FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Suing the Lowest Bidder on Public Construction Projects

September 17, 2015 — Craig Martin – Construction Contractor Advisor
The California Court of Appeals has allowed the second lowest bidders on public construction projects to sue the lowest bidder where it appears that the lowest bidder was only the lowest because it paid its employees less than the established prevailing wage. This is a novel theory for recovery, but may provide for an opportunity to challenge improperly low bids. Background Between 2009 and 2012, American Asphalt outbid two asphalt companies on 23 public works projects, totaling nearly $15 million. The two asphalt companies sued American Asphalt alleging that they were the second lowest bidder all 23 construction projects and they would have been the lowest had American Asphalt paid its employees the required prevailing wage. Importantly, the municipality awarding the contracts was not sued by the second lowest bidders. Instead, the second lowest bidders alleged that American Asphalt intentionally interfered with a business expectancy and sought damages from American Asphalt, specifically the profit that they lost by not performing these contracts. 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

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Triable Issue of Fact Exists as to Insurer’s Obligation to Provide Coverage Under Occurrence Policy

March 08, 2021 — Valerie A. Moore & Kathleen E.M. Moriarty – Haight Brown & Bonesteel LLP
In Guastello v. AIG Specialty Ins. Co. (No. G057714. filed 2/19/21 ord. pub. 2/23/21), a California appeals court held that triable issues of material fact exist which precluded summary judgment for an insurer seeking to disclaim coverage on the basis that the “occurrence” pre-dated the policy period where a dispute exists as to the timing of the subject “occurrence.” In Guastello, a subcontractor built retaining walls from 2003 to 2004 for a housing development in Dana Point, California. In 2010, one of these retaining walls collapsed causing damage to a residential lot owned by Thomas Guastello. Reprinted courtesy of Valerie A. Moore, Haight Brown & Bonesteel LLP and Kathleen E.M. Moriarty, Haight Brown & Bonesteel LLP Ms. Moore may be contacted at vmoore@hbblaw.com Ms. Moriarty may be contacted at kemoriarty@hbblaw.com Read the court decision
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Evaluating Smart Home Technology: It’s About More Than the Bottom Line

May 03, 2021 — James W. McPhillips & Rachel Newell - Gravel2Gavel Construction & Real Estate Law Blog
Outfitting a commercial real estate space with smart technology can be a significant cost. While the long-term benefits and strategic improvements we’ve discussed previously can make that investment worthwhile, the evaluation period is critical to ensure an impactful ROI. Property developers, owners, and managers should undertake a rigorous evaluation process to ensure the technology procurement aligns with the project’s overall financial plan. And this is not just about getting the cost right. If the technology does not meet the needs of the space, then all the smart technology in the world will not prevent the project from being a sunk cost. Do the Research so You Know … The Technology. While the RFP is a key step of the procurement process, a more informal research phase should be undertaken first. Smart technology is a rapidly evolving field, and before reaching out to vendors, the business should ensure that it understands what is available—both in terms of the kinds of technology that can be implemented, and the various companies that offer solutions. Gathering this information early will yield results that align more closely with a particular building’s needs. Reprinted courtesy of James W. McPhillips, Pillsbury and Rachel Newell, Pillsbury Mr. McPhillips may be contacted at james.mcphillips@pillsburylaw.com Ms. Newell may be contacted at rachel.newell@pillsburylaw.com Read the court decision
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Environmental Justice Update: The Justice40 Initiative

April 29, 2024 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
Soon after taking office, President Biden issued Executive Order 14008, entitled, “Tackling the Climate Crisis at Home and Abroad.” This is an unusually long and complex executive order and includes many provisions relating to environmental justice and the plight of “disadvantaged communities” that are overwhelmed by many environmental threats. Section 223 of the Order describes the President’s “Justice40 Initiative,” which is designed to ensure that 40% of Federal benefits flow to disadvantaged communities through an “all of government approach.” There is a recognition that some disadvantaged communities lack the personnel and resources to take advantage of this Initiative, so technical training funds will be made available. The Order establishes new offices throughout the Federal bureaucracy to handle and expedite environmental justice matters. The Office of Management and Budget (OMB) and the Council on Environmental Quality (CEQ) play a large role in implementing the Initiative by issuing appropriate guidance and assisting the Federal agencies to locate, among the thousands of programs they supervise, suitable programs that will assist disadvantaged communities. At last count, 518 Federal programs administered by 19 distinct Federal agencies could be a good source for the resources needed by disadvantaged communities to cope with air and water pollution and solid waste issues. Direct grants will be made in many cases, and other programs require the community to apply for the funds promised by the Executive Order. In addition, the Order requires participating Federal agencies to assess the value and effectiveness of the benefits bestowed. OMB and the CEQ have issued guidance documents and conducted many meetings with key personnel and members of the disadvantaged communities. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power

October 28, 2024 — Mark Chediak - Bloomberg
A growing number of utilities are resorting to an extreme measure to prevent their equipment from sparking catastrophic wildfires: turning off the power. Electric companies serving about 24 million homes and businesses across the fire-prone US West now have plans to preemptively cut electricity during dangerous fire conditions, according to an analysis of data compiled by researchers at Stanford University. The proactive blackouts, however, run counter to the power companies’ main mission — which is to keep the lights on. And that’s angering customers and officials. Lawsuits — and the billions of dollars of damage claims that come with them — are an increasing concern among utilities, said Michael Wara, who leads the Climate and Energy Policy Program at Stanford University. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg

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Sureties and Bond Producers May Be Liable For a Contractor’s False Claims Action Violation

October 26, 2017 — Michael C. Zisa & Susan Elliot – Peckar & Abramson, P.C.
Two recent decisions from the United States District Court for the District of Columbia and the United States Court of Federal Claims highlight that sureties and bond producers are not immune to the potentially severe consequences of the False Claims Act (“FCA”) and related federal fraud statutes. In each case, the Court determined that sureties and bond producers can face potential liability under these fraud statutes for direct and indirect submission of false claims to the federal government Reprinted courtesy of Michael C. Zisa, Peckar & Abramson, P.C. and Susan Elliott, Peckar & Abramson, P.C. Mr. Zisa may be contacted at mzisa@pecklaw.com Ms. Elliott may be contacted at selliott@pecklaw.com Read the court decision
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Maryland Contractor Documents its Illegal Deal and Pays $2.15 Million to Settle Fraud Claims

January 07, 2015 — Craig Martin- Construction Contractor Advisor Blog
Why would a contractor create a contract for illegal work? I really don’t know. Late last year, the FBI announced that a Maryland contractor, Forrester Construction Company, agreed to pay $2.15 million dollars to resolve a criminal investigation into alleged fraud in connection with the use of disadvantaged business enterprises involving more than $145 million of District of Columbia government contracts. 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

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Tenants Underwater: Indiana Court of Appeals Upholds Privity Requirement for Property Damage Claims Against Contractors

April 25, 2022 — Melissa Kenney - The Subrogation Strategist
In United States Automatic Sprinkler Corp. v. Erie Ins. Exch., et al., No. 21A-CT-580, 2022 Ind. App. LEXIS 87 (Automatic Sprinkler), the Court of Appeals of Indiana (Court of Appeals) considered whether there is a privity requirement for property damage claims against contractors. The court imposed a privity requirement. The court also addressed whether a subrogation waiver in a contract with a tenant applied to damage caused by work done outside the contract, at the landlord’s request. The court held that the waiver did not apply. In this case, United States Automatic Sprinkler (Automatic Sprinkler) contracted with a tenant (Contract Tenant) to inspect and test a sprinkler system at a commercial building in Indiana. The contract included a waiver of subrogation provision. The building landlord subsequently hired Automatic Sprinkler to repair a leak in the sprinkler system. After completing the repairs, the system failed and flooded the building, causing significant property damage to several tenancies. Read the court decision
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Reprinted courtesy of Melissa Kenney, White and Williams LLP
Ms. Kenney may be contacted at kenneyme@whiteandwilliams.com

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