Fairfield Connecticut Building Expert Directory

Construction Litigation Roundup: “Ursinus is Cleared!”

March 11, 2024 — Daniel Lund III - Lexology
Ursinus University in Pennsylvania – a “private, nonprofit liberal arts college” – funded a construction project for a new building utilizing monies loaned by the Montgomery County Health and Higher Education Authority, a public economic development authority “formed by the Board of County Commissioners… authorized to issue bonds relative to projects for eligible educational institution such as Ursinus.” Loans up to the amount of $23,000,000 became available to the University, and construction proceeded using the loans as construction funds. At issue: whether a project was to be considered publicly funded project such that prevailing wage rates were required to be paid. IBEW filed a related grievance with the Pennsylvania Department of Labor and Industry’s Bureau of Labor Law Compliance, which was refused by the Bureau, on the basis that because work was “financed completely by loans from the Authority, which Ursinus was required to repay in their entirety, the Project was ultimately funded through private sources and exempt from coverage under the [Pennsylvania Prevailing Wage Act].” A grievance to the Prevailing Wage Appeals Board ensued, and the Board took a different position. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Developer Africa Israel Wins a Round in New York Condominium Battle

March 12, 2014 — Beverley BevenFlorez-CDJ STAFF
In Manhattan, New York, a “Supreme Court judge partially granted a temporary restraining order to Africa Israel,” which “means the developer does not at this time have to cede control of the Downtown Condominium board to unit owners, following a February lawsuit against the developers by state Attorney General Eric Schneiderman,” according to The Real Deal. The condominium battle began after Schneiderman filed suit against the developers, claiming that they did not fix construction defects, which in turn caused them to fail to obtain a certificate of occupancy, reported The Real Deal. The attorney general “also alleged that the pair misappropriated more than $9 million placed in an escrow account to finance those repairs.” However, according to The Real Deal, Africa Israel has claimed not to be a sponsor of the building. “Attorney Aaron Abraham, representing both Africa Israel and the sponsor of 15 Broad, claimed …that Africa Israel, an Israeli development firm led by billionaire Lev Leviev, never signed any documents claiming to be a sponsor of the building, noting that the sponsor principals were Boymelgreen and Pinchas Cohen.” Steve Sladkus, attorney for the condominium unit owners, told The Real Deal, “They partnered up with Boymelgreen — they need to deal with the fallout of that.” Read the court decision
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New Safety Requirements added for Keystone Pipeline

June 11, 2014 — Beverley BevenFlorez-CDJ STAFF
After learning about construction defects on the “southern leg of the Canada-to-Texas project,” safety regulators have added two additional conditions “on construction of TransCanada Corp.’s Keystone XL oil pipeline,” according to Claims Journal. The defects, which have been fixed, included “high rates of bad welds, dented pipe and damaged pipeline coating.” The first condition requires “TransCanada to hire a third-party contractor chosen by the pipeline safety agency to monitor the construction” and report to the U.S. government, while the second condition requires “TransCanada to adopt a quality management program.” Both conditions were “buried near the end of the 26 appendices in a voluminous environmental impact statement on Keystone XL released by the State Department on Jan. 31.” Read the court decision
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Professional Services Exclusion Bars Coverage After Carbon Monoxide Leak

September 09, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Appellate Court affirmed the trial court's dismissal of the insured's complaint after damage caused by a leak of carbon monoxide caused bodily injury. Allied Design Consultants, Inc. v. Pekin Ins. Co., et al., 2024 Ill. Ct. App. LEXIS 1433 (June 18, 2024). Carbon monoxide leaked in a building addition to a middle school, prompting 23 lawsuits to be filed against the insured, Allied Design Consultants, Inc. Allied was retained to perform certain architectural services to the building addition. Pekin Insurance Company had issued a business owners liability policy and a commercial umbrella liability policy to Allied. Pekin denied a defense to Allied based upon the policies' professional services exclusions. Allied filed suit for declaratory relief against Pekin. Pekin filed a counterclaim, seeking a declaratory judgment that it had no duty to defend. The parties filed cross-motions for summary judgment. The parties agreed the allegations in the personal injury complaint filed by Ferguson were typical and representative of the allegations in the other 22 underlying lawsuits. 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

Additional Insured is Loss Payee after Hurricane Damage

October 01, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Construing the policy language, the federal district court found that the policy's additional insured was the loss payee for damage caused by Hurricanes Laura and Delta. TCP Ryan St. LLC v. Weschester Surplus Lines Ins. Co., 2024 U.S. Dist. LEXIS 125529 (W.D. La. July 16, 2024). Hurricanes Laura and Delta caused damage to TCP Ryan Street, LLC's (TCP) property. Westchester had issued a policy to MRI Heritage Brand, Inc. (MRI). MRI, as lessee, was obligated pursuant to the lease terms to "purchase and maintain . . . a policy of fire, extended coverage, vandalism and malicious mischief (or 'all risk') insurance coverage on all real property situated at the Lease Premises." The lease also required MRI to obtain coverage under a policy naming only the landlord as the sole insured and provided that the proceeds would be payable to the landlord. The policy provided that no entity was covered unless Westchester had received identifying information for the entity during the application process or the entity was added by endorsement. 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

America’s Infrastructure Gets a C-. It’s an Improvement Though

April 05, 2021 — Garret Murai - California Construction Law Blog
Every four years the American Society of Civil Engineers (ASCE) issues a report card assigning a letter grade to the nation’s infrastructure. ASCE issued their 2021 Infrastructure Report Card earlier this month. Our country’s grade in 2021? A disappointing C-. It’s an improvement though. When ASCE issued their 2017 Infrastructure Report Card we didn’t even pass the class with a grade of D+. In short, there’s room for improvement. A lot of room for improvement. C- is just the cumulative grade however. ASCE’s Report Card is divided into industry segments with grades assigned to each segment. Individual grades for some, but not all, of the segments include the following:

Aviation: The nation’s airports received a grade of D+. According to the Report Card, terminal, gate and ramp availability are not meeting the needs of a growing passenger base which has increased from 964.7 million to 1.2 billion per year and a has a 10-year shortfall of $111 billion.

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Modular Homes Test Energy Efficiency Standards

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
The Systems Building Research Alliance (SBRA) will be putting three different energy standards to the test, according to Big Builder. Clayton Homes has been selected to build three modular homes, which will be used in a 15-month energy performance test conducted by Southern Energy Homes (SEHomes). Each home will comply with a different standard: “one complies with the U.S. Department of Housing and Urban Development’s (HUD) thermal standards, one is an Energy Star-qualified home and one meets the DOE requirements for the Challenge Home Program, also known as a DOE Zero Energy Ready Home.” Testing is expected to be completed July 2015. Read the court decision
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Foreclosure Deficiency: Construction Loan vs. Home Improvement Loan

November 12, 2019 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Helvetica Servicing, Inc., v. Pasquan, 2019 WL 3820015, (8/15/19), the Court of Appeals addressed the distinction between (1) a construction loan (or refinance of same) and (2) a home improvement loan (or refinance of same), as it relates to Arizona’s anti-deficiency statute, A.R.S. §33-729(A). In general, an anti-deficiency statute provides that although a purchase-money lender or a construction lender can – in appropriate circumstances – foreclose on their loan and cause a sale of the property to pay the loan, the lender cannot (if the statutory criteria are met) force the homeowner/borrower to pay the remaining balance still owed on the loan following the foreclosure (known as the deficiency). In other words, if the anti-deficiency rule applies, the lender’s sole remedy to collect on the loan is a foreclosure sale of the property; and the homeowner/borrower’s downside risk is loss of the property in foreclosure; the homeowner/borrower does not have any personal liability to pay the remaining unpaid balance of the loan post-foreclosure. In effect, the homeowner/borrower can simply walk away and not have to repay the loan. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

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