Fairfield Connecticut Building Expert Directory

Connecticut’s New False Claims Act Increases Risk to Public Construction Participants

April 02, 2024 — Fred Hedberg & William Stoll - Construction Law Zone
After several decades, Governor Ned Lamont signed a bill into law, effective July 1, 2023, An Act Concerning Liability for False and Fraudulent Claims, Public Act No. 23-129, eliminating language that previously limited enforcement of Connecticut’s False Claims Act to claims relating to a state-administered health or human services program. The revisions dramatically expanded potential liability under the False Claims Act, allowing both private citizens and the Attorney General to bring actions under the Act in any context, including the construction industry. Consequently, contractors, subcontractors, suppliers and design professionals on public construction projects in Connecticut must be familiar with this newly enacted law and take steps to reduce the risks of doing business on such projects. Reprinted courtesy of Fred Hedberg, Robinson & Cole LLP and William Stoll, Robinson & Cole LLP Mr. Hedberg may be contacted at fhedberg@rc.com Mr. Stoll may be contacted at wstoll@rc.com Read the court decision
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New Jersey Strengthens the Structural Integrity of Its Residential Builds

March 11, 2024 — Matthew D. Stockwell - Gravel2Gavel Construction & Real Estate Law Blog
In response to the June 2021 Champlain Towers collapse in Florida, New Jersey supplemented its State Uniform Construction Code Act by enacting legislation (effective January 8, 2024) to strengthen laws related to the structural integrity of certain residential structures in the State. The legislation applies to condominiums and cooperatives (but not single-family dwellings or primarily rental buildings) with structural components made of steel, reinforced concrete, heavy timber or a combination of such materials. The legislation also supplements the Planned Real Estate Development Full Disclosure Act to ensure that associations created under the Act maintain adequate reserve funds for certain repairs. The legislation requires structural engineering inspections of any primary load-bearing system (structural components applying force to the building which deliver force to the ground including any connected balconies). Buildings that are constructed after the date the legislation was signed must have their first inspection within 15 years after receiving a Certificate of Occupancy. Buildings that are 15 years or older must be inspected within two years of the legislation. Thereafter, the structural inspector will determine when the next inspection should take place, which will be no more than 10 years after the preceding inspection, except for buildings more than 20 years old which must be inspected every five years. Also, if damage to the primary load-bearing system is otherwise observable, an inspection must be performed within 60 days. Read the court decision
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Reprinted courtesy of Matthew D. Stockwell, Pillsbury
Mr. Stockwell may be contacted at matthew.stockwell@pillsburylaw.com

Gru Was Wrong About the Money: Court Concludes that Lender Owes Contractor “Contractually, Factually and Practically”

November 07, 2022 — Matthew DeVries - Best Practices Construction Law
This weekend was all about The Rise of Gru. I love Gru so much that when my children ask for money, my best Gru-like voice belts back: “Now, I know there have been some rumors going around that the bank is no longer funding us….In terms of money, we have no money.” And that’s precisely what many lenders say on distressed projects when the owner fails to make final payment and the contractor looks to the bank for funding: “We have no money for you contractor!” In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of the construction loan agreements with the owner. The project involved a $13m construction loan between the lender and the owner to renovate a hotel. The owner and contractor entered into an AIA Contract for the construction management services. During construction the contractor would submit payment applications to the lender, who would review and approve the invoices for payment. The lender then would pay 90% of the approved payment application and hold back the remaining 10% as retainage. The contractor was supposed to be paid the final retainage upon completion, which it did not receive in accordance with the terms of the AIA Contract. Read the court decision
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Reprinted courtesy of Matthew DeVries, Burr & Forman LLP
Mr. DeVries may be contacted at mdevries@burr.com

Illinois Joins the Pack on Defective Construction as an Occurrence

December 16, 2023 — Anna M. Perry - Saxe Doernberger & Vita, P.C.
Illinois joins the majority of states finding “property damage that results inadvertently from faulty work can be caused by an ‘accident’ and therefore constitute an ‘occurrence’.” The Illinois Supreme Court’s ruling in Acuity v. M/I Homes of Chicago, LLC1 (“Acuity v. M/I Homes”) is the first high court ruling in Illinois on this critical coverage issue for contractors. M/I Homes of Chicago, LLC (“M/I Homes”) constructed a townhome development. After completion, water entered the townhomes resulting in interior water damage. The townhome owners’ association filed suit against M/I Homes alleging it, or its subcontractors, caused the damage because it used defective materials, conducted faulty workmanship, and failed to comply with applicable building codes (the “Underlying Action”). Read the court decision
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Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita, P.C.
Ms. Perry may be contacted at APerry@sdvlaw.com

Insurer's Denial of Coverage to Additional Insured Constitutes Bad Faith

May 21, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insurer's unreasonable denial of a defense and indemnity to a lessor/additional insured was found to be in bad faith. Seaway Props. v. Fireman's Fund Ins. Co., 2014 U.S. Dist. LEXIS 55998 (W.D. Wash. April 22, 2014). Seaway leased restaurant space to Ciao Bella Food, LLC. In January 10, 2010, the underlying plaintiff was on her way to the restaurant when she attempted to step down from a concrete platform between the building parking lot and the entrance to the restaurant. Seaway's lease gave Ciao Bella the right to use the common areas, including the parking lot, but did not grant Ciao Bella exclusive control over the common areas. The plaintiff suffered injuries and claimed both Ciao Bella and Seaway were liable. Seaway's lease required Ciao Bella to maintain a CGL policy and to name Seaway as an additional insured. Ciao Bella did so by securing a policy with Fireman's Fund. Fireman's Fund had notice of the plaintiff's claim by November 2010. Seaway demanded in March 2012 that Fireman's Fund indemnify and defend it. In September 2012, two years after it first learned of the plaintiff's injury, Fireman's Fund denied coverage, asserting that Seaway was not an insured under the policy. 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

How You Plead Allegations to Trigger Liability Insurer’s Duties Is Critical

November 01, 2021 — David Adelstein - Florida Construction Legal Updates
How you plead allegations in your lawsuit to trigger duties of a liability insurance carrier is a critical consideration. If the complaint is not pled appropriately, it can result in the carrier NOT owing a duty to defend its insured, which is the party(ies) you are suing. If there is no duty to defend, there will be no duty to indemnify the insured to cover your damages. For this reason, in a number of circumstances, this is NOT what you want because you want to trigger insurance coverage and potential proceeds to be paid by a carrier to cover your damages. There are times when you are confronted with a case that just is not a good insurance coverage case. This may result in you coming up with creative arguments to maximize insurance coverage. Even in these times, you want to plead the complaint to best maximize coverage under the creative arguments you have developed. An example of not pleading allegations in a complaint to trigger an insurer’s duties can be found in the Eleventh Circuit Court of Appeal’s decision in Tricon Development of Brevard, Inc. v. Nautilus Insurance Co., 2021 WL 4129373 (11th Cir. 2021). This case involved a general contractor constructing condominiums. The general contractor hired a subcontractor to fabricate and install metal railings. The subcontractor had a commercial general liability (CGL) policy that named the general contractor as an additional insured with respect to liability for property damage “caused in whole or in part” by the subcontractor’s direct or vicarious acts or omissions. (This is a good additional insured endorsement.) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

US Supreme Court Backs Panama Canal Owner in Dispute with Builders

May 20, 2024 — C.J. Schexnayder - Engineering News-Record
A long-running legal battle over the concrete used in construction of the Panama Canal's third lane expansion locks has reached its end in U.S. courts—with the U.S. Supreme Court on March 26 upholding a $271.8-million award to the project owner, the Panama Canal Authority, against its contractor group, Grupo Unidos por el Canal. Reprinted courtesy of C.J. Schexnayder, Engineering News-Record Mr. Schexnayder may be contacted at schexnayderc@enr.com Read the full story... Read the court decision
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Another Reminder that Your Construction Contract Language Matters

June 06, 2018 — Christopher G. Hill - Construction Law Musings
Here at Musings, I have often (some might say too often) discussed the fact that in Virginia (as well as other places), your construction contract language will be strictly enforced. I have also discussed the need for attorney fees provisions as well as other language in order to mitigate your risk as a contractor. A recent case from the City of Roanoke Circuit Court discussed both of these principals and their intersection. In LAM Enterprises, LLC v. Roofing Solutions, Inc., the Roanoke Court looked at a contract between LAM and Roofing Solutions, Inc. that contained two provisions of the construction contract between the parties. The first provision limited the liability of Roofing Solutions to the contract price. The second provision is a relatively typical “prevailing party” attorney fees provision in which the winner of any lawsuit would be entitled to collect its attorney fees. For the specific language of these provisions, I commend the opinion linked above for your reading. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES