Fairfield Connecticut Building Expert Directory

Georgia Court Clarifies Landlord Liability for Construction Defects

June 02, 2016 — Chadd Reynolds - AHHC Construction Law Blog
In Cowart v. Schevitz, the Georgia Court of Appeals clarified the instances in which an out-of-possession landlord can be liable in a premises liability claim. No. A15A2036, 2016 WL 563114, at *4 (Ga. Ct. App. Feb. 15, 2016). In this case, the plaintiff was leaving a restaurant and injured herself stepping down off of a sidewalk near the bottom of a ramp. The plaintiff filed a premises liability claim against the owner of commercial property (the “landlord”) and the operator of the restaurant (who later settled), seeking medical expenses and costs of litigation. An expert testifying on behalf of the plaintiff stated that the ramp was required to have railings pursuant to building codes and, had the railings been installed on the ramp, the plaintiff’s fall more than likely would not have occurred. The landlord moved for summary judgment, arguing that as an out-of-possession landlord, his liability to third persons for the use of the property by his tenant was precluded under O.C.G.A. § 44-7-14. The trial court denied the motion without comment, and the owner subsequently appealed. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

Beware of Personal-Liability Clauses – Even When Signing in Your Representative Capacity

January 31, 2018 — David R. Cook Jr. – Autry, Hall & Cook, LLP
When a contract is drafted by a party, the other party expects some level of one-sidedness in favor of the drafter. But there are times when a contract goes too far. There are certain provisions that most persons in the construction industry would find unacceptable, unfair, and beyond the pale – even for a one-sided contract. Such a provision was arguably found in an electrical subcontract at issue in a 2014 opinion by a three-judge panel of the Georgia Court of Appeals. Unfortunately, due to long-standing Georgia law, the panel was forced to apply the provision as written. In the case, a contractor hired a subcontractor to perform the electrical scope of work. When the subcontractor failed to pay a sub-subcontractor, the sub-subcontractor filed suit against the subcontractor, contractor, and the payment-bond surety. The contractor asserted a claim of indemnity against the subcontractor based on the sub-subcontractor’s 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

Michigan Court of Appeals Remands Construction Defect Case

February 14, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here. Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds. MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

COVID-19 Response: Recent Executive Orders Present Opportunities for Businesses Seeking Regulatory and Enforcement Relief and Expedited Project Development

June 15, 2020 — Karen C. Bennett, Jane C. Luxton & Amanda L. Tharpe - Lewis Brisbois
Washington, D.C. (June 8, 2020) - Two recent Executive Orders (EO) aimed at promoting economic recovery from the COVID-19 crisis offer regulatory and enforcement relief and encourage agencies to expedite infrastructure project approvals. The May 19, 2020 EO 13924, “Regulatory Relief to Support Economic Recovery,” directs agencies to determine whether previous regulatory reforms would promote economic recovery if made permanent and encourages compliance assistance through exercising enforcement discretion, including declining enforcement. And the June 4, 2020 EO 13927, “Accelerating the Nation’s Economic Recovery from the COVID-19 Emergency by Expediting Infrastructure Investments and Other Activities,” aims to speed up the permitting process for infrastructure projects to strengthen the national economy. As businesses look to move forward and recover from the COVID-19 pandemic, they should closely review these EOs for opportunities to take advantage of streamlined treatment and faster project approvals. EO 13294 supplements the Administration’s efforts to address the economic crisis brought on by the COVID-19 pandemic by encouraging federal agencies to rescind, modify, waive, or provide exemptions from federal regulations that may inhibit economic recovery and to provide guidance to businesses, particularly small businesses, on what is required of them under federal law for reopening. Specifically, the EO directs agency heads to identify regulatory standards that may inhibit economic recovery and consider rescinding or waiving those regulations, exempting regulated entities from compliance, exercising enforcement discretion, or extending regulatory compliance and enforcement deadlines. It also allows for compliance assistance through accelerated regulatory procedures to receive a pre-enforcement ruling and directs agencies to assess previous regulatory reforms to determine whether making them permanent would promote economic recovery. Since taking office, the Trump Administration has made regulatory reform a cornerstone of its agenda. This Executive Order is a continuation of the aggressive steps taken by the Administration to reduce the regulatory burden faced by American businesses that many argue increases operating costs, inhibits job creation, and stifles economic growth. Reprinted courtesy of Lewis Brisbois attorneys Karen C. Bennett, Jane C. Luxton and Amanda L. Tharpe Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com Ms. Tharpe may be contacted at Amanda.Tharpe@lewisbrisbois.com Read the court decision
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Consequential Damage Claims for Insurer's Bad Faith Dismissed

April 22, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Partial dismissal of the insured's complaint seeking consequential damages for the insurer's bad faith was granted by the court. Bryant v. General Cas. Co., 2019 U.S. Dist. LEXIS 15369 (N.D. N.Y. Jan. 30, 2019). Bryant purchased from General Casualty Company of Wisconsin (GCCW) a commercial property and casualty policy to cover the insured premises. While the building was rented to a tenant who operated a restaurant, it sustained a collapse. GCCW refused to cover the loss. Bryant sued. In addition to the cost of repairing and replacing the damage to the property, Bryant alleged he was out the value of rental revenue from his tenant, which was forced to close the restaurant and relocated as a result of the unrepaired damage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Billionaire Row Condo Board Sues Developers Over 1,500 Building Defects

September 29, 2021 — Robert Burnson, Bloomberg
The condo board at one of New York’s tallest and toniest towers sued the building’s developers, claiming design flaws are to blame for flooding, stuck elevators and “horrible and obtrusive noise and vibration.” The residential tower at 432 Park Avenue is a 1,396-foot skyscraper overlooking Central Park that was opened in 2015 on the city’s so-called Billionaire Row. The condo board claims its engineering consultant has identified more than 1,500 construction and design defects — “many of which are described as life safety issues.” The board that represents the condo owners sued the developers, CIM Group and Macklowe Properties, and the company, also known as sponsor, that the developers formed to build the tower. The board is seeking $250 million, plus punitive damages, in the lawsuit, filed Thursday in New York Supreme Court. Read the court decision
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Reprinted courtesy of Robert Burnson, Bloomberg

Factor the Factor in Factoring

May 03, 2017 — David Adelstein - Florida Construction Legal Updates
What is factoring? Have you heard this term used in the business context? Factoring is not uncommon in the business world. It comes up when a business is in need of cash (immediate cash flow) and sells/assigns money owed under accounts receivable to a third party known as a factor. The factor purchases the accounts receivable at a discount in consideration of an assignment of the full value of the accounts receivable from the debtor (the entity that owes the money under the accounts receivable). The factoring arrangement is a recognized relationship, implicates Florida’s Uniform Commercial Code, and places obligations on the debtor to pay the factor directly for the accounts receivable upon notice of the assignment. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

Mortgage Bonds Stare Down End of Fed Easing as Gains Persist

October 29, 2014 — Jody Shenn – Bloomberg
The end of the Federal Reserve’s third round of bond purchases is proving to be a non-event for mortgage-backed debt. That’s partly because even though the U.S. central bank won’t be adding more home-loan securities to its balance sheet, policy makers will still be buying enough to prevent its holdings from shrinking. Those purchases are having a greater impact as the pace of net issuance slows to a quarter of the amount last year amid a weaker property market. The $5.4 trillion market for government-backed mortgage bonds is defying predictions for a slump tied to the wind-down of the Fed stimulus program, whose completion economists predict will be announced today. Yields on benchmark Fannie Mae (FNMA) notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five- and 10-year Treasury rates. Read the court decision
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Reprinted courtesy of Jody Shenn, Bloomberg
Ms. Shenn may be contacted at jshenn@bloomberg.net

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