Fairfield Connecticut Building Expert Directory

Alabama Supreme Court Reverses Determination of Coverage for Faulty Workmanship

August 26, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Although the lower court held that the insured contractor was entitled to coverage and indemnification under a CGL policy despite claims based upon faulty workmanship, the Alabama Supreme Court reversed. Nationwide Mut. Fire Ins. Co. v. David Group, Inc., 2019 Ala. LEXIS 52 (Ala. May 24, 2019). The David Group (TDG) specialized in custom-built homes. The Shahs purchased a newly built home from TDG in October 2006. After moving in, the Shahs experienced problems with their new home that TDG was unable to correct. In February 2008, the Shahs sued TDG. The complaint alleged that serious defects existed, resulting in health and safety issues, building code violations, poor workmanship, misuse of construction materials, and disregard of property installation methods. The case went to arbitration and an award of $12,725 was issued to the Shahs. Nationwide was TDG's CGL carrier and initially defended TDG. After Nationwide withdrew its defense, TDG sued seeking a judgment declaring that Nationwide was obligated to defend and indemnify. The trial court denied Nationwide's motion for summary judgment and issued a partial summary judgment in favor of TDG on the issue of coverage. Nationwide appealed. 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

Ensuring Efficient Arbitration of Construction Disputes Involving Mechanic’s Liens

February 18, 2020 — Robert G. Campbell & Trevor B. Potter - Construction Executive
There may be tension between the enforcement of statutory mechanic’s lien claims when a contractual dispute resolution provision calls for arbitration. Once the parties are in arbitration, it may not be clear whether the arbitrator has authority to make factual determinations regarding amount and validity of mechanic’s liens, and whether courts are bound by these determinations. This uncertainty stems from the fact that in most states a mechanic’s lien can only be enforced by a court of competent jurisdiction. Indeed, many mechanic’s liens statutes define foreclosure as a “judicial process,” and courts generally have exclusive jurisdiction to issue orders foreclosing on real property1. The risk for contractors and owners is that they will spend time and money re-litigating factual issues related to proving elements of a mechanic’s lien claim, including the proper lien amount, timeliness and other prerequisites. Without a clear understanding of what issues and elements are arbitrable, the parties run the risk that an arbitrator will rule on certain elements only to find out during post-arbitration lien foreclosure proceedings that the arbitrator lacked authority to make determinations on those elements. Questions therefore arise whether a court will enforce the arbitrator’s determinations and whether the parties must relitigate mechanic’s lien issues creating a further risk of inconsistent rulings. These risks can be minimized through arbitration provisions which address these issues, express requests in arbitration demands and by ensuring that arbitration awards contain explicit determinations of mechanic’s liens issues. Reprinted courtesy of Robert G. Campbell & Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Potter may be contacted at tpotter@coxcastle.com Mr. Campbell may be contacted at rcampbell@coxcastle.com Read the court decision
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The Cheap and Easy Climate Fix That Can Cool the Planet Fast

January 10, 2022 — Hayley Warren & Akshat Rathi - Bloomberg
Let a molecule of carbon dioxide escape into the atmosphere, and it stays for centuries. There’s more than enough up there to smother the planet like a too-warm quilt, trapping heat within and weirding the weather. The damage will be felt for generations. But CO2 is only part of the patchwork of warming. Methane locks in far more heat in the short term and has been leaking just as relentlessly. Methane Surge Atmospheric concentrations of methane are 2.5x higher than in pre-industrial times. The difference is that methane’s power fades faster, within just decades. If we stopped emissions today, almost all the methane in the atmospheric blanket would degrade within a lifetime. Reprinted courtesy of Hayley Warren, Bloomberg and Akshat Rathi, Bloomberg Read the court decision
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Congress Relaxes Several PPP Loan Requirements

June 15, 2020 — Greg Tross & Michael Krueger – Newmeyer Dillion
On June 3, 2020, Congress passed the Paycheck Protection Program Flexibility Act ("Act") which does exactly what it means to do: provide flexibility for PPP loan recipients. President Trump is expected to sign the bill into law within the week. The Act extends the "covered period" for Paycheck Protection Program ("PPP") loans from the original eight weeks to 24 weeks or December 31, 2020, whichever is earlier. This extension provides much needed reprieve to small businesses who can utilize these funds to weather the economic effects of the Coronavirus Pandemic through 2020. The Act also revises the limitations on how small businesses utilize their PPP loans. While the CARES Act originally required 75% of the PPP loan to be used for payroll costs, this number has now been reduced to 60%. This means that up to 40% of the PPP loan can be used to cover mortgage obligations, rent, and other covered utility payments. The PPP loan payment deferral period has also been extended to align with the date on which the PPP loan's forgiveness amount is remitted to the lender. This should provide more certainty to small businesses on their payback obligations, if any. Recently, the Small Business Administration also released loan forgiveness applications to assist a business in calculating their loan forgiveness. While the SBA will likely revise it with the Act's passing, small businesses should look at the application's framework to prepare for submitting their loan forgiveness requests in the future. Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/. Reprinted courtesy of Greg Tross, Newmeyer Dillion and Michael Krueger, Newmeyer Dillion Mr. Tross may be contacted at greg.tross@ndlf.com Mr. Krueger may be contacted at michael.krueger@ndlf.com Read the court decision
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Amazon Urged to Review Emergency Plans in Wake of Deadly Tornado

June 20, 2022 — Spencer Soper - Bloomberg
Amazon.com Inc. should better prepare workers for extreme weather events, according to federal regulators who investigated a deadly tornado strike on a company warehouse in Edwardsville, Illinois. The storm ripped through the facility in December, killing six workers and injuring several others, prompting the Occupational Safety and Health Administration to launch a probe. At the time, Amazon said the facility complied with all construction regulations and that proper safety procedures were followed when the tornado struck. But several workers told Bloomberg that training for such events was minimal and mostly entailed pointing out emergency exits and assembly points. An OSHA report released on Tuesday echoed those concerns. The agency said a bullhorn that was supposed to be used to tell workers to take cover was locked up in a cage and inaccessible. In interviews with investigators, some employees couldn’t recall ever participating in emergency drills and said they mistakenly took shelter in a bathroom on the south side of the building rather than in designated restrooms on the north side. Read the court decision
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Reprinted courtesy of Spencer Soper, Bloomberg

In Personal Injury Actions, Prejudgment Interest on Costs Not Recoverable

March 12, 2015 — Elizabeth P. Trent and Leah B. Mason – Haight Brown & Bonesteel LLP
In Bean v. Pacific Coast Elevator Corporation, 2015 DJDAR 2864 (“Bean”), the California Court of Appeal, Fourth Appellate District, held in the published portion of its opinion that courts may not award prejudgment interest on costs in personal injury actions. In Bean, an employee of defendant Pacific Coast Elevator Corporation (Pacific Coast) drove his vehicle into plaintiff Daniel William Bean’s truck while Bean was stopped at a red light. Bean suffered serious injuries and sued Pacific Coast. A jury found Pacific Coast negligent and awarded Bean $1,271,594.74 in damages. This amount exceeded Bean’s $999,999.00 statutory offer to compromise issued to Pacific Coast prior to trial, which Pacific Coast rejected. Reprinted courtesy of Elizabeth P. Trent, Haight Brown & Bonesteel LLP and Leah B. Mason, Haight Brown & Bonesteel LLP Ms. Trent may be contacted at etrent@hbblaw.com Ms. Mason may be contacted at lmason@hbblaw.com Read the court decision
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Contract Change #9: Owner’s Right to Carry Out the Work (law note)

March 28, 2018 — Melissa Dewey Brumback - Construction Law in North Carolina
In prior versions of the General Conditions, if a contractor defaulted and the Owner (after giving notice) opted to cure by carrying out the work itself, an appropriate Change Order would be issued. However, a Change Order is a contract that requires an agreement by both the Owner and Contractor, and, obviously, Contractors were reluctant to agree that they were in default and responsible for a deductive change order. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina

Best Practices After Receiving Notice of a Construction Claim

July 18, 2022 — Lauren Meadows - Construction Executive
Being served with a lawsuit is typically not a welcomed experience. However, a construction professional that has been proactive in an early investigation of the claim will be better equipped to defend the case. The following best practices should be used by construction professionals as soon as a potential claim becomes evident. Notify Immediately after the receipt of a claim or notice of an incident, efforts should be made to notify all essential parties. This includes any potential insurers that may provide coverage for the claim as well as any parties to whom notice may be required or warranted under the project contract and/or scope of work. Some construction contracts contain an insurance clause that requires one party to provide additional insured coverage under its liability policy to another party. Notice should be given to any insurer that potentially provides additional insured coverage as soon as possible. The failure to provide an insurance company with prompt notice of a potential claim could result in the denial of the claim. Reprinted courtesy of Lauren Meadows, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES