In Matter of First Impression, California Appellate Court Finds a Claim for a Real Estate Professional’s Breach of Fiduciary Duty is Assignable
January 28, 2025 —
Briane Slome & Pamela Albanese - Lewis Brisbois NewsroomSan Diego, Calif. (January 17, 2025) - The California Court of Appeal recently reversed a judgment entered in favor of real estate brokers who were sued for breaching their fiduciary duties in connection with the sale of residential real estate in Malibu. The Court of Appeal found the trial court erred when it rendered judgment in favor of the brokers on the basis that the plaintiff lacked standing to pursue claims that had been assigned to her. The trial court reasoned that claims for breach of fiduciary duty against real estate brokers are highly personalized tort causes of action, which cannot be assigned. The Court of Appeal disagreed. In a case of first impression, it held that a cause of action for breach of a real estate broker’s fiduciary duties, which seeks damages related to property rights and pecuniary interests, is assignable.
The Court of Appeal’s decision in Lazar v. Bishop, issued December 19, 2024, involved a unique set of facts. The seller bought the property in 2006. His daughter, Laura Lazar, lived at the property. The seller hired a real estate broker to sell the home. The broker listed the property for $4.2 million. Thereafter, she persuaded the seller to drop the listing price to $3.15 million, the price at which it was ultimately sold.
Reprinted courtesy of
Briane Slome, Lewis Brisbois and
Pamela Albanese, Lewis Brisbois
Mr. Slome may be contacted at Brian.Slome@lewisbrisbois.com
Ms. Albanese may be contacted at Pamela.Albanese@lewisbrisbois.com
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Hirer Liable for Injury to Subcontractor’s Employee Due to Failure to Act, Not Just Affirmative Acts, Holds Court of Appeal
December 11, 2018 —
Garret Murai - California Construction Law BlogThe Privette doctrine, named after the court case Privette v. Superior Court (1993) 5 Cal.4th 689, provides that a higher-tiered party such as an owner or general contractor is not liable for injuries sustained by employees of a lower-tiered party such as a subcontractor on a construction project. There are, however, exceptions to the Privette doctrine. One of these exceptions is known as the “retained control doctrine.”
Under the retained control doctrine, a higher-tiered party cannot avoid liability under the Privette doctrine if the higher-tiered party: (1) retains control over the conditions of the work; (2) negligently exercises control over such conditions; and (3) its negligent exercise of control contributes to the injuries sustained by the employee of the lower-tiered party.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Hamptons Home Up for Foreclosure That May Set Record
May 13, 2014 —
Prashant Gopal – BloombergA home in New York’s Hamptons on Further Lane, where comedian Jerry Seinfeld and hedge-fund manager Steven A. Cohen own estates, is up for auction in what will be one of the area’s biggest foreclosure sales.
More than $10.5 million is owed on the 1.8-acre (0.7-hectare) property at 80 Further Lane in East Hampton, according to Daniel Murphy, the Riverhead, New York-based attorney who is scheduled to conduct the sale on June 10.
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Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
The Show Must Go On: Navigating Arbitration in the Wake of the COVID-19 Outbreak
July 20, 2020 —
Justin K. Fortescue, Zachery B. Roth & Marianne Bradley - White and Williams LLPThe recent COVID-19 outbreak has altered life for all of us, in ways both big and small. Unprecedented restrictions relating to the pandemic have forced individuals across the globe to change the ways in which they live and work. Perhaps not surprisingly, these restrictions have also changed the way we resolve disputes. Just as virtual conferencing has become the “new normal” for family gatherings and social events, it has also become the “new normal” for everything from mediation, to oral argument, to full-blown hearings.
To be sure, there are a number of advantages to conducting adversarial proceedings virtually. First and foremost, it results in substantial cost savings for the parties involved. In-person proceedings typically require significant travel expenses, including airline tickets, hotel reservations, and food and beverage stipends. The use of a virtual forum essentially eliminates these expenses, cutting costs dramatically for attorneys, clients, judges, and arbitrators alike.
Virtual conferencing also affords the opportunity for increased participation from party representatives living across the country, or even across the world. While demanding work schedules often make it impossible for multiple party representatives to attend a deposition, or even a hearing, in person, virtual proceedings require much less of a time commitment. Because these virtual proceedings require participants to spend less time away from other work-related obligations, party representatives are able to attend proceedings that they may otherwise have had to miss.
Reprinted courtesy of White and Williams LLP attorneys
Justin K. Fortescue,
Zachery B. Roth and
Marianne Bradley
Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
Ms. Bradley may be contacted at bradleym@whiteandwilliams.com
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California Ranks As Leading State for Green Building in 2022
February 01, 2023 —
The U.S. Green Building CouncilWashington, D.C. (Jan. 17, 2023) – The U.S. Green Building Council (USGBC) today released its annual ranking of U.S. states leading the way on green building, and California made the top ten at number four. USGBC's ranking is based on LEED-certified gross square footage per capita over the past year. The LEED rating system is the world's most widely used green building program and was created by USGBC as a leadership standard defining best practices for healthy, high-performing green buildings.
"It was a strong year for LEED certifications across the U.S. as companies and governments embrace LEED as a tool for meeting ESG goals and organizational commitments to climate action, occupant wellbeing and resource efficiency," said Peter Templeton, USGBC president and CEO. "In California and beyond, LEED buildings are environmentally friendly, cutting their emissions and waste, and use less energy and water. At the same time, they also help reduce operational and maintenance costs, contributing to the bottom line."
In 2022, California had 386 LEED-certified projects, totaling over 96.4 million square feet or 2.44 square feet per capita. Office buildings, residential apartment buildings, government buildings and schools were among those that were LEED-certified last year.
The states ranking ahead of California were Massachusetts (3.76 LEED-certified square feet per resident), Illinois (3.47 square feet per capita), and New York (3.17 square feet per capita).
Additional information on the 2022 rankings, along with a listing of notable projects, can be found
here.
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Can an Architect, Hired by an Owner, Be Sued by the General Contractor?
September 10, 2014 —
Craig Martin – Construction Contractor AdvisorAs is often the answer in this blog, maybe. And, it will likely depend on which state’s law is applied. Over the last few weeks, courts around the country have reached differing conclusions on whether a general contractor may sue an architect that it did not hire.
Here’s the situation: The owner hires an architect to draft plans for a project. The project is then put out for bid and the owner hires a general contractor for the work. The general contractor and architect do not enter into a contract with each other.
If, during construction, the general contractor finds fault with the plans, it may seek Request for Information and Change Orders, to shore up the perceived problems with the plans. Ultimately, the general contractor may sue the architect to recover damages it suffered in completing the project.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring
November 25, 2024 —
Matthew DeVries - Best Practices Construction LawI recently blogged about the use of
AI and ChatGBT in the construction industry. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process.
AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
A Community Constantly on the Brink of Disaster
February 06, 2023 —
Jason Daniel Feld - Kahana FeldIn the beautiful coastline region along the famous Pacific Coast Highway between Ventura and Santa Barbara rests the small cottage town of La Conchita. With unobstructed ocean views, this community is only 820 feet wide on a narrow strip of land abutting a 590 feet high cliffside bluff. The bluff has a slope of approximately 35 degrees and consists of poorly cemented marine sediments. This is the perfect recipe for constant disaster from a geological perspective and the site of several major landslides that have devastated this community. Geologic evidence indicates that landslides, which are part of the larger Rincon Mountain slides, have been occurring at and near La Conchita for many thousands of years up to the present with reported landslides beginning as early as 1865. In both 1889 and 1909, the
Southern Pacific Rail Line
running along the coast was inundated. In the 1909 slide, a train was buried. Since that time, other slides have occurred, covering at times cultivated land, roadways, and the community itself. The two most devastating landslides occurred in 1995 and 2005.
1995 Landslide
From October 1994-March 1995, there was double the amount of seasonal rainfall for the area – in excess of 30 inches. The slide occurred on March 3, 1995, when surface cracks in the upper part of the slope opened on the hillside, and
surface runoff was infiltrating into the subsurface. The heavy rains essentially saturated the slope causing a massive slide. On March 4, 1995, the hill behind La Conchita failed, moving tens of meters in minutes, and buried nine homes with no loss of life. The
County of Ventura immediately declared the whole community a
Geological Hazard Area, imposing building restrictions on the community to restrict new construction. On March 10, 1995, a subsequent debris flow from a canyon to the northwest damaged five additional houses in the northwestern part of La Conchita. In total, the slide measured approximately 390 feet wide, 1080 feet long and 98 feet deep. The deposit covered approximately 9.9 acres, and the volume was estimated to be approximately 1.7 million cubic yards of sediment. The devastation was immeasurable and the damage to homes, property and infrastructure was in the millions of dollars to repair. Litigation quickly arose following the 1995 slide with seventy-one homeowners suing the La Conchita Ranch Co. in Bateman v. La Conchita Ranch Co. The judge ruled that irrigation was not the major cause of the slide and that the ranch owners were not responsible.
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Jason Daniel Feld, Kahana FeldMr. Feld may be contacted at
jfeld@kahanafeld.com