Fairfield Connecticut Building Consultant Directory

The Increasing Trend of Caps in Construction Contracts and Negotiating Them

November 27, 2023 — Jarred Trauth - ConsensusDocs
Risks are inherent in every construction project and all parties involved face them: owners, designers, general contractors/builders, subcontractors, suppliers…. Equitably allocating such risks is one of the most important and most negotiated areas of any construction related contract. Limitations of liability provisions are key to risk allocation. These provisions include no damage for delay provisions and caps on delay damages, warranty limitations and exclusions, indemnity limitations, and consequential damage waivers. Another, and the focus of this article, is a liability cap fixing the total amount of damages for which a party may be liable under the contract (the “Liability Cap”). Liability Caps have become more and more common in construction and construction related contracts, including major component supply agreements and design agreements. This article will discuss Liability Caps generally and considerations of an owner or contractor negotiating them, including carve-outs (i.e. exceptions) to them. Read the full story...
Reprinted courtesy of Jarred Trauth, Jones Walker LLP
Mr. Trauth may be contacted at jtrauth@joneswalker.com

Top 10 Insurance Cases of 2023

January 29, 2024 — Jeffrey J. Vita & Michael A. Amato - Saxe Doernberger & Vita, P.C.
Federal and state courts tackled many interesting insurance-related issues this past year. Perhaps no state had a more impactful year than Illinois, which held that construction defects could constitute an occurrence, that a LEG 3 “extension” attempting to preclude coverage for faulty or defective workmanship was ambiguous as a matter of law (applying Illinois law), and that ostensibly prohibitive “catch-all exclusions” can render policy language ambiguous in favor of coverage. Other courts wrestled with procedural inquiries, such as the legal duty of a broker in providing notice to an insurer or the ability of an insured to recoup its attorneys’ fees in pursuing a coverage action against its insurer. These are merely a sampling of the impactful insurance decisions rendered in 2023. Each year, we endeavor to identify cases of general interest to our clients and the broader insurance community. Specifically, we attempt to identify trends, cases of first impression, cases illustrating conflicts among the courts, or cases dealing with emerging issues. We now proudly unveil the top 10 most influential coverage decisions of 2023 and look ahead to a few cases to watch as 2024 unfolds. Reprinted courtesy of Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. and Michael A. Amato, Saxe Doernberger & Vita, P.C. Mr. Vita may be contacted at JVita@sdvlaw.com Mr. Amato may be contacted at MAmato@sdvlaw.com Read the full story...

Court Grants Insurer's Motion for Summary Judgment After Insured Fails to Provide Evidence of Systemic Collapse

April 15, 2024 — Tred R. Eyerly - Insurance Law Hawaii
With the insurer conceding that there was evidence of potential collapse at portions of eight specific building locations, the court granted the insurer's motion for partial summary judgment in determining no additional buildings suffered from collapse. Exec. 1801 LLC v. Eagle W. Ins. Co., 2024 U.S. Dist. LEZXIS 5923 (D. Or. Jan. 11, 2024). Executive 1801 owned a group of six buildings with eighty-six residential units. The court previously granted partial summary judgment on Executive 1801's rain damage claim, leaving only claims regarding collapse. Eagle insured "the property for direct physical los or damage to Covered Property . . . caused by or resulting from any Covered Cause of loss." The policy further provided, "We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building insured under this policy, if the collapse is caused by . . . hidden decay." Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Emerging Trends in Shortened Statutes of Limitations and Statutes of Repose

January 02, 2024 — Ivette Kincaid & Thomas McCarrick - Kahana Feld
Introduction A growing trend in construction defect legislation around the country has seen the shortening of statutes of limitation and statutes of repose for a plaintiff to bring claims related to construction defects. Over the past ten years, several states, notably Florida and Texas, have shortened their statutes of repose. This is generally positive news for developers and contractors; however, the specifics and ramifications of these legislative and judicial updates are still unknown. Statute of Limitations A statute of limitations sets forth the time that a plaintiff has to sue or allege a particular cause of action against a defendant. These time limitations are codified into law and vary depending on the State and the cause of action. A statute of limitations starts at the occurrence of an injury or damage or at the time the injury or damage is discovered. The statute of limitations may be subject to some exceptions such as tolling for reasons such as the injured party being a minor in which case depending on the particular statute, the statute does not begin to run until after the minor reaches the age of majority. Reprinted courtesy of Ivette Kincaid, Kahana Feld and Thomas McCarrick, Kahana Feld Ms. Kincaid may be contacted at ikincaid@kahanafeld.com Mr. McCarrick may be contacted at tmccarrick@kahanafeld.com Read the full story...

Real Estate & Construction News Roundup (1/10/24) – New Type of Nuclear Reactor, Big Money Surrounding Sports Stadiums, and Positivity from Fannie Mae’s Monthly Consumer Survey

February 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, the commercial real estate market poses a risk to financial stability, New York City moves towards net-zero building emissions, workers at several Los Angeles area hotels tentatively agree to a new contract, and more!

For the first time since Fannie Mae’s monthly consumer survey was launched in 2010, more homeowners overall believe rates will go down rather than up. (Diana Olick, CNBC)
According to U.S. regulators, the commercial real estate market is potentially a leading risk to financial stability in 2024, noting rising vacancy rates, declining values of office properties, high interest rates and the possibility of an economic slowdown. (Jim Tyson, CFO Dive)
New York City will soon begin penalizing owners of buildings that emit too much greenhouse gas — a move toward requiring net-zero building emissions by 2050. (Jennifer Kingson, Axios)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Court of Appeals Confirms that King County Superior Court’s Jury Selection Process Satisfies Due Process Requirements

December 04, 2023 — Joshua Lane - Ahlers Cressman & Sleight PLLC
Raymond Budd developed mesothelioma after working with a drywall product called “joint compound” from 1962 to 1972. He sued Kaiser Gypsum Company, Inc. and others for damages, contending that the company’s joint compound caused his illness. A jury returned a verdict in Budd’s favor and awarded him nearly $13.5 million. Kaiser appealed, claiming (1) insufficient randomness in the jury-selection process, (2) erroneous transcription of expert testimony, (3) lack of proximate causation, (4) lack of medical causation, (5) an improper jury instruction on defective design, (6) improper exclusion of sexual battery and marital discord evidence, (7) improper admission of post-exposure evidence, (8) improper exclusion of regulatory provisions, and (9) a failure to link its product to Budd’s disease. The Court of Appeals, Division 1, affirmed the verdict in favor of Budd. Though all of the nine bases for error raised by Kaiser merit discussion, the jury-selection process issue is most probative here. Kaiser made three challenges against the jury selection process. Read the full story...
Reprinted courtesy of Joshua Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at joshua.lane@acslawyers.com

The 2024 Colorado Legislative Session Promises to be a Busy One for the Construction Industry and its Insurers

January 16, 2024 — David M. McLain – Colorado Construction Litigation
January 10th marked the first day of the 2024 Colorado legislative session. After the pomp and circumstance of opening day, a total of eighty-six bills were introduced. Among them, two impact the construction and insurance industries. First, House Bill 24-1008 would make general contractors and their subcontractors, which are direct employers of an employee, jointly and severally liable for all debts owed based on wage claims or investigations. Essentially, if HB 24-1008 were to become law, general contractors would become the guarantors of wage payments to their subcontractors’ employees. The second bill, House Bill 24-1083, would require the Colorado Division of Insurance to conduct a study of construction liability insurance for construction professionals in Colorado and would require that, 14 days prior to closing the sale of a new residence, the seller provide the purchaser and the county clerk and recorder’s office certain information regarding the insurance coverage for the home. In a year when the legislature should be focusing on construction defect reform and affordable housing for Coloradoans, these first two bills will likely drive up the cost of new construction. House Bill 20-1008, sponsored by Representatives Duran and Froelich, Brown, deGruy Kennedy, Epps, Garcia, Hamrick, Hernandez, Joseph, Lieder, Lindstedt, Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, and Vigil and Senators Danielson and Jaquez Lewis, Exum, Gonzales, Kolker, Marchman, and Sullivan, has been assigned to the House Committee on Business Affairs & Labor but has not yet been scheduled for a hearing. The bill summary states: For wage claims brought by individuals working in the construction industry, the bill:

Requires that a subcontractor that receives a written demand for payment forward a copy of the written demand for payment to the general contractor within 3 business days after receipt;

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New Survey Reveals Present-Day Risks of Asbestos Exposure in America - 38% in High-Risk Jobs, 47% Vulnerable through Second-Hand Exposure

April 08, 2024 — The Law Offices of Justinian C. Lane, Esq. - PLLC
AUSTIN, April 04, 2024 (GLOBE NEWSWIRE) -- A recent nationwide survey conducted on the risks of asbestos in America revealed that 38% of respondents have worked in high-risk industries where asbestos was present, while 47% have experienced indirect exposure through family members employed in these high-risk environments. The survey results reflect the fact that, despite the EPA's recent ban on ongoing uses of chrysotile asbestos, the threat of exposure still looms large in the US, underscoring the urgent need for continued vigilance and action to safeguard public health. Compounding the concern is the revelation that only 8% of Americans undergo regular testing. These findings, released today, underscore the urgent necessity for Asbestos Cancer Risk Awareness and routine testing. They emphasize the crucial importance of proactive measures to mitigate the pervasive risks associated with asbestos exposure in the United States. The study was conducted by Researchscape on behalf of The Law Offices of Justinian C. Lane, Esq. - PLLC, a leading firm advocating for testing and compensation for individuals exposed to asbestos on the job and their families who are at risk due to second-hand exposure. According to the survey, 86% of respondents have never undergone any testing for asbestos exposure, while a mere 8% are tested regularly. The lack of testing is particularly concerning among the Gen X demographic who could be at risk due to secondhand exposure from a family member who worked with asbestos when it was still prevalent, with 92% reporting no testing, highlighting the potential risks associated with secondhand exposure.

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