Fairfield Connecticut Building Expert Directory

Construction Law Breaking News: California Supreme Court Rules in Favor of Beacon Residential Community Association

July 09, 2014 — Steven M. Cvitanovic – Haight Brown & Bonesteel LLP
On July 3, 2014, the California Supreme Court issued its opinion affirming the First District Court of Appeal in the case of Beacon Residential Community Association v. Skidmore, Owings & Merrill (Case No. S208173). The issue in the Beacon case is whether the architects of a residential project owe a duty to future third party homeowners under SB800 and common law. In 2011, Judge Richard Kramer of the San Francisco Superior Court sustained demurrers of Skidmore, Owings & Merrill and HKS Architects to the homeowners association complaint without leave to amend. The homeowners association appealed and the First District Court of Appeal reversed Judge Kramer, ruling that the homeowners could assert SB800 and common law claims against the architects of the project even in the absence of privity of contract. 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

New American Home Construction Nears Completion Despite Obstacles

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
Construction of the New American Home in Las Vegas, Nevada, to be completed for the 2014 International Builders’ Show, has faced enormous challenges, according to Jennifer Goodman writing for Big Builder. Josh Anderson, owner of Element Building Co., told Goodman “he couldn’t have imagined what lay ahead when he signed on in fall 2012 to the project, which is co-sponsored by BUILDER and the NAHB.” Challenges began during the “design phase” when Anderson “was troubled by the sitting of the house on its lot in the tony Sky Terrace subdivision.” Furthermore, he “balked at the floor plan, which encompassed a traditional design aesthetic and opulent touches.” The project’s architect, Barry Berkus, passed away in late 2012, and his son, Jeffrey Berkus, took over for him. After the plans were “complete and approved by the city,” a labor shortage in Las Vegas made it “particularly difficult to find skilled framers.” The shortage also increased labor costs. Anderson also contended with weather anomalies: “Over the summer, the area set a record for the most consecutive wet days in 30 years. Winds blew sawdust and rain into the open structure, ruining 350 sheets of drywall and slowing down construction,” according to Big Builder. The “mammoth project” is close to completion. Anderson told Big Builder, “I’ve always been a sucker for a challenge.” Read the court decision
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Reprinted courtesy of

Pre-Covid Construction Contracts Unworkable as Costs Surge, Webuild Says

October 17, 2022 — Angus Whitley - Bloomberg
Infrastructure construction contracts signed before the pandemic have become widely unworkable because of the surging cost of labor and materials, supply-chain blockages and difficulties in securing manpower, according to builder Webuild SpA. Milan-based Webuild is wrestling with a 2019 agreement with the Australian government to construct the country’s largest hydroelectric power station for A$5.1 billion ($3.2 billion). It’s meant to be completed by 2026. The Snowy 2.0 project, in the Snowy mountains about six hours’ drive south of Sydney, has come to highlight the challenges of completing large-scale projects on terms that were struck before Covid-19, and before Russia invaded Ukraine. Webuild’s Asia-Pacific director, Marco Assorati, said the value of the Snowy contract, as well as certain other parameters, need to be changed to reflect the current market. He declined to comment specifically on media reports that the consortium has asked the Australian government for an extra A$2.2 billion to complete the work and that the project is 18 months behind schedule. “It is challenging,” Assorati said. “I think clients understand this conversation must happen and there must be a way to cope with unforeseen increases in cost,” Assorati said. “It’s not needed only on the Snowy project. It’s affecting projects everywhere globally.” Read the court decision
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Reprinted courtesy of Angus Whitley, Bloomberg

The Five-Step Protocol to Reopening a Business

August 03, 2020 — Amy R. Patton & Rana Ayazi - Payne & Fears
Over the past few months, guidance on how to create a safer, low-risk workplace has frequently changed. Fortunately, the state of California has finally reached a point where comprehensive and concrete advice is now available. On June 24, 2020, the California Statewide Industry Guidance to Reduce Risk website was updated. In addition to providing industry-specific guidance and opening checklists for approximately 40 different industries, the website now unambiguously requires all businesses—regardless of which “phase” they reopen—to follow a five-step protocol (as described in greater detail throughout this article):

Perform a detailed risk assessment and create a site-specific protection plan.
Train employees on how to limit the spread of COVID-19. This includes how to screen themselves for symptoms and when to stay home.
Set up individual control measures and screenings.
Put disinfection protocols in place.
Establish physical distancing guidelines

Reprinted courtesy of Amy R. Patton, Payne & Fears and Rana Ayazi, Payne & Fears Ms. Patton may be contacted at arp@paynefears.com Ms. Ayazi may be contacted at ra@paynefears.com Read the court decision
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Everyone's Moving to Seattle, and It's Stressing Out Sushi Lovers

July 16, 2014 — Peter Robison and Alison Vekshin – Bloomberg
Sooner or later, everyone moves to Seattle, went one saying in the city’s 1990s heyday. The trouble residents face now: What happens after everyone does? Known for hiking and the open spaces of the American West, Seattle is in the midst of another boom that’s made it the fastest-growing among the top 50 U.S. cities. That’s causing angst over density, affordability, crime and other issues more familiar to an East Coast metropolis. At the same time, pay is outpacing the national average and an already rich cultural life is thriving as new restaurants and nightspots open. “It’s a blessing,” Seattle Mayor Ed Murray, a 59-year-old Democrat, said of the growth. “But with it comes some real challenges.” Mr. Robison may be contacted at robison@bloomberg.net; Ms. Vekshin may be contacted at avekshin@bloomberg.net Read the court decision
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Reprinted courtesy of Peter Robison and Alison Vekshin, Bloomberg

Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?

September 19, 2022 — William L. Porter - Porter Law Group
It is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes. California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Claims Made Insurance Policies

November 04, 2019 — David Adelstein - Florida Construction Legal Updates
“Claims-made policies are common in the professional liability insurance market. They “differ from traditional ‘occurrence’-based policies primarily based upon the scope of the risk against which they insure.” With claims-made policies, coverage is provided only where the act giving rise to coverage “is discovered and brought to the attention of the insurance company during the period of the policy.” In contrast, coverage is provided under an occurrence-based policy if the act giving rise to coverage “occurred during the period of the policy, regardless of the date a claim is actually made against the insured.” “The essence, then, of a claims-made policy is notice to the carrier within the policy period.” Crowely Maritime Corp. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2019 WL 3294003 (11thCir. 2019) The recent Eleventh Circuit Court of Appeal opinion in Crowely Maritime Corp. discussed the distinction between a claims-made insurance policy and an occurrence-based insurance policy. Professional liability policies are generally claims-made policies whereas commercial general liability policies are generally occurrence-based policies. While this opinion does not involve a construction matter, the case did concern the definition of a “claim” in a claims-made policy and whether such claim was timely reported to the insurer within the discovery period / extended reporting period. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Public Policy Prevails: Homebuilders and Homebuyers Cannot Agree to Disclaim Implied Warranty of Habitability in Arizona

November 01, 2022 — Ryan Bennett - The Subrogation Strategist
In Zambrano v. M & RC II LLC, et al., 2022 Ariz. LEXIS 309, the Supreme Court of Arizona held that a homebuilder and homebuyer could not waive or disclaim the implied warranty of workmanship and habitability. While the court would normally enforce a contract between two parties – even if one side made a “bad deal” – they will not do so if the contract’s terms are against public policy. In this case, Tina Zambrano (Zambrano) signed a purchase agreement with the homebuilder to buy a newly built home. The agreement included provisions which expressly disclaimed any implied warranties, including the warranty of habitability and workmanship. After the purchase, Zambrano claimed that there were construction defects within the home, including popped nails in the drywall and issues with the home’s foundation. Zambrano sued the homebuilder for breach of the implied warranty of workmanship and habitability. The homebuilder moved for summary judgment based on the waivers within the contract and the trial court, agreeing that the waivers applied, dismissed the case. Zambrano appealed and the appellate court reversed the trial court’s decision. The appellate court specifically explained that Arizona has a public policy interest in protecting consumers. Read the court decision
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Reprinted courtesy of Ryan Bennett, White and Williams LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

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