Fairfield Connecticut Building Expert Directory

Is Your Construction Business Feeling the Effects of the Final DBA Rule?

June 04, 2024 — Nathaniel Peniston - Construction Executive
The Biden administration’s final rule “Updating the Davis-Bacon and Related Acts Regulations” took effect on Oct. 23, 2023. In “the first comprehensive regulatory review in nearly 40 years,” the Department of Labor has returned to the definition of “prevailing wage” it used from 1935 to 1983—before Microsoft released the first Windows operating system. Construction industry leaders must be aware that this is the most comprehensive review and overhaul of the act in 40 years; with it, the DOL has attempted to modernize its approach to wage creation and fringe benefit allocation. There are more than 50 procedural changes to the act, which means it is very important for contractors to be aware of wage classifications when bidding, performing work on Davis-Bacon Act projects and using applicable fringe dollars for bona fide benefits. UNDERSTANDING THE CHANGES Some of the critical adjustments included in the final rule that contractors should be aware of include: Wage determination changes during a project: Historically, contractors could rely on the wage determinations used to win a project for the life of the project. However, the final rule now requires the contractor to use current wage determinations when a contract is changed or extended. The DOL “proposed this change because—like a new contract—the exercise of an option requires the incorporation of the most current wage determination.” Reprinted courtesy of Nathaniel Peniston, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Peniston may be contacted at npeniston@fbg.com

Client Alert: Court Settles Conflict between CCP and Rules of Court Regarding Demurrer Deadline Following Amended Complaint

August 20, 2014 — R. Bryan Martin and Kristian B. Moriarty - Haight Brown & Bonesteel LLP
In Carlton v. Dr. Pepper Snapple Group, Inc. (No. E056566, filed 8/14/2014), The Court of Appeal, Fourth Appellate District, held a demurrer was timely filed in compliance with California Code of Civil Procedure (“CCP”) section 471.5, despite being filed after the 10-day filing period prescribed in California Rule of Court 3.1320(j). This case appears to settle the conflict that existed between the CCP and the Rules of Court as to the timing of demurrers following amendments to Complaints. Prior to this case, the validity of Rule of Court 3.1320(j)(2) was unclear as it arguably conflicted with CCP Section 471.5, which requires defendants to “answer” an amended complaint within 30 days after service. At the same time, it was not clear that CCP Section 471.5 applied to amendments after a demurrer had been sustained, and it was even more unclear whether the statutory 30-day period to “answer” an amended complaint foreclosed the shorter 10-day period prescribed under Rule of Court 3.1320(j)(2) for a demurrer or motion to strike. On July 15, 2011, Plaintiff filed a Complaint against Dr. Pepper Snapple Group, Inc. (“Dr. Pepper”) and others. On October 24, 2011, Plaintiff filed a First Amended Complaint (“FAC”). Dr. Pepper demurred to the FAC on various grounds. On January 5, 2012, the trial court sustained the demurrer in part, and overruled it in part. The Court granted Plaintiff 30 days to amend the FAC. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com, Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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Window Installer's Alleged Faulty Workmanship On Many Projects Constitutes Multiple Occurrences

May 10, 2017 — Tred R. Eyerly - Insurance Law Hawaii
Lawsuits filed for recovery due to the faulty design and installation of doors and windows by homeowners across the country were found to allege multiple occurrences. Pella Corp. v. Liberty Mut. Ins. Co., 2017 U.S. Dist. 53631 (C.D. Iowa March 31, 2017). The underlying lawsuits alleged that Pella Corporation's windows were defectively designed, manufactured, or installed, and allowed water intrusion to buildings that resulted in third-party property damage or personal injury. Pella sued Liberty Mutual for declaratory judgment and filed a motion for partial summary judgment to determine how many occurrences the underlying cases presented. Pella sought a determination that each of the 15 underlying cases presented one "occurrence" as the term was defined in the CGL policies issued by Liberty Mutual. Liberty Mutual argued that only three or four occurrences were presented, relying on common fact patterns. Pella argued that there were separate and distinct causes of different injuries and damage and thus, each underlying case constituted a separate occurrence. Liberty Mutual, on the other hand, highlighted language within the definition of "occurrence," which stated that an "occurrence" included "continuous or repeated exposure to the same general harmful conditions." The "substantially the same general harmful conditions" language dictated that the scope of "occurrence" be understood to be broad, such that various instances of damage-causing water intrusion in different times and places constituted "substantially the same general harmful conditions." 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

Ninth Circuit Rules Supreme Court’s Two-Part Test of Implied Certification under the False Claims Act Mandatory

May 13, 2019 — Meredith Thielbahr - Gordon & Rees Construction Law Blog
For those contractors in the government arena, read on. The False Claims Act (“FCA”) was enacted to deter knowingly fraudulent actions by contractors which resulted in a loss of property to the Government. Intent to defraud with resulting financial hardship was required. Contrary to popular misconception, the statute was not designed to punish all false submissions to the Government simply because those submissions, or claims, are later found to be false. The statute’s inclusion of the requisite element of knowledge is consistent with this notion:

A defendant must submit a claim for payment to the Government;
the claim must be false or fraudulent;
the defendant must have known the claim was fraudulent when it was submitted (also known as scienter); and
the claim must have caused the Government to pay out money.

See 31 U.S.C. § 3729(a). Despite these explicit elements (in addition to common law elements of fraud), over the last two decades, contractors have seen ever-expanding theories of FCA recovery presented by qui tam plaintiffs and the Government. For example, under the FCA, the false “claim” evolved over time: the claim no longer needs to be an express false claim (i.e. the truthfulness of the claim is a direct condition of payment); the claim can be “implied” misrepresentation or “half-truth”. Read the court decision
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Reprinted courtesy of Meredith Thielbahr, Gordon & Rees Scully Mansukhani
Ms. Thielbahr may be contacted at mthielbahr@grsm.com

Facebook Posts “Not Relevant” Rules Florida Appeals Court

February 07, 2014 — Beverley BevenFlorez-CDJ STAFF
A Cape Coral, Florida resident is suing the city and construction companies over alleged negligence “for failing to use reasonable care in keeping the construction site safe for pedestrians,” according to News-Press. The lawsuit was filed after a three-year old boy “jumped out of a wagon pulled by his aunt and darted across the construction zone before being” hit and dragged by a vehicle. The boy “suffers neurological problems from the crash.” The defendants wanted to use Facebook posts made by the Plaintiff about the city, contractors, and subcontractors, as evidence. However, the 2nd District Court of Appeals ruled that the Facebook posts were irrelevant to the case. Todd Robert Falzone, the Plaintiff attorney, said that “it’s becoming more common for defense lawyers to try and introduce social media into any case, but the law is new and there isn’t a lot of guidance for lawyers or judges,” according to News-Press. The defendants’ attorneys did not return News-Press’s calls asking for comments. Read the court decision
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Counsel Investigating Coverage Can be Sued for Invasion of Privacy

January 28, 2019 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLP
In Strawn v. Morris, Polich & Purdy (No. A150562, filed 1/4/19), a California appeals court held that policyholders could state a claim for invasion of privacy against an insurer’s coverage counsel and law firm, where the counsel had disseminated inadvertently produced tax returns to forensic accountants while evaluating coverage. In Strawn, a couple’s home was destroyed by fire and the husband was prosecuted for arson, but the criminal case was dropped. Notwithstanding, their insurance claim was denied on the ground that the husband intentionally set the fire and fraudulently concealed his actions. In addition to the insurance company, the insureds also named the carrier’s coverage counsel and his firm in the ensuing bad faith lawsuit, alleging causes of action for elder financial abuse and invasion of privacy. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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The Most Expensive Apartment Listings in New York That Are Not in Manhattan

August 26, 2015 — James Tarmy & Oshrat Carmiel – Bloomberg
Apartments for very wealthy New Yorkers have remained mostly within the city’s smallest borough. Until now. The record price for a Brooklyn home broke the $15 million threshold this summer, and by now it’s widely accepted that New York’s outer boroughs are not much of a bargain, growing further out of reach for the aspiring homeowner. The rush of new construction in gentrifying neighborhoods has pushed up the price of land, and that’s caused construction costs to rise, too. Eventually, to make a profit, developers have to build luxury buildings, according to Jonathan Miller, the president of New York appraiser Miller Samuel. “We have this perfect storm,” he says. “Everybody gets the same idea at the same time, so materials and labor are at a premium. Throw in the high price of land at each locale, and you’ve got to build a luxury product.” Reprinted courtesy of James Tarmy, Bloomberg and Oshrat Carmiel, Bloomberg Read the court decision
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Confidence Among U.S. Homebuilders Declines to Eight-Month Low

March 19, 2015 — Bloomberg News
(Bloomberg) -- Confidence among U.S. homebuilders unexpectedly fell in March to an eight-month low as prospective buyers were in little rush to shop for properties ahead of the busier spring selling season. The National Association of Home Builders/Wells Fargo sentiment gauge dropped to 53 from 55 in February, figures from the Washington-based group showed Monday. The median forecast in a Bloomberg survey called for a gain to 56. Sales of single-family homes declined to a five-month low and builder optimism about the outlook failed to improve, the report also showed. Low mortgage rates and job creation may help spur homebuyer interest in coming months. Read the court decision
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Reprinted courtesy of Bloomberg News
Michelle Jamrisko may be contacted at mjamrisko@bloomberg.net

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