Fairfield Connecticut Building Expert Directory

Bond Principal Necessary on a Mechanic’s Lien Claim

September 07, 2020 — Christopher G. Hill - Construction Law Musings
As anyone that reads this construction law blog knows, mechanic’s liens are a big part of the Virginia landscape for a construction attorney like me. One option for dealing with a mechanic’s lien here in Virginia that we have not discussed but so often is the ability to “bond off” a lien. In short, the Virginia statute allows a party to essentially substitute a bond valued at a court set multiple of the principal amount of the mechanic’s lien for the memorandum. In exchange, the lien is released of record. Any enforcement action can still proceed with security for the claimant and the property owner feeling better about things because there will be no lien on the title to the land. In many ways this process provides an easier path to resolution for both owner and claimant. First of all, the claimant does not have to deal with a bank or other interest holders in the property (though a recent case discussed below reminds us that certain other parties are necessary). Second of all, the owner does not have the cloud on the title of a mechanic’s lien that may have been filed by a subcontractor over which he has no control. 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

CDJ’s #4 Topic of the Year: KB Home Greater Los Angeles, Inc. v. The Superior Court of Los Angeles County

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
KB Home, another case that clarified California’s SB 800, was analyzed by Amy Kuo Alexander of Gordon & Rees LLP in her article on “New Developments Related to SB 800.” Read the full story... KB Home was also discussed by Cvitanovic and Stefco of Haight Brown & Bonesteel in their article on Burch. Read the court decision
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Savannah Homeowners Win Sizable Judgment in Mold Case against HVAC Contractor

August 10, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
Two Savannah homeowners filed a complaint against a local air conditioning contractor and its insurer, asserting claims of professional negligence and fraud. The couple alleged that in March 2009, the contractor replaced the duct system of their home’s air conditioning unit. The following June, the couple discovered mold growth on the vent covers. They hired an independent contractor who upon inspection concluded that the duct system, which contained holes, gaps, loose connections and insufficient mastic, had been defectively installed in violation of the applicable city ordinances, resulting in excessive moisture and mold contamination throughout the residence. The homeowners alleged that they grew ill with respiratory problems as a result and were subsequently forced to vacate the residence and abandon their personal belongings. Their complaint sought to recover repair costs, moving costs, expenses associated with rental property, costs of living, costs related to the replacement of personal property, medical expenses, punitive damages, attorney’s fees, and costs of litigation. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

‘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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Alabama Federal Magistrate Recommends Dismissal of Construction Defect Declaratory Judgment Action Due to Expanded Duty to Defend Standard

May 31, 2021 — Anthony L. Miscioscia & Margo Meta - White and Williams
While the starting point for assessing an insurer’s duty to defend requires comparing the allegations contained within a complaint to the language contained within the insured’s policy, the majority of states require an insurer to do more. In Alabama, a failure of the underlying complaint to allege damages falling within the policy’s terms is not necessarily fatal to coverage – if there are facts provable by admissible evidence to place the loss within coverage. The U.S. District Court for the Southern District of Alabama recently examined Alabama’s broadened duty to defend standard in Frankenmuth Mutual Insurance Company v. Gates Builders, No. 20-00596, 2021 U.S. Dist. LEXIS 83645 (S.D. Ala. Apr. 29, 2021). In Frankenmuth, the magistrate judge was tasked with determining whether the court should abstain from hearing an insurer’s declaratory judgment coverage action pending the resolution of the underlying state court action. The underlying state court action arose out of an allegedly defective construction project. Frankenmuth’s insured, Gates Builders, was hired to perform exterior and structural rehabilitation work at the Resort Conference Center Condominium (the Condominium) in Gulf Shores, Alabama. The project began in July 2014 and concluded in June 2015. In 2019, Gates Builders was informed that the Condominium’s decks were sagging. Gates Builders shored up the decks and provided the Condominium with a quote for the cost of repairs. In July 2020, the Condominium’s Association filed suit, alleging that the work performed in 2014 and 2015 was faulty and had caused damage to the Condominium. Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Margo Meta, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Meta may be contacted at metam@whiteandwilliams.com Read the court decision
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Illinois Earns C- on its 2022 Infrastructure Report Card while Making Strides on Roads and Transit

May 02, 2022 — American Society of Civil Engineers
Chicago, Ill. – The Illinois Section of the American Society of Civil Engineers (ASCE) today revealed its 2022 Infrastructure Report Card, giving the state an overall grade of C-. Illinois' civil engineers studied eleven infrastructure categories. Of those eleven, six categories are in mediocre condition, and five categories are in poor condition. The committee representing more than 2,700 civil engineers across Illinois collected and analyzed data and based its grades on eight criteria, including condition, funding, public safety and resilience. As a major hub for our nation's infrastructure, Illinois has taken considerable steps to improving its transportation and infrastructure networks and several major categories showed improvements – notably transit and roads. To view the report card and all eleven categories evaluated, visit https://infrastructurereportcard.org/state-item/Illinois/. ABOUT THE ILLINOIS SECTION OF THE AMERICAN SOCIETY OF CIVIL ENGINEERS Civil engineering experts in their respective fields from the Illinois Section of ASCE, with assistance from the Central Illinois Section, Quad Cities Section, and the St. Louis Section, prepared The Report Card for Illinois' Infrastructure. The Report Card is created to educate and advise our elected officials and citizens on the condition of our State's infrastructure using sound engineering evaluation criteria and to provide recommendations on how to raise the grade. Since 1915, the Illinois Section has represented Civil Engineers in America's engineering hub and the organization recently celebrated its Centennial Anniversary. ASCE provides a platform for our members to mentor, learn and teach, which enables us to serve as stewards of infrastructure in our state, nation and throughout the world. Read the court decision
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Construction Contract Clauses Which Go Bump in the Night – Part 1

November 10, 2016 — Garret Murai – California Construction Law Blog
Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The first in a multi-part series, here are some other important construction contract clauses you may (or may not realize you should) be losing sleep over.

Provision: Incorporation and Flow-Down Provisions

Typical Provision: “The term ‘Contract Documents’ shall include, without limitation, the Prime Contract, drawings, specifications and other agreements between Contractor and Owner, insofar as they relate in any way, directly or indirectly, to Subcontractor’s Work under this Agreement, and are hereby incorporated by reference. Subcontractor agrees to be bound to Contractor in the same manner and to the same extent as Contractor is bound to Owner under the Contract Documents. Where, in the Contract Documents, reference is made to Contractor, and the work and specifications therein pertain to Subcontractor’s trade, craft, or type of work, such work or specifications shall be interpreted to apply to Subcontractor rather than Contractor.”
What it Means: An incorporation provision literally “incorporates” another document or documents into a contract by merely referring to them by title or description and it is not uncommon for a lower-tiered contractor to never see those documents. A flow-down provision requires a lower-tiered contractor to comply with all obligations which a higher-tiered contractor, typically a direct contractor, owes to a higher-tiered party, typically, the owner. The intent of the provision to ensure that a lower-tiered subcontractor has no greater rights against a direct contractor has against the owner.
What You Can Do: Lower-tiered contractors should obtain a copy of all documents to be incorporated into their contract and review them to ensure that they understand the obligations and any limitations to their rights. Lower-tiered contractors should also seek to include language requiring that a higher-tiered contractor assume toward the lower-tiered contractor all obligations and limitations on their rights that the owner assumes toward or is subject to with respect of the general contractor.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Real Estate & Construction News Round-Up (10/27/21)

November 19, 2021 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Commercial real-estate sales surge in the third quarter, blockchain-integrated real estate is poised to span into new sectors, a major home builder is teaming with a Texas startup to create a community of 100 3-D printed homes, and more.

In the not-too-distant future, it is predicted blockchain-integrated real estate will be implemented in sectors beyond payments via digital currency, spanning to automated transactions, smart contracts, and more. (Adam Redolfi, Forbes)
Despite warnings that the COVID-19 pandemic would erode property values, purchases of apartment buildings, life-science labs and industrial properties resulted in commercial sales of more than $193 billion in the quarter, up 19% compared with the same three months in 2019. (Peter Grant, The Wall Street Journal)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES