Fairfield Connecticut Building Expert Directory

Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

November 07, 2022 — Matthew DeVries - Best Practices Construction Law
This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And that’s precisely what many lenders say on distressed projects when the owner fails to make final payment and the contractor looks to the bank for funding: “We have no money for you contractor!” In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of the construction loan agreements with the owner. The project involved a $13m construction loan between the lender and the owner to renovate a hotel. The owner and contractor entered into an AIA Contract for the construction management services. During construction the contractor would submit payment applications to the lender, who would review and approve the invoices for payment. The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract. Read the court decision
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Reprinted courtesy of Matthew DeVries, Burr & Forman LLP
Mr. DeVries may be contacted at mdevries@burr.com

Some Work Cannot be Included in a Miller Act Claim

June 28, 2021 — Christopher G. Hill - Construction Law Musings
The Miller Act is close to my heart here at Construction Law Musings. Payment bond claims under the Miller Act help protect subcontractors on construction projects where the national government or its agencies are the owners of the property and therefore mechanic’s liens are unavailable. Even where you follow the proper claims process under this statute, the question remains as to what sorts of costs can be included in the claim. A recent case out of the Eastern District of Virginia federal court in Alexandria, VA gives some insight into the limits of claims under the federal Miller Act. In Dickson v Forney Enterprises, Inc. et. al., the Court looked at the question of whether costs of a project manager’s purely clerical duties can be included and correspondingly whether performing those duties can extend the relevant one-year limitations period for filing suit. 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

Counterpoint: Washington Supreme Court to Rule on Resulting Losses in Insurance Disputes

September 01, 2011 — Douglas Reiser, Builders Council Blog

This is the fourth installment of posts on Vision One v. Philadelphia Indemnity, a Washington Supreme Court case touching on Washington construction and insurance law. After Williams v. Athletic Field got so much coverage, I wished that I had provided a forum for argument on Builders Counsel. While we await that opinion from the Supreme Court, I decided to let a few good writers have at Vision One here on the blog. Last week, attorney Chris Carr weighed in. Today, insurance expert David Thayer returns to give his final impression. David provided an initial peak at the case earlier this year. Thanks to both Chris and David for contributing to the debate.

In August 2011 the Washington Supreme Court will rule on a pair of joined cases that involve critical insurance coverage issues. The outcome of the ruling will impact a large swath of policyholders in Washington State including builders, developers, and homeowners to name a few.

The cases are Vision One vs. Philadelphia Indemnity Insurance and Sprague vs. Safeco. The Vision one case comes from Division Two of the Appellate Court which overturned a lower court decision in favor the plaintiff, Vision One. Division Two decided that the collapse of a concrete pour during the course of construction did not constitute a resulting loss due to faulty workmanship. They further went on to redefine efficient proximate cause in a way that is harmful to policyholders by broadening rather than narrowing the meaning of exclusionary language in Philadelphia’s Builders Risk Policy.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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WSHB Expands into the Southeast

March 18, 2019 — William Silverman – Wood Smith Henning & Berman LLP
National law firm Wood, Smith Henning & Berman LLP (WSHB) announced the opening of its North Carolina office, bringing the total number of offices nationwide to 24. Leading this office is prominent trial attorney William Silverman. Mr. Silverman enjoys a well deserved reputation for consistent results throughout the Carolinas in complex commercial litigation. His practice areas include construction and corporate disputes, insurance coverage, first and third party insurance bad faith litigation, environmental, and catastrophic injury matters. He is an “AV Preeminent” rated attorney by Martindale-Hubbell, and has been listed in Business North Carolina’s Legal Elite in the Young Guns and Construction categories. Mr. Silverman comes to the Firm from a seven year tenure at Wall Templeton, where he served as a Shareholder. Read the court decision
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Reprinted courtesy of William Silverman, Wood Smith Henning & Berman LLP
Mr. Silverman may be contacted at wsilverman@wshblaw.com

Developer Pre-Conditions in CC&Rs Limiting Ability of HOA to Make Construction Defect Claims, Found Unenforceable

August 16, 2021 — Garret Murai - California Construction Law Blog
The Davis-Stirling Common Interest Development Act (Civ. Code §4000, et seq.), also known simply as “Davis-Stirling,” is a statute that applies to condominium, cooperative and planned unit development communities in California. The statute, which governs the formation and management of homeowners associations or HOAs, also governs lawsuits filed by HOAs for construction defects. In the next case, Smart Corners Owner Association v. CJUF Smart Corner LLC, Case No. D076775 (May 20, 2021), the 4th District Court of Appeal addressed the pre-litigation voting requirements of Davis-Stirling and the impact of recent amendments to the Act. The Smart Corners Case In 2004, CJUF Smart Corner LLC contracted with Hensel Phelps Construction Company for the construction of the Smart Corner condominium project, a 19-story mixed-use development with 301 residential units and common areas, in San Diego, California. As part of the development an HOA was formed, the Smart Corner Owner Association. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

ALERT: COVID-19 / Coronavirus-Related Ransomware and Phishing Attacks

April 13, 2020 — Christopher E. Ballod & Sean B. Hoar - Digital Insights Lewis Brisbois' Data Privacy & Cybersecurity Blog
As with other events that attract societal attention – whether it be an international sporting event like the Olympics or a natural disaster like the Australian bush fires - criminals often utilize the events to exploit consumers’ fears and, in turn, compromise the cybersecurity of businesses nationwide. With the advent of the Coronavirus, criminals have begun to take advantage of what consumers expect to receive via email to conduct phishing attacks. Criminals are also expected to take advantage of millions of vulnerable remote connections from employee home networks to their corporate networks. According to Proofpoint Inc., a cybersecurity firm, the use of sophisticated Coronavirus-related “phishing” strategies has been on the rise since January, with new malicious email campaigns surfacing each day. These emails, which appear to come from legitimate organizations, contain content such as advice on combatting the Coronavirus, phony invoices for purchases of face masks and medical supplies, advertisements for products that allegedly treat the illness, and phony alerts from the World Health Organization (WHO) or Centers for Disease Control and Prevention (CDC). When the email recipients open these messages, they unknowingly release malware, which allows the attacker to gain access to their personal information and to compromise the security of their employers’ networks. The recent emergence of Coronavirus-related “phishing” schemes demonstrates that businesses must remain vigilant. Employees and their employers are particularly vulnerable now, in light of the novel nature of the Coronavirus, the paucity of information concerning the illness, and the rapid and significant manner in which it is spreading. Individuals are thirsty for information and advice, and are eager to take any action necessary to protect themselves and their families. Reprinted courtesy of Christopher E. Ballod, Lewis Brisbois and Sean B. Hoar, Lewis Brisbois Mr. Ballod may be contacted at Christopher.Ballod@lewisbrisbois.com Mr. Hoar may be contacted at Sean.Hoar@lewisbrisbois.com Read the court decision
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Contractors Sued for Slip

June 28, 2013 — CDJ STAFF
A man on his way to a safety meeting slipped fell on a gangway. He’s saying that the roofing paper on the gangway was improperly secured and is now suing the contractor for negligence. Donald Methvien claims that his damages exceed $50,000. Read the court decision
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Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy

December 20, 2012 — HEIDI GASSMAN, HIGGINS, HOPKINS, MCLAIN & ROSWELL
The recently decided case of Colorado Pool Systems, Inc. v. Scottsdale Insurance Company (Colo. Ct. App. 10CA2638, October 25, 2012), confirms that absent specific exclusions in the policy, a commercial general liability (“CGL”) policy covers damages to non-defective property arising from a builder’s own defective workmanship. Colorado Pool Systems, Inc. (“Colorado Pool”) was hired as a subcontractor to install a swimming pool at Founders Village Pool and Community Center (“Founders Village”) in Castle Rock, Colorado. After the concrete shell of the pool was placed, some of the rebar frame was found to be too close to the surface. Founders Village demanded that Colorado Pool remove and replace the pool, and Colorado Pool contacted its insurance carrier, Scottsdale Insurance Company (“Scottsdale”), with which Colorado Pool held a CGL policy. After inspecting the pool, Scottsdale’s claims adjuster stated that the insurance policy would cover losses associated with removing and replacing the pool. Read the court decision
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Reprinted courtesy of Heidi Gassman, Higgins, Hopkins, McLain & Roswell, LLC.
Ms. Gassman can be contacted at gassman@hhmrlaw.com

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