FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction is the Fastest Growing Industry in California

May 20, 2015 — Garret Murai – California Construction Law Blog
We wrote earlier about why construction workers are the happiest employees on Earth, and pointed to one possible factor: That construction, which was one of the hardest hit industries during the 2008 real estate collapse, has since bounced back. This past month, the California Employment Development Department (“EDD”) released data putting some numbers to that hypothesis. And the result: According to the EDD, over the past 12 months, construction was the fastest growing industry in California, adding more than 46,000 jobs within the last year, an increase of 6.9% from 667,000 workers in March 2014 to 713,000 workers in March 2015. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Court of Appeal Puts the “Equity” in Equitable Subrogation

October 05, 2020 — Garret Murai - California Construction Law Blog
Subrogation as a concept is well understood in insurance circles. According to the Institute of Risk Management Institute’s glossary of insurance terms subrogation is “the assignment to an insurer by the terms of [a] policy or by law, after payment of a loss, of the rights fo the insured to recover the amount of the loss from one legally liable for it.” In other words, if an insurer comes out of pocket for something someone else broke, the insurer can turn to that responsible party for reimbursement of its out of pocket costs. Typically, subrogation is, as stated in IRMI’s glossary of insurance terms, a matter of contract and the rights and responsibilities of parties are set forth within the terms of a policy. However, subrogation may, as stated in IRMI’s glossary, also be matter of law. And this is where equitable subrogation comes in. “Equitable subrogation,” according to IRMI, is “the right of subrogation granted under common law when one party has made a payment on behalf of another and becomes entitled to whatever recovery rights the other party has against a responsible third party.” Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Slump in U.S. Housing Starts Led by Multifamily: Economy

September 24, 2014 — Jeanna Smialek – Bloomberg
Housing starts slumped in August from the highest level in almost seven years, reflecting a setback in multifamily projects that are at the forefront of the rebound in U.S. real estate. Beginning home construction fell 14.4 percent, the most since April 2013, to a 956,000 annualized rate following July’s revised 1.12 million pace that was the strongest since November 2007, the Commerce Department said today in Washington. Work on apartments and condominiums, which tends to be volatile, dropped 31.7 percent after jumping 44.9 percent in July. As more Americans decide that homeownership isn’t for them because wage growth is slow and qualifying for mortgages remains difficult, builders have focused on putting up more rental units, which means the industry will see bigger swings month to month. The average number of multifamily units started over the past 12 months was the most since 2006. Read the court decision
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Reprinted courtesy of Jeanna Smialek, Bloomberg
Ms. Smialek may be contacted at jsmialek1@bloomberg.net

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The Trend in the Economic Loss Rule in Construction Defect Litigation

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Heather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.” Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.” Read the court decision
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Reprinted courtesy of

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Insured's Complaint for Breach of Contract and Bad Faith Adequately Pleads Consequential Damages

March 27, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court overturned the trial court's dismissal of the insured's complaint seeking consequential damages. D.K. Prop. Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh v, Pa., 2019 N.Y. App. Div. LEXIS 329 (N.Y. App. Div. Jan. 17, 2019). The insured's building began to shift and exhibit structural damage, including cracks, after construction began in an adjoining building. The insured submitted a claim under its commercial insurance policy. The insurer did not pay the claim, nor did it disclaim coverage. The insured sued, alleging breach of contract for failure to pay covered losses under the policy. The second cause of action was for breach of the implied covenant of good faith and fair dealing. The complaint also requested consequential damages in connection with each cause of action. The trial court granted the insurer's motion to dismiss the claim for consequential damages. 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

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Account for the Imposition of Material Tariffs in your Construction Contract

March 28, 2018 — David Adelstein – Florida Construction Legal Updates
After Hurricane Irma, I wrote an article that contractors should revisit the force majeure provisions in their construction contracts. Not later. But Now. The force majeure provision is an important provision in a construction contract to account for certain uncertainties that you have NO control over. Recently, another reason has given rise to contractors needing to revisit their force majeure provisions, as well as any provisions dealing with material escalations. Not later. But now. The imposition of raw steel and aluminum tariffs (tax on imported goods) and the back-and-forth regarding a potential trade war leads to the kind of uncertainty that should be assessed as a risk. A risk in both time and cost from material escalations. 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

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Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?

September 19, 2022 — William L. Porter - Porter Law Group
It is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes. California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Stacking of Service Interruption and Contingent Business Interruption Coverages Permitted

December 10, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court found that stacking of interruption coverages was allowed based up the language of the policy. Lion Oil Co. v. Nat'l Union Fire Ins. Co., 2015 U.S. Dist. LEXIS 148261 (W.D. Ark. Nov. 2, 2015). The insured's oil line was ruptured, causing an interruption of crude oil delivery service. The insured held policies issued by National Union. The policies included multiple time element extensions. One extension related to Service Interruption which promised to insure against loss for:

Service Interruption: electrical, steam, gas, water, sewer, incoming or outgoing voice, data, or video, or an other utility or service transmission lines and related plants, substations and equipment situated on or outside of the premises.

Both parties agreed that the service interruption provision was unambiguous and that the court should give effect to the plain language of the policy. 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

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