FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Court Voids Settlement Agreement in Construction Defect Case

September 01, 2011 — CDJ STAFF

A U.S. District Court Judge in Florida has ruled in favor of a company that sought to void a settlement agreement. The case, Water v. HDR Engineering, involved claims of construction defects at Florida’s C.W. Bill Young Regional Reservoir. The Tampa Bay Water Authority attributed these to both HDR Engineering’s design and Bernard Construction Company which had built the embankment. Bernard Construction filed a complaint against their subcontractor, McDonald.

Tampa Bay Water settled with Bernard Construction and McDonald, in an agreement that set a minimum and maximum settlement, but also would “prohibit Barnard and McDonald from presenting any evidence on several claims and positions of TBW, to require Barnard to call certain witnesses at trial, to preclude Barnard and McDonald from calling other witnesses, and to restrict the filing of trial and post-trial motions.” HDR Engineering moved to void the agreement as collusive.

The judge that the agreement¬? contained “133 paragraphs of ‘Agreed Facts’ that the parties stipulated would survive any order declaring the Settlement Agreement void or unenforceable.” He characterized these as stipulating “that Barnard neither caused nor contributed to TBW’s damages.” HDR motioned that a summary judgment be given to Barnard Engineering.

The court found that “the evidence identified by TBW is patently insufficient to survive summary judgment.” Further, TBW’s expert initially held Barnard responsible for “lenses, pockets, streaks and layers within the embankment,” but then later withdrew this assigning the responsibility to HDR. Further, the court notes that, “TBW’s arguments that lenses, pockets, streaks, and layers in the soil wedge caused or contributed to its damages and that Barnard is liable for those damages have been foreclosed by the Agreed Facts.”

As TBW failed to provide sufficient evidence to withstand summary judgment, the court granted summary judgment, mooted the claim against McDonald, and terminated the agreement between TBW and the other parties.

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NYC Building Explosion Kills Two After Neighbor Reports Gas Leak

March 12, 2014 — Michelle Kaske and Henry Goldman, Bloomberg
Fifteen minutes after a New York City resident reported the pervasive smell of gas in her East Harlem neighborhood, a massive explosion destroyed two buildings, killing two people and injuring at least 18. Utility workers arrived too late. The explosion at 1644 and 1646 Park Ave., near 116th Street, reported about 9:30 a.m., was heard miles away and turned into a five-alarm fire. Windows were blown out as far as 10 blocks away, and cars across the street were wrecked. The blast sent debris onto adjacent elevated train tracks, halting commuter rail service in and out of Grand Central Terminal. Minor wounds were too numerous to count, said Frank Gribbon, a spokesman for the New York City Fire Department. “This is a tragedy of the worst kind,” Mayor Bill de Blasio said during a news conference near the scene. He said residents are still missing from the buildings, which had a total of 15 units, and crews would search for them when the fire is extinguished. Ms. Kaske may be contacted at mkaske@bloomberg.net; Mr. Goldman may be contacted at hgoldman@bloomberg.net Read the court decision
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The Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

March 17, 2011 — Shaun McParland Baldwin

The Court of Appeals of Indiana recently addressed the “Montrose” language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged. The insuring agreement requires that “bodily injury or “property damage” be caused by an occurrence and that the “bodily injury or “property damage” occur during the policy period. The Montrose language adds that the insurance applies only if, prior to the policy period, no insured knew that the “bodily injury or “property damage” had occurred in whole or in part. Significantly, it also states that any “bodily injury” or “property damage” which occurs during the policy period and was not, prior to the policy period known to have occurred, includes a continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.



In Grange Mutual Cas. Co. v. West Bend Mut. Ins. Co., No. 29D04-0706-PL-1112 (Ct. App. IN March 15, 2011), http://www.ai.org/judiciary/opinions/pdf/03151109ehf.pdf, Sullivan was the General Contractor for a school construction project. Its subcontractor, McCurdy, installed the storm drain pipes. One of the storm pipes was fractured in 2005 while McCurdy was doing its installation work. More than a year later, the school experienced significant water damage due to flooding. It was later discovered that the flooding was due to the fractured storm drain. Sullivanrsquo;s insurer paid $146,403 for the water damage. That insurer brought a subrogation claim against McCurdy and its two insurers: West Bend and Grange. West Bend had issued CGL coverage to McCurdy while the construction was ongoing, including the date in which the storm pipe was fractured. Grange issued CGL coverage to McCurdy at the time of the flooding. Those two carriers jointly settled the subrogation claim and then litigated which insurer actually owed coverage for the loss. Significantly, the loss that was paid included only damages from the flooding, not any damages for the cost of repairing the pipe.



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Reprinted courtesy of Shaun McParland Baldwin of Tressler LLP. Ms Baldwin can be contacted at sbaldwin@tresslerllp.com

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Remodel Gets Pricey for Town

December 30, 2013 — CDJ STAFF
Usually when home gets remodeled, it’s the homeowners who encounter unexpected expenses, but in Clearwater, Florida, it’s the town. Clearview has spent about $40,000 trying to determine if changes to a home are a “substantial improvement,” and the bill could get bigger, according to TBNweekly.com. The home in question, that of David and Aileen Blair, is in a flood zone, and city rules would require the alterations to comply with flood drainage-resistance provisions, but only if it is a “substantial improvement.” The Blairs applied for the remodel permit in April 2001, and it was granted more than 10 years later, in July 2011. Work started soon after until the city put a stop to it. The Blairs sued, claiming that as the city issued the permit, they assumed the plans were approved, and that the partially-completed renovation now diminishes the value of their home. The city has approved an additional $160,000 in outside legal counsel to respond to the Blair’s lawsuit. Read the court decision
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Navigate the New Health and Safety Norm With Construction Technology

August 03, 2020 — Jeremy Larsen - Construction Executive
Safety has always been a pressing issue in construction, and as states reopen and construction projects pick up steam once again, the industry will become even more closely scrutinized than before. Construction safety looks a lot different than it did six months ago. In addition to the concerns around keeping workers safe on construction sites, today’s contractors are faced with a whole new category of risk, and with new health and safety measures that may vary by county, state or region. New requirements range from social distancing and limits on the size of crews, to requiring masks and temperature checks for all workers. OPERATING IN THE NEW NORM This sudden onset of COVID-19 put otherwise healthy businesses into a state of chaos that, months later, is still hard to navigate. By March of 2020, reports indicated that nearly one-third of construction projects had come to a halt. Now, as the industry emerges, balancing business continuity efforts with trying to get crews back to work and jobsites moving again will no doubt present challenges. New health and safety measures, plus the fact that no one wants to touch paper in the field, will add another layer of administrative and procedural oversight to the construction process. Of course, these measures are absolutely needed, but construction businesses can’t ignore the fact that it changes the very way projects and jobsites are managed. And, without the right tools in place, it may be a bumpy ride. Reprinted courtesy of Jeremy Larsen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Larsen may be contacted at jeremy.larsen@viewpoint.com

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Is Construction Defect Litigation a Cause for Lack of Condos in Minneapolis?

September 17, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Peter Callaghan writing for the Minn Post, while multi-family residential real estate is “hot” right now, most developers are building apartments rather than condos. Four developers spoke on the topic during Minneapolis City Council Member Lisa Goodman’s monthly “Lunch with Lisa” program. The developers stated that financing is more difficult for condos than it is for apartments, and millennials and baby boomers seem to prefer renting over buying. However, some developers stated that “the 10-year liability exposure for construction defects” was another reason to avoid condo building. However, not all developers avoid condo building in Minneapolis. Jim Stanton, owner of Shamrock Development, said that he still is building condos. Stanton declared that he “has a good relationship with his lender,” and “he hasn’t been sued a lot and has never had a suit reach court.” Read the court decision
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Pass-Through Subcontractor Claims, Liquidating Agreements, and Avoiding a Two-Front War

April 26, 2021 — Bradley Sands, Jones Walker LLP - ConsensusDocs
Subcontractor claims happen. When those subcontractor claims are prompted by owner actions or responsibilities, the general contractor must always be vigilant to plan for and work to avoid a two-front war in which the general contractor is pushing the owner for recovery while at the same time disputing the subcontractor’s entitlement. Cooperation between the general contractor and the subcontractor and avoiding that two-front war can be accomplished through pass-through claims and ideally liquidating agreements. A pass-through claim is a claim by the subcontractor who has suffered damages by the owner with whom it has no contract, presented by the general contractor. A liquidating agreement or subcontract “liquidating language” goes a step further than simply a pass-through claim by “liquidating” the general contractor’s liability for the subcontractor’s claim and limiting the general contractor’s liability to the value recovered against the owner. The distinction between pass-through claims generally and use of liquidating agreements or language is described in greater detail below. Pass-through subcontractor claims are routine in construction and an important, common sense approach to deal with ever-present changes and the unexpected that can have cost and time implications. Despite the common sense basis for subcontractor pass-through claims, there are important legal considerations that must be addressed, and critical planning required, starting with the subcontract clauses. Read the court decision
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Mr. Sands may be contacted at bsands@joneswalker.com

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Two Firm Members Among the “Best Lawyers in America”

September 01, 2016 — A&C Crew – Ahlers & Cressman PLLC
We are excited to announce that John P. Ahlers has been selected as a “Lawyer of the Year” in Construction Law, and John P. Ahlers and Paul R. Cressman, Jr. have been selected as “Best Lawyers in America” in Construction Litigation by Best Lawyers for 2017. Best Lawyers has recognized Mr. Ahlers and Mr. Cressman as “Best Lawyers in America” since 2007 and 2013, respectively. Read the court decision
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