Fairfield Connecticut Building Expert Directory

Construction Litigation Roundup: “Give a Little Extra …”

July 31, 2024 — Daniel Lund III - Lexology
Surplus lines insurers in Louisiana are considered by the state to be “an alternative type of property and casualty insurance coverage for consumers who cannot get coverage on the standard market … for specialty risk or high-risk situations….” As a quid pro quo for undertaking the exceptional risk, a surplus lines insurer argued to the United States Fifth Circuit Court of Appeals that an arbitration clause within its surplus line policy should be enforceable, notwithstanding a Louisiana statute applying to the insurance industry and prohibiting terms in insurance policies “delivered or issued for delivery” in Louisiana which have the effect of “[d]epriving the courts of this state of the jurisdiction or venue of action against the insurer.” La. R.S. 22:868. Historically in Louisiana, arbitration clauses have been understood to divest courts of jurisdiction, and, consequently, §22:868 has been held to memorialize an “anti-arbitration policy,” although the statute does not specifically mention arbitration. 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

Can’t Get a Written Change Order? Document, Document, Document

August 29, 2018 — Todd M. Heffner - Smith Currie
Most construction contracts require that any changes to the work be made formally, in writing, via a change order, work directive, or similar written document. Frequently, however, changes to the work or extra work are communicated orally by the architect, engineer, or owner’s representative, instead of in writing. What is the contractor to do in such a situation? The best option is follow the provisions of the contract and demand a written change order before performing changed work. Unfortunately, the realities of construction sometimes make it impossible to get the changes in the proper format in a timely manner. Savvy contractors will maintain schedule and produce written documentation of the change in lieu of a formal change order or directive. But many contractors will simply proceed with the changed work, relying on the owner, architect, or engineer to do the right thing and stand by their oral instructions. Read the court decision
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Reprinted courtesy of Todd M. Heffner, Smith Currie
Mr. Heffner may be contacted at tmheffner@smithcurrie.com

Residential Construction Surges in Durham

October 30, 2013 — CDJ STAFF
Third quarter residential construction permits in Durham, North Carolina were up 72% over the third quarter of last year, for a total of 1,770 new residential units. There was a large increase in the value of the construction contracts as well, with construction contracts reaching $151.3 million, more than $42 million over the same period in 2012. Ted Conner of the Greater Durham Chamber of Commerce said that he didn’t “think we’re going to continue to see that frenetic, high level of activity, but it’s still very active.” One reason for increased residential construction is a lack of available apartment spaces, which is also sending rents up in the area. Although much of the new construction will be middle- to upper-end, the greater availability should help all renters. Read the court decision
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Water Seepage, Ensuing Mold Damage Covered by Homeowner's Policy

August 13, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The appellate court reversed the trial court's determination that the policy covered only mold damage, but not damage caused by water seepage. Henderson v. Georgia Farm Bureau Mut. Ins. Co., 2014 Ga. App. LEXIS 539 (Ga. Ct. App. July 16, 2014). The homeowner's policy covered losses caused by constant seepage or leakage of water or the presence of condensation or moisture over a period of time. The insureds also paid for additional coverage for "ensuing mold . . . caused by or resulting from" one of the covered risks, including water seepage. Ms. Henderson discovered a puddle of water in her kitchen and contacted Georgia Farm Bureau. The insurer's contractor tore out a section of the floor, but found no other problems of water seepage. Later, the Hendersons removed another part of the floor and discovered standing water and black mold underneath. The Hendersons had to vacate their house for one year. 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

Tightest Credit Market in 16 Years Rejects Bernanke’s Bid

October 08, 2014 — Prashant Gopal – Bloomberg
James Bregenzer, a 31-year-old marketing strategist in Chicago, was rejected for a mortgage in May after successfully financing two previous home purchases. The hitch this time: his monthly payment would have been $100 more than the lender was willing to approve. Bregenzer is in good company. Standards in the U.S. are so high and inflexible that former Federal Reserve Chairman Ben S. Bernanke, now a Brookings Institute fellow-in-residence with a net worth of at least $1.1 million, said at a conference last week that he couldn’t refinance his house in Washington. Even some doctors struggle to get home loans if they’re self-employed. “We asked if we could go over by $100 and were told that’s just not going to work,” said Bregenzer, who bought his first home before getting married in 2008. “The process of buying a home used to be stupid easy. Now, my wife and I were buying a home with two salaries, we make a heck of a lot more than I used to, and I have to go into great and terrible detail to show documentation.” Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

More Musings on Why I Mediate

November 18, 2024 — Christopher G. Hill - Construction Law Musings
Whew! I’m back. And yes, I know it’s been a while (it has been a busy year, both personally and professionally). Hopefully, this will be the first of at least a few more consistent posts here at Construction Law Musings. Now, on with the post: Over the last few weeks, I’ve had a surge in mediation, both in my capacity as a mediator and as counsel for construction industry clients. These recent events have reaffirmed what I have always believed to be true, namely that no construction case is impossible to settle and avoid the cost and expense of litigation. I was also reminded of why I became a certified mediator and of the satisfaction that I get from helping individuals and construction companies find a business solution and closure. 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

Spencer Mayer Receives Miami-Dade Bar Association's '40 Under 40' Award

March 04, 2024 — Lewis Brisbois Newsroom
Miami, Fla. (February 23, 2024) – Miami Associate Spencer Mayer received the 2024 Miami-Dade Bar Association Young Lawyers Section’s '40 under 40' Award at the association's annual "Miami Nights" event on February 22. Mr. Mayer serves on the Board of Directors of the Miami Dade Bar Association’s Young Lawyers Section. Lewis Brisbois was a proud sponsor of this event, which raised funds for the organization's community service initiatives and pro bono programming. Mr. Mayer is a member of the General Liability Practice. His practice focuses on all aspects of civil litigation, including complex commercial litigation, products liability, premises liability, wrongful death, catastrophic injury, and insurance coverage. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Failing to Adopt a Comprehensive Cyber Plan Can Lead to Disaster

January 13, 2020 — Richard Volack - Construction Executive
Despite being aware of cyber risk, and even frightened by it, a shocking number of companies in the construction industry have neither a cyber insurance policy nor a basic cyber security plan to deal with a hack or breach into their computer systems. Once breached, companies with no plan in place become, essentially, a rudderless ship subject to the whims of criminal tides. A proper cyber plan lays out at least the following:

the criteria for when a plan would be triggered (i.e., in the event of a breach or a hack);
which persons inside the company (in-house counsel, IT personnel, executive, project managers) and which persons outside the company (attorney with knowledge of cyber issues and ideally construction law as well; forensic computer experts, crisis management experts; and an insurance broker familiar with cyber policies) should be involved;
the chain of command and communication in this type of situation and the distinct roles each of the above players will fulfill (Note: this is not the same as the normal corporate chain of command); and
the various available options to address the breach situation, which will all depend upon the facts at issue—such as the type and extent of the breach and how much of what particular kind of information was lost, stolen or exfiltrated.

Reprinted courtesy of Richard Volack, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Volack may be contacted at rvolack@pecklaw.com Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES