Fairfield Connecticut Building Expert Directory

Georgia Court Reaffirms Construction Defect Decision

August 27, 2013 — CDJ STAFF
In 2011, the Georgia Supreme Court ruled that construction defects could count as “occurrences” under a general liability policy. John Watkins, writing in Law360, notes that the ruling “has potentially broad implications for Georgia insureds.” He goes on to look at a later Georgia Supreme Court case, in which the court reaffirmed its decision in the 2011 Hathaway case. In the 2013 case, Taylor Morrison Services Inc. v. HDI-Gerlins Ins., the court held that the property damage had to happen to something other than the work performed by the insured, and that a breaches of warranty without fraud claims may be covered. But Watkins notes that this points to “the continuing efforts of insurers to deny coverage for construction defects under CGL policies.” This overruled some of the past decisions of the United States District Court for the Northern District of Georgia. Watkins noted that the Eleventh Circuit seemed to wonder about the scope of Hathaway, but with Taylor Morrison, “the Georgia Supreme Court provided a clearly stated response.” Looking at the implications, he gives an example in which if a window installer work causes a window to leak and the water intrusion damages a floor, the floor, but not the window would be covered. But he cautions, “the result may turn on the policy language and the particular facts.” In any case, he assures us that “coverage disputes regarding construction defects are sure to continue.” Read the court decision
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Sixth Circuit Rejects Claim for Reverse Bad Faith

June 17, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit rejected the insurer's claim for reverse bad faith against its insured who made a fraudulent claim after her home was destroyed by fire. State Auto Property and Cas. Ins. Co. v. Hargis, 2015 U.S. App. LEXIS 7475 (6th Cir. April 23, 2015). The insured's home burned to the ground early one morning. She filed what she would later admit was a fraudulent insurance claim with State Auto for approximately $866,000. State Auto paid in excess of $425,000 before filing an action to declare the policy void. State Farm's investigation eventually led to the insured's admission that she had a friend burn down her house to collect insurance proceeds. An indictment was issued and the insured pled guilty. She was sentenced to a 60-month term and was ordered to pay restitution to State Auto totaling $672,497. 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

Want to Make Your Jobsite Safer? Look to the Skies.

October 10, 2022 — Rory San Miguel - Construction Executive
New York Gov. Kathy Hochul is set to sign Carlos’ Law for worker protection. The law would set a national precedent for construction site safety, substantially raising the minimum fines for construction companies found liable for onsite injuries. Worksites are very complex, and many factors go into creating a safe space. Following suit, innovative operators are looking at advanced technologies to boost onsite safety, including drone data visualization, which involves flying a drone over a site to capture a highly accurate 3D model of current conditions in close to real time. Using drones can't solve every problem, but it can help not only protect workers but also encourage new ones to join your team. How drone surveying improves jobsite safety 3D mapping a worksite with a drone keeps workers out of harm’s way, helping surveyors avoid potentially dangerous areas filled with constantly moving heavy equipment and machinery. Drone mapping also means surveyors can stay out of the heat, avoiding the risk of excess sun exposure by sending the drone out in their stead to traverse the terrains and slopes of the site. Reprinted courtesy of Rory San Miguel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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DC District Court Follows Ninth Circuit’s Lead Dismissing NABA’s Border Wall Case

April 10, 2019 — Anthony B. Cavender - Gravel2Gavel
On February 14, the U.S. District Court for the District of Columbia dismissed the complaint of the National American Butterfly Association (NABA) alleging that the U.S. Government’s border wall preparation and law enforcement activities at NABA’s National Butterfly Center, located in South Texas along the Rio Grande River, violated federal environmental laws (National Environmental Policy Act (NEPA)) and the Endangered Species Act (ESA)) as well as NABA’s constitutional rights. The case is National American Butterfly Association v. Nielsen, et al. On January 25, 2017, the President issued an Executive Order to the Secretary of the Department of Homeland Security (Secretary) to “take all appropriate steps to immediately plan, design, and construct a physical wall along the southern border” with Mexico. A few weeks later, the Secretary issued a memorandum to the U.S. Customs and Border Enforcement to implement the Executive Order. The land occupied by the NABA has been affected by these actions, as well as other actions taken by the Secretary pursuant to her authority under the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA), located at 8 U.S.C. § 1103. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?

September 19, 2022 — William L. Porter - Porter Law Group
It is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes. California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Breach of a Construction Contract & An Equitable Remedy?

September 22, 2016 — David Adelstein – Florida Construction Legal Updates
In payment or collection-type lawsuits, the party suing for money sometimes asserts a claim for unjust enrichment or quantum meruit as an alternative equitable remedy to a breach of contract claim. Frankly, sometimes a party will do this as a means to throw everything against the wall hoping something, just something, sticks. However, if there is a contract by and between the parties, equitable claims such as unjust enrichment or quantum meruit will invariably fail. They will fail because a party cannot circumvent a contract simply because their recourse may prove better under an equitable theory. It doesn’t work like that! And, it should not! Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

BUILD Act Inching Closer To Reality

July 08, 2011 — Douglas Reiser, Builders Council Blog

A select group of Senators have launched a marketing campaign for the BUILD Act. If this is the first you are hearing about the BUILD Act, do not fret. The Act still has a long way to go, but if successful it would bring a national infrastructure bank.

I have been fascinated with the concept of a national infrastructure bank for quite some time. The idea has been around since the Clinton years ? and perhaps beyond. The Act’s purpose is to create a national bank (American Infrastructure Financing Authority) to provide loans and loan guarantees to encourage private investment in upgrading America’s infrastructure. For a number of years, we have seen similar legislation float around Congress. But, none of those initiatives have gained as much traction as BUILD.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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State And Local Bid Protests: Sunk Costs and the Meaning of a “Win”

July 11, 2022 — Amy Anderson - ConsensusDocs
Across the United States, state and local agencies often use competitive bidding to award contracts for various types of work. Generally speaking, a bid protest is when an unsuccessful bidder challenges the award by the state or local agency to another competitive bidder. Procurement at this level is entirely distinct from federal procurement. The details of any bid protest will be specific to the locality. However, a question that very often comes up when a state or local agency uses competitive bidding: what happens when I lose the bid? More specifically, if I should not have lost because my bid was the lowest or best value, can I make the state or local agency award the bid to me? Read the court decision
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Reprinted courtesy of Amy Anderson, Jones Walker LLP (ConsensusDocs)
Ms. Anderson may be contacted at aanderson@joneswalker.com

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