Fairfield Connecticut Building Expert Directory

Contractors Should be Aware of Homeowner Duties When Invited to Perform Residential Work

September 26, 2022 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Division 2 of the Court of Appeals[1] recently addressed a property owner’s liability to a contractor who is injured performing work on their property. The action arose from an incident in which Virgil Mihaila, a remodeling contractor, fell from a ladder while installing a new roof on the Troths’ shed and landed on a metal grounding rod that was sticking over a foot out of the ground. Mihaila saw the grounding rod as he was working and recognized the danger, but he claimed that he could not complete the roofing job without encountering it. Although he tried to position his ladder so that he would avoid the grounding rod if he fell, he somehow fell off the ladder and landed on the grounding rod, sustaining multiple rib fractures and a punctured lung. Mihaila filed a complaint against the Troths, alleging that they were negligent in failing to protect him from the danger of the grounding rod sticking out of the ground. The Troths denied that they were negligent and asserted the affirmative defense of contributory negligence. The Troths filed a motion for summary judgment, which the trial court granted, stating that summary judgment was appropriate regarding the Troths’ duty because Mihaila “became aware of the risk, undertook to encounter the risk, and made his own efforts to mitigate the risk.” The trial court denied Mihaila’s motion for reconsideration and Mihaila appealed. Read the court decision
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Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

There Was No Housing Bubble in 2008 and There Isn’t One Now

January 17, 2022 — Ramesh Ponnuru - Bloomberg
Housing markets are red hot, with prices up more than 18% from November 2020 to November 2021. That’s an acceleration over the previous two years, which saw increases of 4% and 8% each. It’s also a faster rate than the U.S. experienced during the housing boom of the 2000s that preceded the Great Recession. That comparison is causing some heartburn. “Are we in another housing bubble?” asked Mark Zandi, chief economist at Moody’s. The consensus, shared by Zandi, is that the answer is no — or, at least, that today’s bubble is different and less dangerous than the last one. Lending standards are more strict than they were 15 years ago, for example, which ought to mean that fewer homeowners are at risk of defaulting if prices fall. Read the court decision
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Reprinted courtesy of Ramesh Ponnuru, Bloomberg

2015 California Construction Law Update

December 31, 2014 — Garret Murai – California Construction Law Blog
Over 2,200 bills were introduced during the second and final year of the 2013-2014 legislative session of which 931 were signed into law. For the design and construction industry, the end of the second session, like the end of the first session, saw a number of new prevailing wage bills signed into law, which again reflected the strong Democratic majorities in both the Assembly and Senate. The end of the second session also saw the enactment of laws consolidating several existing design-build authorization sections and extending the 5% cap on retention for public works projects. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Proposed Changes to Federal Lease Accounting Standards

January 19, 2017 — Susan Elliott & Lori A. Lange - Peckar & Abramson, P.C.
The Federal Accounting Standards Advisory Board (FASAB) has proposed amendments to federal lease accounting standards found within Statement of Federal Financial Accounting Standard (SFFAS) 5, ‘Accounting of Liabilities of the Federal Government,’ and SFFAS 6, ‘Accounting for Property, Plant, and Equipment,’ promulgated by FASAB. The proposals would require entities leasing property to the federal government, such as private landlords, to recognize a lease receivable and deferred revenue at the beginning of the lease term (except on intragovernmental or short-term leases). The proposals are slated to take eff ect in reporting periods following September 30, 2018. PUBLIC COMMENTS ARE DUE JANUARY 6, 2017. The federal government is one of the largest tenants in the country. The General Services Administration (GSA) alone leases space to house over 600,000 government workers. GSA has over 8,000 leases throughout the U.S. Reprinted courtesy of Susan Elliott, Peckar & Abramson, P.C. and Lori A. Lange, Peckar & Abramson, P.C. Ms. Elliott may be contacted at selliott@pecklaw.com Ms. Lange may be contacted at llange@pecklaw.com Read the court decision
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Construction Delays for China’s Bahamas Resort Project

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Wall Street Journal reported that the $3.5 billion resort and casino China’s building in the Bahamas is being undermined by delays and labor crashes, which is “dulling the buzz surrounding the venture and threaten to undermine China's future business.” Once finished, the project “will include 2,200 new hotel rooms, luxury condominiums priced as high as $12 million, a 100,000-square-foot casino and an 18-hole golf course. Singer Lenny Kravitz is designing the nightclub.” Baha Mar, the developers, told the Wall Street Journal that they will not be meeting their December 2014 deadline, and instead are “focused on late spring 2015.” Read the court decision
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Important New Reporting Requirement for Some Construction Defect Settlements

April 17, 2019 — Ian Williamson - Gordon & Rees Construction Law Blog
In response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22. What types of Projects: This requirement applies only if all of the following apply:

A) Residential B) Multi-Family; and C) Rental property

Limitations on Claims – The reporting requirement only applies if all of the following are true:

A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor; B) The claim is for a structural defect; C) The total claim is valued at $1 million (not including investigation costs); D) SB800 does not apply; E) The action was filed after January 1, 2019; and F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).

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Reprinted courtesy of Ian Williamson, Gordon & Rees
Mr. Williamson may be contacted at igwilliamson@grsm.com

Flood Insurance Claim Filed in State Court Properly Dismissed

October 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The insureds' claim for flood coverage filed in state court was properly dismissed by the trial court. Rodriguez-Roble v. Am. Nat'l Prop. & Cas. Co., 2015 La. App LEXIS 1810 (La. Ct. App. Sept. 23, 2015). The insureds' home was damaged by wind, rain and flood water during Hurricane Isac. The insureds provided to American National what they contended was satisfactory proof of their claim. American National failed to make any offers to resolve the claim. The insureds sued in state court, seeking damages under the policy and penalties for American National's alleged bad faith in failing to settle or pay the claim. American National moved to dismiss, arguing that the state court did not have subject matter jurisdiction. American National further argued that under the National Flood Insurance Program, the federal courts had exclusive jurisdiction over the denial and adjustment of flood insurance claims. The trial court agreed that the flood insurance policy was governed by federal law. 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

Homebuilders See Record Bearish Bets on Shaky Recovery

June 18, 2014 — Callie Bost – Bloomberg
Someone thinks the housing rebound is built on shaky foundations. A record 180,000 puts traded on the SPDR S&P Homebuilders (XHB) exchange-traded fund on June 11, according to data compiled by Bloomberg. The contract with the highest ownership pays off in the event of a 20 percent slump by December in the ETF tracking stocks from DR Horton Inc. to Williams-Sonoma Inc. Prospects for rising interest rates and an uneven recovery in the housing market have hurt returns this year, sending the SPDR Homebuilders ETF down 3.3 percent. While economic data yesterday showed that builders broke ground on 1 million U.S. homes in May, permits, a proxy for future construction, decreased because of fewer applications for condominiums and apartment buildings. Read the court decision
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Ms. Bost may be contacted at cbost2@bloomberg.net

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