Cambridge Massachusetts Building Expert Directory

In All Fairness: Illinois Appellate Court Finds That Arbitration Clause in a Residential Construction Contract Was Unconscionable and Unenforceable

August 22, 2022 — Gus Sara - The Subrogation Strategist
In Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between the parties and, as a result, dismissing the plaintiff’s lawsuit. The Appellate Court found that even if the arbitration clause was enforceable, the appropriate action would have been for the court to stay the lawsuit, as opposed to dismissing the case entirely. The Appellate Court then considered the language of the arbitration clause and found that several provisions were substantively unconscionable, which rendered the entire arbitration clause unenforceable. The Appellate Court reversed the lower court’s decision compelling arbitration and reinstated the plaintiff’s complaint. In 2018, the plaintiff, Ms. Bain, a disabled senior citizen, hired the defendant, Airoom, LLC (Airoom), to renovate her home. Airoom provided its “Cash Sales Contract,” which included a binding arbitration clause. The clause required that any dispute arising or relating to the contract be resolved by binding arbitration through the American Arbitration Association (AAA), using the Construction Industry Arbitration Rules and Mediation Procedures (Construction Industry Rules). Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Construction Termination Part 2: How to Handle Construction Administration When the Contractor Is Getting Fired

August 01, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
If you’ve been working as a design professional for any length of time, you know that you must be a chameleon on the construction project. You need to “step into the skin” of both the Owner and the Contractor to determine who is at fault, and who should pay. You are usually the Initial Decision Maker (IDM), and so you have a duty under the AIA documents to act fairly and impartially in making those decisions. See AIA B101§3.6.2.4. Even if you are not under an AIA contract, you still have that duty if you are the IDM or handling construction administration for the project. More often than not, however, it will be the owner asking you to support its termination of the contractor “for cause.” Should you do so? Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations

November 21, 2017 — Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLP
Originally published by CDJ on June 15, 2017 Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018. THE NEW LAW – SB 496 SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof. However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists). Reprinted courtesy of Mark Himmelstein, Newmeyer & Dillion LLP and Jenny Guzman, Newmeyer & Dillion LLP Mr. Price may be contacted at mark.himmelstein@ndlf.com Ms. Zucker may be contacted at jenny.guzman@ndlf.com Read the court decision
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Defining Constructive Acceleration

March 22, 2021 — David Adelstein - Florida Construction Legal Updates
When it comes to the definition of “constructive acceleration,” the case of Fraser Const. Co. v. U.S., 384 F.3d 1354 (Fed.Cir. 2004) is a cited case and contains an instructive definition, quoted below, for proving a constructive acceleration claim. In a nutshell, a constructive acceleration claim is when the contractor incurs added costs for trying to complete the contract on time when it should be provided extensions of time to perform based on excusable delay (i.e., delay not caused by the contractor). These added costs could be bringing in additional supervision to manage the work, adding manpower to perform the work, working overtime, working weekends, adding more shift work, stacking trades, etc. However, just because a contractor claims they have been constructively accelerated does not make it so. The contractor has to actually ask for an extension of time based on an excusable delay and the owner either denied the extension or unreasonably sat on the request for an extension of time; thus, the contractor incurred significant costs to accelerate in order to finish the project on time because it was deprived of a requested time extension for excusable delay. 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

ENR 2024 Water Report: Managers Look to Potable Water Reuse

July 15, 2024 — Pam McFarland - Engineering News-Record
With nearly all seven states within the 250,000-sq-mile Colorado River basin scrambling to conserve their apportionments from the river system’s increasingly depleted resources, interest in securing alternative local drinking water supplies is soaring. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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First Suit Filed for Losses Caused by COVID-19

March 30, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants. The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy. 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

How Drones are Speeding Up Construction

July 26, 2017 — Aarni Heiskanen - AEC Business
Drones, or unmanned aerial vehicles (UAVs), are being used in many industries, e.g. agriculture, construction, mining, oil & gas, mapping, and surveying. In construction, drones have proven to be quite disruptive, offering huge productivity increases. Gartner’s famous Hype Cycle for Emerging Technologies, 2016, positioned drones as just entering the Peak of Inflated Expectations. Gartner claims that, “Smart machine technologies will be the most disruptive class of technologies over the next 10 years due to radical computational power, near-endless amounts of data, and unprecedented advances in deep neural networks.” Commercial UAVs are one of the smart machine technologies in question, together with smart robots, autonomous vehicles, cognitive expert advisors, and others. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

Renee Zellweger Selling Connecticut Country Home

August 06, 2014 — Emily Heffter – Bloomberg
You had me at seven fireplaces (and a bread oven). Actress Renee Zellweger’s Connecticut country home, on the market for $1.6 million, is hardly roughing it. The luxury farmhouse, built in 1770 and updated in 2004, is a stylish and luxurious country getaway. Set on 38 acres overlooking the Quinebaug River in rural Pomfret Center, the retreat at 96 Cotton Rd is 3,463 square feet with a top-of-the-line kitchen, a bread oven in the family room and a swimming pool. Read the court decision
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Reprinted courtesy of Emily Heffter, Zillow

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