Fairfield Connecticut Building Expert Directory

Terms of Your Teaming Agreement Matter

February 11, 2019 — Christopher G. Hill - Construction Law Musings
These days in construction, and other pursuits, teaming agreements have become a great method for large and small contractors to work together to take advantage of various contract and job requirements from minority participation to veteran ownership. With the proliferation of these agreements, parties must be careful in how they draft the terms of these agreements. Without proper drafting, the parties risk unenforceability of the teaming agreement in the evewnt of a dispute. One potential pitfall in drafting is an “agreement to agree” or an agreement to negotiate a separate contract in the future. This type of pitfall was illustrated in the case of InDyne Inc. v. Beacon Occupational Health & Safety Services Inc. out of the Eastern District of Virginia. In this case, InDyne and Beacon entered into a teaming agreement that provided that InDyne as Prime would seek to use Beacon, the Sub, in the event that InDyne was awarded a contract using Beacon’s numbers. The teaming agreement further provided:

The agreement shall remain in effect until the first of the following shall occur: … (g) inability of the Prime and the Sub, after negotiating in good faith, to reach agreement on the terms of a subcontract offered by the Prime, in accordance with this agreement.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Substitute Materials — What Are Your Duties? What Are Your Risks? (Law Note)

June 27, 2022 — Melissa Dewey Brumback - Construction Law in North Carolina
In managing a project as the design professional, you are called upon to wear many hats. One of those hats is that of material specifier and, at times, substitute material approver. What are your duties in looking at substitute materials? As always, the legal answer is “it depends”. In part, it will depend on your role on the project and what, specifically, the contract says. However, at its most basic, you can be sued for accepting an out of spec substitute material. This is so even if you believed the spec met requirements based on information that the contractor gave you. So, tread carefully in this area. Do not assume any information that the contractor presents to you– take the time to research for yourself, call the manufacturer, and otherwise ensure that the product will work. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

N.J. Governor Signs Bill Expanding P3s

September 04, 2018 — Nick Steingart - Construction Executive
Government entities in New Jersey that enter into public-private partnerships to help finance public construction projects are now required to utilize a project labor agreement (PLA) and pay state prevailing wages, among other requirements. Previously, P3s were only available to state and county colleges, but did not contain prevailing wage or PLA mandates. The new law, Senate Bill 865, allows the state and its subdivisions, including counties, municipalities and school districts, to enter into agreements with private funding sources provided they follow the additional mandates such as abiding by the state’s prevailing wage law and utilizing a union-only PLA for construction of the project. Reprinted courtesy of Nick Steingart, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Steingart may be contacted at steingart@abc.org

Cross-Motions for Partial Judgment on the Pleadings for COVID-19 Claim Denied

May 24, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The court denied both parties' motions for partial judgment on the pleadings seeking clarification of the policy's contamination exclusion. Thor Equities, LLC v. Factory Mut. Ins. Co., 2021 U.S. Dist. LEXIS 62967 (S.D. N.Y. March 31, 2021). Thor was a commercial landlord, renting properties across the country to hundreds of tenants, for use in a variety of businesses, including office space, retail stores, restaurants, and bars. When state governments began shutting down businesses and issuing stay-at-home orders in March 2020, many of Thor's tenants had to close shop and sought abatements or other accommodations. Thor alleged it suffered significant business interruption as a result of the pandemic. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Proposed Legislation for Losses from COVID-19 and Limitations on the Retroactive Impairment of Contracts

July 27, 2020 — Shaia Araghi - Newmeyer Dillion
The COVID-19 pandemic has caused most businesses to temporarily close and, as a result, sustain significant losses. Various states are contemplating the passage of legislation to require carriers to cover claims arising from COVID-19, but case law regarding the constitutionality of such legislation is conflicting. Depending on the facts surrounding retroactive legislation, states may be able to pass an enforceable law leading to coverage. Pennsylvania’s Proposed Legislation for Business Interruption Losses Pennsylvania is one of many states that has proposed legislation to override language in business interruption policies and require coverage from insurance carriers. Pennsylvania House Bill 2372 proposes that any insurance policy that covers loss or property damage, including loss of use and business interruption, must cover the policyholder’s losses from the COVID-19 pandemic.1 It applies to insureds with fewer than 100 employees.2 To enhance its chances to pass constitutional challenges, the House Bill also provides for potential relief and reimbursement through the state’s commissioner.3 Pennsylvania Senate Bill 1127 is broader than House Bill 2372 and most bills proposed in other states and would require indemnification for nearly all insureds.4 The Senate Bill makes important legislative findings and notes that insurance is a regulated industry.5 It essentially provides that an insurance policy insuring against a loss relating to property damage, including business interruption, shall be construed to cover loss or property damage due to COVID-19 or due to a civil authority order resulting from COVID-19.1 The proposed bill redefines “property damage” to include: (1) the presence of a person positively identified as having been infected with COVID-19; (2) the presence of at least one person positively identified as having been infected with COVID-19 in the same municipality where the property is located; or (3) the presence of COVID-19 having otherwise been detected in Pennsylvania. Read the court decision
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Reprinted courtesy of Shaia Araghi, Newmeyer Dillion
Ms. Araghi may be contacted at shaia.araghi@ndlf.com

A Construction Stitch in Time

October 28, 2015 — Christopher G. Hill – Construction Law Musings
It’s a cliche for a reason that “A Stitch in Time Saves Nine.” Why? Because it is almost always cheaper and more efficient in the long run to get something right the first time than to fix it later. This old adage is true in life, and particularly true in the world of construction. Whether it’s measuring twice before making your bid, checking with your subcontractors and suppliers to be sure they haven’t missed anything when giving you a price, or yes (and you knew this was coming), being sure that your contracts are written as they should be and cover the bases. To use another construction related analogy, these types of basic practices create a great foundation for your construction project(s) that will (hopefully) see you through to a successful and profitable construction project. Aside from the last of my examples, how can adding a knowledgeable construction attorney help with laying this foundation? We construction lawyers spend our days either dealing with problems that have occurred (not ideal), anticipating risks that could occur (better, though can lead to a relatively cynical world view), and advising clients before the fact of the potential risks and how to best avoid them (best). Speaking from experience, I would much rather spend my time keeping my construction clients making money and avoiding the pitfalls of the “Murphy’s Law” governed world of construction than spend time with them in court. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

New York’s Second Department Holds That Carrier Must Pay Judgment Obtained by Plaintiff as Carrier Did Not Meet Burden to Prove Willful Non-Cooperation

November 23, 2020 — Craig Rokuson - Traub Lieberman
In the recent case of DeLuca v. RLI Insurance Company, 2020 WL 5931054 (October 7, 2020), the Supreme Court, Appellate Division, Second Department held that RLI had a duty to pay a judgment obtained by an underlying plaintiff against RLI’s insured, MLSC. The underlying plaintiff brought the action directly against the carrier after obtaining a judgment against MLSC, and when the judgment remained unsatisfied, serving RLI with the judgment. As an initial matter, the court found that the direct action by the plaintiff was proper under New York Insurance Law 3420(a), which allows for an injured plaintiff to maintain a direct action against a carrier if a judgment against that carrier’s insured remains unsatisfied for a period of 30 days and the carrier is served with that judgment. In that event, the plaintiff steps into the shoes of the insured and is entitled to the rights of the insured (and is also subject to the carrier’s coverage defenses). Reprinted courtesy of Craig Rokuson, Traub Lieberman Mr. Rokuson may be contacted at crokuson@tlsslaw.com Read the full story... Read the court decision
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Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?

October 15, 2024 — Steven H. Lee - Lewis Brisbois Newsroom
Atlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause. This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause. At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely. Read the court decision
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Reprinted courtesy of Steven H. Lee, Lewis Brisbois
Mr. Lee may be contacted at Steven.Lee@lewisbrisbois.com

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