Fairfield Connecticut Building Expert Directory

Travelers Insurance Sues Chicago for $26M in Damages to Willis Tower

May 15, 2023 — Annemarie Mannion - Engineering News-Record
Travelers Property Casualty Co. is suing the City of Chicago and its water district for $26 million in damages caused when more than 1 million gallons of Chicago River water flooded into a 110-story skyscraper during a 2020 storm. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story... Read the court decision
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"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties

February 23, 2016 — David A. Harris & Jesse M. Sullivan – Haight Brown & Bonesteel LLP
Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work. General Contractors pass the withholding of retention down to the subcontractors. Thus, if the subcontractor fails to complete its work, or fails to correct deficiencies, the Owner/General Contractor can use the retention to pay the costs of completing or correcting the subcontractor’s work. The contractor must release any retention it receives from the owner within ten days unless a “good faith dispute exists between the direct contractor and the subcontractor.” (Civil Code section 8814.) Where there is a good faith dispute, the contractor “may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” (Civil Code section 8814(c).) If the contractor wrongfully withholds retention, it must not only pay the retention but must also pay the subcontractor “a penalty of 2 percent per month on the amount wrongfully withheld.” The contractor must also pay the subcontractor’s costs and reasonable attorney’s fees incurred in collecting the retention. (Civil Code section 8818.) Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP and Jesse M. Sullivan, Haight Brown & Bonesteel LLP Mr. Harris may be contacted at dharris@hbblaw.com Mr. Sullivan may be contacted at jsullivan@hbblaw.com Read the court decision
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“Since You Asked. . .”

October 15, 2024 — Daniel Lund III - Lexology
… you must now pay. So said a California appellate court, affirming the trial court’s decision against a subcontractor suing for unpaid subcontract sums. Instead of being awarded those unpaid amounts, the subcontractor lost the case and was tagged with a $1.55 million attorney’s fees award and $270,000 costs award in favor of the defendants. What went wrong? California law requires a licensed contractor to maintain at all times proper workers’ compensation insurance coverage. The failure to maintain the coverage and have the certificate of coverage on file with the California Contractors State License Board results in “automatic and immediate suspension” of the contractor license. Retroactive reinstatement of the license may occur only if the contractor provides proof of the insurance within 90 days of the effective date of the insurance certificate – unless the contractor can show that failure to have the certificate on file was “due to circumstances beyond the control of the licensee.” 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

Condo Collapse Spurs Hometown House Member to Demand U.S. Rules

July 19, 2021 — Parker Purifoy - Bloomberg
A Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state. Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements. “We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.” Read the court decision
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Reprinted courtesy of Parker Purifoy, Bloomberg

Walkability Increases Real Estate Values

June 18, 2014 — Beverley BevenFlorez-CDJ STAFF
CNBC reported that environmentally-conscious Millennials are looking for homes that are within walking or biking distance to stores and work. The “areas that offer so-called walkability should see more home buyers and renters than those that don't.” "Cities that want to thrive in our new economic and demographic realities will need to find ways to create and support more of these dynamic, productive walkable districts that are in high demand," Geoff Anderson, CEO of Smart Growth America, told CNBC. Anderson, “in conjunction with George Washington University School of Business, released a new report ranking the walkability of the nation's 30 largest metropolitan areas.” Read the court decision
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Patent or Latent: An Important Question in Construction Defects

October 25, 2013 — CDJ STAFF
Pieter M. O’Leary, writing for the site AVVO offers the advice that whether a construction defect is patent or latent could influence whether or not it’s covered in a construction defect claim. He notes that a “patent defect” is “a construction defect that is ‘readily observable or evident,’” while a “latent defect” is “a construction defect that is present but not readily detectable even with reasonable care.” While this may sound like a simple distinction, he notes that “distinguishing between the two can often be difficult and sometimes highly contested by the various parties in a lawsuit.” The first question is “whether the average consumer, during the course of a reasonable inspection, would discover the defect.” The question arises because “if a defect is hidden and not detectable (latent defect), a longer time period exists for the claimant to file a claim.” Read the court decision
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Cooperating With Your Insurance Carrier: Is It a Must?

January 02, 2024 — Susana Arce - Saxe Doernberger & Vita, P.C.
A majority of insurance policies require the insured to cooperate with the insurer. The cooperation clause generally states, “the insured agrees to Cooperate with us in the investigation, settlement or defense of the suit.” The “cooperation clause” is often an afterthought because once litigation has ensued an insured is focused on other important considerations. However, insureds should not forget that complying with the cooperation clause can make the difference between the insurer covering or denying a claim. The Cooperation Clause in Action The Court in HDI Glob. Specialty SE v. PF Holdings, LLC,1 highlighted the importance of cooperating with an insurance carrier. In the underlying litigation, residents of an apartment complex sued four entities, all insured by the same insurance policy: two were named insureds and two were additional insureds. The primary insurer provided a defense for the named insureds. Read the court decision
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Reprinted courtesy of Susana Arce, Saxe Doernberger & Vita, P.C.
Ms. Arce may be contacted at SArce@sdvlaw.com

Sometimes a Reminder is in Order. . .

June 21, 2021 — Christopher G. Hill - Construction Law Musings
Recently, I was talking with my friend Matt Hundley about a recent case he had in the Charlottesville, VA Circuit Court. It was a relatively straightforward (or so he and I would have thought) breach of contract matter involving a fixed price contract between his (and an associate of his Laura Hooe) client James River Stucco and the Montecello Overlook Owners’ Association. I believe that you will see the reason for the title of the post once you hear the facts and read the opinion. In James River Stucco, Inc. v. Monticello Overlook Owners’ Ass’n, the Court considered Janes River Stucco’s Motion for Summary Judgment countering two arguments made by the Association. The first Association argument was that the word “employ” in the contract meant that James River Stucco was required to use its own forces (as opposed to subcontractors) to perform the work. The second argument was that James River overcharged for the work. This second argument was made without any allegation of fraud or that the work was not 100% performed. 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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