FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Litigation Roundup: “The New Empty Chair.”

June 04, 2024 — Daniel Lund III - Lexology
In a unanimous opinion, the United States Supreme Court ruled that cases in litigation in federal court but which are determined to be governed by the Federal Arbitration Act should be stayed pending arbitration, not dismissed. Traditionally, some federal circuits treated the text of 9 U.S.C. §3 – which speaks in terms of a stay of a matter filed in court but referred to arbitration (“…shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement…”) – as discretionary, dismissing suits when all of the claims brought in the court were referred to arbitration. In the case, the plaintiffs sued in Arizona state court on labor law violations, and the case was removed to federal court. When the defendant moved to compel arbitration and to dismiss, the plaintiffs “conceded that all of their claims were arbitrable.” Nonetheless, the plaintiffs requested a stay of the case, which the district court refused, dismissing the case without prejudice. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Which Cities have the Most Affordable Homes?

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder analyzed U.S. cities with populations of half a million or more and then filtered further with cities that have a “median new home closing price under $250,000, a first mortgage rate below 4 percent for new homes, and a median new home price per square foot below $125.” Topping the list was El Paso, Texas with the lowest median price ($168,600). Fifth on the list was San Antonio-New Braunfels, Texas with a median price of $230,400. Read the court decision
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Reprinted courtesy of

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Accounting for Payments on Projects Became Even More Crucial This Year

September 21, 2020 — Christopher G. Hill - Construction Law Musings
I discussed several of the statutory changes affecting the construction industry here at Construction Law Musings in the run-up to July 1, 2020. One of those changes, an amendment to Virginia Code Section 43-13, may add another arrow to the collection quiver of subcontractors and suppliers. As part of the previously-linked rundown, I highlighted one of the big additions in 2020, namely the amendment making those pesky clauses that let those up the payment chain from you hold money on “this or any other project” void as against public policy. The other big addition to 43-13 is the change that adds a possible civil cause of action for downstream and unpaid subcontractors and suppliers in the event that funds paid to a general contractor or subcontractor are not first used to pay their downstream contractors and suppliers. Prior to July 1, 2020, this statute provided criminal penalties for such behavior but did not contain the possibility of a civil penalty. The operative language for the change is as follows:

The use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project.

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

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A Classic Blunder: Practical Advice for Avoiding Two-Front Wars

August 23, 2021 — William Underwood - ConsensusDocs
“Ha ha! You fool! You fell victim to one of the classic blunders – the most famous of which is ‘never get involved in a land war in Asia’ – but only slightly less well-known is this: ‘Never go in against a Sicilian when death is on the line.’”[1] Vizzini forgot to include “never fight a two-front war with your owner and a subcontractor” on his list of classic blunders, but it certainly belongs there. This article examines practical tips and tricks for general contractors to avoid the classic blunder of a two-front war, including recommended contract provisions and sound project documentation practices. Admittedly, general contractors face a wide array of obligations on a project. And perhaps one of the most delicate balancing acts is managing relationships with the owner and your subcontractors. But far too often general contractors find themselves in the difficult position of fighting a two-front war against one (or more) of their subcontractors and the project owner. But this does not always have to be the case—there are ways for general contractors to reduce the risk of finding themselves in a two-front war. And every project does not have to devolve in a circular firing squad with you in the middle. That said, this article comes with the caveat that a general contractor cannot avoid a two-front war in every instance, nor does this article examine every imaginable way to reduce the risk of a two-front war (see e.g. https://www.consensusdocs.org/pass-through-subcontractor-claims-liquidating-agreements-and-avoiding-a-two-front-war/). But this article will provide an overview of several key tools that can be used to minimize the risk of falling into a classic blunder. Read the court decision
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Reprinted courtesy of William Underwood, Jones Walker LLP
Mr. Underwood may be contacted at wunderwood@joneswalker.com

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E-Commerce Logistics Test Limits of Tilt-Up Construction

January 28, 2019 — Jeff Rubenstone - Engineering News-Record
While “fulfillment centers” and other e-commerce logistic facilities drive a hot market for the manufacturing sector, traditional construction methods such as tilt-up concrete panels are being pushed to ever-greater heights. At a recent project in Tulsa, Okla., contractor Clayco oversaw installation of tilt-up composite panels that reached 81 ft in height, using an unusual brace and a lot of careful pre-planning. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

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First-Time Homebuyers Make Biggest Share of Deals in 17 Years

February 22, 2018 — Prashant Gopal – Bloomberg
Millennials are playing homeownership catch-up. First-time buyers rushed into the market last year, making 38 percent of all U.S. single-family home purchases, the biggest share since 2000, data released Thursday by Genworth Mortgage Insurance show. The 2.07 million new or existing homes bought by first-timers was 7 percent more than in 2016, according to the insurer, part of Genworth Financial Inc. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg

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Connecticutt Class Action on Collapse Claims Faces Motion to Dismiss

January 02, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court dismissed some insurers from a class action suit alleging failure to provide coverage for collapse claims. Halloran v. Harleysville Preferred Ins. Co., 2018 U.S. Dist. LEXIS 179807 (D. Conn. Oct. 19, 2018). A class of homeowners brought suit in 2016 against their homeowners insurance companies ("defendants") for failure to cover collapse claims. Plaintiffs alleged they bought their homes between 1984 and 2015. Each of the homes had basement walls that were "crumbling and cracking due to the oxidation of certain minerals contained in the concrete." As a result of the deteriorating concrete, plaintiffs claimed that their basement walls were in a state of collapse. 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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How is Negotiating a Construction Contract Like Buying a Car?

March 01, 2017 — Christopher G. Hill – Construction Law Musings
I know, you’re probably looking for a punchline, and likely thinking something along the lines of “only a construction attorney would be sitting in his office and come up with such an analogy,” but I really do think it’s a good one. When you are buying a car, you look for priorities. Is the color what you want? Is the motor a hybrid or a v-6? Does it have Android Auto? What is the fuel mileage? All of these things may be more or less important to you. If you can get your priorities for a price that is attractive, you will likely let some other less important items, e. g. trunk space or rear seat leg room, slide and purchase the car anyway. Furthermore, you may use these minor items as negotiating points to either get one of the priorities or a lower price. Of course the dealership will want to get its priorities, likely a sale and a profit, when negotiating and will have certain items that it won’t move on just as you have terms that you won’t move on. Much like when you walk onto the car lot, and particularly as a subcontractor looking at a contract from a general contractor, or a GC looking at the contract from the owner of a project, a construction contract presented to you is the starting point. When looking at the contract, be sure to have some non-negotiable items in mind when taking a critical eye to the terms of that contract. Some of these terms may be more or less negotiable depending on your experience with the other party to the construction contract. For instance, striking a pay if paid clause may be less important with a paying party with whom you have a 10 year history without payment problems. On the other hand, if it is your first contract with the other party, a stricter list may be required. So, much like a dealer that you know will stand behind its cars, you may be more willing to take more “risk” in entering a construction contract with a trusted/known owner or GC. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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