FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Foundation Arbitration Doesn’t Preclude Suing Over Cracks

March 28, 2012 — CDJ STAFF

The Louisiana Court of Appeals has reversed the decision of a lower court, allowing a construction defect case to go through. In Greer v. Town Construction Company, the Greers hired Town Construction to build a home in Baton Rouge. The business relationship went sour, with disputes over “costs, change orders, workmanship, and timeliness issues.”



Town Construction filed an arbitration claim for the unpaid contract balance. In the counterclaim, the Greers made claims of mold and mildew problems, and wall cracks that they attributed to a “structural defect in the foundation.” In arbitration, Town Construction was awarded the full contract balance plus extra costs and interest, while the Greers were awarded for their structural claims.



Three years later, the Greers found additional cracks and filed a suit against Town Construction. Town Construction argued that the Greer’s lawsuit should be dismissed, as the claims had already been through the arbitration process. The district court agreed with Town Construction and dismissed the suit.



The appeals court noted that the Greers would have no ground for a suit if the arbitration was a “valid and final judgment,” and went on to note that there was no evidence in the trial record that the arbitration met this qualification. The court noted that although it was clear that both parties had agreed to the decisions of the arbiter, under Louisiana law, arbitration is not final until it has been “rendered by a court with jurisdiction over subject mater and over parties.”



The court remanded the case to the lower court, noting that “the district court is obligated to first determine whether a valid arbitration award is in existence and had been confirmed before considering the merits of the exception. The court noted that their decision “should not be read to express any opinion as to the merits of the claims or as to the propriety of damages sought in the Greer’s lawsuit.”

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Unfinished Building Projects Litter Miami

November 18, 2011 — CDJ STAFF

Buildings born in ambitious development plans that were never brought to completion form a grim reminder of the building bust in Miami, according to an article in the Miami Herald. One project started in 2007 as a residential project, later there were hopes to develop it as a hotel. These plans are ten months old with no work done.

Another project was projected as a 30-story office and commercial tower. Four were built before the project was abandoned. The article describes the site as “squalid.” Another project completed the planned 17 stories, but no work has been done beyond constructing the shell. Once planned as luxury condos, the owner owes more than $30,000 in property taxes.

Each of the three sites profiled in the Miami Herald have become dumping grounds for trash. The building skeletons have also become damaged by the elements. Some abandoned projects have been taken over by homeless people. Businesses near the abandoned properties have been hurt. The buildings also represent failed obligations to subcontractors who have put liens on the properties for work they performed but were never paid for.

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Renters ‘Sold Out’ by NYC Pensions Press Mayor on Housing

May 19, 2014 — Martin Z. Braun – Bloomberg
Elevators break down, ceilings leak and security is lax at the Metro North apartments overlooking the East River in Harlem, says retired rehabilitation technician Bob Montesi, who’s lived there for more than three decades. Even as deterioration accelerates at the 761-unit complex, which used to be in a state affordable-housing program, some tenants are facing rent increases of as much as 80 percent. For Montesi, 74, who worked at a New York City-run hospital for 41 years, the changes are especially galling. One of the owners of the building is his pension fund. Read the court decision
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Reprinted courtesy of Martin Z. Braun, Bloomberg
Mr. Braun may be contacted at mbraun6@bloomberg.net

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Appellate Attorney’s Fees and the Significant Issues Test

June 29, 2017 — David Adelstein - Florida Construction Legal Updates
The significant issues test to determine the prevailing party in construction lien actions (which, by the way, also applies to breach of contract actions) applies to appellate attorney’s fees too! Under this test, the trial court has discretion to determine which party prevailed on the significant issues of the case for purposes of attorney’s fees. The trial court also has discretion to determine that neither party was the prevailing party for purposes of attorney’s fees. In a recent decision, Bauer v. Ready Windows Sales & Service Corp., 42 Fla. L. Weekly D1417a (Fla. 3d DCA 2017), there were competing motions for appellate attorney’s fees. Both parties believed they should be deemed the prevailing party under Florida Statute s. 713.29 (statute that authorizes prevailing party attorney’s fees under Florida’s Construction Lien Law). The appellate court held that neither party was the prevailing party under the significant issues test: “[W]e conclude that each party lost on their appeal, while each party successfully defended that part of the judgment in their favor on the other party’s cross-appeal. Because both parties prevailed on significant issues, this Court finds that appellate fees are not warranted for either party.” Bauer, supra. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

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Strategic Communication Considerations for Contractors Regarding COVID-19

April 06, 2020 — Sarah Skidmore - Construction Executive
The COVID-19 is a worldwide wildcard. Around the globe, organizations are forced to communicate with a wide variety of audiences. Audiences range from employees to customers and vendors—and more. A pandemic of this nature is new for the modern globalized workforce. Societies realize the breadth of international influence involved in a single supply chain now more than ever before. Domestically based organizations realize their place in the larger global system—and the construction industry is a perfect example. Here are key questions for leaders to ponder. 1. Who are your audience groups? In a wildcard situation, organizations are often tasked with communicating to many different audience groups and stakeholders. So, take some time to think beyond the groups that come top-of-mind such as customers, vendors, partners and owners.

• Does the organization have any community-based events on the calendar?
• Does the organization have professional development sessions on the calendar?
• Does the organization have planned maintenance or facilities work scheduled with third parties?
• Does the organization have interns or apprenticeship programs with local colleges?

Reprinted courtesy of Sarah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Skidmore may be contacted at sarah@skidmore-consulting.com

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Consequential Damage Claims for Insurer's Bad Faith Dismissed

April 22, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Partial dismissal of the insured's complaint seeking consequential damages for the insurer's bad faith was granted by the court. Bryant v. General Cas. Co., 2019 U.S. Dist. LEXIS 15369 (N.D. N.Y. Jan. 30, 2019). Bryant purchased from General Casualty Company of Wisconsin (GCCW) a commercial property and casualty policy to cover the insured premises. While the building was rented to a tenant who operated a restaurant, it sustained a collapse. GCCW refused to cover the loss. Bryant sued. In addition to the cost of repairing and replacing the damage to the property, Bryant alleged he was out the value of rental revenue from his tenant, which was forced to close the restaurant and relocated as a result of the unrepaired damage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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One World Trade Center Due to Be America’s Tallest and World’s Priciest

February 10, 2012 — CDJ STAFF

As One World Trade Center rises, so does the price tag. After construction delays and cost overruns, the cost of the building at the site of the September 11 attacks has risen to $3.8 billion. Part of the expense of the skyscraper is the heavily reinforced base of the building. The elevator shafts are also heavily reinforced, all part of guarding against future terrorist attacks.



In comparison, the world’s tallest tower, the Burj Khalifa in Dubai, cost only $1.5 billion, less than half the cost of One World Trade Center. As a result, the Port Authority does not see the building as being profitable in near future. In order to fund it, the agency is raising tolls on bridge and tunnel traffic.



Currently, about the half the unfinished building is leased. Construction is expected to conclude in 2013.

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Is It Time to Get Rid of Retainage?

June 15, 2020 — David K. Taylor - Construction Executive
Many debate the pros, cons and claims of retainage—when one party to a construction contract withholds a percentage (typically 5%-10%) from an otherwise approved contractor pay application, and which typically is not paid until a project is substantially complete. If an owner withholds retainage from a prime contractor, typically the contractor will in turn withhold retainage from its subcontractors. While retainage has been part of the construction industry for decades, its concept, use (and abuse) have been under more discussion during the past 10 years. Based on heavy lobbying from primary subcontractor groups, state legislatures have passed laws to regulate retainage in commercial projects. Lenders have become more careful about loans and are frequently involved in retainage discussions. Bonded projects are subject to criticism when a surety does not step in and, like the mythical insurance company, write a check. Reprinted courtesy of David K. Taylor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Taylor may be contacted at dtaylor@bradley.com

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