FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New York Developer gets Reprieve in Leasehold Battle

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
According to The Real Deal, a “Manhattan Supreme Court judge granted an injunction in favor of Tribeca Mews developer Thurcon Properties, which is fighting to keep the leasehold on several adjacent parcels in connection with a certificate of occupancy.” In 2013, Thurcon Properties was sued by the condo board, who claimed “the certificate of occupancy was pushed back at the building due to a number of construction defects.” The Real Deal further reported that the condo board “claimed the developers sold about 10 units to an outside buyer, and took some of the proceeds for themselves.” Recently, a judge “ordered Feldman Heritage, owner of the ground lease at 125 Church and several adjacent sites, to appear in court on April 30,” because he wants the lease owner “to show why Thurcon should not be given the chance to cure the alleged lease default.” Read the court decision
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Construction Litigation Roundup: “Hold the Pickles, Hold the Lettuce?”

October 02, 2023 — Daniel Lund III - Lexology
Hold the pickles, hold the lettuce? You can even hold the service… or at least proof of it! In a dispute over the construction of a Burger King restaurant in Tupelo, Mississippi, a state court suit by the owner against its general contractor and architect was removed to federal court by one of the defendant parties, on the basis of the diversity of citizenship of the defendant parties from the plaintiff, per 28 U.S.C. § 1331(a). For its part, plaintiff, upon achieving service of its state court complaint against the various defendants, filed a proof of service as to the party which sought to remove the case, but not as to the other defendants (even though the other defendants were served). Once the case was removed to federal court and after the deadline for removal has passed, plaintiff sought to have the matter remanded based on the lack of the consent of the entirety of the defendant group to the removal, in accordance with 28 U.S.C. § 1446 (“When a civil action is removed solely under section 1441(a), all defendants who have been properly joined and served must join in or consent to the removal of the action.”). Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Insurance Company Prevails in “Chinese Drywall” Case

June 17, 2011 — CDJ STAFF

The Louisiana Court of Appeals rejected an appeal to reverse a summary judgment granted to Louisiana Citizens Property Insurance Company. Terrence and Rhonda Ross contracted for a remodel of their home in which Chinese-made drywall was used. When the drywall emitted harmful gasses, the Rosses filed a claim under their insurance policy. This claim was rejected under four exclusions: for faulty materials, latent defect, loss by corrosion, and loss by pollution. After the claim was denied, the Rosses sued Louisiana Citizens.

In April 2010, the lower court granted a summary judgment, followed by a May, 2010 order dismissing the Rosses’ claims against Louisiana Citizens. The Rosses appealed this decision. In the court’s review, they agreed with Louisiana Citizens and the lower court on all counts. Although the Rosses maintained that the drywall was not defective (as it still functioned as drywall), the court ruled that its emission of sulfuric gases was a defect. Further, as it was in place for two years before this became evident, it was also a latent defect. Damage to the Rosses’ home consisted of corrosion damage caused by the pollutants in the drywall.

The Rosses made an additional claim that since their policy covered smoke damage, this should be covered, as the harm was done by sulfuric gases. The court noted that the contract specifies “fumes or vapors from a boiler, furnace, or related equipment,” none of which apply in this case.

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Saudi Prince’s Megacity Shows Signs of Life

September 03, 2019 — Vivian Nereim & Donna Abu-Nasr - Bloomberg
The walls are covered with graffiti in the sleepy fishing village of Khurayba. There are supplications to God, advertisements for vacation rentals and house painters. Near the local school, there’s a scribbled plea: “Open the windows of hope and drive out the despair.” It’s here in northwest Saudi Arabia that Crown Prince Mohammed bin Salman wants investors to put their money to realize his $500 billion vision for the region. Called “Neom,” it promises to be the most freewheeling part of the kingdom, with state-of-the-art resorts and smart technologies run by robots. But it’s also here where the risks to the 33-year-old prince’s grand plan for his country are writ large. Neom is the boldest pillar of a social and economic transformation that so far has seen at least as many delays as successes. Indeed, the question since the prince announced the vast development at an extravaganza in 2017 has been whether it can become a reality. Read the court decision
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Reprinted courtesy of Vivian Nereim & Donna Abu-Nasr, Bloomberg

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Pinnacle Controls in Verano

February 21, 2013 — CDJ STAFF
The California Court of Appeals has applied the California Supreme Court’s recent Pinnacle decision to a new case, Verano Condominium Association v. La Cima Development. As in Pinnacle, La Cima sought to compel arbitration of construction defect claims with a homeowners association. The trial court denied La Cima’s attempt to compel arbitration on the grounds that the arbitration agreement was made with the individual homeowners and not the homeowners association. Further, it was determined that the CC&Rs “were unenforceable due to unconscionability.” La Cima appealed, and the appeals court affirmed in part and reversed in part. After Pinnacle, La Cima sought a review. The Supreme Court of California directed the appeals court to vacate their earlier decision and reconsider, based on Pinnacle. The Fourth Circuit Court has concluded that this conflicted with the ruling in Pinnacle. There, as in Verano, homeowners signed agreements that disputes with the developer would be settled through binding arbitration. The appeals court had found for the community association, but on review, the California Supreme Court reversed this decision. The California Court of Appeals had two issue to consider in this review: whether the arbitration provisions applied to the homeowners association, and whether these provisions were unconscionable. The court concluded that “in light of Pinnacle it is clear the arbitration provisions set forth in the Verano CC&Rs constitute a valid agreement to arbitrate.” On the second question, the Verano CC&Rs were described by the court as “materially indistinguishable” from those in the earlier case. As the state Supreme Court found that those were not unconscionable, clearly neither were these. The case was remanded for further proceedings and La Cima is entitled to recover the costs of the appeal. Read the court decision
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Determining Occurrence for Injury Under Commercial General Liability Policy Without Applying “Trigger Theory”

July 19, 2021 — David Adelstein - Florida Construction Legal Updates
Oftentimes an occurrence in a commercial general liability policy is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” It is this occurrence that causes the bodily injury or property damage that may be covered by the policy. An interesting non-construction case determined an occurrence under a commercial general liability policy occurred when the negligent act occurred irrespective of the date of discovery or the date the claim was discovered or asserted. See Certain Underwriters at Lloyd’s, London Subscribing to Policy No. J046137 v. Pierson, 46 Fla.L.Weekly D1288c (Fla. 4thDCA 2021). This is interesting because the appellate court did NOT apply a “trigger theory” to first determine the occurrence’s policy period. The appellate court found it did not need to determine which “trigger theory” applied to determine the occurrence for the injury and relied on a cited case: “trigger theories are generally used in the context of deciding when damage occurred ‘in cases involving progressive damages, such as latent defects, toxic spills, and asbestosis’ because the time between the ‘injury-causing event (such as defective construction, a fuel leak, or exposure to asbestos), the injury itself, and the injury’s discovery or manifestation can be so far apart.” Pierson, supra, citing and quoting Spartan Petroleum Co. v. Federated Mut. Ins. Co., 162 F.3d 805, 808 (4th Cir. 1998). 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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Miller Act and “Public Work of the Federal Government”

March 01, 2017 — David Adelstein – Florida Construction Legal Updates
The Miller Act applies to the “construction, alteration, or repair of any public building or public work of the Federal Government.” 40 U.S.C. s. 3131. A recent opinion out of the Northern District of Oklahoma sheds light on what the Miller Act means regarding its application to any public work of the Federal Government. See U.S. v. Bronze Oak, LLC, 2017 WL 190099 (N.D.Ok. 2017). If the project is not a public works project of the Federal Government, the Miller Act does not apply. In this case, the Department of Transportation entered into an agreement with the Cherokee Nation where the Department would provide lump sum funding and the Nation would use the money to fund transportation projects. Based on the federal funding, the Nation issued a bid for a transportation project in Mayes County, Oklahoma and the project was awarded to a prime contractor. The prime contractor provided a payment bond that identified the United States as the obligee (as a Miller Act payment is required to do) and stated that it was issued per the Miller Act. Thereafter, the Nation and Mayes County, Oklahoma entered into a Memorandum of Understanding where the County would assume responsibility for the construction and maintenance of the project and the Nation would pay the County an agreed amount upon the completion of the project. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Pile Test Likely for Settling Millennium Tower

October 04, 2021 — Nadine M. Post - Engineering News-Record
A pilot pile program to prove the efficacy of a less-disruptive method for the paused foundation fix at the ailing Millennium Tower in San Francisco could begin the week of Oct. 4. Accelerated settling and tilt—caused by a pile upgrade intended to correct settlement of the 645-ft-tall residential condominium—ceased after Aug. 20, when the engineer-of-record halted the $100-million fix. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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