Fairfield Connecticut Building Expert Directory

Common Construction Contract Provisions: Indemnity Provisions

January 19, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP Blog
Upcoming blog posts will focus on common contract provisions found in construction contracts. Such provisions are not solely limited to construction contracts and can be found in many other types of business contracts as well. This post will highlight indemnity clauses. An indemnity clause is a common contract provision used to allocate risk between parties to a contract. The clause obligates one party (the Indemnitor) to protect the other party (the Indemnitee) from certain losses, typically arising from claims of third parties. It may require the Indemnitor to reimburse the Indemnitee for losses or expenses, or satisfy judgments, or even defend the Indemnitee in a lawsuit. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

History and Gentrification Clash in a Gilded Age Resort

October 05, 2020 — Alex Ulam - Bloomberg
Newport, Rhode Island, is a small New England beachfront town with a permanent population of 26,000 and an amazing collection of historic homes. Billed as “America’s First Resort,” the 350-year-old city on Aquidneck Island hosts more than 3 million tourists every year. They come for the boating, the famous folk and jazz festivals (both canceled this summer), and the architecture. The narrow streets of the Point along the waterfront are lined with hundreds of modest homes from the early 1700s, one of the largest ensembles of colonial architecture in the country. On Historic Hill sits an assortment of grander antebellum, classical and Gothic Revival structures from the latter part of the 18th and early to mid-19th century, many built by Southern plantation owners. Newport also boasts what is probably the most opulent thoroughfare in the country, a several-mile stretch of Bellevue Avenue lined with shade trees and palatial limestone mansions built by Gilded Age robber barons and industrialists. Read the court decision
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Reprinted courtesy of Alex Ulam, Bloomberg

Insurance Policies Broadly Defining “Suits” May Prompt an Insurer’s Duty to Defend and Indemnify During the Chapter 558 Pre-Suit Notice Process

May 30, 2018 — Daniel Garcia - Gordon & Rees Construction Law Blog
In Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Company, No. SC16-1420, 2017 WL 6379535 (Fla. Dec. 14, 2017), the Florida Supreme Court addressed whether the notice and repair process set forth in chapter 558, Florida Statutes, constitutes a “suit” within the meaning of a commercial liability policy issued by Crum & Forster Specialty Insurance Company (“C&F”) to Altman Contractors, Inc. (“Altman”). The Court found that because the chapter 558 pre-suit process is an “alternative dispute resolution proceeding” as included in the definition of “suit” in the policy by C&F to Altman, C&F had a duty to defend Altman during the chapter 558 process, prior to the filing of a formal lawsuit. Chapter 558, titled “Construction Defects,” sets forth procedural requirements before a claimant may file a construction defect action. It requires a claimant to serve a written notice of claim on the applicable contractor, subcontractor, supplier, and/or design professional prior to filing a construction defect lawsuit. The legislature intended for Chapter 558 to be an alternative dispute resolution mechanism in certain construction defect matters allowing an opportunity to resolve the claim without further legal process. Read the court decision
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Reprinted courtesy of Daniel Garcia, Gordon & Rees Scully Mansukhani
Mr. Garcia may be contacted at daniel.garcia@grsm.com

Eighth Circuit Considers Judicial Estoppel in Hazardous Substance Release-Related Personal Injury Case

April 11, 2018 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On April 5, the U.S. Court of Appeals for the Eighth Circuit decided the case of Kirk v. Schaeffler Group USA, Inc., et al., a personal injury action commenced in the U.S. District Court for the Western District of Missouri alleging injury resulting from the release of thousands of gallons of trichloroethylene (TCE) at the FAG Bearings Corporation’s (FAG Bearings) facility in Joplin, MO. The Court of Appeals reversed the District Court’s judicial estoppel ruling on the successor liability issue and concluded that the jury’s verdict on compensatory damages stands but their general verdict requires a new trial on Plaintiff’s punitive damages claim against FAG Bearings. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLP
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

When to Withhold Retention Payments on Private or Public Projects

August 29, 2018 — Nicholas Karkazis - Gordon & Rees Construction Law Blog
To ensure that construction contractors and subcontractors receive timely progress and retention payments, the California Legislature enacted statutes that impose deadlines and penalties on owners and direct (general) contractors who delay payments. (Cal. Civ. Code, §§ 8800, 8802, 8812, 8814; Pub. Contract Code, §§ 7107, 10262.5; Bus. & Prof. Code, § 7108.5.) However, there is an exception to these deadlines and penalties on both private and public projects. The exception allows an owner or direct contractor to withhold payment1 when there is a good faith dispute between an owner and a direct contractor or between a direct contractor and a subcontractor. (Civ. Code, §§ 8800, subd. (b), 8802, subd. (b), 8812, subd. (c), 8814, subd. (c); Pub. Contract Code, §§ 7107, subds. (c), (e), 10262.5, subd. (a); Bus. & Prof. Code, § 7108.5, subd. (a).) But the term “good faith dispute” has been a source of confusion where direct contractors owe subcontractors retention payments, but want to withhold the payment because of a dispute.2 California appellate courts were split, with one court finding that any type of bona fide dispute justified withholding, and another finding that only disputes related to the payment itself justified withholding. (Compare Martin Brothers Construction, Inc. v. Thompson Pacific Construction, Inc. (2009) 179 Cal.App.4th 1401 [any bona fide dispute could justify withholding] with East West Bank v. Rio School Dist. (2015) 235 Cal.App.4th 742 [disputes related to the payment itself may justify withholding].) In May 2018, the California Supreme Court clarified that for a direct contractor to withhold a retention payment on a private project, the good faith dispute must somehow relate to the payment itself. (United Riggers & Erectors, Inc. v. Coast Iron & Steel Co. (2018) 4 Cal.5th 1082, 1097-1098.) Read the court decision
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Reprinted courtesy of Nicholas Karkazis, Gordon & Rees Scully Mansukhani
Mr. Karkazis may be contacted at nkarkazis@grsm.com

Colorado Court of Appeals Enforces Limitations of Liability In Pre-Homeowner Protection Act Contracts

February 14, 2013 — Heidi Gassman — Higgins, Hopkins, McLain & Roswell, LLC
Keirns Construction Co. (“Keirns”) hired Landmark Engineering, Ltd. (“Landmark”) to provide a geotechnical investigation and foundation designs for two duplexes Keirns built in Larimer County. Keirns and Landmark signed one contract in 2001 for the geotechnical work and two separate contracts in 2005 for the foundation design of the two duplexes. Each contract contained an identical “risk allocation clause,” which had language specifically limiting Landmark’s liability to Keirns. The risk allocation clause also had language specifically prohibiting claims against individuals and only allowing claims against a corporation. After the two duplexes were built, foundation problems developed, and Keirns filed suit against Landmark for breach of contract and negligence. Keirns also filed suit against two individual employees of Landmark, Wayne Thompson and Larry Miller, for negligence. Messrs. Thompson and Miller performed the geotechnical and design services pursuant to the contracts. Landmark and Messrs. Thompson and Miller filed a motion seeking to enforce the risk of allocation clauses in the contracts, thereby limiting Landmark’s liability. Messrs. Thompson and Miller also filed a summary judgment motion seeking their dismissal from the case based on the prohibition in the risk allocation clause against asserting claims against individuals. Read the court decision
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Reprinted courtesy of Heidi Gassman
Ms. Gassman can be contacted at gassman@hhmrlaw.com

Hawaii Federal District Court Grants Preliminary Approval of Settlement on Volcano Damage

September 13, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court granted preliminary approval of the class action settlement reached on behalf of insureds who suffered property damage due to the 2018 Kilauea eruption on the Big Island. Aquilina v. Certain Underwriters at Lloyd's London, 2021 U.S. Dist. LEXIS 152614 (D. Haw. Aug. 13, 2021). After destruction of their homes due to lava flow, plaintiffs sued various insurers and agents as a putative class action. Plaintiffs claimed they purchased surplus lines policies brokered and underwritten by various defendants. The policies each contained an exclusion for the peril of lava flow, which plaintiffs claimed rendered them worthless or unsuitable given that their properties were located in a high-risk lava zone. Plaintiffs alleged that defendants breached obligations under the Hawaii Surplus Lines Act, which required that surplus lines insurers conduct a diligent search for other available coverage before placing a homeowner with surplus lines coverage. Plaintiffs alleged defendants should have advised them of the availability of lava-damage coverage through the Hawaii Property Insurance Association (HPIA), a statutorily created association of admitted insurers established in part in response to Kilauea's eruption patterns, which made the private insurance market less likely to Insure certain high-risk areas. 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

Health Care Construction Requires Compassion, Attention to Detail and Flexibility

July 01, 2019 — Coker Barton - Construction Executive
When it comes to renovating and expanding hospitals, there is one principle that everyone can agree on: patients, family and hospital staff must be placed at the forefront of every stage of the job, ultimately dictating the project’s timeline. For a health care project to be a success, a general contractor needs to have industry-specific experience, must emphasize communication and scheduling and—most importantly—have a passion for the industry. Capably and safely work in a health care environment Health care requires a level of detail and understanding of the industry that is not found in other construction sectors. Builders must focus on infection control and interim life safety measures to protect patients, visitors and staff. There is accountability involved that goes beyond completing a project right on schedule. For example, the expansion of The Studer Family Children’s Hospital at Sacred Heart in Pensacola, Fla., included a new 175,000-square-foot tower in addition to building out space above the Neonatal Intensive Care Unit. Anytime the contractor is building next to or over patients, especially those who are most vulnerable, it is on alert. It sets up containment areas, which help maintain the negative pressure in the construction area by pulling air in versus blowing dirty air out, as well as keep dust and other contaminants inside the construction area. There is no room for mistakes, which is why these techniques require more training and experience to properly execute. Reprinted courtesy of Coker Barton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES