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The Connecticut Appellate Court Decides That Construction Contractor Was Not Obligated To Continue Accelerated Schedule to Mitigate Its Damages Following Late Delivery of Materials by Supplier

April 11, 2022 — Robert M. Barrack - Gordon & Rees
In United Concrete Prods. v. NJR Constr., LLC, 207 Conn. App. 551, 263 A.3d 823 (2021), the Connecticut Appellate Court has issued a decision that should be of interest to the Connecticut construction industry and the construction bar. The lawsuit arose out of the late delivery of materials on a construction project, which is a frequent problem on construction projects. In United Concrete Products, the defendant general contractor, NJR Construction, LLC (“NJR”) was retained by the State of Connecticut Department of Transportation (“DOT”) to replace a bridge over the Hockanum River (“Project”). Id. at 555-58 (2021). The Prime Contract provided that NJR with an eight-week time-frame to perform the work, at which time the road would be closed to traffic. Id. The Prime Contract also provided for a bonus of $3,000 for each day the road was opened to traffic prior to the eight week deadline of August 8, 2016, and for liquidated damages of $3,000 for each day the road remained closed beyond the deadline. Id. NJR subsequently entered into a purchase order (“Subcontract”) with the plaintiff, United Concrete Products, Inc. (“United”), whereby United agreed to provide certain concrete components for the Project, including ten pre-stressed concrete beams. Id. The Subcontract required that United deliver the concrete beams by June 7, 2016, but, NJR did not actually schedule the delivery until June 29, 2016. Id. Nevertheless, even with that schedule NJR could have reopened the road by July 19, 2016, which would have allowed it to receive the full $60,000 incentive bonus. However, United did not deliver the concrete beams until July 26, 2016, which caused NJR to lose the incentive bonus, be assessed liquidated damages by the DOT, and to incur additional delay damages. Id. After deducting the amount of $179,500 in damages that it incurred due to United’s late delivery of the beams, NJR paid United the balance of $66,074.75. Id. Read the court decision
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Reprinted courtesy of Robert M. Barrack, Gordon Rees Scully Mansukhani, LLP
Mr. Barrack may be contacted at rbarrack@grsm.com

Dust Obscures Eleventh Circuit’s Ruling on “Direct Physical Loss”

October 12, 2020 — Walter J. Andrews, Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery Blog
On August 18, 2020, the United States Court of Appeals for the Eleventh Circuit affirmed a District Court’s 2018 ruling that Sparta Insurance Company need not cover a south Florida restaurant’s lost income and extra expenses resulting from nearby road construction. But, in doing so, the appeals court appears to deviate from even its own understanding of “direct physical loss” under controlling Florida law. In the underlying coverage action, the insured, Mama Jo’s Inc. operating as Berries in the Grove, sought coverage under its “all risk” commercial property insurance policy for business income loss and incurred extra expenses caused by construction dust and debris that migrated into the restaurant. Reprinted courtesy of Walter J. Andrews, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Increases in U.S. Office Rents Led by San Jose and Dallas

October 01, 2014 — Hui-yong Yu – Bloomberg
San Jose, California, and Dallas led the U.S. in office-rent increases in the third quarter as cities benefiting from growth in the technology and energy industries outperformed the gradual national recovery. Rents after any landlord discounts, known as effective rents, climbed 6.7 percent from a year earlier in San Jose, compared with the U.S. average increase of 2.6 percent, property researcher Reis Inc. (REIS) said. Dallas rents rose 5.2 percent, followed by San Francisco’s 5.1 percent gain, Houston’s 4.4 percent increase and New York’s 3.9 percent advance. The national sluggishness in the office market’s growth is being bucked by parts of Northern California and Texas, where large bases of technology or energy workers drive demand for space, Reis said. Throughout the U.S., increases in office occupancies show that the market “is in the midst of a recovery,” according to the New York-based company. Read the court decision
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Reprinted courtesy of Hui-yong Yu, Bloomberg
Hui-yong Yu may be contacted at hyu@bloomberg.net

Affirmed: Insureds Bear the Burden of Allocating Covered Versus Uncovered Losses

September 28, 2017 — C. Lily Schurra & K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.
The Second Circuit recently affirmed a district court decision that an insured bears the burden of establishing what portion of a jury verdict constitutes covered damages1. The case arose out of claims for property damage resulting from construction defects in a homebuilding project. The homeowners fired the construction manager, J. Barrows, Inc. (“JBI”), who then sued the homeowners in state court for unpaid fees (the “Underlying Action”). The homeowners counterclaimed, alleging breach of contract and negligence. JBI’s commercial general liability insurer, Harleysville Worcester Insurance Company (“Harleysville”), agreed to defend JBI under a reservation of rights. Reprinted courtesy of C. Lily Schurra, Saxe Doernberger & Vita, P.C. and K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. Ms. Schurra may be contacted at cls@sdvlaw.com Ms. Byrd may be contacted at kab@sdvlaw.com Read the court decision
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Legal Fallout Begins Over Delayed Edmonton Bridges

June 22, 2016 — Scott Van Voorhis - Engineering News-Record
The project teams for Edmonton’s two problem bridge-replacement projects have put most of their woes behind them—if trips to civil court and possible late-completion penalties are excluded. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, Engineering News-Record
ENR may be contacted with questions or comments at ENR.com@bnpmedia.com

Washington State May Allow Common Negligence Claims against Construction Professionals

November 20, 2013 — CDJ STAFF
Lane Powell, a law firm with offices in Washington, Oregon, Alaska, and London has issued a construction law update on a recent decision of the Washington Supreme Court. The case involved a development firm that sued its engineering firm. The developer had gained preliminary approval to develop two short plats, and after the approvals expired, sought the assistance of the engineering firm in regaining approval. Eventually, the developer lost the plats to foreclosure and sued the engineering firm. The Washington Supreme Court rejected most of the developer’s claims in the case, but sent the negligence claims back to the trial court. The Lane Powell construction law update notes that “the record didn’t adequately establish the scope of the professional obligations incorporated into the contract, the court refused to determine if any of the engineer’s duties to the plaintiffs arose independently of the contract.” Read the court decision
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Three Kahana Feld Attorneys Selected to 2024 NY Metro Super Lawyers Lists

October 28, 2024 — Linda Carter - Kahana Feld
Kahana Feld is pleased to announce that Tim Capowski was selected to the 2024 NY Metro Super Lawyers list, and Christopher Theobalt and Sofya Uvaydov were selected to the 2024 NY Metro Rising Stars list. All three attorneys were recognized in the Appellate practice area. Tim Capowski is a partner at Kahana Feld and chair of the firm’s National Appellate Litigation & Consulting Group. He has spent the better part of three decades at the forefront of the insurance defense bar. Tim has litigated hundreds of appeals and thousands of motions in state and federal and appellate courts throughout New York and around the country. He handles a variety of complex litigation including catastrophic property and casualty claims, construction defect, professional liability, labor and employment law, mass torts, insurance coverage, and more. Read the court decision
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Reprinted courtesy of Linda Carter, Kahana Feld
Ms. Carter may be contacted at lcarter@kahanafeld.com

Retired Judge Claims Asbestos in Courthouse gave him Cancer

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
Amos Saunders, retired Passaic County, New Jersey, Superior Court judge claimed "he got cancer as a result of coming into contact with asbestos at the courthouse during his time on the bench," the New Jersey Law Journal reported. Saunders alleged "that he was exposed to asbestos throughout his tenure, up to and including an asbestos removal project at the Paterson, N.J., courthouse in the 1980s." The complaint filed, as quoted in the New Jersey Law Journal, stated that "he has been diagnosed with adenocarcinoma 'as a direct and proximate result' of 'inhalation and ingestion of dust particles and fibers' from asbestos products." According to the complaint, A. H. Environment Inc. was the contractor and Alaimo Group was the consulting engineer. Read the court decision
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