Fairfield Connecticut Building Expert Directory

Man Pleads Guilty in Construction Kickback Scheme

November 06, 2013 — CDJ STAFF
Mark M. Palombaro, a former vice president at Simon Property Group, a development firm, has plead guilty to receiving $766,000 from the head of a construction firm in payback for the projects. Robert E. Crawford at Fox Chapel then overbilled for these projects, which were located in Seattle, Washington and Laguna Beach, California, in order that he and Mr. Palombaro would profit. The total value of the projects, overbilling included, was $15 million. The two men settled a civil suit brought by Simon Property Group by paying $3.3 million. Mr. Crawford plead guilty in June. He admitted to bribing Mr. Palombaro. Read the court decision
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Reprinted courtesy of

What are the Potential Damages when a House is a Lemon?

September 01, 2016 — Haldon L. Greenberg, Esq. – Florida Construction Law News
It seems that lemons are front page news these days. Beyonce just released a chart-topping[1] album all about what to do when life hands you lemons. In today’s vernacular, we use the term “Lemon” to describe a person or thing that is unsatisfactory, disappointing, or feeble.[2] In Florida, there is a “Lemon Law” that provides a way for consumers to receive a replacement or full refund for vehicles found to have defects which may affect the vehicle’s safety, value or use.[3] While there is no “Lemon Law” for construction projects, in Gray v. Mark Hall Homes, Inc.,[4] Florida’s Second District Court of Appeal cited to Florida Supreme Court precedent in holding that a home builder was on the hook for the entire contract value of a home he contracted to build for the Plaintiff, when it was revealed the home was a “Lemon”, or as the evidence at trial showed, “valueless.” Read the court decision
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Reprinted courtesy of Haldon L. Greenberg, Esq., Cole, Scott & Kissane, P.A.
Mr. Greenberg may be contacted at haldon.greenburg@csklegal.com

Port Authority Reaches Deal on Silverstein 3 World Trade

June 26, 2014 — David M. Levitt – Bloomberg
The Port Authority of New York and New Jersey approved a financing agreement for Larry Silverstein’s 3 World Trade Center that allows him to use $159 million of insurance proceeds to expedite construction. The agreement, which alters a 2010 deal on the project, follows about a year of negotiations and provides Silverstein with far less than the $1.2 billion of loan guarantees he sought under a previous plan that had been opposed by some board members. Silverstein plans to seek private financing to complete construction on the tower, which is stalled at eight floors. The Port Authority, which owns the Trade Center site, unanimously approved the alterations to the agreement at a meeting today. The new deal meets the criteria of not creating additional debt for the agency, said Commissioner Kenneth Lipper, who led opposition to the loan guarantee, viewing it as too risky and a threat to the authority’s credit rating. Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg
Mr. Levitt may be contacted at dlevitt@bloomberg.net

Beverly Hills Voters Reject Plan for Enclave's Tallest Building

November 10, 2016 — James Nash – Bloomberg
A costly battle over development in Beverly Hills, California, ended with voters rejecting a hotel owner’s proposal to combine two planned condominium towers into a single building that would have loomed over the wealthy Southern California enclave. With 44 percent in support and 56 percent against, Beverly Hills voters turned down plans by Beny Alagem, who owns the Beverly Hilton and is building an adjacent 170-room Waldorf Astoria, to develop a single 26-story tower next to the hotels, instead of eight- and 18-story buildings that were approved by the city council and a voter referendum in 2008. Alagem’s plan sets aside the remaining 1.7 acres (0.7 hectares) for a public park and gardens. Read the court decision
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Reprinted courtesy of James Nash, Bloomberg

Failing to Release A Mechanics Lien Can Destroy Your Construction Business

May 01, 2023 — William L. Porter - Porter Law Group
Is the title to this article possibly true? Yes, absolutely! I have seen it happen. Let me tell you how it happens so you can avoid such a result. When contractors, subcontractors or suppliers in California construction projects are not paid they often record a mechanics lien on the property on which they worked. This is a customary accepted legal process for the claimant to secure its right to payment. The mechanics lien enables the claimant to eventually sell the property and obtain payment from the proceeds to the extent they remain unpaid. California Civil Code Section 8460 generally requires that a lawsuit to foreclose on a mechanics’ lien must be filed in court within ninety (90) days after the mechanics’ lien is recorded. If no lawsuit has been filed in court within this 90-day period, then the lien generally becomes unenforceable. Because the mechanics lien remains a cloud on the title to the property if not released, the lien claimant usually releases the mechanics lien if they have failed to meet the lawsuit deadline. Lien claimants will also release a lien and/or dismiss the foreclosure lawsuit in exchange for payment. It is rare that the property is actually sold to obtain payment. This is a brief description of the pathway to payment through the use of a mechanics lien. 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

Courthouse Reporter Series: Two Recent Cases Address Copyright Protection for Architectural Works

January 16, 2024 — Stu Richeson - The Dispute Resolver
Recent decisions by the Seventh Circuit and the Eight Circuit have addressed the scope of protection afforded to architectural works under copyright law. The Seventh Circuit case of Design Basics, LLC v. Signature Constr., Inc., 994 F.3d 879 (7th Cir. 2021), took a somewhat narrow view of the copyright protection afforded to the design of an “affordable, multipurpose, suburban, single-family home.” In Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc., 9 F.4th 803 (8th Cir. 2021), cert. denied, 142 S. Ct. 2888, 213 L. Ed. 2d 1103 (2022) the Eight Circuit held that the publication of floor plans of a house in a real estate listing was not protected from claims of copyright infringement. Design Basics, LLC v. Signature Constr., Inc., involved a plaintiff that the court described as holding registered copyrights in thousands of floor plans for suburban, single-family homes that are basic schematic designs, largely conceptual in nature, and depict layouts for one- and two-story single-family homes that include the typical rooms: a kitchen, a dining area, a great room, a few bedrooms, bathrooms, a laundry area, a garage, stairs, assorted closets, etc. The court described the plaintiff as a “copyright troll” and noted that litigation proceeds had become the principal revenue stream for the plaintiff. The plaintiff sued a contractor and related businesses contending hat the defendants had infringed plaintiff’s copyrighted floor plans. Read the court decision
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Reprinted courtesy of Stu Richeson, Phelps
Mr. Richeson may be contacted at stuart.richeson@phelps.com

US Supreme Court Orders All Mountain Valley Gas Line Work to Proceed

August 14, 2023 — Debra K. Rubin - Engineering News-Record
In a ruling without explanation in response to an emergency appeal by the project developer, the U.S. Supreme Court on July 27 said work to complete the Mountain Valley gas pipeline can proceed. The decision follows an order earlier this month by the Richmond, Va., appeals court to halt restart of work on the much-litigated and delayed $6.6-billion, 303-mile natural gas pipeline in Virginia and West Virginia, after new lawsuits filed by opponent groups. 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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Leftover Equipment and Materials When a Contractor Is Abruptly Terminated

November 06, 2023 — Brian Perlberg - ConsensusDocs
Termination for cause is costly and adversarial and has been covered in this article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract. Under ConsensusDocs, a constructor must give its permission to use any equipment or supplies left at the worksite, such as a crane.[i] Moreover, the owner must indemnify the constructor for using their equipment. This makes sense because even if a constructor were appropriately terminated for cause, using their equipment and materials they no longer possess or control unfairly creates additional liability exposure. At a minimum, the owner should take on the risk of using the equipment and materials since they benefit from such use. Read the court decision
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Reprinted courtesy of Brian Perlberg, ConsensusDocs Coalition
Mr. Perlberg may be contacted at bperlberg@ConsensusDocs.org

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