Fairfield Connecticut Building Expert Directory

Construction Defect Claims are on the Rise Due to Pandemic-Related Issues

April 25, 2022 — Beverley BevenFlorez – CDJ Staff
According to a recent New York Times article, pandemic-related issues such as “stop-and-start construction, global supply chain issues, pressure from lenders and yo-yoing housing prices” has caused an increase in construction defect suits for new apartment developments: “Complaints and legal claims are already emerging, signaling that a confluence of all factors amid the Covid crisis could continue to be a problem for new construction — from entry-level studios to top-tier penthouses — for years to come, according to lawyers and development consultants.” A Times analysis of Department of Buildings data by Marketproof demonstrated an increase in complaints beginning March 1st, 2020: “During the first year of the pandemic, new residential buildings recorded an average of five complaints per building, a 46 percent jump from the same period the previous year.” Steven D. Sladkus, a partner at Schwartz Sladkus Reich Greenberg Atlas told the Times that his “'phone’s been ringing off the hook' with complaints from homeowners in new condo buildings” regarding “heating problems, poor sound insulation, fire safety issues and faulty elevators.” Developers have faced a variety of pandemic-related challenges including a disrupted supply chain, shut downs, shipping delays, labor shortages, and increased material prices. In 2020, the lack of availability of vaccines caused some construction to halt: “Suddenly one guy calls in sick and the whole crew of electricians can’t show up,” Steven Zirinsky, co-chair of the building codes committee at the New York chapter of the American Institute of Architects told the Times. Read the court decision
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No Occurrence Found for Damage to Home Caused by Settling

October 22, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Nebraska Supreme Court found the insurer properly denied coverage to the general contractor for damage to a home caused by settlement. Cizek Homes, Inc. v. Columbia Nat. Ins. Co., 2014 Neb. LEXIS 152 (Neb. Sept. 9, 2014). The general contractor built and then sold the residence. Subsequently, the homeowners complained that the soil beneath their residence was settling and causing damage to their home. The homeowners presented a draft complaint to the general contractor, alleging that negligence and faulty workmanship had caused damage to the home. The general contractor notified its carrier, Columbia. Coverage was denied. 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

Real Estate Developer Convicted in $1.3 Billion Tax Case After Juror Removed

October 17, 2023 — David Voreacos - Bloomberg
A real estate developer was convicted for promoting $1.3 billion in fraudulent tax deductions after a judge removed a deliberating juror who told the judge she was “standing up for White people.” Jack Fisher was found guilty Friday in Atlanta federal court of selling tax deductions to wealthy individuals using so-called syndicated conservation easements, which offer tax breaks for the promise to avoid developing land. Prosecutors said Fisher relied on exaggerated appraisals and backdated documents in the scheme, which earned him tens of millions of dollars. Jurors also convicted a lawyer who worked with Fisher, James Sinnott. Attorneys for Fisher and Sinnott didn’t immediately respond to a request for comment. The nine-week trial nearly came undone by conflicts over race and class within the jury, which began deliberating on Sept. 14. Last week, jurors told US District Judge Timothy Batten they were “hopelessly hung.” Jurors also complained that Juror 26, a White woman, refused to deliberate. Read the court decision
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Reprinted courtesy of David Voreacos, Bloomberg

Insurance Agent Sued for Lapse in Coverage after House Collapses

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
Property Casualty 360 reported a Hawaii case where the court ruled that an “insurance brokerage firm is responsible for the wrongful conduct of its employees, agents and independent contractors as long as they give the public the appearance that the individual is working as an agent of the brokerage.” The case involved a home that collapsed “during an attempted structural renovation.” The original insurance policy had lapsed, and the “application used to procure the second policy stated that there was no renovation work underway on the property, and thus contained a material misrepresentation which voided the second policy, the [homeowners] were left without insurance on the house.” Read the court decision
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The Trend in the Economic Loss Rule in Construction Defect Litigation

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Heather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.” Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.” Read the court decision
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Canada Housing Starts Increase on Multiple-Unit Projects

October 08, 2014 — Greg Quinn – Bloomberg
Canadian housing starts rose 0.5 percent last month led by multiple-unit work, government figures showed. Work started on 197,343 units at a seasonally adjusted annual pace in September, Ottawa-based Canada Mortgage & Housing Corp. said today, close to the 198,000 median forecast in a Bloomberg economist survey with 18 responses. Multiple-unit projects such as condominiums and apartments rose 2.4 percent to 114,579 units. Single-family homes declined 2.9 percent to 62,440 units. Canada may need tougher rules to slow gains in the housing market, the International Monetary Fund said yesterday. Much of the attention has focused on high prices and robust construction of condos in Vancouver and Toronto. Read the court decision
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Reprinted courtesy of Greg Quinn, Bloomberg
Mr. Quinn may be contacted at gquinn1@bloomberg.net

Benefits and Pitfalls of Partnerships Between Companies

December 21, 2016 — Aarni Heiskanen – AEC Business
To bring innovations to the market, companies almost always need partnerships. Partnerships can offer scalability, productivity, and open up new markets. However, partnerships are not easy to establish and manage. The benefits of partnering Construction companies have always done joint ventures. The reason has been to simply be able to bid for and deliver a project that would be too big for one company at that specific moment. Partnering allows you to become larger than you are and to get work that would otherwise be out of your reach. It also lets you spread the risk in a demanding project among the members. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aarni@aepartners.fi

Approaching Design-Build Projects to Avoid (or Win) Disputes

August 07, 2023 — Stuart Eisler - Construction Executive
Stakeholders engage in design-build projects believing the collaborative nature better aligns parties' interests and reduces overall risk exposure. Each of the lead parties bases this belief on different factors—the owner sees an opportunity to reduce change-order exposure and improve delivery times, the design-builder (or contractor) aims to control design volatility by ensuring project components match budgeted projections, and the designer intends to benefit by greater constructability review from the design-builder team and often additional time to detail designs. Rarely do design-build parties contemplate claims arising while initiating a project. This being said, design-build projects carry unique, inherent risks due to the award of often fixed-price contracts utilizing incomplete, preliminary designs. As scopes creep and costs balloon, previously harmonious parties experience discord and lurking claims. While the majority of design-build projects are completed without major dispute, there are strategies available to further avoid disputes and prevail in those that are unavoidable. Reprinted courtesy of Stuart Eisler, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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