FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Suing the Lowest Bidder on Public Construction Projects

September 17, 2015 — Craig Martin – Construction Contractor Advisor
The California Court of Appeals has allowed the second lowest bidders on public construction projects to sue the lowest bidder where it appears that the lowest bidder was only the lowest because it paid its employees less than the established prevailing wage. This is a novel theory for recovery, but may provide for an opportunity to challenge improperly low bids. Background Between 2009 and 2012, American Asphalt outbid two asphalt companies on 23 public works projects, totaling nearly $15 million. The two asphalt companies sued American Asphalt alleging that they were the second lowest bidder all 23 construction projects and they would have been the lowest had American Asphalt paid its employees the required prevailing wage. Importantly, the municipality awarding the contracts was not sued by the second lowest bidders. Instead, the second lowest bidders alleged that American Asphalt intentionally interfered with a business expectancy and sought damages from American Asphalt, specifically the profit that they lost by not performing these contracts. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Lost Rental Income not a Construction Defect

November 27, 2013 — CDJ STAFF
A judge in Colorado has ruled that although the homeowner’s policy excluded construction defects from coverage, lost rental income and the cost of deck repair involved in fixing a defective drainage system were. Read the court decision
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Benefits to Insureds Under Property Insurance Policy – Concurrent Cause Doctrine

December 08, 2016 — David Adelstein – Florida Construction Legal Updates
The Florida Supreme Court in Sebo v. American Home Assurance Co., Inc., 41 Fla. L. Weekly S582a (Fla. 2016) gave really good news to claimants seeking recovery under a first-party all-risk property insurance policy. The Court held that the concurrent cause doctrine and not the efficient proximate cause doctrine was the proper theory of recovery to apply when multiple perils—an excluded peril and a covered peril-combined to create a property loss. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

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$109-Million Renovation Begins on LA's Willowbrook/Rosa Parks Station

October 02, 2018 — Greg Aragon - Engineering News-Record
The Los Angeles County Metropolitan Transportation Authority (Metro), along with the Los Angeles office of Stantec, recently began work on the $109-million Willowbrook/Rosa Parks Station Improvement Project in Los Angeles. Read the court decision
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Reprinted courtesy of Greg Aragon, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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Want to Use Drones in Your Construction Project? FAA Has Just Made It Easier.

March 01, 2017 — Masaki J. Yamada – Ahlers & Cressman PLLC
The new Part 107 FAA Rules took effect on Monday, August 29, 2016. Unlike the previous requirements for flying a drone commercially, the new rules are much more simplistic and permissive of a broad amount of commercial drone usage. The following is the basic knowledge you need to legally use a drone on your future projects. To fly a drone commercially, there are now four major requirements:

• You must be at least sixteen years old;
• You must register your drone online;
• You must pass an aviation knowledge test administered at an FAA-approved testing center; and
• You must pass review by the Transportation Security Administration.

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Reprinted courtesy of Masaki J. Yamada, Ahlers & Cressman PLLC
Mr. Yamada may be contacted at myamada@ac-lawyers.com

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Brown Paint Doesn’t Cover Up Construction Defects

April 25, 2012 — CDJ STAFF

In a decision that describes the case as illustrating “the perils that real estate brokers and their agents assume when acting as a dual listing agent to both the buyers and sellers of the same house,” the California Court of Appeals has issued a decision in William L. Lyon & Associates v. The Superior Court of Placer County. Lyon & Associates sought summary judgment to dismiss the claims of the Henleys who bought a home in a transaction where a Lyon agent represented both sides.



The prior owners of the home, the Costas, had used a Lyon agent in purchasing their home. When they later sought to sell it, that agent “became aware of some of the house’s defects and problems.” In response, the Costas sought the help of another agent, Connie Gidal, also of Lyons & Associates. Photos taken in the presence of Ms. Gidal show defects of the paint and stucco. The Costas also took the step of painting the house dark brown. During the sale process, “rain caused many of the painted-over defects to reappear.” The Costas “purchased more dark brown paint and covered up the newly visible damage prior to inspection by the Henleys.”



With the damage concealed, the Henleys bought the home in May 2006. The agreement with Lyons & Associates noted that “a dual agent is obligated to disclose known facts materially affecting the value or desirability of the property to both parties.” Escrow closed on May 9, 2006. The contract with the broker included a two-year limit on the time to bring legal action.



The Henleys moved in during June 2006, and “began to discover construction defects that had been concealed by the Costas.” In addition to the painted-over stucco problems, the Henleys found that the Costas had “installed quartzite stone overlays on the backyard steps in a manner that caused water intrusion on the house’s stucco walls.”



In May 2009, the Henleys sued the Costas, Ron McKim Construction, Lyons & Associates, and Ms. Gidal. Their complaint alleged that Lyons & Associates had committed breach of contact, negligence, fraud, breach of fiduciary duty, and negligent nondisclosure in connection with the construction defects. The Costas named Lyons in a cross complaint. Lyons moved for summary judgments on the grounds that the two-year statute of limitations had expired before the complaint and cross-complaint were filed. Both the Henleys and the Costas opposed this claim. The court denied the motion and Lyons appealed.



The appeals court upheld the denial, noting that the both California Supreme Court decision and later action by the legislature compels real estate brokers and salespersons “to conduct a reasonably competent and diligent visual inspection of the property offered for sale.” The court noted that under California law, brokers have responsibilities to both sellers and buyers. The section of law cited by Lyons applies to seller’s agents. The court rejected the contention by Lyons that they were “cooperating brokers.” The Henleys were “not constrained by the two-year statute of limitations.”



Lyons contended that even if California’s statute did not apply, there was a contractual limit of two years. The court also rejected this, agreeing with the Henleys that “the two-year limitation period must be extended by the discovery rule.”



The court noted that “Lyon & Associates may not reap the benefit of a shortened contractual limitation period when its own alleged malfeasance contributed to the delay in the discovery of the buyer’s injury.” The court found that the Henleys could proceed with their breach of contract claim, because, “when a breach of contract is committed in secret, such as the intentional nondisclosure of a real estate broker regarding a previously visible construction defect, the contractual limitations period is properly held subject to the discovery rule.” The court felt that the interpretation favored by the California Association of Realtors would “halve the applicable statute of limitations period.”



In addition to rejecting Lyon request for summary judgment on the claims made by the Henleys, the court also rejected the request of summary judgment on the claims made by the Costas, concluding that neither claim is time-barred. Costs were awarded to both the Henleys and Costas.



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Luxury-Apartment Boom Favors D.C.’s Millennial Renters

August 27, 2014 — Heather Perlberg – Bloomberg
Mandy Johnson was priced out of Virginia Square Towers, a luxury-apartment building rising across the Potomac River from Washington, D.C., where about $3,000 a month would bring perks such as a swimming pool, yoga studio and a game room with virtual golf and zombie dodge ball. Less than 24 hours after declining to sign the contract in June, she got an e-mail from a leasing manager offering two months’ free rent. That brought the monthly payment down for Johnson and her roommate by about $450 over the term of the lease and put the place within reach. “The building is still under construction, so we have to deal with that part, but we are also able to have this brand new apartment for the same price as one in older buildings, so we went for the shiny object,” said Johnson, 28, who works at a nonprofit that gives scholarships to military families. Read the court decision
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Reprinted courtesy of Heather Perlberg, Bloomberg
Ms. Perlberg may be contacted at hperlberg@bloomberg.net

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HVAC System Collapses Over Pool at Gaylord Rockies Resort Colorado

June 12, 2023 — Jennifer Seward - Engineering News-Record
The collapse May 6 of the HVAC system above an indoor pool at the Gaylord Rockies Resort near Denver sent six people to local hospitals, two with life-threatening injuries. An estimated 50 to 100 people were in the water or on the pool deck as pieces of the system fell into the pool and hot tub. Reprinted courtesy of Jennifer Seward, Engineering News-Record Ms. Seward may be contacted at sewardj@enr.com Read the full story... Read the court decision
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