FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

California Rejects Judgments By Confession Pursuant to Civil Code Section 1132

May 08, 2023 — Drew M. Jorgenson & Louis "Dutch" Schotemeyer - Newmeyer Dillion
The Elimination of Judgment by Confession Following in the footsteps of Massachusetts and Florida, California recently updated California Code of Civil Procedure section 1132 which renders judgments by confession unenforceable and inadmissible in any superior court, effective January 1, 2023. The bar is not retroactive, so judgments by confession obtained or entered before January 1, 2023 are still valid. Moving forward, consider the following. What is a Judgment By Confession? A judgment by confession, also known as a confession of judgment or "cognovit" clause, is a mechanism by which a debtor agrees that a creditor may summarily obtain a legal judgment against that debtor and enforce it in the event of the debtor's breach of contract or default. In other words, it is a private admission by a debtor that they are liable for a debt without the need for a trial, and consequently, agree to forfeit very important rights. Most importantly, parties agreeing to such clauses are waiving rights such as the right to notice of the judgment and the right to assert defenses against the creditor or third party's claims. Historically, without any judicial involvement, these types of out-of-court judgments would be enforceable. Reprinted courtesy of Drew M. Jorgenson, Newmeyer Dillion and Louis "Dutch" Schotemeyer, Newmeyer Dillion Mr. Jorgenson may be contacted at drew.jorgenson@ndlf.com Mr. Schotemeyer may be contacted at dutch.schotemeyer@ndlf.com Read the court decision
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Unfinished Building Projects Litter Miami

November 18, 2011 — CDJ STAFF

Buildings born in ambitious development plans that were never brought to completion form a grim reminder of the building bust in Miami, according to an article in the Miami Herald. One project started in 2007 as a residential project, later there were hopes to develop it as a hotel. These plans are ten months old with no work done.

Another project was projected as a 30-story office and commercial tower. Four were built before the project was abandoned. The article describes the site as “squalid.” Another project completed the planned 17 stories, but no work has been done beyond constructing the shell. Once planned as luxury condos, the owner owes more than $30,000 in property taxes.

Each of the three sites profiled in the Miami Herald have become dumping grounds for trash. The building skeletons have also become damaged by the elements. Some abandoned projects have been taken over by homeless people. Businesses near the abandoned properties have been hurt. The buildings also represent failed obligations to subcontractors who have put liens on the properties for work they performed but were never paid for.

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New Jersey School Blames Leaks on Construction Defects, May Sue

January 28, 2013 — CDJ STAFF
The Carlstadt Board of Education recently commissioned a investigation into the water leaks at Carlstadt Public School. The report has not been released in full, but redacted board minutes make reference to "a lack of waterproofing, drainage and clogged or buried weep holes." The investigation is ongoing and the board's business administrator, Pamela Baxley, states that its "ability to recover damages in potential litigation may be impacted should this information be released prior to the conclusion of their investigation." The building in question opened in April 2007, and the leaking began that October. The contractor has fixed leaks, but further leaks have occurred. Read the court decision
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Court Finds That $400 Million Paid Into Abatement Fund Qualifies as “Damages” Under the Insured’s Policies

November 21, 2022 — Lorelie S. Masters & Yaniel Abreu - Hunton Insurance Recovery Blog
In Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, et al., the Court of Appeals for Ohio’s Eighth District reversed the lower court, finding that money paid by the insured into an abatement fund was “damages” as that undefined term was used in the policyholder’s insurance policies. 2022-Ohio-3031, ¶ 1. Sherwin-Williams is a cautionary tale about how insurers may try to narrow the meaning of undefined terms in their insurance policies. The dispute in Sherwin-Williams focused on coverage for $400 million that the policyholder and other defendants were ordered to pay into an abatement fund to be used by California cities and counties to mitigate the hazards caused by lead paint in homes. Id. ¶ 1. Although the underlying litigation proceeded in California, Ohio law governed coverage, which raised issues of first impression in Ohio. Id. Among other things, the insurers argued that the money paid into the abatement fund did not qualify as “damages” under the policies. Id. ¶ 57. The insured argued that, because the insurers did not define “damages” in the policies, the term had to be given its ordinary meaning. Id. ¶ 56. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Construction Defects Checklist

July 18, 2018 — Bremer Whyte Brown & O’Meara
Construction defects have existed since humans first began building structures, and will continue to be an occurrence into the future. For builder developers, contractors, and subcontractors, the specter of construction defects is a constant worry. Construction defect litigation is commonplace and can occur years after the construction project has been completed. This opens up an ongoing channel of risk and liability for construction contractors and project managers that are at risk of litigation far after they have completed a project. In this article, we’ll provide a helpful construction defects checklist that outlines the key avenues of risk and areas where construction defects litigation is most often focused. This checklist can help project managers, contractors, and subcontractors anticipate areas of their projects that may need extra attention or focus in order to ensure that they adhere to relevant local and state construction ordinances. Gaining a greater understanding of what construction defects are can provide insight into how construction litigation can prove beneficial for structure owners or contractors who received substandard work. Many clients may not understand that they have an avenue to seek redress in cases where faulty workmanship may have resulted in economic damages or safety concerns in their home, building, or another construction project. Understanding the scope of what a construction defect is, and the areas that are most commonly litigated is helpful to understand when construction defect litigation is a viable option to pursue redress. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O’Meara

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Re-Thinking the One-Sided Contract: Considerations for a More Balanced Approach to Contracting

November 21, 2022 — William Underwood - ConsensusDocs
Construction projects can be inherently risky – often there are multiple parties (owners, architects, engineers, contractors, subcontractors, consultants, vendors, government officials, sureties, insurers, and many others), unforeseen site conditions, tangled supply chains, acts of God, inadequate funding, site safety matters, and a whole host of other issues that can make even a relatively straight-forward job complex. Parties necessarily want to minimize their individual risk to the greatest extent possible on construction projects. And to do so, they may seek to push as much risk as possible onto the other side through one-sided terms in their construction contract.   But is an entirely one-sided contract the best way to mitigate risk? In many instances, the answer is no. Every contract is different – and many considerations should be taken into account when drafting and negotiating contracts – but entirely one-sided can often have unintended consequences and create risks that otherwise might not exist in a contract that allocates and balances risk more equally across the parties. This article reviews several considerations (although it is not an exhaustive list) for avoiding one-sided contracts, including some of the benefits created through the use of equitable contract clauses. And for context, some examples of one-sided contract clauses include no relief for other contractor/owner-caused delays; no relief for force majeure events; no relief for unforeseen site conditions; and broad form indemnification clauses (i.e. one party assumes the obligation to pay for another party’s liability even if the other party is solely at fault). Again, this is a non-exhaustive list, and many other standard contract provisions can be altered to become one-sided. But the general premise of a “one-sided contract clause” is that it shifts all risk, obligation, and liability to one party. And this article examines why that might not be the best idea.   Read the court decision
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Reprinted courtesy of William Underwood, Jones Walker LLP
Mr. Underwood may be contacted at wunderwood@joneswalker.com

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Fourth Circuit Holds that a Municipal Stormwater Management Assessment is a Fee and Not a Prohibited Railroad Tax

April 22, 2019 — Anthony B. Cavender - Gravel2Gavel
On February 15, the U.S. Court of Appeals for the Fourth Circuit decided Norfolk Southern Railway Co. v. City of Roanoke, et al.; the Chesapeake Bay Foundation was an Intervenor-Defendant. The Fourth Circuit held that a large stormwater management fee (stated to be $417,000.00 for the year 2017) levied by the City of Roanoke against the railroad to assist in the financing of the City’s permitted municipal stormwater management system was a permissible fee and not a discriminatory tax placed on the railroad. The Railroad Revitalization and Regulatory Reform Act of 1976 specifically provides that states and localities may not impose any tax that discriminates against a rail carrier, 49 U.S.C. § 11501. Accordingly, the issue confronting the Fourth Circuit was whether the assessment was fee and not a tax. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Harborside Condo Construction Defect Settlement Moves Forward

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
The Harborside Condominium Owners Association in Bremerton, Washington, “has an agreement to pursue $2.8 million in settlement costs for construction defects,” according to the Kitsap Peninsula Business Journal. Back in March of 2013, the association “filed a list of defects in its lawsuit against Kitsap County Consolidated Housing Authority [Housing Kitsap]” including water issues, drywall and foundation cracks, uneven cabinets, leaking showers and pipes, as well as other issues. Housing Kitsap agreed that the association “has the right to pursue a settlement of $2.8 million from the authority’s contractors and insurance companies.” Marlyn Hawkins, the association’s attorney, stated that they have already received a payment for $840,000 from the insurance company “and will be negotiating or filing suit for the rest of the $2.8 million.” Read the court decision
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