Fairfield Connecticut Building Expert Directory

Construction Litigation Roundup: “Just Hanging Around”

August 14, 2023 — Daniel Lund III - Lexology
A subcontractor asserting a payment bond claim for “standby” time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety. In fact, the duration of the standby time occurred after the surety’s principal, the general contractor, had been placed in default and terminated on the general contract. According to the surety: “After termination of the contract… it is impossible for labor, materials, and equipment to have been furnished for use in performing the terminated contract.” The surety filed a motion for summary judgment. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Illinois Federal Court Determines if Damages Are Too Remote

July 13, 2020 — Lian Skaf - The Subrogation Strategist
Foreseeability is a tort concept that tends to permeate several aspects of legal analysis, often causing confusion in litigants’ interpretation of, and courts’ application of, foreseeability to their cases. In Cincinnati Ins. Co. v. Progress Rail Services. Corp., 2020 U.S. Dist. LEXIS 73967 (C.D. Ill.), the United States District Court for the Central District of Illinois took on the task of analyzing a case dealing with foreseeability issues to determine if the defendant owed the plaintiff a duty and if the damages were so remote as to violate public policy. The court held that since the defendant’s actions contributed to the risk of harm to the plaintiff and the facts satisfied the four-prong duty test, the defendant owed the plaintiff’s subrogor a duty of reasonable care. It also held that the plaintiff’s damage claim did not open the defendant up to liability that would violate public policy. In the case, an employee of defendant Progress Rail Services Corporation (Progress Rail) was operating a crane at Progress Rail’s Galesburg location on May 7, 2018. The employee struck an overhead power line while working, causing a power disruption to nearby businesses. The plaintiff’s subrogor, Midstate Manufacturing Company (Midstate), was one of the affected businesses, reporting that its Amada hydraulic punch was damaged. Midstate submitted a property damage claim to its carrier, Cincinnati Insurance Company (Cincinnati), who reimbursed it under its policy. Subsequent to its payment, Cincinnati filed suit against Progress Rail in Illinois state court. Progress Rail then removed the case to federal court and filed a motion to dismiss. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

Owner Can’t Pursue Statutory Show Cause Complaint to Cancel Lien… Fair Outcome?

June 10, 2024 — David Adelstein - Florida Construction Legal Updates
If there is a payment dispute with a construction lienor — could be a contractor, a subcontractor, or supplier – it is possible, and more than likely, a construction lien may get recorded against real property. This scenario is not uncommon as the lien is the mechanism for the lienor to collateralize their claimed nonpayment. Now, in reality, it does not take much money to record a lien. A lienor should utilize a lawyer to prepare their liens, but maybe they prepare liens in-house. Regardless, the recording of the lien is a nominal cost and the clerk that dockets and records the lien does NOT analyze the merits of the lien. That is not what the clerk is there to do; nor do you really want them the delve into the factual merits. Well, what if a lien is facially invalid, meaning that the lien, on its face, includes information that demonstrates it is NOT properly perfected. Or what if the lienor failed to properly preserve or perfect its lien rights before recording the lien. This happens! Naturally, an owner of the real property wants the lien removed from the property. The owner does not want the encumbrance. The owner could transfer the lien to a lien transfer bond under Florida’s Lien Law, but that is easier said than done. And this does not discharge the lien; it just removes the lien from the property to the security of the bond. 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

Economic Damages Cannot be Based On Speculation

October 16, 2018 — David Adelstein - Florida Construction Legal Updates
Economic damages, unlike non-economic damages (such as those in personal injury disputes), need to rest on a reasonable basis. Economic damages are those routinely seen in a construction dispute. These damages cannot be based on conjecture or guesswork and need to be supported by competent substantial evidence. Otherwise, the economic damages will be deemed too speculative because they are not reasonably quantifiable. I recently discussed a case involving the professional boxer Canelo Alvarez that was sued by a former promoter for unjust enrichment. Although the promoter recovered a jury verdict for unjust enrichment damages against Canelo Alvarez, the verdict was reversed because the methodology utilized by the promoter to demonstrate damages was speculative. This is definitely not what a plaintiff wants to happen after prevailing at the trial level! Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Ex-Construction Firm That Bought a $75m Michelangelo to Delist

January 08, 2019 — Drew Singer - Bloomberg
A Chinese construction firm-turned-art-collector will be delisted from the Nasdaq effective Friday, following a 260 percent run-up in its stock price this fall. Shares in Yulong Eco-Materials Ltd. soared after the company agreed to buy the “Millennium Sapphire” for $50 million in October and a “Crucifixion” painting for $75 million in November. The firm was formerly a “vertically integrated manufacturer of eco-friendly building products located in the city of Pingdingshan in Henan Province, China," according to a company filing. Read the court decision
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Reprinted courtesy of Drew Singer, Bloomberg

Insurance Litigation Roundup: “Post No Bills!”

April 02, 2024 — Daniel Lund III - Lexology
A company which is in the business of posting “advertising signs on temporary construction sites on behalf of clients” was “sued for trespass, conversion, and other torts” when it entered a site to remove posters. The company sought to have its insurance carrier cover the cost of its defense but was refused. A federal court lawsuit in California against the insurer ensued. The insurer prevailed on a Rule 12 motion to dismiss, and the insured appealed. At issue: had an “occurrence” under the CGL policy taken place – that is, an “accident,” an “unexpected, unforeseen, or undesigned happening or consequence from either a known or unknown cause?” The appellate court noted that the company’s contractor “intended” to enter the work site and remove posters, which gave rise to the trespass claim. For its part, the company urged that the contractor’s actions “were based on erroneous information… [a] mistaken belief that it had the right or duty to enter the site and remove the posters….” Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

Acord Certificates of Liability Insurance: What They Don’t Tell You Can Hurt You

June 28, 2013 — David McLain
As anyone involved in construction knows, one of the most heavily used forms for tracking insurance information during the subcontracting phase of a project is the Acord Certificate of Liability Insurance. General contractors often require subcontractors to provide these ubiquitous forms as evidence that the subcontractor maintains adequate insurance or insurance which complies with the requirements of the subcontract. Unfortunately, experience has shown that the Acord forms being used today are insufficient sources of the information needed by the developer and general contractor. Historically, developers and GCs would require Acord forms to ensure that a subcontractor had a CGL insurance policy, with sufficient limits, and which named them as additional insureds. More recently, developers and GCs took the additional step of requiring a confirmation on the Acord forms that they were named as additional insureds for both ongoing and completed operations. This is important because coverage for ongoing operations only provides coverage during the construction process. Once the homes are put to their intended use, developers and GCs must be named as additional insureds for completed operations also in order to avail themselves of the benefits of the policy. Unfortunately, this is where the evolution of the use of the Acord forms ended, resulting in a failure to provide sufficient information to protect developers and GCs from the unknown. My firm has had a rash of recent experience where our clients have not obtained the benefit of additional insured coverage for which they bargained because they relied on Acord forms which failed to provide sufficient information to allow them to protect themselves from insufficient insurance coverage on the part of the subcontractors with which they did business. For example, in one recent case a homeowners association alleged insufficient grading and drainage away from the homes within a development built by one of our clients. In reviewing the insurance information from the construction files, we found the Acord forms from the excavating company that performed all of the grading work around the homes. To our delight, the Acord form listed our client as an additional insured for both ongoing and completed operations. Read the court decision
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Reprinted courtesy of David M. McLain
David M. McLain can be contacted at mclain@hhmrlaw.com

Construction Industry on the Comeback, But It Won’t Be the Same

November 20, 2013 — CDJ STAFF
“The majority of contractors have readjusted and there’s cautious optimism, but there’s a new normal in construction,” Cam Dickinson, senior vice president of the construction group of Woodruff-Sawyer. But he cautioned that “it’s not going to come back like it was in the good old days.” Some places, like the Miami or New York City areas are doing well, although New York City has the perhaps unique advantage of its market. Brian Schofeld, Crystal & Co.’s senior managing director and construction practice leader noted that for one New York City project, “the penthouse went for the full value of the gut renovation and that left the other 17 floors as a profit.” Further signs of life are that “the residential private side is going gangbusters in the Bay Area and downtown San Francisco,” according to Bret Lawrence, vice president of construction for Woodruff-Sawyer, but he notes that “it’s nothing like it was.” Read the court decision
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Reprinted courtesy of

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES