FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Indiana Court of Appeals Rules Against Contractor and Performance Bond Surety on Contractor's Differing Site Conditions Claim

April 03, 2013 — Brian M. Falcon - Frost Brown Todd LLC
Earlier this year, the Indiana Court of Appeals issued an important opinion that impacts contractors and sureties alike. The decision should give contractors in Indiana pause before ceasing work while a dispute with the owner is pending. Sureties also have been placed on notice that strict compliance with the terms of their bonds is amongst their best defenses to claims made by owners and bond claimants. In Dave's Excavating, Inc. and Liberty Mutual Insurance Co. v. City of New Castle, Indiana, 959 N.E.2d 369 (Ind. Ct. App. 2012), the contractor (“Dave’s”) was the successful bidder on a public sanitary sewer and water main extension project. Dave's procured a performance bond from Liberty Mutual to guarantee its performance obligations to the owner (the "City"). After encountering what it deemed different subsurface conditions—and indeed after having been previously granted a change order to use excavated materials as backfill in light of the subsurface conditions on site—Dave’s placed the project engineer on notice of a differing site conditions claim. The total claim amounted to an 84% increase in the total contract price. With the claim, Dave's advised the project engineer it was ceasing further work until the project engineer provided direction. While the project engineer reviewed the claim, it reminded Dave's of its contractual obligation to "carry on the work and adhere to the progress schedule during all disputes or disagreements with the OWNER." A dispute immediately occurred regarding whether Dave's was required to continue to work while the project engineer resolved the differing site condition claim. After Dave's maintained its position that it was not required to continue to work, the project engineer placed it on notice of default and copied the letter to Liberty Mutual. Read the court decision
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Reprinted courtesy of Brian M. Falcon
Brian M. Falcon can be contacted at http://www.frostbrowntodd.com/contact.html

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New York Nonprofit Starts Anti-Scaffold Law Video Series

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
According to readMedia, The Lawsuit Reform Alliance of New York (LRANY) has released “‘Victims of the Scaffold Law’ video series” that highlights “the impact of New York's ‘Scaffold Law’ on small businesses, taxpayers, and, specifically New York's Minority and Woman Owned Business Enterprises.” The New York Scaffold Law “imposes total liability on contractors and property owners in lawsuits for gravity-related construction accidents, regardless of any contributing negligence by the worker,” reports readMedia. Furthermore, the law “is responsible for over half of the largest settlements in the state and dramatically increases the cost of liability insurance and construction in New York.” Read the court decision
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Solar Energy Isn’t Always Green

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
IEEE Spectrum reported that photovoltaics, used in Solar Energy, “varies substantially by technology and geography” and some emit chemical pollution. However, IEE Spectrum stated that “the industry could readily eliminate many of the damaging side effects that do exist.” One challenge is that “nearly half the world’s photovoltaics are manufactured in China” who, according to IEEE Spectrum, “typically [does] the worst job of protecting the environment and their workers.” It is also difficult for consumers to make choices based upon photovoltaic manufacturer practices, since solar energy doesn’t have a formal ecolabel like Energy Star, IEEE Spectrum reported. Read the court decision
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New Jersey Judge Found Mortgage Lender Liable When Borrower Couldn’t Pay

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the New Jersey Law Journal, Freedom Mortgage Corporation has to pay treble damages and legal fees after Bergen County Superior Court Judge Gerald Escala found the company “liable under New Jersey’s Consumer Fraud Act for providing a home refinance loan to a 70-year-old borrower it should have known would be unable to make the payments.” “Escala further ruled that Freedom Mortgage must hold off on obtaining a foreclosure judgment for a year to allow an opportunity for borrower Mamie Major to look for someone to buy the property or to obtain refinancing elsewhere,” the New Jersey Law Journal reported. Read the court decision
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Safety, Compliance and Productivity on the Jobsite

November 18, 2019 — Matthew Ramage - Construction Executive
With any project, managing a large contingency of workers—all with varying levels of security clearance—can be a logistical headache. On the majority of construction sites, managers lack the resources to quickly and accurately identify all onsite personnel and ensure the right labor, equipment and materials are in the right place at the right time. Equally important, construction managers need to know if worker certifications are current and only allow access to authorized areas. Multiple factors compound the need for better transparency across the workforce, including:

• Safety. Construction work is inherently dangerous. In 2017, nearly 1,000 fatalities occurred on construction sites. This means that the industry accounted for more than 20% of private sector fatalities across all industries.
• Regulatory. The Federal government has a heightened awareness of jobsite dangers and is targeting companies that are not making every effort to maximize the workers’ safety.
• Security. Sites in urban environments require round-the-clock protection from urban explorers, thieves and the general public.
• Employee wage disputes. Lawsuits and disputes over wages and hourly employment are increasing.
• Reduced productivity. It can be difficult to measure and track productivity in construction.

Reprinted courtesy of Matthew Ramage, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Construction Contract Provisions that Should Pique Your Interest

September 30, 2019 — Christopher G. Hill - Construction Law Musings
Construction contracts are a big part of my legal practice and the drumbeat here at Construction Law Musings. Why? Because not only does your construction contract set the expectations and “rules of the game” for a construction project, it will be read strictly and literally by the Virginia courts should there be a dispute. For these reasons, construction professionals need to be alert for the language in certain key clauses in a construction contract to assure that these clauses are as balanced as possible and also well understood. Here are my “Top Five”:

1. “Pay if Paid”- These clauses are almost always in the subcontracts between a general contractor and a subcontractor and are enforceable in Virginia if drafted correctly and under the proper circumstances.
2. Change Orders- Whether work is subject to a change order and the required payment for any changed work are often a key source of contention (read legal fees). A properly drafted and followed change order provision can help avoid much of this contention.
3. Indemnity- Much has been made in recent years about indemnity provisions and their enforceability. All parties in the construction payment chain can and should be aware of how to best draft their indemnity provisions to make them enforceable. Failure to do so can be catastrophic.

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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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Eleven WSHB Attorneys Honored on List of 2016 Rising Stars

September 01, 2016 — Beverley BevenFlorez-CDJ STAFF
Wood Smith Henning & Berman LLP (WSHB) announced that eleven of their lawyers were recognized on the list of 2016 Rising Stars®:

• Raymond Babaian: Partner, Rancho Cucamonga
• Emil Macasinag: Senior Counsel, Los Angeles
• Amy Pennington: Partner, Los Angeles
• Christopher Perez: Senior Counsel, Rancho Cucamonga
• Keith Smith: Partner, Riverside
• Kevin Gillispie: Partner, Concord
• Alicia Kennon: Senior Counsel, Concord
• Eugene Zinovyev: Senior Associate, Concord
• Timothy Repass: Partner, Seattle and Portland
• Jodi Mullis: Senior Associate, Phoenix
• Vincent Beilman: Partner, Tampa and Miami
“We are pleased to have 11 of our best selected for this year’s lists,” Dan Berman, Firm Chairman and Founding Partner stated. “We value our selections to Rising Stars because the choices come from our peers. It is truly an honor and a validation of all of the great work we do at WSHB.” Read the court decision
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Colorado House Bill 17-1279 – A Misguided Attempt at Construction Defect Reform

March 29, 2017 — David McClain - Colorado Construction Litigation
On March 17th, House Bill 17-1279, concerning the requirement that a unit owners’ association obtain approval through a vote of unit owners before filing a construction defect action, was introduced and assigned to the House State, Veterans, and Military Affairs Committee. The bill is currently scheduled for its first committee hearing on March 29th, at 1:30 in the afternoon. While, on its face, this appears to be a step in the right direction towards instituting “informed consent” before an HOA can file a construction defect action, the bill actually restricts the ability of developer to include more stringent requirements in the declaration of covenants, conditions, and restrictions for an association, thereby lowing the threshold of “consent” required to institute an action. House Bill 17-1279 would amend C.R.S. § 38-33.3-303.5 to require an association’s executive board to mail or deliver written notice of the anticipated commencement of a construction defect action to each unit owner and to call a meeting of the unit owners to consider whether to bring such an action. Any construction professional against which a claim may attend the unit owners’ meeting and have an opportunity to address the unit owners and may include an offer to remedy any defect in accordance with C.R.S. § 13-20-803.5(3). The conclusion of the meeting would initiate a 120-day voting period, during which period the running of any applicable statutes of limitation or repose would be tolled. Pursuant to this bill, an executive board may only institute a construction defect action only if authorized by a simple majority of the unit owners, not including: 1) any unit owned by any construction professional, or affiliate of a construction professional, involved in the design, construction, or repair of any portion of the project; 2) any unit owned by a banking institution; 3) any unit owned in which no defects are alleged to exist, and/or 4) any unit owned by an individual deemed “nonresponsive.” Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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