Fairfield Connecticut Building Expert Directory

Sales of New U.S. Homes Fell in February to Five-Month Low

March 26, 2014 — Shobhana Chandra – Bloomberg
Purchases of new homes in the U.S. fell in February to the lowest level in five months, a sign the industry may take time to pick up after inclement weather damped demand earlier in the year. Sales declined 3.3 percent to a 440,000 annualized pace, following a 455,000 rate in the prior month that was the strongest in a year, figures from the Commerce Department showed today in Washington. The median forecast of 77 economists surveyed by Bloomberg called for 445,000. Unusually frigid temperatures added to restraints including rising mortgage rates, higher property values, and a lack of supply that kept prospective buyers away from the market for new and existing properties. Bigger gains in employment and consumer sentiment would help spur the recovery in homebuilding, sustaining its contribution to economic growth and boosting earnings at companies such as Lennar Corp. and KB Home. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg
Ms. Chandra may be contacted at schandra1@bloomberg.net

Construction Defects Lead to “A Pretty Shocking Sight”

October 14, 2013 — CDJ STAFF
Walls black with mold. Grass growing on carpets. The board chair of the Penhorwood condos, Christine Burton, describes the photos as “a pretty shocking sight.” The residents were all evicted in 2011 and given only fifteen minutes to gather what possessions they could after the buildings were found to be structurally unsound. An attempt was made to stabilize the buildings, but they kept shifting and cracking, exposing the interiors to the elements. The owners of the Fort McMurray condominium complex are suing the developer, contractor, and others for $60 million. Fort McMurray has ordered that the buildings be torn down, although the condo owners don’t have the funds for this. Even the funds for continuing the lawsuit are hard to come by. Ms. Burton notes “because of the evacuation and the cost of stabilizing the building so that we could go in and get people’s furniture and personal effect out has pretty much depleted our funds.” The owners “have no more money.” The condo owners are hoping that they can sell the land where their former homes are in order to recoup some of their losses. Read the court decision
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Construction Industry Survey Says Optimism Hits All-Time High

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
The Nashville Business Journal reported that “construction optimism has been growing exponentially since it hit an all-time low in 2009.” Furthermore, “Wells Fargo's 2014 Construction Industry Forecast saw the Optimism Quotient rise to an all-time high of 124 after a survey that was performed in January.” Reasons for the rise, according to Wells Fargo National Sales Manager John Crum, include “more capital available from banks, more public jobs and state and local governments being able to shore up their money supplies,” as quoted by the Nashville Business Journal. Read the court decision
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A Funny Thing Happened to My Ground Lease in Bankruptcy Court

November 25, 2024 — Christopher F. Graham & Morgan A. Goldstein - White and Williams LLP
EXECUTIVE SUMMARY Ground leases are an important – if somewhat unusual – part of the real estate finance industry. Because they typically cover large expensive properties like Rockefeller Center and The Empire State Building, to name two, and last a long time (99 years and up to start) the likelihood of something unexpected or unintended happening is high. This likelihood increases dramatically if, as highlighted below, one or both of the lease parties’ files for bankruptcy. Accordingly, real estate professionals should take note and take care when entering into any transaction involving a ground lease. Reprinted courtesy of Christopher F. Graham, White and Williams LLP and Morgan A. Goldstein, White and Williams LLP Mr. Graham may be contacted at grahamc@whiteandwilliams.com Ms. Goldstein may be contacted at goldsteinm@whiteandwilliams.com Read the court decision
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Message from the Chair: Kelsey Funes (Volume I)

November 06, 2023 — Marissa L. Downs - The Dispute Resolver
I am so honored to assume the Division 1 mantle from my friend, Tom Dunn, and look forward to carrying on his good work. For those of you who don’t know me, I’d like to take this opportunity to share a bit about my background. I grew up in New Orleans and went to LSU for undergraduate and law school. (Geaux Tigers!) I started my practice in 1997 at Phelps Dunbar LLP in Baton Rouge, where I still practice today. I manage the litigation group in the Baton Rouge office of the firm. I practice as a construction lawyer full time and serve on the Construction Panel of the American Arbitration Association and serve as a mediator in construction cases. I am married to Dr. Chris Funes (the world’s best pediatrician) and we are the parents to two high schoolers. My son is a high school senior and my daughter is a sophomore. So, when I am not lawyering, I have been spending my time lately touring colleges, prepping for homecoming, and helping to teach my daughter to drive (all very relaxing!!). We also have a very sweet (and very hairy) rescue dog, Maggie, who makes sure we get lots of walks. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

Contractor’s Unwritten Contractual Claim Denied by Sovereign Immunity; Mandamus Does Not Help

September 22, 2016 — David R. Cook Jr. – AHHC Construction Law Blog
In a very well-reasoned opinion, the Supreme Court of Georgia upheld the denial of a contractor’s unwritten-contract claim against a county based on sovereign immunity. Based on an alleged oral contract, Contractor built a sewer pumping station for the County in exchange for an interest in the station’s pumping capacity. When the County denied Contractor’s demand for an interest, he filed suit. As noted in many prior posts, the Georgia constitution reaffirms sovereign immunity of the state – which the courts interpret to include counties. One common exception in the public works area is the Constitution’s “ex contractu clause,” which waives sovereign immunity for claims based on written contracts. Of course, a precondition to the waiver of sovereign immunity is the existence of a written contract – which Contractor did not have. Applying these rules, the court affirmed the denial of Contractor’s claims based on contract and quasi contract. In the absence of a written contract, there can be no contractual claim against the County. The same rule applies for quasi-contractual claims. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

SDNY Vacates Arbitration Award for Party-Arbitrator’s Nondisclosures

April 13, 2017 — Justin K. Fortescue & Ciaran B. Way - White and Williams LLP
The US District Court for the Southern District of New York recently vacated an arbitration award finding that a party-appointed arbitrator’s undisclosed relationship with the party appointing him was significant enough to demonstrate evident partiality. Certain Underwriting Members at Lloyd’s of London, et. al. v. Ins. Companies of America, Inc., Nos. 16-cv-232 and 16-cv-374 (S.D.N.Y. March 31, 2017). In the arbitration, the panel was asked to determine whether the reinsurance contracts, covering workers’ compensation policies, only applied when multiple claimants were injured as the result of the same loss occurrence. After a three-day hearing, the arbitration panel issued an award in favor of the ceding company, Insurance Companies of America (ICA). After the award was issued, Lloyd’s discovered that ICA’s arbitrator had significant undisclosed relationships with principals at ICA and moved to vacate the award in federal court. Reprinted courtesy of Justin K. Fortescue, White and Williams LLP and Ciaran B. Way, White and Williams LLP Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com Ms. Way may be contacted at wayc@whiteandwilliams.com Read the court decision
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Care, Custody or Control Exclusion Requires Complete and Exclusive Control by Insured Claiming Coverage

July 30, 2019 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In McMillin Homes Construction v. Natl. Fire & Marine Ins. Co. (No. D074219, filed 6/5/19) a California appeals court held that a “care, custody or control” exclusion did not bar coverage for defense of a general contractor as an additional insured under a subcontractor’s policy, because the exclusion requires exclusive control, but the facts and allegations posed a possibility of shared control with the subcontractor. McMillin was the general contractor on a housing project and was added as an additional insured to the roofing subcontractor’s policy pursuant to the construction subcontract. The homeowners sued, including allegations of water intrusion from roof defects. McMillin tendered to the roofing subcontractor’s insurer, which denied a defense based on the CGL exclusion for damage to property within McMillin’s care, custody or control. In the ensuing bad faith lawsuit, McMillin argued that the exclusion required complete or exclusive care, custody or control by the insured claiming coverage, which was not the case for McMillin. The insurer argued that the exclusion said nothing about complete or exclusive care, custody or control. Further, the intent to exclude coverage for damage to any and all property in McMillin’s care, custody or control, to whatever degree, was demonstrated by the fact that the additional insured endorsement in question was not an ISO CG2010 form, but a CG2009 form, which expressly adds a care, custody or control exclusion to the additional insured coverage not found in the CG2010 form. The argument was that the CG2009 form evidences an intent to conclusively eliminate coverage for property in the additional insured’s care, custody or control. In addition, the insurer argued that this result was also reinforced by its inclusion of an ISO CG2139 endorsement in the roofer’s policy, which eliminated that part of the “insured contract” language of the CGL form, defining an “insured contract” as “[t]hat part of any other contract or agreement pertaining to your business . . . under which you assume the tort liability of another party to pay for ‘bodily injury’ or ‘property damage’ to a third person or organization.” The insurer’s argument was that by having eliminated coverage for contractual indemnity or hold harmless agreements, it had “closed the loop” of eliminating additional insured coverage for construction defect claims. 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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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES