Fairfield Connecticut Building Expert Directory

Death, Taxes and Attorneys’ Fees in Construction Disputes

July 18, 2022 — Garret Murai - California Construction Law Blog
According to Benjamin Franklin there are two certainties in this world: Death and taxes. Let me humbly add a third if you’re ever involved in non-contingency civil litigation: Attorneys’ fees. As such, when it comes to legal disputes, sophisticated parties know that it’s not just about winning but the cost of winning. While winning is never certain – remember Poor Richard’s proverb above – what is certain is that it will most likely cost you to find out whether you’ve won or lost. That’s why the ability to recover (or at least threaten the recovery of attorneys’ fees – that’s a separate discussion altogether) in litigation and arbitration is so important. A few facts:

According to the National Center for State Courts (NCSC) in their 2013 report, Measuring the Cost of Civil Litigation: Findings From a Survey of Trial Lawyers, the median cost of litigation (i.e., attorneys’ fees) for contract disputes, of which most construction disputes would fall under, was $90,575 from case initiation through post-trial disposition.

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Another Reminder that Your Construction Contract is Only as Good as Those Signing It

December 17, 2024 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, we beat the constant drum that “the contract is king” and “draft a good and well-worded construction contract” consistently. As a Virginia construction attorney, I stand by these statements and fully endorse a well-written construction contract. Such a contract will set expectations and provide the rules for your deal (particularly in the commercial context). Without this solid foundation (yes, I see the potential construction pun), when there are issues on the job site, there will be no baseline for how to resolve those issues. That said, I am also reminded on an almost daily basis that humans interact with these contracts. People negotiate the contracts and are the main forces that drive the success (or failure) of the construction project. Money is involved (often a lot of it) and there can at times be temptations to try and squeeze one last dollar out of the job despite what the contract says. Even the strongest contract cannot act as real-time protection against one party that refuses to comply with the contract and its performance or payment terms. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Bank Window Lawsuit Settles Quietly

October 02, 2013 — CDJ STAFF
The Federal Reserve Bank of St. Louis has filed a motion to dismiss its breach of contract lawsuit over the windows McCarthy Building installed in the bank’s building. The bank alleged that the 498 windows were defective and needed to be replaced at a cost of about $1.5 million. But on September 11, the bank acted to dismiss the suit following a settlement with the defendants. The terms of the settlement was not disclosed. All parties will be covering their own legal costs. Read the court decision
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‘Hallelujah,’ House Finally Approves $1T Infrastructure Funding Package

November 15, 2021 — Tom Ichniowski - Engineering News-Record
After nearly three months in a holding pattern and a long day of back-and-forth negotiations among House Democrats, the chamber approved a sweeping, multi-year infrastructure funding package late on Nov. 5 that will provide an estimated $1 trillion for a wide range of infrastructure categories, including highways, transit, rail, water, power and broadband. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Ensuing Losses From Faulty Workmanship Must be Covered

May 10, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Coverage for damages resulting from faulty workmanship in the construction of an apartment complex was at issue in The Bartram, LLC v. Landmark Am. Ins. Co., 2012 U.S. Dist. LEXIS 44535 (N.D. Fla. March 30, 2012).

The owner of the apartments, Bartram, had primary coverage and three layers of excess coverage. Each contract excluded loss from faulty workmanship. The policies provided, however, "if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage."

Bartram contended water intrusion occurred because of faulty workmanship, which caused damage to the buildings’ exterior and interior finishes, wood sheathing, framing, balcony systems, drywall ceilings and stucco walls. This damage was separate from the work needed to simply fix the faulty workmanship. Therefore, Bartram argued, the ensuing losses that resulted from the water intrusion was covered.

The insurer argued the ensuing loss exception was not applicable if the ensuing loss was directly related to the original excluded loss.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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School Board Settles Construction Defect Suit

October 22, 2013 — CDJ STAFF
The Lafayette Parish School Board has settled a claim that water intrusion was caused by faulty design and construction. The board initially sued the contractor and the design firms, but under Louisiana law, the suit came too late to sue the contractor, so Ratcliff Construction was dropped from the suit. The two design firms, Corne-Lemaire Group, which did the architectural design for the school, and Beaullieu & Associates, which did the engineering, also sought to be removed from the suit due to the statute of limitations, but an appeals court concluded that the law at the time of construction did not allow this. Details of the settlement were not released. Tim Basden, the attorney for the school board acknowledged that “the principal problems were related to construction, but the lawsuit wasn’t filed timely.” According to Basden neither design firm conceded “liability or malpractice of any kind.” Read the court decision
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Georgia Court of Appeals Holds That Insurer Must Defend Oil Company Against Entire Lawsuit

October 07, 2019 — Lawrence J. Bracken II, Michael S. Levine & Alexander D. Russo - Hunton Andrews Kurth
The Georgia Court of Appeals recently affirmed a grant of summary judgment in favor of Mountain Express Oil Company on its breach of contract claim against liability insurer, Southern Trust Insurance Company. Empire Petroleum brought claims against Mountain Express for breach of contract, injunctive relief, and libel or slander, among others. Mountain Express sought a defense to that lawsuit under its insurance policy with Southern Trust. Southern Trust contended that the insurance policy did not cover Empire’s non-libel/slander claims, and therefore reimbursed Mountain Express for only a portion of its attorneys’ fees. After the Empire lawsuit settled, Mountain Express sued Southern Trust for breach of contract and bad faith for failing to pay the remaining defense costs, contending that Southern Trust had a duty to defend the entire lawsuit. The Georgia Court of Appeals affirmed the trial court’s grant of summary judgment to Mountain Express on its breach of contract claim. Citing policy language stating that “[the insurer] will have the right and duty to defend the insured against any ‘suit’ seeking those damages,” the court held that Southern Trust was obligated to defend the entire lawsuit. Specifically, in reaching that conclusion, the court noted that by agreeing to defend any “suit,” not any “claim,” Southern Trust obligated itself to defend the entire lawsuit if any claim could be covered under the policy. Accordingly, Southern Trust breached the policy when it only agreed to defend some of the claims against its insured. Reprinted courtesy of Lawrence J. Bracken II, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Alexander D. Russo, Hunton Andrews Kurth Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Read the court decision
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Bidder Be Thoughtful: The Impacts of Disclaimers in Pre-Bid Reports

August 04, 2021 — Joshua A. Morehouse - ConsensusDocs
When bidding a project, subsurface or latent site conditions that are not immediately apparent can massively impact the costs of performance to general contractors. Were contractors required to bid on projects without any information on pre-existing conditions, they would need either to be assured that any additional costs would be reimbursed by the owner, or to include significant contingencies for subsurface conditions in their bids. For owners, these options result in either increased risk or increased cost—neither of which is particularly palatable. Owners therefore implement several contractual tools to minimize these risks and costs. One of these tools is providing bidders with a report on latent conditions, often called a “geotechnical data report” or “GDR”, but otherwise shifting as much of the subsurface-related risk as possible to the contractor. In theory, these reports permit contractors to appropriately adjust their contingencies for latent conditions, thus saving owners money. However, several independent and thorny issues arise where site reports provided by the owner are either inconsistent with or silent on the actual conditions of a project site. Hence owners often include disclaimers with these reports, such as noting that the report is for “informational purposes only” or that the report is “not part of the contract documents." Read the court decision
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Reprinted courtesy of Joshua A. Morehouse, Peckar & Abramson, P.C.
Mr. Morehouse may be contacted at jmorehouse@pecklaw.com

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