Hyundai to Pay 47M to Settle Construction Equipment's Alleged Clean Air Violations
November 04, 2019 —
Tom Ichniowski - Engineering News-RecordHyundai Construction Equipment Americas Inc. and its parent company are paying a $47-million civil penalty to settle federal allegations that the company sold construction vehicles that weren't certified to meet the appropriate Clean Air Act emissions standards, federal agencies say.
Reprinted courtesy of
Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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Scary Movie: Theatre Developer Axed By Court of Appeal In Prevailing Wage Determination Challenge
July 19, 2017 —
Steven M. Cvitanovic & Omar Parra - Haight Brown & Bonesteel LLPThe First Appellate District of the California Court of Appeal recently held that the construction of a movie theater, which was performed in furtherance of a city’s redevelopment agenda, constitutes a “public work” within the meaning of California’s prevailing wage law. Cinema West, LLC v. Christine Baker, No. A144265, (Cal. Ct. App. June 30, 2017).
Like many California cities, the City of Hesperia (the “City”) endeavored to revitalize its downtown. In furtherance of this goal, the City acquired vacant property in its downtown with the hope of turning it into a new city hall, a public library, and “complimentary retail, restaurant, and entertainment establishments.” After completing construction of the civic buildings, the City entered into discussions with Cinema West, LLC (“Cinema West”) for the construction of a “state-of-the-art cinema experience.”
Under the agreement with the City, Cinema West agreed to purchase the property from the City at fair market value, obtain financing for the construction costs, and build and maintain the movie theater. The City, on the other hand, agreed to provide Cinema West with an interest-bearing loan forgivable over ten years, and to construct an adjacent parking lot “for use by Cinema West... as a parking lot for the movie theater.” The City, moreover, agreed to issue Cinema West a one-time payment as consideration for the operating covenant.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
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Congratulations to Partner Vik Nagpal on his Nomination for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
March 27, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is honored to share that Downtown San Diego and Encinitas Managing Partner Vik Nagpal is nominated for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
Every year, West Coast Casualty recognizes an individual who is committed, trustworthy, and has contributed to the betterment of the construction defect community. The award is named after the late Judge Jerrold S. Oliver who is considered a “founding father” in the alternate resolution process in construction claims and litigation. Each year, members of the construction community are asked to nominate individuals who invoke the same spirit as Judge Oliver.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Insurer Granted Summary Judgment on Faulty Workmanship Claim
October 20, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court found no coverage for the insured developer after water intruded into the homeowners' basements. W. Bend Mut. Ins. Co. v. Cleland Homes, 2016 U.S. Dist. LEXIS 108030 (N.D. Ind. Aug. 16, 2016).
The underlying complaint alleged that the subdivision was designed to create a run off of ground water onto the lots where Cleland built plaintiffs' homes. The design of the subdivision and construction of the homes was defective in that the plaintiffs' homes were situated so that the water table underneath their homes was so high that their basements flooded and damage occurred to the structure of their homes. Cleland was allegedly negligent in designing and/or constructing the homes or negligent in the water drainage plan for the subdivision.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Gillotti v. Stewart (2017) 2017 WL 1488711 Rejects Liberty Mutual, Holding Once Again that the Right to Repair Act is the Exclusive Remedy for Construction Defect Claims
November 21, 2017 —
Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. - Chapman Glucksman Dean Roeb & Barger BulletinOriginally published by CDJ on June 5, 2017
Background
In Gillotti v. Stewart (April 26, 2017) 2017 WL 1488711, which was ordered to be published on May 18, 2017, the defendant grading subcontractor added soil over tree roots to level the driveway on the plaintiff homeowner’s sloped lot. The homeowner sued the grading subcontractor under the California Right to Repair Act (Civil Code §§ 895, et seq.) claiming that the subcontractor’s work damaged the trees.
After the jury found the subcontractor was not negligent, the trial court entered judgment in favor of the subcontractor. The homeowner appealed, arguing that the trial court improperly construed the Right to Repair Act as barring a common law negligence theory against the subcontractor and erred in failing to follow Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98. The Third District Court of Appeal disagreed and affirmed the trial court’s judgment in favor of the subcontractor.
Impact
This is the second time the Third District Court of Appeal has held that Liberty Mutual (discussed below) was wrongly decided and held that the Right to Repair Act is the exclusive remedy for construction defect claims. The decision follows its holding in Elliott Homes, Inc. v. Superior Court (Hicks) (2016) 6 Cal.App.5th 333, in which the Court of Appeal held that the Right to Repair Act’s pre-litigation procedures apply when homeowners plead construction defect claims based on common law causes of action, as opposed to violations of the building standards set forth in the Right to Repair Act. Elliott is currently on hold at the California Supreme Court, pending the decision in McMillin Albany, LLC v. Superior Court (2015) 239 Cal.App.4th 1132, wherein Liberty Mutual was rejected for the first time by the Fifth District. CGDRB continues to follow developments regarding the much anticipated McMillin decision closely, as well as all related matters.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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DE Confirms Robust D&O Protection Despite Company Demise
February 18, 2015 —
James Yoder, Michael Onufrak and Siobhan Cole – White and Williams LLPOn Feb. 5, 2015, the United States Bankruptcy Court for the District of Delaware, per Judge Brendan L. Shannon, entered proposed findings of fact and conclusions of law in favor of the former president and CEO of Ultimate Escapes Inc., James M. Tousignant, and its chairman, Richard Keith, after determining that Tousignant’s actions in negotiating and executing a controversial asset purchase agreement were protected by the business judgment rule, despite the demise of the company a short time later. The failure of a business strategy, in and of itself, does not create liability on the part of the former directors and officers of a bankrupt company.
Background
Ultimate Escapes was a luxury destination club that provided its members with access to high-end vacation residences around the world. Unfortunately, Ultimate Escapes’ business suffered greatly from the economic downturn that began in 2008, and on Sept. 20, 2010, Ultimate Escapes filed voluntary petitions for relief pursuant to Chapter 11 of the Bankruptcy Code.
Reprinted courtesy of White and Williams LLP attorneys
James Yoder,
Michael Onufrak and
Siobhan Cole
Mr. Yoder may be contacted at yoderj@whiteandwilliams.com
Mr. Onufrak may be contacted at onufrakm@whiteandwilliams.com
Ms. Cole may be contacted at coles@whiteandwilliams.com
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U.S. Supreme Court Allows Climate Change Lawsuits to Proceed in State Court
May 01, 2023 —
George Leahy - Lewis BrisboisWashington, D.C. (April 25, 2023) - On Monday, April 24, the U.S. Supreme Court refused to hear appeals by several major energy companies that sought to remove lawsuits filed by state and local governments from state court into federal court. The Court’s
certiorari denials reject companies’ appeals in five separate cases, which involved claims brought by municipalities in Colorado, Maryland, California, Hawaii, and Rhode Island. Each municipality claims that it has been harmed by the effects of climate change, allegedly attributed to the companies’ carbon emissions.
The Court’s denials effectively allow the lawsuits to continue in state court, often seen as favorable for plaintiffs due to a greater potential for jury trials and associated damages awards than might be available in federal court. Following a
2021 Supreme Court ruling in a related case that granted the companies an additional chance to argue that their cases should be heard in federal court, the lower federal appeals courts in each of the five cases concluded that the companies had not established sufficient grounds to establish proper venue and jurisdiction in federal court. The Supreme Court’s April 24 denial leaves those decisions unaltered, allowing the lawsuits to continue in state court for further consideration.
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George Leahy, Lewis Brisbois
Check The Boxes Regarding Contractual Conditions Precedent to Payment
August 21, 2023 —
David Adelstein - Florida Construction Legal UpdatesRemember this: complying with contractual conditions precedent to payment is important. There is a reason why construction contracts include contractual conditions precedent to payment. The contract does not include this language for sh*ts and giggles. This language is included to establish what is required of the payee before payment becomes due. There may be conditions precedent to the payment of progress payments. There may be conditions precedent to the payment of final payment. Payment is not due until the conditions precedent have been satisfied. Do yourself a favor and consider this language in the construction contract, particularly if a dispute arises. If the condition precedent has not or cannot be satisfied, game plan as to the factual reason. The best thing to do is be prepared – check the boxes regarding conditions precedent to ensure you have considered this contractual language.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com