Fairfield Connecticut Building Expert Directory

Arbitration Provisions Are Challenging To Circumvent

May 13, 2019 — David Adelstein - Florida Construction Legal Updates
Arbitration provisions are enforceable and they are becoming more challenging to circumvent, especially if one of the parties to the arbitration agreement wants to arbitrate a dispute versus litigate a dispute. Remember this when agreeing to an arbitration provision as the forum for dispute resolution in your contract. There is not a one-size-fits-all model when it comes to arbitration provisions and how they are drafted. But, there is a very strong public policy in favor of honoring a contractual arbitration provision because this is what the parties agreed to as the forum to resolve their disputes. By way of example, in Austin Commercial, L.P. v. L.M.C.C. Specialty Contractors, Inc., 44 Fla.L.Weekly D925a (Fla. 2d DCA 2019), a subcontractor and prime contactor entered into a consultant agreement that contained the following arbitration provision:

Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be subject to the dispute resolution procedures, if any, set out in the Prime Contract between [Prime Contractor] and the [Owner]. Should the Prime Contract contain no specific requirement for the resolution of disputes or should the [Owner] not be involved in the dispute, any such controversy or claim shall be resolved by arbitration pursuant to the Construction Industry Rules of the American Arbitration Association then prevailing, and judgment upon the award by the Arbitrator(s) shall be entered in any Court having jurisdiction thereof.

The prime contract between the owner and prime contractor did not require arbitration. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Rihanna Gained an Edge in Construction Defect Case

January 29, 2014 — Beverley BevenFlorez-CDJ STAFF
In depositions taken last week, the former owner of Rihanna’s “dream home” in Los Angeles, California, alleged “that he’d told brokers Prudential California Realty of the house’s issues,” according to Inquisitr. However, Rihanna, the singer and recent Grammy Award winner, claims that Prudential “didn’t inform” her “of these problems before she moved in, in 2009.” Rihanna has claimed that roof leaks “ruined a sound system that she’d had custom-fitted into her new abode, which cost her $6.9 million, and it also lead to mold growing on some of her designer garments too.” The singer claims to have been “tricked” into purchasing the property: “’the actual value of the property at the time of purchase, taking into consideration the extensive construction defects… was millions of dollars less’” than what she ultimately paid for it.” Read the court decision
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COVID-19 Business Closure and Continuity Compliance Resource

March 30, 2020 — Adam Chelminiak, Joshua Mooney & Ryan Udell - White and Williams LLP
In less than a few weeks’ time, COVID-19 has changed the way we live and work. Businesses, large and small, have had to grapple with unprecedented challenges, including orders to close or significantly curtail operations in order to stem the transmission of the coronavirus. Often, these orders have not been clear or businesses are unsure whether they fit in a category that is deemed essential, life sustaining or other similar category that permits them to continue to operate. Or, the business believes that it is necessary for it to continue to operate for reasons that may not have been apparent to the governmental authority issuing the order. White and Williams has been busy assisting our clients in Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island and other states in understanding these orders. Below are government orders, and related resources, that have been announced and/or are currently in effect. White and Williams will continue to monitor these orders and add additional orders and resources as they are announced. Reprinted courtesy of White and Williams LLP attorneys Adam Chelminiak, Joshua Mooney and Ryan Udell Mr. Chelminiak may be contacted at chelminiaka@whiteandwilliams.com Mr. Mooney may be contacted at mooneyj@whiteandwilliams.com Mr. Udell may be contacted at udellr@whiteandwilliams.com Read the full story for government orders, and related resources, that have been announced and/or are currently in effect. Read the court decision
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Reasonableness of Liquidated Damages Determined at Time of Contract (or, You Can’t Look Back Again)

October 05, 2020 — Christopher G. Hill - Construction Law Musings
I’ve discussed the continuing litigation between White Oak Power Constructors v. Mitsubishi Hitachi Power Systems Americas, Inc. previously here at Construction Law Musings because the case was another reminder that your construction contract terms matter and will be interpreted strictly here in the Commonwealth of Virginia. The prior opinion in this case from the Eastern District of Virginia court the Court considered the applicability of a liquidated damages provision. In the latest opinion from the Court (PDF) the Court looked at when and how any liquidated damages would be calculated. In its June 22, 2020 opinion, the Court put the issue as follows:

White Oak’s motion for partial summary judgment presents a narrow issue: whether courts may consider the damages actually sustained by a party as a result of a contract breach when deciding if liquidated damages required by a contract “grossly exceed” a party’s actual damages.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

CGL Coverage for Liquidated Damages and the Contractual Liability Exclusion

October 09, 2023 — Stu Richeson - The Dispute Resolver
Liquidated delay damages are common in construction contracts and are generally imposed when a contractor fails to achieve substantial completion within the time required by the contract. While contracts like the AIA A201-2017 have provisions for extending the time to achieve substantial completion when delays are caused by circumstances beyond the contractor’s control, delays can result from factors other than improper management or planning and the like, for which the owner is not required to give the contractor additional time. Courts are split on whether there is ever coverage under a CGL policy for contractually agreed upon liquidated delay damages. Liquidated delay damages are often excluded under the contractual liability exclusion of most CGL policies. The contractual liability exclusion excludes coverage for “liability for which the Insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement.” Courts often find the contractual liability exclusion in a CGL policy precludes coverage for liquidated delay damages, because such damages are contractual in nature and are triggered by the failure to bring the contract to substantial completion by a fixed deadline, regardless of the cause of the delay. However, some courts will look to the cause of the delay and find that there is coverage under a CGL policy for liquidated delay damages that are the result of property damage caused by an accident or occurrence. In Clark Const. Grp., Inc. v. Eagle Amalgamated Serv., Inc., 01-2478-DV, 2005 WL 2092998, at *1 (W.D. Tenn. Aug. 24, 2005) a general contractor entered a contract for the renovation of the convention center in Memphis. Part of the project included the demolition of a structure attached to the convention center. The demolition work was improperly performed by a subcontractor and resulted in damage to the convention center. Read the court decision
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Reprinted courtesy of Stu Richeson, Phelps
Mr. Richeson may be contacted at stuart.richeson@phelps.com

Anthony Luckie Speaks With Columbia University On Receiving Graduate Degree in Construction Administration Alongside His Father

October 02, 2023 — Lewis Brisbois
New York, N.Y. (September 7, 2023) – New York Partner Anthony P. Luckie recently spoke with the Columbia University School of Professional Studies' Alumni publication regarding earning a Master of Science in Construction Administration alongside his father, as well as how the degree will benefit his law practice and clients. As the article explains, Mr. Luckie and his father completed Columbia’s Construction Administration Program last year – only one week before the birth of Mr. Luckie’s own son. Mr. Luckie described that being accepted into the program at Columbia – a school from which “some of the most important figures in American history” have graduated – “was a really big thrill . . . .” He further explained that although he felt a sense of pride in earning the degree, the fact that he and his father shared the experience held even greater meaning for him. He noted, “[W]hile it’s an incredible achievement for both of us to graduate from an Ivy League school, for me, that day was a culmination of a father raising his son. Standing there with him onstage . . . I made sure I took time to feel grateful.” Read the court decision
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Reprinted courtesy of Lewis Brisbois

Pensacola Bridge Repair Plan Grows as Inspectors Uncover More Damage

September 28, 2020 — Jim Parsons - Engineering News-Record
With a still-growing list of repairs needed to restore the barge-damaged Pensacola Bay Bridge, the Florida Dept. of Transportation has yet to determine a timeline for completing repairs. But assessments by the agency’s inspectors indicate that impacts from several Skanska-owned construction barges that unmoored during Hurricane Sally not only resulted in five irreparable spans, as previously reported, but at least two more that will require partial replacement. Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Contractor Sentenced to 7 Years for “Hail Damage” Fraud

November 13, 2013 — CDJ STAFF
The hailstorm might have spared homes in New Jersey, but the contractor didn’t. Marcin Gradziel entered a guilty plea when he was accused of filing fraudulent insurance claims for homes in New Jersey. In order to fool the inspectors from the insurance agency, after homeowners agreed to their pitch, Mr. Gradziel would damage their homes. After admitting this in court, Mr. Gradziel has now been sentenced to seven years in prison. His former employers, Precision Building, has gone out of business after paying restitution to the defrauded insurers. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES