Fairfield Connecticut Building Expert Directory

Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

November 07, 2012 — CDJ STAFF
In Truppi v. Pasco Engineering, John Quattro sued Property Management Contractors, Inc. over construction defects in William Truppi’s home. All parties are named in the suit. The California Court of Appeals ruled that Property Management Contractors, Inc. (PMCI) could not compel Mr. Quattro to arbitration. The background of the case involves two houses built in Encinitas, California by PCMI: one for Mr. Truppi at 560 Neptune, and one for Mr. Quattro at 566 Neptune. Both contracts contained an arbitration provision. Mr. Quattro signed the contract for his residence and Mr. Truppi signed the other. Mr. Quattro then sued PCMI and its principal, William Gregory. Mr. Quattro claimed to be the true contracting party for the 560 Neptune residence and a third party beneficiary of the contract Mr. Truppi signed, and stated that PCMI was aware of this. PCMI in a demurrer stated that Quattro “had only a ‘prospective beneficial interest in the property upon its eventual sale or lease.’” Mr. Quattro amended his complaint to account for the issues raised by PCMI. The court rejected PCMI’s demurrer to the amended complaint. Finally, PCMI and Gregory asserted that Quattro was “not the real party in interest” and could not sue. PCMI continues to assert that Quattro lacks standing, but their attorney sent Quattro an e-mail stating, “While my client disputes that you are a party, and that you lack standing to assert the claim, to the extent you do so I believe you are obligated to proceed by way of arbitration.” The court did not cover the issue of Quattro’s standing in the case, only if he could be compelled to arbitration. The court affirmed the lower court’s finding that Quattro could not be compelled to arbitrate the construction defect claim as neither he nor Gregory signed the contract in an individual capacity. Further, the court noted that PCMI and Gregory “denied the existence of an agreement between themselves and Quattro on the 560 contract,” and cannot compel arbitration on a non-existent agreement. And while non-signatories can, in some situations be compelled to arbitrate, the court found that “these cases are inapplicable because here they seek to have the alleged third party beneficiary (Quattro) compelled by a nonsignatory (Gregory).” The arbitration clause in question “expressly limited its application to persons or entities that signed the 560 contract.” As Mr. Quattro was not a signatory to that agreement, the court found that he could not be held to its arbitration provision. Read the court decision
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Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season

October 11, 2021 — Tracy Alan Saxe, Kelly A. Johnson, Samantha M. Oliveira & R. G. Nelson - Saxe Doernberger & Vita
SDV's Natural Disaster Recovery Group presents the Hurricane Handbook: A Policyholder's Guide to Handling Claims during Hurricane Season. This handbook intends to be a practical guide on policyholder issues, both homeowners and business owners alike, when preparing for hurricane season and handling claims after a loss due to a hurricane. The handbook is a living document that will evolve over time, as our Natural Disaster Recovery Group members continue to contribute new and expansive content on the complex issues arising in this area. Remember to check back for additional information and updated content regarding the Hurricane Season Policyholder’s Handbook. I. Are You Adequately Insured for a Hurricane? Understanding the various types of coverage policyholders can purchase is vital to weathering the financial storm following a natural disaster. Reprinted courtesy of Tracy Alan Saxe, Saxe Doernberger & Vita, Kelly A. Johnson, Saxe Doernberger & Vita, Samantha M. Oliveira, Saxe Doernberger & Vita and R. G. Nelson, Saxe Doernberger & Vita Mr. Saxe may be contacted at TSaxe@sdvlaw.com Ms. Johnson may be contacted at KJohnson@sdvlaw.com Ms. Oliveira may be contacted at SOliveira@sdvlaw.com Ms. Nelson may be contacted at RNelson@sdvlaw.com Read the court decision
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SB 721 – California Multi-Family Buildings New Require Inspections of “EEEs”

December 19, 2018 — Brenda Radmacher - Gordon & Rees Construction Law Blog
Many in the construction industry and multi-family development field have been closely following Senate Bill 721, or the “Balcony Bill,” regarding new requirements for building owners associated with decks and balconies. After almost a dozen amendments, the “Balcony Bill” finally passed in the state legislature with an overwhelming majority and was signed into law September 17th, 2018, by Governor Jerry Brown. Balconies and decks, called “Exterior Elevated Elements” (“EEE”) in the statute, are common features in most multi-family buildings in California – where better to enjoy the California sun? However, many of the structures have proven to be problematic at best due to complex intersections of construction trades and design issues as well as limited understanding and effectuation of maintenance. Indeed, the “Balcony Bill” arose largely out of an outcry following the 2015 balcony collapse in Berkeley in 2015, which left six young people dead and another seven injured. Read the court decision
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Reprinted courtesy of Brenda Radmacher, Gordon & Rees Scully Mansukhani
Ms. Radmacher may be contacted at bradmacher@grsm.com

Drafting a Contractual Arbitration Provision

February 11, 2019 — David Adelstein - Florida Construction Legal Updates
A recent Florida case discussing a contractual arbitration provision in a homebuilder’s contract discussed the difference between a narrow arbitration provision and a broad arbitration provision. See Vancore Construction, Inc. v. Osborn, 43 Fla.L.Weekly D2769b (Fla. 5th DCA 2018). Understanding the distinction between the two types of arbitration provisions is important, particularly if you are drafting and/or negotiating a contractual arbitration provision. A narrow contractual arbitration provision includes the verbiage “arises out of” the contract such that disputes arising out of the contract are subject to arbitration. Arbitration is required for those claims the have a direct relationship with the contract. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Standard Lifetime Shingle Warranties Aren’t Forever

April 03, 2013 — CDJ STAFF
Olympia Construction’s roofing division explained to the web site Thurston Talk how long “lifetime” warranties on shingles really last. Your lifetime? You’re likely to live out the effective period of your lifetime shingle warranty. They note that 100% coverage of the shingle replacement typically lasts only for ten years (and does not cover removal of the existing defective shingles). After that, coverage continues to decline without covering any of the labor. And this can be significant, since they noted that they have seen cases in which a batch of defective shingles means that every home on the block has a defect claim. Read the court decision
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No Coverage for Co-Restaurant Owners Who Are Not Named In Policy

August 24, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court denied two plaintiffs' claims for breach of the policy and for bad faith because they were not insureds under the policy. Tu v. Dongbu Ins. Co., 2017 U.S. Dist. LEXIS 115200 (N.D. Calif. July 24, 2017). Dongbu, a Hawaii insurance company, issued a two-year policy to Plaintiff Ken Tu for his business. He was the only named insured under the policy. The waste system at Plaintiffs' restaurant failed, causing fumes to impact neighboring tenants and waste to contaminate the underlying soil. Plaintiffs were forced to close the restaurant. A claim was tendered for damage and repair, loss of business income, and other insured losses. Dongbu denied coverage. 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

The Construction Lawyer as Problem Solver

October 21, 2015 — Christopher G. Hill – Construction Law Musings
As a construction attorney here in Virginia I “wear many hats.” Counselor, mediator, adviser, risk manager, litigator, and others depending upon the situation. I take each and every one of these roles seriously and at times take on more than one depending on a client’s situation. One “role” that I try to keep in mind every day when I come to work is that of problem solver. In response to the various attacks on an attorney’s role in the construction world, I have written that your friendly neighborhood construction lawyer can and should be part of the solution, and not part of the problem. A big part of this in my mind is the need to focus on the fact that any construction dispute is a problem to be solved, preferably earlier rather than later. By the time that a construction matter reaches my desk, the parties to that dispute have likely reached some sort of impasse in need of an efficient solution. 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

When is Construction Put to Its “Intended Use”?

July 31, 2013 — Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLC
Defining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced. On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer. Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Brady Iandiorio can be contacted at Iandiorio@hhmrlaw.com

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