Fairfield Connecticut Building Expert Directory

Challenging Enforceability of Liquidated Damages (In Federal Construction Context)

March 11, 2024 — David Adelstein - Florida Construction Legal Updates
A recent summary judgment opinion from the Armed Services Board of Contract Appeals (ASBCA), Appeals Of – BCI Construction USA, Inc.,ASBCA No. 6257, 2024 WL 773324 (2024), contains a worthy discussion regarding a contractor’s challenge to the government’s assessment of liquidated damages, specifically the enforceability of the liquidated damages rate. Although this challenge is in the federal context, this discussion would be more expansive and apply outside of the federal context. When dealing with the enforceability of a liquidated damages, the ASBCA “examines whether the liquidated damages amount ‘is extravagant, or disproportionate to the amount of property loss, as to show that compensation was not the object aimed at or as to imply fraud, mistake, circumvention or oppression.” Appeals of – BCI Construction USA, Inc. (citation omitted). 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

What ‘The Curse’ Gets Wrong About Passive House Architecture

April 02, 2024 — Teresa Xie - Bloomberg
In the fifth episode of Showtime’s The Curse, two potential buyers are touring a boutique house in Española, a soon-to-be gentrified Santa Fe neighborhood when one of them makes a remark about the temperature. “Sorry, can I get a water? It’s just really hot in here,” he says, airing out his sweat-stained shirt. The quirky home’s architect-slash-developer, played by Emma Stone, says, “Sure!” and without skipping a beat, continues to explain the virtues of her passive house design: The home functions like a thermos, with no need for air conditioning — unless any air escapes the house. Then it takes five to seven hours for the room to recover. Owning a passive house sounds like a nightmare, right? If you’re buying a one-of-a-kind, mirror-clad spec house from Stone and co-star Nathan Fielder, it may well be. On The Curse, the two play a do-gooder couple attempting to make an HGTV series (with Benny Safdie) about turning regular houses into carbon-neutral passive homes. Odd things happen to Stone and Fielder over the show’s first season: trouble with the laws of gravity, the trials of a failing marriage and a literal curse from a small child. But the weirdest might be the show’s portrayal of passive house design, an energy-efficient design standard that has been around since the 1970s. Passive building, which has its origins in Europe, relies on advanced construction methods to seal a structure in an airtight envelope, thereby reducing energy consumption for heating and cooling by as much as 75%. Read the court decision
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Reprinted courtesy of Teresa Xie, Bloomberg

Connecticut Supreme Court Finds Duty to Defend When Case Law is Uncertain

October 12, 2020 — Eric B. Hermanson & Austin D. Moody - White and Williams
The Connecticut Supreme Court recently addressed whether an insurer has a duty to defend when faced with legal uncertainty as to whether coverage is owed: for example, when there is no Connecticut case law on point, and courts outside of the state have reached conflicting decisions. The Court suggested that an insurer, in these circumstances, should defend the insured, and should seek a declaratory judgment from a court as to whether coverage is owed. The issue in Nash St., LLC v. Main St. Am. Assurance Co.,[1] arose out of a home collapse in Milford, Connecticut. The owner of the home (Nash) hired a contractor (New Beginnings) to renovate the home. New Beginnings, in turn, retained a subcontractor to lift the house and to do concrete work on the foundation. While the subcontractor was lifting the house, the house shifted off the supporting cribbing and collapsed. Reprinted courtesy of Eric B. Hermanson, White and Williams and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwiliams.com Read the court decision
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Developer Africa Israel Wins a Round in New York Condominium Battle

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
In Manhattan, New York, a “Supreme Court judge partially granted a temporary restraining order to Africa Israel,” which “means the developer does not at this time have to cede control of the Downtown Condominium board to unit owners, following a February lawsuit against the developers by state Attorney General Eric Schneiderman,” according to The Real Deal. The condominium battle began after Schneiderman filed suit against the developers, claiming that they did not fix construction defects, which in turn caused them to fail to obtain a certificate of occupancy, reported The Real Deal. The attorney general “also alleged that the pair misappropriated more than $9 million placed in an escrow account to finance those repairs.” However, according to The Real Deal, Africa Israel has claimed not to be a sponsor of the building. “Attorney Aaron Abraham, representing both Africa Israel and the sponsor of 15 Broad, claimed …that Africa Israel, an Israeli development firm led by billionaire Lev Leviev, never signed any documents claiming to be a sponsor of the building, noting that the sponsor principals were Boymelgreen and Pinchas Cohen.” Steve Sladkus, attorney for the condominium unit owners, told The Real Deal, “They partnered up with Boymelgreen — they need to deal with the fallout of that.” Read the court decision
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Virginia General Assembly Tweaks Pay-if-Paid Ban

April 03, 2023 — Christopher G. Hill - Construction Law Musings
Last year, the Virginia General Assembly passed into law a ban on the so-called pay-if-paid clauses, effective January 1, 2023. I shared my thoughts and concerns with the legislation as drafted at the time of its passage. During this most recent legislative session, and among some other construction-related bills, the General Assembly sought to clarify its past enactment. The enrolled bill fills in certain gaps in the law as follows:

For both private and public contracts, the General Contractor, if it has good reason to withhold any payment, now has a maximum of 50 days from receipt of a proper invoice to notify its subcontractor of the reason for the withholding, including the contractual noncompliance, the amount to be withheld, and the lower-tier subcontractor responsible for the contractual noncompliance.
For private contracts, the Owner now has 45 days in which to provide any written notice of intention to withhold payment. This notice must include the specific contractual non-compliance and the dollar amount to be withheld. NB- Owners do not need to specify the subcontractor responsible for the non-compliance.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Lost Rental Income not a Construction Defect

November 27, 2013 — CDJ STAFF
A judge in Colorado has ruled that although the homeowner’s policy excluded construction defects from coverage, lost rental income and the cost of deck repair involved in fixing a defective drainage system were. Read the court decision
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Hawaii Court of Appeals Affirms Broker's Liability for Failure to Renew Coverage

July 16, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Hawaii Intermediate Court of Appeals affirmed the jury's finding that the broker was liable for failing to secure coverage for the insureds' home. Certain Underwriters at Lloyd's London v. Vreeken, 2014 Haw. App. LEXIS 322 (Haw. Ct. App. June 30, 2014). Based upon their dealings with the broker, the insureds thought they had coverage for their home from March 3, 2004 to March 3, 2005 and from May 9, 2005 to May 8, 2006. The house was elevated nine feet above the ground for structural renovation, but collapsed on May 23, 2005. The original policy had lapsed on March 3, 2005. The second policy was voided because the application prepared by the broker stated there was no renovation work underway on the property. The insureds sued. The jury found the broker and its agent liable for general, special and punitive damages. An appeal was filed. The ICA largely affirmed after addressing the many points raised on appeal. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Connecticutt Class Action on Collapse Claims Faces Motion to Dismiss

January 02, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court dismissed some insurers from a class action suit alleging failure to provide coverage for collapse claims. Halloran v. Harleysville Preferred Ins. Co., 2018 U.S. Dist. LEXIS 179807 (D. Conn. Oct. 19, 2018). A class of homeowners brought suit in 2016 against their homeowners insurance companies ("defendants") for failure to cover collapse claims. Plaintiffs alleged they bought their homes between 1984 and 2015. Each of the homes had basement walls that were "crumbling and cracking due to the oxidation of certain minerals contained in the concrete." As a result of the deteriorating concrete, plaintiffs claimed that their basement walls were in a state of collapse. 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

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