Tort Claims Against an Alter Ego May Be Considered an Action “On a Contract” for the Purposes of an Attorneys’ Fees Award under California Civil Code section 1717
April 12, 2021 —
Tony Carucci - Snell & Wilmer Real Estate Litigation BlogCalifornia Civil Code section 1717 entitles the prevailing party to attorneys’ fees “[i]n any action on a contract,” where the contract provides for an award of attorneys’ fees to the prevailing party, regardless of whether the prevailing party is the party specified in the contract or not. But what about an action that alleges tort causes of action against an alter ego of a contracting party but that does not include a breach of contract claim against the alter ego? This was the question facing the California Court of Appeal in 347 Group, Inc. v. Philip Hawkins Architect, Inc. (2020) 58 Cal.App.5th 209.
In that case, the plaintiff 347 Group sued and obtained a default judgment for breach of contract against defendant Philip Hawkins Architect, Inc. Id. at 211–12. 347 Group had also sued Philip Hawkins individually as well as Design-Build, Inc., the company Hawkins founded after putting Philip Hawkins Architect, Inc. into bankruptcy. Id. at 212. 347 Group originally alleged claims for breach of contract, fraudulent conveyance, and conspiracy against Hawkins and Design-Build, seeking to establish that Hawkins and Design-Build were the alter egos of the contracting party, Philip Hawkins Architect, Inc., but later dismissed the breach of contract claim. Id. Hawkins and Design-Build eventually prevailed on the tort causes of action, and moved for attorneys’ fees. Id.
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Tony Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
Real Estate & Construction News Round-Up 05/04/22
May 23, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogConstruction payment apps are on the rise, the European Union proposes to block Russians from buying European real estate, warehouse vacancy rates hit a 27-year low, and more.
- The Metaverse Group has made itself one of the most prominent virtual land owners, having invested more than $10 million into digital real estate purchases. (Katie Canales, Business Insider)
- The European Union proposed to block Russians from buying European real estate in its six package of sanctions following Russia’s invasion of Ukraine. (Jorge Valero and Alberto Nardelli, Bloomberg)
- Although smart office buildings are able to easily identify viruses, they are susceptible to hacks, raising privacy and cybersecurity concerns in the market. (Konrad Putzier, The Wall Street Journal)
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Pillsbury's Construction & Real Estate Law Team
L.A. Mixes Grit With Glitz in Downtown Revamp: Cities
May 13, 2014 —
James Nash and Nadja Brandt – BloombergNear streets so gritty they were used as the backdrop for a shootout in the next “Fast & Furious” movie, million-dollar condos and $38 racks of lamb beckon the urban pioneers of Los Angeles.
The rehab of warehouses and factories in the Arts District is the latest wave in a revival transforming the core of the second-largest U.S. city. Since 2011, about $7 billion has been poured into downtown. A decade ago its most prominent residents were the homeless. Now condos sell for a median of $523.36 a square foot -- more than in Beverly Hills. Alma, Bon Appetit magazine’s best new U.S. restaurant in 2013, is a few blocks from the convention center the city plans to renovate.
“All of a sudden, overnight, you have more cranes going up in downtown L.A. than any other neighborhood in Southern California, by far,” said Lew Horne, head of the regional CBRE Real Estate Group Inc. (CBG) office.
Mr. Nash may be contacted at jnash24@bloomberg.net; Ms. Brandt may be contacted at nbrandt@bloomberg.net
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James Nash and Nadja Brandt, Bloomberg
NY Attorney General to Propose Bill Requiring Climate Adaptation for Utilities
May 21, 2014 —
Gerald B. Silverman – BloombergBloomberg BNA — New York Attorney General Eric T. Schneiderman (D) has proposed legislation to require that New York's electricity and gas utilities assess their vulnerability to the impacts of climate change and prepare a plan for adapting to severe weather.
Schneiderman May 19 said the proposed legislation would build on a February decision by the state Public Service Commission (PSC), which approved a plan by Consolidated Edison to spend $1 billion over the next four years for storm hardening and resiliency projects.
A spokeswoman for the attorney general told Bloomberg BNA that he is working with members of the Legislature to have the bill formally introduced.
The PSC decision also required that all New York utilities integrate the potential impacts of climate change into their system planning and construction forecasts and budgets.
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Gerald B. Silverman, Bloomberg
Construction Litigation Roundup: “Builder’s Risk Indeed”
October 24, 2023 —
Daniel Lund III - LexologyA contractor for a hotel in Seattle was tasked with constructing the hotel utilizing premanufactured modular hotel rooms. The modular unit portion of the project was the subject of a $15.8 million subcontract between the general contractor and the manufacturer. The manufacturer was also responsible to the GC for shipping and installing the modular units.
Shipping was to be “DDP,” or “Delivery Duty Paid” – which, according to a New York federal court, “is an international shipping term meaning that the seller assumes all responsibilities and costs for delivering property to the named place of destination, including export and import clearance, fees, duties, and taxes.” Additionally, per the subcontract, the manufacturer was responsible for “ensur[ing] all modular units [were] covered, secured[,] and protected from damage during the shipping process….” The modular units were shipped from Poland to Seattle. In the shipping process, the units spent some time in the Port of Everett in Washington state, where the units sustained water damage while sitting in port.
A related damage claim made by the subcontractor against the general contractor’s builder’s risk policy. On the face of the policy, the policy covered subcontractors as “additional insured” parties, covered all manner of materials and the like to be used on the project, and would provide that coverage in the process of transporting the materials insofar as “inland or coastal waters” were concerned. Yet, the builder’s risk insurer refused to cover the claim for the damages to the modular units which occurred while sitting in port in Everett.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
MTA Debarment Update
December 02, 2019 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.Alliance for Fair and Equitable Contracting Today, Inc., a nonprofit formed by five trade associations, including the GCA, the BTEA and the NY Building Congress, has sued the Metropolitan Transportation Authority over rules that debar contractors for delays and cost overruns on MTA projects without regard to the reasons for the delays and cost overruns.
As described in our prior client alert (see
here), the current rules automatically debar firms that are determined to have gone over the MTA approved contract price or time by more than 10%. The rules do not consider mitigating circumstances. Delays and cost overruns are often caused by unforeseen conditions, design errors and omissions, and changes requested by the MTA. The MTA’s rules could lead contractors to absorb additional costs they shouldn’t be responsible for rather than face the risk of being debarred. As argued in Alliance’s action, “Debarment is the death penalty for a public works contractor, and not just in New York. A debarment by the MTA could result in debarment nationwide, given that public and private contractors throughout the country commonly inquire about bidders’ debarment history when considering project bids. The Debarment Statute and MTA Regulations thus effectively export an unreasonable law not only throughout New York State, but to all other states as well.”
Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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Congratulations to our 2019 Southern California Super Lawyers Rising Stars
July 30, 2019 —
John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty & Michael Parme - Haight Brown & Bonesteel LLPCongratulations to attorneys John Arbucci, Frances Brower, Lisa Hsiao, Kristian Moriarty and Michael Parme who were selected to the 2019 Southern California Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
T. Giovanni “John” Arbucci,
Frances Brower,
Lisa Hsiao,
Kristian Moriarty and
Michael Parme
Mr. Arbucci may be contacted at jarbucci@hbblaw.com
Ms. Brower may be contacted at fma@hbblaw.com
Ms. Lisa may be contacted at lhsiao@hbblaw.com
Mr. Kristian may be contacted at kmoriarty@hbblaw.com
Mr. Parme may be contacted at mparme@hbblaw.com
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Trio of White and Williams Attorneys Named Top Lawyers by Delaware Today
January 06, 2020 —
John Balaguer, FACTL, Stephen Milewski, & Dana Monzo - White and WilliamsWhite and Williams is pleased to announce that John Balaguer, Managing Partner of the Wilmington office, Partner Stephen Milewski, and Counsel Dana Spring Monzo have been chosen by their peers as Delaware Today's 2019 "Top Lawyers." The annual list recognizes John, Steve and Dana in the practice area of Medical Malpractice, Defense.
Delaware Today conducts an annual survey of the 4,900 members of the Delaware State Bar Association to identify top lawyers in specific practice areas. The magazine’s editors compile the results to create the annual Top Lawyers list, which is published in the November issue.
Reprinted courtesy of White and Williams attorneys
John Balaguer,
Stephen Milewski and
Dana Monzo
Mr. Balaguer may be contacted at balaguerj@whiteandwilliams.com
Mr. Milewski may be contacted at milewskis@whiteandwilliams.com
Ms. Monzo may be contacted at monzod@whiteandwilliams.com
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