FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Requirement to Post Collateral Under General Agreement of Indemnity Is Real

May 16, 2022 — David Adelstein - Florida Construction Legal Updates
In prior postings, I have discussed the all-powerful General Agreement of Indemnity (click here and here). This is the document a bond-principal executes to obtain bonds (e.g., performance and payment bonds). Not only does the bond-principal execute this General Agreement of Indemnity, but typically, so do other indemnitors such as the company’s principals and their spouses, other related companies, etc. The objective is that the surety has financial comfort that if a claim is made against the bond, there are avenues where it will get reimbursed and indemnified for any cost it incurs, or payment it makes, relative to that claim against the bond. When a surety issues bonds, the objective is that all losses it incurs gets reimbursed because the bonds are NOT insurance policies. One of the powerful tools the surety can exercise in the General Agreement of Indemnity is to demand the bond-principal and other indemnitors to post collateral in an amount the surety deems sufficient to cover any losses it may incur. This is a right in any General Agreement of Indemnity I have seen and is a right the surety can rightfully exercise. A recent example is shown from the opinion in Philadelphia Indemnity Ins. Co. v. Quinco Electrical, Inc., 2022 WL 1230110 (M.D.Fla. 2022), which pertains to the surety’s motion for preliminary injunction. 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

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New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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New Zealand Using Plywood Banned Elsewhere

October 30, 2013 — CDJ STAFF
Copper chromium arsenate helps protect wood against insect damage and fungal growth. Unfortunately, its use leads to arsenic exposure. The safety concerns over CCA for both construction workers and the people who later use the buildings have led to the CCA-treated plywood being banned or restricted in most countries, including the United States, Canada, France, the United Kingdom, and Germany. New Zealand is not on the list of countries restricting or banning CCA-treated wood. Dr. Merial Watts, a science coordinator for Pesticide Action Network NZ described the product as an “unacceptable public health risk,” and said that “wrapping homes in CCA-treated plywood is a very bad idea.” One construction official, speaking anonymously, noted that “workers have to handle it with gloves and full body suits,” but those guidelines may not be followed. A foreman on a building site said “I know about the treatment but I don’t take many precautions.” Read the court decision
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Florida Adopts Daubert Standard for Expert Testimony

October 07, 2019 — Michael L. DeBona - The Subrogation Strategist
Seven months ago, the Florida Supreme Court declined to adopt Daubert as the standard for admitting expert testimony in Florida state courts. In DeLisle v. Crane Co., 258 So. 3d 1219 (2018), the court reaffirmed that “Frye, not Daubert, is the appropriate test in Florida.” On May 23, 2019, however, Florida’s high court did an about-face. In In Re: Amendment to the Florida Evidence Code, No. SC19-107, the Florida Supreme Court overruled its decision in DeLisle and declared that Florida will now apply the Daubert standard to determine whether scientific evidence is admissible. The Daubert standard comes from the case of Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993), which held that the longstanding Frye test[1] for admitting expert testimony was superseded by Rule 702 of the Federal Rules of Evidence. Daubert instructed that federal judges should act as “gatekeepers” to ensure expert testimony is rooted in scientifically valid principles and that those principles are properly applied to the facts at issue. In determining whether scientific evidence should be admitted, Daubert sets forth several factors to consider: the testability of the theory or technique; the peer review and publication of the theory or technique; the error rate for the technique; the standards controlling the technique’s operation; and the general acceptance of the theory or technique.[2] The Daubert standard is generally considered a more onerous test than Frye, precluding expert testimony that might otherwise go to the jury under Frye.[3] Whereas Frye is a single factor test that applies only to new or novel science, Daubert is a multifactor test that applies to all expert testimony. Since Daubert, a growing number of states have moved away from the Frye test in favor of the Daubert standard; it is now followed by a majority of jurisdictions in the country. In 2013, the Florida State legislature attempted to move Florida in this direction by amending the Florida Evidence Code to codify the Daubert standard. But because the Florida Supreme Court is vested with the power to make procedural rules and it was unclear whether the Daubert standard was a procedural or substantive rule, it was uncertain whether the 2013 Daubert amendments were controlling law. Then in 2017, in In Re: Amendment to the Florida Evidence Code, No. SC16-181, the Florida Supreme Court expressly declined adopting the Daubert amendments to the extent they were procedural. This decision signaled that, if faced with the Daubert standard on appeal from a litigated case, the Florida Supreme Court would reaffirm that Frye – not Daubert – controlled the admissibility of expert testimony in Florida state courts. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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CDJ’s #6 Topic of the Year: Does Colorado Need Construction Defect Legislation to Spur Affordable Home Development?

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
The question involves whether a Colorado law passed in 2005 has made it too easy for homeowners to sue developers for construction defects, allegedly causing a decline in condominium building in the state. The Construction Defect Journal became a forum for this lively debate with two prominent, Colorado, construction defect attorneys providing their views on the subject: Jesse Howard Witt, of the Witt Law Firm, published “Colorado Mayors Should Not Sacrifice Homeowners to Lure Condo Developers.” Read the full story... In response, James M. Mulligan of Snell & Wilmer, LLP presented his perspective in, “Are Construction Defect Laws Inhibiting the Development of Attached Ownership Housing in Colorado?” Read the full story... The city of Lakewood did not wait for the state, but instead passed its own ordinance, which “gives developers and builders a ‘right to repair’ defects before facing litigation and would require condominium association boards to get consent from a majority of homeowners — rather than just the majority of the board — before filing suit,” according to John Aguilar’s piece in The Denver Post. Read the full story... Read the court decision
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Environmental Suit Against Lockheed Martin Dismissed

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
A federal judge dismissed an environmental suit against Lockheed Martin, finding that contamination levels on the plaintiffs’ Moorestown, New Jersey properties were not high enough to pose a health threat, according to the New Jersey Law Journal. Two owners who live across the street from the plant had “sued under the Resource Conservation & Recovery Act, the Comprehensive Environmental Response, Compensation & Liability Act and various state statutes.” However, “while the suit was pending, the New Jersey Department of Environmental Protection raised the threshold for concentration levels of substances such as TCE and PCE to warrant additional testing.” Read the court decision
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French Government Fines National Architects' Group $1.6M Over Fee-Fixing

December 09, 2019 — Debra K. Rubin - Engineering News-Record
The French government’s anti-trust agency has fined the national architects’ registration group and four regional councils $1.64 million (€1.5 million) for price-fixing design fees on public works. Reprinted courtesy of Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Consumer Protection Act Whacks Seattle Roofing Contractor

July 21, 2011 — Douglas Reiser, Builders Council Blog

It’s been over 1 year since we last visited the CertainTeed Corp. v. Seattle Roof Brokers lawsuit. After my original post, the contractor, James Garcia, appeared at Builders Counsel in a comment to defend himself. It appears that 1 year later, the court decided to side with CertainTeed and award them significant attorneys’ fees. Ready for the whole story? Its a pricey one.



Back in July 2010, good friend Mike Atkins (Seattle Trademark Attorney) authored a post about a Seattle roofing contractor who had been sued for false advertising on his website. The lawsuit was raised by CertainTeed, a roofing material producer, whose products were the target of a Seattle contractor’s ire. Seattle Roof Brokers, owned by James Garcia, published content on its website, remarking that CertainTeed products have a history of “premature failure” and that they “will fail?.resale inspection after 15-20 years.”



CertainTeed filed its action to obtain an injunction and damages under the Consumer Protection Act.



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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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