FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Gillotti v. Stewart (2017) 2017 WL 1488711 Rejects Liberty Mutual, Holding Once Again that the Right to Repair Act is the Exclusive Remedy for Construction Defect Claims

November 21, 2017 — Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. - Chapman Glucksman Dean Roeb & Barger Bulletin
Originally published by CDJ on June 5, 2017 Background In Gillotti v. Stewart (April 26, 2017) 2017 WL 1488711, which was ordered to be published on May 18, 2017, the defendant grading subcontractor added soil over tree roots to level the driveway on the plaintiff homeowner’s sloped lot. The homeowner sued the grading subcontractor under the California Right to Repair Act (Civil Code §§ 895, et seq.) claiming that the subcontractor’s work damaged the trees. After the jury found the subcontractor was not negligent, the trial court entered judgment in favor of the subcontractor. The homeowner appealed, arguing that the trial court improperly construed the Right to Repair Act as barring a common law negligence theory against the subcontractor and erred in failing to follow Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98. The Third District Court of Appeal disagreed and affirmed the trial court’s judgment in favor of the subcontractor. Impact This is the second time the Third District Court of Appeal has held that Liberty Mutual (discussed below) was wrongly decided and held that the Right to Repair Act is the exclusive remedy for construction defect claims. The decision follows its holding in Elliott Homes, Inc. v. Superior Court (Hicks) (2016) 6 Cal.App.5th 333, in which the Court of Appeal held that the Right to Repair Act’s pre-litigation procedures apply when homeowners plead construction defect claims based on common law causes of action, as opposed to violations of the building standards set forth in the Right to Repair Act. Elliott is currently on hold at the California Supreme Court, pending the decision in McMillin Albany, LLC v. Superior Court (2015) 239 Cal.App.4th 1132, wherein Liberty Mutual was rejected for the first time by the Fifth District. CGDRB continues to follow developments regarding the much anticipated McMillin decision closely, as well as all related matters. Reprinted courtesy of Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Ms. Zwart may be contacted at czwart@cgdrblaw.com Read the court decision
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Know What You’ve Built: An Interview with Timo Makkonen of Congrid

September 09, 2019 — Aarni Heiskanen - AEC Business
Construction contains thousands of big and small tasks. How can a client and contractor know if they have all been completed as intended? Congrid offers an answer to that question. Congrid is a Finnish construction software developer. The company provides software for punch lists, quality and safety audits, and design document distribution. It operates in Finland, Sweden, and the U.K. The company’s founding team members, collectively, offer a combination of expertise in construction management, software development, and marketing and sales. “I come from the electronics industry. I came into this business through my old schoolmates,” says Timo Makkonen, Congrid’s CEO. “My specialty is business development and leadership.” Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Sales of U.S. Existing Homes Rise to One-Year High

October 22, 2014 — Michelle Jamrisko – Bloomberg
Sales of previously owned homes climbed in September to the highest level in a year, pointing to growing confidence in the U.S. economy as employment firms. Purchases advanced 2.4 percent to a 5.17 million annual rate, the National Association of Realtors reported today in Washington. Demand was up 1.9 percent compared with the same month last year before adjusting for seasonal patterns. Americans are returning to the real-estate market as employers have added 2 million workers to payrolls so far this year. Sales stand to get an additional boost in the final months of 2014 as the drop in mortgage rates caused by slowing growth in Europe and emerging nations makes properties more affordable for first-time buyers. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg
Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net

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Points on Negotiating Construction Claims

December 30, 2013 — CDJ STAFF
Eugene Heady of Smith Currie and Hancock offers some pointers on the effective negotiation of construction claims. He notes that “claims and disputes in the construction industry are commonplace,” but that “settlement usually comes after much pain, suffering, and expense.” He offers nine points to consider when negotiating construction claims. His first two points are to develop a claim position and then document that claim. He says that “the facts underlying the claim should be nonnegotiable.” The documentation “suggests to your opponent that you have done your homework and are serious about the pursuit of your claim.” He also notes that you need to understand the strengths and weaknesses of your position. On the other side, you need to “understand your opponent’s positions,” and also “your opponent’s strengths.” He points out that “an appreciation for what is truly important to your opponent is the starting point for the development of creative solutions to the dispute. Further, bargaining should be done in good faith, negotiation should be done on the merits, and you are well advised to “choose a seasoned and skilful negotiator. “A prolonged and expensive legal battle is not likely to change the outcome,” he warns. Read the court decision
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No Escape: California Court of Appeals Gives a Primary CGL Insurer’s “Other Insurance” Clause Two Thumbs Down

December 02, 2015 — Yas Omidi – California Construction Law Blog
“No Escape” is a 2015 action movie starring Pierce Brosnan and Owen Wilson (that’s right, Owen Wilson) and which the folks at rogerebert.com described as “a dreadful…would-be thriller” and “low-grade trash.” It’s also, in short, the California Court of Appeal’s answer to a primary insurer’s recent bid to escape its duty to defend pursuant to an “other insurance” clause in a CGL policy in Underwriters of Interest Subscribing to Policy No. A15274001 v. ProBuilders Specialty Ins. Co., Case No. D066615, California Court of Appeals for the Fourth District (October 23, 2015). Read the court decision
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Reprinted courtesy of Yas Omidi, California Construction Law Blog
Ms. Omidi may be contacted at yomidi@wendel.com

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Impasse Over Corruption Charges Costs SNC $3.7 Billion, CEO Says

January 08, 2019 — Frederic Tomesco - Bloomberg
Canada’s failure to reach a negotiated settlement with SNC-Lavalin Group Inc. over past corruption charges has probably cost the company more than C$5 billion ($3.7 billion) in lost revenue and continues to damage its reputation internationally, Chief Executive Officer Neil Bruce said. Read the court decision
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Reprinted courtesy of Frederic Tomesco, Bloomberg

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OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute

October 30, 2018 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C.
On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis. Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

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Coloradoans Deserve More Than Hyperbole and Rhetoric from Plaintiffs’ Attorneys; We Deserve Attainable Housing

January 09, 2015 — David M. McLain – Colorado Construction Litigation
As the 2015 Colorado legislative session gets underway, the media attention and discussion regarding the lack of attainable housing, skyrocketing rental rates, and the ongoing state and local efforts to reverse these trends have risen to a dull roar. The hyperbole and rhetoric from those who would oppose any reforms has risen to cacophonous levels. Among the most often quoted talking points from the opposition are that any changes to Colorado’s existing laws would strip homeowners of their right to seek redress for construction defects and that they would virtually insulate construction professionals from such claims. The long and the short of it is that if this year’s legislation looks anything like SB 220 from last year, nothing could be further from the truth. The two main provisions from SB 220 were: 1) protection of a construction professional’s ability to resolve construction defect claims through arbitration; and 2) requirement of informed consent of more than 50% of the owners within a common interest community before a construction defect action could begin. Neither of these changes would strip homeowners of any rights and they certainly would not insulate construction professionals from construction defect actions. Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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