Fairfield Connecticut Building Expert Directory

Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013). Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation. The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Mediating Contract Claims and Disputes at the ASBCA

December 20, 2021 — Brian Waagner - Construction Executive
The Contract Disputes Act establishes the formal process for resolving nearly all claims and disputes that arise under federal government contracts. It is the source of the requirement that contractors certify claims in excess of $100,000, the contracting officer’s final decision and the deadlines for bringing a dispute to the court of federal claims or an agency board of contract appeals. It is also the source of the federal government’s authority to use mediation and other forms of alternative dispute resolution. Here are six key factors contractors should know about mediating contract claims and disputes at the Armed Services Board of Contract Appeals (ASBCA). 1. The Parties Control the Parameters of ADR Proceedings Many commercial contracts and court rules require mediation of every dispute. There is no settlement meeting, mediation or any other type of mandatory ADR proceedings in cases brought to the ASBCA. The parties control the process, and they may adopt any approach to ADR that they believe will be effective. Mediation is nevertheless voluntary. Without the agreement of both parties, it won’t happen. Reprinted courtesy of Brian Waagner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Nuclear Energy Gets a Much-Needed Boost

August 05, 2024 — The Editorial Board - Bloomberg
President Joe Biden, as you’ve no doubt heard, has had a rough few weeks. Yet on Tuesday, he signed a bill into law that could well prove transformative for America’s energy future. Here’s hoping — whatever happens in November’s election — that more progress lies ahead. Known as the Advance Act, the bill seeks to remedy some long-standing flaws in nuclear-energy regulation. To reach net zero, the world will need to roughly double its nuclear capacity by 2050, according to the International Energy Agency. Yet constructing new nuclear plants in the US is expensive, time-consuming and encumbered by red tape. Partly as a result, the industry has stagnated: The share of electricity generated by nuclear is projected to decline to about 12% by 2050, from about 18% today. The Advance Act should help reverse that trend. As a start, it makes useful reforms to the Nuclear Regulatory Commission, allowing the agency to hire more staff, reduce licensing fees, speed application processing and ease the burden of environmental reviews. It also makes a small but consequential change to the commission’s mission, requiring it — after decades of focusing on potential threats — to also consider the vast public benefits of nuclear energy when making regulatory decisions. Read the court decision
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Reprinted courtesy of The Editorial Board, Bloomberg

Facebook Posts “Not Relevant” Rules Florida Appeals Court

February 07, 2014 — Beverley BevenFlorez-CDJ STAFF
A Cape Coral, Florida resident is suing the city and construction companies over alleged negligence “for failing to use reasonable care in keeping the construction site safe for pedestrians,” according to News-Press. The lawsuit was filed after a three-year old boy “jumped out of a wagon pulled by his aunt and darted across the construction zone before being” hit and dragged by a vehicle. The boy “suffers neurological problems from the crash.” The defendants wanted to use Facebook posts made by the Plaintiff about the city, contractors, and subcontractors, as evidence. However, the 2nd District Court of Appeals ruled that the Facebook posts were irrelevant to the case. Todd Robert Falzone, the Plaintiff attorney, said that “it’s becoming more common for defense lawyers to try and introduce social media into any case, but the law is new and there isn’t a lot of guidance for lawyers or judges,” according to News-Press. The defendants’ attorneys did not return News-Press’s calls asking for comments. Read the court decision
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Paycheck Protection Program Forgiveness Requirements Adjusted

June 29, 2020 — Jacob W. Scott - Smith Currie
On June 5, 2020, the President signed into law the Paycheck Protection Program Flexibility Act of 2020, amending portions of the Paycheck Protection Program (“PPP”). Most importantly, the PPP Flexibility Act adjusted the forgiveness requirements for PPP loans. The CARES Act allowed borrowers to apply for forgiveness of loan amounts used for payroll and other covered costs during an eight-week period beginning on the date of origination, or by June 30, 2020, whichever came first. The CARES Act also allowed borrowers to use the loan funds by June 30 to restore employee and payroll levels that had been reduced as a result of COVID-19. The Small Business Administration instructed borrowers that at least 75% of the loan funds had to be used to cover payroll costs during the covered period to be eligible for forgiveness. Read the court decision
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Reprinted courtesy of Jacob W. Scott, Smith Currie
Mr. Scott may be contacted at jwscott@smithcurrie.com

California Attempts to Tackle Housing Affordability Crisis

December 22, 2019 — Garret Murai - California Construction Law Blog
It’s a bit too early yet for our 2020 Construction Law Update but here’s a preview of some of the new laws taking effect next year. Earlier this month, Governor Gavin Newsom signed a slate of 18 bills to boost housing production in an effort to tackle the state’s housing affordability crisis. First, a bit of background. California currently ranks 49th among the states in housing units per resident. Experts say that the state needs to double its current rate of housing production of 85,000 unit per year just to keep up with population growth and four times the current rate to reduce housing costs. Anecdotally, here in the San Francisco Bay Area, the median rent for a one-bedroom apartments in San Francisco is currently $3,690 per month or $44,280 per year. However, as of May 2018, according to the U.S. Bureau of Statistics, the annual mean wage of a teller is just $32,840, for farmworkers $34,700, and for teachers $48,250. And that’s before taxes. Let that sink in for a moment. The result is one in five Californians live in poverty, the highest rate in the nation, when factoring in the cost of living. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Lawmakers Strike Deal on New $38B WRDA

January 09, 2023 — Tom Ichniowski - Engineering News-Record
Key Senate and House leaders have reached a bipartisan agreement on a new Water Resources Development Act (WRDA) that would authorize more than $37 billion in federal funds for 25 new and five modified Army Corps of Engineers flood and hurricane protection, harbor dredging and other civil works projects across the U.S. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Court of Appeals Issues Decision Regarding Second-Tier Subcontractors and Pre-Lien Notice

February 06, 2023 — Travis Colburn - Ahlers Cressman & Sleight
Velazquez Framing, LLC (“Velazquez”) v. Cascadia Homes, Inc. (“Cascadia”) is a Court of Appeals, Division 2 case where the primary issue on appeal was whether a second tier subcontractor was required to provide pre-lien notice under RCW 60.04 for its labor. The defendant, Cascadia, was the general contractor that planned to build a home on property it owned in Lakewood, Washington.[1] High End Construction, LLC (“High End”), submitted a bid to Cascadia for framing work on the home. High End began work on Cascadia’s home, but later subcontracted with Velazquez to complete the framing work.[2] Velazquez did not submit a prelien notice for its work on Cascadia’s home, and Cascadia claimed it was unaware that High End subcontracted with Velazquez for framing at the project. High End invoiced Cascadia and was paid for its work, but High End never paid Velazquez. Subsequently, Velazquez recorded a lien for both labor and materials, and later filed a complaint to foreclose its lien. Cascadia, due to the fact Velazquez did not provide it with prelien notice, moved for summary judgment, arguing prelien notice was required under RCW 60.04.031(1)[3] and the labor portion of a lien cannot be segregated where a subcontractor’s lien includes both labor and materials. Velazquez argued that no prelien notice was required under RCW 60.04.021[4] and RCW 60.04.031 and claimed that subcontractors can segregate the labor portion from the materials portion. The trial court granted Cascadia’s motion and ruled Velazquez did not fall within one of the exceptions for prelien notice in RCW 60.04.031(2), and therefore, could not enforce the lien. Velazquez appealed. Read the court decision
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Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

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