Governor Signs Permit Extension Bill Extending Permit Deadlines to One Year
October 23, 2018 —
Garret Murai - California Construction Law BlogIt’s like that feeling you got when your teacher said you have another week to complete your group project.
On September 21, 2018, Governor Brown signed AB 2913, which, for the first time, provides a uniform 12-month period across the state for work to commence before a building permit expires. Previously, the period was six months.
In addition to doubling the expiration period, the statute includes a “justifiable cause” provision permitting local building departments to extend the time for one or more additional periods of not more than 180 days per extension upon written demonstration of “justifiable cause for the extension.”
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Construction Contract Basics: Indemnity
October 30, 2023 —
Christopher G. Hill - Construction Law MusingsI’m back after a welcome
change of offices from a Regus location to a separate and more customer-friendly
local shared office space location. I thought I’d jump back into posting with a series of construction contract-related posts, the first of which relates to indemnification clauses.
An indemnification clause in a contract obligates one party (the Indemnitor) to take on liability (read pay for) any damages to another party (the Indemnitee) under certain circumstances. In a construction context, this type of arrangement can arise in a
bonding context with a general indemnity obligation to the surety among other contexts outside of the four corners of any prime or subcontract. I will not be discussing those other contexts and will focus on the typical indemnity clause found in most if not all, construction contracts. These clauses most often state that the “downstream” party is to indemnify all of the upstream parties for any and all damages incurred by the indemnitees due to any action of the downstream party, its employees, subcontractors, sub-subcontractors, etc. The clauses are often not limited in scope and generally include attorney fee provisions and generally require indemnity for breaches of contract by their terms.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
There’s an Unusual Thing Happening in the Housing Market
October 03, 2022 —
Tracy Alloway - BloombergIt’s no secret that the US housing market has been softening as interest rates rise at the fastest pace in decades.
Higher mortgage rates mean the dramatic growth in home prices that we’ve seen over the past two years is beginning to slow. Sales of new homes recently came in at the weakest monthly level since 2018. Meanwhile, purchase applications are down 20% year-on-year, and so on.
But the rapid pace of rate hikes has also resulted in an interesting statistical anomaly. Months of supply — or the number of months it would take for the existing inventory of homes on the market to sell at the current sales pace — has jumped to 4.1 from a record low of just 2.1 back in January of this year. And, as Morgan Stanley strategist James Egan notes, rarely have we seen an increase of this size.
To some extent, the jump in inventory is to be expected. It’s maths. As sales volume falls while inventories rise, months of supply naturally increases.
But such a jump is intuitively striking, and the key question for housing-watchers is whether the absolute level of inventory — which is still low by many measures, even as homebuilders have ramped up construction since last year — will turn out to be more important than its rate of change. A housing market that is structurally undersupplied is going to be a lot less vulnerable to fewer sales.
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Tracy Alloway, Bloomberg
Hunton Insurance Practice, Attorneys Recognized in 2024 Edition of The Legal 500 United States
July 02, 2024 —
Hunton Andrews Kurth LLPHunton Andrews Kurth LLP’s insurance coverage practice was once again recognized among the top policyholder insurance practices nationally, receiving a Band 2 national ranking in the 2024 United States Edition of The Legal 500 for Insurance: Advice to Policyholders. The Legal 500 ranks the nation’s top law firms, practices, and lawyers, highlighting those that consistently provide “the most cutting edge and innovative advice to corporate counsel … based on feedback from 300,000 clients worldwide, submissions from law firms and interviews with leading private practice lawyers, and a team of researchers who have unrivalled experience in the legal market.”
Bolstering the team’s national recognition, several of the team’s lawyers received individual accolades: partner Lorelie (Lorie) Masters was named to The Legal 500’s Hall of Fame; team head Syed Ahmad was named a Leading Lawyer; partner Andrea DeField was named a Next Generation Partner; and counsel Latosha Ellis was named a Rising Star. In addition, partners Walter Andrews, Michael Levine, and Geoffrey Fehling were recognized as key lawyers on the team.
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Hunton Andrews Kurth LLP
Justice Didn’t Ensure Mortgage Fraud Was Priority, IG Says
March 19, 2014 —
Tom Schoenberg and Phil Mattingly – BloombergThe U.S. Justice Department failed to pursue mortgage fraud in the years following the 2008 financial crisis with the same level of commitment that it publicly touted, an internal watchdog said.
While Attorney General Eric Holder said mortgage-fraud cases were among the department’s top priorities, the Federal Bureau of Investigation internally ranked them the lowest of six criminal threats, according to a report released today by Inspector General Michael Horowitz. The FBI devoted fewer resources to such cases even though Congress allocated $196 million for fiscal years 2009 to 2011 to pursue such conduct.
The Justice Department has been criticized by lawmakers and judges for not bringing more criminal cases against individuals following the collapse in housing prices and ensuing market turmoil. In August, Holder retracted a public statement after Bloomberg News reported that the department had inflated its track record of mortgage-fraud prosecutions.
Mr. Schoenberg may be contacted at tschoenberg@bloomberg.net; Mr. Mattingly may be contacted at pmattingly@bloomberg.net
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Tom Schoenberg and Phil Mattingly, Bloomberg
Court Retained Jurisdiction to Enforce Settlement Under Code of Civil Procedure Section 664.6 Despite Dismissal of Complaint
October 21, 2024 —
Garret Murai - California Construction Law BlogAttorneys will commonly add a Code of Civil Procedure section 664.6 provision in their settlement agreements to ensure that courts have continuing jurisdiction to enforce the terms of a settlement, as opposed to having to file a new complaint in the event of a breach of a settlement agreement.
Oral settlements before a trial court are also enforceable under Section 664.6, but as discussed in Eagle Fire and Water Restoration, Inc. v. City of Danuba, Case No. F086052 (May 30, 2024), in cases involving a complaint and multiple cross-complaints, questions can arise as to whether a trial court has in fact retained jurisdiction under Section 664.6 to enforce an oral settlement and even what the terms of the settlement were.
The Eagle Fire Case
Eagle Fire and Water Restoration, Inc. was hired by the City of Dinuba to reroof the City’s police station and courthouse building. The contract was for approximately $500,000. Before completion of the project, a rainstorm caused significant water damage to the interior of the building. The City incurred over $330,000 in clean-up and repair costs and withheld approximately $319,000 from Eagle as an offset.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Daniel Ferhat Receives Two Awards for Service to the Legal Community
July 19, 2021 —
Daniel Ferhat - White and Williams LLPPartner Daniel Ferhat was recently recognized by The Philadelphia Association of Defense Counsel (PADC) with the President’s Award at PADC’s Annual Meeting. This award was given in recognition of Dan’s leadership as President of PADC over the past year. Recognized as the oldest continuously operating local defense organization in the United States, PADC is comprised of over 300 attorneys and acts as a voice for its members and the clients they serve on emerging issues of interest.
Dan also received the Exceptional Performance Award from the Defense Research Institute (DRI), which is the largest international membership organization of attorneys defending the interests of businesses and individuals in civil litigation. DRI’s Exceptional Performance Award is given annually to an individual who has supported and improved the standards and education of the defense bar, and for having contributed to the improvement of the administration of justice in the public interest.
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Daniel Ferhat, White and Williams LLPMr. Ferhat may be contacted at
ferhatd@whiteandwilliams.com
Hawaii Supreme Court Construes Designated Premises Endorsement In Insured's Favor
April 01, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Hawaii Supreme Court held that a Designated Premises Endorsement provided coverage for injury and damage that occurred away from a listed location if the injury or damage arose out of the ownership, maintenance or use of the designated premises. C. Brewer and Co., Ltd. v. Marine Indemn. Ins. Co., 2015 Haw. LEXIS 62 (Haw. March 27, 2015). [Disclosure: our office represents C. Brewer].
The case involves coverage for the former owner (C. Brewer) of land under the Kaloko Reservoir. The Reservoir was fronted by an earthen dam. The Dam burst in March 2006, killing seven people and causing extensive property damage downstream.
In 1977, the State of Hawaii and C. Brewer entered an agreement requiring C. Brewer to, among other things, restore and expand the irrigation system that provided water to sugar cane fields in Kilauea, Kauai. C. Brewer formed the Kilauea Irrigation Company (KIC) to satisfy obligations to the State, revitalize the System, and sell System water to local farmers for irrigation.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com