Update to Washington State Covid-19 Guidance
November 23, 2020 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCYesterday, November 15, 2020, Governor Inslee announced modifications to the current COVID-19 restrictions in response to the current rise in cases across Washington State.
There are no additional restrictions on construction at this time. However, during the Governor’s press conference yesterday, he did indicate that positive cases were increasing on construction sites, and that they would be tracking the statistics over the next 2 – 3 weeks – to see if additional restrictions would be necessary for construction sites in the future. Additionally, the construction industry group is meeting with the Governor’s office today, November 16, 2020, and we will keep you informed of any changes as a result of that meeting.
Unless otherwise specifically noted, the modifications take effect at 12:01 a.m., Tuesday, November 17, 2020. All modifications to existing prohibitions set forth herein shall expire at 11:59 p.m., Monday, December 14, 2020, unless otherwise extended. If an activity is not listed below, currently existing guidance shall continue to apply. If current guidance is more restrictive than the below listed restrictions, the most restrictive guidance shall apply. These below modifications do not apply to education (including but not limited to K-12, higher education, trade and vocational schools), childcare, health care, and courts and judicial branch-related proceedings, all of which are exempt from the modifications and shall continue to follow current guidance. Terms used in this proclamation have the same definitions used in the Safe Start Washington Phased Reopening County-by-County Plan.
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Brett M. Hill, Ahlers Cressman Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Will a Notice of Non-Responsibility Prevent Enforcement of a California Mechanics Lien?
March 05, 2015 —
William L. Porter – Porter Law Group, Inc.The “Notice of Non-Responsibility” is one of the most misunderstood and ineffectively used of all the legal tools available to property owners in California construction law. As a result, in most cases the answer to the above question is “No”, the posting and recording of a Notice of Completion will not prevent enforcement of a California Mechanics Lien.
The mechanics lien is a tool used by a claimant who has not been paid for performing work or supplying materials to a construction project. It provides the claimant the right to encumber the property where the work was performed and thereafter sell the property in order to obtain payment for the work or materials, even though the claimant had no contract directly with the property owner. When properly used, a Notice of Non-Responsibility will render a mechanics lien unenforceable against the property where the construction work was performed. By derailing the mechanics lien the owner protects his property from a mechanics lien foreclosure sale. Unfortunately, owners often misunderstand when they can and cannot effectively use a Notice of Non-Responsibility. As a result, the Notice of Non-Responsibility is usually ineffective in protecting the owner and his property.
The rules for the use of the Notice of Non-Responsibility are found in California Civil Code section 8444. Deceptively simple, the rules essentially state that an owner “that did not contract for the work of improvement”, within 10 days after the owner first “has knowledge of the work of improvement”, may fill out the necessary legal form for a Notice of Non-Responsibility and post that form at the worksite and record it with the local County Recorder in order to prevent enforcement of a later mechanics lien on the property.
What commonly occurs however is that early in the process the owner authorizes or even requires its tenant to perform beneficial tenant improvements on the property. This authorization is often set forth in a tenant lease or other written document. The dispositive factor for determining whether the Notice of Non-Responsibility will be enforceable though is that the owner knows that these improvements will be made to the property and intends that they be made, usually long before the work begins. Indeed, the owner has usually negotiated these very terms into the lease contract. The owner then mistakenly believes that once work on the property commences it has 10 days to post and record a Notice of Non-Responsibility and thereby protect itself from a mechanics lien.
The usual error is two-fold. First, the statute states that the Notice is available when the owner “did not contract for the work of improvement”. The fact though is that the owner did contract for the work of improvement. It did so through the lease contract. This is true even though the owner’s contract was not with the contractor or supplier directly. Secondly, the 10 day period to post and record the Notice begins when the owner first “has knowledge” of the work of improvement. This knowledge was of course gained when the lease was negotiated and signed, providing knowledge typically many days before the work has begun. Thus, the 10 day period can also seldom be met. The Notice of Non-Responsibility will therefore fail both rules because the owner has in fact contracted for the improvement and because he does not act within 10 days of gaining this knowledge.
The next event in the typical scenario occurs when the tenant does not pay its contractor. The contractor then has nothing to pay its subcontractors. Material suppliers also go unpaid. Mechanics liens are then recorded by the unpaid claimants, followed by foreclosure actions within ninety days thereafter. Owners will typically point to the Notice of Non-Responsibility they posted and recorded, claiming its protection. Claimants then in turn point to the lease or other evidence that the owner knew of the pending improvements and contracted in some way that the improvements be performed, often also more than 10 days before they posted the Notice. Judges generally agree with the unpaid mechanics lien claimants and the Notice of Non-Responsibility is deemed ineffective.
The fact that the Court does not enforce the Notice of Non-Responsibility under these circumstances is not an unfair result. Since the owner authorized the work to be performed and it received a substantial benefit in the form of those improvements, it is not unfair that the owner should pay for those benefits. It would be inequitable for the owner to obtain the benefit of the improvements which it authorized but for which it did not pay, while allowing those who provided the benefit to go unpaid. Moreover, without such a system in place the door would be open to owners setting up sham “tenants” who would enter into contracts to have work performed, only to disappear when the work is completed, leaving the contractor without a source of payment. The system in place as described above prevents such duplicity. Owners would do well to arm themselves with proper knowledge of when the Notice of Non-Responsibility will and will not protect them and then responsibly use the Notice of Non-Responsibility.
For the legal eagles among you, the following cases illustrate the view of the courts, consistent with the above: Baker v. Hubbard (1980) 101 Cal.App.3d 226; Ott Hardware v. Yost (1945) 69 Cal. App.2d 593 (lease terms); Los Banos Gravel Co. v. Freeman (1976) 58 Cal.App.3d 785 (common interest); Howard S. Wright Construction Co. v. Superior Court (2003); 106 Cal.App.4th 314 (participating owner).
William L. Porter of
Porter Law Group, Inc. located in Sacramento, California may be contacted at (916) 381-7868 or bporter@porterlaw.com
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How You Plead Allegations to Trigger Liability Insurer’s Duties Is Critical
November 01, 2021 —
David Adelstein - Florida Construction Legal UpdatesHow you plead allegations in your lawsuit to trigger duties of a liability insurance carrier is a critical consideration. If the complaint is not pled appropriately, it can result in the carrier NOT owing a duty to defend its insured, which is the party(ies) you are suing. If there is no duty to defend, there will be no duty to indemnify the insured to cover your damages. For this reason, in a number of circumstances, this is NOT what you want because you want to trigger insurance coverage and potential proceeds to be paid by a carrier to cover your damages. There are times when you are confronted with a case that just is not a good insurance coverage case. This may result in you coming up with creative arguments to maximize insurance coverage. Even in these times, you want to plead the complaint to best maximize coverage under the creative arguments you have developed.
An example of not pleading allegations in a complaint to trigger an insurer’s duties can be found in the Eleventh Circuit Court of Appeal’s decision in Tricon Development of Brevard, Inc. v. Nautilus Insurance Co., 2021 WL 4129373 (11th Cir. 2021). This case involved a general contractor constructing condominiums. The general contractor hired a subcontractor to fabricate and install metal railings. The subcontractor had a commercial general liability (CGL) policy that named the general contractor as an additional insured with respect to liability for property damage “caused in whole or in part” by the subcontractor’s direct or vicarious acts or omissions. (This is a good additional insured endorsement.)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
UCF Sues Architects and Contractors Over Stadium Construction Defects
October 19, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.The University of Central Florida (UCF) filed suit over alleged construction defects of their 45,000-seat arena including the claim of “premature wear of the steel,” spokesman Chad Binette stated, according to the Orlando Sentinel.
Bid documents suggest that rust may be an issue. UCF recently sought contractors for “Stadium Emergency Rust Repairs.” The Orlando Sentinel reported that the university stated “the word ‘emergency’ reflects deadlines for the football season instead of safety concerns.” Other documents also claimed ongoing rust remediation.
The UCF stadium had earned the nickname “Bounce House” from the arena “subtly swaying as fans jumped together to the song ‘Kernkraft 400’ by Zombie Nation. UCF spent hundreds of thousands of dollars in 2008 stiffening the underpinnings of the stadium by bolting additional steel to about 160 beams,” according to the Orlando Sentinel. Officials claim that the stadium was never unsafe.
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Congratulations to Wilke Fleury’s 2023 Super Lawyers and Rising Stars!!
July 10, 2023 —
Wilke Fleury LLPWilke Fleury is extremely proud that 18 of its incredible attorneys have been selected as 2023 Northern California Super Lawyers or Rising Stars! Super Lawyers rates attorneys in each state using a patented selection process and publishes a yearly magazine issue that produces award-winning features on selected attorneys. Congratulations to this talented group:
Super Lawyers of 2023
David A. Frenznick
Steven J. Williamson
Matthew W. Powell
Daniel L. Egan
George A. Guthrie
Michael G. Polis
Daniel J. Foster
Stephen K. Marmaduke
Neal C. Lutterman
Trevor L. Stapleton
Ronald R. Lamb
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Wilke Fleury LLP
Travelers’ 3rd Circ. Win Curbs Insurers’ Asbestos Exposure
May 03, 2017 —
Gregory D. Podolak - Saxe Doernberger & Vita, P.C.In breaking news this week, LAW360.com posted that the Third Circuit ruled Friday that “a common exclusion found in a Travelers policy bars coverage for claims arising out of asbestos in any form, limiting insurers’ potential exposure to asbestos injury claims by precluding policyholders from arguing that the exclusionary language is ambiguous and doesn’t extend to products containing the carcinogen.”
In its detailed analysis of the decision, LAW360 turned to Greg Podolak for his analysis.
Gregory D. Podolak, managing partner of Saxe Doernberger & Vita PC’s Southeast office, said the ruling is a cautionary tale that should galvanize policyholders and their insurance brokers to take a closer look at policies to delete or curtail broad “arising out of” language in exclusions. Otherwise, insureds could find themselves without any coverage for claims even remotely related to a certain product, he said.
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Gregory D. Podolak, Saxe Doernberger & Vita, P.C.Mr. Podolak may be contacted at
gdp@sdvlaw.com
What Construction Contractors Should Know About the California Government Claims Act
May 28, 2024 —
Garret Murai - California Construction Law BlogIf you work on state or local public works projects in California you should have at least a basic understanding of the Government Claims Act formerly known as the Tort Claims Act (Govt. Code §§ 900 et seq.). In the event of a dispute with a public entity, the Government Claims Act will usually apply, absent contractual provisions providing otherwise (Govt. Code §§930, 930.2) (e.g., in a construction contract), and requires that a “claim” first be presented to a “public entity” before a claimant files a lawsuit against the public entity. Failure to comply with the Government Claims Act can serve as a bar to maintaining a lawsuit against a public entity.
What types of claims does the Government Claims Act apply to?
The Government Claims Act broadly applies to most claims against state and local public entities. This is not limited to construction projects and includes all claims for “money or damage” arising from death, personal injury, breach of contract, and damage to real and personal property, wrongful death, or breach of contract.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Get Smarter About Electric Construction Equipment
October 24, 2022 —
CONEXPO-CON/AGGMILWAUKEE – Sustainability in the construction industry is being advanced by the public and private sectors. Governments are adopting more clean-air regulations at local and regional levels and companies are adopting sustainability policies and asking partners to help them meet their targets.
Consequently, many manufacturers have already developed – or are in the process of developing – electric-powered construction equipment to meet increasing emissions regulations, provide efficiency improvements, and lower operating costs. All electric, electric/hydraulic, and battery-operated versions rival their diesel and gas counterparts in performance, notes
Joel Honeyman, Vice President of Global Innovation at
Bobcat.
THE CHANGING INDUSTRY
“People say electric machines are not going to perform as well as a diesel machine,” Honeyman observes. “That is simply not true. In many cases they can outperform them.”
“Many people are so used to what they have and are afraid of new technology. Some companies have been running diesel- and gas-powered equipment for 40, 50 years. Hydraulics have been on equipment for 80 years. Adjusting to an electric-powered machine is quite a paradigm shift.”
About the Association of Equipment Manufacturers (AEM)
AEM is the North America-based international trade group representing off-road equipment manufacturers and suppliers with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. The equipment manufacturing industry in the United States supports 2.8 million jobs and contributes roughly $288 billion to the economy every year.
About CONEXPO-CON/AGG
Held every three years, CONEXPO-CON/AGG is the must-attend event for construction industry professionals. The show features the latest equipment, products, services and technologies for the construction industry, as well as industry-leading education. The next CONEXPO-CON/AGG will be held March 14-18, 2023 in Las Vegas, Nevada. For more information on CONEXPO-CON/AGG, visit https://www.conexpoconagg.com. Learn more about
excavator tech here.
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