Fairfield Connecticut Building Expert Directory

Just Because You Allege There Was an Oral Contract Doesn’t Mean You’re Off the Hook for Attorneys’ Fees if you Lose

March 28, 2022 — Garret Murai - California Construction Law Blog
There’s certain things in life you shouldn’t mix. Like drinking and driving. Bleach and ammonia. Triple dog dares and frozen poles. And angry lawyers and litigation. In Spahn v. Richards, Case No. A159495 (November 30, 2021), angry lawyer Jeffrey Spahn sued general contractor Dan Richards claiming that Richards orally agreed to build Spahn’s million dollar plus house for $515,000. Not only did Spahn not recover anything from Richards, he ended up owing Richards $239,171 in attorney’s fees and costs, after he denied a request for admission asking that he admit that there was no oral contract. The Spahn Case In 2017, Spahn filed suit against Richards for breach of oral contract, breach of implied covenant of good faith and fair dealing, and promissory estoppel. According to Spahn, he met Richards in June 2015 and the two reached an agreement whereby Richards agreed to demolish Spahn’s house for $12,500 and build a new one for $515,000. Further according to Spahn, Richards agreed to this “fixed price” “oral contract” in June 2015, and then, on July 1, 2015, Richards “confirmed and agreed that he would perform the construction project” for $515,000 and would complete construction by May 2016. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

September 10, 2018 — Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog
In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion. The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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“You’re Out of Here!” -- CERCLA (Superfund) Federal Preemption of State Environmental Claims in State Courts

October 20, 2016 — Joshua J. Anderson & John E. Van Vlear – Newmeyer & Dillion LLP
The Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C § 9601 et seq. (“CERCLA”), commonly referred to as “Superfund,” is a federal statute that provides funding and cost-recovery to address our nation’s worst hazardous-waste sites. While CERCLA generally vests United States District Courts with exclusive original jurisdiction over all related controversies, section 113(h) of the Act delays such jurisdiction while the United States Environmental Protection Agency supervises or undertakes environmental response action plans. What impact does this delayed federal jurisdiction have on state law claims brought in state courts? Short answer: “You’re out of here!” Litigants are precluded from bringing claims in state court that “challenge” environmental response actions under CERCLA during the pendency of those actions. Reprinted courtesy of Joshua J. Anderson, Newmeyer & Dillion LLP and John E. Van Vlear, Newmeyer & Dillion LLP Mr. Anderson may be contacted at joshua.anderson@ndlf.com Mr. Van Vlear may be contacted at john.vanvlear@ndlf.com Read the court decision
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Charles Carter v. Pulte Home Corporation

October 12, 2020 — Michael Velladao - Lewis Brisbois
In Carter v. Pulte Home Corp., __Cal.App.5th__(July 23, 2020), the California Court of Appeal affirmed the entry of judgment in favor of subcontractors in connection with a Complaint for Intervention based on equitable subrogation filed by Travelers Property Casualty Company of America (“Travelers”) seeking to recover defense costs incurred in defending Pulte Home Corporation (“Pulte”) in an underlying construction defect lawsuit. The parties’ dispute arose out of Travelers’ defense of Pulte as an additional insured under policies issued to four subcontractors involved in the underlying construction defect lawsuit. Several subcontractors involved in the underlying construction defect lawsuit refused to defend Pulte based on the indemnity clauses in their subcontracts. Such clauses promised to indemnify Pulte as follows: “all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (“Claims”) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte. . . .” Pulte eventually settled the construction defect lawsuit and its claims against all of the subcontractors. Travelers ultimately paid $320,491.82 for Pulte’s defense and recovered $164,400 from some of the subcontractors. Travelers’ intervention in the underlying lawsuit was intended to recover the remaining $156,091.82 from the subcontractors that refused to indemnify Pulte for the defense of the construction defect lawsuit. In the underlying trial, Travelers argued that the subcontractors were obligated to pay defense costs on a joint and several basis (minus what Travelers had already recovered). The trial court did not agree and held that Travelers was not entitled to equitable subrogation for the remaining defense costs. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

Contractor Suffolk's Hospital Project Is on Critical List After Steward Health Care Bankruptcy

January 14, 2025 — Richard Korman - Engineering News-Record
Before it was hit by troubles that now threaten to kill it, a new hospital being built by Suffolk Construction in Norwood, Mass., was shaping up as a tale of recovery. The existing hospital on the site had been forced to shut most local operations since a devastating rainfall and flood in 2020. Read the court decision
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Reprinted courtesy of Richard Korman, ENR

White House Hopefuls Make Pitches to Construction Unions

May 20, 2019 — Bruce Buckley - Engineering News-Record
As the 2020 presidential election draws nearer, many Democratic hopefuls are beginning to seek construction unions’ support. Eight declared candidates made their pitches to members of the North America’s Building Trades Unions at the group’s legislative conference April 9-10 in Washington, D.C. Several promised a major infrastructure package of $1 trillion or more, which aligns with the trades’ legislative agenda. But many seeking endorsement will wrestle with balancing calls for a green economy and unions’ demand for traditional oil and gas sector jobs. Read the court decision
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Reprinted courtesy of Bruce Buckley, ENR
ENR may be contacted at ENR.com@bnpmedia.com

A Lack of Sophistication With the Construction Contract Can Play Out In an Ugly Dispute

November 07, 2022 — David Adelstein - Florida Construction Legal Updates
There are times where a lack of sophistication can come back to haunt you. This is not referring to a lack of sophistication of the parties. The parties, themselves, could be quite sophisticated. This is referring to a lack of sophistication with the construction contract forming the basis of the relationship. While parties don’t always want to buy into the contract drafting and negotiation process, it is oftentimes the first document reviewed. Because contract terms and conditions are important. They govern the relationship, the risk, scope, amount, and certain outcomes with disputes. However, a lack of sophistication can play out when that contract that should govern the relationship, the risk, the scope, the amount, and certain outcomes doesn’t actually do that, or if it does, it does it poorly. An example of how bad a dispute can play out when it comes to the lack of sophistication on the front end is Avant Design Group, Inc. v. Aquastar Holdings, LLC, 2022 WL 6852227 (Fla. 3d DCA 2022), where a cost-plus contract was treated as a lump sum contract. Here, an owner planned to perform an extensive interior build-out to a residential unit. The owner had an out-of-country architect; because the architect was not licensed in Florida, the owner hired a local architect/designer to oversee construction and obtain goods and services for the residential interior build-out. The contract was nothing but a proposal of items and costs. The proposal stated the owner “would pay the cost of goods and services of the vendors, plus pay a ‘20% Interior Design & Administrative Fee’” to the local designer. Avant Design Group, 2022 WL at *1. The proposal further stated, “This preliminary budget of the Client’s construction costs include [sic] anticipated costs for construction materials, labor and sales tax. Any other cost, including but not limited to freight, cartage, shipping, receiving, storage and delivery are not included in the preliminary budget and will be invoiced separately.” Id., n.2. 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

Construction Litigation Roundup: “You Left Out a Key Ingredient!”

September 12, 2023 — Daniel Lund III - Lexology
“Baking is as much of a science as it is an art. It’s important to take the time to understand what you’re doing and why. Skipping steps can make or break your cupcakes, and there are a lot of things that can go wrong when baking from scratch.” And so it is with construction contract drafting. Defendants on a Miller Act claim filed by a second-tier subcontractor in federal court in Pensacola, Florida, sought to have the case transferred to Virginia, based upon a forum selection clause in the first-tier subcontract. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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