FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Trump Tower Is Now One of NYC’s Least-Desirable Luxury Buildings

July 08, 2019 — Shahien Nasiripour - Bloomberg
Trump Tower, once the crown jewel in Donald Trump’s property empire, now ranks as one of the least desirable luxury properties in Manhattan. The 36-year-old building has been turned into a fortress since Trump won the presidency, ringed with concrete barriers and the two main entrances partially blocked off. It hasn’t been substantially updated in years. And Trump’s name has been a huge turnoff in liberal New York City. For anyone who owns a unit in the tower, the past two years have been brutal. Most condo sales have led to a loss after adjusting for inflation, property records show. Several sold at more than a 20% loss. By contrast, across Manhattan, just 0.23% of homes over the past two years sold at a loss, according to real-estate data provider PropertyShark, although the firm doesn’t adjust for inflation. Read the court decision
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Reprinted courtesy of Shahien Nasiripour, Bloomberg

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Personal Injury Claims – The Basics

February 11, 2019 — Jessica L. Mulvaney - Bremer Whyte Brown & O'Meara LLP
Personal injury claims can manifest in multiple ways, and while procedurally many may be similar, no two cases are ever exactly alike. The basis of all personal injury claims is a person suffering some injury or harm. The laws related to personal injury claims are in place to allow for the party at fault to be held responsible, and the injured party to seek a remedy and be “made whole” after suffering injury. Typical causes of action for personal injury claims can include intentional actions (torts) against an individual, negligence, or strict liability. At the heart of all injury claims are the issues of liability and damages. Liability is the determination of whether the defendant being accused of the harm is responsible, i.e. caused the injury and resulting harm. Damages is a concept that encompasses the harm a person suffered as a result of the injury. For personal injury, typical damages can include medical bills, loss of earnings, future medical care, and pain and suffering. Read the court decision
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Reprinted courtesy of Jessica L. Mulvaney, Bremer Whyte Brown & O'Meara LLP

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The Road to Hell is Paved with Good Intentions: A.B. 1701’s Requirement that General Contractors Pay Subcontractor Employee Wages Will Do More Harm Than Good

November 02, 2017 — Steven M. Cvitanovic & Omar Parra - Haight Brown & Bonesteel LLP
Tales of subcontractors who close up shop before paying their employees are not all that uncommon, but they are certainly not common enough to require General Contractors to pay for that same labor twice. Last month, the California Legislature passed Assembly Bill No. 1701, which requires the General Contractor of a private construction project to pay all unpaid wages and fringe benefits owed to an employee of a subcontractor, irrespective of the tier, and even if the General Contractor made the payment. With the Governor’s recent signature, Assembly Bill No. 1701 is now the law of the land. Here is what you need to know:

• It applies to all private (but not public) construction contracts entered into on or after January 1, 2018;
• It gives a subcontractor’s employee a direct cause of action against the General Contractor for any unpaid wages and fringe benefits, even if the General Contractor has fully paid the subcontractor;
• It gives a third party owed fringe or other benefits a cause of action against the General Contractor;
• All actions by the employee or third party must be filed within one year of the earliest of the recordation of the notice of completion, the recordation of the notice of cessation of work, or the actual completion of the work;
• The General Contractor cannot contract to avoid the liability imposed by Assembly Bill No. 1701, but it can seek indemnity from the subcontractor; and
• At the General Contractor’s request, the subcontractor shall provide the General Contractor with its payroll records.

Reprinted courtesy of Steven Cvitanovic, Haight Brown & Bonesteel LLP and Omar Parra, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Parra may be contacted at oparra@hbblaw.com Read the court decision
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Texas covered versus uncovered allocation and “legally obligated to pay.”

April 27, 2011 — CDCoverage.com

In Markel American Ins. Co. v. Lennar Corp., No. 14-10-00008-CV (Tex. Ct. App. April 19, 2011), insured homebuilder Lennar filed suit against its insurer Markel seeking recovery of costs incurred by Lennar to repair water damage to homes resulting from defective EIFS siding. Following a jury trial, judgment was entered in favor of Lennar and against Markel. On appeal, the intermediate appellate court reversed. Applying Texas law, the court first held that Lennar failed to satisfy its burden of allocating damages between covered and uncovered. In a prior decision, the court had held that, while the costs incurred by Lennar for the repair of the resulting water damage



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Property Damage to Non-Defective Work Is Covered

February 18, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Hampshire Supreme Court found some of the property damage evolving from the insured's portion of the work was covered under its liability policy. Cogswell Farm Condo. Ass'n v. Tower Group, Inc., 2015 N.H. LEXIS 3 (N.H. Jan. 13, 2015). Lemery Building Company, Inc. constructed and developed 24 residential condominium units. After units were sold, the Cogswell Farm Condominium Association sued Lemery, asserting that the "weather barrier" components of the units were defectively constructed and resulted in damage to the units due to water leaks. Cogswell then sued its insurer, Tower Group, Inc., seeking a declaratory judgment that its claims against Lemery were covered. The trial court eventually determined that exclusions J (1) and J (6) both applied to exclude coverage. Exclusion J (1) excluded coverage for "property damage" to property that Lemery "owns, rents, or occupies." Exclusion J (6) excluded coverage for property damage to "[t] hat particular part of any property that must be restored, repaired or replaced because [Lemery's] work was incorrectly performed on it." 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

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Once Again: Contract Terms Matter

May 11, 2020 — Christopher G. Hill - Construction Law Musings
I know, you’ve heard this over and over again here at Construction Law Musings: courts in Virginia will interpret a contract strictly and in a manner that gives meaning to its unambiguous terms. A recent case out of the Eastern District of Virginia federal court, White Oak Power Constructors v. Mitsubishi Hitachi Power Systems, reinforces this point. The basic facts of the case relevant to this discussion and the Court’s opinion are these. Old Dominion Electric Cooperative (ODEC) hired White Oak Power Constructors (White Oak) to build a natural gas power plant. The contract between ODEC and White Oak provided for liquidated damages for delay and also contained a risk of loss provision making ODEC responsible for certain losses or damages due to property damage at the plant. I highly recommend that you read the facts of the case in full to get the details of the terms of these clauses. Needless to say (or this case wouldn’t be the subject of a construction law blog), the project ran past completion date and liquidated damages were assessed to the tune of more than $50,000,000.00. The delay was alleged to have been caused in substantial part by property damage due to weather, fire, and ice among other causes. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Defense Victory in Breach of Fiduciary Action

February 26, 2015 — Beverley BevenFlorez-CDJ STAFF
Earlier this month, Scott Calkins and Anthony Gaeta of Collinsworth, Specht, Calkins & Giampaoli, LLP obtained a defense verdict in a breach of fiduciary duty action involving a high-rise condominium in downtown San Diego, California. The Association asked for excess of over $3 million, however, the jury returned with a 10-2 defense verdict in favor of K. Hovnanian. Cortez Blu Community Association, Inc. v. K. Hovnanian at Cortez Hill, LLC, et al. initially involved construction defect claims against the developer, K. Hovnanian, and the general contractor, Turner Construction, as well as a claim of breach of fiduciary duty. However, the construction defect claims settled prior to trial leaving only the breach of fiduciary claim. “While it is now becoming ever more common for attorneys representing homeowners associations to allege a breach of fiduciary duty by the developer, there has been little actual litigation of the issues surrounding those claims which test the viability of the allegations or the defenses to them,” defense attorney Anthony Gaeta stated. “A breach of a fiduciary duty by a developer, which is demonstrated to damage the viability of an HOA either to perform regularly scheduled maintenance, or replace building components from its reserves, has the potential in economic terms to surpass the damages from purported construction defects. The Plaintiff argued that K. Hovnanian breached its fiduciary duty to the Association by failing to set adequate reserves within the initial Department of Real Estate budget (“DRE”) for painting, caulking, and power washing the exterior of the building, referencing Raven’s Cove Townhomes, Inc. v. Knuppe Development Co., Inc. (1981) 114 Cal. App. 3d 783. In response, K. Hovnanian stated that in part, the initial reserves as set forth in the DRE budget were adequate, good faith estimates and, therefore, there was no liability for breach of fiduciary duty. “Our case was exclusively concerned with the duties of the developer when forming the initial HOA, preliminary budgets, and reserves,” Gaeta said. “We litigated the duties and responsibilities of the initial board and whether a developer may rely on reports prepared by third-parties during the formation of a common interest development. The jury found our client’s actions and reliance on third-parties was reasonable and, thus, no breach of fiduciary duty occurred.” Collinsworth, Specht, Calkins & Giampaoli is a general civil litigation firm representing clients throughout California and Arizona. You may learn more about the firm at www.cslawoffices.com Read the court decision
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Best Practices in Construction– What are Yours?

November 26, 2014 — Craig Martin – Construction Contractor Advisor
The latest Engineering News Record had an interesting article on Best Practices in Construction written by Deron Cowan of Zurich Services Corporation. In the articles, Mr. Cowan emphasizes the importance of best practices and the methodology to develop them. As Mr. Cowan notes, best practices are intended to eliminate, reduce and manage risks and all construction companies should be fully engaged in correctly executing and accomplishing risk analysis to meet the demands of their practices. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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