CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Contractor Sentenced to 7 Years for “Hail Damage” Fraud

November 13, 2013 — CDJ STAFF
The hailstorm might have spared homes in New Jersey, but the contractor didn’t. Marcin Gradziel entered a guilty plea when he was accused of filing fraudulent insurance claims for homes in New Jersey. In order to fool the inspectors from the insurance agency, after homeowners agreed to their pitch, Mr. Gradziel would damage their homes. After admitting this in court, Mr. Gradziel has now been sentenced to seven years in prison. His former employers, Precision Building, has gone out of business after paying restitution to the defrauded insurers. Read the court decision
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Insurer's Motion for Summary Judgment on Business Interruption Claim Denied

September 12, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion to cap a potential business interruption claim after the insured failed to provide documentation was denied. Lake Charles Instruments Inc. v. Scottsdale Ins. Co., 2022 U.S. Dist. LEXIS 116802 (W.D. La. July 2, 2022). Plaintiff operated a business that was damaged during Hurricane Laura on August 27, 2020, and subsequently by Hurricane Delta on October 9, 2020. Plaintiff had a commercial property policy issued by Scottsdale that provided business income coverage of up to $500,000. After Hurricane Laura, plaintiff submitted a claim. Plaintiff requested an advance. Scottsdale paid $50,000 on the business interruption (BI) claim while reserving rights to require full compliance with the policy, including submission of appropriate documentation. Scottsdale continued to request documentation, but none was received. Plaintiff also failed to provide documentation for its BI claim after Hurricane Delta. When documentation was finally provided, Scottsdale disputed that the documentation showed a BI claim that exceeded policy limits. Scottsdale determined the BI claim was below the policy limits. 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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Nevada’s Construction Defect Law

March 05, 2015 — Beverley BevenFlorez-CDJ STAFF
Constructive Dive reported on the effects of Nevada’s new construction defect law, which is a revision of the original 1995 Homeowners Protection Act: “The new rules more tightly define ‘defect,’ strike the requirement for the losing party to pay the other’s legal fees, and require homeowners to be much more specific about the defects they claim.” Furthermore, it reduces “the length of time a homeowner has to make a construction-defects claim at six years, down from the 10-year statute of limitations in the original law.” Arizona, Colorado, Florida, and Washington legislators are debating revising their current construction defect laws, according to Construction Dive. “If the Colorado measure passes, homeowners will have to go through arbitration before they’ll be allowed to sue their builders. The proposal in Washington would require the owner making the claim to have a third-party professional inspect the defect before filing a suit,” Construction Dive reported. Read the court decision
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In Phoenix, Crews Thread Needle With $730M Broadway Curve Revamp

July 31, 2024 — Scott Blair - Engineering News-Record
Motorists scrambling to dart across three lanes of traffic when merging onto the freeway. Vehicles slowing to a crawl due to extremely curved exit ramps. Commuters enduring agonizing backups as three freeways converge in a tight footprint. Bicyclists and pedestrians sweating through long detours to traverse freeways. Reprinted courtesy of Scott Blair, Engineering News-Record Mr. Blair may be contacted at blairs@enr.com Read the full story... Read the court decision
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Retaining Wall Contractor Not Responsible for Building Damage

July 20, 2011 — CDJ STAFF

The Court of Appeals of Indiana ruled on July 8 in the case of Rollander Enterprises, Inc. v. H.C. Nutting Co. Judge Baily wrote the opinion affirming the decision of the trial court.



The case involved an unfinished condominium complex, the Slopes of Greendale, in Greendale, Indiana. Rollander is a real estate development company incorporated in Ohio. One of the issues in the case was whether the case should be settled in the Indiana courts or be tried in Ohio. The project was owned by a special purpose entity limited liability corporation incorporated in Indiana.



Rollander hired Nutting to determine the geological composition of the site. Nutting’s report described the site as “a medium plastic clay containing pieces of shale and limestone.” The court summarized this as corresponding with “slope instability and landslides.” Rollander then hired Nutting to design the retaining walls, which were constructed by Scherziner Drilling.



After cracking was discovered on State Route 1, the walls were discovered to be inadequate. More dirt was brought in and a system of tie-backs was designed to anchor the walls. Not only were the tie-backs unsightly, local officials would not approve the complex for occupancy. Further, the failure of the wall below one building lead to damage of that building.



The court concluded that since almost all events occurred in Indiana, they rejected Rollander’s contention that the case should be tried in Ohio. Further, the court notes “the last event making Nutting potentially liable on both claims was an injury that occurred in Indiana and consequently, under the lex loci delicti analysis, Indiana law applies.”



Nor did the court find that Nutting was responsible for the damage to the rest of the project, citing an Indiana Supreme Court ruling, that “there is no liability in tort to the owner of a major construction project for pure economic loss caused unintentionally by contractors, subcontractors, engineers, design professionals, or others engaged in the project with whom the project owner, whether or not technically in privity of contract, is connected through a network or chain of contracts.”



The court concluded:



Because Rollander was in contractual privity with Nutting, and Indy was connected to Nutting through a chain of contracts and no exception applies, the economic loss rule precludes their recovery in tort. Damage to Building B was not damage to "other property," and the negligent misrepresentation exception to the economic loss rule is inapplicable on these facts. The trial court therefore did not abuse its discretion by entering judgment on the evidence in favor of Nutting on the Appellants' negligence and negligent misrepresentation claims.



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Land a Cause of Home Building Shortage?

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
Diana Olick of CNBC reported that builders are not keeping up with the housing demand due to a lack of supply of developed lots as well as the increasing price of available land. "You have to find the land, you've got to be able to buy it and you've got to persuade someone to let you develop it. The one you hear the most about is the last one," Paul Emrath, vice president of survey and housing policy research at the National Association of Home Builders (NAHB), told CNBC. Olick wrote that “[l]and prices have actually surpassed their peak values in many markets where builders are particularly active, especially in Texas.” Read the court decision
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Seven Key Issues for Construction Professionals to Consider When Dealing With COVID-19

April 13, 2020 — Jason Adams - Linked In
By now every construction professional has been inundated with articles regarding the impacts of COVID-19 on the construction industry. The sheer volume of information is overwhelming and changes by the hour. This article is intended to summarize key issues affecting construction professionals and serve as a general road map for navigating the crisis. 1. Determine Project Status The first consideration is whether the construction projects at issue are allowed to proceed given “shelter in place” and related orders. Generally speaking, Governor Newsom has deemed construction to be essential and, therefore, exempt from California’s “Safer at Home” order. There is some debate as to whether the governor’s order takes priority over contradictory local (City and County) orders. For example, some Northern California counties and the City of Berkeley have issued orders expressly providing that their local orders legally supersede the State order because the local orders are more restrictive. If a local ordinance, public entity representative, or the project owner orders the project to shut down, the parties will need to make a fact specific determination regarding how to proceed at that time. If the project proceeds, employee safety is paramount. In the City of Los Angeles employers are required to develop a “comprehensive COVID-19 exposure control plan” that includes a laundry list of safety requirements. Regardless of the jurisdiction, the parties must err on the side of caution and comply with social distancing (six feet), refrain from holding meetings, and close the project to the public. Anyone who can work remotely should be encouraged to do so. Read the court decision
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Reprinted courtesy of Jason Adams, Gibbs Giden
Mr. Adams may be contacted at jadams@gibbsgiden.com

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Surfside Condo Collapse Investigators Uncover More Pool Deck Deviations

September 12, 2023 — James Leggate - Engineering News-Record
The investigation into the 2021 collapse of the Champlain Towers South condominium in Surfside, Fla., has uncovered more deviations between the as-built conditions of the pool deck and the building’s design. But investigators emphasize their data are still preliminary as they continue to gather and test evidence from the collapse that killed 98 people. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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