Fairfield Connecticut Building Expert Directory

Rhode Island Examines a Property Owner’s Intended Beneficiary Status and the Economic Loss Doctrine in the Context of a Construction Contract

March 18, 2019 — Shannon M. Warren - The Subrogation Strategist
In Hexagon Holdings Inc. v. Carlisle Syntec, Inc. No. 2017-175-Appeal, 2019 R.I. Lexis 14 (January 17, 2019), the Supreme Court of Rhode Island, discussing claims associated with allegedly defective construction, addressed issues involving intended beneficiaries to contracts and the application of the economic loss doctrine. The court held that, based on the evidence presented, the building owner, Hexagon Holdings, Inc. (Hexagon) was not an intended third-party beneficiary of the subcontract between the general contractor (A/Z Corporation) and the subcontractor, defendant McKenna Roofing and Construction, Inc. (McKenna). In addition, the court held that, in the context of this commercial construction contract, the economic loss doctrine applied and barred Hexagon’s negligence claims against McKenna. Approximately nine years after Hexagon entered into a contract with A/Z Corporation for the construction of a building, Hexagon filed suit against A/Z Corporation’s roofing installation subcontractor, McKenna, and the manufacturer of the roofing system. Hexagon alleged that the roof began to leak shortly after McKenna installed it. Notably, Hexagon did not sue A/Z Corporation. Read the court decision
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Reprinted courtesy of Shannon M. Warren, White and Williams
Ms. Warren may be contacted at warrens@whiteandwilliams.com

Georgia Court Clarifies Landlord Liability for Construction Defects

June 02, 2016 — Chadd Reynolds - AHHC Construction Law Blog
In Cowart v. Schevitz, the Georgia Court of Appeals clarified the instances in which an out-of-possession landlord can be liable in a premises liability claim. No. A15A2036, 2016 WL 563114, at *4 (Ga. Ct. App. Feb. 15, 2016). In this case, the plaintiff was leaving a restaurant and injured herself stepping down off of a sidewalk near the bottom of a ramp. The plaintiff filed a premises liability claim against the owner of commercial property (the “landlord”) and the operator of the restaurant (who later settled), seeking medical expenses and costs of litigation. An expert testifying on behalf of the plaintiff stated that the ramp was required to have railings pursuant to building codes and, had the railings been installed on the ramp, the plaintiff’s fall more than likely would not have occurred. The landlord moved for summary judgment, arguing that as an out-of-possession landlord, his liability to third persons for the use of the property by his tenant was precluded under O.C.G.A. § 44-7-14. The trial court denied the motion without comment, and the owner subsequently appealed. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

LAX Construction Defect Suit May Run into Statute of Limitations

December 30, 2013 — CDJ STAFF
Current arguments over the claims made by LAX that Runway 25L was built in a defective manner by Tutor-Saliba/O&G Industries are hinging over whether the airport knew the runway was defective less than four years after the construction was completed. The runway was built almost five years ago, and Tutor-Saliba is claiming that Los Angeles World Airports has delayed too long in making a construction defect complaint. Tutor-Saliba is not conceding that the runway is defective, only that if it were, the airport would have known it earlier. Los Angeles World Airports, which operates LAX, is not commenting on the matter, but Robert Span, an aviation attorney at Steinbrecher & Span, told the Daily Breeze that while “there is a four year statute of limitations for dealing with construction defects, but that’s for what they called patent defects,” and that “there’s a 10-year statute of limitations for construction projects where the defect that is alleged is called latent — something that would not be readily apparent.” Tim Pierce, a construction attorney at K&L Gates LLP described it as “a common defense,” though he said it is “raised in most cases and only works in some.” Read the court decision
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Foreclosure Deficiency: Construction Loan vs. Home Improvement Loan

November 12, 2019 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Helvetica Servicing, Inc., v. Pasquan, 2019 WL 3820015, (8/15/19), the Court of Appeals addressed the distinction between (1) a construction loan (or refinance of same) and (2) a home improvement loan (or refinance of same), as it relates to Arizona’s anti-deficiency statute, A.R.S. §33-729(A). In general, an anti-deficiency statute provides that although a purchase-money lender or a construction lender can – in appropriate circumstances – foreclose on their loan and cause a sale of the property to pay the loan, the lender cannot (if the statutory criteria are met) force the homeowner/borrower to pay the remaining balance still owed on the loan following the foreclosure (known as the deficiency). In other words, if the anti-deficiency rule applies, the lender’s sole remedy to collect on the loan is a foreclosure sale of the property; and the homeowner/borrower’s downside risk is loss of the property in foreclosure; the homeowner/borrower does not have any personal liability to pay the remaining unpaid balance of the loan post-foreclosure. In effect, the homeowner/borrower can simply walk away and not have to repay the loan. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

California Case Adds Difficulties for Contractors & Material Suppliers

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai in his California Law Blog declared that “things just got a lot tougher for contractors and material suppliers in the Golden State.” In his blog, Murai analyzed the recent case Golden State Boring & Pipe Jacking, Inc. v. Eastern Municipal Water District, Case No. E054618 (July 23, 2014), in which “the California Court of Appeals for the Fourth Appellate District found that a subcontractor’s public works payment bond claim was time barred because its stop payment notice was served ‘before’ a notice of completion was recorded.” Murai explained the importance of the ruling and how it changed the status quo: “Whereas before, it was commonly understood that you could serve a stop payment notice ‘during’ construction (after all, that was the point wasn’t it, to stop construction funds before they are paid out), now you may have only have a 30 day window (probably less) to serve a stop notice within 30 days after a notice of completion or notice of cessation is recorded.” Read the court decision
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Ambiguity in Insurance Policy will be Interpreted in Favor of Insurance Coverage

July 19, 2017 — David Adelstein - Florida Construction Legal Updates
An ambiguity in an insurance policy–after reading and interpreting the policy as a whole–will be construed against an insurer. This means an ambiguity will be construed in favor of insurance coverage (for the benefit of the insured) as opposed to against insurance coverage. This does not mean that every insurance policy contains an ambiguity. This also does not mean a court will interpret plain and ordinary words contrary to their conventional meaning or definition. But, as we all know, insurance policies are not the easiest of documents to decipher and ambiguities do exist relating to a particular issue or circumstance to the benefit of an insured. An insured that is dealing with specific insurance coverage issues should make sure they are working with counsel that looks to maximize insurance coverage, even if that means exploring ambiguities that will benefit an insured based on a particular issue or circumstance. An example of an ambiguity in an insurance policy relating to a particular issue that benefitted an insured can be found in the Florida Supreme Court decision of Government Employees Insurance Co. v. Macedo, 42 Fla. L. Weekly S731a (Fla. 2017). This case involved an automobile accident and the interpretation of an automobile liability policy. 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

New EPA Regulation for Phase I Environmental Site Assessments

January 27, 2014 — Beverley BevenFlorez-CDJ STAFF
The EPA recently amended the “’All Appropriate Inquiries Rule’ concerning environmental site assessments of potentially contaminated sites,” reports the Schinnerer Risk Management Blog. Engineers will need to be aware that “Phase I assessments should now reference ASTM International’s E1527-13 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process” in order to comply with the All Appropriate Inquiries Rule.” Read the court decision
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General Release of Contractor Upheld Despite Knowledge of Construction Defects

February 27, 2019 — Garret Murai - California Construction Law Blog
Ah, the elusive Lepus Cornutus, commonly known as the Jackalope. Rarely seen, we may have one in SI 59 LLC v. Variel Warner Ventures, LLC, Court of Appeals for the Second District, Case No. B285086 (November 15, 2018), an interesting case involving a developer, a contractor, a general release, and Civil Code section 1688. SI 59 LLC v. Variel Warner Ventures, LLC In 2005, Variel Warner Ventures, LLC (Variel Warner) entered into a construction contract with Verdugo Management & Investment, Inc. (Verdugo) to construct improvements at an 85 unit apartment complex. Under the terms of the contract, Verdugo agreed to construction the improvements in a good and workmanlike manner in strict compliance with all drawings and specifications and to comply with all laws. It didn’t. The work was defectively flashed, counterflashed, and waterproofed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

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