FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Association Bound by Arbitration Provision in Purchase-And-Sale Contracts and Deeds

January 11, 2022 — David Adelstein - Florida Construction Legal Updates
When an association files a lawsuit pertaining to matters of common interest, the lawsuit is typically filed as a class on behalf of the owners that make up the association (i.e., the association’s members). How do you deal with an arbitration provision that is included in an owner’s purchase-and-sale agreement or recorded in the deed? The recent opinion in Lennar Homes, LLC v. Martinique at the Oasis Neighborhood Association, Inc., 47 Fla. L. Weekly D15c (Fla 3rd DCA 2021) dealt with this exact issue with a homeowner’s association ruling that the association was required to arbitrate its latent construction defect claims against the developer (homebuilder). In this case, a community in Miami consisted of 26 townhouse buildings. There was a broad arbitration provision in each owner’s purchase-and-sale agreement that included disputes relating to property damage. Further, with each closing, a special warranty deed was recorded that included a nearly identical arbitration provision. The association became aware of latent defects relating to the exterior walls of the buildings and filed a lawsuit against the developer (homebuilder). The developer moved to compel the dispute to arbitration which was denied by the trial court because there was no specific agreement between the association and the developer that required arbitration and the lawsuit dealt with matters that the association was obligated to maintain. 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

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Differences in Types of Damages Matter

June 22, 2016 — Christopher G. Hill – Construction Law Musings
Over the last 7 and a half years (yes I have been doing this for that long), I have often “mused” on various contractual provisions and their application. Why? Because the contract matters and will be enforced. Provisions like “no damages for delay” and “pay if paid” litter construction contracts and will be enforced if properly drafted. These types of clauses affect whether and what types of damages you as a construction company can collect. Of course, these clauses have their limitations. For instance, and as pointed out by my pal Matt DeVries at his great Best Practices Construction Law blog, not all damages that a subcontractor or general contractor may attribute to coordination or other scheduling related issues are “delay damages” to which a “no damages for delay” clause may apply. 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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Beyond the Flow-Down Clause: Subcontract Provisions That Can Expose General Contractors to Increased Liability and Inconsistent Outcomes

December 10, 2024 — Phillip L. Parham III - ConsensusDocs
Flow-down clauses in construction subcontracts—blanket clauses providing that some or all of the terms and conditions in the prime contract between the general contractor and the property owner apply equally between the subcontractor and general contractor—are an important component to managing risk for a general contractor and reducing the likelihood of disputes with either/both the owner and subcontractor. Put simply, flow-down provisions can provide continuity between the general contractor’s obligations to the owner and the subcontractor’s obligations to the general contractor. Properly drafted, flow-down clauses reduce the general contractor’s risk by ensuring that the subcontractor is legally bound to meet the owner’s objectives for the project in the same way as the general contractor. But relying on blanket flow-down clauses, alone, to protect the general contractor is like a soldier going into battle with nothing but a helmet, leaving significant other areas exposed and unprotected. In other words, a general contractor should look beyond just a singular, blanket flow down of terms to ensure its bases are properly covered. Accordingly, this article goes beyond the blanket flow-down clause and highlights several key subcontract provisions where inconsistent obligations among the subcontractor, general contractor, and owner expose the general contractor to increased liability and inconsistent outcomes. Specifically, this article will examine disputes resolution clauses, liquidating provisions, notice provisions, and termination provisions. However, this article will not provide a deep examination of these clauses, nor does it highlight every potentially relevant clause. Rather, it focuses on these select clauses to highlight important issues associated with flow-down provisions. Read the court decision
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Reprinted courtesy of Phillip L. Parham III, Jones Walker LLP
Mr. Parham may be contacted at pparham@joneswalker.com

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Additional Insured Not Entitled to Coverage for Named Insured's Defective Work

September 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Court of Appeals for the Seventh Circuit determined there was no duty to defend or to indemnify the additional insured for the named insured's defective work. St. Paul Guardian Ins. Co., et al. v. Walsh Construction Co., 99 F. 4th 1035 (7th Cir. 2024). The City of Chicago contracted with Walsh Construction Company to manage the construction of a canopy and curtain wall system at O'Hare International Airport. Walsh entered into a contract with Carlo Steel Corporation, which in turn subcontracted with LB Steel, LLC to fabricate and install steel columns to support the wall and canopy. LB Steel listed Walsh as an additional insured in its commercial general liability policies. LB Steel's insurers were St. Paul, Travelers, and Charter Oak Fire Insurance Company. Several years into the project, the City discovered cracks in the welds of the steel columns and sued Walsh. Walsh, in turn, sued LB Steel under its subcontract. Walsh also asked LB Steel's insurers to defend it in the City's lawsuit, but they refused to do so. Walsh eventually secured a judgment against LB Steel, but LB Steel declared bankruptcy. Walsh then sued LB Steel's insurers to recover the costs of defending against the City's lawsuit and indemnification for any resulting losses. 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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Construction Employers Beware: New, Easier Union Representation Process

October 17, 2023 — Natale V. DiNatale - Robinson+Cole
This week we are pleased to have a guest post by Robinson+Cole Labor Relations Group chair Natale V. DiNatale. The NLRB has reversed decades of precedent and made it far easier for unions to represent employees, including construction employers, without a secret ballot election. Initially, it is important to understand that this new standard applies to traditional “9(a)” relationships, not prehire agreements under 8(f) of the NLRA. While both types of relationships exist in the construction industry, 9(a) relationships require support from a majority of employees, while prehire agreements do not and tend to be project specific. The NLRB’s new standard (announced in Cemex Construction Materials Pacific, LLC, 372 NLRB No. 130 (2023)) emphasizes union authorization cards that are gathered by union officials and union activists who often employ high-pressure tactics to obtain a signature. Employees often sign authorization cards without the benefit of understanding the significance of the cards. Even if they don’t want a union, they may sign because they feel pressured by a coworker, don’t want to offend a colleague, or want to avoid being bothered. Read the court decision
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Reprinted courtesy of Natale V. DiNatale, Robinson+Cole
Mr. DiNatale may be contacted at ndinatale@rc.com

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Calling the Shots

May 03, 2021 — Construction Executive
As of 2019, women accounted for 10% of the total construction workforce. That’s 1.2 million women in the field, sculpting the built environment and calling the shots. A smaller percentage of the industry’s population does not mean less ability to achieve success. According to The National Association of Women in Construction, 44% of women in construction serve in a professional and management capacity. As the pandemic lingers on, sourcing qualified candidates is becoming more difficult, and finding nuanced methods of retaining valuable employees remains at the forefront of modern business. One estimate cites a loss of 600,000 women from the overall U.S. workforce in September 2020. However, data suggest that construction employment for women has remained steady, compared with struggling sectors such as retail and hospitality. Plus, salary disparities are becoming less prominent in the construction sector where, according to NAWIC, women earn 99.1% of what men make, and the female population has seen steady growth since 2012. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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How a 10-Story Wood Building Survived More Than 100 Earthquakes

June 26, 2023 — Todd Woody - Bloomberg
One sunny morning last month, an earthquake jolted northeast San Diego. Minutes later, another temblor hit, causing a 10-story wood building to sway. The quakes, though, were triggered by a computer and the shaking was confined to a 1,000-square-foot platform on which the building — a full-size test model — stood. The structure is the tallest ever subjected to simulated earthquakes on the world’s largest high-performance “shake table,” which uses hydraulic actuators to thrust the steel platform through six degrees of motion to replicate seismic force. The shake-table trials at a University of California at San Diego facility are part of the TallWood Project, an initiative to test the seismic resiliency of high-rise buildings made of mass timber. An engineered wood building material, mass timber is increasingly popular as a more sustainable alternative to carbon-intensive concrete and steel. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

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Homebuilders Offer Hope for U.K. Economy

August 20, 2014 — Mark Gilbert – Bloomberg
The two elements of the U.K. economy that the Bank of England currently finds most worrying are the overheating housing market and the paucity of wage growth. Earnings reports this week from two of the nation's biggest homebuilders make for cheery reading on both counts. Persimmon Plc, the U.K.'s largest homebuilder by market value, said today it completed 6,408 new homes in the first half of the year, a 28 percent increase from the year-earlier period. Bovis Homes Group, which mostly builds what it calls "traditional" family homes in the south of England outside London, said it sold 1,487 new homes in the first six months, a gain of 54 percent. "The government has told us that we need 230,000 new homes per annum, and far be it for us to disagree with that," Bovis Chief Executive Officer David Ritchie said on a conference call. He expects to build about 3,650 homes this year, and reckons that "5,000 to 6,000 homes per annum is a very sensible target for the business." Read the court decision
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Reprinted courtesy of Mark Gilbert, Bloomberg
Mr. Gilbert may be contacted at magilbert@bloomberg.net

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