FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Lack of Workers Holding Back Building

May 10, 2013 — CDJ STAFF
Builders are hiring again, or at least they’re trying to. According to an article in the Los Angeles Times, many of the workers who were laid off during the construction bust have gone on to work in other areas. John Nunan of Unger Construction told the Times that “we’re starting to see spot shortages of labor.” One problem is that despite the boom, wages haven’t risen. Rising costs for materials and land have put an additional squeeze on builders. One building supervisor noted that during the boom, he was making $26 an hour and entry level workers $17. Now he earns $16 an hour. From bust to recovery was about five years, and its labor pool could not just wait those years. Industry representatives told the Times that it has created a perception that construction is not a stable form of employment. Brian Turmail of the Associated General Contractors of America cited “pretty consistent news coverage about the fact that there are no jobs in construction.” Read the court decision
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Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

September 10, 2018 — Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog
In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion. The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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Courts Favor Arbitration in Two Recent Construction Dispute Cases

November 21, 2018 — Jason Plaza - The Subrogation Strategist
Recent court decisions have signaled the courts’ proclivity to prefer arbitration over full-fledged litigation when provisions in construction contracts are called into question. While the courts recognize a party’s constitutional right to a jury trial, the courts also lean strongly towards resolving disputes via arbitration as a matter of public policy, especially if a construction contract carves out arbitration as an alternative to litigation. In Avr Davis Raleigh v. Triangle Constr. Co., 818 S.E.2d 184 (N.C. App. 2018), the North Carolina Appeals Court reviewed the issue of whether the contracting parties selected binding arbitration as an alternative to litigation. The contract at issue was an AIA A201-2007 form document. Under the terms of the contract, the parties elected to arbitrate claims under $500,000 but to litigate claims over this amount. However, if there were several claims under $500,000 but the aggregate of all claims exceeded $500,000, then the contract implied that all claims would be arbitrated. Since the claims involved were an amalgamation of the two, the contracting parties disagreed about whether the arbitration provision would apply. The plaintiff interpreted this provision to mean litigation was mandatory when at least one claim exceeded $500,000 and that arbitration was mandatory when no single claim exceeded this amount. In contrast, the defendant interpreted this provision as meaning that when there were several claims worth less than $500,000 individually, but more than $500,000 aggregately, then all claims must be arbitrated. The trial court agreed with the plaintiff’s interpretation. Read the court decision
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Reprinted courtesy of Jason Plaza, White & Williams LLP

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The Condo Conundrum: 10 Reasons Why There's a 'For Sale' Shortage in Seattle

December 20, 2017 — Dave Suggs - CDJ STAFF
Seattle Washington is experiencing a shortage of in-city condos. Of the 27,000 units of new housing being built in downtown Seattle, 94 percent will be rentals. As housing prices are rising in the US’s fastest-growing large city, the median home price is $660,000. Dean Jones of the Seattle Magazine reports on why consumers consider condos, but home developers don’t in his article “The Condo Conundrum: 10 Reasons Why There's a 'For Sale' Shortage in Seattle.” Reason 1, condominiums don’t always offer high returns and can be riskier for the home developer. Reason 2, the Washington State Condo Act “overprotects” buyers of condos with over-the-top warranties that makes everyone in the industry afraid to work with condos. Reason 3, the cost of condo building is increased because of the risk of defect litigation. Reason 4, condo presale buyers are not required to deposit a percentage to invest in a new development and before closing could decide to walk away. Reason 5, there is a lot of interest in apartment buildings from investment groups. Reason 6, investors whose goal is to own “trophy” assets in rising markets can’t wait the years it takes developers to plan and construct a new multistory community. Reason 7, since rent prices have risen 50 percent on average in the last 7 years, it’s profitable to be a landlord. Reason 8, the millennials who live and work in this tech oriented region prefer to rent because of living through the rise and fall of the housing market. Reason 9, the costs is rising each year to deliver new projects. Reason 10, high-rise zoning was adopted 2 years before the recession, so just as condo development was gearing up, apartment building took over. Read the court decision
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Fatal Boston Garage Demolition Leaves Long Road to Recovery

April 04, 2022 — Scott Van Voorhis - Engineering News-Record
Massachusetts' officials are bracing for a lengthy recovery process following the March 26 fatal collapse during demolition of a section of a hulking Brutalist-era parking garage in Boston. JDC Demolition was razing the Government Center structure to make way for a 410,000-sq-ft life-sciences complex, when a multistory portion near the top failed, killing 51-year-old operating engineer Peter Monsini. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Inability to Confirm Coverage Supports Setting Aside Insured’s Default Judgment on Grounds of Extrinsic Mistake

January 21, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Mechling v. Asbestos Defendants (No. A150132, filed 12/11/18), a California appeals court affirmed the trial court’s grant of an insurer’s motion to set aside default judgments entered against its defunct insured pursuant to the trial court’s inherent, equitable power to set aside defaults on the ground of extrinsic mistake, thereby allowing the insurer to intervene and defend its own interests in the case. In Mechling, Fireman’s Fund insured Associated Insulation of California, which was named as a defendant in asbestos litigation filed in 2009. Associated had ceased operating in 1974, but was somehow successfully served with the complaint and defaulted, leading to default judgments of several million dollars. Notice of the judgments was served on Associated but not Fireman’s Fund. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Common Law Indemnity Claim Affirmed on Justifiable Beliefs

June 30, 2016 — Rick Erickson – Snell & Wilmer Real Estate Litigation Blog
Yesterday, the Arizona Court of Appeals issued an interesting opinion in Hatch Development v. Solomon. Hatch illustrated two key points in real estate and construction litigation: (1) a contractor’s indemnity does not always require an expressly written obligation; and (2) when facts are undisputed that a contractor is solely at fault for a construction defect, a property owner can be indemnified after paying a neighboring property owner for damages caused by the contractor’s defective work. Read the court decision
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Reprinted courtesy of Rick Erickson, Snell & Wilmer
Mr. Erickson may be contacted at rerickson@swlaw.com

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Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii

January 06, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The federal district court ultimately stayed a construction defect case, but offered comments on the current status of coverage disputes for such defects in Hawaii. See National Union Fire Ins. Co. of Pittsburgh, Pa. v. Simpson Mfg. Co., 2011 U.S. Dist. LEXIS 128481(D. Haw. Nov. 7, 2011).

National Union filed a complaint for declaratory relief to establish it had no duty to defend or to indemnify Simpson Manufacturing Company in four actions pending in the Hawaii state courts. The state court actions concerned allegedly defective hurricane strap tie hold downs that were manufactured and sold by Simpson. The hurricane ties allegedly began to prematurely corrode and rust, causing cracking, spalling and other damage to homes.

National Union contended the underlying allegations did not constitute "property damage" caused by an "occurrence," as defined in the policies.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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