2025 Construction Law Update
January 07, 2025 —
Garret Murai - California Construction Law BlogIt’s that time of year again.
The second half of the 2023-2024 legislative session saw the introduction of 2,124 bills, of which, 1418 were signed into law. Among the bills signed by the governor impacting contractors is an increase in the small work licensing exemption for $500 to $1,000, the licensing of Indian tribes by the CSLB, and a number of project-specific bills, as is typical, related to project-specific alternative project delivery methods.
Wishing you and yours a great 2025!
Licensing
AB 2622 – Increases the small work licensing exemption from $500 to $1,000 provided that the work: (1) does not require a building permit; and (2) does not involve the employment of others to perform or assist in the work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction Industry Survey Says Optimism Hits All-Time High
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Nashville Business Journal reported that “construction optimism has been growing exponentially since it hit an all-time low in 2009.” Furthermore, “Wells Fargo's 2014 Construction Industry Forecast saw the Optimism Quotient rise to an all-time high of 124 after a survey that was performed in January.”
Reasons for the rise, according to Wells Fargo National Sales Manager John Crum, include “more capital available from banks, more public jobs and state and local governments being able to shore up their money supplies,” as quoted by the Nashville Business Journal.
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Insurer's Motion for Summary Judgment in Collapse Case Denied
November 10, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court denied the insurer's motion for summary judgment seeking to establish it did not breach the policy when denying coverage for the collapse of basement walls. Belz v. Peerless Ins. Co., 2016 U.S. Dist. LEXIS 118900 (D. Conn. Sept. 2, 2016).
The Belzes purchased their home in 2001. Prior to the purchase, they were aware of notable cracking in the basement walls. An engineer was hired to inspect the cracking and determined the cracks did not threaten the structural integrity of the home.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Toll Brothers Honored at the Shore Builders Association of Central New Jersey Awards
May 13, 2024 —
Toll BrothersFREEHOLD, N.J., May 07, 2024 (GLOBE NEWSWIRE) --
Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, today announced that the Company's New Jersey Division was honored with six awards at the 2024 Fabulous Achievements in Marketing Excellence (FAME) Awards held at South Gate Manor in Freehold, New Jersey.
Presented by the Shore Builders Association of Central New Jersey, the FAME Awards honor home builders of the New Jersey Builders Associations who have made major contributions to the home building industry. The awards span categories from product and design to advertising, marketing, and professional achievements. Toll Brothers was selected as the winner in the following categories:
For more information on Toll Brothers communities in New Jersey, visit
TollBrothers.com/NewJersey.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is¬ the nation's leading builder of luxury homes. The Company was founded 57 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol "TOL." The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.
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Open & Known Hazards Under the Kinsman Exception to Privette
February 15, 2018 —
Frances Ma & Lawrence S. Zucker II – Haight Brown & Bonesteel LLP Publications & InsightsGonzalez v. Mathis, 2018 WL 718528 confirms the difficulties a defendant will face when trying to overcome the Kinsman exception to the
Privette doctrine on a dispositive motion when dealing with an open and obvious hazard. There, a professional window washer fell off a roof while walking along a parapet wall constructed by the owner of a home.
The window washer filed suit against the homeowner and alleged three dangerous conditions on the roof: (1) the parapet wall forced those who needed to access a skylight to walk along an exposed two-foot ledge that lacked a safety railing; (2) dilapidated and slippery roof shingles; and (3) the lack of tie off points that would allow maintenance workers to secure themselves with ropes or harnesses. The homeowner filed a motion for summary judgment under
Privette v. Superior Court (1993) 5 Cal.4th 689 and its progeny which prohibits an independent contractor from suing his or her hirer for workplace injuries (
“Privette doctrine”).
There are two exceptions to the
Privette doctrine. First, a hirer cannot avoid liability when he or she exercises control over the manner and means in which a contractor does his or her work and that control contributes to the injuries sustained – known as the
“Hooker exception” (premised on the holding of
Hooker v. Department of Transportation (2002) 27 Cal.4th 198). Second, a hirer may be found liable if he or she fails to warn the contractor of a concealed hazard on the premises – known as the
“Kinsman exception” (premised on the holding of
Kinsman v. Unocal Corp. (2005)).
Reprinted courtesy of
Frances Ma, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Ma may be contacted at fma@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Navigating Threshold Arbitration Issues in Construction Contracts
April 29, 2024 —
Daniel D. McMillan and TJ Auner - The Dispute ResolverIncluding an arbitration clause in your construction contract may not mean that your dispute will be confined to arbitration. Instead, parties often find themselves in court litigating threshold issues related to the existence and/or enforceability of an arbitration clause. Common issues include whether the underlying contract containing the arbitration clause is valid, whether the dispute falls within the scope of the clause, whether the parties complied with contractual prerequisites to arbitration, whether issues related to arbitrability are decided by the court or arbitrator, and whether one of the parties has waived their right to arbitrate. This blog post highlights two recent construction cases addressing threshold issues that a party seeking to enforce—or oppose enforcing—an arbitration clause might face.
Seifert v. United Built Homes, LLC: Delegating Issues of Arbitrability to the Arbitrator
In Seifert, an owner sued a homebuilder in Texas federal court for breach of contract and sought damages and declaratory relief. No. 3:22-CV-1360-E, 2023 WL 4826206 (N.D. Tex. July 27, 2023). The builder moved to compel arbitration. The owner opposed and argued that: (1) there was no agreement to arbitrate because the underlying contract was null and void, and (2) its claim for declaratory relief fell outside the scope of the arbitration clause. The court did not address the merits of either argument. Instead, it determined that these were issues for the arbitrator to decide.
Reprinted courtesy of
Daniel D. McMillan, Jones Day and
TJ Auner, Jones Day
Mr. McMillan may be contacted at ddmcmillan@jonesday.com
Mr. Auner may be contacted at tauner@jonesday.com
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NYC Building Explosion Kills Two After Neighbor Reports Gas Leak
March 12, 2014 —
Michelle Kaske and Henry Goldman, BloombergFifteen minutes after a New York City resident reported the pervasive smell of gas in her East Harlem neighborhood, a massive explosion destroyed two buildings, killing two people and injuring at least 18. Utility workers arrived too late.
The explosion at 1644 and 1646 Park Ave., near 116th Street, reported about 9:30 a.m., was heard miles away and turned into a five-alarm fire. Windows were blown out as far as 10 blocks away, and cars across the street were wrecked. The blast sent debris onto adjacent elevated train tracks, halting commuter rail service in and out of Grand Central Terminal. Minor wounds were too numerous to count, said Frank Gribbon, a spokesman for the New York City Fire Department.
“This is a tragedy of the worst kind,” Mayor Bill de Blasio said during a news conference near the scene. He said residents are still missing from the buildings, which had a total of 15 units, and crews would search for them when the fire is extinguished.
Ms. Kaske may be contacted at mkaske@bloomberg.net; Mr. Goldman may be contacted at hgoldman@bloomberg.net
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Michelle Kaske and Henry Goldman, Bloomberg
Some Construction Contract Basics- Necessities and Pitfalls
January 03, 2022 —
Christopher G. Hill - Construction Law MusingsRecently, I’ve been on an “advising” kick here at Construction Law Musings. My last two posts have been about communication and trusting your gut when it comes to a smooth construction project. This post will be the third in the trilogy (and who knows maybe I’ll have a 4th and 5th like the Hitchhiker’s Guide to the Galaxy “trilogy”).
While all construction contractors should use their communication skills and instincts to assure a smooth and hopefully profitable project, all of the gut following and great communication will not help you if your contract is not up to snuff. In the spirit of giving you a few basics things to look at, here’s my list of three basics that you need in your contract and a three things to be on the lookout for in others’ contracts.
First, the good stuff that needs to be there:
- Attorney Fees Clause– without it, a Virginia court (and most other courts) will not award you a judgment for any attorney fees spent to protect your rights.
- Dispute Resolution– whether the specified resolution is through the litigation process, ADR or some combination, such a clause or paragraph will only help define the parameters of what happens with a claim.
- Detailed scope of work– Without the proper detail in the scope of work, the parties cannot properly set expectations and know what happens when things change.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com