FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

How Construction Contracts are Made. Hint: It’s a Bit Like Making Sausage

October 07, 2016 — Garret Murai – California Construction Law Blog
Construction can be a messy affair. In a sense, that’s to be expected when you’re building a complex structure, involving the coordination of several parties and numerous persons, in the natural environment and in the elements, subject to an increasing array of laws, regulations, ordinances and codes, and often at the cost of hundreds if not billions of dollars. So too can construction contracts. There’s the plans, the specifications, the general conditions, the special conditions, the addenda, the prime contract, the subcontracts, the purchase orders, and the change orders, to name just a few of the documents which bind parties, which should ideally be consistent and complimentary with one another, when the reality is that the parties bound to those contracts often have very different interests. Perhaps the analogy goes a little too far afield, but it makes the point, that it can sometimes be a bit like making sausage. The next case, Watson Bowman Acme Corporation v. RGW Construction, Inc., California Court of Appeals for the Fifth District, Case No. F070067 (August 9, 2016), highlights the problems which can arise from the numerous documents which make up the typical construction contract today and the lengths that juries and judges must go to interpret what those agreements mean. Read the court decision
Read the full story...
Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

---

Additional Insured Not Entitled to Reimbursement of Defense Costs Paid by Other Insurers

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Con Edison ("Con Ed") was unsuccessful in arguing for defense costs that had already been paid by other insurers. Consol. Edison Co. of N.Y. v. Lexington Ins. Co., 2015 U.S. Dist. LEXIS 121573 (S.D. N.Y. Sept. 9, 2015). Team, Inc. was under contract with Con Ed to provide repairs to the steam system running below the streets of New York City. The contract required Team to indemnify Con Ed for all claims resulting from personal injury or property damage connected to Team's work. Team also obtained a CGL policy naming Con Ed as an additional insured. The policy was to provide primary coverage. Any insured was responsible for the first $250,000 of costs for investigation and/or defense. On July 1, 2007, a steam distribution main, on which Team had finished working, ruptured, creating a huge crater and sending steam and debris, including asbestos insulation, into the surrounding area. The rupture caused substantial damage to nearby buildings, vehicles and underground infrastructure. It also caused personal injury, including two individuals in a tow truck that fell into the crater and a woman who suffered a fatal heart attack while running from the explosion. Read the court decision
Read the full story...
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

---

25 Days After Explosion, Another Utility Shuts Off Gas in Boston Area

October 30, 2018 — Johanna Knapschaefer - Engineering News-Record
Three hundred thirty-nine homes in Woburn, Mass., were without power on Oct. 8 after National Grid shut off gas meters following the inadvertent over-pressurization of the natural gas line on Oct. 8, according to the Woburn Fire Dept. Read the court decision
Read the full story...
Reprinted courtesy of Johanna Knapschaefer, ENR
ENR may be contacted at ENR.com@bnpmedia.com

---

The Hazards of Carrier-Specific Manuscript Language: Ohio Casualty's Off-Premises Property Damage and Contractors' E&O Endorsements

October 05, 2020 — Theresa A. Guertin & Eric M. Clarkson - Saxe Doernberger & Vita
Risk transfer in the construction industry depends heavily on industry-standard insurance language. Insurance provisions in subcontracts typically reference ISO standard insurance terminology or endorsements in order to guarantee (or, at least, attempt to secure) coverage for upstream parties. The contract may require, for example, that a subcontractor maintains general liability insurance on a “current ISO occurrence form,” and name upstream parties as additional insureds, and both parties will have a general understanding of what that entails for purposes of risk transfer. Problems arise, however, when insurance companies stray from standard language, especially on issues that go to the heart of construction risk transfer. In some instances, provisions that track ISO language may contain subtle changes that seem to meet the contractual insurance requirements. Upon closer scrutiny, it could significantly change how a policy will respond to a given claim. Given the extent of potential liability arising from construction projects, if the insurance programs intended to back up risk transfer and indemnity agreements do not respond as expected, all the potentially liable parties may be left in the lurch. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita and Eric M. Clarkson, Saxe Doernberger & Vita Ms. Guertin may be contacted at tag@sdvlaw.com Mr. Clarkson may be contacted at emc@sdvlaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Construction Law Alert: Unlicensed Contractors On Federal Projects Entitled To Payment Under The Miller Act

May 07, 2014 — Steven M. Cvitanovic and Jessica M. Lassere Ryland - Haight Brown & Bonesteel, LLP
As a matter of first impression, the Ninth Circuit Court of Appeals in Technica LLC ex rel. U.S. v. Carolina Cas. Ins. Co., 12-56539, 2014 WL 1674108 (9th Cir. Apr. 29, 2014), allowed an unlicensed subcontractor to recover from a prime contractor for unpaid services relating to a federal construction project under a federal Miller Act claim. California law otherwise prevents unlicensed contractors from recovering for unpaid work on non-federal projects as a penal measure intended to encourage contractors to maintain a valid license at all times. Technica LLC (“Technica”) worked as a sub-subcontractor on a large federal fence replacement project (the “Project”). Over the course of a year, Technica supplied nearly a million dollars worth of labor, materials, and services for the Project. However, Technica received only $287,861.81 in partial payments for its work. Technica proceeded to file suit in district court against the prime contractor Candelaria Corporation (“Candelaria”) and its payment surety Carolina Casualty Insurance Company (“CCIC”) under the Miller Act to recover amounts owed to it on the subcontract against the payment bond. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel, LLP and Jessica M. Lassere Ryland, Haight Brown & Bonesteel, LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

---

Miller Act Claim for Unsigned Change Orders

June 30, 2016 — David Adelstein – Florida Construction Legal Updates
Contracts and subcontracts often contain language that requires change orders to be in writing and that no change order work shall be performed unless agreed to in advance in a signed change order. Oftentimes change order work is performed but the parties have not complied with the strict requirements of the contract by having this work signed off by the parties in a change order prior to the commencement of the work. Well, can such requirements be waived? If so, can such change orders form the basis of a Miller Act claim? The answer is generally yes provided the party arguing waiver can support the waiver with evidence (that the other party voluntarily relinquished the requirements through its course of conduct / actions). Read the court decision
Read the full story...
Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

---

Yellowstone Park Aims for Quick Reopening After Floods

July 03, 2022 — The Associated Press (Matthew Brown & Amy Beth Hanson) - Bloomberg
Gardiner, Mont. (AP) -- Most of Yellowstone National Park should reopen within the next two weeks — much faster than originally expected after record floods pounded the region last week and knocked out major roads, federal officials said. Yellowstone Superintendent Cam Sholly said the world-renowned park will be able to accommodate fewer visitors for the time being, and it will take more time to restore road connections with some southern Montana communities. Park officials said Sunday they'll use $50 million in federal highway money to speed up road and bridge repairs. There’s still no timetable for repairs to routes between the park and areas of Montana where the recovery is expected to stretch for months. Yellowstone will partially reopen at 8 a.m. Wednesday, more than a week after more than 10,000 visitors were forced out of the park when the Yellowstone and other rivers went over their banks after being swelled by melting snow and several inches of rainfall. Read the court decision
Read the full story...
Reprinted courtesy of Bloomberg

---

The Fair Share Act Impacts the Strategic Planning of a Jury Trial

May 10, 2017 — Andrew Ralston, Jr. - White and Williams LLP
Complex questions surrounding the application of the Fair Share Act, which modified Pennsylvania’s common law “joint and several” liability law, are being taken up by courts in the Commonwealth with increasing frequency. Given the practical consequences of the differences in application between the Act and “joint and several” liability, additional litigation over the application of the Fair Share Act to real world factual situations will undoubtedly arise. Recent Caselaw Currently, in Roverano v. PECO Energy, the Superior Court of Pennsylvania is considering the question of whether, under the Fair Share Act, the jury, or else the trial judge, is responsible for the task of apportioning liability to multiple defendants in a strict liability case. In Roverano – an asbestos case -- a jury awarded the plaintiff $6.3 million. On the verdict sheet were eight joint tortfeasor co-defendants. The judge did not allow the jury to apportion liability to each defendant and, as a result, no guidance was provided by the jury about how much each defendant was to contribute to the award. Instead, the judge merely divided the jury’s award by eight (the number of defendants in the case) and apportioned to each defendant one-eighth of the verdict amount. Read the court decision
Read the full story...
Reprinted courtesy of Andrew Ralston, Jr., White and Williams LLP
Mr. Ralston may be contacted at ralstona@whiteandwilliams.com

---