Fairfield Connecticut Building Expert Directory

Disputes Will Not Be Subject to Arbitration Provision If There Is No “Significant Relationship”

November 29, 2021 — David Adelstein - Florida Construction Legal Updates
As you know from prior articles, arbitration is a creature of contract. This means if you want your disputes to be resolved by binding arbitration, as opposed to litigation, you want to make sure there is an arbitration provision in your contract. If there are certain types of disputes you do not want subject to arbitration, you want to specify those types of disputes/claims in your arbitration provision. If you are not sure, make sure to discuss the pros and cons of arbitration with your counsel when drafting and negotiating the contract. However, even with a broad arbitration provision, there are times where a dispute may still fall out of the scope of the arbitration provision, i.e., the dispute is not arbitrable. If this occurs, such dispute will be resolved by litigation. Parties that have buyer’s remove and do not want to arbitrate their dispute may try to make this argument that the dispute is not subject to the scope of the arbitration provision. There are times this argument carries weight because the dispute has no significant relationship to the agreement with the arbitration provision, as shown below. In Deweees v. Johnson, 46 Fla. L. Weekly D2356b (Fla. 4th DCA 2021), a plaintiff purchased a home in a private residential community. The purchase contract with the developer contained a broad arbitration provision that materially provided that, “all post-closing claims, disputes, and controversies…between purchaser and seller will be resolved by binding arbitration except those arising under section G.5 and G.6 above.” Dewees, supra. Sections G.5 and G.6 provided that the purchaser will not interfere in the sales process with other purchasers and will not interfere with workmen during the construction process. There was also a workmanship and structural defect warranty for the dwelling that also contained an arbitration provision. 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

Federal Courts Reject Insurers’ Attempts to Recoup Defense Costs Expended Under Reservation of Rights

April 11, 2022 — Anthony L. Miscioscia & Margo Meta - White and Williams
In situations where there is a dispute over a duty to defend, an insurer may provide a defense to its insured, subject to a reservation of rights, to not only deny coverage for a defense, but also to file a declaratory judgment action and recoup defense costs in the event it is determined there is no duty to defend. But are defense costs recoupable? Last week, federal trial courts in Georgia and Pennsylvania answered this question with a resounding “no”. In Chemical Equipment Labs, Inc. v. Travelers Property Casualty Company of America, Case No. 19-3441, 2022 U.S. Dist. LEXIS 61298 (E.D.Pa. Mar. 31, 2022), the United States District Court for the Eastern District of Pennsylvania was called to determine whether Travelers Property Casualty Company of America (Travelers) was entitled to reimbursement of defense costs after it was determined that it had no duty to defend its insured in an arbitration for breach of a charter agreement. The Travelers’ policies did not contain an express reimbursement provision. The court found that Travelers was not entitled to reimbursement because under Pennsylvania law, “[r]eimbursement of defense costs requires an express provision in the written insurance contract.” Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Margo Meta, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Meta may be contacted at metam@whiteandwilliams.com Read the court decision
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New Safety Requirements added for Keystone Pipeline

June 11, 2014 — Beverley BevenFlorez-CDJ STAFF
After learning about construction defects on the “southern leg of the Canada-to-Texas project,” safety regulators have added two additional conditions “on construction of TransCanada Corp.’s Keystone XL oil pipeline,” according to Claims Journal. The defects, which have been fixed, included “high rates of bad welds, dented pipe and damaged pipeline coating.” The first condition requires “TransCanada to hire a third-party contractor chosen by the pipeline safety agency to monitor the construction” and report to the U.S. government, while the second condition requires “TransCanada to adopt a quality management program.” Both conditions were “buried near the end of the 26 appendices in a voluminous environmental impact statement on Keystone XL released by the State Department on Jan. 31.” Read the court decision
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Toll Brothers Shows how the Affluent Buyer is Driving Up Prices

July 09, 2014 — Beverley BevenFlorez-CDJ STAFF
John McManus of Big Builder explained how prices per square foot are rising due to an increase in more affluent buyers: “Discretionary buyers—ones with access to cash treasure troves, robust and growing stock portfolios, sovereign wealth in search of anti-inflationary investment, and, for good measure, throw in a smattering of seven-figure income households flush with this year’s bonus payouts—are who, unit by unit, have electrified the housing market’s recovery on the heels of institutional bulk buyers of 2012 and early 2013.” Toll Brothers, according to McManus, “was, is, and will be the organization most committed to home buying’s discretionary buyer.” “Thanks to the demand for luxury, and for three- and four-bedroom places, we’re seeing pricing-per-square-foot get better and better the greater number of square feet we offer,” David Von Spreckelsen, Toll Brothers City Living division president, told Big Builder. Read the court decision
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The Top 3 Trends That Will Impact the Construction Industry in 2024

December 04, 2023 — The Hartford Staff - The Hartford Insights
As more than 40% of the current U.S. construction workforce will retire in the next decade, industry leaders need to equip themselves with the necessary resources to combat the shifting work environment.1 “Trends in the construction industry will fluctuate in the coming years, which can lead to additional risks for industry leaders. It will be important to think about how they can address any potential risk factors. A lot of leaders have been increasing their planning efforts and looking into technology solutions to combat the ongoing labor shortage,” said David DeSilva, head of construction at The Hartford. Here, he outlines the top three top trends for business leaders to watch in 2024. 1. Ongoing Labor Shortages Construction is an industry that traditionally has a high labor turnover rate, which means companies needs to hire more frequently. This only increases during labor shortages. The construction workforce is up against several factors, including an aging workforce and recruitment struggles. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Retainage on Pennsylvania Public Contracts

January 31, 2018 — Wally Zimolong - Supplemental Conditions
Ah yes, retainage, what could represent your profit on a project and something frequently abused by owners on private and public projects alike. Fortunately, Pennsylvania law offers public works contractors some protection from retainage abuse. The Public Prompt Payment Act dictates when retainage can be withheld and when it must be released. Agencies that fail to follow the Prompt Payment Act’s retainage rules can end up owing you interest, penalty, and attorney’s fees. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC

Home Buyer Disclosures, What’s Required and What Isn’t

February 05, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Sandy Gadow of the Washington Post, while all states require a property disclosure statement, “the extent of what must be revealed can vary from state to state, county to county and even city to city.” Gadow stated that while, “Federal law requires certain disclosures, such as the existence of asbestos or lead-based paint in the home or other known health or safety risks. But the enforcement of other disclosures (such as reporting certain environmental conditions pertinent to the area, or the existence of Megan’s Law offenders) will be determined by local ordinance or law.” Gadow recommends home buyers go to their state’s Department of Real Estate to discover the Seller Disclosure requirements. Read the court decision
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Insurers Dispute Sharing of Defense in Construction Defect Case

May 13, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App. Feb. 28, 2024). Martin McNerney Development Company (McNerney) entered a construction contract to perform seismic upgrades and tenant improvements for condominiums. McNerney and Broadway Mechanical Contractors, Inc. (Broadway) entered a "Subcontract Agreement" under which Broadway was to perform plumbing work at the project. The agreement required Broadway to maintain general liability insurance naming McNerney as an additional insured for work performed on the project, including completed operations. The subcontract also required Broadway to indemnify and hold McNerney harmless with respect to all claims for damage to property arising out of work performed by Broadway. Broadway completed its work on the project in September 2007. Broadway issued a one-year warranty for its work on the project. 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

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES