FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Florida’s Construction Defect Statute of Repose

August 24, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Butler Weihmuller of Katz Craig LLP discussed Florida’s 10-year statute of repose law: “Under § 95.11(3)(c), the action must commence within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.” However, Weihmuller explains that parties may disagree on the specific date For instance, in Busch v. Lennar Homes, LLC, Florida’s 5th DCA recently “reversed a trial court’s dismissal of a homeowner’s construction defect claim that was filed just beyond 10 years after the closing date on the property.” The previous decision had been based on the notion that the contract had been completed upon the date of closing. The 5th DCA declared that “a contract is not completed until both sides of a contract have been performed” and “pointed to the ‘inspection and punch-list clause’ of the contract.” The clause indicated that “[a]ny remaining items that Seller has agreed to correct will be corrected by Seller at Seller’s sole cost and expense prior to closing or at Seller’s option within a reasonable time after closing.” Since not all punch-list items had been completed prior to closing, the 5th DCA held that the contract had not been completed at closing, and therefore the statute of repose did not begin until the punch-items had been accomplished. Read the court decision
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Construction Company Head Pleads Guilty to Insurance and Tax Fraud

December 20, 2012 — CDJ STAFF
The former head of Orients Construction Company and of Melrose Construciton Company, Herlindo Garcia-Merlos, has entered a guilty plea to charges that the gave false informoation to his insurer, New Jersey Manufacturers Insurance Group, for more than three years in order to lower his workers compensation payments. Mr. Garcia-Merlos was able to underpay by more than $315,000 as a result of this deception. Mr. Garcia-Merlos additionally failed to file tax returns for his companies and underreported his wages on his own tax returns. The State of New Jersey is seeking an eight-year prison term and restitution of more than $400,000. Read the court decision
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Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter

October 10, 2013 — Tred Eyerly — Insurance Law Hawaii
The Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013). The insured received two letters from the EPA notifying it of potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter was received in January 2008, and stated that the EPA sought the insured's cooperation in its investigation of the release of hazardous substances at the site. The letter enclosed an extensive, 82-question "Information Request" seeking information about the insured's current and former activities at the site. The letter informed the insured that its voluntary cooperation was sought, but compliance with the Information Request was required by law and failure to respond could result in an enforcement action and civil penalties of $32,500 per day. The insured tendered the 104 (e) letter to St. Paul and requested a defense and indemnity pursuant to the CGL policy. St. Paul declined to provide a defense because the letter did not constitute a "suit," which was required by the policy to trigger the duty to defend. The second letter from the EPA, received in November 2009, was entitled "General Notice Letter for the Portland Superfund Site" and notified the insured that it was a "potentially responsible party ("PRP"). Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

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Homeowner’s Policy Excludes Coverage for Loss Caused by Chinese Drywall

November 18, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Exclusions barred the homeowners from recovering for losses caused by Chinese drywall in their home. Ross v. C. Adams Const. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App., released for publication Oct. 5, 2011).

Two years after purchasing their home, the Rosses began experiencing chronic malfunctions in the heating, ventilation and air conditioning system. After discovering the presence of gypsum drywall, or "Chinese drywall", they submitted a claim to their insurer, Louisiana Citizens Property Insurance Company, for damages caused by the Chinese drywall. Louisiana Citizens denied the claim.

The Rosses sued. The trial court granted summary judgment to Louisiana Citizens based upon exclusions in the policy.

On appeal, the appellate court first agreed the Rosses had sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and the drywall had to be removed and replaced.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Insurers Refuse Indemnification of Subcontractors in Construction Defect Suit

November 13, 2013 — CDJ STAFF
SMG Stone Co. Inc. and J. Colavin & Son Inc. were hired by Webcor Construction LP to install stone floor tiles at the Ritz-Carlton residences at the L.A. Live complex in Los Angeles. But the tiles began to crack even before installation was finished. The building management had all the tiles ripped out and replaced, although only 10% of the tiles were defective. The building management then claimed Webcor owed them $40 million, but settled for $8 million. $7 million of that claim was paid by Steadfast Insurance Co., with the remaining $1 million paid by Webcor. The two other insurers involved, American Home and The Insurance Company of the State of Pennsylvania, are attempting to deflect Webcor or Steadfast from making claims against them. Both insurers claim no obligation to indemnify the contractor or subcontractors as the claims do not involved “property damage,” as defined in the policy. Read the court decision
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1st District Joins 2nd District Court of Appeals and Holds that One-Year SOL Applies to Disgorgement Claims

June 14, 2021 — Garret Murai - California Construction Law Blog
We’re beginning to see a trend. This past year, the 2nd District Court of Appeals, in Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, 53 Cal.App.5th 1201 (2020), held for the first time that a one (1) year statute of limitations period beginning upon substantial completion of a project applies to disgorgement claims under Business and Professions Code section 7031. In San Francisco CDC LLC v. Webcor Construction L.P., the 1st District Court of Appeals became the second Court of Appeals in the state to hold that a one (1) year statute of limitations beginning upon completion or cessation of work on a project applies to disgorgement claims under Business and Professions Code section 7031. The San Francisco CDC LLC Case The Defect Action In September 2005, San Francisco CDC LLC entered into a $144 million construction contract with Webcor Construction, Inc. doing business as Webcor Builders to build the InterContinental Hotel in San Francisco, California. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Demanding a Reduction in Retainage

April 01, 2015 — Craig Martin – Construction Contractor Advisor
One of the attendees of the Goldleaf Surety presentation asked a great question about reducing retention under the Nebraska Construction Prompt Pay Act, Nebraska Revised Statutes, 45-1201-45-1211. He wanted to know whether there was any way to reduce and recover retainage during the project. The short answer is retainage should be reduced half way through the project, but there is no right to recover retainge for work performed during the first half of the project. Retainage in Nebraska Under section 45-1204 of the Prompt Pay Act, a contractor may withhold up to 10% retainage. A contract that allows for greater retainage is not enforceable. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Traub Lieberman Partner Colleen Hastie Wins Summary Judgment in Favor of Sub-Contracted Electrical Company

February 14, 2023 — Colleen E. Hastie - Traub Lieberman
In a case brought before the New York State Supreme Court, Kings County, Plaintiff alleged injury while performing work at a commercial premises in Brooklyn when he rolled his ankle on a jackhammered/chopped cellar floor slab while carrying a metal pipe from the main floor to the cellar on the subject premises. The property was owned by New York City entities, who were listed as Defendants in the underlying suit. A Construction Company was hired as the general contractor and construction manager for the work, who hired the Electrical Contractor to perform the main electrical fit out for the subject premises. The Electrical Contractor then hired Traub Lieberman’s client, the Electrical Subcontractor, to work on cellar-level conduit, cabling, backboxes, and lighting control systems. The Electrical Contractor, as Second Third-Party Plaintiff, brought suit against the Electrical Subcontractor, as Second Third-Party Defendant, for damages related to the underlying suit. Read the court decision
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Reprinted courtesy of Colleen E. Hastie, Traub Lieberman
Ms. Hastie may be contacted at chastie@tlsslaw.com

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