Fairfield Connecticut Building Expert Directory

Assembly Bill 1701 Contemplates Broader Duty to Subcontractor’s Employees by General Contractor

August 17, 2017 — Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger
AB 1701 recently passed the Assembly and is pending in the Senate’s Labor and Industrial Relations and Judiciary Committees. The Bill, if signed by the Governor, would create a new section in the California Labor Code (Section 218.7) making “direct contractors” – defined as a contractor “making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work” – liable for wages a subcontractor or sub-subcontractor fails to pay to its employee for work included in the general contractor’s contract with the project owner. Under the new law, direct contractors would be liable for up to one year from the date of completion of the work for unpaid wages, fringe benefits, health and welfare benefits, and pension fund contributions, including interest and state tax payments owed to a subcontractor’s employee. The employee, however, would not be able to recover penalties or liquidated damages from the general contractor. AB 1701 would give the employee, Labor Commissioner, or a joint labor-management cooperation committee the right to enforce the direct contractor’s liability through a civil action. It would also extend to third parties who are owed fringe or other benefit payments or contributions on the employee’s behalf. Pursuant to the proposed language of the new statute, a prevailing plaintiff in such an action would be entitled to their reasonable attorneys’ fees and costs, including expert witness fees. Although Labor Code § 218.7 would impose certain obligations on the subcontractor to provide the direct contractor with relevant project and payroll records, the subcontractor’s failure to comply with those obligations does not relieve the direct contractor from liability. Impact AB 1701’s apparent purpose is to protect employees, an undeniably important legislative goal. However, if passed, the bill could greatly increase general contractors’ exposure when subcontracting work and their cost of doing business. Especially because the new law would not impact existing laws requiring a direct contractor to timely pay a subcontractor. As a result, many coalitions against AB 1701 stress the halting effect this could have on the construction industry as a whole, particularly private construction, which is not as heavily regulated as public works. CGDRB will continue to monitor this Bill and provide updates as developments occur. Reprinted courtesy of Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Ms. Zwart may be contacted at czwart@cgdrblaw.com Read the court decision
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OSHA Penalties—What Happened with International Nutrition

April 15, 2015 — Craig Martin – Construction Contractor Advisor
For those of you in and around Omaha, you recall the tragic collapse of International Nutrition’s plant in early 2014, killing two workers and injuring several others. OSHA swept onto the scene and issued citations. Surprisingly, the penalties totaled only $120,000. While a large sum, one would think two deaths and a score of injuries would generate a larger fine. International Nutrition appealed the penalties and they have now been reduced to $78,000, about a 1/3 reduction. Below, I’ll set forth what happened. The Original Penalties International Nutrition was originally fined $120,650.00 for citations ranging from willful, serious, to other-than-serious. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Savannah Homeowners Win Sizable Judgment in Mold Case against HVAC Contractor

August 10, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
Two Savannah homeowners filed a complaint against a local air conditioning contractor and its insurer, asserting claims of professional negligence and fraud. The couple alleged that in March 2009, the contractor replaced the duct system of their home’s air conditioning unit. The following June, the couple discovered mold growth on the vent covers. They hired an independent contractor who upon inspection concluded that the duct system, which contained holes, gaps, loose connections and insufficient mastic, had been defectively installed in violation of the applicable city ordinances, resulting in excessive moisture and mold contamination throughout the residence. The homeowners alleged that they grew ill with respiratory problems as a result and were subsequently forced to vacate the residence and abandon their personal belongings. Their complaint sought to recover repair costs, moving costs, expenses associated with rental property, costs of living, costs related to the replacement of personal property, medical expenses, punitive damages, attorney’s fees, and costs of litigation. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Drywall Originator Hopes to Sell in Asia

October 22, 2013 — CDJ STAFF
With all the talk of problems with drywall coming from China, one company wants to send drywall in the other direction. USG introduced its “Adamant Panel Board” (later Sheetrock) in 1917. But while USG has been a leader in the drywall market in North America, only about 20% of its sales are outside North America. USG is partnering with Boral Ltd., an Australian building materials manufacturer. Earlier this year, USG sold manufacturing and distribution of certain products to the German company Knauf Verwaltungsgesellschaft. Knauf has sold drywall in the United States that was manufactured in China and found to exit corrosive fumes. Read the court decision
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Eleventh Circuit Finds Professional Services Exclusion Applies to Construction Management Activities

April 29, 2024 — Ashley Kellgren - Traub Lieberman Insurance Law Blog
In Colony Ins. Co. v. Coastal Constr. Mgmt., LLC, 2024 U.S. App. LEXIS 4809 (11th Cir. Feb. 29, 2024), the Eleventh Circuit found the insurer had no duty to defend or indemnify its insured based on a professional services exclusion. In that case, the underlying claims arose out of the construction of a four-story apartment complex. The owner and project developer contracted with the insured to provide construction management services as a construction manager and construction consultant. Several years after the project was completed, the owner filed suit against the architect, general contractor, and the insured alleging numerous defects and deficiencies with respect to the project. The owner asserted claims against the insured for breach of contract and negligence, alleging various failures by the insured in connection with its supervision of construction and failures to properly and timely complete the project, and correct inadequate, defective, and noncomplying work. Colony issued two commercial general liability policies to the insured, both of which contained a professional services exclusion. Although the policy did not expressly define “professional services,” the professional services exclusion provided a non-exhaustive list of examples, including: (2) preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; Read the court decision
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Reprinted courtesy of Ashley Kellgren, Traub Lieberman
Ms. Kellgren may be contacted at akellgren@tlsslaw.com

CA Senate Report States Caltrans ‘Gagged and Banished’ its Critics

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the Sacramento Bee, the California Senate’s latest report said that “at least nine top experts for the new $6.5 billion San Francisco-Oakland Bay Bridge” were “’gagged and banished’” after complaining “about substandard work by the Shanghai, China, firm that built much of the span.” According to the report, reported by the Sacramento Bee, Tony Anziano, Caltrans’ chief executive of the project, “removed or demoted quality-assurance and fabrication engineers who tried to force the contractor to fix cracked roadway welds.” The report did not evaluate the bridge’s quality or safety, however, it “called for greater openness in large construction projects, a review of the weld problems by independent experts, and an investigation of allegations that engineering decisions were made by non-engineers.” Read the court decision
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Asbestos Exclusion Bars Coverage

February 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The broad asbestos exclusion found in a Business Owners policy barred coverage for the insured after it sold a building in which asbestos was discovered. Phillips v. Parmelee, 2013 Wisc. LEXIS 747 (Dec. 27, 2013). Prior to purchasing an apartment building, the insured had the building inspected. The report indicated that the building's heating supply ducts likely contained asbestos. The insured then sought to sell the building. The Real Estate Condition Report stated the insured was not aware of "asbestos or asbestos-containing materials on the premises." The buyers purchased the property. A contractor cut through asbestos-wrapped ducts, dispersing asbestos throughout the building. The buyers sued the insured for breach of contract/warranty and negligence in failing to adequately disclose defective conditions including asbestos. 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

Why Clinton and Trump’s Infrastructure Plans Leave Us Wanting More

September 15, 2016 — Garret Murai – California Construction Law Blog
It’s hard not to pick up your newspaper (or, more likely, your smart phone) and not get caught up reading about Donald Trump’s latest “did he really say that” statement or about the “less than personal” personal email account of Hillary Clinton. But which candidate is better suited to bridge America’s nearly $1.5 trillion infrastructure gap? Clinton the veteran politician? Or Trump the veteran developer? Despite being on opposite sides on nearly every issue from abortion, to taxes, to . . . well, maybe immigration . . . both Clinton and Trump agree that the U.S. needs to invest more in its aging infrastructure. But that’s a little like saying we should take better care of ourselves and exercise more. Of course we should. The question is how. 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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