Auditor: Prematurely Awarded Contracts Increased Honolulu Rail Cost by $354M
February 11, 2019 —
Honolulu Star-Advertiser - Engineering News-RecordJan. 10 --A series of "prematurely" awarded rail contracts doled out to construction companies as early as 2009 prompted delay claims and change orders that increased the cost of the Honolulu rail project by more than $354 million , according to a new report by the Hawaii State Auditor released today.
Read the court decisionRead the full story...Reprinted courtesy of
Engineering News-RecordENR may be contacted at
ENR.com@bnpmedia.com
“Positive Limiting Barriers” Are An Open and Obvious Condition, Relieving Owner of Duty to Warn
June 13, 2018 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog On June 1, the U.S. Court of Appeals for the First Circuit decided the case of Potvin v. Speedway, Inc., a personal injury case subject to the laws of Massachusetts. In Massachusetts, environmental rules require the installation of “positive limiting barriers” at gasoline service stations to contain gasoline spills of up to 5 gallons. At a self-service station now owned by Speedway, Inc., the plaintiff, a passenger in a car being serviced, exited the car but tripped on these barriers and was injured. She sued Speedway in state court, and the case was removed to federal court.
Read the court decisionRead the full story...Reprinted courtesy of
Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLPMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Connecticut Court Clarifies Construction Coverage
June 28, 2013 —
CDJ STAFFThe Connecticut Supreme Court has recently ruled on a case in which breach of contract and bad-faith claims were made against an insurer in an construction defect case. Joseph K. Scully of Day Pitney LLP discussed the case in a piece on Mondaq.
Mr. Scully noted that the background of the case was that Capstone Building was the general contractor and project developer of a student housing complex for the University of Connecticut. Unfortunately, the building had a variety of problems, some of which were violations of the building code. Mr. Scully noted that the building had “elevated carbon monoxide levels resulting from inadequate venting, improperly sized flues.” Capstone entered into mediation with the University of Connecticut. Capstone’s insurer, the American Motorists Insurance Company (AMICO), declined involvement in the participation. Afterward, Capstone sued AMICO. The issues the court covered involved the insurance on this project.
The court addressed three questions. The first was “whether damage to a construction project caused by construction defects and faulty workmanship may constitute ‘property damage’ resulting from an ‘occurrence.’” The court concluded that it could “only if it involved physical injury or loss of use of ‘nondefective property.’”
The second question dealt with whether insurers were obligated to investigate insurance claims. The court, “agreeing with the majority of jurisdictions,” did not find “a cause of action based solely on an insurer’s failure to investigate a claim.” Under the terms of the contract, it was up to AMICO to decide if it was going to investigate the claim.
Thirdly, the court examined whether “an insured is entitled to recover the full amount of a pre-suit settlement involving both covered and noncovered claims after an insurer wrongfully disclaims coverage.” The court concluded that the limits are that the settlement be reasonable, the policy limit, and the covered claims.
Mr. Scully concludes that the decision will limit “the scope of coverage for construction defect claims” and “also imposes reasonable requirements on an insured to allocate a settlement between covered and noncovered claims.
Read the court decisionRead the full story...Reprinted courtesy of
The Requirement to State a “Sum Certain” No Longer a Jurisdictional Bar to Government Contract Claims
November 13, 2023 —
Marcos R. Gonzalez - ConsensusDocsThe Boards of Contract Appeals, Court of Federal Claims, and the Federal Circuit have long held that the elements of a claim under the Contract Disputes Act (“CDA”) to be jurisdictional. Those requirements are as follows:
(a) Claims generally.–
(1) Submission of contractor’s claims to contracting officer.–Each claim by a contractor against the Federal Government relating to a contract shall be submitted to the contracting officer for a decision.
(2) Contractor’s claims in writing.—Each claim by a contractor against the Federal Government relating to a contract shall be in writing.
(3) Contracting officer to decide Federal Government’s claims.–Each claim by the Federal Government against a contractor relating to a contract shall be the subject of a written decision by the contracting officer.
Read the court decisionRead the full story...Reprinted courtesy of
Marcos R. Gonzalez, Peckar & Abramson, P.C.Mr. Gonzalez may be contacted at
mgonzalez@pecklaw.com
Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commercial Real Estate Market’s Effect on City Cuts
April 15, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!
- The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
- An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
- Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).
Read the court decisionRead the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
ConsensusDOCS Hits the Cloud
April 02, 2019 —
Christopher G. Hill - Construction Law MusingsI have discussed the ConsensusDOCS here at Musings on a few occasions. These relatively new form documents, endorsed by the AGC among other trade organizations, are a great counterpoint to the AIA documents that we all are more than familiar with and as construction attorneys and contractors have likely reviewed on numerous occasions.
Recently, these documents have joined the parade and have taken to the cloud. The folks at ConsensusDOCS made this move to ease the type of collaboration that I have discussed must occur on construction projects among the players. The use of the cloud based technology is one of the first uses of this technology to increase productivity.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Potential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims
April 27, 2020 —
David M. McLain – Colorado Construction LitigationOn January 27th, Senator Robert Rodriguez introduced SB 20-138 into the Colorado Legislature. The bill has been assigned to the Senate Judiciary Committee and has not yet been scheduled for its first hearing in that committee. In short, Senate Bill 20-138, if enacted, would:
- Extend Colorado’s statute of repose for construction defects from 6+2 years to 10+2 years;
- Require tolling of the statute of repose until the claimant discovers not only the physical manifestation of a construction defect, but also its cause; and
- Permit statutory and equitable tolling of the statute of repose.
Colorado’s statute of repose for construction defect claims are codified at C.R.S. § 13-80-104. In 1986, the Colorado Legislature set the statute of repose period at 6+2 years. For the last 34 years, Colorado’s statute of repose for owners’ claims against construction professionals has been substantially the same, to wit:
(1) (a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.
(2) In case any such cause of action arises during the fifth or sixth year after substantial completion of the improvement to real property, said action shall be brought within two years after the date upon which said cause of action arises.
Read the court decisionRead the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Appeals Court Reverses Summary Judgment over Defective Archway Construction
February 10, 2012 —
CDJ STAFFA judge has ruled that a plaintiff can go forward with her suit that she was injured by a defective archway during a birthday party. A three-judge panel of the California Court of Appeals issued this ruling on January 23, 2012, in the case of Trujillo v. Cosio.
Ms. Trujillo attended a birthday party at the home of Maria Cosio and Joel Verduzco. A piñata was hung between a tree and a brick archway. Ms. Trujillo went to get candy that had fallen from the piñata, during which the archway fell on her hand. Subsequent examination of the archway showed that it had not been “properly anchored to the supporting pillars to protect the arch from falling.”
Ms. Cosio and Mr. Verduzco argued that they could not have been aware of the defective nature of the archway’s construction, as it had been built at the request of the prior property owner. The structure was constructed without building permits. Mark Burns, a civil engineer testifying for the plaintiff, said that “a reasonable property owner would have thoroughly tested the archway to ensure it was capable of withstanding such horizontal forces before allowing children to enter into the area.” Mr. Burns noted that twenty rope pulls would have been sufficient to demonstrate the structure’s instability.
The trial court rejected Mr. Burn’s statements, finding that the respondents did not have any knowledge of the defect and that a visual inspection should have sufficed. The court noted that this a triable issue, whether visual inspection suffices, or whether the property owners should have done as Mr. Burns suggested and yank a rope twenty times. The court noted that “although a jury may ultimately disagree with Burn’s opinion, it was supported by sufficient foundation and was not speculative.”
The opinion was written by Judge Flier, with Judges Rubin and Grimes concurring.
Read the court’s decison…
Read the court decisionRead the full story...Reprinted courtesy of