Fairfield Connecticut Building Expert Directory

Panel Declares Colorado Construction Defect Laws Reason for Lack of Multifamily Developments

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Dennis Huspeni writing for the Denver Business Journal provided reactions from panelists at a ULI Colorado event on January 9th at the Embassy Suites Denver – Downtown/Convention Center hotel regarding a report on “Emerging Trends in Real Estate.” According to Huspeni’s article, panelists discussed “the lack of for-sale multifamily development and attributed it to Colorado’s construction defect laws.” John Beeble, chairman and CEO of Saunders Construction, one of the panelists, said that Saunders does not build condos because of Denver’s construction defect laws: “We’ve been in business for 42 years and never been sued for construction defects,” Beeble said, according to the Denver Business Journal. “But the odds are close to 100 percent that we’d be in court defending ourselves if we did condos.” Jeff Hawks, principal at ARA Colorado, claimed, “Colorado has some of the worst construction defect laws in the country. It’s stupid to try and build a condo development until that changes,” as reported by the Denver Business Journal. Read the court decision
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Damage Control: Major Rebuilds After Major Weather Events

October 21, 2024 — David McMillin - Construction Executive
More than two feet of rain drenching Fort Lauderdale in a day, baseball-sized hail chunks falling on Minneapolis and the deadliest wildfire in more than a century destroying more than 2,100 acres of Maui—2023 was a stark reminder that Mother Nature is a force to be reckoned with. In total, $28 billion dollars’ worth of extreme weather and climate-related disasters ripped across the U.S. last year—a new record, according to the National Oceanic and Atmospheric Administration. And there’s no relief in sight: 2024 is already the second-busiest tornado season on the books, and wildfires were burning in Oregon, California, Montana and Texas as this issue went to print. Part of dealing with disasters is preparing for their impact to infrastructure, and Roland Orgeron Jr.—who co-founded New Orleans-based Legacy Industries with business partner Blake Couch in 2016—has been helping clients do just that. “We do a lot of consulting to identify vulnerabilities, and we offer action plans for companies based on potential storm scenarios,” Orgeron Jr. says. Some of those clients include large oil and gas companies with operations along the Mississippi River that cannot afford to be shut down for any extended period. “Before Hurricane Ida hit, we pre-positioned equipment inside some facilities, and we had guys responding the day after the storm to clear the area and assess the damage,” Orgeron Jr. says. During the immediate response to Hurricane Ida in 2021, the company’s work involved more than keeping the business locations up and running; they needed to help a business’ employees find a place to live. “We have a home stabilization contract with one oil and gas company designed to make sure their employees can get back to work as comfortably and quickly as possible,” Orgeron Jr. says. Reprinted courtesy of David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Blindly Relying on Public Adjuster or Loss Consultant’s False Estimate Can Play Out Badly

May 03, 2021 — David Adelstein - Florida Construction Legal Updates
Insurance policies, particularly property insurance policies, have a concealment or fraud provision that, in essence, gives the insurer an out if the insured submits a fraudulent claim, a false claim, or conceals material facts. Unlike a traditional fraud claim where a party needs to prove intent, the provision is broad enough that it does not require any intent behind making a false statement. See Mezadieu v. Safepoint Ins. Co., 46 Fla.L.Weekly D691c (Fla. 4th DCA 2021). For this reason, and as exemplified below, do NOT blindly rely on a public adjuster or loss consultant’s estimate that contains false statements because those false statements, particularly if you know they are false, can play out badly for you! Review the estimate and ask questions about it to make sure you understand what is being included in the loss or damages estimate. In Mezadieu, a homeowner submitted a claim to her property insurance carrier due to a second-floor water leak emanating from her bathroom. She submitted an estimate from her public adjuster that included damages for her kitchen cabinets directly below the second-floor bathroom, as well as other items on her first-floor. Her carrier denied coverage based on the exclusion that the policy excludes damage caused by “[c]onstant or repeated seepage of water or steam…which occurs over a period of time.” 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

Coverage Doomed for Failing Obtain Insurer's Consent for Settlement

January 22, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Fourth Circuit affirmed the district court's determination that there was no duty to indemnify after the insured settled without consent of the insurer. Perini/Tompkins Joint Venture v. ACE American Ins. Co., 2013 U.S. App. LEXIS 24865 (4th Cir. Dec. 16, 2013). The insured, a joint venture, was hired as manager for the construction of a $900 million hotel and convention center. OCIP and excess policies were obtained through ACE. The project was also insured by a Builders Risk Policy through Factory Mutual Insurance Company. During construction, a rod eroded, causing the atrium to collapse. Substantial property damage occurred and the completion of the project was delayed for several months. 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

Georgia Court Rules that Separate Settlements Are Not the End of the Matter

October 14, 2013 — CDJ STAFF
The Georgia Court of Appeals recently took up the question of how parties in a construction defect settlement relate to one another in terms of apportioning the settlement. Scott Murphy, writing on the Barnes & Thornburg blog clarifies the issues. The underlying construction defect case involved a newly-constructed hotel with mold and mildew problems. The owners sued the contractor (for negligent construction) and the architect (for negligent design). Separately, the owners settled with the contractor for $2.3 million and the architect for $100,000. Subsequently, the contractor sued the architect, attempting to recover part of the settlement the contractors had made with the owners. At trial, the architect prevailed, obtaining a summary judgment that under Georgia law, “joint-tortfeasors can no longer assert contribution or non-contractual indemnity claims.” This was reversed by the Court of Appeals, determining that the two were not joint tortfeasors. Mr. Murphy notes that “the court rejected the parties’ attempt to disavow joint and several liability in their respective settlement agreements.” The court ruled that the contractor could proceed with their claims against the argument. Read the court decision
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A Glimpse Into Post-Judgment Collections and Perhaps the Near Future?

July 13, 2020 — Garret Murai - California Construction Law Blog
According to a recent study conducted by the Harvard University, the University of Chicago, and the University of Illinois, more than 100,000 small businesses (firms with fewer than 500 employees) representing 2% of small businesses in the America have closed their doors permanently due to the coronavirus. The next case, although about events occurring before COVID-19, provides a glimpse of what litigation may look like in the intervening months and years as companies struggle to keep their doors open. The Wanke Case Waterproofing company Wanke, Industrial, Commercial, Residential, Inc. sued a former employee, Scott Keck, and his competing company, WP Solutions, Inc., for trade secret misappropriation and obtained a judgment for $1,190,929. At the time, general contractor AV Builder Corp. had hired WP Solutions as a waterproofing subcontractor on fire residential and commercial projects. In the face of the judgment obtained by Wanke, Keck declared bankruptcy and dissolved WP Solutions. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

2016 California Construction Law Upate

December 10, 2015 — Garret Murai – California Construction Law Blog
The California State Legislature saw the introduction of 2,297 bills during the first half of the 2015-2016 legislative session of which 1,010 bills were signed into law. For contractors, the bill (now law), having the most immediate effect is SB 467, which increases the license bond amount required of all contractors from $12,500 to $15,000. In addition to licensing changes, 2015 saw the enactment of a number of bills providing for alternative project delivery methods from design-build, to CM at risk, to public-private partnerships, and even the expanded use of enhanced infrastructure financing districts as the state enters its fourth year since the abolishment of redevelopment agencies. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Eighth Circuit Rejects Retroactive Application of Construction Defect Legislation

September 17, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Eighth Circuit refused to retroactively apply an Arkansas statute establishing coverage for faulty workmanship. J-McDaniel Const. Co., Inc. v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 14911 (8th Cir. Aug. 4, 2014). The homeowners sued J-McDaniel for faulty workmanship in constructing their home. The defective construction work was performed by subcontractors. Mid-Continent refused to defend or indemnify J-McDaniel. The insured sued Mid-Continent. The district court dismissed the claim pursuant to Essex Ins. Co. v. Holder, 261 S.W. 3d 456, 460 (Ark. 2008). In Essex, the Arkansas Supreme Court held that defective workmanship resulting in damages only to the work product itself was not an occurrence. Although The Arkansas legislature overruled Essex by statute, the district court found that the Arkansas case law barred retroactive application of the statute. 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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