Fairfield Connecticut Building Expert Directory

Nevada Supreme Court Clarifies the Litigation Waiver of the One-Action Rule

September 07, 2017 — Bob L. Olson - Snell & Wilmer Real Estate Litigation Blog
Nevada has a one-action rule which, with limited exceptions, requires a creditor seeking to recover a debt secured by real property to proceed against the security first prior to seeking recovery from the debtor personally. In the event that a law suit is filed in violation of the one-action rule, final judgment may be entered in favor of the creditor but that judgment “releases and discharges the mortgage or other lien.” NRS 40.455(3). Nevada law further provides that, with the exception of certain guaranties, any provision in an agreement relating to the sale of real property which contains a waiver of Nevada’s anti-deficiency laws may not be enforced by a court because doing so violates Nevada’s public policy. NRS 40.453. Nevada law also addresses when the one-action rule may be waived in litigation. In the author’s view, the governing statute, NRS 40.435 is ambiguous. Section 2 of that statute states that if the one-action rule is timely interposed as an affirmative defense, the action must either be dismissed without prejudice or continued to allow the creditor to file amended pleadings to convert the action into one which does not violate the one-action rule. This suggests that the one-action rule must be asserted as an affirmative defense in the debtor’s answer to the complaint or it is waived by the debtor. The first sentence of section 3 of the statute, however, seems to suggest that the debtor has up until the entry of a final judgment to waive the one-action rule by stating: “[t]he failure to interpose, before the entry of a final judgment, the provisions of NRS 40.430 [the one-action rule] as an affirmative defense in such a proceeding waives the defense in that proceeding.” Read the court decision
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Reprinted courtesy of Bob L. Olson, Snell & Wilmer
Mr. Olson may be contacted at bolson@swlaw.com

Prison Contractors Did Not Follow the Law

October 15, 2013 — CDJ STAFF
Under Iowa law, nearly ninety-percent of the construction workers for the new state prison in Fort Madison should have been Iowa residents. But according to reports obtained by the Des Moines Register, about fifty percent of the workers were from other states. The law responds to a similar one in Illinois that requires that most workers on public projects must be Illinois residents. Many of the out-of-state employees live on the other side of the Mississippi River and, according to Ryan Drew of the Southeast Iowa Building and Construction Trades Council, are part of a broader Illinois-Iowa community, shopping at Iowa retailers. Read the court decision
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The Sounds of Silence: Pennsylvania’s Sutton Rule

January 29, 2024 — William L. Doerler - The Subrogation Strategist
In Westminster Am. Ins. Co. a/s/o Androulla M. Toffalli v. Bond, No. 538 EDA 2023, 2023 Pa. Super. LEXIS 626, 2023 PA Super 272, the Superior Court of Pennsylvania (Appellate Court) recently discussed the impact of silence on the Sutton Rule with respect to the landlord, Androulla M. Toffalli (Landlord), securing insurance. After holding that the tenant, Amy S. Bond (Bond) t/a Blondie’s Salon – who leased both commercial and residential space in the building pursuant to written leases – was not an implied “co-insured” on Landlord’s insurance policy, the Appellate Court reversed the decision of the trial court. In this case, Bond rented the ground floor of a property located in Monroe County pursuant to a written commercial lease (Commercial Lease) and operated Blondie’s salon out of the leased location. In addition, Bond rented and lived in a second-floor apartment pursuant to a residential lease (Residential Lease). Both leases required the tenants (Tenants) to obtain insurance for personal items. The leases, however, did not require Landlord to obtain fire insurance for the property. Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Speculative Luxury Homebuilding on the Rise

April 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Forbes reported that there is a “comeback in speculative building of luxury homes in centers of wealth across the country.” “The appearance of spec homes in the upper price range is an indication of the maturation of the housing cycle,” Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA, told Forbes. “It’s an indication of increasing levels of confidence on the part of home builders.” Dana Kuhn, of the Corky McMillin Center for Real Estate at San Diego State University, stated that she “would expect luxury buyers to want more design control than can be afforded them if the house is mostly complete when they make their purchase.” But the article showed the flip side: Some luxury buyers are “too busy to bother with such involvement” and even prefer to buy the house fully furnished. Read the court decision
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Insolvency of Primary Carrier Does Not Invoke Excess Coverage

January 06, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The insured failed to present any argument for excess coverage after the insolvency of the primary carrier. Canal Ins. Co. v. Montello, Inc., 2015 U.S. App. LEXIS 20625 (10th Cir. Nov. 27, 2015). Montello distributed an oil drill containing asbestos between 1966 and 1985. Montello was sued by individuals claiming injuries due to exposure to the asbestos. Montello was insured by The Home Insurance Company from March 1975 to March 1984. In 2003, Home was declared insolvent. Home did not pay any claims for bodily injury on Montello's behalf. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement

September 17, 2015 — Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLP
In what could lead to a draconian result, the Court of Appeal for the First Appellate District held that a contractor who performs work without a valid license can be required to disgorge all payments received, even if the contractor perfectly performed its work. The case, Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393), involved an $18,000,000 contract between Jacobs Facilities, Inc. (“Jacobs Facilities”) and the Judicial Council of California (“Judicial Council”). In April 2006, Jacobs Facilities, a wholly owned subsidiary of Jacobs Engineering Group, Inc. (“Jacobs Engineering”) entered into a three year contract with the Judicial Counsel to maintain 121 courthouses and other judicial branch buildings throughout Southern California (the “Contract”). Jacobs Facilities contracted to provide maintenance and oversight services, while retaining subcontractors to perform the actual maintenance and repair work. In December 2006, as part of a corporate reorganization, Jacobs Engineering started winding up Jacobs Facilities and transferred its employees to Jacobs Engineering and then subsequently to another wholly owned subsidiary called Jacobs Project Management Co. (“Jacobs Management”). The work that was performed by Jacobs Facilities was taken over by Jacobs Management. As part of the windup, Jacobs Facilities’ Contractor’s State License Board license was allowed to lapse and the license expired by operation of law in November 2008. Although Jacobs Management was now performing the work, it was not added as a party to the contract. Although it appears Judicial Council was aware of the corporate changes, it was not until November 2009 that the parties assigned the contract to Jacobs Management. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and David A. Harris, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Read the court decision
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Notice of Completion Determines Mechanics Lien Deadline

August 13, 2019 — William L. Porter - Porter Law Group
The California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met. Know Your Mechanics Lien Filing Deadlines Generally Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows: Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Don’t Sign a Contract that Doesn’t Address Covid-19 (Or Pandemics and Epidemics)

December 14, 2020 — David Adelstein - Florida Construction Legal Updates
Do yourself a favor: Don’t sign a construction contract that doesn’t address COVID-19 or any pandemic or epidemic from this point forward! As the number of COVID-19 numbers rise, it would be reasonable to think this could have an impact on ongoing or future construction projects. For this reason, I want to revisit the subject of addressing COVID-19 (and any pandemic or epidemic) in your construction contract. The potential impact caused by COVID-19 could result from governmental regulations that impact construction of the project, shutdowns due to affected workers, owners’ decisions to suspend performance or adjust the way the project is being constructed, increased deep cleaning requirements, and increased measures associated with social distancing and re-sequencing of shifts. This all plays into the timeliness of performance and the productivity of manpower and equipment usage. When submitting a price, a lot of these considerations may not be factored in because doing so could lead to a price that will never get accepted. 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

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