Inability to Confirm Coverage Supports Setting Aside Insured’s Default Judgment on Grounds of Extrinsic Mistake
January 21, 2019 —
Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel LLPIn Mechling v. Asbestos Defendants (No. A150132, filed 12/11/18), a California appeals court affirmed the trial court’s grant of an insurer’s motion to set aside default judgments entered against its defunct insured pursuant to the trial court’s inherent, equitable power to set aside defaults on the ground of extrinsic mistake, thereby allowing the insurer to intervene and defend its own interests in the case.
In Mechling, Fireman’s Fund insured Associated Insulation of California, which was named as a defendant in asbestos litigation filed in 2009. Associated had ceased operating in 1974, but was somehow successfully served with the complaint and defaulted, leading to default judgments of several million dollars. Notice of the judgments was served on Associated but not Fireman’s Fund.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Court Rules Planned Development of Banning Ranch May Proceed
June 10, 2015 —
Kristian B. Moriarty and Lawrence S. Zucker II – Haight Brown & Bonesteel, LLPIn Banning Ranch Conservancy v. City of Newport Beach (filed 5/20/2015, No. G049691), the California Court of Appeal, Fourth District, held the Environmental Impact Report prepared by the City of Newport Beach for the partial development of Banning Ranch complied with California environmental protection statutes and local ordinances.
Under the California Environmental Quality Act (“CEQA”), a city desiring to approve or carry out a project that may have significant effect on the environment must prepare an environmental impact report (“EIR”) designed to provide the public with detailed information about the effect which a proposed project will have on the environment. The California Coastal Act of 1976 provides for heightened protection of environmentally sensitive habitat areas (“ESHA”) defined as any “area in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments.”
In 2006, the City of Newport Beach adopted a General Plan for the physical development of the city. The plan specifically identifies Banning Ranch as having significant value as a wildlife habitat and open space resource for citizens. The general plan includes a primary goal of complete preservation of Banning Ranch as open space. To the extent the primary goal cannot be achieved, the plan identifies a secondary goal allowing limited development of Banning Ranch “to fund preservation of the majority of the property as open space.” The plan also requires the City to coordinate any development with the state and federal agencies.
Reprinted courtesy of
Kristian B. Moriarty, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com
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Superior Court Of Pennsylvania Holds That CASPA Does Not Allow For Individual Claims Against A Property Owner’s Principals Or Shareholders
January 07, 2015 —
William J. Taylor and Michael Jervis – White and Williams LLPIn Scungio Borst Assocs. v. 410 Shurs Lane Developers, LLC, the Superior Court of Pennsylvania held that an individual principal/shareholder of a property owner could not be held personally liable as an “agent of the owner” for unpaid invoices, penalties, and attorneys fees under the Pennsylvania Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516, even though the property owner itself had failed to make payments allegedly due under a construction contract.
CASPA is a Pennsylvania statute which is designed to protect contractors and subcontractors from nonpayment and which, to that end, establishes rules and deadlines for payment under construction contracts between property owners, contractors, and subcontractors. An owner or contractor who does not adhere to the Act’s payment requirements is subject to the imposition of interest, penalties, and attorneys’ fees. In this recent case, the property owner, a limited liability company, had retained the plaintiff contractor to perform construction services on a condominium project. Upon completion of the work, the contractor was not paid approximately $1.5 million that it was owed under the contract. The contractor filed suit under CASPA to obtain the payment it was owed plus interest, penalties and fees, and named both the property owner and its individual principal as defendants. The trial court granted summary judgment to the individual principal on all claims asserted against him, and the contractor appealed, arguing that CASPA allows for claims against both a property owner and its principal when the principal is an “agent of the owner acting with the owner’s authority.”
Reprinted courtesy of
Michael Jervis, White and Williams LLP and
William J. Taylor, White and Williams LLP
Mr. Jervis may be contacted at jervism@whiteandwilliams.com; Mr. Taylor may be contacted at taylorw@whiteandwilliams.com
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Real Estate & Construction News Round-Up (05/18/22)
June 13, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogBusinesses renovate office spaces at a historic pace, China plans to build a 3D-printed hydropower dam without human workers, the U.S. infrastructure package has thousands of projects underway, and more.
- Miami’s crypto-real estate boom has been challenging all conventional wisdoms as the price of crypto currencies like Bitcoin have surged, which could spill over into other popular real estate markets. (Peter Lane Taylor, Forbes)
- China is planning to build the world’s first 3D-printed hydropower dam in Tibet, with an AI-powered design and no human workers. (Matthew Loh, Business Insider)
- With the hybrid work model here to stay, businesses are having their offices renovated at a historic pace. (Joe Dyton, Connected Real Estate Magazine)
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Pillsbury's Construction & Real Estate Law Team
California Contractor License Bonds to Increase in 2016
December 02, 2015 —
Garret Murai – California Construction Law BlogThe post, which originally appeared on
The Surety Bond Insider, was written by Jon Gottschalk, a member of the SuretyBonds.com Educational Outreach team. on
SuretyBonds.com helps contractors fulfill their bonding requirements.
The Contractors State License Board (CSLB) is requiring all California contractors to purchase a $15,000 bond by January 1, 2016— a $2,500 increase from the $12,500 amount that was previously required. The additional $2,500 was previously accounted for by an additional requirement to obtain a contractor’s license. Those applying for the license had to post the $12,500 surety bond and proof of financial solvency in the amount of $2,500. Essentially, contractors were required to show that their current assets were greater than their liabilities by no less than $2,500. By increasing the bond amount to include that additional $2,500, the CSLB has removed the burden of proving financial solvency from those who wish to obtain their license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Home insurance perks for green-friendly design (guest post)
February 04, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaWondering how to get your residential clients to pony up more money for green design? Check out today’s guest post by Carrie Van Brunt-Wiley and Katherine Wood. They are writers for the Homeowners’ Insurance Blog, which serves as a resource center for insurance consumers and homebuyers across the country.
The U.S. Green Building Council’s new LEEDv4 standards present challenges for contractors, engineers, and architects – the restrictions in many cases are more stringent. There is, however an added bonus to remaining on the sustainable-building track: it’s more marketable than you think.
That’s because green homes don’t just appeal to buyers with environmental concerns any more. Now smart budgeters seek them out as well. Why? While it’s true that sustainable construction can cost about 2% more than conventional methods, McGraw-Hill’s Smart Market Report says it typically increases a building’s overall value by an average of 7.5% and improves the return on investment by 6.6%.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Congratulations to BWB&O for Ranking in The U.S. News – Best Lawyers ® as “Best Law Firms”!
November 19, 2021 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce the firm has once again been regionally ranked by The U.S. News – Best Lawyers® with a “Best Law Firms” recognition in two practice areas, Family Law and Commercial Litigation. BWB&O is also honored to be included among many elite and extremely impressive groups of law firms! To read the Twelfth Edition of the “Best Law Firms” rankings, please click here.
Best Lawyers has a prominent reputation for being the most respected peer-review publication in the history of the legal profession. The “Best Law Firms” rankings are based on a rigorous evaluation process, which includes a combination of client feedback, information provided on the Law Firm Survey, the Law Firm Leaders Survey, and Best Lawyers peer review.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
New England Construction Defect Law Groups to Combine
November 13, 2013 —
CDJ STAFFThe lawyers of Little Bulman Medeiros & Whitney PC will be joining Pierce Atwood on December 9, 2013. The combined firm will have a larger construction litigation practice. Little Bulman is already recognized for its handling of construction disputes. Pierce Atwood is one of the largest firms in New England. Their combined forces intended to create a strong presence in construction litigation throughout New England.
Gloria Pinza, a managing partner at Pierce Atwood said of Little Bulman that “their exceptional credentials in the construction law area will combine with our strong construction practice to create a regional practice that will provide highly competitive expertise, depth and value throughout New England and beyond.
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