FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Hotel Owner Makes Construction Defect Claim

January 28, 2013 — CDJ STAFF
A lawsuit has been filed over the construction of the GrandStay Hotel & Conference Center in Apple Valley Minnesota. Apple Valley GSRS, LLC, who invested in the hotel, has sued Cole Group Architects and Cornerstone Construction, alleging that the architects design was not to industry standards and that the builder used inferior materials and techniques. The lawsuit makes claim of "significant damage." The hotel hired an engineer who subsequently recommended that all the stucco and the roof should be be replaced. The stucco has shown signs of cracking and crumbling. The hotel states that the roof has problems with leaking. Cornerstone has denied the hotel's claims. They have also counter-sued their subcontractors. Read the court decision
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Important New Reporting Requirement for Some Construction Defect Settlements

April 17, 2019 — Ian Williamson - Gordon & Rees Construction Law Blog
In response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22. What types of Projects: This requirement applies only if all of the following apply:

A) Residential B) Multi-Family; and C) Rental property

Limitations on Claims – The reporting requirement only applies if all of the following are true:

A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor; B) The claim is for a structural defect; C) The total claim is valued at $1 million (not including investigation costs); D) SB800 does not apply; E) The action was filed after January 1, 2019; and F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).

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Reprinted courtesy of Ian Williamson, Gordon & Rees
Mr. Williamson may be contacted at igwilliamson@grsm.com

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Arbitration Clause Found Ambiguous in Construction Defect Case

October 28, 2011 — CDJ STAFF

The California Court of Appeals ruled on September 28 in the case of Burch v. Premier Homes. Ms. Burch bought a home after negotiating various addendums to the contract. The contract was a standard California Association of Realtors contract to which both the buyer and seller made additions. At issue in this case was paragraph 17 of the contract which included that “Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration.”

The seller/defendant’s Addendum 2 “included provisions relating to the arbitration of disputes that may arise.” Ms. Burch’s realtor, Lisa Morrin, told Burch that “she had never seen a proposed contractual provision that would require a home buyer to agree to arbitrate with a builder over construction defects.” Ms. Burch told Morrin that she did not want to buy the property if she would have to give up her rights under California law.

As part of Addendum 2, the buyer had to buy a warranty from the Home Buyers Warranty Corporation. The sale was held up for a while, as Ms. Burch waited for a copy of the warranty. When she received it, she took further exception to Addendum 2. Scott Warren of Premier Homes said he could not sell the property without Addendum 2. Ms. Burch told her realtor that despite the claims made by Mr. Warren that this was for her benefit, she felt it was more to the benefit of Premier Homes. Don Aberbrook of HBW agreed to the clause, contained in the final sentence of Addendum 2, being struck.

Subsequent to buying the home, Burch submitted a claim concerning construction defects. HBW denied the claim and Burch began an action against the defendants. Premier filed a motion to compel arbitration which Burch opposed.

The trial court ruled that the striking out of the arbitration clause at the end of Addendum 2 “created a conflict with respect to the parties’ intent as to the scope of arbitration.” The trial court found that “the parties’ intention was to preserve Burch’s right to make state law claims including her right to a jury trial for any non-warranty claims against the builder.”

The appeals court in their ruling looked at the standard of review and concluded that the purchase agreement was ambiguous and that extrinsic evidence was required to resolve that ambiguity. As the contract contained contradictory provisions as to whether or not arbitration was required, it was necessary for the trial court to examine these claims. The appeals court found that the evidence supported the conclusions of the trial court.

Finally, the appeals court found that “there was no valid agreement to arbitrate disputes.” The court noted that arbitration can only happen by mutual consent and “it is clear that Burch did not enter into an agreement to arbitrate any construction defect disputes she might have.”

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Can Your Industry Benefit From Metaverse Technology?

November 06, 2023 — The Hartford Staff - The Hartford Insights
As the metaverse evolves, we know there are inherent risks for businesses. But what industries can we expect to be impacted and what are the potential upsides and opportunities? “We are observing how different industries are incorporating this technology to better their business strategy. For example, companies are utilizing augmented reality to assess the risk for large catastrophes, like wildfires. This technology could help prevent major disastrous events if integrated properly,” said Michael Kearney, vice president of emerging technologies and innovation at The Hartford. As virtual and augmented reality technologies become more popular, there is an uptick in demand across industries to mitigate risk, increase company efficiency and build brand awareness. There are several industries that may be significantly impacted by the evolution of the metaverse, including:

• Technology: It is anticipated that there will be cutting edge technologies at the forefront, building the infrastructure for the metaverse.
• Gaming: This industry has potential to be the center of the metaverse with gamers developing a deeper connection to the digital world.

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Reprinted courtesy of The Hartford Staff, The Hartford Insights

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No Global MDL for COVID Business Interruption Claims, but Panel Will Consider Separate Consolidated Proceedings for Lloyds, Cincinnati, Hartford, Society

August 24, 2020 — Eric B. Hermanson & Konrad R. Krebs - White and Williams
In a widely anticipated ruling, the Judicial Panel on Multidistrict Litigation has denied two motions to centralize pretrial proceedings in hundreds of federal cases seeking coverage for business interruption losses caused by the COVID-19 pandemic. However, the Panel has ordered expedited briefing on whether four separate consolidated proceedings should be set up for four insurers – Cincinnati, Society, Hartford, and Lloyds – who appear to be named in the largest number of claims. In seeking a single, industry-wide MDL proceeding, some plaintiffs had argued that common questions predominated across the hundreds of pending federal suits: namely, [1] the question of what constituted ‘physical loss or damage’ to property, under the allegedly standardized terms of various insurers’ policies; [2] the question whether various government closure orders should trigger coverage under those policies, and [3] the question whether any exclusions, particularly virus exclusions, applied. Reprinted courtesy of Eric B. Hermanson, White and Williams and Konrad R. Krebs, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Krebs may be contacted at krebsk@whiteandwilliams.com Read the court decision
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The Registered Agent Advantage

October 22, 2014 — Christopher G. Hill – Construction Law Musings
In the Commonwealth of Virginia, as in most states, all corporations, LLC’s or other corporate style entities are required to have a registered agent if they are to do business in the Commonwealth. The reasons for the requirement are many, but the main ones are taxation, service of process and communication from the Virginia State Corporation Commission (the “SCC”). Without such a registered agent, many rights, for example the right to prosecute a lawsuit, are not available to the unregistered entity. As a construction company that I hope is incorporated (if you aren’t you should do take this step), your registered agent can be an officer of the company, a company that meets the requirements of the SCC that allow it to act as a registered agent, or an attorney licensed in the Commonwealth of Virginia. It is this last category that you should carefully consider. Why do I think that a Virginia construction attorney is the best candidate for use as the registered agent of either a local or out of state contractor or subcontractor? As you might imagine from the title of this post, I’ll let you know. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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An Era of Legends

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
In 2010, West Coast Casualty’s Construction Defect Seminar added a new award: The Legend of an Era. West Coast Casualty recognizes “those in the construction defect community who inspire, contribute, advocate and influence others for the benefit and betterment of this community, making it a better place.” They define Legend as “One that inspires or achieves legendary fame based upon ones own achievement(s) which promises to be enduring” and Era, as “A fixed point of time from which a series of years is reckoned and an order of things prevail.” This annual award is presented at the West Coast Casualty Construction Defect Seminar. Read the court decision
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The Almost-Collapse of a Sarasota, Florida Condo Building

July 11, 2021 — Beverley BevenFlorez – CDJ Staff
Five years ago, residents of the Dolphin Tower in Sarasota, Florida were forced to evacuate after cracks appeared in their fourth-floor condominium units. “My assistant calls me and says, ‘[Kris] thinks the building is falling down,’” David Karins of Karins Engineering told Sarasota Magazine. “I said, ‘I doubt that.’ Then I got there and saw what was going on and I said, ‘You know, the building may be falling down.’” In July of 2010, city officials ordered all residents to evacuate. Five years and $11 million dollars in rehabilitation and residents were finally able to move back in last month. The Herald-Tribune had previously interviewed John Bonacci, an engineer at Sarasota’s Karins Engineering: “I’d say yes, there was grave danger. It was luck that it didn’t come all the way down. Getting shoring in there quickly was instrumental in preventing it from collapsing.” Read the full story, Sarasota Magazine... Read the full story, Herald-Tribune... Read the court decision
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