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    Construction Expert Witness Builders Information
    Oneco, Connecticut

    Connecticut Builders Right To Repair Current Law Summary:

    Current Law Summary: Case law precedent


    Construction Expert Witness Contractors Licensing
    Guidelines Oneco Connecticut

    License required for electrical and plumbing trades. No state license for general contracting, however, must register with the State.


    Construction Expert Witness Contractors Building Industry
    Association Directory
    Home Builders Association of New Haven Co
    Local # 0720
    2189 Silas Deane Highway
    Rocky Hill, CT 06067
    http://www.hbanewhaven.com

    Home Builders Association of Hartford Cty Inc
    Local # 0755
    2189 Silas Deane Hwy
    Rocky Hill, CT 06067
    http://www.hbahartford.com

    Home Builders Association of NW Connecticut
    Local # 0710
    110 Brook St
    Torrington, CT 06790
    http://www.hbanwct.org

    Home Builders Association of Connecticut (State)
    Local # 0700
    3 Regency Dr Ste 204
    Bloomfield, CT 06002
    http://www.hbact.org

    Builders Association of Eastern Connecticut
    Local # 0740
    20 Hartford Rd Suite 18
    Salem, CT 06420
    http://www.baec.net

    Home Builders & Remo Assn of Fairfield Co
    Local # 0780
    433 Meadow St
    Fairfield, CT 06824
    http://www.buildfairfieldcounty.com


    Construction Expert Witness News and Information
    For Oneco Connecticut

    New OSHA Fall Rules to Start Early in Minnesota

    Important Information Regarding Colorado Mechanic’s Lien Rights.

    Orange County Home Builder Dead at 93

    Washington Court Limits Lien Rights of Construction Managers

    Arbitration Clause Not Binding on Association in Construction Defect Claim

    Court Rejects Anti-SLAPP Motion in Construction Defect Suit

    Builder to Appeal Razing of Harmon Tower

    Background Owner of Property Cannot Be Compelled to Arbitrate Construction Defects

    In Colorado, Primary Insurers are Necessary Parties in Declaratory Judgment Actions

    Virginia Homebuilding Slumps After Last Year’s Gain

    Eighth Circuit Remands to Determine Applicability of Collapse Exclusion

    Construction Defect Litigation at San Diego’s Alicante Condominiums?

    Mark Van Wonterghem To Serve as Senior Forensic Consultant in the Sacramento Offices of Bert L. Howe & Associates, Inc.

    After Breaching its Duty to Defend, Insurer Must Indemnify

    Contractor Removed from Site for Lack of Insurance

    Housing Market on Way to Recovery

    Park District Sues over Leaky Roof

    Unlicensed Contractors Nabbed in Sting Operation

    Homebuilders Go Green in Response to Homebuyer Demand

    Demand for Urban Living Leads to Austin Building Boom

    Godfather Charged with Insurance Fraud

    Nevada Construction Defect Lawyers Dead in Possible Suicides

    Coverage Rejected Under Owned Property and Alienated Property Exclusions

    Construction Defect Notice in the Mailbox? Respond Appropriately

    A Loud Boom, But No Serious Injuries in World Trade Center Accident

    Underpowered AC Not a Construction Defect

    Policing Those Subcontractors: It Might Take Extra Effort To Be An Additional Insured

    US Courts in Nevada Busy with Yellow Brass

    Insurer Has Duty to Defend in Water Intrusion Case

    Going Green for Lower Permit Fees

    Another Las Vegas Tower at the Center of Construction Defect Claims

    Insurance Firm Defends against $22 Million Claim

    Green Buildings Could Lead to Liabilities

    Former Zurich Executive to Head Willis North America Construction Insurance Group

    California Supreme Court Finds Associations Bound by Member Arbitration Clauses

    Supreme Court of Oregon Affirms Decision in Abraham v. T. Henry Construction, et al.

    New Apartment Tower on the Rise in Seattle

    A Lien Might Just Save Your Small Construction Business

    Construction Defect Bill Introduced in California

    Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

    Texas covered versus uncovered allocation and “legally obligated to pay.”

    State Farm Too Quick To Deny Coverage, Court Rules

    Seven Former North San Diego County Landfills are Leaking Contaminants

    Construction Defect Case Not Over, Despite Summary Judgment

    Unit Owners Have No Standing to Sue under Condominium Association’s Policy

    Summary Judgment in Construction Defect Case Cannot Be Overturned While Facts Are Still in Contention in Related Cases

    Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii

    South Carolina Law Clarifies Statue of Repose

    Bad Faith and a Partial Summary Judgment in Seattle Construction Defect Case

    Insurer Beware: Failure to Defend Ends with Hefty Verdict

    No “Special Relationship” in Oregon Construction Defect Claim

    Gut Feeling Does Not Disqualify Expert Opinion

    Firm Sued For Construction Defects in Parking Garage

    Construction Defects Leave Animal Shelter Unusable

    Defense for Additional Insured Not Barred By Sole Negligence Provision

    No Coverage for Negligent Misrepresentation without Allegations of “Bodily Injury” or “Property Damage”

    Another Guilty Plea in Las Vegas HOA Scandal

    United States District Court Confirms That Insurers Can Be Held Liable Under The CCPA.

    Plaintiff Not Entitled to Further Damages over Defective Decking

    Condo Board May Be Negligent for not Filing Construction Defect Suit in a Timely Fashion

    Condo Buyers Seek to Void Sale over Construction Defect Lawsuit

    BHA Expands Construction Experts Group

    OSHA Extends Delay of Residential Construction Fall Protection Requirements

    Nevada Supreme Court Reverses Decision against Grader in Drainage Case

    One World Trade Center Due to Be America’s Tallest and World’s Priciest

    Amerisure Case to be Heard by Texas Supreme Court

    Ohio Court Finds No Coverage for Construction Defect Claims

    District Court Awards Summary Judgment to Insurance Firm in Framing Case

    California Lawyer Gives How-To on Pursuing a Construction Defect Claim

    Homeowners Not Compelled to Arbitration in Construction Defect Lawsuit

    Arizona Homeowners Must Give Notice of Construction Defect Claims

    New Jersey Court Rules on Statue of Repose Case

    Contractor Convicted of Additional Fraud

    Florida trigger

    Ensuing Loss Found Ambiguous, Allowing Coverage

    Claims Under Colorado Defect Action Reform Act Count as Suits

    Court Rules on a Long List of Motions in Illinois National Insurance Co v Nordic PCL

    David McLain to Speak at the CDLA 2012 Annual Conference

    Texas Law Bars Coverage under Homeowner’s Policy for Mold Damage

    Exact Dates Not Needed for Construction Defect Insurance Claim

    Legislatures Shouldn’t Try to Do the Courts’ Job

    Construction Upturn in Silicon Valley

    Ensuing Loss Provision Does Not Salvage Coverage

    Home Sales Still Low, But Enough to Spur Homebuilders

    Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy

    Condominium Communities Must Complete Construction Defect Repairs, Says FHA

    Florida: No Implied Warranties for Neighborhood Improvements

    Hawaii State Senate Requires CGL Carriers to Submit Premium Information To State Legislature

    Fifth Circuit Reverses Insurers’ Summary Judgment Award Based on "Your Work" Exclusion

    2011 West Coast Casualty Construction Defect Seminar – Recap
    Corporate Profile

    ONECO CONNECTICUT CONSTRUCTION EXPERT WITNESS
    DIRECTORY AND CAPABILITIES

    The Oneco, Connecticut Construction Expert Witness Group at BHA, leverages from the experience gained through more than 5,500 construction related expert witness designations encompassing a wide spectrum of construction related disputes. Drawing from this considerable body of experience, BHA provides construction related trial support and expert services to Oneco's most recognized construction litigation practitioners, commercial general liability carriers, owners, construction practice groups, as well as a variety of state and local government agencies.

    Construction Expert Witness News & Info
    Oneco, Connecticut

    Court Sends Construction Defect Case from Kansas to Missouri

    August 2, 2012 — CDJ Staff

    The United State Court of Appeals for the Tenth Circuit has ruled in Mid-Continent Casualty Company v. The Village at Deer Creek Homeowners Association. The prior case was heard by the United States District Court for the District of Kansas. In this appeal, Mid-Continent sought a declaratory judgement. The Village at Deer Creek Homeowners Association moved to dismiss, and the district court had granted this, giving jurisdiction to the Missouri state courts.

    The homeowners association had sued Greater Midwest Builders, Ltd., who had constructed the subdivision, in the Kansas state courts. The suit ended with a verdict against Greater Midwest for more than $7 million. The association and other plaintiffs in that case filed for equitable garnishment against State Auto, Mid-Continent, and Greater Midwest. State Auto removed the garnishment action to federal court in Missouri. Mid-Continent moved to sever the actions against it and transfer the case to the District of Kansas.

    Subsequently, the plaintiffs filed a notice of voluntary dismissal in the Western District of Missouri. A second garnishment action followed in which Mid-Continent was named as an additional plaintiff. State Auto again removed to the Western District of Missouri, while Mid-Continent moved to sever and transfer to the District of Kansas. The Kansas court granted the association’s motion to dismiss.

    In the appeal, Mid-Continent sought a declaratory judgment. This was denied by the appeals court. The district court “concluded that the Missouri courts were better situated to provide complete relief to all parties involved in the coverage dispute.” The appeals court affirmed the association’s movement to dismiss. Mid-Continent’s motion was denied as moot.

    Read the court's decision…


    Liability policy covers negligent construction: GA high court

    October 31, 2010 — Original article by Michael Bradford in Business Insurance

    ATLANTA—Negligent construction that results in damage to surrounding property constitutes an occurrence under a commercial general liability policy, the Georgia Supreme Court has ruled.

    In a 6-1 opinion Monday in American Empire Surplus Lines Insurance Co. Inc. vs. Hathaway Development Co. Inc., the Georgia high court upheld a lower court ruling that the general contractor’s claim for damage caused by a subcontractor’s faulty plumbing work was covered.

    The ruling on construction defects is the latest in number of such cases across the United States

    Read Full Story...

    Reprinted courtesy of Michael Bradford of Business Insurance.


    BHA Expands Construction Experts Group

    October 28, 2011 — Bert L. Howe & Associates, Inc. - Corporate Offices

    Bert L. Howe & Associates, Inc., one of the nation’s leading construction forensics firms is pleased to announce the expansion of the company’s civil and structural engineering capabilities.

    JERRY M. MILES, PE - Mr. Miles has been a licensed civil engineer in California since 1987 and has served as the lead civil engineer on many projects in several states. His experience includes contract administration services as the owner’s representative on a variety of projects including mastered planned communities, residential subdivisions, shopping centers and multi-family residential projects. He has also been involved in providing water quality management plans and storm water pollution prevention plans. Mr. Miles has also served on the Town of Apple Valley’s Building Department Dispute Resolution Board.

    His more than 26 years of engineering experience includes geotechnical evaluations, structural design of wood-framed, masonry, and concrete tilt-up buildings, small and large subdivision engineering construction/improvements plans, hydrology/hydraulic reports and design, forensic investigation and expert witness testimony. Mr. Miles has qualified as an expert in numerous jurisdictions and Federal court. He has been called upon to provide deposition testimony on more than twenty-five occasions and has successfully testified at arbitration and trial. Click here to view Mr. Miles’ Current CV.

    MATTHEW J. STIEFEL, PE - With a background that spans a multitude of design and new construction projects to catastrophic claims analysis, Mr. Stiefel brings a unique set of credentials and experience to the construction experts group at Bert L. Howe & Associates. Mr. Stiefel has more than 13 years’ experience in civil, structural, and geotechnical engineering; providing design and construction consulting services on a variety of projects that include multi-family and single family dwellings, commercial buildings, transportation facilities, industrial facilities, storm drain channels, water and wastewater pipelines. His engineering experience encompasses multiple disciplines of civil engineering including geotechnical design and evaluation, foundation design, structural design of wood-framed buildings, preparation of grading plans and site drainage analysis. He has provided cause and origin analysis for insurance adjusters on many residential and commercial sites related to issues involving moisture intrusion and mold, foundation movement, site drainage, soil movement, wind damage, and other various losses. Click here to view Mr. Stiefel’s Current CV.


    Court Consolidates Cases and Fees in Soil Construction Defect Case

    August 16, 2012 — CDJ Staff

    The California Court of Appeals has ruled in Burrow v. JTL Development. JTL Development had appealed a judgement in a construction defect case in which JTL Development and Highland Development were found liable for damage due to homes built on unstable and improperly compacted soil. The two companies were sued by the two sets of homeowners, the Burrows and the Balls, and their cases were consolidated at trial. Each family was awarded $700,000 in damages. This judgement had also been appealed and affirmed by the appeals court. In the current case, an additional $235,800 in cost-of-proof sanctions had been awarded to the two families.

    Before the trial, Dale Burrows, Charles Ball, and Laurie Ball “asked JTL and Highland to admit that they ‘approved grading plans’ for the Burrows’ and Balls’ properties; ‘had knowledge that the [properties] contained improperly compacted fill’; ‘had knowledge that the [properties were’ not properly prepared for structures’; and ‘did not provide Plaintiffs with a complete soils report’ prepared by Gorian & Associates.” These were requests 14, 19, 20, and 22. JTL and Highland denied all of these.

    At trial, the Burrows and Balls proved that all these were true. JTL and Highland’s geotechnical subcontractor, Gorian & Associates, had “recommended that Highland remove and re-compact the entire tract to a depth of 25 feet.” JTL and Highland did not follow this recommendation, “in order to avoid expense.”

    After judgment, the Burrows and Balls moved for $582,587.45 for “attorneys’ fees and costs incurred proving the truth of requests for admission.” JTL and Highland claimed that only Dale Burrows could recover fees, but that also the fees were not recoverable. Joe Lynch of Highland “declared that he always believed the soils under the Burrows and Balls homes were properly compacted.” The Burrows and Balls responded with six identical sets of requests for admissions and the court awarded each of them twenty-five percent of $235,800, with JTL and Highland each responsible for fifty percent.

    The appeals court noted that JTL and Highland filed a timely appeal and goes on to notes the four circumstances under which a responding party does not have to pay costs and fees. The court concluded that none of these were met. Instead of waiving the request, JTL and Highland denied the request, stating “without in any manner waiving the foregoing objection, responding party denies the request for admission.”

    Nor was the admission “of no substantial importance,” instead the court said that the matters were of “substantial importance,” and the “trial would have been shortened by their admission. Highland and JTL “relied on Gorian when it denied the request,” but the trial court “discredited Lynch’s assertions,” finding that “Highland knew the soil was improperly compacted.”

    As all plaintiffs had identical discovery requests, the court rejected the claim that only Dale Burrows was entitled to an award.

    Read the court’s decision…



    Another Guilty Plea In Nevada Construction Defect Fraud Case

    April 25, 2012 — CDJ Staff

    The eleventh defendant has entered a guilty plea in the ongoing federal investigation of construction defect fraud in the Las Vegas area. Mahin Quintero plead guilty to producing a false authentication feature, a misdemeanor. Ms. Quintero’s part in the scheme was to falsely authenticate signatures on loan documents for straw buyers. Ms. Quintero stated in court that she had been ordered to destroy her notary book three years ago. According to her plea bargain, the straw buyers did not appear in front of her when she notarized their signatures. As part of the scheme, the straw buyers would take control of homeowners associates, sending construction defect complaints and repairs to favored firms.

    Read the full story…


    Boston Tower Project to Create 450 Jobs

    November 18, 2011 — CDJ Staff

    Continuing the development of Boston’s Theater District, Millennium Partners broke ground for the building of Hayward Place, a 15-story residential tower with street-level shops. The project is expected to take two years to complete and will employ about 450 construction workers.

    Thomas Menino, the mayor of Boston said that the “ground breaking of Hayward Place is another sign of economic growth and forward progress on the revitalization of this area.” The project will be built by Suffolk Construction. John Fish, their CEO, said they were “fortunate as a contractor to be the beneficiary of this.”

    The report in the Boston Herald notes that a few blocks away, the site of the former Filenes department store is still “an empty eyesore.” Menino joked, “anyone want to bid for it?” He promised that site would also be developed.

    Read the full story…


    Lawsuit over Construction Defects Not a Federal Case

    August 16, 2012 — CDJ Staff

    The United State District Court in California has dismissed the claims of a contractor against the United States government, on the grounds that it was not within the subject matter jurisdiction of the court. The origins of the case are in a related construction defect claim. The current plaintiff, Performance Contracting, Inc., did the lath and plaster work for a building for the Department of Veterans Affairs. After the building was completed, the Veterans Affairs complained to the general contractor, Wynema, Inc., of water intrusion problems.

    Wyema and Performance conducted testing and the water intrusion was found to be due to “a variety of design defects and omissions, including: 1) omission of proper window flashing; 2) inadequate waterproof membrane around the windows; 3) inadequate T-molding around the windows; 4) lack of a window sill pan for the windows; 5) lack of any backing in the window framing; 6) lack of any backing for the stucco expansion joints and seams; and 7) failure to require that a performance mock-up of the window assembly and adjacent areas be built and water tested.” Wyema filed a construction defect action against Performance and other subcontractors.

    In the current case, Performance claims that Veteran Affairs was negligent, that it “breached its duty to Plaintiff when it provided deficient plants and specifications” and “failed to properly oversee construction and inspect Project work.” The court determined that it could not hear this case, noting that “Federal Courts are presumptively without jurisdiction over civil actions.”

    Performance raised its claims under the Federal Tort Claims Act. The judge was not persuaded by this claim, noting that the FTCA does not apply to purported breach of the General Contract. The FTCA waives the government’s sovereign immunity in cases of “injury or loss of property, or personal injury or death caused by the negligent or wrongful act or omission of an employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred.”

    Performance was unable to pursue its claims in the Court of Federal Claims as there was no contract between Performance and the government. However, the court noted that Performance’s inability to file suit in the Court of Federal Claims does not open up a path to the District Court. “Litigants are not guaranteed a forum in which to sue the United States.” The court further noted that “if this Court were to accept Plaintiff’s logic, non-parties to contracts, but not parties, would be free to pursue contract claims in the fora of their choosing.”

    Read the court’s decision…


    Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy

    December 20, 2012 — Heidi Gassman, Higgins, Hopkins, McLain & Roswell

    The recently decided case of Colorado Pool Systems, Inc. v. Scottsdale Insurance Company (Colo. Ct. App. 10CA2638, October 25, 2012), confirms that absent specific exclusions in the policy, a commercial general liability (“CGL”) policy covers damages to non-defective property arising from a builder’s own defective workmanship.

    Colorado Pool Systems, Inc. (“Colorado Pool”) was hired as a subcontractor to install a swimming pool at Founders Village Pool and Community Center (“Founders Village”) in Castle Rock, Colorado.  After the concrete shell of the pool was placed, some of the rebar frame was found to be too close to the surface.  Founders Village demanded that Colorado Pool remove and replace the pool, and Colorado Pool contacted its insurance carrier, Scottsdale Insurance Company (“Scottsdale”), with which Colorado Pool held a CGL policy.  After inspecting the pool, Scottsdale’s claims adjuster stated that the insurance policy would cover losses associated with removing and replacing the pool.

    Read the full story…

    Reprinted courtesy of Heidi Gassman, Higgins, Hopkins, McLain & Roswell, LLC. Ms. Gassman can be contacted at gassman@hhmrlaw.com


    Alabama “occurrence” and subcontractor work exception to the “your completed work” exclusion

    November 18, 2011 — CDCoverage.com

    In Town & Country Property, LLC v. Amerisure Ins. Co., No. 1100009 (Ala. Oct. 21, 2010), property owner Town & Country contracted with insured general contractor Jones-Williams for the construction of a car dealership. All of the construction work was performed by Jones-Williams subcontractors. After completion, Town & Country sued Jones-Williams for defective construction. Jones-Williams’ CGL insurer Amerisure defended. The case was tried and a judgment was entered against Jones-Williams in favor of Town & Country. After Amerisure denied any obligation to pay the judgment, Town & Country sued Amerisure in a statutory direct action.

    Read the full story…

    Reprinted courtesy of CDCoverage.com.


    “Details Matter” is the Foundation in a Texas Construction Defect Suit

    March 1, 2012 — CDJ Staff

    The Court of Appeals of Texas has ruled in the case of Barzoukas v. Foundation Design. Mr. Barzoukas contracted with Heights Development to build a house. He subsequently sued Heights Developments and “numerous other defendants who participated in the construction of his house.” Barzoukas eventually settled with all but two defendants, one who went bankrupt and Foundation Design, the defendant in this case. In the earlier phase, Barzoukas made claims of “negligence, negligent misrepresentation, fraud, fraudulent inducement, conspiracy, and exemplary damages in connection with the foundation.”

    Foundation Design had been hired to install 15-foot piers to support the foundation. The engineer of record, Larry Smith, sent a letter to Heights Development noting that they had encountered hard clay stone when drilling. Smith changed the specifications to 12-foot piers. Initially, the City of Houston called a halt to work on the home when an inspector concluded that the piers were too shallow. Heights Development later convinced the city to allow work to continue. Subsequently, experts concluded that the piers were too shallow.

    Foundation Design filed a motion for summary judgment. The trial court granted this, “without specifying the basis for its ruling.” Barzoukas contends the court was in error. Foundation Design contends that “Barzoukas failed to proffer competent evidence establishing that their conduct proximately caused damages.” Further, they did not feel that Smith’s letter gave “rise to viable claims for fraud and fraudulent inducement.”

    One problem the court had was a lack of evidence. The court noted that “the purported subcontract is entirely missing” in the pleadings. The court has no contract between Bazourkas and Heights Development, nor one between Heights Development and either Foundation Design or Smith. The court underscored the importance of this, writing, “details matter.” They found that “the details are largely missing here.” Without the contract, the court found it impossible to determine if “Smith or an entity related to him agreed to indemnify Heights Development for damages arising from Smith’s negligent performance.”

    As the material facts are in dispute, the appeals court found that there were no grounds for a summary judgment in the case. “Pointing to the existence of a contract between Heights Development and Barzoukas, or to the existence of a subcontract, is the beginning of the analysis ? not the end.”

    Foundation Design and Smith also claimed that Barzoukas’s expert did not proffer competent evidence and that the expert’s opinions were conclusory. The trial court did not rule on these claims and the appeals court has rejected them.

    Finally, Barzoukas made a claim that the trial court should not have rejected his argument of fraud and fraudulent inducement. Here, however, the appeals court upheld the decision of the lower court. “Barzoukas did not present evidence supporting an inference that Smith or Foundation Design made a purposeful misrepresentation.

    The court remanded the case to the trial court for reconsideration. One member of the panel, Judge Charles Seymore, upheld the entire decision of the trial court. He dissented with the majority, finding that the economic loss rule foreclosed the claim of negligence.

    Read the court’s decision…


    Defective Shingle Claims Valid Despite Bankruptcy

    June 19, 2012 — CDJ Staff

    The Third Circuit Court has allowed claims to go forward against Owens Corning for making allegedly defective shingles. The shingles split, leading to leaking roofs. The building products manufacturer filed for bankruptcy in 2000, which “extinguished” claims against it. The company was facing millions in liabilities over asbestos lawsuits.

    The lawsuit was filed in 2009. The courts initially found the lawsuit timely, but the Third Circuit Court later applied determined the exposure stated before the bankruptcy. On appeal, the court has reversed this and is again allowing the suit to proceed.

    Read the full story…


    Residential Construction: Shrinking Now, Growing Later?

    August 17, 2011 — CDJ Staff

    Jim Haugey, the Chief Economist for Reed Construction Data noted that new residential construction spending fell 0.2% in June and a slightly larger drop of 0.5% in residential remodeling. While economic growth is still low, Haugey states that homebuilders have “record low inventories.” He forecasts a shrinkage of 1.5% in 2011, followed by about 20% growth in 2012.

    Read the full story…


    Seven Tips to Manage Construction Defect Risk

    July 10, 2012 — CDJ Staff

    Jody T. Wright looks at “seven strategies being used around the country to identify, manage and mitigate your exposures” in a piece in Business Insurance. Wright, Senior VP, Construction Department Manager for Lockton Companies in Denver, gives seven simple steps from the perspective of a insurer.

    His first step is to match your project to your insurance. He suggests keeping the riskier projects separate, noting that from an insurer’s point-of-view, “any project that creates a homeowners association carries a higher potential threat of future litigation.” This leads to his second point: you need to “determine what makes your liability insurer nervous.” In other words, talk with your insurer.

    His third point suggests that builders look back and see if there is a pattern of problems that have lead to payouts from your insurer. Keep your insurer happier by making sure these areas don’t continue to be problems. Nor should you look for new problems. He suggests against leading in new technologies.

    Three more points deal with being careful about with whom you associate. He tells builders to negotiate their contracts, avoiding clauses that would obligate a builder to “indemnify the owner for the negligent work of others that they did not control.” Avoid subcontractors “with loss patterns that might affect your project and reputation.” Builders should identify “owners with a pattern of suing contractors” adding that risk to the cost of the job. They should also identify “the most effective attorneys and expert witnesses” and get them involved before the litigation starts.

    Read the full story…


    New Safety Standards Issued by ASSE and ANSI

    March 28, 2012 — Melissa Dewey Brumback, Construction Law North Carolina

    The American National Standards Institute (ANSI) and the American Society of Safety Engineers (ASSE) have recently announced their approval of two new safety standards to enhance construction site safety.

    The two new standards, which are set to take effect during June 2012, are the ANSI/ASSE A10.1-2011 Pre-Project and Pre-Task Safety and Health Planning for Construction and Demolition Operations, and the ANSI/ASSE A10.26-2011 Emergency Procedures for Construction and Demolition Sites.

    The new A10.1-2011 standard was designed to assist construction owners, contractors, and designers by ensuring that safety and health planning were standard parts of their pre-construction planning. It is also intended to help owners of construction sites to establish a process for evaluating constructor candidates with regard to their safety and health performance planning.

    The A10.26 standard applies to emergency situations, including fires, collapses, and hazardous spills. The standard deals with emergency rescue, evacuation, and transportation of injured workers, and also plans for coordinating with emergency medical facilities ahead of potential disasters.

    Read the full story…

    Reprinted courtesy of Melissa Dewey Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.


    Las Vegas Home Builder Still in Bankruptcy

    October 23, 2012 — CDJ Staff

    American West Development attempted to exit Chapter 11 bankruptcy on September 27, but their plan was turned down by U.S. Bankruptcy Court Judge Mike Nakagawa. According to the Las Vegas Review-Journal, Judge Nakagawa rejected the plan over a trust fund for construction defects. America West’s attorney said they were hoping to complete the process by the end of the year.

    Under approved portions of the plan, America West’s owner, Lawrence Canarelli, will retain control of the corporation, although he must contribute $10 million into the firm and an additional $1.5 million into the fund for construction defects. America West faces charges for construction defects reported in the broad range of “less than $20 million” to “as much as $80 million.”

    Read the full story…


    Court Requires Adherence to “Good Faith and Fair Dealing” in Construction Defect Coverage

    September 30, 2011 — CDJ Staff

    The California Court of Appeals has ruled in the case of Allied Framers, Inc. v. Golden Bear Insurance Company. Allied had been sued in a construction defect case and its primary insurer had become insolvent. Coverage for Allied’s defense was paid for by the California Insurance Guarantee Association through June 8, 2006. When warned that CIGA’s involvement was ending, Allied notified Golden Bear, which declined to provide coverage.

    In the matters that followed, Golden Bear claimed that Allied had not exhausted its $1 million in primary insurance. Allied then showed that $1 million had already been paid out in the case. A few months thereafter, Golden Bear offered a $500,000 settlement on behalf of Allied which was rejected. Thereafter, Golden Bear hired new counsel to defend Allied. Golden Bear received, but allegedly did not pay, invoices Allied sent from their former counsel. Golden Bear finally settled the construction defect case for $2 million.

    Allied’s original counsel sued Allied for payment. Golden Bear declined coverage. Allied then claimed that Golden Bear liable on several counts, arising from its failure to settle the construction defect action earlier than it did and its failure to pay Allied’s counsel. Golden Bear demurred, arguing that Allied had now exhausted is coverage with the $2 million settlement. The lower court sustained Golden Bear’s demurrer, dismissing Allied’s complaints.

    The appeal court reviewed Allied’s seven complaints and sustained most of them. However, the court did reverse the trial court’s order in regard to Allied’s complaint that Golden Bear breached an implied covenant of good faith and fair dealing. The appeals court was not convinced that Golden Bear properly evaluated the settlement demand in the underlying construction defect case. The court found three other ways in which Golden Bear’s actions might show bad faith, in refusing to pay defense fees “after promising [Allied] such costs would be paid in full,” “failing to advise Allied about ‘actual or potential negative consequences of agreeing to the proposed settlement,’” and that their choice of counsel “failed to protect [Allied’s] interests in the negotiation.”

    Read the court’s decision…


    Court Orders House to be Demolished or Relocated

    April 26, 2011 — April 26, 2011 Beverley BevenFlorez - Construction Defect Journal

    Decision Affirmed in Central Arkansas Foundation Homes, LLC v. Rebecca Choate

    The Arkansas Court of Appeals affirmed the decision by the trial court in Central Arkansas Foundation Homes, LLC v. Rebecca Choate. In the trial case, Central Arkansas Foundation Homes (CAFH) sought payment for a home built for Choate, while Choate alleged that the builders committed multiple construction defects including using the wrong foundation materials and positioning the house in the wrong direction.

    After the house was built, CAFH contacted Choate regarding payment, however, Choate alleged that the finished product did not match the contract. “ After CAFH completed construction, it obtained permanent home financing for Choate and tried to contact her to close the transaction. Choate did not respond until October 2005, when she sent CAFH a list of alleged construction defects, including that the house was facing in the wrong direction; that it was not built on a slab; and that the fireplace, garbage disposal, driveway, and storage area were missing. CAFH replied to Choate in writing, telling her that she had until January 6, 2006, to close on the house or CAFH would sell it. The correspondence enclosed worksheets showing that the amount Choate would owe at closing exceeded $94,000, which included interest that had accrued on the as-yet unpaid construction loan.”

    Initially, the court found in favor of CAFH. “On April 18, 2007, Choate’s attorney withdrew from representing her. Soon thereafter, CAFH’s attorney asked the court to set a final hearing on the case. The attorney purportedly sent Choate a letter by regular mail on May 15, 2007, advising her that the case was set for trial on July 9, 2007. Choate, however, did not appear. CAFH did appear, and its general manager, John Oldner, testified to events leading up to the case and the amount of damages claimed. According to Oldner, the interest on the construction loan had accrued to the point that CAFH now sought $104,965.88 from Choate. The court found in favor of CAFH and entered judgment for that amount, plus attorney fees, on July 18, 2007. The court ruled that CAFH could sell the house and either remit any excess to Choate or look to Choate for the deficiency if the sales price did not cover the judgment.”

    However, Choate successfully argued that she did not receive notice of the trial. A new trial was ordered, and the outcome was quite different. “On June 6, 2008, the circuit court entered judgment for Choate, ruling that the house was not in substantial compliance with the parties’ contract and that the contract should be rescinded. The court found that the house suffered from numerous construction defects, that the contract contemplated a slab rather than a concrete-pier foundation, and that CAFH ignored Choate’s complaints that the house was facing the wrong way. The judgment directed CAFH to hold Choate harmless on the construction loan, to deed Choate’s two acres back to her, and to remove the house from Choate’s property.”

    The Court of Appeals “found that Choate would be unjustly enriched by retaining the benefit of the septic systems and utility lines that CAFH installed on her land. The court therefore awarded $5340 to CAFH as a quantum-meruit recovery for the value of that work. CAFH contends that the award is not sufficient, but we see no clear error.” In the end, the Court of Appeals provided this reason for declining to reverse the trial court’s decision: “The court in this case apparently concluded that the house constructed by CAFH was so fundamentally at odds with Choate’s contractual expectations that she was not unjustly enriched and should simply be, as nearly as possible, returned to the status quo ante. Accordingly, the court ordered the house removed from her property and permitted CAFH to either relocate the house or salvage the house’s materials and unused appliances. We decline to reverse the court’s weighing of the equities in this manner.”

    Read the court’s decision…


    A Call to Washington: Online Permitting Saves Money and the Environment

    October 28, 2011 — Douglas Reiser, Builders Counsel

    Here’s some good news for Oregon contractors:  Electronic Permitting is here. That’s right, no more standing in line with folders full of printed submittals and waiting all day for your permit. The click of a few buttons and you are in business. Great news, right? Unfortunately, Oregon isn’t sharing that celebration with Washington. So I say - why not?

    Last week, the State of Oregon released its new ePermitting online interface. The website allows contractors, owners and even local building departments to create an account, submit building plans and procure permits. With your account, you can track the progress of submissions, print documents and get posting information.

    The state ran a limited test version in the City of Florence since 2009, working out the kinks. Perhaps the most impressive result of the new system is that Oregon tackled the task of coagulating a local process into one central location.

    Read the full story...

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com