FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New York Considers Amendments to Construction Industry Wage Laws that Would Impose Significant Burden Upon Contractors

August 04, 2021 — Richard W. Brown & Michael D. Angotti - Saxe Doernberger & Vita, P.C.
A bill that would amend the the wage and hour requirements of the New York Labor Law was recently passed by the New York State Legislature and is expected to be signed by Governor Cuomo. Bill Number S2766C (the “Bill”) is intended to protect construction workers against wage theft. However, it places a heavy burden on contractors to police the payroll practices of its downstream subcontractors and exposes them to potentially significant liability for the wage and hour violations of their subcontractors. The proposed Bill would make a contractor or upstream subcontractor jointly and severally liable for any wages owed to employees of their subcontractors. The Bill allows for a private right of action for such subcontractor’s employee (or such employee’s representative) to bring a civil or administrative action seeking payment of unpaid wages owed pursuant to Section 198 of the New York Labor Law. In such an action against a subcontractor for unpaid wages, the contractor or upstream subcontractor is not only jointly and severally liable for any unpaid wages, but also for the prevailing claimant’s reasonable attorney fees, prejudgment interest, and, absent a good faith defense, liquidated damages equal to the amount of the wages owed. Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C. and Michael D. Angotti, Saxe Doernberger & Vita, P.C. Mr. Brown may be contacted at RBrown@sdvlaw.com Mr. Angotti may be contacted at MAngotti@sdvlaw.com Read the court decision
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Up in Smoke - 5th Circuit Finds No Coverage for Hydrochloric Acid Spill Based on Pollution Exclusion

October 19, 2020 — Kerianne E. Kane & David G. Jordan - Saxe Doernberger & Vita
The Fifth Circuit Court of Appeals recently held that an insurer was not obligated to pay damages associated with a hydrochloric acid spill based on a pollution exclusion in the policy. In Burroughs Diesel, Inc. v. Travelers Indemnity Co. of America,1 a trucking company sued its property insurer, Travelers Indemnity Company of America (“Travelers”) when it refused to pay a claim for a storage tank leak which resulted in over 5,000 gallons of hydrochloric acid entering the property and causing significant damage to buildings, vehicles, tools, and equipment. The acid was initially dispensed in liquid form, but quickly became a cloud that engulfed the property. Travelers denied coverage for the claim based on the pollution exclusion because “acids” fell within the policy’s definition of “pollutants.” The trucking company sued Travelers in the United States District Court for the Southern District of Mississippi, alleging breach of contract and breach of good faith and fair dealing for refusing to pay the claim. The trucking company argued that coverage was warranted because there is an exception to the pollution exclusion if “the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the ‘specified causes of loss,’” and the hydrochloric acid cloud was a form of “smoke,” which is a specified cause of loss covered by the policy. The District Court entered summary judgment in favor of Travelers, finding that the trucking company failed to demonstrate that an exception to the pollution exclusion applied. The trucking company appealed to the Fifth Circuit Court of Appeals. Reprinted courtesy of Kerianne E. Kane, Saxe Doernberger & Vita and David G. Jordan, Saxe Doernberger & Vita Ms. Kane may be contacted at kek@sdvlaw.com Mr. Jordan may be contacted at dgj@sdvlaw.com Read the court decision
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How Robotics Can Improve Construction and Demolition Waste Sorting

September 11, 2023 — Emily Newton - Construction Executive
Commercial construction projects generate a lot of waste. Managing this debris is crucial to minimizing the industry’s environmental impact, but it’s often a time-consuming and error-prone process. Robotic waste sorting provides a better alternative. Why C&D Waste Management Must Improve The current state of construction and demolition (C&D) debris management leaves considerable room for improvement. Nearly all C&D waste takes decades to break down in landfills—and the sector generates hundreds of millions of tons of it annually. More efficient debris management would help firms protect the environment and their bottom line. Poor waste management practices also take an economic toll. Recycling extends materials’ useful life, helping minimize resource costs. Inefficient waste sorting may additionally lead to unnecessarily high workforce expenses and incur lost business from firms’ lack of sustainability. Reprinted courtesy of Emily Newton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Back Posting with Thoughts on Lien Waivers

May 20, 2015 — Christopher G. Hill – Construction Law Musings
After a week of being unable to post due to the rigors of my solo construction practice, I’m back on the blogging train. For those of you that missed my new musings this past week, I hope that you had a chance to look through some of the past Guest Post Friday posts for some good stuff to read. During the course of my busy week last week, a question came up regarding the mechanic’s lien waivers that commercial construction companies routinely execute as part of the payment process. The waiver forms vary, but each essentially states that in exchange for payment the payee, whether a subcontractor or supplier (or even general contractor) waives its future rights to record a mechanic’s lien for the work that is covered by the payment received. Most if not all of these forms further require a certification that the funds paid will either be used to pay suppliers or that suppliers have already been paid. This general description is not the reason for this post. As is always the case in the Commonwealth of Virginia where the contract is king and a court is unlikely to reinterpret any written contractual document, the devil is in how that waiver is worded. Some waivers are worded in such a way that they essentially require a payee to certify receipt of the funds prior to payment being received. These same forms require the same pre-payment certification that all suppliers and subcontractors of the payee have already been paid. In short they require a payee to both place complete trust in the payor that the check will be paid and that the check will not bounce while in many cases (often with an unstated “wink and nod”) claiming payment was already made when all know the likelihood is that it has not. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Utah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical Reports

November 19, 2021 — Kyle Rice - The Subrogation Specialist
The Supreme Court of Utah recently found that an incorrect pre-construction geotechnical engineering report is a “defective design.” Thus, actions arising from an incorrect geotechnical report are appropriately governed by Utah’s Economic Loss Statute (Statute), Utah Code Ann. § 78B-4-513(1). Hayes v. Intermountain GeoEnvironmental Servs. No. 20190764, 2021 UT 62, 2021 Utah Lexis 144, arose out of a suit filed by homeowners Kim and Nancy Hayes (the Hayeses). The Hayeses’ home was part of the Quail Hollow subdivision in Layton, Utah, which was developed by K.C. Halls Construction, Inc. (K.C. Halls). Prior to construction, K.C. Halls contracted with Intermountain GeoEnvironmental Services, Inc. (IGES) for a geotechnical report of the planned development to comply with the requirements of Layton City. The report found that “the subject site is suitable for the proposed construction” and made recommendations to ensure foundational integrity for future construction. The Hayeses ultimately purchased a lot from an agent for K.C. Halls and hired Bob Stevenson (Stevenson) to construct the home. About 14 months after the completion of construction, the Hayeses noticed cracking in their foundation walls. Read the court decision
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Reprinted courtesy of Kyle Rice, White and Williams
Mr. Rice may be contacted at ricek@whiteandwilliams.com

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How the California and Maui Wildfires Will Affect Future Construction Projects

October 30, 2023 — Susan Doering - Construction Executive
Just like any kind of fire, wildfires are caused by the presence of fuel and a spark. In the case of the 2017 fires in the wine country of California, along with the state's 2018 Camp Fire, the fuel was dry leaf litter, branches and downed trees. And the spark, in some cases, resulted from electric utility lines and, in other cases, due to contractor’s work. More recently, this summer's Maui fires have taken hundreds of lives—deceased and missing—and burned more than 2,500 acres. Lahaina’s historic sites cannot be replaced, and estimates of the rebuild costs are near $5 billion. In Hawaii, the fuel was the same as in California: dried forest debris. It is alleged that the spark was from a powerline downed by extreme winds from Hurricane Dora. While sparks were present, it is the increased volume of fuel that has been the true source of the disastrous recent wildfires. The increased presence of fuel is the result of recent changes in forestry-management practices, coupled with accelerated climatic shifts in recent years toward hotter, drier weather from 2011 to 2020 in California and 2022 to 2023 in Maui, increasing both frequency and severity. Reprinted courtesy of Susan Doering, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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San Francisco Office Secures Defense Verdict in Legal Malpractice Action

November 25, 2024 — Lewis Brisbois Newsroom
San Francisco, Calif. (October 31, 2024) - After a ten-day jury trial in San Francisco Superior Court, Partner Alex Graft recently secured a defense verdict in a legal malpractice action arising out of underlying litigation with the claimants’ homeowners association. The claimants alleged his client attorneys negligently advised them that the terms of the settlement agreement would result in the creation of a so-called independent board of directors for the homeowners association. It did not come to fruition. After the attorneys withdrew, they sued for their outstanding fees, which elicited a cross-complaint alleging malpractice, breach of fiduciary duty, breach of contract and negligent misrepresentation. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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PAGA Right of Action Not Applicable to Construction Workers Under Collective Bargaining Agreement

December 26, 2022 — Garret Murai - California Construction Law Blog
California is one of the most employee-friendly states in the country. From strict hiring laws (don’t think about asking about an applicant’s criminal, credit or even salary history), to generous benefits (minimum wage, overtime, meal and rest breaks, family medical leave, etc.) and strict anti-harassment laws (if you have to think about it, even for a second, don’t do it), to protections for terminated workers (whistle blower protections, WARN notices, non-compete restrictions), California workers enjoy protections that many others do not. This includes PAGA, or the Private Attorneys General Act, which authorizes aggrieved employees to file lawsuits against their employers to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. In general, the right of an employee to file a PAGA action cannot be waived by contract. However, Labor Code section 2699.6 which was enacted in 2018 provides an exception for construction workers who perform work under certain collective bargaining agreements. In the next case, Oswald v. Murray Plumbing and heating Corporation, 82 Cal.App.5th 938 (2022), the 2nd District Court of Appeal examined whether collective bargaining agreement with a retroactive date, signed after an employee was terminated, precluded an employee from bringing a PAGA action. 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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