Cambridge Massachusetts Building Expert Directory

City Sues over Leaking Sewer System

October 25, 2013 — CDJ STAFF
The city of Storm Lake, Iowa completed a $3.6 million sewer project only year ago, but the system is leaking untreated water into residents properties. The Pilot-Tribune reports that “not all the sewage lines broke,” but the city still needed to check the entire system for damage. The Southwest Shoreline Sanitary District has filed a lawsuit against Lessard Contracting, the firm that built the system. Bob Bergendoff, one of the sanitary district trustees said that “the main thing right now is whether the lines are properly installed.” Steve Anderson, another trustee, said that discussions with Lessard are getting “next to nowhere.” Read the court decision
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Federal Subcontractor Who Failed to Follow FAR Regulations Finds That “Fair” and “Just” are Not Synonymous

April 22, 2019 — Garret Murai - California Construction Law Blog
Inscribed over the doors of the U.S. Supreme Court are the words “Equal Justice Under Law.” It’s a reminder that judicial decisions should be just. That doesn’t necessarily mean fair. In Aspic Engineering and Construction Company v. ECC Centcom Constructors, LLC, U.S. Court of Appeals for the 9th Circuit, Case No. 17-16510 (January 28, 2019), the 9th Circuit overturned an arbitration decision in favor of a local Afghani subcontractor seeking termination costs after it was terminated for convenience by a U.S.-based general contractor. This, despite the arbitrator’s finding that the subcontract was “clearly drafted to give every advantage to” the general contractor, that the local Afghani subcontractor’s “experience with government contracting [was] not nearly as extensive as that of” the general contractor, and “that the normal business practices and customs of subcontractors in Afghanistan were more ‘primitive’ than those of U.S. subcontractors experienced with U.S. Government work.” Aspic Engineering and Construction Local Afghani subcontractor Aspic Engineering and Construction Company was awarded two subcontracts by ECC Centcom Constructors the general contractor on two projects in Afghanistan overseen by the United States Army Corps of Engineers. The first subcontract involved construction of various buildings in the Badghis province of Afghanistan . The second subcontract involved the construction various buildings Sheberghan province of Afghanistan . Both subcontracts included clauses from the Federal Acquisition Regulation (FAR), which were incorporated by reference, and included flow-down provisions obligating Aspic to ECC in the same manner that ECC was obligated to the U.S. government. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

Pennsylvania Supreme Court Rules that Insurance Salesman had No Fiduciary Duty to Policyholders

July 19, 2017 — Austin D. Moody - Saxe Doernberger & Vita, P.C.
On June 20, 2017, the Pennsylvania Supreme Court ruled that a life insurance salesman had no fiduciary duty to his customers where the customers retained decision-making authority regarding which policies to purchase. In Yenchi v. Ameriprise Fin., Inc., the Court returned a 4-2 verdict, overturning the lower court’s finding that it was possible that a fiduciary relationship existed between the parties. The suit arose from a series of transactions between Eugene and Ruth Yenchi and Bryan Holland, a financial advisor for IDS Life Insurance Corporation. The relationship began when Holland cold-called the Yenchis and asked to meet with them regarding their “financial stuff.” For a fee of $350, Holland met with the Yenchis on several occasions and counseled them regarding their insurance needs. On Holland’s advice, the Yenchis cashed out several existing polices and purchased a whole-life policy for Mr. Yenchi and a deferred variable annuity in Mrs. Yenchi’s name. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

Housing in U.S. Cools as Rate Rise Hits Sales: Mortgages

April 28, 2014 — John Gittelsohn and Prashant Gopal – Bloomberg
After a roller-coaster decade of boom-bust-boom, the U.S. housing market is going downhill just when many economists thought annual sales would be heading up. Sales of previously owned properties in March tumbled 7.5 percent from a year earlier to the slowest pace in 20 months, while purchases of new houses sank 14.5 percent from February, according to reports this week. Mortgage applications to buy homes plunged 19 percent from a year earlier, indicating slowing demand during what is typically the busiest season for deals. The housing market’s underlying fragility is emerging as outside influences that fueled a two-year rebound are receding. Mortgage interest rates are rising from record lows as the central bank withdraws its stimulus, and investors, who had helped drive national prices up more than 20 percent as they went on a buying spree, are now retreating. Mr. Gittelsohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Reprinted courtesy of John Gittelsohn and Prashant Gopal, Bloomberg

Effective Zoning Reform Isn’t as Simple as It Seems

July 03, 2022 — Yonah Freemark & Lydia Lo - Bloomberg
The Biden Administration’s Housing Supply Action Plan, unveiled last week, aims to help close America’s shortfall of almost 4 million housing units and subdue the nation’s skyrocketing home prices. At the top of its list of action items is a promise to provide federal grants as a reward to communities that alter land-use policies to promote density, an approach the administration is already piloting. But identifying the land-use policies that most effectively add housing is harder than it seems. Mounting evidence indicates that one-off reforms such as eliminating single-family-only zoning aren’t adequate. To make meaningful progress in building homes, municipalities have to do more. The Biden plan doesn’t detail how it will determine which types of policies will make a community eligible for these federal grants. But to meet the administration’s housing goals, we recommend it require that local governments seeking grants both show that their zoning changes are actually producing additional housing units, and also that their reforms include the full array of land-use policies that affect housing affordability. Read the court decision
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Reprinted courtesy of Bloomberg

WSDOT Excludes Non-Minority Women-Owned DBEs from Participation Goals

June 15, 2017 — Ellie Perka - Ahlers & Cressman PLLC
A drastic change has been implemented by the Washington State Department of Transportation (“WSDOT”) to the Disadvantaged Business Enterprise (“DBE”) Program in Washington. Effective June 1, 2017, WSDOT has implemented a “waiver” to exclude women-owned DBEs[i] from qualifying toward Condition of Award (“COA”) Goals on federally-funded projects. This move is significant. It will likely result in long-lasting detrimental impacts on the DBE community, women-owned businesses, and the entire construction community in Washington. The construction industry should be in an uproar over this change. Instead, it has largely gone unnoticed (likely because its impacts have not yet been felt). It is a de facto exclusion of women-owned businesses from the DBE program, and the severity of this change cannot be overstated. Under the waiver, women-owned businesses no longer satisfy COA Goals on federally-funded projects (i.e., projects receiving funding from the Federal Highway Administration) advertised after June 1, 2017. Existing contracts are not impacted and may continue to utilize women-owned DBEs to satisfy COA Goals until the project is complete. The waiver is not retroactive. Read the court decision
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Reprinted courtesy of Ellie Perka, Ahlers & Cressman PLLC
Ms. Perka may be contacted at eperka@ac-lawyers.com

Contractor Sues Supplier over Defective Products

June 28, 2011 — CDJ STAFF

Fast Track Specialties has sued RJF International after needing to remove wall protection units at Methodist West Houston Hospital, according to an article in the Houston Chronicle. Fast Track claims that contractors had to disconnect gas, water, and electric from the area to facilitate removal of corner guards, handrails, and crash guards from the hospital. This cost the contractor more than $135,000.

Fast Track is claiming that RJD International has committed breach of contract, breach of warranty, and negligent representation.

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Don’t Just Document- Document Right!

February 06, 2019 — Christopher G. Hill - Construction Law Musings
I have stated to clients on many occasions that paper is a lawyer’s best friend. Because of a recent case from the Virginia Supreme Court, I should modify that to the correct paper is a lawyer’s best friend. In Commonwealth v. AMEC Civil, LLC, AMEC sued the Virginia Department of Transportation (“VDOT”) seeking more than $21 million in damages. The Mecklenburg County Circuit Court granted AMEC almost all of its damages and found that AMEC’s notice of intent to make a claim was proper under the Virginia Code even if it was not in the proper form. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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