Building Supplier Sued for Late and Defective Building Materials
December 04, 2013 —
CDJ STAFFThe Lawson Henry Co. bought an unfinished townhome in Snowshoe, West Virginia with the intent of getting it finished and sold. To reach that goal, they contracted with O.C. Cluss Professional Services and O.C. Cluss Lumber Co. to provide them with building materials. According to the plaintiff, Cluss failed to deliver the building materials by the agreed-on date, causing the plaintiff to miss out on the peak season for selling the townhome.
The suit also alleges that in addition to materials being delivered late, some were defective or of poor quality. The Lawson Henry Co. is charging Charles C. Cluss and his companies of breach of contract.
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The Condominium Warranty Against Structural Defects in the District of Columbia
September 07, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogThe District of Columbia Condominium Act contains a statutory warranty that protects condominium associations and their unit owner members from structural defects in newly constructed and newly converted condominiums. The warranty is backed by a condominium developer’s bond, letter of credit, or other form of security from which monies can be drawn upon if the developer fails to make warranty repairs.
This article discusses how the warranty against structural defect works and how to make claims against the developer’s security to fund warranty repairs.
THE CONDOMINIUM WARRANTY AGAINST STRUCTURAL DEFECTS
Condominium developers in Washington DC are required by statute to warrant against structural defects in the condominium common elements and each condominium unit. District of Columbia Condominium Act (“DC Condo Act”) 42-1903.16(b).
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
Texas “Loser Pays” Law May Benefit Construction Insurers
June 07, 2011 —
CDJ STAFFUnder a new law, Texas HB 274, the Texas Supreme Court will be making rules for motions to dismiss and to expedite suits of less than $100,000. The law also contains two “loser pays” provisions. If a lawsuit is found dismissed for having “no basis in fact or law,” the losing side must pay attorney costs. The other provision caps award of attorney fees if plaintiffs reject settlement offers. Texas Lawyer quotes Houston attorney Mike Gallagher as saying this will affect “the practice of everyone who handles significant lawsuits.”
Gregory Marcum, whose practice includes construction defect litigation, plans to contact insurance companies, as the new law may save them money. “It will definitely be a factor in the defense strategy for handling a case.” He notes that “any insurance carrier would want that done.”
Marcum notes that the offer-of-settlement rules only apply when cases go to trial. “Almost all cases settle.”
Read HB 274
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Anti-Concurrent Causation Clause Preserves Possibility of Coverage
January 15, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe policy's anti-concurrent causation clause preserved the possibility of coverage when the insurer's motion for summary judgment to disclaim its indemnity obligation for damage caused by Hurricane Sandy was overturned by the Second Circuit. Madelaine Chocolate Novelties, Inc. v. Great Northern Ins. Co., 2018 U.S. App. LEXIS 29821 (Oct. 23, 2018 2nd Cir. )
In 2012, Madelaine Chocolate suffered significant damage to its business due to storm surges created by Hurricane Sandy. Madelaine Chocolate had an "all-risk" policy issued by Great Northern. Madelaine Chocolate filed a claim for property damage of approximately $40 million and business income loss and extra operation expenses of $13.5 million. Great Northern denied most of the claim, reasoning that the storm surge damage was excluded under the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
NLRB Finalizes Rule for Construction Industry Unions to Obtain Majority Support Representational Status
September 23, 2024 —
Aaron C. Schlesinger - Peckar & Abramson, P.C.On July 26, 2024, the National Labor Relations Board (“NLRB”) issued its Fair Choice – Employee Voice Final Rule (“Final Rule”), which takes effect September 30, 2024. The Final Rule eases the process for unions in the construction industry to convert their status as collective bargaining representative of bargaining unit employees from Section 8(f) to 9(a) of the National Labor Relations Act (“Act”) simply by placing certain recognitional acceptance language in their collective bargaining agreements. As a result, construction industry employers should review their collective bargaining agreements prior to signing to determine if such language exists.
Section 9(a) Non-Construction Industry Employers
In most industries, not including construction, union recognitional status as collective bargaining representative of the employer’s employees is governed by Section 9(a) of the Act. In order for a Union to obtain recognitional status under Section 9(a), the union must either: (1) file a petition with the NLRB showing support of 30% of the proposed bargaining unit via employee executed authorization cards and win an election of 51% of the employees in the proposed bargaining unit who actually vote; or (2) by reaching an agreement with the employer that the union possesses employee executed authorization cards from 51% of the proposed bargaining unit, which has been confirmed by a neutral arbitrator pursuant to a card count. Once such status is achieved, the union and employer are required to meet and bargain towards reaching a collective bargaining agreement covering the terms and conditions of employment of the union represented employees. A Section 9(a) union cannot have its recognitional status revoked absent the loss of majority support of the employees it represents.
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Aaron C. Schlesinger, Peckar & Abramson, P.C.Mr. Schlesinger may be contacted at
aschlesinger@pecklaw.com
Independent Contractor v. Employee. The “ABC Test” Does Not Include a Threshold Hiring Entity Test
October 03, 2022 —
Garret Murai - California Construction Law BlogIn 2018, in Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (2018), the California Supreme Court overturned nearly thirty years of jurisprudence governing the manner in which workers are classified as employees or independent contractors. The Dynamex decision replaced the “Borello test,” derived from a case of the same name, S.G. Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal.3d 341 (1989), in which the California Supreme Court at the time set forth a variety of factors to be considered when determining whether a worker was an employee or independent contractor.
The Dynamex decision replaced with the “Borello test” with the “ABC test.” Under the ABC test, a worker can be deemed an independent contractor if three conditions are met:
- The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
- The worker performs work that is outside the usual course of the hiring entity’s business; and
- The worker is customarily engaged in an independent established trade, occupation, or business
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Reminder: Always Order a Title Search for Your Mechanic’s Lien
June 02, 2016 —
Christopher G. Hill – Construction Law MusingsMechanic’s liens are close to my heart as a construction attorney. These powerful tools for collection have been (and likely will be) discussed often here at Construction Law Musings. In fact, they rated their own page here at this little construction blog.
While the form for a mechanic’s lien that is found in the Virginia Code looks simple enough, what goes into that form is key to getting past the initial stage of the mere recording of the lien and moving on to where a lien claimant wishes to go: Payment. Everything from the proper amount of the lien to the timing of filing, the parties named, type of work performed and who signs the lien can trip you up even before you get a chance to have a judge examine your payment claim. In short, this simple form has many pitfalls.
On final item that is not often discussed is the description of the property and who the owner is on a project. A mistake on either of these fronts can be fatal as well. Often the “Owner” listed on the construction documents (the contracts, etc.) is not the same as the owner of the real estate to which your lien would attach. Sometimes a company may hire the general contractor as owner and either be a tenant of the property or could be the operating entity, but not the land holder. In either of these scenarios, merely naming the contract “owner” can be a mistake that could cost you your lien. The owner for lien purposes must be the land owner or there will be a problem.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Gillotti v. Stewart (2017) 2017 WL 1488711 Rejects Liberty Mutual, Holding Once Again that the Right to Repair Act is the Exclusive Remedy for Construction Defect Claims
November 21, 2017 —
Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. - Chapman Glucksman Dean Roeb & Barger BulletinOriginally published by CDJ on June 5, 2017
Background
In Gillotti v. Stewart (April 26, 2017) 2017 WL 1488711, which was ordered to be published on May 18, 2017, the defendant grading subcontractor added soil over tree roots to level the driveway on the plaintiff homeowner’s sloped lot. The homeowner sued the grading subcontractor under the California Right to Repair Act (Civil Code §§ 895, et seq.) claiming that the subcontractor’s work damaged the trees.
After the jury found the subcontractor was not negligent, the trial court entered judgment in favor of the subcontractor. The homeowner appealed, arguing that the trial court improperly construed the Right to Repair Act as barring a common law negligence theory against the subcontractor and erred in failing to follow Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98. The Third District Court of Appeal disagreed and affirmed the trial court’s judgment in favor of the subcontractor.
Impact
This is the second time the Third District Court of Appeal has held that Liberty Mutual (discussed below) was wrongly decided and held that the Right to Repair Act is the exclusive remedy for construction defect claims. The decision follows its holding in Elliott Homes, Inc. v. Superior Court (Hicks) (2016) 6 Cal.App.5th 333, in which the Court of Appeal held that the Right to Repair Act’s pre-litigation procedures apply when homeowners plead construction defect claims based on common law causes of action, as opposed to violations of the building standards set forth in the Right to Repair Act. Elliott is currently on hold at the California Supreme Court, pending the decision in McMillin Albany, LLC v. Superior Court (2015) 239 Cal.App.4th 1132, wherein Liberty Mutual was rejected for the first time by the Fifth District. CGDRB continues to follow developments regarding the much anticipated McMillin decision closely, as well as all related matters.
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Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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