Fairfield Connecticut Building Expert Directory

Contractor’s Assignment of Construction Contract to Newly Formed Company Before Company Was Licensed, Not Subject to B&P 7031

October 04, 2021 — Garret Murai - California Construction Law Blog
Add one more to the Business and Profession Code section 7031 archives. In Manela v. Stone, Case No. B302660 (July 1, 2021), the 2nd District Court of appeal held that Section 7031 did not apply to a contractor licensed as a sole proprietor who assigned his contract to his newly formed company although at the time of the assignment the contractor’s individual contractor’s license had not yet been reissued to the incorporated company. The Manela Case On January 4, 2015, John Stone doing business as Stone Construction Company entered into a home remodeling contract with Yosef and Nomi Manela. At the time, Stone had held a contractor’s license since 1982. On February 11, 2015, after work on the project had begun, Stone formed JDSS Construction Company, Inc., and filed a fictitious business name using the same name Stone Construction Company. Stone applied to the Contractors State License Board to have his contractor’s license issued from himself personally to his new corporation. On March 15, 2015, while waiting for the CSLB to reissue his contractor’s license, Stone entered into an assignment agreement between himself and his new company assigning the Manela construction contract. The assignment agreement was signed by Stone in his personal capacity and as President of JDSS Construction. The assignment agreement was not signed by the Manelas. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Denver Officials Clamor for State Construction Defect Law

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal reported that a construction defects law to encourage more condo development in Colorado was discussed during the Denver Metro Chamber of Commerce’s annual State of the City event. Colorado Senator Jessie Ulibarri in attendance stated that the construction defect bill that he had sponsored earlier this year was defeated partly due to timing, and he plans on introducing a new bill early 2015. Denver Mayor Michael Hancock spoke in favor of such a bill, alleging that nearly all developers avoid building multifamily units for fear of potential litigation. “We are being hamstrung by this law in the state of Colorado.” However, the Denver Business Journal reported that those who favor status quo, including homeowners association industry groups and attorneys, claim that “changing the law will open the door to poor work on the part of developers and builders, leaving condo buyers holding the bag for repairs when something goes wrong in their home.” Read the court decision
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Lenders and Post-Foreclosure Purchasers Have Standing to Make Construction Defect Claims for After-Discovered Conditions

October 10, 2013 — W. Berkeley Mann, Jr. — Higgins, Hopkins, McLain & Roswell, LLC
The Colorado Court of Appeals has decided a case which answers a question long in need of an answer: do banks/lenders have standing to assert construction defect claims when they receive title to a newly-constructed home following a foreclosure sale or deed-in-lieu of foreclosure? The decision was released on August 1, 2013, in the case of Mid Valley Real Estate Solutions V, LLC v. Hepworth-Pawlack Geotechnical, Inc., Steve Pawlak, Daniel Hadin, and S K Peightal Engineers, Ltd. (Colorado Court of Appeals No. 13CA0519). The background facts of the case are typical of a Colorado residential construction defect case generally. A developer contracted for an analytical soil engineering report from a geotechnical engineering firm (H-P) which made a foundation recommendation. The developer’s general contractor then retained an engineering firm (SPKE) to provide engineering services, including a foundation design. The general contractor built the foundation in accordance with the H-P and SPKE criteria and plans. The house was not sold by the developer and went into default on the construction loan. These events resulted in a deed-in-lieu of foreclosure to a bank-controlled entity which purchased the house for re-sale. Shortly after receiving the developer’s deed, the bank-related entity discovered defects in the foundation that resulted in a construction defect suit against the two design firms and related individuals. Read the court decision
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Reprinted courtesy of W. Berkeley Mann, Jr.
W. Berkeley Mann, Jr. can be contacted at mann@hhmrlaw.com

Environmental Suit Against Lockheed Martin Dismissed

August 13, 2014 — Beverley BevenFlorez-CDJ STAFF
A federal judge dismissed an environmental suit against Lockheed Martin, finding that contamination levels on the plaintiffs’ Moorestown, New Jersey properties were not high enough to pose a health threat, according to the New Jersey Law Journal. Two owners who live across the street from the plant had “sued under the Resource Conservation & Recovery Act, the Comprehensive Environmental Response, Compensation & Liability Act and various state statutes.” However, “while the suit was pending, the New Jersey Department of Environmental Protection raised the threshold for concentration levels of substances such as TCE and PCE to warrant additional testing.” Read the court decision
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Fifth Circuit Holds Insurer Owes Duty to Defend Latent Condition Claim That Caused Fire Damage to Property Years After Construction Work

September 21, 2020 — Jeremy S. Macklin - Traub Lieberman
Most general liability policies only provide coverage for “property damage” that occurs during the policy period. Thus, when analyzing coverage for a construction defect claim, it is important to ascertain the date on which damage occurred. Of course, the plaintiffs’ bar crafts pleadings to be purposefully vague as to the date (or period) of damage to property. A recent Fifth Circuit decision applying Texas law addresses this coverage issue in the context of allegations of a condition created by an insured during the policy period that caused damage after the policy expired. In Gonzalez v. Mid-Continent Cas. Co., 969 F.3d 554 (5th Cir. 2020), Gilbert Gonzales (the insured) was a siding contractor. In 2013, the underlying plaintiff hired Gonzales to install new siding on his house. In 2016, the underlying plaintiff’s house was damaged in a fire. The underlying plaintiff sued Gilbert in Texas state court alleging that when Gonzalez installed the siding in 2013, he hammered nails through electrical wiring and created a dangerous condition that caused a fire three years later in 2016. At the time Gilbert performed construction work, he was insured by Mid-Continent Casualty Company. Mid-Continent disclaimed coverage to Gonzales on the basis that the complaint unequivocally alleged that property was damaged in 2016 and there were no allegations that property damage occurred prior to 2016 or was continuing in nature. Read the court decision
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Reprinted courtesy of Jeremy S. Macklin, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

Update Your California Release Provisions to Include Amended Section 1542 Language

April 02, 2019 — Amy L. Pierce & William S. Hale, P.E. - Gravel2Gavel Construction & Real Estate Blog
Most companies have been involved in a situation where they want to end their relationship with another company, or with an employee, and to permanently terminate their mutual obligations (e.g., a settlement agreement resolving end-of-project litigation). In 1992, a California Court of Appeals, in Winet v. Price, confirmed that upholding general releases is “in harmony… with a beneficial principle of contract law: that general releases can be so constructed as to be completely enforceable.” In California, agreements with a release of claims (or s general release) include what is often referred to as a California Civil Code § 1542 waiver for the purpose of ensuring that the releasing party is consciously releasing both known and unknown claims that may be later discovered. Such a waiver provision generally confirms that the Releasing Party acknowledges that it understands and waives the provisions of Section 1542, followed by the quoted text of Section 1542 (typically in all capital letters). Reprinted courtesy of Amy L. Pierce, Pillsbury and William S. Hale, Pillsbury Ms. Pierce may be contacted at amy.pierce@pillsburylaw.com Mr. Hale may be contacted at william.hale@pillsburylaw.com Read the court decision
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Eleven Payne & Fears Attorneys Honored by Best Lawyers

September 06, 2023 — Payne & Fears LLP
Congratulations to the ten Payne & Fears attorneys included in the 2024 Edition of Best Lawyers® In America and Best Lawyers: Ones to Watch. Attorneys have been recognized in the following practice areas: Best Lawyers in America (2024) Irvine, CA Employment Law – Management Labor Law – Management Litigation – Labor and Employment Jeffrey K. Brown Daniel F. Fears Commercial Litigation Litigation – Real Estate Daniel M. Livingston Thomas L. Vincent Read the court decision
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Reprinted courtesy of Payne & Fears LLP

How to Cool Down Parks in Hot Cities

July 08, 2024 — Todd Woody - Bloomberg
The drive to be outside, even in hot weather, is hard to overcome. People without air conditioning would be more likely to seek relief at their local park, according to Elie Bou-Zeid, a professor of civil and environmental engineering at Princeton, than at a government building where they can feel like climate refugees. “It’ll certainly be more pleasant to be in a park than in some indoor stadium where nobody wants to go,” he says. The scientists are combining inexpensive technologies, some novel, some already in use, that they plan to test first in New Jersey for deployment in hot spots like Phoenix. Kirigami The art of cutting and folding paper, kirigami is inspiring researchers to design structures that control wind in specific ways. A kirigami structure made from fabric and placed over misters could regulate wind speed to maximize cooling. Or it could form the roof of a pavilion, steering air into the structure. Misters They spray small water droplets that quickly evaporate, cooling the air. But the effectiveness of misters, which have long been used in cities such as Las Vegas and Phoenix, depends on wind speed. If there’s too little wind, the droplets won’t all evaporate; too much wind and the cooling effects dissipate. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

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