FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Defect Lawsuit May Affect Home Financing

February 14, 2013 — CDJ STAFF
Homeowners in the Burlingame Ranch I Condominium Association already say they have problems with the siding on their units. The Aspen Business Journal says that their next problem might be with lenders. According to the homeowners’ attorney, Chris Brody, the association attempted to work things out, but this was not successful. Mr. Brody was unaware of any issues with sales or refinancing, but the article notes that “at least one homeowner was told he could not refinance with a Fannie Mae backed loan if there’s pending litigation.” Last year, Fannie Mae did adopt a guideline that made homes involved in construction defect lawsuits ineligible for home loans. Read the court decision
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Hunton Insurance Group Advises Policyholders on Issues That Arise With Wildfire Claims and Coverage – A Seven-Part Wildfire Insurance Coverage Series

June 27, 2022 — Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery Blog
Wildfires destroy millions of acres a year in the United States, spewing smoke across much of the nation. The cost of damage alone over the past several years soars into the hundreds of billions. As wildfires continue to spread, particularly as we enter wildfire season, policyholders’ claims will rise and with that, so too will wildfire insurance coverage issues. Many believe that when a fire damages their property and/or interrupts their business operations, a claim gets submitted and is automatically paid; sadly, this is often not the case. In a seven-part series delving into issues relating to wildfire insurance coverage, the Hunton insurance group provides a comprehensive understanding of the types of policies that may be available, legal and factual issues that may arise, and steps policyholders can take – both in advance and during the claims process – to maximize recovery. The following issues will be addressed:

• Part One: Types of Wildfire-Related Losses and the Policies That May Provide Coverage
• Part Two: Coverage for Smoke-Related Damages
• Part Three: Standard Form Policy Exclusions
• Part Four: Coverage for Supply Chain Related Losses
• Part Five: Valuation of Loss, Sublimits, and Amount of Potential Recovery
• Part Six: Ensuring Availability of Insurance and State Regulations
• Part Seven: How to Successfully Prepare, Submit and Negotiate the Claim

Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth and Yosef Itkin, Hunton Andrews Kurth Mr. DeVries may be contacted at sdevries@HuntonAK.com Mr. Itkin may be contacted at yitkin@HuntonAK.com Read the court decision
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Beam Cracks Cause Closure of San Francisco’s New $2B Transit Center

October 09, 2018 — David Suggs – Bert L. Howe & Associates, Inc.
After two billion dollars and two decades, San Francisco’s newest transportation hub opened on August 11th of this year only to be closed a month later, on September 25th, after a cracked beam was discovered, according to The Real Deal. Later, workers found an additional, though smaller, crack in another beam parallel to the first. The Real Deal described the crack in the first beam: “The Transbay Joint Powers Authority (TJPA) – which built and now operates the center – said the tear was 2.5 feet long and 4.5 inches deep on a 60-foot beam that holds a 5.4-acre rooftop park above a bus deck.” Steel supports are now being installed to reduce the pressure on the beams. While officials have not discovered the cause of the problem, The Real Deal reported several possibilities, including “fabrication problems, installation error, too much weight, or an issue in the initial design.” Read the court decision
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Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District

August 17, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.). California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts. In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction. 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

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Real Estate & Construction News Roundup (8/6/24) – Construction Tech Deals Surge, Senators Reintroduce Housing Bill, and Nonresidential Spending Drops

September 16, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, cybersecurity attacks target contractors, U.S. banks report weaker profits, additional commercial real estate is distressed, and more!

• Spending dropped in almost half of nonresidential subcategories in June, with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
• Despite the decline in investment dollars for construction technology, the number of deals surged by 18% year-over-year, indicating sustained interest and activity in the sector. (Sebastian Obando, Construction Dive)
• As cybersecurity attacks on U.S.-based businesses ramp up, general contractors are not immune. (Jen A. Miller, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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What You Need to Know About CARB’s In-Use Off-Road Diesel Regulations

May 20, 2024 — Garret Murai - California Construction Law Blog
In November 2022, the California Air Resources Board (CARB) approved amendments to . . . wait for it . . . its “In-Use Off-Road Diesel-Fueled Fleet” regulations – that enough hyphens for you – which took effect on January 1, 2024. The purpose of the regulations is to reduce emissions from off-road equipment, many of which are used by construction contractors, such as forklifts, bulldozers, cranes and excavators. Are these new regulations? Yes and no. CARB has regulated in-use off-road diesel-fueled vehicles since 2008 and has periodically amended these regulations. The most recent amendments take effect on January 1, 2024. What vehicles do the regulations apply to? The regulations apply to two classes of vehicles (1) self-propelled off-road diesel-fueled vehicles of 25 horsepower (hp) or more; and (2) two-engine vehicles other than on-road two-engine sweepers. The regulations apply to both owned as well as rented and leased vehicles. As used in this article, the term “vehicle(s)” refers to these two classes of vehicles. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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CAUTION: Terms of CCP Section 998 Offers to Compromise Must Be Fully Contained in the Offer Itself

May 12, 2016 — Jesse M. Sullivan & R. Bryan Martin – Haight Brown & Bonesteel LLP
In Sanford v. Rasnick, (Ct. of Appeal, 1st App. Dist., No. A145704) the First Appellate District addressed whether a CCP § 998 Offer to Compromise requiring plaintiff to execute a release and enter into a separate settlement agreement was valid. Because the settlement agreement could potentially contain additional terms not stated in the CCP 998 Offer, the Court of Appeal held that it was not. Plaintiff alleged he was injured when the 17-year-old Defendant ran a stop sign and struck his motorcycle. Plaintiff sued the 17-year-old and his father (the owner of the vehicle) for vehicular negligence and general negligence. Just after discovery closed, defendants jointly served a CCP § 998 Offer to Compromise to plaintiff in the amount of $130,000. The offer contained a condition requiring that in order to accept, plaintiff must provide a “notarized execution and transmittal of a written settlement agreement and general release. Each party will bear its own fees, costs and expenses.” Mr. Sullivan may be contacted at jsullivan@hbblaw.com Mr. Martin may be contacted at bmartin@hbblaw.com Reprinted courtesy of Jesse M. Sullivan, Haight Brown & Bonesteel LLP and R. Bryan Martin, Haight Brown & Bonesteel LLP Read the court decision
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Is the Event You Are Claiming as Unforeseeable Delay Really Unforeseeable?

September 26, 2022 — David Adelstein - Florida Construction Legal Updates
Is the item or event you are claiming as an unforeseeable, excusable delay really unforeseeable? This is not a trick question. Just because your construction contract identifies items or events that constitute unforeseeable, excusable delay does not mean those items can be used as a blanket excuse or crutch for the contractor. That would be unfair. For instance, it is not uncommon for a construction contract to list as unforeseeable, excusable delay the following events or items: “(i) acts of God or of the public enemy, (ii) act of the Government in either its sovereign or contractual capacity, (iii) acts of another Contractor in the performance of a contract with the Government, (iv) fires, (v) floods, (vi) epidemics, (vii) quarantine restrictions, (viii) strikes, (ix) freight embargoes, (x) unusually severe weather, or (xi) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the Contractor and the subcontractors or suppliers.” See, e.g., F.A.R. 52.249-10(b)(1). While the itemization of excusable delay may be worded differently, the point is there may be a listing as to what items or events constitute excusable delay. An excusable delay would justify additional time and, potentially, compensation to the contractor. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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