Fairfield Connecticut Building Expert Directory

Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
The West Virginia Supreme Court previously held that construction defects were not covered under a CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V. June 18, 2013). The underlying complaint against the general contractor alleged various defects in the plaintiff’s recently constructed house, including an uneven concrete floor, water infiltration through the roof and chimney joint, a sagging support beam, and numerous cracks in the drywall walls and partitions throughout the house. Erie Insurance denied coverage. The insured general contractor sued, but the trial court found that faulty workmanship was not sufficient to give rise to an “occurrence.” The West Virginia Supreme Court reversed its prior rulings determining there was no coverage for construction defects. The court recognized its prior position was in the minority, as is Hawaii's position on coverage for construction defects. See Group Builders Inc. v. Admiral Ins. Co., 123 Haw. 142, 148, 231 P.3d 67, 73 (Haw. Ct. App. 2010). Now joining the majority position, the West Virginia Supreme Court found that defective workmanship causing property damage was an “occurrence” under a CGL policy. Further, the homeowner had demonstrated that she sustained "property damage" as a result of the allegedly defective construction of her home. The trial court also determined that the business risk exclusions barred coverage. Again, the West Virginia Supreme Court disagreed. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Connecting Construction Project Information: Open Technology Databases Improve Project Communication, Collaboration and Visibility

March 14, 2018 — Andy Kayhanfar - InEight
The construction industry has been plagued for decades with projects coming in over budget and behind schedule. There are many reasons this happens, but it ultimately comes down to just one thing – a lack of connected information. Today, gigabytes and even terabytes of data are generated on a project and housed in different systems that do not talk or share information, which creates a closed approach and inhibits collaboration. Data is siloed and only accessible to certain companies, departments or disciplines, which gives each project stakeholder a very limited view into the status of the project as they are making decisions. To be successful, the construction industry needs to free project data from closed systems. There must be a way to give all project stakeholders access to accurate information within the context of how it applies to the overall project that will empower everyone from owners to engineers to contractors to make timely, fully informed decisions that bring projects in on time and within budget. INTRODUCING THE OPEN TECHNOLOGY DATABASE The need for deep visibility into project information across systems and stakeholders has given rise in the construction industry to the open technology database. This approach enables project stakeholders to link the data in their existing software systems and connect that information into one centralized location. Project stakeholders can continue to use and maintain the data in their own systems while still feeding the information to the shared environment, which brings together critical project details, provides context for decisions and makes it easier for all parties to collaborate. Project stakeholders are now able to connect business data related to estimating, cost control, scheduling, contracts, purchasing, accounting and more. This creates a common data set across the project that can be quickly accessed and can easily be put in the hands of project decision makers. Innovative companies are taking this connectivity to a new level. They see the potential to use 3D models beyond simply the design aspects of a project and bring them into the activities of construction. Innovators are taking all the project information available in the shared environment and connecting it to the 3D model to create a comprehensive view of the project. Read the court decision
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Reprinted courtesy of Andy Kayhanfar, Construction Executive, a Publication of Associated Builders and Contractors. All Rights Reserved

Is the Event You Are Claiming as Unforeseeable Delay Really Unforeseeable?

September 26, 2022 — David Adelstein - Florida Construction Legal Updates
Is the item or event you are claiming as an unforeseeable, excusable delay really unforeseeable? This is not a trick question. Just because your construction contract identifies items or events that constitute unforeseeable, excusable delay does not mean those items can be used as a blanket excuse or crutch for the contractor. That would be unfair. For instance, it is not uncommon for a construction contract to list as unforeseeable, excusable delay the following events or items: “(i) acts of God or of the public enemy, (ii) act of the Government in either its sovereign or contractual capacity, (iii) acts of another Contractor in the performance of a contract with the Government, (iv) fires, (v) floods, (vi) epidemics, (vii) quarantine restrictions, (viii) strikes, (ix) freight embargoes, (x) unusually severe weather, or (xi) delays of subcontractors or suppliers at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the Contractor and the subcontractors or suppliers.” See, e.g., F.A.R. 52.249-10(b)(1). While the itemization of excusable delay may be worded differently, the point is there may be a listing as to what items or events constitute excusable delay. An excusable delay would justify additional time and, potentially, compensation to the contractor. 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

U.K. Construction Growth Unexpectedly Accelerated in January

February 05, 2015 — Tom Beardsworth – Bloomberg
(Bloomberg) -- U.K. construction growth unexpectedly accelerated last month as housing strengthened and civil engineering bounced back from a contraction. Markit Economics said its Purchasing Managers’ Index rose to 59.1 from 57.6 in December. A reading above 50 indicates expansion. Economists forecast the gauge would fall to 57, according to the median estimate in a Bloomberg News survey. Read the court decision
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Reprinted courtesy of Tom Beardsworth, Bloomberg
Mr. Beardsworth may be contacted at tbeardsworth@bloomberg.net

What Happens When a Secured Creditor Files a Late Claim in an Equity Receivership?

September 28, 2017 — Ben Reeves - Snell & Wilmer Real Estate Litigation Blog
Pitting a receivership court’s inherent equitable powers against pre-existing property rights can lead to some pretty interesting questions. In SEC v. Wells Fargo Bank, N.A., 848 F.3d 1339, 1343-44 (11th Cir. 2017), the Eleventh Circuit recently examined whether a district court’s inherent authority to establish a claims submission process allowed the court to extinguish a security interest in real property based solely upon an untimely proof of claim. Much to the relief of secured creditors, the Eleventh Circuit held that the district court erred, as a matter of law, by extinguishing the creditor’s pre-existing property rights under those circumstances. Introduction Equity vests a district court with “‘broad powers and wide discretion to determine relief in an equity receivership.’” Wells Fargo, 848 F.3d at 1343-44 (quoting SEC v. Elliot, 953 F.2d 1560, 1566 (11th Cir. 1992)). These powers include: (i) establishing procedures for the submission of claims to a receiver, and (ii) setting a claims bar date. Id. at 1344 (citing SEC v. Tipco, Inc., 554 F.2d 710, 711 (5th Cir. 1977)). Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com

Toll Brothers to Acquire Shapell for $1.6 Billion

November 08, 2013 — CDJ STAFF
Toll Brothers is purchasing the home-building business of Shapell Industries for $1.6 billion. This will increase Toll Brother’s presence in California, where it has been building homes since 1994. After the acquisition, Toll Brothers will have about 9,200 lots in California, while it currently has about 4,000. Toll Brothers is not purchasing the commercial development arm of Shapell. Read the court decision
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Rancosky Adopts Terletsky: Pennsylvania Supreme Court Sets Standard for Statutory Bad Faith Claims

September 28, 2017 — John Anooshian & Sean Mahoney - White & Williams LLP
Earlier today, in a case of first impression, the Pennsylvania Supreme Court adopted the Terletsky two-part test for proving a statutory “bad faith” claim under 42 Pa. C.S.A. § 8371, which requires that a plaintiff present “clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Rancosky v. Washington National Insurance Company, No. 28 WAP 2016 (Pa. Sept. 28, 2017). The court further ruled that proof of an insurer’s “subjective motive of self-interest or ill-will,” while potentially probative of the second prong of the test, is not a requirement to prevail under § 8371. Evidence of an insurer’s “knowledge or reckless disregard for its lack of a reasonable basis” for denying a claim alone, according to the court, is sufficient even in cases seeking punitive damages. Reprinted courtesy of John Anooshian, Saxe Doernberger & Vita, P.C. and Sean Mahoney, Saxe Doernberger & Vita, P.C. Mr. Anooshian may be contacted at anooshianj@whiteandwilliams.com Mr. Mahoney may be contacted at majoneys@whiteandwilliams.com Read the court decision
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Real Estate & Construction News Round-Up (08/24/22) – Local Law 97, Clean Energy, and IRA Tax Credits

September 26, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up features the intersection of real estate and energy efficiency, including state efforts surrounding clean energy legislation, Inflation Reduction Act tax credits, hotel & hospitality sectors creating sustainable initiatives to reduce carbon emissions, and more.

In New York City, building owners try to figure out how to pay for upgrades needed to comply with regulations outlined in Local Law 97 that are intended to fight climate change. (Jane Margolies, The New York Times)
Maryland, Massachusetts, and New York approve clean energy legislation, enacting laws to promote electric vehicles as well as wind and solar energy. (ACEEE)
The Inflation Reduction Act (IRA), signed into law by President Biden this week, includes expanded tax credits expected to pivot building owners and property developers to make upgrades geared towards energy efficiency. (Jack Rogers, Globe St.)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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