Fairfield Connecticut Building Expert Directory

PSA: Pay If Paid Ban Goes into Effect on January 1, 2023

December 05, 2022 — Christopher G. Hill - Construction Law Musings
I have written a couple of times here at Musings regarding the new pay-if-paid legislation passed by the General Assembly last session. While the statute has some inconsistencies and a working group has made some recommendations, the legislation as passed will go into effect on January 1, 2023, without any changes (at least until next session). As always, such action by our legislature here in Virginia will create work for construction attorneys assisting their clients to amend contracts to meet the new rules. Essentially (and with minor inconsistencies between public and private contracts), the bill requires that any construction contract entered into after January 1, 2023 have the following provisions:

On public projects: A payment clause that obligates a contractor on a construction contract to be liable for the entire amount owed to any subcontractor with which it contracts. Such contractor shall not be liable for amounts otherwise reducible due to the subcontractor’s noncompliance with the terms of the contract. However, in the event that the contractor withholds all or a part of the amount promised to the subcontractor under the contract, the contractor shall notify the subcontractor, in writing, of his intention to withhold all or a part of the subcontractor’s payment with the reason for nonpayment.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

What Construction Contractors Should Know About the California Government Claims Act

May 28, 2024 — Garret Murai - California Construction Law Blog
If you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity. What types of claims does the Government Claims Act apply to? The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Condominium's Agent Owes No Duty to Injured Apartment Owner

August 28, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The court granted the agent's motion to dismiss claims asserted by a condominium owner's claim for injuries due to a fire in his unit. Great Am. Allliance Ins. Co. v. Village Gardens Homeowners Association, 2023 U.S. Dist. LEXIS 102900 (C.D. Calif. June 12, 2023). Village Gardens' agent, Roy Palacios Insurance Company, obtained umbrella and excess policies from Great American for apartment buildings located on the property. In obtaining the policies, Village Gardens represented to Great American through Palacios that the property's roof, HVAC, plumbing and electrical systems had been updated. On Febaruary 16, 2019, the apartment in which Vicencio Flores resided caught fire, causing him to suffer severe burns. Flores alleged that the fire was caused by Village Gardens' "improper construction, use of poor construction materials and negligent maintenance of the property." 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

Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring

November 25, 2024 — Matthew DeVries - Best Practices Construction Law
I recently blogged about the use of AI and ChatGBT in the construction industry. Today’s guest post by Alexandra Shulman and Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process. AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics. Read the court decision
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Reprinted courtesy of Matthew DeVries, Buchalter
Mr. DeVries may be contacted at mdevries@buchalter.com

Federal Magistrate Judge Recommends Rescission of Policies

February 12, 2024 — Craig Rokuson - Traub Lieberman
In the recent case of Union Mut. Fire Ins. Co. v. 142 Driggs LLC, 2023 U.S. Dist. LEXIS 220393, Magistrate Judge Lois Bloom of the United States District Court for the Eastern District of New York recommended granting the insurer's default judgment and holding that of three policies issued to 142 Driggs LLC ("Driggs") be rescinded ab initio. Driggs had represented on its insurance applications that it did not provide parking to anyone other than itself, tenants, and its guests at the subject insured premises. However, Union Mutual learned that Driggs had been renting out three garages to non-tenants. Second, Driggs represented that the mercantile square footage was around 1,000 square feet, when in actuality, it was larger than allowed under the policies. Union Mutual provided underwriting guidelines in connection with its default motion, which state that "parking provided for anyone other than the insured, tenants and their guests," presents an "unacceptable risk." The guidelines also state that answering yes to any "preliminary application questions (which presumably included those regarding mercantile square footage and parking) is an "unacceptable risk." The court held that these guidelines supported a finding that Driggs made material misrepresentation and that Union Mutual relied on these misrepresentations in issuing the policies. The court, as such, recommended that the policies at issue be rescinded from inception. Read the court decision
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Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

Court Agrees to Stay Coverage Matter While Underlying State Action is Pending

October 29, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court granted the insured's motion to stay the coverage action while the construction defect case was pending in state court. Auto Owners Ins. Co. v. Essex Homes Southeast, Inc., 2014 U.S. Dist. LEXIS 133120 (D. S.C., Sept. 23, 2014). The homeowners sued Essex Homes in state court for construction defects in a home built and sold to them by Essex Homes. The suit sought damages for property damage based on negligence, breach of implied warranty, and breach of express warranties arising out of the alleged construction defects. The complaint alleged that a water leak in the house caused water damage and resulted in mold growth that was not discovered for several years. 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

Blue-Sky Floods Take a Rising Toll for Businesses

March 04, 2019 — Eric Roston - Bloomberg
When American colonists planned downtown Annapolis, Maryland in 1695, they wanted easy access to the sea. Almost 325 years later, the sea is now closer than ever. It’s so close, in fact, that 16 small businesses lost roughly 2 percent of their revenue in 2017. In a first-of-its-kind study, Stanford University and Naval Academy researchers looked at the effect of sea-level rise on a single city-block. Specifically, they examined sunny-day floods—inundation that occurs when infrastructure built for lower waters is no longer sufficient to keep back the highest tides—at a central parking lot at City Dock. As sea levels rise, these “nuisance floods” are becoming more common. From the 1950s to the early 2000s, the days of flooding in the 27 most vulnerable cities across the U.S. grew from two per year to nearly 12. Read the court decision
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Reprinted courtesy of Eric Roston, Bloomberg

Who Would Face Liability For Oroville Dam Management: Brett Moore Authors Law360 Article

February 23, 2017 — Brett G. Moore - Haight Brown & Bonesteel LLP
On February 12, 2017, the Butte County Sheriff ordered the evacuation of more than 180,000 people in the communities surrounding California’s Oroville Dam after officials spotted severe erosion in the dam’s emergency spillway. The Oroville Dam facilities are managed on by the Federal Energy Regulatory Commission, which licenses the project to California’s Department of Water Resources (DWR). In his Law360 article “Who Would Face Liability For Oroville Dam Management,” Attorney Brett Moore discusses the liability of the agencies involved in managing the Oroville facilities should the dam fail again. Read the court decision
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Reprinted courtesy of Brett G. Moore, Haight Brown & Bonesteel LLP
Mr. Moore may be contacted at bmoore@hbblaw.com

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