Fairfield Connecticut Building Expert Directory

Construction Resumes after Defects

June 28, 2013 — CDJ STAFF
When inspectors found defective bolts in the construction of the Media Arts Center at L. A. Mission College, the contractor walked off the job. The project had been underway for about eighteen months. After problems were found with welds and bolts, the contractor informed the school that it could not complete the job. The California Division of the State Architect then required inspection of every weld and joint, leading to a dispute as to who was going to pay for it. At this point, only the first story has been inspected. Although the other two stories must be inspected, the new contractor is about to begin work on the building. James O’Reilly, the executive director for facilities, planning and development, said that “the main focus is on fixing the defective issues and getting construction completed so we can serve the Mission campus.” Still at question is how much SMC Construction received before they walked off the job. Read the court decision
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Forum Selection Provisions Are Not to Be Overlooked…Even On Federal Projects

September 16, 2024 — David Adelstein - Florida Construction Legal Updates
Forum selection provisions are NOT to be overlooked. Ever. Treat them seriously. Even on federal projects where there is a Miller Act payment bond. Consider forum selection provisions on the front end when negotiating your contract. In a recent opinion, U.S. f/u/b/o Timberline Construction Group, LLC vs. Aptim Federal Services, LLC, 2024 WL 3597164 (M.D.Fla. 2024), a joint venture prime contractor was hired by the federal government to build a temporary housing site. The joint venture prime contractor obtained a Miller Act payment bond. The joint venture then entered into a subcontract with one of its joint venture members and the member-subcontractor then engaged a sub-subcontractor. The sub-subcontractor claimed it was owed $3.5 Million and sued the member-subcontractor, as well as the prime contractor’s Miller Act payment bond, in the Middle District of Florida. The member-subcontractor and the Miller Act payment bond sureties moved to transfer venue to the Middle District of Louisiana pursuant to a forum selection clause in the contract between the sub-subcontractor and the member-subcontractor. The contract provided that the exclusive venue would be a United States District Court located in Louisiana. Forum selection provisions are analyzed in federal court under 28 U.S.C. 1404(a): “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” U.S. f/u/b/o Timberline, supra at *2. A forum selection provision is presumptively valid and given controlling weight. Id. (quotations and citations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

CDJ’s Year-End Review: The Top 10 CD Topics of 2014

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Construction Defect Journal’s year-end review presents the top ten most popular topics featured in the journal in 2014. Some of the topics involved analysis of important construction defect cases, while others covered current events such as proposed state legislation. Most issues were heavily discussed on CDJ as well as in board rooms and during teleconferences. We hope you enjoy the look-back at 2014 interspersed throughout the issue, and we wish you and yours a prosperous 2015! CDJ’s #1 Topic of the Year: Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec. 3, 2013) According to Darrin J. McMullen of Anderson Kill, “[t]he Indalex decision reverses a nearly decade-long trend of Pennsylvania decisions narrowing the scope of insurance coverage for construction and defect-related claims under commercial general liability insurance policies. Equally important, the Indalex ruling dealt a blow to the insurance industry’s continual efforts to win overbroad expansion of the rulings in Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Commercial Union Ins. Co., Millers Capital Ins. Co. v. Gambone Bros. Dev. Co., and Erie Ins. Exchange v. Abbott Furnace Co., which found that claims of faulty workmanship in some circumstances may not constitute coverage-triggering ‘occurrences.’” Read the court decision
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Expired Contract Not Revived Due to Sovereign Immunity and the Ex Contractu Clause

October 27, 2016 — Chadd Reynolds and David Cook – Autry, Hanrahan, Hall & Cook, LLP
A few months ago, a decision by the Supreme Court of Georgia in Georgia Department of Labor v. RTT Associates, Inc. provided a strict rule for contractors that work with state agencies to determine whether a state agency has waived its sovereign immunity. The issue as framed by the Court was “whether an agency’s waiver of immunity from a breach of contract claim as a result of entering into a written contract remains intact in the event the contract is extended without a written document signed by both parties expressly amending the contract, as required by its terms.” Reprinted courtesy of David Cook, Autry, Hanrahan, Hall & Cook, LLP and Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP Mr. Cook may be contacted at cook@ahclaw.com Mr. Reynolds may be contacted at reynolds@ahclaw.com Read the court decision
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Insured's Complaint for Breach of Contract and Bad Faith Adequately Pleads Consequential Damages

March 27, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court overturned the trial court's dismissal of the insured's complaint seeking consequential damages. D.K. Prop. Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh v, Pa., 2019 N.Y. App. Div. LEXIS 329 (N.Y. App. Div. Jan. 17, 2019). The insured's building began to shift and exhibit structural damage, including cracks, after construction began in an adjoining building. The insured submitted a claim under its commercial insurance policy. The insurer did not pay the claim, nor did it disclaim coverage. The insured sued, alleging breach of contract for failure to pay covered losses under the policy. The second cause of action was for breach of the implied covenant of good faith and fair dealing. The complaint also requested consequential damages in connection with each cause of action. The trial court granted the insurer's motion to dismiss the claim for consequential damages. 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

Nevada Construction Defect Lawyers Dead in Possible Suicides

March 28, 2012 — CDJ STAFF

A number of news sources have reported on the recent death of Nevada construction defect attorney, Nancy Quon. Ms. Quon was implicated in a recent scandal in which a group conspired to control homeowner associations in order to divert construction defect lawsuits to the members of the conspiracy.

Ms. Quon was found dead in her bathtub. The details are still under investigations. She and her boyfriend were accused of a failed arson/suicide scheme in 2010. Ms. Quon survived an attempt to burn down her home. Subsequently, her boyfriend obtained some gamma-hydroxybutyric acid (GBH) for her, as part of another failed suicide attempt.

Subsequent to Ms. Quon’s death, David Amesbury was found in California dead by hanging. Mr. Amesbury took a plea deal in the case, and he had admitted his role in providing legal and construction contracts to firms in the conspiracy. He was accused of fixing HOA elections.

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Hawaii Court Looks at Changes to Construction Defect Coverage after Changes in Law

November 06, 2013 — CDJ STAFF
A construction defect case lead at the U.S. District Court for Hawaii involved the insurer’s changed views on what was covered based on court decisions that came after the policy was written. John R. Casciano and Jessica L. Urban of Steptoe & Johnson LLP discuss the case on their firm’s website. They note that in Illinois National Insurance Company v. Nordic PCL Construction, Inc., Nordic built a retail building which soon afterwards had water leaks and property damage, due to alleged defects in the roof construction. Nordic had purchased comprehensive general liability and umbrella polices, with coverage that included property damage. Mr. Casciano and Ms. Urban note that “at the time of contracting, the Ninth Circuit had predicted that, ‘if the Hawaii Supreme Court examined the matter, it would rule that, for purposes of insurance coverage, construction defects were “not occurrences.”’” After the policy was written, the Hawaii Intermediate Court of Appeals did rule that “construction defect claims do not constitute an ‘occurrence’ under a CGL policy.” On the basis of this, Illinois National determined that they had no duty to defend or indemnify their client. Nordic made a claim of bad faith, but the court determined that “an insurer that denies coverage based on an open question of law does not act in bad faith, an insurer that actually relies on governing law, even if the insurer only belatedly learns of the law, cannot be said to thereby act in bad faith.” However, the court denied a summary judgment of Nordic’s claim of negligent misrepresentation, determining that there was “a question of fact as to whether the Policies covered [or were represented as covering] only damage to third parties caused by subcontractors’ defective work.” Finally, the court found that “a reasonable jury could infer that, at the time the Polices were issued, the insurers meant to cover claims arising out of the defective work” of Nordic’s subcontractors. They conclude that the Nordic decision “recognizes the varying consequences for coverage claims when post-contracting changes to the law may not coincide with the expectations of at least one of the parties at the time of contracting.” Read the court decision
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Construction Litigation Roundup: “Just Hanging Around”

August 14, 2023 — Daniel Lund III - Lexology
A subcontractor asserting a payment bond claim for “standby” time for its equipment on the Cline Avenue bridge project (over Indiana Harbor and Ship Canal in East Chicago, Indiana) received pushback from the payment bond surety. In fact, the duration of the standby time occurred after the surety’s principal, the general contractor, had been placed in default and terminated on the general contract. According to the surety: “After termination of the contract… it is impossible for labor, materials, and equipment to have been furnished for use in performing the terminated contract.” The surety filed a motion for summary judgment. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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