Seattle Washington Building Expert Directory

Changes to Pennsylvania Mechanic’s Lien Code

July 13, 2017 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome Jim Fullerton. Jim is the President of the law firm of Fullerton & Knowles, P.C., which has attorneys licensed in Virginia, Maryland, Pennsylvania, and the District of Columbia, is a Martindale Hubbell Peer Rated Lawyer AV® Preeminent.™ The firm represents owners, lenders, design professionals, suppliers, subcontractors, general contractors and other members of the real estate and construction industries, filing mechanic’s liens, surety bond and other construction claims across all of the states in the Mid Atlantic region. He also represents creditors in bankruptcy issues nationwide, particularly defense of bankruptcy preference claims; advises owners and lenders in real estate lending and acquisition transactions; on all real estate and construction law issues; contract formation and disputes. The firm’s Construction Law Survival Manual is well known and widely used by participants in the construction process. The 550 page manual provides valuable information about construction contract litigation, mechanic’s liens, payment bond claims, bankruptcy and credit management and contains over 30 commonly used contract forms. All of this information and recent construction law issues are constantly updated on the firm’s website. There are two changes to the Pennsylvania Mechanic’s Lien Code that became effective September 2014. First, residential properties built by an owner for their own residence will now have a defense of payment to subcontractor mechanic’s liens. This protects homeowners from mechanic’s liens if they have paid their general contractors in full. Second, construction loan open end mortgages will have priority over mechanic’s liens, as long as at least sixty per cent (60%) of the loan proceeds are used for construction costs. This change was pushed by Pennsylvania lenders in response to a recent court case. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Engineer TRC Fends Off Lawsuits After Merger

August 17, 2017 — Scott Van Voorhis - Engineering News-Record
In the wake of its merger with an investment fund, TRC Cos. has been busy swatting away pesky shareholder lawsuits driven by law firms who specialize in such litigation. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Client Alert: Absence of a Court Reporter at a Civil Motion Hearing May Preclude Appellate Review

November 26, 2014 — Angela S. Haskins & Blythe Golay - Haight Brown & Bonesteel LLP
A California Court of Appeal expressed its concern over the due process implications of reviewing a trial court's decision that incorporated reasons that were not documented due to the absence of a court reporter. In Maxwell v. Dolezal (No. B254893, filed 11/4/14), the court cautioned that although the lack of a transcript did not preclude its review of an order sustaining a demurrer, the case was an exception because the operative complaint and demurrer were sufficient to permit effective appellate review. The plaintiff in Maxwell, acting in pro per, had filed an action for invasion of privacy and breach of contract. The plaintiff alleged that the defendant had used his photograph and website without his consent and that he did not receive the money, food and housing in exchange for the intellectual property rights per their agreement. The defendant demurred on the grounds that the complaint was uncertain and it could not be ascertained from the pleading whether the contract was written, oral, or implied. At the hearing on the demurrer, no court reporter was present. Nonetheless, the trial court's minute order explicitly sustained the demurrer "[f]or the reasons stated in open court," without further elaborating. The trial court also denied the plaintiff further leave to amend on the ground that he was unable to articulate in open court a reasonable basis for any additional allegations that would remedy the deficiencies. The court of appeal noted that it was "profoundly concerned about the due process implications of a proceeding in which the court, aware that no record will be made, incorporates within its ruling reasons that are not documented for the litigants or the reviewing court." Reprinted courtesy of Angela S. Haskins, Haight Brown & Bonesteel LLP and Blythe Golay, Haight Brown & Bonesteel LLP Ms. Haskins may be contacted at ahaskins@hbblaw.com; Ms. Golay may be contacted at bgolay@hbblaw.com Read the court decision
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The Risks and Rewards of Sustainable Building Design

July 25, 2021 — Caroline A. Harcourt & Adam Weaver - Gravel2Gavel
The shift towards a “greener” environment has resulted in cities and states implementing electrification mandates, which will have a major impact on both current and future building design. Currently, most commercial and residential end users are already all-electric. However, there are some exceptions, such as space and water heating, that use a significant amount of energy. Several states, including California and New York, have cities that have introduced legislation requiring new construction to be all-electric. This means, for example, using electricity for heating rather than fossil fuels such as natural gas. Mandate or not, building owners and developers should consider the risks and rewards of an all-electric design. General Rewards

Reaching Climate Goals: As part of the Clean Energy Plan, as described in a previous post, President Biden has created a goal for the United States of achieving a carbon pollution-free American utility sector by 2035. Because residential and commercial building account for 40 percent of energy consumption in the United States, all-electric building designs will help governments and businesses reach the ambitious climate goals that have been set for the coming years.

Reprinted courtesy of Caroline A. Harcourt, Pillsbury and Adam Weaver, Pillsbury Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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Keeping Your Workers Safe When Air Quality Isn't

August 21, 2023 — Kim Ritchie - Construction Executive
Kim Ritchie, Vice President, Canada, ISN Construction Executive Q&A What risks do wildfires and poor air quality pose to workers? Exposure to smoke caused by wildfires can have significant health risks, especially for those with preexisting medical conditions. Smoke exposure and poor air quality can trigger immediate effects such as coughing, difficulty breathing and irritation of the throat, eyes and lungs. However, despite smoke dissipating, it could have long-term health complications with cardiovascular impacts, such as heart attacks and stroke. With the lasting impacts caused by exposure to wildfire smoke and poor air quality, it's essential for organizations to look out for their workers’ long-term health. Reprinted courtesy of Kim Ritchie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No Coverage for Repairs Made Before Suit Filed

August 22, 2022 — Tred R. Eyerly - Insurance Law Hawaii
After a hurricane damaged the building the insured was constructing, there was no coverage under the CGL policy for repairs the insured made in the absence of a suit being filed. Planet Construction J2911 LLC. v. Gemini Ins. Co., 2022 U.S. Dist. LEXIS 105468 (W.D. La. June 13, 2022). Planet Construction was a general contractor hired to build a fitness club. On August 27, 2020, Hurricane Laura struck the area. After the storm, a pipe in the sprinkler system broke, allegedly due to faulty materials and workmanship by a subcontractor, S&S Sprinkler. Planet Construction sought coverage under its policy with Gemini as well as under S&S's policy with Zurich. Both insurers denied coverage and Planet Construction 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

Alarm Cries Wolf in California Case Involving Privette Doctrine

May 06, 2019 — Garret Murai - California Construction Law Blog
It’s one of the most quoted phrases in legal history: “Shouting fire in a [crowded] theater.” It comes from the U.S. Supreme Court’s landmark 1919 decision in Schenck v. U.S. and has come to stand for the proposition that not all speech, in particular dangerous speech, is protected by the First Amendment. The next case also involves a false alarm. But not of the First Amendment kind. In Johnson v. The Raytheon Company, Inc., California Court of Appeal for the Second District, Case No. B281411 (March 8, 2019), a false alarm investigated by maintenance engineering staff led to a Privette Doctrine claim against a property owner when a ladder on which the maintenance staff was standing slipped on wet flooring. Johnson v. Raytheon Lawrence Johnson worked as a maintenance engineer for ABM Facilities Services, Inc. ABM was hired by Raytheon Company, Inc. to staff the control room at one of Raytheon’s facilities in Southern California. Among other things, control room staff monitored water cooling towers owned by Raytheon to ensure that the water in the cooling towers were maintained at minimum levels. 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

Failing to Release A Mechanics Lien Can Destroy Your Construction Business

May 01, 2023 — William L. Porter - Porter Law Group
Is the title to this article possibly true? Yes, absolutely! I have seen it happen. Let me tell you how it happens so you can avoid such a result. When contractors, subcontractors or suppliers in California construction projects are not paid they often record a mechanics lien on the property on which they worked. This is a customary accepted legal process for the claimant to secure its right to payment. The mechanics lien enables the claimant to eventually sell the property and obtain payment from the proceeds to the extent they remain unpaid. California Civil Code Section 8460 generally requires that a lawsuit to foreclose on a mechanics’ lien must be filed in court within ninety (90) days after the mechanics’ lien is recorded. If no lawsuit has been filed in court within this 90-day period, then the lien generally becomes unenforceable. Because the mechanics lien remains a cloud on the title to the property if not released, the lien claimant usually releases the mechanics lien if they have failed to meet the lawsuit deadline. Lien claimants will also release a lien and/or dismiss the foreclosure lawsuit in exchange for payment. It is rare that the property is actually sold to obtain payment. This is a brief description of the pathway to payment through the use of a mechanics lien. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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