Fairfield Connecticut Building Expert Directory

Coverage, Bad Faith Upheld In Construction Defect Case

October 26, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's finding of coverage for faulty workmanship allegations and bad faith by the insurer. Pulte Home Corp. v. Am Safety Indem. Co., 2017 Cal. App. LEXIS 748 (Cal. Ct. App. Aug. 30, 2017). Pulte Home Corporation was the general contractor and developer of two residential projects. American Safety issued several sequential comprehensive general liability policies to three of Pulte's subcontractors which named Pulte as an additional insured. The projects were completed by 2006. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Build Back Better Includes Historic Expansion of the Low-Income Housing Tax Credit Program

December 20, 2021 — James M. Grosser & David W. Wright - Gravel2Gavel Construction & Real Estate Law Blog
On November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act (H.R. 5376), a bill that represents a large portion of the Biden-Harris Administration’s agenda. Among other spending and tax measures, the bill includes an unprecedented expansion of the Low-Income Housing Tax Credit (LIHTC) program. Four proposals are headlining this expansion:

Increasing the 9% LIHTC allocation cap by 10% plus inflation annually from 2022 to 2024. With this increase, the 2024 LIHTC allocation cap will rise to $3.97 per capita and a small state minimum of around $4.58 million, constituting a 41 percent increase in allocable LIHTC over current levels. The allocation cap would then decrease to $2.65 per capita and a small state minimum of $3.12 million in 2025 and would thereafter be indexed to inflation from the 2025 baseline.
Reducing the 50% threshold for 4% tax-exempt bond-financed projects to 25% for five years, beginning in 2022.

Reprinted courtesy of James M. Grosser, Pillsbury and David W. Wright, Pillsbury Mr. Grosser may be contacted at james.grosser@pillsburylaw.com Read the court decision
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Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

November 07, 2012 — CDJ STAFF
In Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration. The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this. PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint. Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.” The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.” As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision. Read the court decision
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Crane Dangles and So Do Insurance Questions

November 07, 2012 — CDJ STAFF
Hurricane Sandy sent a construction crane dangling from the top of One57, a condo construction project in New York City. In response to the risk, the nearby Parker Meridian and other nearby buildings were evacuated until the crane could be stabilized. Businessweek reports that One57 involves “a tangle of companies,” including the developer, Extell Development and the contractor, Lend Lease Construction. Pinnacle Industries was responsible for providing and operating the crane. The insurance claims are yet to be made, but they will likely include the costs of evacuating nearby buildings and to cover any damage to the building itself. David DeLaRue, a vice president in construction practice at Willis Group Holdings said there would be two questions: “Did our insured do anything to cause that loss? Does this policy cover it?” Read the court decision
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Governor Signs AB5 Into Law — Reshaping California's Independent Contractor Classification Landscape

December 02, 2019 — Eric C. Sohlgren & Matthew C. Lewis - Payne & Fears Legal Alert
Today, Governor Gavin Newsom signed California Assembly Bill 5 (“AB5”), controversial legislation which will have a substantial impact on California employers when it goes into effect on January 1, 2020. AB5 enacts into a statute last year’s California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor. Under the ABC test established in Dynamex and now under AB5, a worker may be properly considered an independent contractor only if the hiring entity establishes all three of the following: (A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact; (B) that the worker performs work that is outside the usual course of the hiring entity’s business; and (C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity. Reprinted courtesy of Eric C. Sohlgren, Payne & Fears and Matthew C. Lewis, Payne & Fears Mr. Sohlgren may be contacted at ecs@paynefears.com Mr. Lewis may be contacted at mcl@paynefears.com Read the court decision
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Congress Passes, President Signs Sweeping Energy Measure In Spend Bill

January 04, 2021 — Corinne Grinapol, Tom Ichniowski, & Pam Radtke Russell - Engineering News-Record
The end-of-the-year spending package passed by Congress on Dec. 21 includes the first major energy legislation to be enacted in more than a decade. Reprinted courtesy of Corinne Grinapol, ENR, Tom Ichniowski, ENR and Pam Radtke Russell, ENR Mr. Ichniowski may be contacted at ichniowskit@enr.com Ms. Russell may be contacted at Russellp@bnpmedia.com Read the full story... Read the court decision
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Traub Lieberman Partner Greg Pennington Wins Summary Judgment in Favor of Property Owner

September 12, 2022 — Gregory S. Pennington - Traub Lieberman
In a case brought before the Superior Court of New Jersey, Traub Lieberman Partner Greg Pennington won a motion for summary judgment in favor of their client, the owner of a residential property (“Property Owner”) in Atlantic City, New Jersey. The Property Owner had retained a Construction Company (“Construction Company” or “Contractor”) to perform renovations to the residence, which included building a new staircase. The Plaintiff alleged that while walking down a set of temporary wooden steps on the property, the third step broke, which caused him to fall and resulted in the alleged injuries. The Plaintiff brought suit against the Property Owner and Construction Company for personal injuries as a result of the alleged fall. In the contract between the Property Owner and the Construction Company, it is stated that “[the Contractor] shall be solely responsible for all construction methods and materials and for coordinating all portions of the Work….The Contractor warrants to [the Property Owner] that all materials and equipment incorporated are new and that all work shall be of good quality and free of defects or faults.” The contract continues to state that the Construction Company shall indemnify and hold harmless the Property Owner against all claims, which includes damages, losses, expenses, legal fees and other costs that might arise from the Construction Company’s performance of the work under the contract. Read the court decision
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Reprinted courtesy of Gregory S. Pennington, Traub Lieberman
Mr. Pennington may be contacted at gpennington@tlsslaw.com

The Privette Doctrine, the Hooker Exception, and an Attack at a Construction Site

July 05, 2023 — Garret Murai - California Construction Law Blog
You don’t often hear about workers being attacked by ne’er-do-wells on a construction project. But, as they say, shite happens . . . Construction contracts often address health and safety issues, as well as site security to protect the improvement, materials, equipment and tools, as well as to protect the public from getting hit by say a large crane with a demolition ball, but site security to protect the workers from thugs, not so much. This is exactly what happened to a construction worker in Degala v. John Stewart Company (2023) 88 Cal.App.5th 158 who was jumped and injured by three hoodlums who attacked him while he was working at a job site. The injured worker, an employee of a subcontractor, was covered by workers’ compensation insurance, but also brought claims against the general contractor and project owner for negligence and premises liability and they, in turn, argued they were immune from liability under the Privette doctrine. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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