Fairfield Connecticut Building Expert Directory

Where Breach of Contract and Tortious Interference Collide

January 11, 2022 — Christopher G. Hill - Construction Law Musings
Claims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy. In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts: In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim. 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

Righting Past Wrongs Through Equitable Development

January 17, 2022 — Bruce Buckley & Pam Radtke Russell - Engineering News-Record
Standing on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Pam Radtke Russell, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Contingent Business Interruption Claim Denied

April 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for contingent business interruption ("CBI") coverage was denied in Millennium Inorganic Chemicals Ltd. v. Nat. Union Fire Ins. Co. of Pittsburgh Pa., 2014 U.S. App. LEXIS 3096 (4th Cir. Feb. 20, 2014). Millenium processed titanium dioxide, a compound used for its white pigmentation, at its plant in Western Australia. Millennium purchased natural gas to process the titanium dioxide from Alinta Sales Pty Ltd., a natural gas supplier. Alinta purchased gas from Apache Corporation. Once Apache processed the natural gas, it was injected into a pipeline. The gas from Apache's facility was commingled with that obtained from other producers, resulting in a mix of gas in a single pipeline. Alinta had sole ownership of the gas once it entered the pipeline. Under Alinta's contract with Millennium, title to the gas passed to Millenium only at the time of delivery, i.e., when the gas left the pipeline and was delivered to Millennium's facility through a separate delivery line. Millennium had no contract or business relationship with Apache, and the contract it had with Alinta made no reference to Apache. An explosion occurred at Apache's facility causing its natural gas production to cease. As a result, Millennium's gas supply was curtailed, and it was force to shut down its operations for a number of months. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Insurance Policies and Indemnity Provisions Are Not the Same

October 19, 2020 — Garret Murai - California Construction Law Blog
Just because you own a pair of Air Jordans doesn’t make you Michael Jordan. In the next case, Carter v. Pulte Home Corporation, Case No. A154757 (July 23, 2020), the 1st District Court of Appeal denied an insurance carrier’s equitable subrogation claim explaining that an insurer’s obligations under its insurance policy are not the same as an idemnitee’s obligations under an indemnity provision. Or, as aptly put by the Court of Appeal, while a “subrogated insurer is said to ‘stand in the shoes’ of its insured, because it has no greater rights than the insured. Here . . . [the insurer] is seeking to stand in a different, more advantageous set of shoes.” Carter v. Pulte Home Corporation Pulte Home Corporation was sued for construction defects by 38 homeowners in two housing developments. Various subcontractors had worked on the projects, but under their subcontracts, each subcontractor agreed to indemnify Pulte from and against “all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (‘Claims’) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte . . . ” Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

How the Election Could Affect the Housing Industry: Steven Cvitanovic Authors Construction Today Article

October 07, 2016 — Steven M. Cvitanovic – Haight Brown & Bonesteel LLP
Though non-policy issues dominating the news cycle have set this presidential election apart, both Hillary Clinton and Donald Trump have recognized the importance of housing and infrastructure investment. In an article for Construction Today, Partner Steven Cvitanovic outlines several challenges facing the real estate development industry, and analyzes how Clinton and Trump might benefit or harm the industry. Read the court decision
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Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com

No Concrete Answers on Whether Construction Defects Are Occurrences

February 14, 2013 — CDJ STAFF
Aaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.” Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences. Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction. Read the court decision
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BHA Attending the Construction Law Conference in San Antonio, TX

February 18, 2015 — Beverley BevenFlorez-CDJ STAFF
Bert L. Howe & Associates, Inc. (BHA) is proud to be joining with the State Bar of Texas, Construction Law Section as a sponsor and exhibitor at the event, and is excited to announce that they will also be sponsoring a raffle for a $100 Nordstrom gift card to given away at the Conference. Just stop by the BHA booth, and drop your card in the bowl for a chance to win. With offices in San Antonio and Houston, BHA offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in nearly 5,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, civil and structural engineers, and has provided services on behalf of developers, general contractors and subcontractors across the state of Texas. BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA also specializes in coverage, exposure, and delay claim analysis. Download the seminar brochure and register... Read the court decision
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Hawaii Supreme Court Finds Excess Can Sue Primary for Equitable Subrogation

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In responding to a certified question from the U.S. Distric Court, the Hawaii Supreme Court determined that an excess carrier can sue the primary carrier for failure to settle a claim in bad faith within primary limits. St. Paul Fire & Marine Ins. Co. v. Liberty Mut. Ins. Co., 2015 Haw. LEXIS 142 (Haw. June 29, 2015). St. Paul, the excess carrier, and Liberty Mutual, the primary carrier, issued polices to Pleasant Travel Service, Inc. The primary policy covered up to $1 million. Pleasant Travel was sued for damages resulting from an accidental death. St. Paul alleged that Liberty Mutual rejected multiple pretrial settlement offers within the $1 million primary policy limit. A trial resulted in a verdict of $4.1 million against Pleasant Travel. The action settled for a confidential amount in excess of the Liberty Mutual policy limit. St. Paul paid the amount in excess. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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