FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Are Construction Contract Limitation of Liability Clauses on the Way Out in Virginia?

March 11, 2024 — Christopher G. Hill - Construction Law Musings
Remember BAE Systems and Fluor? This post is the third here at Construction Law Musings relating to this case which is a seemingly never-ending source for content. In the prior post discussing this case, the Court found that Va. Code 1-4.1:1 which bars waiver of a right to payment before work is performed did not apply because Fluor had provided work before execution of the contract or any change orders. In the most recent opinion in this long-running litigation, and after a motion to reconsider by Fluor that was granted, the Court re-examined this finding along with the contractual language found in the Limitation of Damages (LOD) clause and came to the opposite conclusion regarding certain change orders that remained unpaid by BAE. The Court first looked to the language of the contract itself and specifically the language in the LOD provision that states “Except as otherwise provided in this Subcontract.” The Court then looked at the change order provision and its typical equitable adjustment language and the mandatory nature of the equitable adjustment language. The Court found that the LOD provisions did not apply to change orders both because price increases due to change orders are not “damages” and because of the exception language in the LOD provision itself. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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A Compilation of Quirky Insurance Claims

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Property Casualty 360 showcased five “nutty claims stories” based upon recollections by several insurance professionals. Number four, subtitled, “The Case of the Soaked Survivalists,” described a claim by an elderly couple who “made a $350,000 water-damage claim after heavy rains and an inadequate sump pump ruined what they described as thousands of ‘valuable items’ in their storage area.” However, a claims adjuster discovered during the investigation that the area in question was actually a bomb shelter built during the Cold War era, and the so-called valuable items were actually “soap, toothpaste, canned goods, and more.” The insurer ended up settling for about $200,000. Read the court decision
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Reprinted courtesy of

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Just Because You Caused it, Doesn’t Mean You Own It: The Hooker Exception to the Privette Doctrine

March 06, 2023 — Garret Murai - California Construction Law Blog
We’ve written before about the Privette doctrine, which establishes a presumption that a hirer of an independent contractor delegates to the contractor all responsibility for workplace safety. In other words, if a general contractor hires a subcontractor, the subcontractor is solely responsible for the safety of its workers. There are two major exceptions to the Privette doctrine. The first, the Hooker exception, holds that a hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the worker’s injury. The second, the Kinsman exception, holds that a hirer may be liable for injuries sustained by a worker of an independent contractor if the hirer knew, or should have known, of a concealed hazard on the property that the contractor did not know of and could not have reasonably discovered and the hirer failed to warn the contractor of the hazard. 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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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
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Reprinted courtesy of Johanna Knapschaefer, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Texas City Pulls Plug on Fossil Fuels With Shift to Solar

March 19, 2015 — Christopher Martin – Bloomberg
(Bloomberg) -- A city in the heart of the oil state of Texas is set to become one of the first communities in the U.S. to wean its residents off fossil fuels. The municipal utility in Georgetown, with about 50,000 residents, will get all of its power from renewable resources when SunEdison Inc. completes 150 megawatts of solar farms in West Texas next year. The change was announced Wednesday. It will be the first city to completely embrace clean power in the state, which is the biggest U.S. producer and user of natural gas. More will follow as municipalities seek to insulate themselves from unpredictable prices for fossil fuels, said Paul Gaynor, SunEdison’s executive vice president of North America. Burlington, Vermont, made a similar move with its purchase of a hydroelectric plant last year. Read the court decision
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Reprinted courtesy of Christopher Martin, Bloomberg
Mr. Martin may be contacted at cmartin11@bloomberg.net

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White and Williams Defeats Policyholder’s Attempt to Invalidate Asbestos Exclusions

January 28, 2014 — White and Williams LLP
White and Williams attorneys scored a significant victory for the insurance industry on January 15, 2014, when a federal jury of four men and four women rejected a policyholder’s novel efforts to invalidate asbestos exclusions contained in insurance policies issued between February 1, 1979 and August 1, 1985. In General Refractories Co. v. First State Ins. Co., Civil Action No. 04-CV-3509 (E.D. Pa.), General Refractories Company contended that asbestos exclusions in insurance policies issued by various insurance companies in the late 1970s and 1980s had not been submitted to the Pennsylvania Department of Insurance for approval prior to use and, therefore, were unenforceable. Holding a failure to obtain approval, by itself, would not be sufficient to render the exclusions unenforceable, the Honorable Edmund Ludwig sent the matter to trial to determine whether the Pennsylvania Insurance Commissioner implemented a policy that was uniformly executed by the Insurance Department to disapprove all asbestos exclusions between February 1, 1979 and August 1, 1985, such that the exclusions violated a “dominant public policy.”

Reprinted courtesy of Gregory LoCasale, White and Williams LLP

and Patricia Santelle , White and Williams LLP

Ms. Santelle may be contacted at santellep@whiteandwilliams.com and Mr. LoCasale may be contacted at locasaleg@whiteandwilliams.com. Read the court decision
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Reprinted courtesy of

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Payment Bond Surety Entitled to Award of Attorneys’ Fees Although Defended by Principal

February 01, 2023 — Garret Murai - California Construction Law Blog
For contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond. In Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself. The Cell-Crete Case General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work. 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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EPA Seeks Comment on Clean Water Act Section 401 Certification Rule

July 19, 2021 — Karen Bennett - Lewis Brisbois
The Environmental Protection Agency (EPA) announced that it will revise a 2020 final rule clarifying requirements for water quality certification under the Clean Water Act (CWA). 85 Fed. Reg. 42210 (June 2, 2021). CWA Section 401 requires states and tribes to certify that any discharges associated with a federal permit will comply with applicable state or tribal water quality requirements. In an effort to eliminate 401 certification being used as a tool for delaying or imposing conditions unrelated to protecting water quality on federal permits, the 2020 rule established limits on the scope and timeline for review and required any conditions on certification to be water-quality related. State and Tribal governments and environmental groups challenged the rule, arguing it constrained state and tribal decision-making authority by limiting the term “other appropriate requirements of State law” in CWA Section 401(d) to “water quality requirements” and “point source discharges.” With EPA’s decision to revise the rule, many believe these same scope and timing limitations will be targets for change. Clients with experience, positive or negative, under the 2020 rule should consider submitting comments by the August 2, 2021 deadline. Read the court decision
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Reprinted courtesy of Karen Bennett, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com

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