Fairfield Connecticut Building Expert Directory

Consider Manner In Which Loan Agreement (Promissory Note) Is Drafted

March 02, 2020 — David Adelstein - Florida Construction Legal Updates
Consider who you loan money too and, perhaps more importantly, the manner in which your loan agreements (promissory notes) are drafted. By way of example, in what appears to be a failed construction project in Conrad FLB Management, LLC v. Diamond Blue International, Inc., 44 Fla. L. Weekly D2897a (Fla. 3d DCA 2019), a group of lenders lent money to a limited liability company (“Company”) in connection with the development of a project. Promissory notes were executed by Company and executed by its managing member as a representative of Company, and not in a personal capacity. Company, however, did not own the project. Rather, an affiliated entity owned the project (“Affiliated Entity”). Affiliated Entity had the same managing member as Company. Once the Company received the loan proceeds, it transferred the money to Affiliated Entity, presumably for purposes of the project. The loans were not repaid and the lenders sued Company, Affiliated Entity, and its managing member, in a personal capacity. The lenders claimed they were all jointly liable under the promissory notes. Although the trial court granted summary judgment in favor of the lenders, this was reversed on appeal as to the Affiliated Entity and the managing member because there was a factual issue as to whether they should be bound by the note executed on behalf of Company. First, Florida Statute s. 673.4011(1) provides that “a person is not liable on a promissory note unless either (a) the person signed the note, or (b) the person is represented by an agent who signed the note.” Conrad FLB Management, LLC, supra. Affiliated Entity is a separate entity and did not execute the note. 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

The Argument for Solar Power

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
Jennifer Goodman in Big Builder provides eight reasons why buyers should opt for solar power. First on her list is “Codes.” Goodman pointed out that beginning in 2020, “California’s Title 24 will require all new residential construction to be net-zero energy, which means that they will need renewable energy systems in order to generate as much power as they consume.” Other reasons include incentives, aesthetics, appraisal/lending standards, payback, legislation, cost, and finally, “clean, quiet, and abundant power.” Goodman stated that the “technology generates no noise or off gassing and because solar power is generated from sunlight--not heat--even residents in the northern U.S. are able to take advantage of it.” Read the court decision
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Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition

April 19, 2022 — David Chidlaw & Carina Novell - Sheppard Mullin Construction & Infrastructure Law Blog
On March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”[1] Brief History Lesson The Davis-Bacon Act was enacted in 1931 and requires the payment of locally prevailing wages and fringe benefits on federal construction contracts. The law applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration, or repair of public buildings or public works.[2] From the 1930s to the early 1980s, the DOL used the following three-step process to define prevailing wage:

Any wage rate paid to a majority of workers.
If there was no wage rate paid to a majority of workers, then the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers (i.e., the “30 percent rule”).
If the 30 percent rule was not met, the weighted average rate.

Reprinted courtesy of David Chidlaw, Sheppard Mullin and Carina Novell, Sheppard Mullin Mr. Chidlaw may be contacted at dchidlaw@sheppardmullin.com Ms. Novell may be contacted at cnovell@sheppardmullin.com Read the court decision
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Canada to Ban Foreigners From Buying Homes as Prices Soar

April 25, 2022 — Brian Platt & Ari Altstedter - Bloomberg
Canada will ban most foreigners from buying homes for two years and provide billions of dollars to spur construction activity in an attempt to cool off a surging real-estate market. The measures will be contained in Finance Minister Chrystia Freeland’s budget on Thursday, according to a person familiar with the matter, asking not to be named because the matter is private. The move signals that Prime Minister Justin Trudeau is becoming more assertive about taming one of the developed world’s most expensive housing markets -- and that the government is growing more concerned about the political backlash to inflation and the rising cost of housing. Reprinted courtesy of Brian Platt, Bloomberg and Ari Altstedter, Bloomberg Read the court decision
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How to Build a Coronavirus Hospital in Ten Days

April 20, 2020 — Elaine Lee - Gravel2Gavel Construction & Real Estate Law Blog
If the coronavirus pandemic continues to spread in the United States as it has in other countries, drastic expansions of hospital and quarantine facility capacity are likely to be necessary. In the hard-hit Seattle area, several temporary facilities are already under construction, including a 200-bed temporary quarantine and isolation center built on a soccer field. China’s response to the initial outbreak in the city of Wuhan demonstrates how rapidly authorities can add capacity in an emergency. As thousands of citizens became ill with COVID-19, China built two hospitals in Wuhan over the span of just days. Time-lapse videos such as this one show how remarkably quickly the hospitals were built. Construction on the Huoshenshan Hospital (shown in the prior linked video) began on January 23 and finished eight days later. A second hospital, Leishenshan Hospital, began construction on January 25 and finished 12 days later. Square footage information on both hospitals has been inconsistently reported, but Huoshenshan Hospital has a capacity for 1,000 beds, while Leishenshan Hospital has a capacity for 1,600 beds. Read the court decision
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Reprinted courtesy of Elaine Lee, Pillsbury
Ms. Lee may be contacted at elaine.lee@pillsburylaw.com

Homeowner Sues Brick Manufacturer for Spalling Bricks

October 22, 2013 — CDJ STAFF
A Columbia, South Carolina homeowner has sued Kinney Brick Co., alleging that the bricks used in his home were defective and are now crumbling. The lawsuit alleges that the manufacturer and the distributor were both aware that the bricks would retain moisture and crumble. Read the court decision
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Construction Litigation Roundup: “Too Soon?”

July 02, 2024 — Daniel Lund III - Lexology
Not at all, said the Louisiana Supreme Court, in a case dealing with the timing of filing of a claim for indemnity. In the case, a Louisiana intermediate appellate court had earlier ruled in very short order on a supervisory writ application (reversing the trial court) that a claim for indemnity (based upon an indemnity clause in a construction contract) was “premature” until a “determination that damages are actually owed and the indemnitee sustains a loss. … At this time, the lawsuit is still pending against [the putative indemnitee], and no determination of liability had been made; thus, there is no obligation for indemnity and defense costs. … Stated differently, indemnity (or reimbursement) is not available at this time because [the indemnitee] has not discharged a liability which [the indemnitor] should have assumed or otherwise suffered any loss or damages. … Accordingly, [the] cause of action for indemnity and defense is not ripe for adjudication.” Bennett v. Demco Energy Servs., LLC, 2023-0581 (La. App. 1 Cir. 09/11/23); 2023 La. App. LEXIS 1449. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Should I Pull the Pin? Contractor and Subcontractor Termination for Cause

January 26, 2017 — Patrick McNamara - Porter Law Group
Any owner or general contractor who has a few projects under his or her belt has likely had this thought: “My contractor (or subcontractor) is not performing the way I expected; should I replace him?” The other side of the termination coin is: “This project is not going the way I expected; should I get out?” While there may be an emotional high that immediately comes from terminating a contractor or subcontractor (or leaving a project, in mid-stream), there are many factors to be weighed, before making that decision. Project Delay. Replacing a contractor or subcontractor that has already begun performance always results in delays to the project. Assessing the work in place, interviewing replacement contractors, and negotiating the terms of the new relationship can easily consume weeks, if not months of project time. Read the court decision
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Reprinted courtesy of Patrick McNamara, Porter Law Group
Mr. McNamara may be contacted at pmcnamara@porterlaw.com

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