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    Quick Note: Discretion in Determining Prevailing Party for Purposes of Attorney’s Fees

    January 25, 2021 —
    In prior articles I have discussed that courts apply the significant issues test to determine the prevailing party for purposes of being entitled to attorney’s fees. A party that recovers an affirmative judgement is NOT the de facto prevailing party for purposes of an entitlement to attorney’s fees in a breach of contract action (or a construction lien foreclosure action). This was the issue in a recent appeal discussed here where the party that recovered an affirmative judgment on a breach of contract case was not deemed the prevailing party for purposes of attorney’s fees. While the party prevailed on one of its claims, it did not prevail on others, and it recovered less than half of the damages it originally sought. The appellate court, affirming the trial court, held that the trial court has discretion to determine that the party that recovered an affirmative judgement was not the prevailing party entitled to its attorney’s fees under the signifiant issues test. This was not what the party was expecting when the attorney’s fees it expended far exceeded the judgment it recovered. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
    Mr. Adelstein may be contacted at dma@kirwinnorris.com

    ADA Lawsuits Spur Renovation Work in Fresno Area

    November 06, 2013 —
    The El Gallo restaurant in Clovis, California has completed more than $45,000 worth of accessibility upgrades, ranging from installing signs for handicap parking to an $8,000 wheelchair-accessible ramp. The restaurant closed in 2010 when they were sued over alleged Americans with Disabilities Act (ADA) violations. But the El Gallo was only the first Fresno-area business hit with an accessibility lawsuit. And others wanted to avoid getting sued at all. Donald Bremseth, an architect working in Clovis, said that designing modifications to older buildings to bring them into compliance with the ADA has kept him busy, designing dozens of projects in the area. Daniel Zoldak, vice president of Lars Anderson & Associates, noted at on one inspection, he saw about 50 ADA violations, and with the fines at least $2,000 per violation, $10,000 or $20,000 of renovations doesn’t look so bad. That’s under the new law, which also allows a business 30 days to get into compliance. Under the old law, the minimum fine was $4,000. Read the court decision
    Read the full story...
    Reprinted courtesy of

    Residential Contractors, Be Sure to Have these Clauses in Your Contracts

    May 16, 2018 —
    I have often “mused” on the need to have a good solid construction contract at the beginning of a project. While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction. Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced. For this reason, through meetings and the construction contract, setting expectations early and often is key. As a side note to this need to set expectations, the Virginia Department of Professional and Occupational Regulation (DPOR) and the Virginia General Assembly require certain clauses to be in every residential construction contract. DPOR strictly enforces these contractual items and failure to put them in your contracts can lead to fines, penalties and possibly even revocation of a contractor’s license. 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

    Insurer's Motion to Dismiss Complaint for Collapse Coverage Fails

    March 22, 2018 —

    The insurer's motion for summary judgment seeking dismissal of the insured's claim for collapse coverage was rejected by the Supreme Court of New York. Parauda v. Encompass Ins. Co. of Am., 2018 N.Y. Misc. LEXIS 269 (N.Y. Sup. Ct. Jan. 25, 2018).

    The insureds submitted a claim to Encompass for damage to the brick siding, or façade, of their home, which was bulging near the front door. Encompass hired H2M Architects and Engineers to inspect the home and issue a report. H2M determined that the brick façade near the front door was separated from the house. Photos showed that the bricks had separated, the mortar joints were cracked, and there were cracks and deterioration in the mortar. H2M concluded that the brick façade was in poor condition and need repairs and/or replacement. H2M concluded that the separation of the brick façade was caused by water infiltration behind the wood trim and brick façade, occurring over a several year period. Encompass denied the claim based upon exclusions for "freezing, thawing," "wear and tear," and "inadequate maintenance."

    Read the court decision
    Read the full story...
    Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Contract Change #1- Insurance in the A201 (law note)

    April 11, 2018 —
    Insurance– everyone needs it; everyone would just as soon not have to deal with it. I get it, I do. Attorneys, Insurance Agents– no one likes spending time with those folk! Good news though. The changes to the A201 mean that you may end up spending less time with both! The most important change to the Insurance requirements of the AIA contract is that most of it has moved to a new Exhibit. Why is this important? Instead of having to send the entire contract to your agent or broker, you can now send them only the section that they really need to review for compliance. This also means that if insurance policies change (as they surely will), the entire contract document does not need to be re-written– the Exhibit can be updated accordingly, leaving the rest of the A201 alone. Nice, right? This change was made to streamline insurance review and provide for that flexibility of the changing insurance market. Read the court decision
    Read the full story...
    Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett PLLC
    Ms. Brumback may be contacted at mbrumback@rl-law.com

    Home Building Mergers and Acquisitions 2014 Predictions

    March 19, 2014 —
    John McManus, writing for Big Builder, discusses the various predictions for mergers and acquisitions in the home building field for 2014. While predictions vary between individuals, it seems to hover between 15 and 30. McManus lists several home building seller motivations, such as a “[n]eed for cash infusion to buy and develop new lot pipeline” and “[s]uccession planning.” Finally, McManus points out that not every merger and acquisition discussion will lead to a deal: “We've recently seen a combination or three flounder on the issue of price. This occurs partly as the home builder buyer community becomes more discriminating as to what truly fits their program, and partly as smaller builders attain options as regional and national lenders awaken and look to reenter project financing in a bigger way.” Read the court decision
    Read the full story...
    Reprinted courtesy of

    The Private Works: Preliminary Notice | Are You Using the Correct Form?

    August 20, 2019 —
    The Private Works – Preliminary Notice form which contractors, subcontractors and suppliers had become accustomed to using for many years changed in 2004. Despite this change in law, many in the construction industry have still not started using the correct new form. Changes in the law, championed by the American Subcontractors’ Association, gave a significant new benefit to subcontractors and suppliers by giving the subcontractor or supplier some expectation of actually receiving notice of when a Notice of Completion or a Notice of Cessation has been recorded on many private works projects. The law also changed the language of the California Preliminary Notice that subcontractors and suppliers must use to protect their mechanics’ lien, bond claim and stop payment notice rights. If Owners do not send out the Notice of Completion as required by law they incur a diminishing of the protections afforded to them when they record a Notice of Completion or Notice of Cessation on many private works projects. The revised law requires private project owners to notify all subcontractors and suppliers within 10 days after recording a Notice of Completion or Notice of Cessation that a Notice of Completion or a Notice of Cessation has actually been recorded. In order to receive such notice, the subcontractor or supplier must properly serve the new form of Preliminary Notice. If this properly occurs and the private project owner provides the required notice, then the subcontractor or supplier will have 30 days to record a Mechanics’ Lien. However, if an owner under such circumstances fails to properly notify a subcontractor or supplier within 10 days after recording a Notice of Completion or Notice of Cessation, then the Subcontractor or supplier will have 90 days to record a Mechanics’ Lien. The details of the law can be found in California Civil Code sections 8190, 8414 and 8416. Read the court decision
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    Reprinted courtesy of William L. Porter, Esq., Porter Law Group
    Mr. Porter may be contacted at bporter@porterlaw.com

    Inside the Old Psych Hospital Reborn As a Home for Money Managers

    October 28, 2015 —
    It’s the most exclusive club for financiers in Dallas. With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors. Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display. Read the court decision
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    Reprinted courtesy of Simone Foxman, Bloomberg