Fairfield Connecticut Building Expert Directory

Do You Really Want Mandatory Arbitration in Your Construction Contract?

June 25, 2019 — Christopher G. Hill - Construction Law Musings
If you are in construction, you have likley run across (or even drafted) a dispute resolution provision into your construction contract. If you’ve been building for any length of time, you’ve read dispute resolution provisions containing mandatory arbitration clauses. These clauses can be found in the AIA documents and in many of the contracts that I review for my clients in my role as construction lawyer and counselor. More often than not, these arbitration clauses require arbitration (read “private court”) and refer to one of several sets of rules, though most likely the American Arbitration Association (“AAA”) Construction Industry rules. In Virginia, as in most of the United States, these clauses are read liberally and enforced by courts except in limited cases such as waiver. The main justification for requiring arbitration over litigation is to avoid the fees and expense of the litigation process. In the right circumstances, arbitration does just that. With a carefully drafted arbitration clauses and with the right case that requires expertise in construction that a judge does not have (they have to liten to all manner of disputes so are necessarily generalists), arbitration can and should be a streamlined and less expensive version of litigation. However, in my time as a construction attorney, I have more often run into situations where the arbitration process is at least equally expensive and frankly not much more streamlined. The additional administrative burden coupled with the possibility of paying for at least half of the hourly charges of one to three arbitrators is often not worth the additional expertise of those arbitrators. Many construction claims simply come down to non-payment and whether the work was performed properly. In my opinion, the fine judges in the Commonwealth of Virginia are more than capable of hearing this evidence and making a ruling. 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

Zero-Net Energy Homes Costly Everywhere but at the Electric Meter

August 27, 2013 — CDJ STAFF
On one hand, your walls are about nine inches thick. On the other hand, your heating and cooling costs are nonexistent. Greenhill Contracting is building “zero-net energy” homes in New Paltz, New York. The homes are designed to create more power than they consume. In addition to the walls, which WDTN News describes as “castle thick,” the homes include solar panels, triple-glazed windows, and geothermal heating and cooling systems. The cost for a three-bedroom home in this development starts at about $400,000. Meritage Homes is offering net-zero as an option on its homes. Based in Arizona, Meritage builds homes across the country. Another national builder, Shea Homes, calls its net-zero option “SheaXero,” and has built about a thousand in four western states and in Florida. One Arizona homeowner notes that she runs her air conditioner constantly, but “I still have never paid more than $18 and some change.” Sometimes she even gets a credit. Read the court decision
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Reprinted courtesy of

Mediation Scheduled for Singer's Construction Defect Claims

February 11, 2013 — CDJ STAFF
A judge has scheduled mediation and trial over the claims of Rihanna that her Beverley Hills home suffers from construction defects. The singer claims that the previous owners, Adriana and Heather Rudomin, did not disclose construction defects which lead to flooding from water leaks in January 2010. The Rudomins did not appear at the February 7th hearing, and the judge fined them $500. They will be required to explain their absence on March 12. The mediation will begin on May 7. The trial has been scheduled for February 24, 2014, and is expected to last three weeks. Read the court decision
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SunCal Buys Oak Knoll Development for the Second Time

May 19, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the San Francisco Business Times, “Irvine-based SunCal has now bought the same site twice: once in 2005 for $100.5 million and again last week from the Lehman Brothers estate.” Suncal’s original plan to develop the 167-acre Oakland Hills, California project “fell apart after Lehman declared bankruptcy in 2008.” The San Francisco Business Times reported that the “former naval hospital site” has “the potential for more than 900 homes.” The former design included “960 homes, 82,000 square feet of commercial and retail space, and 50 acres of parks and open space.” Read the court decision
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China Home Glut May Worsen as Developers Avoid Price Drop

August 06, 2014 — Zhang Dingmin - Bloomberg News
The biggest immediate risk facing China’s economy is about to get worse. A reluctance among some developers to sell units at prices lower than they could fetch just months ago threatens to cause a swelling in unsold properties. The worsening glut would extend a slide in construction that’s already put a drag on the world’s second-largest economy, and counter policy makers’ efforts to stimulate the real-estate industry with loosened rules. In Nanjing, eastern China, nine housing projects originally planned for sale in the first half of 2014 were held for later this year, consulting firm Everyday Network Co. says. The number of homes added to the market in July in 21 major cities dropped 25 percent from June, according to Centaline Group, parent of China’s biggest real-estate brokerage. Read the court decision
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Reprinted courtesy of Zhang Dingmin, Bloomberg News
Zhang Dingmin may be contacted at dzhang14@bloomberg.net

Increases in U.S. Office Rents Led by San Jose and Dallas

October 01, 2014 — Hui-yong Yu – Bloomberg
San Jose, California, and Dallas led the U.S. in office-rent increases in the third quarter as cities benefiting from growth in the technology and energy industries outperformed the gradual national recovery. Rents after any landlord discounts, known as effective rents, climbed 6.7 percent from a year earlier in San Jose, compared with the U.S. average increase of 2.6 percent, property researcher Reis Inc. (REIS) said. Dallas rents rose 5.2 percent, followed by San Francisco’s 5.1 percent gain, Houston’s 4.4 percent increase and New York’s 3.9 percent advance. The national sluggishness in the office market’s growth is being bucked by parts of Northern California and Texas, where large bases of technology or energy workers drive demand for space, Reis said. Throughout the U.S., increases in office occupancies show that the market “is in the midst of a recovery,” according to the New York-based company. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

U.S. District Court for Hawaii Again Determines Construction Defect Claims Do Not Arise From An Occurrence

August 27, 2013 — CDJ STAFF
In a decision authored by Judge Leslie E. Koybayashi, the U.S. District Court for the District of Hawaii followed its prior decisions that construction defect claims were not covered because such claims do not arise from an occurrence. Nautilus Ins. Co. v. 3 Builders, Inc., 2013 U.S. Dist. LEXIS 88480 (D. Haw. June 24, 2013). 3 Builders, the insured, was sued by the Apartment Owners of Mililani Pinnacle for the faulty installation of a new roof. Pinnacle claimed the completed roofs were not properly installed.complaint alleged breach of contract, breach of the duty of good faith and fair dealing, negligence, and other causes of action. 3 Builders tendered the defense to Nautilus, who accepted the tender and defended for three years. Nautilus, however, filed a complaint for a declaratory judgment on its coverage obligations. Nautilus sought summary judgment, contending there was no coverage because all of the claims arose from the contractual relationship to perform the roof work, and a breach of contract was not the type of fortuitous event covered by a CGL policy under Hawaii law. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Court Addresses HOA Attempt to Restrict Short Term Rentals

December 11, 2018 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA issued notices of violation; the homeowner kept renting; the HOA assessed fines against the property. The property owner then sought a declaration from the court that the CC&Rs did not impose a minimum duration on occupancy or leasing. The trial court agreed with the HOA. The Texas Court of Appeals also agreed with the HOA. The Texas Supreme Court reversed, holding that the CC&Rs, as properly interpreted, did not prohibit short-term rentals. In arriving at its holding, the Texas Supreme Court analyzed the CC&Rs in detail and came to an interpretation different than the trial court and the Court of Appeals. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

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