022), a case decided this past month, is no different. It even involved a disagreement between the very justices deciding the case. The Panterra GP Case Panterra GP, Inc. was a licensed general contractor. Rosedale Bakersfield Retail VI, LLC and Movie Grill Concepts XX, LLC intended to hire Panterra GP to perform renovation work at the Studio Movie Grill in Bakersfield, California, but drafted a construction contract mistakenly listing Panterra Development Ltd., LLP as the contractor on the project. Panterra GP was the general partner of Panterra Development. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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