Fairfield Connecticut Building Expert Directory

Designed to Expose: Beware Lender Certificates

August 20, 2018 — Jacob Goodelman - Gordon & Rees Construction Law Blog
Danny the Developer wishes to build Greenacre, a large residential and retail condominium complex in downtown Boston. However, Danny’s lender – the Bank of Barbara – will not lend Danny the money to develop the complex unless Danny’s architect signs a lender certificate. Danny presents the lender certificate to Allie the Architect, the certificate is relatively short and simple, it states:

“Allie the Architect prepared plans and specifications relating to Greenacre. Allie the Architect certifies that the plans are in accordance with all applicable zoning, building, housing and other laws, ordinances, regulations including but not limited to the Federal Fair Housing Act, the Uniform Federal Accessibility Standards, and the Americans with Disability Act. The Plans do not encroach over, across or upon any such easements, rights-of-way, or subsurface rights and the like. Allie further certifies that the load bearing capacity of the soil is adequate to support the plans. The Bank of Barbara shall rely upon Allie the Architects certification in loaning money to Danny the Developer for Greenacre.”

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Reprinted courtesy of Jacob Goodelman, Gordon Rees Scully Mansukhani
Mr. Goodelman may be contacted at jgoodelman@grsm.com

Fifth Circuit Reverses Summary Judgment Award to Insurer on Hurricane Damage Claim

December 18, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit reversed the district court's grant of summary judgment to the insurer on a property damage claim arising from Hurricane Harvey. Advanced Indicator and Manufacturing, Inc. v. Acadia Ins. Co., 50 F.4th 469 (2022). After Hurricane Harvey struck southern Texas in 2017, Advanced submitted a claim to Acadia for damage to its building that it claimed was caused by the hurricane's winds. Acadia sent an adjuster, Nick Warren, as well as an engineer, Jason Watson. Watson determined that pre-existing conditions - including ongoing leaks from deterioration and poor workmanship - caused the damage, rather than winds from Hurricane Harvey. Warren adopted these conclusions in his recommendations to Acadia. Acadia denied Advanced's claim based on these reports. Advanced sued Acadia, alleging breach of contract and bad faith. Advanced filed a motion to remand to state court which was denied. Acadia moved for summary judgment arguing that it did not breach the policy and that Advanced could not segregate any damages caused by hurricane from pre-existing damage. The district court granted Acadia's motion, finding that Acadia's denial of Advanced's claim was based on "extensive consideration of the evidence." Further, Advanced failed to carry its burden of showing that covered and non-covered damages could be segregated as required by Texas's concurrent causation doctrine. Finally, the bad faith claim was dismissed because there was no breach of contract. 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

Gordon & Rees Ranks #5 in Top 50 Construction Law Firms in the Nation

June 29, 2020 — Gordon Rees Scully Mansukhani
Gordon Rees Scully Mansukhani has been ranked the #5 construction law firm in the nation by Construction Executive in the magazine’s 2020 ranking of The Top 50 Construction Law Firms. Gordon & Rees is the only California-based law firm to rank in the Top 25. The firm was ranked in the Top 10 in more specific areas as well.

#1 in the Top 10 Law Firms Ranked by Most Locations
#2 in the Top 10 Law Firms Ranked by Number of Construction Attorneys
#6 in the Top 10 Law Firms Ranked by Number of States Admitted to Practice

“With offices throughout the nation and outstanding construction attorneys in many of those offices, we are able to offer our construction clients a diverse range of legal services wherever they do business,” said Ernie Isola partner and co-chair of the firm’s construction practice group. Read the court decision
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Reprinted courtesy of Gordon Rees Scully Mansukhani

Are We Headed for a Work Shortage?

June 17, 2015 — Craig Martin – Construction Contractor Advisor
A recent Wall Street Journal article, Worker Shortage Hammers Builders, noted that construction industry employers are facing a tight labor market. “U.S. builders shed more than 2 million jobs during and after the housing bust. Now they say they can’t find enough carpenters, electricians, plumbers and other craftsmen for a growing pipeline of work.” That is certainly consistent with everything that I’ve heard and read about construction companies in the Midwest. Unfortunately, it seems as though the problem is only going to get worse. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Commercial Construction Lenders Rejoice: The Pennsylvania Legislature Provides a Statutory fix for the “Kessler” Decision

July 16, 2014 — Thomas C. Rogers – White and Williams LLP
In May 2012, the Pennsylvania Superior Court rendered its now infamous “Kessler” decision. The Kessler decision resulted in fundamental changes in the operation of the Pennsylvania Mechanics Lien Act as it applied to construction loans where the visible commencement of work on the project commenced before the recordation of the construction loan’s open-end mortgage. Essentially, the Kessler decision held that if the visible commence of work on the project began prior to the recording of the open-end mortgage and any loan advances were made other than for what are commonly considered “hard construction” costs, then any unpaid contractors and subcontractors who later filed mechanics’ liens would have their liens take priority over the lien of all of the construction loan advances. Subsequent to the Kessler decision, both the lending and title insurance communities in Pennsylvania have struggled mightily to structure deals around the problems created by Kessler and to provide lenders with title insurance coverage for construction loans when work commenced before the recordation of the open-end mortgage. Read the court decision
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Reprinted courtesy of Thomas C. Rogers, White and Williams LLP
Mr. Rogers may be contacted at rogerst@whiteandwilliams.com

Hollywood Legend Betty Grable’s Former Home for Sale

June 30, 2014 — Catherine Sherman – Bloomberg
When it comes to Old Hollywood stars, Betty Grable was “the girl with the million-dollar legs.” She also lived in a million-dollar home just four blocks from the Hotel Bel-Air. Located at 1280 Stone Canyon Rd, the house is currently on the market for $13.295 million. “It’s a classic, Hollywood estate,” said listing agent Bjorn Farrugia of Hilton & Hyland. “It’s very picturesque — set back on one of the best streets in Bel-Air.” Grable moved in after the home was built in 1937, the same year she married actor Jackie Coogan (aka “Uncle Fester” in the 1960s sitcom The Addams Family). Soon after, in 1939, the couple appeared in “Million Dollar Legs,” a movie giving rise to the actress’ nickname. Read the court decision
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Reprinted courtesy of Catherine Sherman – Bloomberg

Florida Law: Interplay of SIR and the Made-Whole Doctrine

March 12, 2015 — Beverley BevenFlorez-CDJ STAFF
Amanda Baggett of Roger Towers explained the nuances of self-insured retention or “SIR,” which “typically refers to a dollar amount stated in a liability policy that the insured must satisfy before the insurer is required to defend or indemnify a claim.” Baggett stated that most of the time, the SIR is satisfied by the insurer paying the initial defense costs up to the SIR. However, “the Florida Supreme Court has held that an insured may satisfy the SIR using funds received from a third party. Intervest Construction of Jax, Inc. v. General Fidelity Ins. Co., 133 So. 3d 494 (Fla. 2014).” Read the court decision
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Another Guilty Plea In Nevada Construction Defect Fraud Case

April 25, 2012 — CDJ STAFF

The eleventh defendant has entered a guilty plea in the ongoing federal investigation of construction defect fraud in the Las Vegas area. Mahin Quintero plead guilty to producing a false authentication feature, a misdemeanor. Ms. Quintero’s part in the scheme was to falsely authenticate signatures on loan documents for straw buyers. Ms. Quintero stated in court that she had been ordered to destroy her notary book three years ago. According to her plea bargain, the straw buyers did not appear in front of her when she notarized their signatures. As part of the scheme, the straw buyers would take control of homeowners associates, sending construction defect complaints and repairs to favored firms.

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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES