California Builders’ Right To Repair Is Alive
March 19, 2014 —
David J. Byassee - Ulich & Terry LLPThe California Supreme Court surprised everyone on December 11, 2013 when it denied Brookfield Homes’ request for review of the ruling in the case of Liberty Mutual Ins. Co. v. Brookfield Crystal Cove, LLC (2014) 219 Cal.App.4th 98, which was decided by the Court of Appeal for the Fourth Appellate District Division Three (Orange County). In that case the Court of Appeal held that the Right to Repair Act aka SB800 is not the exclusive remedy for a homeowner seeking damages for construction defects that have resulted in property damage. Under the ruling, homeowners may choose to sue builders under common law theories of liability such as strict liability and negligence, in addition to liability under the Act. This ruling made homeowners' compliance with the prelitigation requirements of the Act optional and thereby put builders' “right to repair” in jeopardy. The ruling undermined the expectations of California's homebuilders who, for the past decade, understood that their liability is limited by the Act and that they have a right to repair.
Since the Liberty Mutual case was handed down, the topic has become a hotbed item with several divisions of the Court of Appeal. On February 19, 2014, the Court of Appeal for the Second Appellate District Division Three (Los Angeles County) issued a ruling against Premier Homes in the case of Burch v. Superior Court 2014 Cal.App.LEXIS 159 that, without independent analysis, simply adopted the holding in the Liberty Mutual case.
But on February 21, 2014, the Court of Appeal for the Second Appellate District Division Four (Los Angeles County) ruled in the case of KB Home Greater Los Angeles, Inc. v.Superior Court 2014 Cal.App.LEXIS 167 that a homeowner's failure to give the builder an opportunity to inspect and repair a construction defect excused the builder's liability under the Act. Additionally, the Court of Appeal went out of its way to state it had ruled earlier in that case that the Act is the exclusive remedy.
The various rulings lay a foundation for ultimate intervention by the California Supreme Court. In the meantime, these opposing cases will be cited by counsel for homeowners and builders alike for opposing positions as they continue to navigate construction defect disputes.
Mr. Byassee is a strategic litigator specializing in representation of builders and developers. For more information regarding dispute resolution procedures under SB800, Mr. Byassee may be contacted at (949) 250-9797 or by email at dbyassee@ut-law.com.
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David J. Byassee, Ulich & Terry LLP
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Traub Lieberman Attorneys Lisa Rolle and Christopher Acosta Win Motion to Dismiss in Bronx County Trip and Fall
May 22, 2023 —
Lisa M. Rolle & Christopher D. Acosta - Traub LiebermanTraub Lieberman Partner Lisa Rolle and Associate Christopher Acosta won a motion to dismiss in a trip and fall accident complaint and cross-claim brought before the New York Supreme Court, Bronx County. The underlying accident allegedly occurred on the sidewalk abutting the subject premises, which is owned by the Property Owner and was leased to a Pest Control Company. The Property Owner brought a cross-claim against the Pest Control Company as a result of the initial complaint.
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Lisa M. Rolle, Traub Lieberman and
Christopher D. Acosta, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Acosta may be contacted at cacosta@tlsslaw.com
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Ohio Court of Appeals Affirms Judgment in Landis v. Fannin Builders
April 20, 2011 —
Beverley BevenFlorez CDJ STAFFThe Ohio Court of Appeals affirmed the judgment in Landis v. William Fannin Builders. Landis contracted Fannin Builders to build their home. The case involved staining problems on the T1-11 siding chosen by the plaintiffs.
After a year and a half of discussion on how to resolve the problem of uneven staining on the siding, Landis filed suit “against Fannin Builders, alleging claims for breach of contract, breach of the express limited warranty, and violation of the Ohio Consumer Sales Practices Act (“OCSPA”). Fannin Builders, in turn, filed a third-party complaint against 84 Lumber, alleging claims for breach of contract and indemnification. With the trial court’s leave, Fannin Builders also later amended its answer to add a counterclaim against appellees for breach of contract and unjust enrichment. In the counterclaim, Fannin Builders alleged that appellees still owed it $3,908.98 for the construction of appellees’ home.”
“In its decision, the trial court found in appellees’ favor on their breach of contract claim and against appellees on their claims for breach of the express limited warranty and violation of the OCSPA. Additionally, the trial court found in Fannin Builders’ favor on its counterclaim for breach of contract and against Fannin Builders on its third-party claims for breach of contract and indemnity. The trial court determined that appellees’ damages amounted to $66,906.24, and after setting off the $3,908.98 that appellees owed Fannin Builders under the construction contract, the trial court awarded appellees $62,997.26. The trial court reduced its decision to judgment on May 18, 2010.”
Fannin Builders appealed this judgment and assigned the following errors:
[1.] The Trial Court Erred as a Matter of Law by Concluding that Appellant Breached its Contract with Appellees when it provided a Semi-Transparent Oil-Based Stain that Simply did not Meet their Approval.
[a.] The Contract does not Contain a Satisfaction Clause.
[b.] Even if the Court Implies a Satisfaction Clause, the Court Should Apply an Objective Standard.
[2.] The Trial Court Erred as a Matter of Law by Failing to Consider Appellant’s Right to Cure.
[3.] The Trial Court committed Reversible Error by not Assessing Damages Using “Diminished Value Standard,” and by Creating a Remedy that Constitutes Economic Waste.
[4.] The Trial Court Erred as a Matter of Law by Concluding that Appellant is Barred from Seeking Indemnification When 84 [Lumber] Never Fulfilled its Obligations Pursuant to the Settlement Agreement Entered on August 2, 2005.
In response to the first assigned error, the Court of Appeals stated: “Because the failure to provide siding of a uniform color, not appellees’ displeasure, breached the contract, we reject Fannin Builders’ contention that the trial court implied a satisfaction clause into the contract and found a breach of that clause. Accordingly, we overrule Fannin Builders’ first assignment of error.”
The Court of Appeals overruled the second assignment of error and provided the following reasoning: “Although Fannin Builders depends upon a term of the limited warranty for its right to cure, the trial court concluded that no breach of the limited warranty occurred. Fannin Builders breached the duty of workmanlike conduct implicit in the construction contract, not the limited warranty requiring it to satisfy the BIA’s Quality Standards. Consequently, the limited warranty does not apply to this case, and thus, it does not prevent appellees’ recovery of damages.”
The Appeals Court found “the trial court’s award of damages” was “both reasonable and supported by competent, credible evidence,” and therefore concluded “that the trial court did not err in setting appellees’ damages at $62,997.26.” The Fannin Builders third assignment of error was overruled.
The fourth and final assignment of error was also overruled by the Court of Appeals. “While Fannin Builders correctly asserts that 84 Lumber never installed the replacement siding, it ignores the fact that it ordered 84 Lumber to remove the replacement siding from appellees’ property. Thus, Fannin Builders precluded 84 Lumber from completely performing under the August 2, 2005 letter agreement. […] Consequently, Fannin Builders cannot now claim that the letter agreement is unenforceable or that it is entitled to indemnification from 84 Lumber. Because Fannin Builders assumed all liability for the defective siding in the letter agreement, it is responsible for appellees’ damages.”
James A. Zitesman, Columbus, Ohio Business Attorney, compared the case to Jones v. Centex (Ohio App. 2010), which had a different verdict:
“The common thread is the implied warranty of good workmanship. In the Jones case, the Court found that the buyers had in fact waived all implied warranties, including the implied warranty of good workmanship. In the contract between Jones and Centex, the builder stated that it “…would not sell the property to Purchasers without this waiver.” Probably should have been a sign to the buyers.
In the Landis case, the Court stated, “Contracts for the future construction of a residence include a duty, implied by law, that the builder must perform its work in a workmanlike manner.” The Court gave significant weight to the concept of the implied warranty of good workmanship. The builder relied upon the BIA Warranty which limits builders’ liability and exposure to legal issues. The trial court concluded there was no breach of the limited warranty, rather the builder “breached the duty of workmanlike conduct implicit in the construction contract, not the limited warranty requiring it to satisfy the BIAs Quality Standards.”
The Supreme Court of Ohio has accepted the Jones v. Centex Homes case for review.
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Business Risk Exclusions Bar Coverage for Construction Defect Claims
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014).
The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer. The lot was excavated and the basement foundation was back-filled. When the Cannons moved in, they noticed cracks throughout the foundation, basement slab, ceilings and driveway. The Cannons' home was rendered uninhabitable.
The Cannons sued Cook. Cook agreed to a confession of judgment and assignment of its rights against Western Heritage, who defended Cook under a reservation of rights. Western Heritage filed an action for declaratory judgment.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
London Penthouse Will Offer Chance to Look Down at Royalty
March 05, 2015 —
Zainab Fattah – Bloomberg(Bloomberg) -- A penthouse “overlooking the Queen’s balcony” will cap a London luxury apartment project planned near Buckingham Palace, according to its Abu Dhabi-based owner.
The 10,000 square-foot (929 square-meter) apartment at No. 1 Palace St. across the street from the royal residence will probably fetch about 60 million pounds ($92 million), Jassim Alseddiqi, chief executive officer of Abu Dhabi Financial Group LLC, said in an interview in the capital of the United Arab Emirates on Monday.
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Zainab Fattah, BloombergMs. Fattah may be contacted at
zfattah@bloomberg.net
Wilke Fleury Celebrates the Addition of Two New Partners
February 18, 2019 —
Wilke FleuryWilke Fleury celebrates the addition of two new partners – Shannon Smith-Crowley and Daniel J. Foster – who complement the firm’s shifting generations of leadership. Shannon and Danny bring unique perspective and excellent capability to Wilke Fleury’s partnership effective January 1, 2019.
Shannon has been a registered lobbyist in California for 20 years. After a career in managed care, she started lobbying with the California Medical Association before founding her own firm, Partners In Advocacy to specialize in medical and reproductive health advocacy. At Wilke Fleury, her areas of practice include health care, women’s equity, life sciences, the biomedical industry, new family formation and emerging technologies in green energy. After a four year tenure with the firm, she has been elevated to the partnership.
Click here to read more about Shannon Smith-Crowley.
Daniel Foster’s litigation practice is composed of matters involving complex construction defect litigation, mechanics liens claims, stop notice actions and Miller Act claims. He represents clients before the Contractors State License Board and handles matters involving breach of warranty, the Song-Beverly Consumer Warranty Act, indemnity agreements and liability insurance coverage.
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Wilke Fleury
Construction is the Fastest Growing Industry in California
May 20, 2015 —
Garret Murai – California Construction Law BlogWe wrote earlier about why construction workers are the happiest employees on Earth, and pointed to one possible factor: That construction, which was one of the hardest hit industries during the 2008 real estate collapse, has since bounced back.
This past month, the California Employment Development Department (“EDD”) released data putting some numbers to that hypothesis. And the result: According to the EDD, over the past 12 months, construction was the fastest growing industry in California, adding more than 46,000 jobs within the last year, an increase of 6.9% from 667,000 workers in March 2014 to 713,000 workers in March 2015.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
BHA Has a Nice Swing
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates, Inc., (BHA) raises thousands of dollars each year with their Sink a Putt for Charity campaign. This year, participant’s efforts on the green will help benefit three cancer fighting institutions that are dedicated to treating and eradicating children’s cancer: Hawaii’s Children’s Cancer Foundation, St. Jude Children’s Research Hospital, and Shriners Hospital for Children. As in the past, attendees can participate for free in the BHA golf challenge and win a $25 Amazon gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to be distributed equally between each worthy organization.
While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA’s data collection process includes video overviews as well as next-day viewing of inspection data via their secured BHA Client Access Portal. Discover meaningful cost improvements that translate to reduced billing while providing superior accuracy and credibility. Also learn about BHA’s expanding market presence and full range of services in Texas, Florida, and across the Southeast United States.
Attendees can also enter to win Dodger baseball tickets! Other BHA giveaways include LED flashlights, tape measures, multi-tools and stress balls.
For more information on these worthwhile charities or to make a donation directly, please visit their websites:
Hawaii’s Children’s Cancer Foundation ,
St. Jude Children’s Research Hospital, and
Shriners Hospital for Children.
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