Cambridge Massachusetts Building Expert Directory

Do Construction Contracts and Fraud Mix After All?

October 27, 2016 — Christopher G. Hill – Construction Law Musings
On several occasions here at Construction Law Musings, I’ve discussed the fact that, with a few exceptions, fraud claims and written construction contract based claims do not mix. One of the exceptions to the so called “economic loss rule” that would seem to preclude both fraud and contract claims in the same lawsuit is where fraud is used to induce the contract in the first place. This exception would only apply where an independent duty, wholly outside of the duties created by the contract, is properly plead and proven to the court. For the same reason, namely a separate duty outside of the contract, the Virginia Consumer Protection Act (“VCPA”) may allow for an exception that would allow a cause of action under this statute. Up until recently, the courts of Virginia have used these exceptions sparingly. However, the recent Loudoun County, VA Circuit Court opinion in Interbuild, Inc. v. Sayers (opinion also found at Virginia Lawyers Weekly) may signal a broadening of these exceptions. In the Interbuild case, the Court considered a claim for fraud in the inducement and breach of the VCPA. The basic facts plead by the plaintiffs were that Interbuild induced them into the contract through statements that it had been an established business since 1981, the project did not require a building permit, it had obtained all necessary subcontractor prices and would provide full-time project supervision, the project would be completed within 16 weeks, 4000 PSI concrete would be used for the project and that the project would be located in the agreed-upon area depicted and that they reasonably relied on these representations in deciding to enter into the contract to build their recreational facility. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Got Licensing Questions? CSLB Licensing Workshop November 17th and December 15th

November 15, 2017 — Garret Murai - California Construction Law Blog
A rare opportunity to hear it straight from the folks who process the applications . . . CSLB Licensing Workshop Offers Helpful Information for Applicants The Contractors State License Board (CSLB) is hosting free workshops for those looking to become a licensed contractor. Current licensees are encouraged to pass this information along to their workers and to those who might be interested in learning more about the application process. 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

Serving the 558 Notice of Construction Defect Letter in Light of the Statute of Repose

November 06, 2018 — David Adelstein - Florida Construction Legal Updates
Florida Statutes Chapter 558 requires a Notice of Construction Defect letter (“558 Notice”) to be served before a construction defect lawsuit is commenced. This is a statutory requirement unless contractually waived for a completed project when latent defects or post-completion construction or design defects are pursued. A recent Florida case held that this statutory requirement is NOT intended to bar a lawsuit based on Florida’s ten-year statute of repose for construction defects IF the 558 Notice is timely served within the statute of repose period. After the expiration of the statute of repose period, a construction defect lawsuit can no longer be commenced. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Read Carefully. The Insurance Coverage You Thought You Were Getting May Not Be The Coverage You Got

November 27, 2013 — Bret Cogdill — Higgins, Hopkins, McLain & Roswell, LLC
A recent U.S. District Court case in Colorado highlighted the importance for an insured to read and understand the terms of its insurance policy. The case 2-BT, LLC v. Preferred Contractors Insurance Company Risk Retention Group, LLC, Civil Action No. 12CV02167PAB, was a controversy between an insured’s expectations for coverage, and the terms and exclusions of the insurance policy. 2-BT is a heating, ventilation, and air-conditioning (“HVAC”) contractor, which utilizes soldering devices and heat sources among other tools for its trade. 2-BT needed liability insurance to cover its work, and found a provider, Preferred Contractors Insurance Company Risk Retention Group, LLC (“PCIC”). 2-BT read PCIC’s online materials, which stated “PCIC’s personalized underwriting process allows us to tailor coverage to properly outfit the contractor with excellent coverage and rates.” 2-BT filled out a policy application, which included a description of the type of HVAC work it performs, initialed several sections, and signed it. One of the initialed paragraphs on the application, “Policy Exclusions,” stated that damages arising from “fungi/bacteria,” “open flame,” and “use of heating devices,” was not covered. PCIC issued a policy to 2-BT, which included a section titled, “Additional Exclusions” that excluded coverage for mold and damage related to heating elements among others. Read the court decision
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Reprinted courtesy of Bret Cogdill
Bret Cogdill can be contacted at cogdill@hhmrlaw.com

Bert L. Howe & Associates to Join All-Star Panel at West Coast Casualty Seminar

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
Don MacGregor of Bert L. Howe & Associates, a consulting firm, will join fellow panelists Hon. Peter Lichtman (ret), Hon. Nancy Wieben Stock (ret), Peter S. Curry, Brian Kahn, Esq., and Paul R. Kiesel, Esq in a break-out discussion entitled “Working Smarter with Technology” at this year’s West Coast Casualty Construction Defect Seminar being held May 15th-16th at the world-famous Disneyland Hotel in Anaheim, California. West Coast Casualty's Construction Defect Seminar is the largest seminar of its kind worldwide focusing on all of the elements of the prosecution, defense, coverage and technologies of construction defect claims and litigation from a national perspective. With offices in California, Nevada, Colorado, Florida and Texas (Houston & San Antonio), Bert L. Howe & Associates provides construction consulting and expert witness services to insurance professionals and lawyers specializing in construction defect litigation, construction risk analysis, and property claims arising from construction-related activities. Download an Invitation and Register... Read the court decision
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Understanding California’s Pure Comparative Negligence Law

November 13, 2023 — Yaron Shaham - Kahana Feld
In order for a plaintiff to prove a defendant is negligent, the plaintiff must prove the defendant (1) owed a duty to plaintiff, (2) breached that duty, (3) the breach was the actual and proximate cause of plaintiff’s injury, and (4) the resulting monetary damage. However, for both plaintiffs and defendants it is not an all or nothing game in California. This is because California is a pure Comparative Negligence state. California’s Comparative Negligence law provides that even if a plaintiff is deemed 99% at fault, the plaintiff can still recover 1% in damages from a defendant. Thus, even if a plaintiff is deemed to be more than 50% (or even 99%) at fault for the incident, the plaintiff could still recover some monetary amount, or the defendant will still have to pay plaintiff, depending on how you see it. In most instances, a jury decides what percentage of fault to assign to each party. Just as a plaintiff must prove he/she/its negligence case against a defendant, if the defendant claims plaintiff was partially responsible for the incident, the defendant must prove plaintiff was also negligent and said negligence contributed to plaintiff’s injuries. The total amount of monetary responsibility distributed among all defendants and plaintiffs must equal 100%. As crazy as it may sound, a plaintiff found to be 99.9% at fault, is still entitled to recover 0.01% from a defendant in California. Read the court decision
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Reprinted courtesy of Yaron Shaham, Kahana Feld
Mr. Shaham may be contacted at yshaham@kahanafeld.com

2021 California Construction Law Update

December 29, 2020 — Garret Murai - California Construction Law Blog
This Christmas looks to be a Blue Christmas as the nation grapples with rising infection, hospitalization and death rates due to COVID. But there’s always 2021 to look forward to, which, of course, also means new laws impacting the construction industry. Due to COVID there were two unscheduled breaks during the second half of the 2019-2020 legislative session as legislators sheltered-in-place. As a result, there were fewer bills introduced and enacted than in previous legislative session. A total of 2,223 bills were introduced in 2020 compared to 2,625 bills in 2019, of which 428 bills made it to the Governor’s desk, and 372 were signed into law. Among the bills signed into law were bills, unsurprisingly, related to COVID. In addition, the 2020 legislative session saw the passage of legislation creating a new licensing classification for residential renovation contractors, new laws expanding and clarifying when prevailing wages are required to be paid, and legislation extending the period during which seniors can cancel certain contracts. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

A Teaming Agreement is Still a Contract (or, Be Careful with Agreements to Agree)

November 18, 2019 — Christopher G. Hill - Construction Law Musings
I have discussed teaming agreements in this past here at Construction Law Musings. These agreements are most typically where one of two entities meets a contracting requirement but may not have the capacity to fulfill a contract on its own so brings in another entity to assist. However, these agreements are contracts and are treated as such here in Virginia with all of the law of contracts behind them. One illustrative case occurred here in Virginia and was decided by the Virginia Supreme Court. That case is CGI Fed. Inc. v. FCi Fed. Inc. While this is not strictly a “construction” case, it helps lay out some of the pitfalls of teaming agreements in general. In this case, the parties entered into a fairly typical small business (FCI) Big Business (CGI) teaming arrangement for the processing of visas for the State Department. The parties negotiated the workshare percentage (read payment percentage) should FCI get the work and the teaming agreement set out a framework for the negotiation of a subcontract between FCI, the proposed general contractor, and CGI, the proposed subcontractor. After a while working together, FCI submitted a proposal to the State Department and as part of the negotiations of this proposal, the work percentage for CGI was lowered in exchange for some management positions for CGI relative to the work by amendment to the original teaming agreement. However, one day later FCI submitted a proposal to the State Department that not only didn’t include the management positions, but further lowered CGI’s workshare. Read the court decision
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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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