FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Homeowners Can Release Future, Unknown Claims Against Builders

June 10, 2015 — Edward A. Jaeger, Jr. and William L. Doerler – White and Williams LLP
In Belasco v. Wells, 183 Cal. Rptr.3d 840, 234 Cal. App. 4th 409 (2015), the California Court of Appeals for the Second District addressed the question of whether a homeowner, when settling an administrative complaint against a licensed homebuilder, can release future, unknown claims. Despite the presence of a California statute, Cal. Civ. Code § 1542, stating that a general release does not extend to claims that the releasor does not know about, the court held that the homeowner’s express release of future claims was enforceable. Thus, the homeowner’s release - signed as part of a 2006 settlement of the homeowner’s construction defect claims against the defendant, a homebuilder - barred the homeowner’s 2012 claims against the builder based on latent defects in the roof of the home that the homeowner discovered in 2011. Background The plaintiff, David Belasco, a patent attorney, bought a newly-constructed home from the defendant-builder, Gary Wells, in 2004. Wells holds a Class B General Building Contractor license issued by the Contractors State License Board (the Board). In 2006, Belasco filed a complaint against Wells with the Board based on alleged construction defects in the home. As a result of Belasco’s complaint to the Board, the parties engaged in arbitration. At the arbitration, both parties were represented by counsel. Wells offered to settle the dispute for the sum of $25,000 and Belasco accepted Wells’ offer. Reprinted courtesy of Edward A. Jaeger, Jr., White and Williams LLP and William L. Doerler, White and Williams LLP Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com; Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com Read the court decision
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Boston’s Tunnel Project Plagued by Water

August 11, 2011 — CDJ STAFF

Boston’s Tip O’Neil Tunnel, part of the “Big Dig” project, is suffering from water leaks which has lead to millions of dollars of damage, according to an article in the Boston Globe. The report quotes Frank DePaola, the highway administrator, as likening the water leaks to “three garden hoses.” The project’s chief engineer notes that those “three garden hoses” add up to 17 million gallons a year.



Further, the chief engineer reports notes that the leaks could compromise both safety and structural integrity. Problems have included a 110-pound light fixture that fell in February, ventilation ducts clogged with ice during the winter, and mold in utility rooms and ventilation buildings.

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Congress Considers Pandemic Risk Insurance Act to Address COVID-19 Business Interruptions Losses

May 18, 2020 — Richard W. Brown & Andres Avila - Saxe Doernberger & Vita, P.C.
The draft legislation, entitled the Pandemic Risk Insurance Act of 2020 (“PRIA”), would establish a Federal Pandemic Risk Reinsurance Fund and Program (the “Program”), that is intended to provide a system of shared public and private compensation for business interruption (“BI”) losses resulting from a pandemic or outbreak of communicable disease. PRIA, in its current draft form, is modeled after and in many ways mirrors the Terrorism Risk Insurance Act that was enacted to address catastrophic losses resulting from acts of terrorism. PRIA effectively mandates that participating insurers provide coverage for any business interruption loss resulting from an outbreak of infectious disease or pandemic that is declared an emergency or major disaster by the President and certified by the Secretary of Treasury (the “Secretary”) as a public health emergency. PRIA would be triggered in the case of certified public health emergencies upon the aggregate industry insured losses exceed $250 million dollars, and include an annual aggregate limit capped at $500 billion dollars. The draft bill provides that the Secretary would administer the Program and pay the Federal share of compensation for insured losses, which would be 95% of losses in excess of an applicable insurer annual deductible, once the Program is triggered. The compensation would benefit those insurers that elect to participate in the Program in exchange for a premium paid by the participating insurer for reinsurance coverage under the Program. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Andres Avila, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Mr. Avila may be contacted at ara@sdvlaw.com Read the court decision
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Chinese Billionaire Sues Local Governments Over Project Payment

January 28, 2015 — Bloomberg News
The billionaire founder of closely held China Pacific Construction Group sued six local governments in a bid to force payment of 900 million yuan ($144 million) his company is owed for infrastructure projects. Yan Jiehe said today he was trying to prove a point and winning the lawsuits wasn’t his main goal. Courts in Hebei, Yunnan, Guizhou, Hunan and Shandong provinces accepted the cases, he said in an interview. “We cannot let the governments work without any supervision anymore,” Yan said. “The results of the lawsuits are not that important to me and I care more about rule of law.” Read the court decision
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Reprinted courtesy of Bloomberg News

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Hanover, Germany Apple Store Delayed by Construction Defects

July 23, 2014 — Beverley BevenFlorez-CDJ STAFF
A new Apple store in Hanover, Germany is scheduled to finally open in September after construction problems created delays, according to AppAdvice. Rumor has it that the store may open on September 19th, the same day of the iPhone 6 is expected to go on sale globally. Construction issues included “physical defects, mold, and ventilation issues,” according to AppAdvice. “Black barricades appeared around the Hanover store location in April 2013.” Read the court decision
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Addressing the Defective Stucco Crisis

November 28, 2018 — Wally Zimolong - Supplemental Conditions
I received several emails regarding the expose by Caitlin McCabe and Erin Arvedlund in the Philadelphia Inquirer titled “Rotting Within.” The story outlines the epidemic of defective stucco and other “building envelope” issues in Southeastern Pennsylvania that is causing homes to literally rot from within. Having litigated several of these cases, they are frustrating for both the attorneys that handle them and the homeowners who must deal with the reality that their home is rotting away. The story points to the multiple (and all too common) causes for the epidemic: unskilled subcontractors, lack of oversight and care, and poor construction drawings. The is no quick solution to the crisis and litigation regarding these defects is sure to proliferate. However, there is one potential solution that the story does not cover and which could help alleviate some of the challenges homeowners face in recovering damages for their claims. The Pennsylvania Legislature must act to change the insurance laws in Pennsylvania to make defective construction covered by a developer’s, contractor’s, and subcontractor’s commercial general liability policy (“CGL”). Most homeowners and many attorneys incorrectly assume that defective construction is covered by insurance. This assumption makes sense. If someone operates a car in a negligent manner and hits your car and causes damage, the negligent driver’s insurance company with cover your loss. In reality, Pennsylvania courts follows a minority of states that holds that generally speaking defective workmanship is not a “covered occurrence” under an insurance policy. (There are several exceptions to this rule and thorough discussion is beyond this blog post and would probably bore you.) Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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Eleventh Circuit Finds Professional Services Exclusion Applies to Construction Management Activities

April 29, 2024 — Ashley Kellgren - Traub Lieberman Insurance Law Blog
In Colony Ins. Co. v. Coastal Constr. Mgmt., LLC, 2024 U.S. App. LEXIS 4809 (11th Cir. Feb. 29, 2024), the Eleventh Circuit found the insurer had no duty to defend or indemnify its insured based on a professional services exclusion. In that case, the underlying claims arose out of the construction of a four-story apartment complex. The owner and project developer contracted with the insured to provide construction management services as a construction manager and construction consultant. Several years after the project was completed, the owner filed suit against the architect, general contractor, and the insured alleging numerous defects and deficiencies with respect to the project. The owner asserted claims against the insured for breach of contract and negligence, alleging various failures by the insured in connection with its supervision of construction and failures to properly and timely complete the project, and correct inadequate, defective, and noncomplying work. Colony issued two commercial general liability policies to the insured, both of which contained a professional services exclusion. Although the policy did not expressly define “professional services,” the professional services exclusion provided a non-exhaustive list of examples, including: (2) preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; Read the court decision
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Reprinted courtesy of Ashley Kellgren, Traub Lieberman
Ms. Kellgren may be contacted at akellgren@tlsslaw.com

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Want a Fair Chance at a Government Contract? Think Again

July 13, 2017 — Duane Craig - Construction Informer
If you’ve ever missed out on a government contract, part of the reason might have been because entrenched government contractors gained competitive advantages by under-paying their workers. The Fair Pay & Safe Workplaces executive order was nullified by Congress this year and much of the reporting by the business press presented just one side of the story. Here’s another perspective. When awarding federal contracts the government is supposed to consider each contractor’s compliance with labor laws related to pay, health and safety. But, there is a huge problem with enforcement on a government contract, according to Senator Elizabeth Warren and other observers.

• Some federal contractors frequently underpay their workers violating wage and hour laws. More than 300,000 workers were cheated out of pay while working under federal contracts in the last decade. There were 12,000 companies working on federal contracts that were doing the cheating.
• 692 federal contractors significantly violated federal labor laws, and then repeated the behavior, over and over. The repeat offenders receive millions in taxpayer dollars as they violated safety and health standards. Those violations caused a wide range of physical harm to workers. Dozens of workers died, and countless numbers were exposed to chemicals that cause long term health problems.

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Reprinted courtesy of Duane Craig, Construction Informer
Mr. Craig may be contacted at dtcraig@constructioninformer.com

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