Fairfield Connecticut Building Expert Directory

Supreme Court Holds Arbitrator can Fully Decide Threshold Arbitrability Issue

March 18, 2019 — David Adelstein - Florida Construction Legal Updates
The United States Supreme Court recently decided parties to a contract can agree, under the Federal Arbitration Act, an arbitrator, rather than a court, can fully resolve the initial arbitrability question. Henry Schein, Inc. v. Archer and White Sales, Inc., 2019 WL 122164 (2019). The arbitrability question is whether the dispute itself is subject to arbitration under an arbitration provision. Parties that do not want to arbitrate try to circumvent this process by filing a lawsuit and asking the court to determine the threshold arbitrability question. In Henry Schein, Inc., the contract at-issue provided: This Agreement shall be governed by the laws of the State of North Carolina. Any dispute arising under or related to this Agreement (except for actions seeking injunctive relief and disputes related to trademarks, trade secrets, or other intellectual property) shall be resolved by binding arbitration in accordance with the arbitration rules of the American Arbitration Association. The place of arbitration shall be in Charlotte, North Carolina. The plaintiff in this case asserted a claim for injunctive relief (among other claims) and argued that, therefore, the dispute is not subject to arbitration based on the exception in the provision. The initial, threshold issue became whether the dispute was subject to arbitration and, importantly, who decides this issue. The Court further looked at whether a trial court can resolve this issue under the “wholly groundless” exception, i.e.,the court can decide the issue if the argument for arbitration is wholly groundless. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Former Sponsor of the Lenox Facing Suit in Supreme Court

January 13, 2014 — Melissa Zaya-CDJ STAFF
Lewis Futterman, former sponsor of the Lenox condominium in Harlem, New York, is being sued by the condo board for alleged “building code violations, construction defects, and fraud” according to New York Curbed. The residents claim that Futterman filed for bankruptcy in 2010 to avoid paying for repairs. The Lenox condo board filed suit in the New York Supreme Court last December 31st. The Lenox’s condo board claims that the building has “fundamental structural flaws, a defective roof and pervasive leakage,” reports Rowley Amato of New York Curbed. The board also claims the original offering plans were not the same as the units purchased by residents in 2006. Residents paid an estimated two hundred and sixty thousand to repair defects within the condominium, and they are pursuing a minimum of four million in damages. Katherine Clarke of The Real Deal stated that Futterman would only “say that the issue was between the residents and the construction company which built the project.” Read the full story at New York Curbed... Read the full story at The Real Deal... Read the court decision
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The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations

November 21, 2017 — Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLP
Originally published by CDJ on June 15, 2017 Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018. THE NEW LAW – SB 496 SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof. However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists). Reprinted courtesy of Mark Himmelstein, Newmeyer & Dillion LLP and Jenny Guzman, Newmeyer & Dillion LLP Mr. Price may be contacted at mark.himmelstein@ndlf.com Ms. Zucker may be contacted at jenny.guzman@ndlf.com Read the court decision
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Mandatory Energy Benchmarking is On Its Way

April 22, 2019 — Christopher G. Hill - Construction Law Musings
We have discussed the issue of benchmarking and energy reporting on several occasions here at Musings. As the January 18, 2010 issue of ENR Magazine discusses, now cities and states are getting on board in a big way. Washington, D.C. began requiring building owners to use the EPA Energy Star Portfolio Manager tool on January 1, 2010 and New York City passed a similar measure in December. The D.C. law is the first to require mandatory public disclosure of energy performance. Such disclosure will create a public database of energy performance data. While I understand that this data and its reporting will create energy accountability in a way that non-disclosure of this data would not, the possibilities for misuse or uses that impact the construction world abound. This energy reporting is a step beyond that of the LEED program in that the data is not just reported to the USGBC, but to a public database. As such, the ease of access will impact contracts and contractors in an even bigger way than the USGBC requirements. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

First Suit Filed for Losses Caused by COVID-19

March 30, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Last week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants. The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy. 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

Adjuster's Report No Substitute for Proof of Loss Under Flood Policy

July 30, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for flood coverage was denied when the insurer refused to accept an adjuster's report submitted without a proof of loss. Jackson v. Fid. Nat'l Ins. Co., 2015 U.S. Dist. LEXIS 66589 (E.D. La. May 21, 2015). Plaintiff's property was damaged by Hurricane Isaac. Defendant Fidelity provided flood coverage for the property through the National Flood Insurance Program (NFIP). After plaintiff submitted a flood claim, she executed a proof of loss for $53,803.02. A second proof of loss for contents was submitted in the amount of $26,556.13. Fidelity paid both these claims. Thereafter, an adjuster's estimate of plaintiff's damages, totaling $284,332.91, was submitted to Fidelity. Plaintiff did not submit a supplemental proof of loss for this claim. Fidelity refused to pay the claim and plaintiff filed suit. 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

Arizona Is the No. 1 Merit Shop Construction State, According to ABC’s 2020 Scorecard

February 15, 2021 — ABC - Construction Executive
Associated Builders and Contractors released its 2020 Merit Shop Scorecard, an annual ranking based on state policies and programs that encourage workforce development, strengthen career and technical education, grow careers in construction, and promote fair and open competition for taxpayer-funded construction projects. Arizona topped the rankings for the first time this year based on the state’s promotion of free enterprise and investment in tomorrow’s construction workforce, a top priority for ABC. Georgia followed Arizona in second place this year, up from fifth in 2019. Florida, a year-to-year high performer, remained in the top five after two years in the top rank in 2018 and 2019. “A foundational pillar of ABC is building the next generation of craft professionals, and the top states in this year’s rankings lead the country in workforce development policies,” said Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs. “The merit shop contractor can flourish in free enterprise environments created in states like Arizona and Florida, which has positive ripple effects on a state’s overall economic growth.” Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Illinois Couple Files Suit Against Home Builder

January 15, 2014 — Melissa Zaya-CDJ STAFF
Last December, Norman and Valerie Adkins, a couple in Edwardsville, Illinois, filed suit against their home builder, Customary Construction, and contractor Kevin M. Kahrig, alleging that the defendants did not build their deck according to code, Kelly Holleran of the Madison Record reported. According to the complaint as stated by the Madison Record, the Adkins purchased the home from the defendants in October of 2010. The couple notified Kahrig (the Customary Construction owner) regarding cracks along the perimeter of their deck that had not been caulked. Kahrig sent a crew to fix the cracks, but the Adkins were unhappy with the work, the complaint states. The Adkins hired a masonry contractor to fix the deck, and the contractor found “structural issues with the arches and brick columns supporting the deck at the back of their home,” reported the Madison Record. The Adkins then hired an engineer who “inspected the deck and reported that it had been improperly constructed and needed to be removed and replaced,” according to the complaint. The engineer continued, “The current condition of the deck is a safety hazard, as there is a risk of collapse and loose bricks or other masonry materials falling and striking a person within the proximity of the deck.” The Adkins are seeking “a judgment of more than $150,000, plus costs and attorney’s fees,” the Madison Record claims. Read the court decision
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