FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Starter Apartment Is Nearly Extinct in San Francisco and New York

October 28, 2015 — Patrick Clark – Bloomberg
So you’re looking for a one-bedroom apartment in San Francisco, and you have about $2,000 a month to spend. You know the city’s median rent is more than $4,200 a month, but median means half the apartments cost less. Surely there are larger, more expensive apartments pulling up the midpoint. Perhaps. But there’s a reason Google employees are sleeping in their trucks. Ninety-one percent of one-bedroom apartments in San Francisco cost more than $2,000 a month. Perhaps more surprising is the number of apartments that occupy the high end of rental rates: In Manhattan, a fifth of one-bedrooms rent for more than $4,000. Read the court decision
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Reprinted courtesy of Patrick Clark, Bloomberg

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Los Angeles Delays ‘Mansion Tax’ Spending Amid Legal Fight

April 25, 2023 — Laura Curtis - Bloomberg
Los Angeles plans to hold off spending most of the money collected from a voter-approved “mansion tax” until legal challenges against the initiative are resolved. Mayor Karen Bass revealed in her 2023-24 budget plans that the city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month to fund the construction of more affordable housing. The decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount. Read the court decision
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Reprinted courtesy of Laura Curtis, Bloomberg

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Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

June 15, 2011 — Haight Brown & Bonesteel, LLP

On June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.



Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.



A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.



The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.



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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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Insurance and Your Roof

November 13, 2013 — CDJ STAFF
Those seeking home insurance should look up. Bankrate points out that the type of roof a home has can affect how much it costs to insure it. “The roof is the first layer that wind, hail, wildfire and other hazards really begin to act on,” Tim Reinhold, the chief engineer at the Insurance Institute for Business and Home Safety, told the site. For insurers, the most problematic roof type is probably wood shakes. “Some companies won’t even insure certain roof types, such as wood shakes, in high fire-risk areas,” said Robert Hunter, the director of insurance for the Consumer Federation of America. Not that other roof types are problem-free. Metal roofs can corrode, particularly when two different metals touch. Shingles age more quickly than other roof types, becoming brittle, and they can blow off in high winds. Tile roofs are expensive, something insurers are guaranteed to factor into the insurance rates. Read the court decision
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What Lies Beneath

April 10, 2023 — Grace Austin - Construction Executive
Industry experts call it the “Wild Wild West,” and it certainly could be considered a new frontier: private utility locating. While public utility locating is familiar territory, private utility locating is decidedly newer—and already changing rapidly. Public or private, utility location is imperative to safe and cost-effective construction. Hidden utilities can lead to damage, driving up costs and causing unexpected project delays. They can also be dangerous to both workers and the public, causing injuries and even deaths. The Common Ground Alliance’s 2021 DIRT Report—which compiles information from CGA’s Damage Information Reporting Tool program—found that natural gas and telecommunications were the leading utilities damaged. DIRT received more than 230,000 reports on damages and near-misses in 2021. Clearly, the industry can do better. CALL BEFORE YOU DIG Utility location mapping in the United States began in earnest in the mid-20th century, according to GPRS, a private utility-mapping company that was founded in 2001. As postwar development shifted into high gear, the utility industries realized that power, water, gas, phone and other utilities were now being installed in the ground—and there needed to be a better system to prevent service disruptions and accidents. Reprinted courtesy of Grace Austin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Stormy Seas Ahead: 5th Circuit to Review Whether Maritime Law Applies to Offshore Service Contract

July 26, 2017 — Richard W. Brown & Afua S. Akoto - Saxe Doernberger & Vita, P.C.
Earlier this year, the 5th Circuit applied the Davis factors to determine the validity of an indemnity clause in a Master Services Contract. In Larry Doiron Inc. et al., v. Specialty Rental Tool & Supply LLP et al., the court affirmed the notion that if a contract provides services on navigable waters aboard a vessel, a maritime contract exists, even if the contract calls for incidental or insubstantial work unrelated to the use of a vessel. With this decision, plaintiffs were granted indemnification for a crane injury and all was well on the open seas. The 5th Circuit made waves, however, on July 7, 2017, when it agreed to rehear the case en banc. In its petition for rehearing, defendant STS argued that: (1) the original opinion conflicted with Supreme Court precedent by applying tort law principles to a contract case; (2) the court misapplied the Davis factors and the decision was contrary to Davis because the historical treatment of specialty well service work has been established as non-maritime; (3) the court needed to address whether a contract is subject to maritime or land-based law in the context of offshore mineral exploration. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Afua S. Akoto, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at rwb@sdvlaw.com Ms. Akoto may be contacted at asa@sdvlaw.com Read the court decision
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Do Engineers Owe a Duty to Third Parties?

June 10, 2015 — Craig Martin – Construction Contractor Advisor
A Texas Court of Appeals, in USA Walnut Creek, DST v. Terracon Consultants, Inc., recently ruled that an engineer owed a duty to the buyer of an apartment complex, even though the engineer had no contractual relationship with the buyer. This is an expansion of the duty professionals owe on construction projects and could signal a change in the law. In the case, Walnut Creek purchased a three year old apartment complex. A few years after taking possession, Walnut Creek noticed problems with the apartments, including cracking foundations, walls, breaking windows, and out of square door frames. Walnut Creek sued the developer and general contractor, alleging construction defects. The developer claimed that the engineer, Terracon, was at fault and Walnut Creek added Terracon to the lawsuit, asserting that Terracon was negligent in performing engineering services during construction. Terracon asked the court to dismiss the claim, arguing that it did not owe a duty to Walnut Creek. Walnut Creek in turn argued that engineers do owe a duty to subsequent owners. The trial court dismissed the case against the engineer and Walnut Creek appealed. The appellate court reversed the trial court, finding that the engineer did owe a duty to subsequent purchasers. The court seemed persuaded by the allegations that the engineer actually created the construction defects which were the basis for the litigation. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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The Anatomy of a Construction Dispute Stage 3- The Last Straw

January 28, 2015 — Christopher G. Hill – Construction Law Musings
Over the past two weeks here at Construction Law Musings, I’ve discussed the first two stages of a typical construction dispute (if such a thing exists): the claim, and how to bring heat short of litigation/arbitration. As promised, this week I’ll be discussing the next step or “last straw” in a construction dispute, namely, arbitration or litigation to enforce all of those rights that you preserved in the first two stages. Construction litigation is expensive, time consuming, and, quite frankly, a pain in the neck. Because of this fact, I almost always recommend that my construction clients exhaust all of the non-litigation methods (including mediation of course) of resolving their disputes prior to “going nuclear” and filing suit. Unfortunately, even the most diligent attempts at less formal resolution means can be unfruitful and more formal means become necessary. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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