FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Illinois Supreme Court Holds That the Implied Warranty of Habitability Does Not Extend to Subcontractors

March 04, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
The implied warranty of habitability allows a homeowner to recover damages for latent defects that interfere with the intended use of a home. In Sienna Court Condo. Ass’n v. Champion Aluminum Corp., 2018 IL 122022, 2018 Ill. LEXIS 1244 (2018), the Supreme Court of Illinois held that buyers of new homes cannot assert claims for breach of the implied warranty of habitability against subcontractors involved in the construction of the homes because the subcontractors have no contractual relationship with the homeowners and the damages are purely economic. As the court explained, the implied warranty of habitability is a creature of contract (not tort) and, therefore, only exists when there is contractual privity between the defendants and the homeowners. In Sienna, a group of condominium unit owners alleged that their new homes contained latent construction defects and asserted claims against the various parties involved in the construction and sale of the homes, including claims against the defendant subcontractors for breach of the implied warranty of habitability. The plaintiffs contracted with the property developer to purchase the homes, but the plaintiffs had no contractual relationship with the subcontractors involved in the construction of the homes. The Sienna court, overturning the decisions of the trial court and the appellate court, granted the subcontractors’ joint motion to dismiss the plaintiff’s claims for the implied warranty of habitability because the plaintiffs had no contractual relationship with the subcontractors and the damages were purely economic. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

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Duty to Defend Triggered by Damage to Other Non-Defective Property

February 20, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court found the insurer must defend because there was a possibility of damage to property due to work not performed by the insured. B&W Paving & Landscape, LLC v. Employers Mut. Cas. Co., 2022 U.S. Dist. LEXIS 225783 (D. Conn. Dec. 15, 2022). In 2010, Whiting Turner Contracting Company (WT) contracted with United Illuminating Company (UI) to act as general contractor for the construction of UI's new central facility. WT subcontracted with Cherry Hill Construction, Inc. (Cherry Hill) for work underneath the parking lot and driveways, including installing base and sub base materials. WT also subcontracted with B&W Paving and Landscape, LLC (B&W) for the asphalt paving. In 2018, UI sued WT for defective and incomplete work. WT then filed a third-party compact against its subcontractors, including B&W. WT sued for contribution for any liability it may have to UI for the paving work. 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

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Supreme Court Finds Insurance Coverage for Intentional (and Despicable) Act of Contractor’s Employee

July 21, 2018 — Garret Murai - California Construction Law Blog
Not to cast shade on your fun in the sun, but here’s an unusual, albeit sad and creepy, one for you. I’m bummed even writing about this one. In Liberty Surplus Insurance Corporation v. Ledesma & Meyer Construction Company, Inc., Case No. S236765 (June 4, 2018), the California Supreme Court addressed whether a general contractor’s commercial general liability carrier was obligated to defend and whether the carrier was liable for damages sustained by a young girl who was molested by an employee of the general contractor during construction at a school. At issue was whether the policy’s definition of an “occurrence,” which was defined, like most policies, as “an accident,” was triggered by the “intentional” and clearly not accidental act of the general contractor’s employee. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Pennsylvania: When Should Pennsylvania’s New Strict Products Liability Law Apply?

February 05, 2015 — Robert Caplan and Timothy Carroll – White and Williams LLP
Pennsylvania has maintained its own peculiar brand of strict products liability law ever since the Supreme Court decided Azzarello v. Black Bros. Co., Inc.[1] in 1978. Maligned by many as “absurd and unworkable,”[2] if “excessively” orientated towards plaintiffs,[3] Azzarello’s unique approach to the Restatement (Second) of Torts § 402A (1965)[4] has recently been judicially consigned to the dustbin of history. In Tincher v. Omega Flex, Inc.,[5] decided on November 19, 2014, the Pennsylvania Supreme Court expressly overruled Azzarello leaving in its place a new alternative standards approach to proving a Section 402A claim. An injured worker or subrogated insurer[6] must still prove that the seller, whether a manufacturer or a distributor, placed the product on the market in a “defective condition unreasonably dangerous to the consumer.”[7] But now, under Tincher, a plaintiff must use either a “consumer expectation test” or a “risk-utility test” to establish that criterion.[8] Reprinted courtesy of Robert Caplan, White and Williams LLP and Timothy Carroll, White and Williams LLP Mr. Caplan may be contacted at caplanr@whiteandwilliams.com; Mr. Carroll may be contacted at carrollt@whiteandwilliams.com Read the court decision
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Research Institute: A Shared Information Platform Reduces Construction Costs Considerably

October 26, 2017 — Aarni Heiskanen - AEC Business
A new Danish study shows how the use of a shared digital management and communication platform on large-scale construction projects leads to considerable cost reductions. The Danish Building Research Institute conducted a six-month research project that studied the effects of using a specific IT concept during construction. The three case studies were: 1. The Maersk Tower, a 15-story, 42,700-square-meter extension to the Panum complex. 2. The Niels Bohr Building, a 52,000-square-meter new laboratory and academic building. 3. The Danish Defence’s Property Agency’s construction project portfolio (FES). Each of them used GenieBelt as the shared IT platform. It was used for the progress management of a construction project portfolio, management of construction activities, and communication between the construction management team and contractors. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

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Sanibel Causeway Repair: Contractors Flooded Site With Crews, Resources

November 15, 2022 — Derek Lacey - Engineering News-Record
After Hurricane Ian slammed into southwest Florida, washing out the Sanibel Causeway and cutting off thousands of Sanibel Island residents, another flood hit the area: construction crews and resources that swarmed the area to rebuild two roadway sections and five washed-out approaches to restore access. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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Contractor Sentenced to Seven Years for Embezzling $3 Million

July 20, 2020 — Garret Murai - California Construction Law Blog
Michael Medeiros was not a good guy. Ok, on a scale of 1 to 10, maybe not a 9 or 10 (when you’re including guys like Charles Manson), but a solid 6 or 7 at least. The next case, People v. Medeiros, Case No. A155648, 1st District Court of Appeals (March 26, 2020), is less important for its legal holding than as a reminder that while most legal disputes on construction projects end up with one party owing the other party money, sometimes, when a party’s conduct has been really bad, it can end in a loss of liberty (i.e., jail time) as well. People v. Medeiros Medeiros was a painting contractor operating under the name Professional Painting Company, Inc. In the early 1990s, Medeiros met Susan Lambert, who served as the property manager for a homeowners’ association, Woodlake Association, in Hayward, California. Lambert was an alcoholic. Following a series of surgeries in 2005 and 2007 she became addicted to opiates as well. She also had a gambling problem. As a result, Lambert regularly found herself in financial difficulty. And this is where Lambert and Medeiros found that they shared common ground. At some point, Medeiros confided to Lambert that he was having cash flow and tax problems. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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The Right to Repair Act Means What it Says and Says What it Means

December 18, 2022 — Garret Murai - California Construction Law Blog
A rather short case for a short week. In Gerlach v. K. Hovnanian’s Four Seasons at Beaumont, LLC, 82 Cal.App.5th 303 (2022), the 4th District Court of appeals examined provisions of the Right to Repair Act (Civ. Code §§895 et. seq), also known as “SB 800” after its original bill number, as it applies to roofs. The Gerlach Case Lynn Gerlach and Lola Seals are homeowners who purchased their homes in the Four Seasons at Beaumont adult community, for those 55 year old and older, located in Beaumont, California. Gerlach purchased her home when it was built in 2006. Seals purchased her home from the original owners in 2015. In 2015 and 2016, Gerlach and Seals served the developer, K. Hovnanian’s Four Seasons at Beaumont, LLC, with claim notices under the Right to Repair Act. The Right to Repair Act, as its name implies, provides notice requirements and repair rights by developers of new single-family homes. The Right to Repair Act also includes construction standards, the violation of which, provides homeowners with a statutory basis for bringing construction defect claims. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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