Fairfield Connecticut Building Expert Directory

Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties

March 13, 2023 — Garret Murai - California Construction Law Blog
California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card. In a case of first impression, the 1st District Court of Appeals, in Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

David M. McLain to Speak at the CLM Claims College - School of Construction - Scholarships Available

July 28, 2016 — David M. McLain – Colorado Construction Litigation
I am happy to have been asked to serve as an instructor at this year's CLM Claims College – School of Construction, to be held at the Marriott Baltimore Waterfront in Baltimore, Maryland on Wednesday, September 7, 2016 through Saturday, September 10, 2016. Overview of the 2016 School of Construction Construction claims present myriad complexities in claim handling. Construction defect lawsuits are often multi-party cases with cross claims and third-party claims between and among the numerous defendants. Insurance coverage is intertwined and complex due to the interplay of primary, excess, wrap, and additional insurers for the numerous defendants. All this is further complicated by statutes and regulations, inconsistent case law and procedural peculiarities throughout the United States. The economic stakes are high as the damages claims can be in the multi-millions. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

Texas Supreme Court: Breach of Contract Not Required to Prevail on Statutory Bad Faith Claim

June 06, 2018 — Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
In USAA Texas Lloyds Company v. Menchaca, the Supreme Court of Texas clarified long-standing confusion regarding whether damages for bad faith are recoverable in the absence of a breach of contract under Texas law. The Menchaca case takes an in-depth dive into decades’ worth of Texas precedent and concludes that, under certain circumstances, an insured can recover policy benefits as damages for bad faith without finding that the insurer was in breach of contract. The story of this case begins with Hurricane Ike in September 2008. Homeowner Gail Menchaca contacted her homeowner’s insurance company, USAA Texas Llloyds Company (“USAA”) to report that the storm had damaged her home. USAA sent an adjuster to investigate the claim, and USAA determined that although the policy covered some of the damage, no benefits would be paid under the policy because the repair estimate did not exceed the policy deductible. Five months later, at Ms. Menchaca’s request, another USAA adjuster inspected the property and reached the same conclusion. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com

Beware of Design Pitfalls In Unfamiliar Territory

September 05, 2022 — Brad Shefrin - Engineering News-Record
$250,000. $1.5 million. $12 million. These are the litigation damage estimates that plaintiffs sought to recover against design professionals who failed to familiarize themselves with local site conditions. Reprinted courtesy of Brad Shefrin, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Caution to GCs! An Exception to Privette Can Leave You Open to Liability

February 01, 2023 — Nicole Whyte - Bremer Whyte Brown & O'Meara LLP
In a recent important decision, Brown v. Beach House Design & Development the Court of Appeal addressed an issue that frequently arises under the Privette doctrine—the extent to which a general contractor can be held liable for injuries to a subcontractor’s employee. The injuries in Brown arose when a window casing subcontractor’s employee fell from a scaffold erected by a plastering subcontractor at a construction site. According to evidence offered by the plaintiff in opposition to a motion for summary judgment filed by the general contractor, the scaffold was not properly secured to the building where the work was being performed. As a result the scaffold was defective and failed, causing the injuries. Read the court decision
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Reprinted courtesy of Nicole Whyte, Bremer Whyte Brown & O'Meara LLP
Ms. Whyte may be contacted at nwhyte@bremerwhyte.com

CDJ’s #2 Topic of the Year: Ewing Constr. Co., Inc. v. Amerisure Ins. Co., 2014 Tex. LEXIS 39 (Tex. Jan.17, 2014)

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Ewing received quite a bit of attention around the blogosphere, and Tred R. Eyerly of Damon Key Leong Kupchak Hastert wrote a nicely succinct case summary on his blog, Insurance Law Hawaii: “In a much anticipated decision, the Texas Supreme Court ruled that a general contractor who agrees to perform its work in a good and workmanlike manner does not "assume liability" for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion.” Read the court decision
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The Private Works: Preliminary Notice | Are You Using the Correct Form?

August 20, 2019 — William L. Porter, Esq. - Porter Law Group
The Private Works – Preliminary Notice form which contractors, subcontractors and suppliers had become accustomed to using for many years changed in 2004. Despite this change in law, many in the construction industry have still not started using the correct new form. Changes in the law, championed by the American Subcontractors’ Association, gave a significant new benefit to subcontractors and suppliers by giving the subcontractor or supplier some expectation of actually receiving notice of when a Notice of Completion or a Notice of Cessation has been recorded on many private works projects. The law also changed the language of the California Preliminary Notice that subcontractors and suppliers must use to protect their mechanics’ lien, bond claim and stop payment notice rights. If Owners do not send out the Notice of Completion as required by law they incur a diminishing of the protections afforded to them when they record a Notice of Completion or Notice of Cessation on many private works projects. The revised law requires private project owners to notify all subcontractors and suppliers within 10 days after recording a Notice of Completion or Notice of Cessation that a Notice of Completion or a Notice of Cessation has actually been recorded. In order to receive such notice, the subcontractor or supplier must properly serve the new form of Preliminary Notice. If this properly occurs and the private project owner provides the required notice, then the subcontractor or supplier will have 30 days to record a Mechanics’ Lien. However, if an owner under such circumstances fails to properly notify a subcontractor or supplier within 10 days after recording a Notice of Completion or Notice of Cessation, then the Subcontractor or supplier will have 90 days to record a Mechanics’ Lien. The details of the law can be found in California Civil Code sections 8190, 8414 and 8416. Read the court decision
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Reprinted courtesy of William L. Porter, Esq., Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Hawaii Federal District Court Rejects Insurer's Motion for Summary Judgment on Construction Defect Claims

November 06, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Taking into consideration a "Revised Occurrence Endorsement," the federal district court determined the insurer had a duty to defend. Gemini Ins Co. v. Constrx Ltd., 2018 U.S. Dist. LEXIS 163453 (D. Haw. Sept. 24, 2018). Constrx Ltd. (CRX) contracted with the AOAO to perform remedial construction repairs to condominium buildings and apartment units. CRX asserted that it completed all work, including charge orders and punch list items and it left the site. CRX was paid less that the contract amount and demanded arbitration against the AOAO. In the arbitration the AOAO relied upon a report by Posard Brock & Associates (PBA) Report which set forth the AOAO's claims against CRX, including corrective work, remaining punch list work, construction delay costs, cost overruns, and other items justifying its payment than less that the contract amount. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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