FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Rhode Island Affirms The Principle That Sureties Must be Provided Notice of Default Before They Can be Held Liable for Principal’s Default

August 21, 2023 — Dennis Cavanaugh & Tasnuva Islam - Construction Law Zone
Most bond forms in use today, including the standard form AIA A312-2010, contain express condition precedents that trigger a surety’s obligations under the bond. Under a performance bond, the bond obligee is required to provide formal notice to the surety that the principal has materially defaulted and that the surety must begin to perform under the terms of the bond. This principle is grounded in the idea that the surety should have an opportunity to address the default and investigate the claim so as to mitigate its own liability. Failure to provide sufficient notice will discharge the surety of its obligations under the bond. Reprinted courtesy of Dennis Cavanaugh, Robinson & Cole LLP and Tasnuva Islam, Robinson & Cole LLP Mr. Cavanaugh may be contacted at dcavanaugh@rc.com Ms. Islam may be contacted at tislam@rc.com Read the court decision
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Consider the Risks Associated with an Exculpatory Clause

November 24, 2019 — David Adelstein - Florida Construction Legal Updates
An exculpatory clause in a contract is a clause aimed at relieving another party from certain liability. A disclaimer and insulation from liability. Obviously, if you are the party relieving the other party from liability, you want to consider this risk including the potential enforceability of this risk if something goes wrong. If you are the party asking for the insulation from liability, you do not want to create an exculpatory provision that disclaims and insulates you of all liability arising from the contract as it may create an illusory effect – that the agreement is nothing but a naked promise on your end because your promise is fully disclaimed and you are insulated from liability if you break your promise. This could result in an unenforceable contract. The validity of such an exculpatory clause was at-issue in Pier 1 Cruise Experts v. Revelex Corp., 2019 WL 3024618 (11thCir. 2019). Although not a construction dispute, the exculpatory clause in this case was with two fairly sophisticated parties and expressly insulated one of the contracting parties from “any…damages regardless of kind or type…whether in contract, tort (including negligence), or otherwise.” Pier 1 Cruise Experts, 2019 WL at *7. This is a powerful exculpatory clause because it could be broadly construed to insulate that party from its own breaches of the contract. In Florida:

[A]n exculpatory clause is enforceable so long as (1) the contracting parties have equal bargaining power and (2) the clause’s provisions are clear and unambiguous. With respect to the latter requirement, ‘the intention to be relieved from liability [must be] made clear and unequivocal and the wording must be so clear and understandable that an ordinary and knowledgeable person will know what he is contracting away.” In the same vein, exculpatory clauses are ‘strictly construed against the party seeking to be relieved of liability.’ Pier 1 Cruise Experts, 2019 WL at *7 (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Philadelphia Voters to Consider Best Value Bid Procurment

May 10, 2017 — Wally Zimolong - Supplemental Conditions
My friend and colleague, Chris McCabe, recently published an opinion piece on Philly.com concerning the May 16 ballot question that asks Philadelphia voters to approve a change in the way Philadelphia awards public contracts. Currently, Philadelphia, like all municipalities in Pennsylvania, uses an objective lowest responsible bidder standard in the award of public contracts. Under this approach, public contracts must be awarded to a bidder that responds to all of the criteria of the request for bids and offers the lowest price. Under this traditional approach the award of public contracts is completely transparent. The May 16 ballot initiative seeks to change this. If approved, Philadelphia could award public contracts using a host of subjective factors. What those factors would be are unknown because the policies are not yet written. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

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Fourteen Years as a Solo!

July 08, 2024 — Christopher G. Hill - Construction Law Musings
I have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks 14 years since my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 14 years without the support of the best wife and family that any construction lawyer could want. Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) started and completed her junior year at N. C. State University and is currently in Idaho working as an intern for Idaho Fish & Game, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and is newly married, and my oldest has bought a home, adopted an adorable golden retriever puppy, and celebrated her third marriage anniversary. Our home in Captiva, Florida has also continued its recovery from Hurricane Ian. Professionally, I’ve had a great year. I am serving as the Vice Chair of the Section Council of the Virginia Bar Association Construction and Public Contracts Law section. I was also honored to be nominated and elected to the Virginia Legal Elite in Construction Law for the 17th straight year and to the Virginia Super Lawyers in Construction Litigation for the 8th year running. I also continued to have the opportunity to teach in various construction-related venues on relevant topics and to help out some of the best clients around. I have also continued to grow my ADR practice, including arbitration and mediation. 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

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Torrey Pines Court Receives Funding for Renovation

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
San Diego Source reported that “CIT Real Estate Finance provided…$60 million…to refinance existing debt and fund the renovations at Torrey Pines Court,” a five-building Class A office campus located in La Jolla, California. The 206,128 square foot complex, which resides on 9.24 acres, is adjacent to the Torrey Pines Golf Course. CIT has funded the project in partnership with Rockwood Capital and The Muller Company. "We are excited to begin renovations that will complete our repositioning of Torrey Pines Court with state-of-the-art office space and amenities,” David Streicher, Partner at Rockwood Capital, stated according to a press release in the Wall Street Journal. “We expect that the renovations, coupled with the project's picturesque setting, will solidify Torrey Pines Court's position as the preferred office destination in the submarket. We thank CIT for working with us to create a sound financing package that will take this project to the next level." Read the full story, San Diego Source... Read the full story, Wall Street Journal... Read the court decision
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Kiewit-Turner Stops Work on VA Project—Now What?

December 31, 2014 — Craig Martin – Construction Contractor Advisor
The Kiewit-Turner joint venture created to build the VA’s hospital near Denver stopped work on December 10 after the Civilian Board of Contract Appeals ruled that the VA breached the contract. Kiewit-Turner claims that the VA owes it over $100 million on the project. And, given the appeals board’s recent ruling entirely against the VA, the claim may get some traction. This project has been plagued with problems from the beginning. One strange aspect of the project is the VA’s apparent unwillingness to incorporate value engineering or require the architects to redesign the project to fit within the budget. The latest budget was $582M, while the latest projections show that the project will cost more than $1 billion to complete. 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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A Good Examination of Fraud, Contract and Negligence Per Se

February 28, 2018 — Christopher G. Hill – Construction Law Musings
I have spoken on several occasions here at Construction Law Musings about the interplay (or lack thereof) between fraud and contract as it relates to construction in Virginia. The general rule is that fraud and contract claims don’t mix and a fraud claim in the face of a contractual one is likely to be dismissed. However, there are exceptions to this rule as there are to just about every legal rule (we construction lawyers would be out of a job without them). A good examination of the interplay between fraud and contract was set out by the Eastern District of Virginia federal court in Zuberi et al v. Hirezi et al. In that case the Zuberis purchased a home from the Hirezis and later filed suit alleging that the Hirezis concealed serious structural defects that made the house uninhabitable and unsellable. Among the many claims by the Zuberis were those fro fraud, fraudulent inducement, constructive fraud, negligence per se, violation of the Virginia Consumer Protection Act, and civil conspiracy. In short, they were out for blood. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Illinois Court Determines Duty to Defend Construction Defect Claims

March 22, 2021 — Tred R. Eyerly - Insurance Law Hawaii
Given the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019). Metropolitan was hired as the general contractor for construction, renovation and demolition at contiguous properties - the 1907 Property, 1909 Property, and 1911 Property. During construction activities, the structures on the 1907 Property and 1909 Property collapsed. The existing structures on the properties were later deemed unsafe and were demolished by the city of Chicago. AIG insured the owner of the buildings and paid over $1.8 million for repairs and associated expenses arising from the collapse. AIG then invoked its rights of subrogation against Metropolitan by filing suit. Metropolitan tendered the suit to its insurer, Lloyd's, who denied coverage and filed for a declaratory judgment. The trial court found the underlying complaint alleged property damage, but not an occurrence. Summary judgment was awarded to Lloyd's. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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