Nerves of Steel Needed as Firms Face Volatile Prices, Broken Contracts and Price-Gouging
December 06, 2021 —
Richard Korman, Jonathan Barnes, & Greg Aragon - Engineering News-RecordWhen Elmhurst Group, a Pittsburgh-area developer, started collecting bids for a new mixed-use building last November, the price of the steel frame, roof and cladding panels for the $14-million project came in $382,000 higher than expected—a big enough disappointment to give Elmhurst pause. Overall material costs for the project were running more than $650,000 above what was originally calculated.
Reprinted courtesy of
Richard Korman, Engineering News-Record,
Jonathan Barnes, Engineering News-Record and
Greg Aragon, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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When is a “Notice of Completion” on a California Private Works Construction Project Valid? Why Does It Matter for My Collection Rights?
January 27, 2020 —
William L. Porter - Porter Law GroupWhat is a Notice of Completion?
A “notice of completion” is a document recorded by the owner of property where construction work was performed. Specifically, it is recorded at the Office of the County Recorder in the County where the work was performed. The notice of completion tells the world at large that the construction project is complete. It also triggers the deadlines for those who have not been paid to make their claims for payment.
Is an Owner of a California Private Works Project Required to Record a Notice of Completion?
No, there is no requirement that an owner of a California private works construction project record a Notice of Completion. However, there are consequences which depend on whether an Owner elects to record the notice or not.
For My Collection Rights, Why Does it Matter Whether a Notice of Completion Has Been Recorded?
The date of recording of a valid notice of completion sets the deadline for those who have not been paid for work performed and materials supplied to a California construction project to pursue such important collection remedies as the “mechanics lien”, the “stop payment notice” and the “payment bond claim.” These are very powerful collection remedies for those who have not been paid. If the deadline to pursue these remedies is missed by a claimant, then the claimant’s right to pursue these remedies is also missed. One of these remedies, the mechanics lien, will enable the claimant to sell the owner’s property where the work was performed in order to get paid.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
San Francisco Office Secures Defense Verdict in Legal Malpractice Action
November 25, 2024 —
Lewis Brisbois NewsroomSan Francisco, Calif. (October 31, 2024) - After a ten-day jury trial in San Francisco Superior Court, Partner Alex Graft recently secured a defense verdict in a legal malpractice action arising out of underlying litigation with the claimants’ homeowners association. The claimants alleged his client attorneys negligently advised them that the terms of the settlement agreement would result in the creation of a so-called independent board of directors for the homeowners association. It did not come to fruition. After the attorneys withdrew, they sued for their outstanding fees, which elicited a cross-complaint alleging malpractice, breach of fiduciary duty, breach of contract and negligent misrepresentation.
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Lewis Brisbois
For Breach of Contract Claim, There Needs to be a Breach of a Contractual Duty
November 15, 2022 —
David Adelstein - Florida Construction Legal UpdatesRemember this law (and I mean: remember this law!):
“An essential element of a claim for breach of contract is the existence of a material breach of a contractual duty.” JD Development I, LLC v. ICS Contractors, LLC, 2022 WL 4587083, *3 (Fla. 2d DCA 2022) (citation and quotation omitted).
This law is important because how can another party breach of a contract if there is no contractual duty you claim they breached? This question, and, of course, the answer, should not be overlooked from a strategic standpoint because it may dictate what claims you assert, how you assert those claims, and how you present your case from a theme and evidentiary standpoint.
JD Development provides an example of why this law is important and how this can play out.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
California Insurance Commissioner Lacks Authority to Regulate Formula for Estimating Replacement Cost Value
April 15, 2015 —
Valerie A. Moore and Christopher Kendrick – Haight Brown & Bonesteel LLPIn Assn. of Cal. Insurance Companies v. Jones ( No. B248622, filed 4/8/15), a California appeals court held that California’s Insurance Commissioner Dave Jones lacked the authority to promulgate California Code of Regulations, title 10, section 2695.183, which set out specific requirements for estimating replacement cost as part of any application or renewal for homeowners insurance.
The regulation was promulgated in 2010 in response to complaints from homeowners who lost their homes in the wildfires in Southern California in 2003, 2007, and 2008, and who discovered that they did not have enough insurance to cover the full cost of repairing or rebuilding their homes because the insurers’ estimates of replacement value were too low when they purchased the insurance.
Reprinted courtesy of
Valerie A. Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
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Homeowner’s Claims Defeated Because “Gravamen” of Complaint was Fraud, not Breach of Contract
September 29, 2021 —
Garret Murai - California Construction Law BlogBe careful what you wish for or, as in the next case, what you plead. In Vera v. REL-BC, LLC, Case Nos. A155807, A156823, and A159141 (June 30, 2021) 1st District Court of Appeal, a the buyer of a remodeled home who asserted breach of contract and fraud claims against a developer discovered that her claims, including her breach of written contract claim, was subject to a shorter 3 year statute of limitations because the “gravamen” of her complaint was fraud.
The REL-BC Case
Homeowner Adriana Vera purchased a remodeled home in Oakland, California from developers REL-BC, LLC and SNL Real Estate Solutions, LLC. The developers had purchased the home in July 2011, remodeled it, and sold it to Vera in November 2011.
As is typical in such transactions, the purchase agreement for the house required that the sellers disclose known material facts and defects affecting the property. In their disclosure, the sellers stated that they were not aware of any significant defects or malfunctions with respect to the property. The disclosure also stated that the sellers were not aware of any water intrusion issues with respect to the property.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Creeping Incrementalism in Downstream Insurance: Carriers are Stretching Standard CGL Concepts to Untenable Limits
October 17, 2023 —
Eric M. Clarkson - Saxe Doernberger & VitaIn the construction sector, the importance of closely vetting downstream parties’ insurance has never been more critical. The markets have been hardening with no seeming end in sight and carriers are looking for any way to get an edge. Owners and general contractors need to be on the lookout for ever broader carrier-specific expansions of standard insurance provisions that are perilous for risk transfer. We are seeing more and more terms that go against the intent of ISO standard which is what is almost universally required in construction contracts.
One area where carriers are deviating from standard concepts is within pre-existing injury or damage exclusions in Commercial General Liability (“CGL”) policies. It is almost a universal requirement that downstream parties provide additional insured coverage to owners and general contractors on ISO form CG 00 01. Generally, ISO standard language provides coverage for sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage. One of the few main requirements to trigger coverage is that the injury or damage must occur during the policy period. Over the years, ISO standard language has evolved to exclude injury or damage if an insured or certain persons knew that it had occurred before the policy period. Additionally, injury or damage is deemed to have been known to have occurred under certain circumstances.
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Eric M. Clarkson, Saxe Doernberger & VitaMr. Clarkson may be contacted at
EClarkson@sdvlaw.com
How the New Dropped Object Standard Is Changing Jobsite Safety
January 02, 2019 —
Derek Rose - Construction ExecutiveIn the United States, a dropped object injures a worker every 11 minutes—equating to nearly 50,000 cases every year. For those who seek medical treatment for these types of injuries, it can cost an average of $42,000. In fact, 5 percent of all fatalities on jobsites are due to falling objects, according to the Bureau of Labor Statistics.
These statistics highlight the overwhelming importance of dropped object prevention. OSHA already identifies dropped object incidents under the category of “Struck by Object” in its widely recognized “Fatal Four” list of the four leading causes of fatalities in the construction industry.
Reprinted courtesy of
Derek Rose, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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