FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Statutory Bad Faith and an Insured’s 60 Day Notice to Cure

April 11, 2018 — David Adelstein - Florida Construction Legal Updates
A recent case came out in favor of an insured and against a first-party property insurer in the triggering of a statutory bad faith action. Florida’s Fifth District Court of Appeal in Demase v. State Farm Florida Insurance Company, 43 Fla. L. Weekly D679a (Fla. 5th DCA 2018) held that if an insurer pays a claim after the 60-day notice to cure period provided by Florida Statute s. 624.155(3), this “constitutes a determination of an insurer’s liability for coverage and extent of damages under section 624.155(1)(b) even when there is no underlying action.” Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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Think Before you Execute that Release – the Language in the Release Matters!

June 17, 2024 — David Adelstein - Florida Construction Legal Updates
If you execute a release in exchange for payment or other consideration, remember the language in the release means something. THE RELEASE LANGUAGE MATTERS! And the meaning in the release may be way more than you intended so please make sure you truly digest and consider release language before executing. This sentiment could not be truer than in the 2009 decision Bell BCI Company v. United States, 570 F.3d 1337 (Fed. Cir. 2009). In this case, a contractor entered into a modification (change order) with the government. The modification included the following language: increase the contract amount by $2,296,963 … as full and equitable adjustment for the remaining direct and indirect costs of the Floor 4 Fit-out (EWO 240–R1) and full and equitable adjustment for all delays resulting from any and all Government changes transmitted to the Contractor on or before August 31, 2000. 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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WA Supreme Court Allows Property Owner to Sue Engineering Firm for Lost Profits

February 25, 2014 — Beverley BevenFlorez-CDJ STAFF
In the Daily Journal of Commerce, Scott A. Smith and James H. Wendell discussed the recent Washington Supreme Court decision in Donatelli v D. R. Strong Consulting Engineers. The court’s ruling casts “doubt on a company's ability to limit its liability for economic losses arising out of a contract dispute.” The Donatellis hired D. R. Strong Consulting Engineers to develop vacant land in King County, however, the “project did not go according to plan and the real estate market collapsed before the project was completed,” according to the Daily Journal of Commerce. The “Donatellis lost their property through foreclosure” and then “sued the engineering firm for more than $1.5 million in lost profits.” D. R. Strong Consulting Engineers asked for the negligence claims to be dismissed “because the parties' contract contained a provision limiting the engineering firm's liability to the amount of its fee for ‘any injury or loss on account of any error, omission, or other professional negligence.’” However, the Washington Supreme Court ruled that “the case could proceed in the trial court on a theory that the engineers could be liable if they made negligent misrepresentations that induced the Donatellis to enter into the contract in the first place.” Smith and Wendell stated that because of “this decision, engineering, architectural, construction, and other professional service companies may now face damage claims they thought they were contractually protected against.” Read the court decision
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Part II: Key Provisions of School Facility Construction & Design Contracts

July 21, 2018 — David R. Cook - Autry, Hall & Cook, LLP
In Part I of this article, published in late April, we discussed the performance risk and time risk involved with construction and design contracts, and in Part II, we will cover cost risk and political risk. Cost Risk School budgets are limited for many reasons, and the construction budget is no exception. As a result, contracts should guard against unwarranted cost increases and claims. In the absence of a written change order signed by the appropriate officer, the contract should absolutely prohibit additional compensation for changes in the work. It should forbid claims for all events except those within the school authority’s sole control. Even for permitted claims, the contractor must provide written notice so that the authority might alleviate the problem and control its costs. To encourage the contractor to limit costs and claims, the contract could include a shared-savings clause, which grants an incentive payment for completion within the budget. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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#8 CDJ Topic: The Las Vegas HOA Fraud Case Concludes but Controversy Continues

December 30, 2015 — Beverley BevenFlorez-CDJ STAFF
In the long-running case involving the scheme to take over and defraud homeowner associations in Las Vegas, Nevada, the Las Vegas Review-Journal reported that a “total of 43 defendants either pleaded guilty or were convicted at trial in what prosecutors say is the largest public corruption case ever in Nevada.” Despite the conclusion of the trial and the convictions, “U.S. Magistrate Judge George Foley Jr. denied a June request by the Las Vegas Review-Journal to dissolve two protective orders keeping secret 6 million pages of documents, including 10,000 pages of FBI and other law enforcement reports.” Read the full story... Reported in an editorial, the Las Vegas Review-Journal attorney Maggie McLetchie stated after Judge Foley’s ruling: “It’s our view the public and the newspaper should be able to evaluate a law enforcement investigation including assessing why the government may have gone more lightly on some people. Given the issues…within the U.S. attorney’s office, it’s in the public’s interest to probe what occurred.” Read the full story... Read the court decision
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Musk’s Cousins Battle Utilities to Make Solar Rooftops Cheap

April 15, 2015 — John Lippert and Christopher Martin – Bloomberg
In September 2013, Hawaiian Electric Co. told thousands of customers they couldn’t connect their new solar panels to its distribution grid. In some neighborhoods, HECO said, its system couldn’t absorb any more unused energy from home solar arrays. The moratorium, which lasted 13 months, made Hawaii a central battleground in the effort by utilities to control the rapid growth of independent solar companies across the U.S. And it was a big deal to people such as Robert Gould, a retired Northwest Airlines pilot living near Honolulu. He’d just paid $53,000 to have solar panels installed. Gould and other customers protested loudly to state officials. They finally got help from Lyndon Rive, the CEO of SolarCity. The San Mateo, California, company is the biggest installer of rooftop solar panels in the U.S. and has 10,000 Hawaiian customers, Bloomberg Markets magazine reports in its May issue. Rive studied the situation and zeroed in on a key fact: HECO had never directly measured how much solar its grid could handle, relying on computer simulations instead. “Because the technology is brand-new, no one had ever done this in the field before,” says Colton Ching, HECO’s vice president for energy delivery. Reprinted courtesy of John Lippert, Bloomberg and Christopher Martin, Bloomberg Read the court decision
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The Law Clinic Paves Way to the Digitalization of Built Environment Processes

February 11, 2019 — Aarni Heiskanen - AEC Business
The Law Clinic offers legal advice on digitalization to built environment innovators and experimenters and in the process helps lawmakers find the pain points in legislation. In April 2018 the Finnish Ministry of the Environment launched an experimental legal service for real estate and construction professionals, municipalities, and lawmakers. The cost-free service is like a helpdesk for anyone who has questions about real estate and construction laws and regulations and their interpretation as it applies to new digital processes. The Law Clinic is part of the national KIRA-digi project, which includes 138 experiments, many of which need legal advice for their execution. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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COVID-19 and Mutual Responsibility Clauses

June 01, 2020 — Joseph M. Leone - ConsensusDocs
As everyone knows, there is a tremendous amount of uncertainty in the construction industry due to the COVID-19 pandemic. Schedules, productivity, safety processes, and seemingly everything else are being affected. In these difficult times, most contractors are making every effort to work together to solve the problems caused by COVID-19. But what happens when differences arise between project owners, contractors, and subcontractors as to the effect of COVID-19 on a project? One party may want to continue pushing the schedule, others may want to slow down, or, more likely, not be able to keep up with the original schedule because of some reason related to COVID-19. As between a prime contractor and a subcontractor, a mutual responsibility clause can provide some clarity or, unfortunately, depending on how the subcontract is written, confusion. Almost all subcontracts have a clause which flows down the prime contractor’s obligations on a project to the subcontractor as applicable to the subcontractor’s work. Known as “flow-down” clauses, this clause works in one direction; obligations of the prime contractor “flow-down” to the Subcontractor. A mutual responsibility clause, in essence, works in both directions. The subcontractor is required to perform its obligations consistent with the prime contractor’s obligations to the owner and the subcontractor is granted the same rights against the prime contractor which the prime contractor has against the owner. Obligations flow down and rights flow up. The rights and obligations flowing through the prime contractor include, the obligation to perform the work in accordance with the plans and specifications, the obligation to meet the schedule constraints in the prime agreement, and the right to extensions of time and change orders to the extent the prime contractor obtains the same. Read the court decision
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Reprinted courtesy of Joseph M. Leone, Drewry Simmons Vornehm, LLP
Mr. Leone may be contacted at jleone@dsvlaw.com

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