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    Home Builders & Remo Assn of Fairfield Co
    Local # 0780
    433 Meadow St
    Fairfield, CT 06824

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    Salem, CT 06420

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    Building Expert News and Information
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    Hurricane Milton Barrels Toward Florida With 180 MPH Winds

    October 07, 2024 —
    Milton exploded into the Atlantic’s strongest hurricane this year, bearing down as a catastrophic Category 5 storm on a Florida region still struggling to recover from Helene’s devastation. Milton’s top winds reached 180 miles (290 kilometers) per hour, up from 90 mph just 16 hours earlier, the US National Hurricane Center said in an advisory at 5 p.m. New York time. Milton now bests Hurricane Beryl, which raked Texas, Mexico and the Caribbean in July, as the most powerful Atlantic storm this season. With winds this intense, Milton is capable of collapsing homes, flattening trees and triggering power outages that could last weeks to months. It’s difficult for hurricanes to maintain their maximum strength for long, however, so Milton’s winds may drop as it nears Florida’s west coast. Only four Category 5 hurricanes have hit the US mainland, including Michael, which struck Florida’s Panhandle in 2018. Reprinted courtesy of Brian K Sullivan, Bloomberg and David R Baker, Bloomberg Read the court decision
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    Texas Court Requires Insurer to Defend GC Despite Breach of Contract Exclusion

    December 19, 2018 —
    In Mt. Hawley Insurance Co. v. Slay Engineering, et al.,1 a Texas federal court ruled in favor of a general contractor, finding that its insurer had a duty to defend it in a construction defect case filed by the owner. The decision adds more clarity to the interpretation of the subcontractor exception to the “Damage to Your Work” exclusion as well as the Breach of Contract exclusion, which has been the subject of several cases coming out of Texas over the past decade. Read the court decision
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    Reprinted courtesy of Ashley L. Cooper, Saxe Doernberger & Vita, P.C.
    Ms. Cooper may be contacted at alc@sdvlaw.com

    Joint Venture Dispute Over Profits

    January 28, 2019 —
    A recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits. One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim. Read the court decision
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    Reprinted courtesy of David R. Cook, Jr., Autry, Hall, & Cook, LLP
    Mr. Cook may be contacted at cook@ahclaw.com

    Once Again: Contract Terms Matter

    May 11, 2020 —
    I know, you’ve heard this over and over again here at Construction Law Musings: courts in Virginia will interpret a contract strictly and in a manner that gives meaning to its unambiguous terms. A recent case out of the Eastern District of Virginia federal court, White Oak Power Constructors v. Mitsubishi Hitachi Power Systems, reinforces this point. The basic facts of the case relevant to this discussion and the Court’s opinion are these. Old Dominion Electric Cooperative (ODEC) hired White Oak Power Constructors (White Oak) to build a natural gas power plant. The contract between ODEC and White Oak provided for liquidated damages for delay and also contained a risk of loss provision making ODEC responsible for certain losses or damages due to property damage at the plant. I highly recommend that you read the facts of the case in full to get the details of the terms of these clauses. Needless to say (or this case wouldn’t be the subject of a construction law blog), the project ran past completion date and liquidated damages were assessed to the tune of more than $50,000,000.00. The delay was alleged to have been caused in substantial part by property damage due to weather, fire, and ice among other causes. 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

    Consider the Risks Associated with an Exculpatory Clause

    November 24, 2019 —
    An exculpatory clause in a contract is a clause aimed at relieving another party from certain liability. A disclaimer and insulation from liability. Obviously, if you are the party relieving the other party from liability, you want to consider this risk including the potential enforceability of this risk if something goes wrong. If you are the party asking for the insulation from liability, you do not want to create an exculpatory provision that disclaims and insulates you of all liability arising from the contract as it may create an illusory effect – that the agreement is nothing but a naked promise on your end because your promise is fully disclaimed and you are insulated from liability if you break your promise. This could result in an unenforceable contract. The validity of such an exculpatory clause was at-issue in Pier 1 Cruise Experts v. Revelex Corp., 2019 WL 3024618 (11thCir. 2019). Although not a construction dispute, the exculpatory clause in this case was with two fairly sophisticated parties and expressly insulated one of the contracting parties from “any…damages regardless of kind or type…whether in contract, tort (including negligence), or otherwise.” Pier 1 Cruise Experts, 2019 WL at *7. This is a powerful exculpatory clause because it could be broadly construed to insulate that party from its own breaches of the contract. In Florida:
    [A]n exculpatory clause is enforceable so long as (1) the contracting parties have equal bargaining power and (2) the clause’s provisions are clear and unambiguous. With respect to the latter requirement, ‘the intention to be relieved from liability [must be] made clear and unequivocal and the wording must be so clear and understandable that an ordinary and knowledgeable person will know what he is contracting away.” In the same vein, exculpatory clauses are ‘strictly construed against the party seeking to be relieved of liability.’ Pier 1 Cruise Experts, 2019 WL at *7 (internal citations omitted).
    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

    No Coverage for Faulty Workmanship Causing Property Damage to Insured's Product Only

    October 07, 2016 —
    The Nebraska court found there was no coverage for rebar that did not meet specifications and did not cause property damage to other portions of the construction project. Drake-Williams Steel, Inc. v. Cont'l Cas. Co., 2016 Neb. LEXIS 116 (Neb. Aug. 5, 2016). The general contractor was hired by the city to build an arena. Drake-Williams Steel, Inc. (DWS) was hired to supply rebar for the arena. The rebar was improperly bent when it was fabricated by DWS and did not conform to the terms of the contract. The rebar was incorporated into three components of the arena: the columns, the grade beams, and the pile caps. The pile caps were made of concrete with reinforcing rebar and were installed below ground level on top of the concrete piles that extended to the bedrock. The grade beams were also made of concrete and rebar. The beams formed an oval around the arena and connected different pile caps together and were also installed below ground level. No corrections were made to the grade beams. 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

    Builder Pipeline in U.S. at Eight-Year High: Under the Hood

    August 26, 2015 —
    Here’s the takeaway from the Commerce Department’s report Tuesday in in Washington that showed sales of new homes in the U.S rebounded in July to a 507,000 annualized rate. The median forecast of 75 economists surveyed by Bloomberg projected 510,000. * Number of homes sold but not yet started climbed to a 192,000 annualized rate, the most since June 2007. * That means builders have a large pipeline of demand to fill, which will keep housing starts rising. * The number of homes under construction was the lowest since August 2014 and the number completed were the fewest since November. Read the court decision
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    Reprinted courtesy of Sho Chandra, Bloomberg

    Traub Lieberman Attorneys Named 2019 Super Lawyers

    November 04, 2019 —
    Related Attorneys: Jonathan R. Harwood, Michael K. Kiernan, Michael S. Knippen, Meryl R. Lieberman, Christopher Russo, Scot E. Samis, Lisa L. Shrewsberry, Stephen D. Straus, Richard K. Traub, Cheryl P. Vollweiler, Brian C. Bassett, Jessica N. Kull, Jeremy S. Macklin, Dana A. Rice, Burks A. Smith, III, Jason Taylor Ten Traub Lieberman attorneys have been named 2019 Super Lawyers and seven named 2019 Rising Stars. The honored attorneys represent five of the firm's seven offices and nearly all of its service areas. Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas, who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. Read the court decision
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    Reprinted courtesy of