FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

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

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Houston’s High Housing Demand due to Employment Growth

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
According to a Metrostudy survey, as published in Builder, “The quarterly starts rate in Houston rose 16% to 7,977, and was up 3.5% when compared to the second quarter of 2013. The annual starts rate increased 1%, to 28,990 over the previous quarter, and up 10% from the second quarter of 2013.” “Houston’s housing market continues to outperform. We are seeing strong pricing appreciation and low levels of inventory of finished product and vacant developed lots,” Scott Davis, Regional Director for Metrostudy’s Houston Market, told Builder. “After five and half years of strong job growth, the real challenge for builders in Houston’s new housing market is finding affordable lots in desirable locations.” Read the court decision
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Firm Claims Construction Defects in Hawaiian Homes

December 04, 2013 — CDJ STAFF
The Los Angeles law firm Girardi Keese has filed a lawsuit representing 10,000 homeowners in Hawaii. The class action suit claims that construction defects have left the homes unable to withstand the island’s winds. Graham B. LippSmith, who represents the homeowners said that “we’re seeing some homes where the straps have cracked all the way through, so there’s nothing holding the frame to the foundation.” Mr. LippSmith said that the developer should have used anchor bolts instead of hurricane straps, but “that would have cost more money.” Mr. LippSmith says that his goal is to get the homes fixed. “It doesn’t do any good to give someone $50,000 and tell them go have their home fixed when what the community needs is to be made safe for the residents.” Read the court decision
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Precast Standards' Work Under Way as Brittle Fracture Warnings Aired

December 22, 2019 — Nadine M. Post - Engineering News-Record
The American Concrete Institute is gearing up to develop ACI’s first code requirements specifically for precast concrete. The recent announcement of the initiative comes on the heels of an article in the September issue of ACI’s monthly magazine, Concrete International, that sounds the alarm about the potential for brittle failures of precast, prestressed-concrete double-T parking decks, with flanges reinforced with a non-code-compliant polymer-coated carbon-fiber grid product, called C-Grid. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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After 60 Years, I-95 Is Complete

September 10, 2018 — Riley Griffin - Bloomberg
Across the U.S., public infrastructure is crumbling because of legislative gridlock and chronic underfunding. Roads are overcrowded, bridges are well past their expiration date, and transit systems regularly face unprecedented delays. But there will be one thing to celebrate as you seethe in beach traffic this weekend—a small, strange gap in I-95 is being filled. Come September, one of the most audacious public infrastructure projects in U.S. history will be completed after more than six decades of work. Interstate 95 was the crown jewel of the American highway system championed by President Dwight Eisenhower, and yet the plan for an artery stretching the length of the East Coast almost didn’t happen—because of local lawmakers and land-owners in Mercer County, New Jersey. Read the court decision
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Reprinted courtesy of Riley Griffin, Bloomberg

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Medical Center Builder Sues Contracting Agent, Citing Costly Delays

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The Pennsylvania firm Bedwell Co. “has sued the Camden County Improvement Authority, saying it is owed $4.6 million for construction of [the Cooper Medical School of Rowan University]” in Camden, New Jersey, according to the Courier-Post. The Bedwell Co. alleges that its expenses exceeded fifty million, “but that it has been paid only $46 million.” The lawsuit states, as quoted by the Courier-Post, “From its inception, the project was plagued by delays due to defects in the design document and other circumstances that were beyond Bedwell’s control.” Furthermore, there were “an abnormally large quantity of design changes, schedule disputes, schedule disruptions and work-activity interference.” “Representatives of the CCIA and HDR could not be reached for comment Wednesday,” according to the Courier-Post. “Bedwell declined to comment on the allegations in the suit.” Read the court decision
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Irene May Benefit Construction Industry

September 01, 2011 — CDJ STAFF

Noting that while it wasn’t the $15 billion disaster some predicted, Hurricane Irene still caused quite a bit of damage on its path up the Eastern Seaboard. Martha White, reporting for MSNBC cites Kinetc Analysis Corp. with an estimate of $7 billion in damage. Carl Van Horn, a professor of public policy at Rutgers University expected an initial decline in construction jobs, due to projects delayed due to the storm’s arrival, but he said, “a few weeks later, employment picks up as people rebuild.”

Kinetic says that one unknown is how much of the damage is insured. They expect only $3 billion of damage will be covered by insurance. This would likely put a drag on consumer spending, as homeowners would have to dig into their own pockets to pay for repairs, according to Karl Smith, associate professor of economics and government at the University of North Carolina at Chapel Hill.

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Real Estate & Construction News Roundup (2/21/24) – Fed Chair Predicts More Small Bank Closures, Shopping Center Vacancies Hit 15-year Low, and Proptech Sees Mixed Results

March 19, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, office occupancy rates hit all-time lows, global hotel investment to exceed numbers from 2023, federal courts look into real estate commissions, and more!

• Federal Reserve chair Jerome Powell is predicting that more small banks will likely close or merge due to commercial real estate weaknesses. (David Hollerith, Yahoo)
• An industry-shaking lawsuit making its way through the federal court system could upend the long-established way of paying commissions. (Jeff Ostrowski, Bankrate)
• A good retail space is getting harder to find with the vacancy rate for shopping centers nationwide at a 15-year low. (Emily Peck, Axios)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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