Cambridge Massachusetts Building Expert Directory

Construction Contract Clauses Only a Grinch Would Love – Part 4

November 30, 2016 — Garret Murai – California Construction Law Blog
Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The fourth and final part in a multi-part series, here are some other important construction contract clauses that can put a damper on your holidays.

Provision: Warranty Provisions

Typical Provision: “Subcontractor warrants to Contractor that all materials and equipment furnished shall be new unless otherwise specified and that all Work performed shall be performed in a good and workmanlike manner, of good quality and free from defects, and in conformance with industry standards, manufacturer’s recommendations and the Contract Documents. All work not conforming to these requirements, including substitutions not properly approved, shall be considered defective. Subcontractor agrees to promptly make good any and all defects due to faulty workmanship, materials and/or equipment which may appear within the Contract Documents, and if no such period is stipulated in the Contract, then for a period of one year from the date of acceptance by the Owner. Nothing herein shall shorten or limit any applicable periods of limitations including, but not limited to, those set forth in Civil Code, Part 2, Title 2, Chapter 3.”
What it Means: Warranty periods are subject to the agreement of the parties. However, warranties are different than limitations periods, such as California’s 4 year statute of repose for patent defects and 10 year statute of repose for latent defects (note: a statute of repose is different than a statute of limitation. A statute of repose sets a deadline based on an event. So, for example, under the 10 year statute of repose for latent defects a claimant must bring a latent defect claim within 10 years following substantial completion even if the latent defect wasn’t discovered until 10 years and 1 month following substantial completion. A statute of limitation, in contrast, sets a deadline based on the occurrence of an injury or damage. So, for example, California has a 2 year statute of limitation for personal injuries, which sets a deadline of 2 years from the date of injury to bring a personal injury claim). Warranty periods are also different from limitations periods because most warranties require work to be corrected at no cost, and because many contracts include attorney’s fee provisions, breach of a warranty can give rise to claim for attorney’s fees as well.
What You Can Do: Lower-tiered parties should examine warranty provisions to see if they are reasonable, and if not reasonable, should seek to either eliminate or limit those provisions, such as by reducing the warranty period or providing different warranty periods for different components of work, etc.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

No Coverage for Homeowner Named as Borrower in Policy but Not as Insured

July 08, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The magistrate judge recommended that the homeowner's complaint seeking coverage for damage caused by Hurricanes Laura and Delta be denied because the homeowner was only named as the borrower under the policy. LeDay v. Integon Nat'l Ins. Co., 2024 U,S. Dist. LEXIS 87369 (W.D. La. April 15, 2024). When the homeowner sought coverage for hurricane damage, it was denied. The homeowner then sued and Integon moved to dismiss. Integon argued it did not issue a policy to the homeowner, but the policy was issued to Midland Mortgage. The pro se homeowner did not respond to the motion. 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

Georgia Local Government Drainage Liability: Nuisance and Trespass

November 29, 2021 — David R. Cook Jr. - Autry, Hall & Cook, LLP
A long-running dispute between a landowner and a municipality has escalated to the Georgia Court of Appeals and in the federal court for the Northern District of Georgia.[1] The municipality maintained a stormwater system that discharged on property uphill from the landowner’s property. The uphill property was used as an illegal dump, and debris washed downhill from the dump to the landowner’s property. The debris clogged the landowner’s surface water drainage system, which caused flooding of the property and a building. State Case The landowner sued for trespass, nuisance, takings, and inverse condemnation. While the other claims were barred by the four-year statute of limitations, the court addressed the plaintiff-landowner’s claim for continuing nuisance. Municipalities may be liable when they negligently construct or maintain a sewer or drainage system that causes repeated flooding of property, such that it results in a continuing, abatable nuisance.[2] For a municipality to be liable for maintenance of a nuisance:

the municipality must be chargeable with performing a continuous or regularly repetitious act, or creating a continuous or regularly repetitious condition, which causes the hurt, inconvenience or injury; the municipality must have knowledge or be chargeable with notice of the dangerous condition; and, if the municipality did not perform an act creating the dangerous condition, . . . the failure of the municipality to rectify the dangerous condition must be in violation of a duty to act.[3]

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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

EPA Seeks Comment on Clean Water Act Section 401 Certification Rule

July 19, 2021 — Karen Bennett - Lewis Brisbois
The Environmental Protection Agency (EPA) announced that it will revise a 2020 final rule clarifying requirements for water quality certification under the Clean Water Act (CWA). 85 Fed. Reg. 42210 (June 2, 2021). CWA Section 401 requires states and tribes to certify that any discharges associated with a federal permit will comply with applicable state or tribal water quality requirements. In an effort to eliminate 401 certification being used as a tool for delaying or imposing conditions unrelated to protecting water quality on federal permits, the 2020 rule established limits on the scope and timeline for review and required any conditions on certification to be water-quality related. State and Tribal governments and environmental groups challenged the rule, arguing it constrained state and tribal decision-making authority by limiting the term “other appropriate requirements of State law” in CWA Section 401(d) to “water quality requirements” and “point source discharges.” With EPA’s decision to revise the rule, many believe these same scope and timing limitations will be targets for change. Clients with experience, positive or negative, under the 2020 rule should consider submitting comments by the August 2, 2021 deadline. Read the court decision
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Reprinted courtesy of Karen Bennett, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com

Contractors Must Register with the L&I Prior to Offering or Performing Work, or Risk Having their Breach of Contract Case Dismissed

March 27, 2023 — Jill Guingcangco - Ahlers Cressman & Sleight PLLC
The Washington State Legislature has an interest in protecting the public from “unreliable, fraudulent, financially irresponsible, or incompetent contractors” (RCW 18.27.140), which is why contractors are required to register with the Department of Labor and Industries (“L&I”) before advertising, offering to do work, or performing any work as a contractor. RCW 18.27.020. Accordingly, if a contractor brings an action for the collection of compensation or sues for breach of contract for work they performed, that individual is required to allege and prove that, at the time they performed the work, they were a registered contractor. RCW 18.27.080. In Dobson v. Archibald,1 Dobson worked as a longshoreman, but also simultaneously performed home repair work for pay during her off time. Dobson never registered as a contractor with L&I. Dobson acquired customers for her home repair work through a referral process. Dobson was referred to Archibald through a mutual friend who Dobson performed some home repair work for. Archibald subsequently hired Dobson to refinish the hardwood floors in Archibald’s home. Read the court decision
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Reprinted courtesy of Jill Guingcangco, Ahlers Cressman & Sleight PLLC
Ms. Guingcangco may be contacted at jill.guingcangco@acslawyers.com

Supreme Court of California Rules That Trial Court Lacking Subject Matter Jurisdiction May Properly Grant Anti-SLAPP Motion on That Basis, and Award Attorney’s Fees

January 19, 2017 — David W. Evans & Stephen J. Squillario - Haight Brown & Bonesteel LLP
In Barry v. The State Bar of California (No. S214058 – 1/5/2017), the California Supreme Court affirmed the trial court’s grant of the State Bar of California’s (“State Bar”) underlying anti-SLAPP motion (Code of Civil Procedure §425.16) on the grounds that plaintiff Patricia Barry (“Barry”), an attorney, had failed to show a probability of prevailing because, among other reasons, the court lacked subject matter jurisdiction over Barry’s claims. The Court confirmed that the absence of subject matter jurisdiction did not prevent a trial court from basing a decision to grant an anti-SLAPP motion on that ground, or to award the prevailing defendant its attorney’s fees. Reprinted courtesy of David W. Evans, Haight Brown & Bonesteel LLP and Stephen J. Squillario, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Mr. Squillario may be contacted at ssquillario@hbblaw.com Read the court decision
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Specific Performance: Equitable Remedy to Enforce Affirmative Obligation

January 18, 2021 — David Adelstein - Florida Construction Legal Updates
When a party breaches an agreement, particularly when dealing with real estate, there is an equitable remedy known as specific performance that requests the trial judge issue an order to affirmatively force the breaching party to perform, i.e., close on the real estate contract. You are asking the court to require the other party to specifically perform an affirmative obligation. See Melbourne Ocean Club Condominium Ass’n, Inc. v. Elledge, 71 So.3d 144, 146 (Fla. 2011).

A decree of specific performance is an equitable remedy ‘not granted as a matter of right or grace but as a matter of sound judicial discretion’ governed by legal and equitable principles. Specific performance shall only be granted when 1) the plaintiff is clearly entitled to it, 2) there is no adequate remedy at law, and 3) the judge believes that justice requires it. Castigliano v. O’Connor, 911 So.2d 145, 148 (Fla. 3d DCA 2005) (internal citations omitted).

An example of specific performance may play out, as mentioned, in a real estate contract where a seller refuses to close on the transaction. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Best Lawyers® Recognizes 37 White And Williams Lawyers

September 26, 2022 — White and Williams LLP
Thirty-two White and Williams lawyers were recognized in The Best Lawyers in America© 2023. Inclusion in Best Lawyers® is based entirely on peer-review. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Best Lawyers® employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of quality legal services. In addition, eight lawyers were recognized as "Ones to Watch” by Best Lawyers®. This recognition is given to attorneys who are earlier in their careers for outstanding professional excellence in private practice in the United States. The firm is also pleased to announce Best Lawyers® has recognized four White and Williams lawyers as "Lawyer of the Year." Read the court decision
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Reprinted courtesy of White and Williams LLP

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