Fairfield Connecticut Building Expert Directory

Henkels & McCoy Pays $1M in Federal Overtime-Pay Case

July 19, 2021 — Tom Ichniowski - Engineering News-Record
In a consent judgment in a federal labor case, major specialty contractor Henkels & McCoy Inc. has paid about $1.1 million in back pay and damages for allegedly not paying required overtime wages to 362 current and former workers in five states, the U.S. Dept. of Labor says. Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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Overruling Henkel, California Supreme Court Validates Assignment of Policies

October 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In a major ruling, the California Supreme Court applied a statutory provision to overrule its prior decision in Henkel Corp. v. Hartford Accident & Indemn. Co., 29 Cal. 4th 934 (2003) and ruled that liability policies can be assigned despite non-assignment provisions. See Fluor Corp. v. Superior Court, 2015 Cal. LEXIS 5631 (Cal. Aug. 20, 2015). The Hawaii Supreme Court relied on Henkel when it also found anti-consent provisions valid. See Del Monte Fresh Fresh Produce (Hawaii), Inc. v. Fireman's Fund Ins. Co., 117 Haw. 357, 183 P.3d 734 (2007) [see posts here and here]. For decades, Fluor Corporation performed engineering, procurement, and construction (EPC) operations through various corporate entities and subsidiaries. Beginning in 1971, Hartford issued up to 11 CGL policies to Fluor from 1971 to 1986. Each policy contained a consent-to-assignment clause reading: "Assignment of interest under the policy shall not bind the Company until its consent is endorsed hereon." Beginning in the mid-1980s, Fluor Corporation was sued in numerous lawsuits claiming personal injury from asbestos exposure. Fluor Corporation tendered the early lawsuits to Hartford, which accepted the defense. Fluor Corporation subsequently went through a reverse spinoff under which a newly formed subsidiary, Fluor 2, took over the continuation of the company's EPC businesses. The original Fluor transferred all of its EPC-related assets and liabilities to Fluor-2, making Fluor-2 the parent of the EPC subsidiaries. The transaction did not except any insurance rights from the transfer of "any and all" assets. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Real Estate & Construction News Roundup (4/10/24) – Hotels Integrate AI, Baby-Boomers Stay Put, and Insurance Affects Housing Market

May 06, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, DOT’s major grant programs, proptech’s solution to climate change risks, mortgage-locked sellers put their homes on the market, and more!

The U.S. Department of Transportation opened applications for four major grant programs for infrastructure and transportation projects, totaling about $7.5 billion. (Dan Zukowski, Construction Dive)
Hotel brands are integrating AI into their operational processes — such as virtual concierges — and working toward sustainability initiatives that accelerate more environmentally friendly practices industry-wide. (Noelle Mateer, Hotel Dive)
The housing market will soon exit its slowdown, thanks to a growing number of mortgage-locked sellers opting to put their homes on the market, according to JPMorgan Asset Management. (Jennifer Sor, Business Insider)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Developer Transition – Washington DC Condominiums

June 29, 2017 — Nicholas D. Cowie - Maryland Condo Construction Defect Law Blog
Developer transition is the process by which governance over a condominium unit owners’ association (“condominium association”) is transferred from condominium developer to unit owner control. Below is an overview of the legal requirements in the District of Columbia that govern this transition process as well as a “transition checklist” for unit owner-elected boards of directors that have recently transitioned from developer control. TRANSITION LAW OVERVIEW PERIOD OF DEVELOPER CONTROL A developer initially controls a condominium association because it owns all unsold units in the newly created condominium. As such, the condominium developer has the controlling votes associated with majority ownership and can appoint its own employees as the initial members of the board of directors and thereby control how the association conducts its affairs. This is referred to as the “period of developer control,” during which the condominium developer makes all decisions on behalf of the condominium association. The developer also creates a condominium association’s governing documents allowing it to dictate, subject to applicable law, the procedures and time periods under which control over the association’s board of directors is ultimately transferred to the unit owners. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie & Mott, P.A.
Mr. Cowie may be contacted at ndc@cowiemott.com

When Is Mandatory Arbitration Not Mandatory?

August 19, 2015 — Christopher G. Hill – Construction Law Musings
I have discussed my views on mandatory mediation in construction contracts at other places here at Musings and also discussed how the contract is king here in Virginia. A recent Charlottesville, Virginia Circuit Court case combined these two concepts to allow a subcontractor to proceed straight to litigation despite various ADR provisions in the contract between it and the general contractor. In ProBuild v. DPR & Continental Casualty, the Court looked at a series of ADR steps that were to be followed in the contract between the parties in order to allow DPR, the general contractor to require arbitration as opposed to litigation. The Court considered the surety’s motion to stay the litigation against it pending arbitration between ProBuild and DPR. In ProBuild, the Court looked at a contractual provision that provided certain steps to be followed in the event of a dispute, starting with a notice of dispute, followed by negotiation, followed by mediation should the disputing party request it, and in the event that mediation was tried and failed, the disputing party or general contractor could require arbitration. The Court determined that ProBuild, the subcontractor, was the disputing party under the contract, had pursued unsuccessful formal negotiations and that neither ProBuild nor DPR requested mediation. The Court then held that because unsuccessful mediation was a prerequisite to required arbitration and because mediation was never pursued, the mandatory arbitration clause did not apply. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

NEW DEFECT WARRANTY LAWS – Now Applicable to Condominiums and HOAs transitioning from Developer to Homeowner Control. Is Your Community Aware of its Rights Under the New Laws?

February 07, 2014 — Nicholas D. Cowie – Maryland Condo Construction Defect Law Blog
All condominium associations and homeowners associations (“HOAs”) created in Maryland 0n or after October 1, 2010 are subject to new laws pertaining to statutory warranties for construction defects in workmanship and materials. Most associations that have recently transitioned, or that are about to transition, from developer to homeowner control were created on after October 1, 2010. It is now time for these Associations to become familiar with the new laws to ensure they protect and preserve their warranty rights. Below is an Article I wrote regarding these new laws, which I helped create. See Blog Post: “Maryland Construction Defect Lawyers Enforcing Warranty Claims for Condominiums.” Too often our firm is contacted by condominium associations who never knew what there warranty and other legal rights were until it was too late to seek developer repairs and reimbursement for construction defects. There is no reason for community associations to remain uniformed. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Maryland Condo Construction Defect Law Blog
Mr. Cowie may be contacted at ndc@cowiemott.com

Delay In Noticing Insurer of Loss is Not Prejudicial

April 28, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Tenth Circuit reversed a district court's determination that untimely notice of the loss was prejudicial, eliminating the insurer's coverage obligations. B.S.C. Holding, Inc. v. Lexington Ins. Co., 2014 U.S. App. LEXIS 4492 (10th Cir. March 11, 2014). In January 2008, the insured's employees detected an inflow of water in a salt mine and feared dissolution of the salt or structural problems. The insured tried to devise a solution. Two and a half million dollars were spent to find the cause of the water inflow and to identify a solution. In April 2010, the insured determined the inflow was caused by an improperly sealed oil well. In July 2010, the insured notified Lexington of the water inflow. The ultimate proof of loss was for $7.5 million, which included remediation measures that the insured had performed before notifying Lexington. Lexington's all-risk policy required the insured to notify the company in writing as soon as practicable. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Brazil Builder Bondholders Burned by Bribery Allegations

October 22, 2014 — Paula Sambo and Sabrina Valle – Bloomberg
Brazil’s biggest construction companies are leaving bondholders with losses in the wake of allegations they bribed Petroleo Brasileiro SA to win contracts. Queiroz Galvao SA’s $700 million of notes due 2019 have dropped 2.5 percent since Oct. 9, when the Department of Justice made available video in which former Petrobras head of refining Paulo Roberto Costa alleged that builders formed a cartel to overcharge for projects and divert money to politicians. OAS SA’s $875 million of 2019 notes have slumped 1.9 percent in that span, versus a 0.1 percent loss for emerging markets. Ms. Sambo may be contacted at psambo@bloomberg.net; Ms. Valle may be contacted at svalle@bloomberg.net Read the court decision
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Reprinted courtesy of Paula Sambo and Sabrina Valle, Bloomberg

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