CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

2017 California Construction Law Update

December 15, 2016 — Garret Murai – California Construction Law Blog
To say it’s been an exciting year in politics would be an understatement. While most of the nation’s attention was focused on the presidential election, state legislatures, including California’s, were busy at work. The California State Legislature introduced 3099 bills during the second session of the 2015-2016 session of which 808 bills were signed into law. 2016 saw the enactment of several bills of interest to the construction industry including bills related to alternative project delivery methods, prevailing wages, and licensing. Each of the bills discussed below takes effect on January 1, 2017. Project Delivery AB 2126 – Amends Public Contract Code section 6701 to increase the number of projects the Department of Transportation may use the construction manager/general contractor method of project delivery from no more than 6 projects, to 12 projects, of which 8 of the 12 projects would be required to use Department employees or consultants under contract with the Department to perform all project design and engineering services. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Court of Appeal Confirms Privette Doctrine as Applied to Passive Conduct of Property Owner

March 22, 2018 — Bruce Cleeland and Frances Ma – Publications & Insights
In Delgadillo v. Television Center, Inc., 2018 No. B270985, the California Court of Appeal examined and refined the Privette doctrine. Mr. Delgadillo worked as a supervisor/window cleaner for a company named Chamberlin Building Services (CBS). Television Center, Inc. (TCI) purchased an existing building and thereafter contracted with CM Cleaning Solutions, Inc. (CMC) to provide cleaning and janitorial services. CMC, on behalf of TCI, solicited a proposal from CBS to wash the building’s windows. CBS and its employees made all decisions about how the window washing would be accomplished. The window washing equipment used on the job was owned, inspected and maintained by CBS. In violation of CBS’ policy, Mr. Delgadillo, attached a safety line to a single connector which was not an acceptable anchor point. The bracket failed and Mr. Delgadillo fell 50 feet to his death. Survivors of Mr. Delgadillo filed suit against TCI for negligence and negligence per se, alleging that Mr. Delgadillo was fatally injured because TCI failed to install structural roof anchors, as required by several statutes. Reprinted courtesy of Bruce Cleeland, Haight Brown & Bonesteel LLP and Frances Ma, Haight Brown & Bonesteel LLP Mr. Cleeland may be contacted at bcleeland@hbblaw.com Ms. Ma may be contacted at fma@hbblaw.com Read the court decision
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Cincinnati Goes Green

May 10, 2013 — CDJ STAFF
Columbus Dispatch reports that under a program in Cincinnati, homeowners can receive tax breaks that eliminate their property taxes for up to fifteen years. As a result, while about 100 single-family homes in Cincinnati are LEED-certified, Columbus can claim only one. The rest of the state also lags behind, with only eighteen percent of LEED-certified homes outside Cincinnati. Jim Weiker reports that energy efficiency is at the top of homebuyers’ wants, even beating out granite countertops. But although green certification seems to support a four percent increase in price, builders aren’t rushing to follow LEED standards. Read the court decision
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Buy Clean California Act Takes Effect on July 1, 2022

July 25, 2022 — Garret Murai - California Construction Law Blog
The Buy Clean California Act (BCCA) – Public Contract Code section 3500 et seq. – requires state agencies to consider the carbon content of the following products when awarding contracts:

• Structural steel;
• Concrete reinforcing steel;
• Flat glass; and
• Mineral wool board insulation.

It is anticipated that additional products may be added through future legislation. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Economic Loss Doctrine Bars Negligence Claim Against Building Company Owner, Individually

October 20, 2016 — Michael L. DeBona – The Subrogation Strategist
In Beaufort Builders, Inc. v. White Plains Church Ministries, Inc., 783 S.E.2d 35 (N.C. Ct. App. 2016), the Court of Appeals of North Carolina addressed whether the economic loss rule barred the negligence claim of White Plains Church Ministries, Inc. (White Plains) against Charles F. Cherry (Cherry), the owner of Beaufort Builders, Inc. (Beaufort Builders). The court held that, because the economic loss rule would bar White Plains’ negligence claims against Beaufort Builders, White Plains could not pursue a third-party negligence claim against Cherry, individually. Read the court decision
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Reprinted courtesy of Michael L. DeBona, White and Williams LLP
Mr. DeBona may be contacted at debonam@whiteandwilliams.com

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Sub-Limit Restricts Insured's Flood Damage Recovery

March 15, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The insured's recovery for flood damage was controlled by the policy's sub-limit. David S. Brown Enters. v. Affiliated FM Ins. Co., 2020 U.S. Dist. LEXIS 239208 (D. Md. Dec. 18, 2020). Roughly 6.6 inches of rain fell in Ellicott City, Maryland, causing extensive flooding. During the storm, a water main broke on Main Street, in relatively close proximity to the insured's two properties on Main Street. The foundations of the two properties washed away. The insured, David S. Brown Enterprises (DSB), had a business owners' policy with Affiliated with covered 204 named locations. The Main Street Properties were not listed, but the policy also provided certain coverage for unnamed locations. The sub-limit applicable to unnamed locations was $1,000,000. The sub-limit for flood, however, was $50,000, annual aggregate "as respects Errors & Omissions, Off-Premises Service Interruption, Unnamed Locations and Supply Chain combined." Affiliated paid $50,000 for the loss based upon the $50,000 Flood annual aggregated Sub-Limit for Unnamed Locations. DSB disagreed that the $50,000 sub-limit applied and filed suit. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Home Sales and Stock Price Up for D. R. Horton

February 04, 2013 — CDJ STAFF
They call themselves "America's Builder," and in the last three months of 2013, D. R. Horton exceeded the market's predictions of how many of the homes they built would translate into sales. At the end of 2011, they had $27.7 million in earnings. At the end of last year, they saw $66.3 million in earnings. The 2011 earnings work out to 9 cents per share. Analysts were expecting 14 cents per share, but D. R. Horton delivered 20 cents per share. The stock market responded with a 3.7% increase in the home builder's stock price, upping it by 79 cents to $22.10. Read the court decision
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Seller Cannot Compel Arbitration for Its Role in Construction Defect Case<

March 01, 2012 — CDJ STAFF

The buyer of a leaky home in Venice, California cannot be compelled to arbitration with the seller in a construction defect lawsuit, according to a decision in Lindemann v. Hume, which was heard in the California Court of Appeals. Lindemann was the trustee of the Schlei Trust which bought the home and then sued the seller and the builder for construction defects.



The initial owner was the Hancock Park Trust, a real estate trust for Nicholas Cage. Richard Hume was the trustee. In 2002, Cage agreed to buy the home which was being built by the Lee Group. Cage transferred the agreement to the Hancock Park Trust. Hancock had Richard Nazarin, a general contractor, conduct a pre-closing walk through. They also engaged an inspector. Before escrow closed, the Lee Group agreed to provide a ten-year warranty “to remedy and repair any and all damage resulting from water infiltration, intrusion, or flooding due to the fact that the door on the second and third floors of the residence at the Property were not originally installed at least one-half inch (1/2”) to one inch (1”) above the adjacent outside patio tile/floor on each of the second and third floors.”



Cage moved in and experienced water intrusion and flooding. The Lee Group was unable to fix the problems. Hume listed the home for sale. The Kamienowiczs went as far as escrow before backing out of the purchase over concerns about water, after the seller’s agent disclosed “a problem with the drainage system that is currently being addressed by the Lee Group.”



The house was subsequently bought by the Schlei Trust. The purchase agreement included an arbitration clause which included an agreement that “any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration.” The warranty the Lee Group had given to Hancock was transferred to the Schlei trust and Mr. Schlei moved into the home in May 2003.



Lindemann enquired as to whether the work done would prevent future flooding. Nazarin sent Schlei a letter that said that measures had been taken “to prevent that situation from recurring.” In February, 2004, there was flooding and water intrusion. Lindemann filed a lawsuit against the Lee Group and then added the Hancock Park defendants.



The Hancock Park defendants invoked the arbitration clause, arguing that Lindemann’s claims “were only tangentially related to her construction defect causes of action against the Lee Group.” On June 9, 2010, the trial court rejected this claim, ruling that there was a possibility of conflicting rulings on common issues of law. “With respect to both the developer defendants and the seller defendants, the threshold issue is whether there was a problem with the construction of the property in the first instance. If there was no problem with the construction of the property, then there was nothing to fail to disclose.” Later in the ruling, the trial court noted that “the jury could find there was no construction defect on the property, while the arbitration finds there was a construction defect, the sellers knew about it, and the sellers failed to disclose it.” The appeals court noted that while Hancock Park had disclosed the drainage problems to the Kamienowiczs, no such disclosure was made to Sclei.



The appeals court described Hancock Park’s argument that there is no risk of inconsistent rulings as “without merit.” The appeals court said that the issue “is not whether inconsistent rulings are inevitable but whether they are possible if arbitration is ordered.” Further, the court noted that “the Hancock Park defendants and the Lee Group have filed cross-complaints for indemnification against each other, further increasing the risk of inconsistent rulings.”



The court found for Lindemann, awarding her costs.

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