Fairfield Connecticut Building Expert Directory

Fraud and Construction Contracts- Like Oil and Water?

December 31, 2014 — Christopher G. Hill – Construction Law Musings
We have discussed the interaction of fraud and breach of contract actions on occasion here at Construction Law Musings. In most cases the two do not mix. Between the economic loss rule and the general desire of Virginia courts to keep contract actions and tort actions separate, most of the time it is impossible to make a fraud action relating to a contract stick in a construction context. The Virginia Supreme Court recently confirmed this fraud/contract distinction. As discussed in the Virginia Real Estate Land Use & Construction Law blog (Thanks Heidi!), Station No. 2, LLC v. Lynch, et. al. strongly re-states the Virginia courts’ strong reluctance to allow a breach of contract turn into a claim for fraud. Without re-iterating the great discussion of the facts of the case found in the post by Heidi Meizner, suffice it to say that certain contractual promises between and among the parties were not fulfilled much to Station 2, LLC’s detriment. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Pennsylvania Supreme Court Reaffirms Validity of Statutory Employer Defense

March 31, 2014 — Michelle Coburn and Michael Jervis – White and Williams LLP
In Patton v. Worthington Associates, Inc., the Pennsylvania Supreme Court reaffirmed the continuing validity of the longstanding statutory employer doctrine and related five-part test of McDonald v. Levinson Steel Co. In doing so, the court overruled the Superior Court and held that Worthington was immune from tort liability as the statutory employer of plaintiff Earl Patton. Worthington was the general contractor for a project to construct an addition to a church. Worthington subcontracted with Patton Construction, Inc. to perform carpentry work. Earl Patton was an employee and the sole owner of Patton Construction, Inc. He was injured in a scissor lift accident while performing work on the church. Patton sued Worthington alleging failure to maintain safe conditions at the worksite. After a trial, a jury awarded Patton and his wife a little more than $1.5 million in damages. Before trial, Worthington had moved for summary judgment arguing that it was Patton’s statutory employer and thus immune from tort liability under Pennsylvania’s Workers’ Compensation Act. Under that law, general contractors are secondarily liable for payment of workers’ compensation benefits to employees of subcontractors. Like traditional employers, statutory employers are immune from tort liability for work-related injuries in situations where they are secondarily liable for workers’ compensation payments. Reprinted courtesy of Michelle Coburn, White and Williams LLP and Michael Jervis, White and Williams LLP Ms. Coburn may be contacted at coburnm@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com Read the court decision
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Wyncrest Commons: Commonly Used Progress Payments in Construction Contracts Do Not Render Them Installment Contracts

December 11, 2023 — Benjamin J. Hochberg - Peckar & Abramson, P.C.
In BIL-JIM Construction Company, Inc. v. Wyncrest Commons, LP, 2023 WL 7276637 (Unpublished, decided November 3, 2023), the New Jersey Appellate Division was asked to consider two issues regarding the interpretation and application of a construction contract that utilized the standard form American Institute of Architects owner/contractor agreement (AIA Document A101-2007) (the “AIA Contract”). Specifically, it was asked to consider: 1) whether a modified AIA Contract was an “installment contract,” whereby each progress payment was subject to its own statute of limitations; and 2) whether and when work had been approved in the context of New Jersey’s Municipal Land Use Law. While the decision is presently unpublished, it provides guidance as to how form contracts utilizing the same or similar terms will be treated by New Jersey’s courts and is a reminder that the potential for future claims must be considered during contract negotiations. Discussion The primary issue in Wyncrest was whether an AIA Contract was an “installment contract,” and the remaining issues turned on the resolution of this question. Wyncrest, the owner for the project at issue, did not dispute that its contractor, BIL-JIM Construction Company, Inc., had not been fully paid for work that it had performed in connection with a construction project located in Ocean County, New Jersey. Instead, Wyncrest argued that because its AIA Contract with BIL-JIM required that invoices be presented and paid monthly, it constituted an “installment contract.” As such, older payments would be treated as individual transactions and were time barred by the applicable statute of limitations. The trial court agreed with Wyncrest’s characterization of the AIA Contract as an “installment contract,” and found that BIL-JIM’s invoices were each subject to their own statute of limitations. However, the trial court disagreed with Wyncrest’s argument that BIL-JIM’s claim for retainage—which was submitted at the end of its work at the project—was time barred. Read the court decision
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Reprinted courtesy of Benjamin J. Hochberg, Peckar & Abramson, P.C.
Mr. Hochberg may be contacted at bhochberg@pecklaw.com

Wood Product Rotting in New Energy Efficient Homes

January 13, 2014 — Melissa Zaya-CDJ STAFF
Brad Pitt’s Make It Right Foundation may be filing a suit against TimberSIL, a wood manufacturer, as reported by WRAL. The foundation built 100 new homes in the 9th Ward of New Orleans after Hurricane Katrina, and used the TimberSIL wood in 30 of the homes for decks and stairs. Make It Right spokeswoman Taylor Royle told Richard Thompson of WRAL that they chose TimberSIL because of the absence of chemicals, which will allow the wood to be mulched and composted after it has served its purpose. However, Royle claimed that the wood has begun to rot “despite being guaranteed for 40 years,” according to WRAL. She further alleged that the manufacturer failed to respond to any of the foundation’s attempts to discuss reimbursement of their costs under the forty year product warranty. Read the court decision
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Couple Claims ADA Renovation Lead to Construction Defects

December 30, 2013 — CDJ STAFF
A couple in Mercer County, West Virginia have claimed that the renovations done to their home not only failed to meet the requested ADA standards, but lead to construction defects, as reported by The West Virginia Record. Ray and Sherry Price are suing Lamberts Construction Company of Bluefield, West Virginia, claiming breach of contract and infliction of emotional distress. The couple hired to company to construct a bathroom addition, a bedroom addition, and a new driveway. In addition to other damages, they are also seeking the cost to repair the renovations. Read the court decision
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Home-Building Climate Warms in U.S. as Weather Funk Lifts

May 20, 2015 — Sho Chandra and Steve Matthews – Bloomberg
The surge in April housing starts sends a clear signal that bad weather was the root cause of weak readings in the first quarter. The question now is whether the rebound is strong enough to lift the world’s largest economy. Builders broke ground on 1.14 million homes at an annualized rate last month, the most since November 2007 and up 20.2 percent from March, figures from the Commerce Department showed Tuesday in Washington. It was the single-biggest monthly surge since 1991, with both the Northeast and Midwest taking part, clearly showing milder temperatures had a hand. The rebound in home building is shaping up to be large enough to make a meaningful contribution to economic growth this quarter. Nonetheless, because residential construction accounts for less than 4 percent of the economy, it would take big gains to make up for what’s likely to be sustained weakness in manufacturing caused by slowing exports and cuts in business investment by the energy industry. Reprinted courtesy of Sho Chandra, Bloomberg and Steve Matthews, Bloomberg Read the court decision
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OSHA Launches Program to Combat Trenching Accidents

October 16, 2018 — Tom Ichniowski – Engineering News-Record
In the wake of a recent rise in fatal trenching cave-ins, the federal Occupational Safety and Health Administration has begun a targeted education and enforcement program to try to reverse the trend. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Construction Jobs Keep Rising, with April Gain of 33,000

June 10, 2019 — Tom Ichniowski - Engineering News-Record
The construction employment picture continues to brighten, as the industry gained 33,000 jobs in April and its jobless rate improved, the federal Bureau of Labor Statistics has reported. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

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