FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Is Your Design Professional Construction Contract too Friendly? (Law Note)

July 09, 2014 — Melissa Dewey Brumback – Construction Law North Carolina
My husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly Grocery.” [Sign] No *Loitering*Littering*Alcoholic Beverages on Premises*Bike*Skateboard* *10 minutes Parking Limit*Towing Enforced* I’m not sure which is the “friendly” part of that sign. In fact, the sign seems to be the antithesis of friendly. What does this have to do with your construction contracts? Sometimes, in an effort to please the client and/or secure the project, architects and engineers have the habit of being too friendly in their contract language. That is, you make promises or proposals that may promise too much of a good thing for the client. This can cause big problems. Bigger than being towed away from a rural grocery store in the middle of nowhere. You could be putting your insurance coverage at risk. Have you ever promised to use “best efforts” in your design or plans? Promised to design to a specific LEED standard? Guaranteed 100% satisfaction? You might be putting your errors & omission coverage at issue. By warrantying or guaranteeing something, you are assuming a level of liability well beyond the standard of care required by law. By law, you only need to conform to the standard of care, and your insurance will only provide coverage up to that standard of care. In other words, if you make guarantees or promise “best efforts,” you are contracting to something that will *not* be insured. If something goes wrong, you will be without the benefit of your professional liability coverage. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback may be contacted at mbrumback@rl-law.com

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Medical Center Builder Sues Contracting Agent, Citing Costly Delays

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The Pennsylvania firm Bedwell Co. “has sued the Camden County Improvement Authority, saying it is owed $4.6 million for construction of [the Cooper Medical School of Rowan University]” in Camden, New Jersey, according to the Courier-Post. The Bedwell Co. alleges that its expenses exceeded fifty million, “but that it has been paid only $46 million.” The lawsuit states, as quoted by the Courier-Post, “From its inception, the project was plagued by delays due to defects in the design document and other circumstances that were beyond Bedwell’s control.” Furthermore, there were “an abnormally large quantity of design changes, schedule disputes, schedule disruptions and work-activity interference.” “Representatives of the CCIA and HDR could not be reached for comment Wednesday,” according to the Courier-Post. “Bedwell declined to comment on the allegations in the suit.” Read the court decision
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Up in Smoke - 5th Circuit Finds No Coverage for Hydrochloric Acid Spill Based on Pollution Exclusion

October 19, 2020 — Kerianne E. Kane & David G. Jordan - Saxe Doernberger & Vita
The Fifth Circuit Court of Appeals recently held that an insurer was not obligated to pay damages associated with a hydrochloric acid spill based on a pollution exclusion in the policy. In Burroughs Diesel, Inc. v. Travelers Indemnity Co. of America,1 a trucking company sued its property insurer, Travelers Indemnity Company of America (“Travelers”) when it refused to pay a claim for a storage tank leak which resulted in over 5,000 gallons of hydrochloric acid entering the property and causing significant damage to buildings, vehicles, tools, and equipment. The acid was initially dispensed in liquid form, but quickly became a cloud that engulfed the property. Travelers denied coverage for the claim based on the pollution exclusion because “acids” fell within the policy’s definition of “pollutants.” The trucking company sued Travelers in the United States District Court for the Southern District of Mississippi, alleging breach of contract and breach of good faith and fair dealing for refusing to pay the claim. The trucking company argued that coverage was warranted because there is an exception to the pollution exclusion if “the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the ‘specified causes of loss,’” and the hydrochloric acid cloud was a form of “smoke,” which is a specified cause of loss covered by the policy. The District Court entered summary judgment in favor of Travelers, finding that the trucking company failed to demonstrate that an exception to the pollution exclusion applied. The trucking company appealed to the Fifth Circuit Court of Appeals. Reprinted courtesy of Kerianne E. Kane, Saxe Doernberger & Vita and David G. Jordan, Saxe Doernberger & Vita Ms. Kane may be contacted at kek@sdvlaw.com Mr. Jordan may be contacted at dgj@sdvlaw.com Read the court decision
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Philadelphia Enacts Commercial Property Assessed Clean Energy (C-PACE) Program

October 21, 2019 — Timothy Davis & Willliam Johnston - White and Williams LLP
On August 14, 2019, Mayor Jim Kenney signed a bill authorizing, through C-PACE loans, the financing of clean energy, alternative energy and water conservation projects for eligible commercial properties in Philadelphia. Philadelphia City Council unanimously voted to approve the C-PACE program on June 20, 2019. The program will be administered by the Philadelphia Energy Authority. Third-party capital providers (not the Philadelphia Energy Authority) will originate C-PACE financings for qualified projects. C-PACE “assessments” will encumber the applicable property in a first lien position akin to a real estate tax. Documentation among the property owner, the City of Philadelphia, and the third party capital provider (identified in the ordinance as the “financial institution”) will provide, among other things, that the assessments will be payable and fully amortize over the term of the financing (i.e., 30 years) and will not be accelerated during its term. Importantly, before a C-PACE financing can be originated and the underlying property assessed, notice of the property owner’s desire to secure C-PACE financing under the program must be provided to the holder of a mortgage on the subject property and the holder of the mortgage must provide the property owner and the City of Philadelphia with its written consent. Without the mortgage lender’s consent, the C-PACE financing cannot be consummated. Reprinted courtesy of Timothy Davis, White and Williams LLP and William Johnston, White and Williams LLP Mr. Davis may be contacted at davist@whiteandwilliams.com Mr. Johnston may be contacted at johnstonw@whiteandwilliams.com Read the court decision
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After Breaching Its Duty to Defend, Insurer Must Pay Market Rates for Defense Counsel

October 30, 2023 — Tred R. Eyerly - Insurance Law Hawaii
After breaching its duty to defend, the insurer could not take advantage of a California statute allowing insurers to establish rates for defense counsel. S. Cal. Edison Co. v. Greenwich Ins. Co., 2023 U.S. Dist. LEXIS 151695 (C.D. Cal. July 28, 2023). Edison was an additional insured under a policy issued by Greenwich Insurance Company to Utility Tree Service, Inc. (UTS). UTS contracted with Edison to provide vegetation management services near Edison's transmission lines. The Greenwich policy provided additional insured coverage to third parties to the extent of UTS's obligations under the contract. Edison was sued in numerous lawsuits for property damage caused by the Bobcat wildfire in the Angeles National Forest (Bobcat Wildfire lawsuits). Edison tendered the defense in each lawsuit to Greenwich. Coverage was denied, however, based on a lack of underlying allegations or extrinsic evidence that Edison's liability resulted from UTS's negligent actions. 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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Revised Cause Identified for London's Wobbling Millennium Bridge After Two Decades

December 20, 2021 — Peter Reina - Engineering News-Record
U.S. and British researchers claim to have found a better explanation for the wobble of London's River Thames Millennium pedestrian suspension bridge than the one prevailing for over 20 years. Alarming swaying of the bridge was caused not by synchronization of walkers' footsteps, as previously believed, but the negative damping effect of their efforts not to fall over. Reprinted courtesy of Peter Reina, Engineering News-Record Mr. Reina may be contacted at reina@btinternet.com Read the full story... Read the court decision
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Construction Defect Journal Marks First Anniversary

January 06, 2012 — CDJ STAFF

November 2011 marked the first anniversary of the Construction Defect Journal. During the first year our staff and contributors in the insurance and legal communities have compiled several hundred articles of interest to the construction defect and claims community.

Each of these articles are maintained in the CDJ archives, and are accessible at http://www.constructiondefectjournal.com/archives.html. Each story in the archives is listed in the order it was posted to the archives. Each story in the archives opens up in its own page, so you can easily locate topics and articles of interest.

If you’re new to Construction Defect Journal, or just want peruse past articles, please take a moment to visit the CDJ Archives page. Also please feel encouraged to submit your firm’s articles or legal publications of interest to the CD community at http://www.constructiondefectjournal.com/submitStory.html.

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Subcontractors Aren’t Helpless

July 26, 2017 — Christopher G. Hill - Construction Law Musings
As a construction attorney here in Virginia, I often have the pleasure of assisting subcontractors seeking advice on their all important contracts with general contractors. I often sense that these subcontractors feel that they are at the bottom of the food chain and don’t have the “clout” necessary to push back at all against the myriad clauses in these contracts that seek to push the risk downhill. “Pay if Paid” clauses, subordination of lien clauses (which may or may not be enforceable), indemnification language that seems to make the subcontractor liable for way too much, and the dreaded incorporation clauses , would seem to make the subcontractor hold one big “bag of risk” on any construction project. While this may seem bleak, never fear, as a subcontractor you are not totally helpless. Remember, you don’t have to take a job from a general contractor that you get a bad feeling about. Often the best indicator of whether you want to move forward is your “spidey sense” that something seems a bit off or that the GC is trying to cram too much down your throat. Use your experience in the construction industry to guide your contracting activities. It is better to avoid the bad job than to take it in the long run. If you are a quality subcontractor (and I know you are or you wouldn’t be reading this), other work will come along because general contractors need good subs to get their work done. 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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