Fairfield Connecticut Building Expert Directory

Drafting the Bond Form, Particularly Performance Bond Form

July 14, 2016 — David Adelstein – Florida Construction Legal Updates
Oftentimes, when it comes to payment and performance bonds (in particular), the bond forms are drafted by the obligee. For example, an owner (as the obligee) may draft the bond forms that it wants its general contractor’s surety to execute. And, a general contractor (as the obligee) may draft the bond forms that it wants its subcontractors’ sureties to execute. As an obligee, it is always beneficial to draft the bond form (particularly the performance bond) that you want the surety to execute. The bond is to benefit you—the obligee—so having a hand in creating conditions to trigger the application of the bond is important, specifically when it comes to triggering a performance bond upon the bond-principal’s default. Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Subcontractors Found Liable to Reimburse Insurer Defense Costs in Equitable Subrogation Action

August 03, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Pulte Home Corp. v. CBR Electric, Inc. (No. E068353, filed 6/10/20), a California appeals court reversed the denial of an equitable subrogation claim for reimbursement of defense costs from contractually obligated subcontractors to a defending insurer, finding that all of the elements for equitable subrogation were met, and the equities tipped in favor of the insurer. After defending the general contractor, Pulte, in two construction defect actions as an additional insured on a subcontractor’s policy, St. Paul sought reimbursement of defense costs solely on an equitable subrogation theory against six subcontractors that had worked on the underlying construction projects, and whose subcontracts required them to defend Pulte in suits related to their work. After a bench trial, the trial court denied St. Paul’s claim, concluding that St. Paul had not demonstrated that it was fair to shift all of the defense costs to the subcontractors because their failure to defend Pulte had not caused the homeowners to bring the construction defect actions. The appeals court reversed, holding that the trial court misconstrued the law governing equitable subrogation. Because the relevant facts were not in dispute, the appeals court reviewed the case de novo and found that the trial court committed error in its denial of reimbursement for the defense fees. The appeals court found two errors: First, the trial court incorrectly concluded that equitable subrogation requires shifting of the entire loss. Second, the trial court applied a faulty causation analysis – that because the non-defending subcontractors had not caused the homeowners to sue Pulte, thereby necessitating a defense, St. Paul could not meet the elements of equitable subrogation. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Tishman Construction Admits Cheating Trade Center Clients

December 17, 2015 — Erik Larson – Bloomberg
Tishman Construction Corp., builder of One World Trade Center in New York’s financial district, admitted to an overbilling scheme spanning a decade and agreed to pay $20 million in restitution and penalties. The scam included the World Trade Center project, the renovation of the landmark Plaza Hotel on 5th Avenue and the expansion of the Javits Convention Center in Manhattan, the U.S. Attorney’s Office in Brooklyn, New York, said Thursday. Read the court decision
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Reprinted courtesy of Erik Larson, Bloomberg

Developer Boymelgreen Forced to Hand Over Financial Records for 15 Broad Street

September 24, 2014 — Beverley BevenFlorez-CDJ STAFF
The Manhattan Supreme Court “denied a last-ditch effort by Jeshayahu Boymelgreen to avoid handing over financial records as part of a state investigation into the development of 15 Broad Street in the Financial District,” according to The Real Deal. Attorney General Eric Schneiderman had ordered Boymelgreen to turn over the records. Futhermore, according to court records (as reported in The Real Deal), “the developer was also seeking to reduce the amount of money required to fund a $470,000 escrow account to make repairs at the condo — known as Downtown by Starck — which Boymelgreen jointly developed with Africa Israel.” “We’re glad to see that the courts are rejecting Boymelgreen’s arguments why he shouldn’t be required to maintain an escrow account as security for the sponsor to obtain a permanent certificate of occupancy for 15 Broad, as was set forth in the very offering he participated in with Africa Israel,” Steven Sladkus, attorney for unit owners at the condo, stated. “Accountability is one step closer to the light at the end of the tunnel.” Brian Itzkowitz, an attorney representing Boymelgreen, did not return The Real Deal’s calls or emails. Read the court decision
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How Berger’s Peer Review Role Figures In Potential Bridge Collapse Settlement

August 26, 2019 — Richard Korman - Engineering News-Record
As negotiations near a conclusion for a settlement with victims of last year’s fatal Florida International University bridge collapse, the role of the Louis Berger Group as peer review consultant is proving crucial. Attorneys for families of the six people who were killed and survivors say Berger is the last defendant that has not agreed to terms in lawsuits in state court in Miami against the companies that designed and built the bridge. Read the court decision
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Reprinted courtesy of Richard Korman, ENR
Mr. Korman may be contacted at kormanr@enr.com

Client Alert: California’s Unfair Competition Law (B&P §17200) Preempted by Federal Workplace Safety Law

September 24, 2014 — R. Bryan Martin, Yvette Davis, & Kristian Moriarty - Haight Brown & Bonesteel LLP
In Solus Industrial Innovations LLC v. Superior Court (No. G047661, filed 9/22/2014) (“Solus”) the California Court of Appeal, Fourth Appellate District, held California’s Unfair Competition Law (Business & Professions Code §17200) is preempted by the federal Occupational Safety and Health Act of 1970 (“Fed/OSHA”) because the Unfair Competition law, as approved by the United States Secretary of Labor, does not include any provision for civil enforcement of workplace safety standards by a state prosecutor through a complaint for penalties. Solus Industrial Innovations, LLC (“Solus”) is a plastics manufacturer. In 2007, Solus installed a residential water heater at its commercial facility in Orange County. The water heater exploded in March 2009, killing two workers. California’s Division of Occupational Safety and Health (“Cal/OSHA”) investigated and determined the explosion was caused by a failed safety valve and lack of any proper safety feature on the water heater. Cal/OSHA charged Solus with five violations of Title 8 of the California Code of Regulations. Because deaths were involved, Cal/OSHA forwarded the results of its investigation to the Orange County District Attorney. In March 2012, the Orange County District Attorney filed criminal charges against Solus’ plant manager and maintenance supervisor. The District Attorney also filed a civil action against Solus, including two causes of action for violation of California Business & Professions Code §17200 – the Unfair Competition Law (“UCL”). The action sought civil penalties under the UCL in the amount of $2,500 per day, per employee, from November 29, 2007 through March 19, 2009. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin, Yvette Davis and Kristian Moriarty Mr. Martin may be contacted at bmartin@hbblaw.com Ms. Davis may be contacted at ydavis@hbblaw.com Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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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

Seventh Circuit Confirms Additional Insured's Coverage for Alleged Construction Defects

August 10, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Seventh Circuit held that the underlying complaint alleged an occurrence by asserting that the painting subcontractor was negligent in causing damage to the building. Westfield Ins. Co. v. Nat'l Decorating Serv., Inc., 2017 U.S. App. LEXIS 12516 (7th Cir. July 13, 2017). McHugh Construction, the general contractor for construction of a 24 story condominium building in Chicago, retained National Decorating Service, Inc. as a subcontractor to perform all of the painting work. This meant National Decorating would paint the exterior of the building with a protective coating that was a waterproof sealant. After completion, the building's board of managers sued McHugh, National Decorating, and others for damages resulting from faulty workmanship. The third amended complaint alleged: (1) significant cracking of the exterior concrete walls, interior walls, and ceilings; (2) significant leakage through the exterior concrete walls, balconies, and windows; (3) defects to the common elements of the building; and (4) damage to the interior ceilings, floors, interior painting, drywall, and furniture in the units. 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

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES