Cambridge Massachusetts Building Expert Directory

Avoid Delay or Get Ready to Pay: The Risks of “Time-Is-of-The-Essence” Clauses

August 29, 2018 — Stephen Orlando - Gordon & Rees Construction Law Blog
Like death and taxes, construction delays are inevitable. Even the most cautious, diligent contractor may face subcontractor disputes, supply shortages, or inclement weather which slows down a project. Even if the contractor avoids unexpected problems, the sheer complexity of a job may cause a contractor to exceed the deadlines proposed in a contract. Fortunately, courts recognize the practical reality of construction projects and the unavoidable delays which may arise. Therefore, as a general rule, a contractor is only liable for delayed completion of a project if the delay resulted from the contractor’s unreasonable performance of his or her work. Reasonable performance will typically serve as a defense to a claim of delayed completion. This defense is a vital asset when a contractor surpasses the project’s expected timeframe. Read the court decision
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Reprinted courtesy of Stephen Orlando, Gordon & Rees Scully Mansukhani

Landlord Duties of Repair and Covenant of Quiet Enjoyment

February 10, 2020 — Lawrence S. Glosser - Ahlers Cressman & Sleight PLLC
A recent case from Division I Washington Court of Appeals addressed both a landlord’s duties of repair and maintenance and the Covenant of Quiet Enjoyment in commercial leases. Votiv, Inc. v. Bay Vista Owner LLC, No. 78289-4-I, 2019 WL 4419446 (Wash. Ct. App., Sept. 16, 2019). The Plaintiff in that case leased an office space in a mixed-use residential/office/commercial building in Seattle. Although the ownership groups of the various portions of the building were each separate, the entire building was managed by defendant Bay Vista Owner LLC (“BVO”), that was also the Plaintiff’s landlord. There was a need to replace a deteriorating roof membrane to repair water intrusion into the building. The work involved significant demolition on the roof surface over the premises that Votiv, Inc. (“Votiv”), a music/media company, leased on the top floor. The repair work was done primarily during business hours causing significant disturbance to Votiv’s business operations. Votiv sued BVO and other defendants for, among other things, nuisance, breach of lease, constructive eviction, and breach of the covenant of quiet enjoyment. The trial court denied Votiv’s claim for injunctive relief and granted summary judgment to the Defendants. Read the court decision
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Reprinted courtesy of Lawrence S. Glosser, Ahlers Cressman & Sleight PLLC
Mr. Glosser may be contacted at larry.glosser@acslawyers.com

Guardrail Maker Defrauded U.S. of $175 Million and Created Hazard, Jury Says

October 22, 2014 — Patrick G. Lee – Bloomberg
Secret changes by Trinity Industries Inc. to its guardrail systems were found to have cheated the U.S. government, exposing the company to $1 billion in damages and penalties and sending shares plummeting as states question the safety of the product. The east Texas jury’s verdict comes as scrutiny of the highway-safety product called the ET-Plus intensifies across the country after it’s been blamed for multiple deaths. The Federal Highway Administration this month asked all states to start submitting information on crashes involving the ET-Plus to the agency’s safety office. The agency will evaluate the findings of the case and “consider whether it affects the continued eligibility of the ET-Plus,” Brian Farber, a spokesman for the Department of Transportation, said in an e-mail. Read the court decision
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Reprinted courtesy of Patrick G. Lee, Bloomberg
Mr. Lee may be contacted at plee315@bloomberg.net

Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear” Damages

March 14, 2022 — Blake A. Dillion, Jared De Jong & Scott S. Thomas - Payne & Fears
Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue there is no coverage for so-called “tear-out” or “rip-and-tear” damages, where fixing property damage requires replacing defective work that has not itself been damaged. Fortunately, in a newly decided case, a Texas federal district court rejected both arguments by an insurer. Amerisure Mutual Insurance Company v. McMillin Texas Homes, LLC, No. SA-20-CV-01332-XR, 2022 WL 686727 (W.D. Tex. Mar. 8, 2022). As with most construction-defect claims, this case involved homeowner claims against a residential developer, McMillin Texas Homes (“McMillin”). After the homes were completed, homeowners complained about defects in the artificial stucco exterior finish and filed suit. McMillin tendered to its insurer, Amerisure Mutual Insurance Company (“Amerisure”). Amerisure then sued McMillin for declaratory relief, arguing that it had no duty to defend or indemnify the homeowner claims. McMillin filed a counterclaim alleging Amerisure breached its policies by refusing to defend or indemnify McMillin. Reprinted courtesy of Blake A. Dillion, Payne & Fears, Jared De Jong, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Dillion may be contacted at bad@paynefears.com Mr. De Jong may be contacted at jdj@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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Court of Appeals Rules that HOA Lien is not Spurious, Despite Claim that Annexation was Invalid

March 27, 2019 — Jesse Howard Witt - The Witt Law Firm
Today, the Colorado Court of appeals reversed a order that had deemed a homeowner association’s lien to be spurious. The case arose after a developer approved a property owner’s application to annex additional real estate to a community in 1999. Several years later, the developer repurchased the property through a foreclosure sale. Despite its prior approval of the annexation, the developer refused to pay community maintenance assessments, which prompted the association to record a lien under its covenants and a statutory provision of the Colorado Common Interest Ownership Act (CCIOA). The parties remained in a standoff until 2016, when the Colorado Supreme Court announced two decisions that adopted a stricter standard for annexing property into communities subject to CCIOA. Relying on this new authority, the developer at Stroh Ranch argued that the 1999 annexation was no longer valid. The district court agreed and declared the association’s lien to be spurious. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Mr. Witt may be contacted at www.witt.law Read the full story... Read the court decision
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Canadian Developer Faces Charges After Massive Fire on Construction Site

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
A fire leveled an apartment construction site in Canada last December, which resulted in almost two dozen charges relating to fire safety precautions and lack of cooperation with the Ministry of Labour’s investigation, according to CKWS TV. The Ministry of Labour has recently “laid 22 charges against three individuals and two companies—Jay Patry Enterprises Inc. and Steimach Property Management Inc.” CKWS TV reported that “[c]harges include failing to provide adequate space for workers to evacuate during an emergency, failing to protect the health and safety of workers and failing to inspect every fire extinguisher for defects or deterioration.” Jason Patry, Nathan Patry and Troy Stelmach have been charged with “obstructing and providing false information to a ministry of labour inspector, as well as failing to make the inspection process an easy one.” Read the court decision
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July Sees Big Drop in Home Sales

August 27, 2013 — CDJ STAFF
The Commerce Department reported a 13.9 percent drop in sale of new homes for July. Over the course of the last 12 months, home sales had risen 7 percent. According to economists, an annual rate of about 700,000 homes would be a sign of a healthy economy. The July sales fell well short of that, at an annual rate of 394,000. New home starts were also down. Experts attribute the decline in sales and building to increases in mortgage rates, even though the rates remain historically low. Despite the slump in home sales in July, builder confidence rose to a high in August. Read the court decision
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Thanks for the Super Lawyers Nod for 2019!

May 20, 2019 — Christopher G. Hill - Construction Law Musings
It is with humility and a sense of accomplishment that I announce that I have been selected for the third straight year to the Virginia Super Lawyers in the Construction Litigation category for 2019. Add this to my recent election to the Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer elected lists. So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the 5% of Virginia attorneys that made this list for 2019. The full lists of Virginia Super Lawyers will appear in the May edition of Richmond Magazine. Please check it out. 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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