Fairfield Connecticut Building Expert Directory

Construction Litigation Roundup: “Tear Down This Wall!”

September 06, 2023 — Daniel Lund III - Lexology
If you enter a contract to do that in Louisiana, you had better have Louisiana contractor’s license! It is now axiomatic in Louisiana that when a Louisiana contractor’s license is required, the contract for work performed by an unlicensed contractor is an “absolute nullity,” such that the contract is deemed never to have existed. While Louisiana does not prohibit (as would be the case in certain other states) that contractor from quantum meruit/unjust enrichment recovery, who wants to rely on those noncontractual bases for recovery? After any hurricane in Louisiana, out-of-state contractors swoop in. In the case of a water mitigation company from Texas working on a property that was water damaged by Hurricane Ida, the customer refused to pay for services rendered and then defended against payment by urging that work performed by the mitigation firm required a Louisiana contractor’s license – which the mitigation firm lacked. 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

Construction Mezzanine Financing

March 29, 2017 — Tim Davis & Steven Coury - White and Williams LLP
Construction mezzanine lending is on the rise and more development deals are getting done with a capital stack that includes mezzanine debt in addition to the traditional components of sponsor equity and senior mortgage debt. Below are important issues and concepts to bear in mind when structuring the financing of a construction project that includes a mezzanine debt component. Funding Sequence Funding Sequence When will the proceeds of the mezzanine loan be advanced? In some instances, the mezzanine loan proceeds will be advanced only after all of the borrower’s equity has been contributed to the construction of the project. In other instances, the borrower’s equity and the mezzanine loan proceeds go in either pari passu or simultaneously at another ratio. If the equity is not entirely contributed in advance, the mezzanine lender may require that the uncontributed equity be held by the mezzanine lender or held in a pledged account. The mezzanine lender may also further mitigate the risk of non-funding of the equity by requiring an equity funding guaranty (as discussed below). Additionally, when will the mezzanine loan proceeds be advanced in relation to the senior mortgage loan proceeds? Will the entire mezzanine loan be advanced prior to any senior mortgage loan advance or will they be advanced pari passu? Depending on the business deal, the mezzanine loan agreement will need to reflect how and when the equity, the mezzanine debt, and the mortgage debt will be advanced. Reprinted courtesy of Tim Davis, White and Williams LLP and Steven Coury, White and Williams LLP Mr. Davis may be contacted at davist@whiteandwilliams.com Mr. Coury may be contacted at courys@whiteandwilliams.com Read the court decision
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First Circuit Finds No Coverage For Subcontracted Faulty Work

December 17, 2024 — Eric Hermanson & Austin Moody - White and Williams LLP
After almost two years' deliberation, the First Circuit last week issued its long-awaited decision in Admiral Ins. Co. v. Tocci Bldg. Corp.[1]: affirming on other grounds, and leaving in place a district court decision that found subcontracted faulty work was not an "occurrence" and did not lead to covered “property damage” under Massachusetts law. The decision leaves Massachusetts among a number of states where general contractors should not expect coverage from their commercial general liability (CGL) insurers for damage falling within the contractor’s scope of work. Since the "scope of work" – where general contractors are involved – often encompasses an entire project, contractors who want coverage in Massachusetts should take care to make alternative arrangements: transferring risk to subcontractors through indemnity provisions and additional-insured endorsements, or relying on other policy forms where available. Reprinted courtesy of Eric Hermanson, White and Williams LLP and Austin Moody, White and Williams LLP Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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Withdrawal Liability? Read your CBA

July 10, 2018 — Wally Zimolong – Supplemental Conditions
Withdrawal liability is a huge issue facing unionized employers. According to Bloomberg, 93% of the Top 200 largest pension plans are underfunded by a combined $382 billion. Contractors that withdraw from a multi-employer pension plan can face hundreds of thousands or millions of dollars in assessed withdrawal liability. However, employers may be able to avoid that liability, plus the legal and consulting fees to fight it, by simply reading their collective bargaining agreement. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Are Construction Defect Claims Covered Under CGL Policies?

January 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Courts have ruled differently as to whether a construction defect is or is not an “occurrence,” according to the publication Business Insurance. Four states—Colorado, Arkansas, Hawaii and South Carolina—have sought to remove ambiguity by passing statutes that define construction defect claims as occurrences. Colorado, the first state to create such a statue, passed H. B. 10-1394 in May 2010. The state legislature passed the statute “because of the complex and lengthy endorsements and exclusions facing construction professionals, according to the bill” reported Business Insurance. The article stated that “incongruous court decisions over whether construction defect claims are covered under CGL policies continue to drive uncertainty in coverage and increase litigation costs.” Read the court decision
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Property Owners Sue San Francisco Over Sinking Sidewalks

June 20, 2022 — Beverley BevenFlorez – CDJ Staff
Residents of the Mission Bay neighborhood seek “to hold the City of San Francisco responsible for raising up the sinking sidewalks” reported KRON 4. The suit alleges that the city should shoulder the responsibility for the necessary work needed for the infrastructure. Historically, “the neighborhood around the Chase Center east of Interstate 280 was part of the bay,” according to SF Gate. Later, “the area was filled with dirt and rock and further filled with rubble after the 1906 earthquake.” In 1998, further development took place. All of the “new occupied buildings in Mission Bay, such as the UCSF campus, the Chase Center and the 6,000 residential units there, are anchored into the bedrock," but "the sidewalks, streets and parks are not, and that's a problem.” "We're not asking for a handout; we're asking for a hand. We want them to step forward and make the repairs that they can actually implement," Scott Mackey, Partner at Berding | Weil, told CBS News. "Everyone understood that it's built on fill and built in an area where there would be some settlement. But, there also is an expectation that when the city turns over the infrastructure that that homeowners and property owners have to maintain, is that it's built correctly - that they're able to maintain it. The homeowners cannot continually chase the differential movement.” Read the full story at KRON 4... Read the full story at SF Gate... Read the full story at CBS News... Read the court decision
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Understanding Indiana’s New Home Construction Warranty Act

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Marisa L. Saber on the Subrogation & Recovery Law Blog, discussed Indiana’s New Home Construction Warranty Act, and how it can benefit both builders and plaintiffs in construction defect cases. Saber stated that the “Indiana New Home Construction Warranty Act (the “Act”) (see Indiana Code §32-27-2-1 et. seq.) allows a builder to provide specific warranties and disclaim all implied warranties if the text of the statute is followed.” Furthermore, the warranties must be backed by an insurance policy. Saber answers the question as to why a builder would choose to provide express warranties: “The likely answer is that it allows the builder to have control over its liability if a construction defect occurs.” For instance, “[i]f a builder provides express warranties via the Act, it is assured that any warranty liability will be covered by insurance.” This benefits a plaintiff working in a subrogation case, “as there will be guaranteed insurance for the construction defect if the builder complies with the Act.” Read the court decision
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How VR and AR Will Help in Remote Expert Assistance

June 10, 2019 — Aarni Heiskanen - AEC Business
The speed and quality of maintenance and repair are critical in the modern, technology-packed built environment. Consequently, these were considered in an experimental project that tested how remote expert assistance using VR and AR technologies could help improve the productivity of field service. I’m in a hall overlooking white mountain tops. It’s snowing. In front of me stands an avatar that explains to me what we can do together in this virtual space. He jumps away but I can still hear his voice from behind me. He fetches a chair and hands it to me. I grab it and inspect it. The next moment, a video starts playing on the wall. Later, my host shows me how to draw in three dimensions, how to make sticky notes, how to share a PC desktop, and how to use other collaboration tools. This experience took place at FAKE Production, a Helsinki-based digital image, animation, and VR/AR studio. With VR glasses and hand-held controllers, I had tried out Glue, their universal collaboration platform. This is a soon-to-be-released service that you can use with VR/AR gear and on mobile and desktop devices. Glue is also one of the solutions tested in an experimental project called Expert assistance using VR and AR glasses. In this project, Sovelto, a Finnish educational company, wanted to explore the possibilities of using VR and AR solutions for field service. Over ten organizations took part in the project, which received funding from KIRA-digi, the national built environment digitalization program. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES