CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Unlicensed Contractors Nabbed in Sting Operation

September 09, 2011 — CDJ STAFF

The California State License Board charged sixteen people in the Fresno area with accepting contracting jobs without licenses. The Statewide Investigative Fraud Team of the CSLB set up a sting operation at a home in Clovis, California seeking bids on tree service, painting, and general contracting services. Those who bid for jobs at more than $500 are required under California law to be licensed. Unlicensed contractors can only work on jobs with a cost to the homeowner of less than $500 and must inform the homeowner that they are not licensed.

In addition to citing contractors for not possessing appropriate licenses, the CSLB also cited contractors for failure to carry workers compensation insurance and illegal advertising. Further, California law limits down payments to the lesser of ten percent or $1,000. Two contractors were cited for requesting excessive down payments.

One contractor, an unlicensed tree service contractor, had been cited previously in a sting operation. He failed to show up for his court date.

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Insurer Not Required to Show Prejudice from an Insured’s Late Notice When the Parties Contract for a Specific Reporting Period

September 09, 2019 — Christopher Raney - Gordon & Rees Insurance Coverage Law Blog
The Fifth Circuit Court of Appeals recently affirmed an order granting summary judgment in favor of the Firm’s insurer client on an issue of first impression in Texas. The issue before the trial court was whether, under Texas law, an insurer is required to demonstrate prejudice resulting from an insured’s failure to comply with an agreed term set in an endorsement to the parties’ insurance contract establishing a specific time limit for an insured to give the insurer notice of a claim. The case involved alleged damage to an insured’s commercial property from a hailstorm. The insured did not report the alleged loss to its insurer until approximately 17 months after the date of loss. The insurer denied the claim based on a one-year notice requirement in a policy endorsement. The Texas Windstorm or Hail Loss Conditions Amendment Endorsement stated that:

In addition to your obligation to provide us with prompt notice of loss or damage, with respect to any claim where notice of the claim is reported to us more than one year after the reported date of loss or damage, this policy shall not provide coverage for such claims.

The insured sued the insurer in Houston federal court, alleging causes of action for breach of contract and violations of the Texas Insurance Code. The insured argued the insurer was required to show prejudice from the insured’s late notice; the insurer argued that a showing of prejudice was not required. The trial court recognized that this issue had not been decided by the Texas Supreme Court of the Fifth Circuit Court of Appeals. Read the court decision
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Reprinted courtesy of Christopher Raney, Gordon & Rees Scully Mansukhani
Mr. Raney may be contacted at craney@grsm.com

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Ontario Court of Appeal Clarifies the Meaning of "Living in the Same Household" for Purposes of Coverage Under a Homeowners Policy

April 10, 2019 — Stella Szantova Giordano - Saxe Doernberger & Vita, P.C.
As all insurance coverage attorneys know, how courts interpret certain words and phrases in insurance policies is significant since one word can make the difference between a claim being covered or not. On January 28, 2019, the Court of Appeal for Ontario, in the Ferro v. Weiner1 decision, clarified the jurisprudence on the meaning of “living in the same household” in the context of homeowners policies. Background Facts Ms. Enid Weiner owned a lakeside home which was insured under a homeowners policy through Intact Insurance Company (the “Intact Policy”). The Policy listed only Enid Weiner as the Named Insured, but provided coverage to her relatives “while living in the same household” for liability for unintentional bodily injury arising from an insured’s “personal actions anywhere in the world.” Although the lake house was used as a vacation home when Ms. Weiner’s children were small, it was her primary residence for about ten years before she moved into a nursing home. While she never permanently moved back, her three grown children and their families used the house as a cottage, with Enid occasionally accompanying them. Read the court decision
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Reprinted courtesy of Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.
Ms. Giordano may be contacted at ssg@sdvlaw.com

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Margins May Shrink for Home Builders

November 06, 2013 — CDJ STAFF
Home builders are worried that the rising prices of new homes might not rise enough and be caught by the rising costs of building them, cutting into the profit margin. “If builders say the trajectory of margins is beginning to peak, then in a cyclical business, people tend to go from thinking the best to thinking the worst,” Stephen Kim, a Barclays analyst told the Wall Street Journal. As of the end of October, the U.S. Home Construction Index was 21% below its highest point in 2013, set back in May. Margins are still over those of last year. Meritage Homes saw a gross margin of 22.8% in 2013’s third quarter, when the same quarter in 2012 had a gross margin of 18.6%. Steven Hilton, the firm’s Chairman and CEO, predicted little or no growth and a decline toward 20% or 21%. On the other hand, with margins at 20.6%, Ryland Homes sees itself at a normal point. Larry Nicholson, the President and CEO of Ryland, said “there’s not a lot of room for it to grow.” Read the court decision
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The Court of Appeals Holds That Indifference to Safety Satisfies the Standard for a Willful Violation Under WISHA

May 16, 2022 — Cameron Sheldon - Ahlers Cressman & Sleight PLLC
In March 2022, the Washington State Court of Appeals, Division One, issued Marpac Constr., LLC v. Dep’t of Lab. & Indus., No. 82200-4-I, 2022 WL 896850, at *1 (Wash. Ct. App. Mar. 28, 2022) holding Marpac Construction, LLC (“Marpac”) liable for three willful Washington Industrial Safety and Health Act of 1973 (WISHA) violations pertaining to safe crane operation near energized power lines. Marpac was the general contractor on an apartment complex construction project in West Seattle. The worksite had high voltage power lines running throughout the site. Seattle City Light had flagged some with a 10-foot offset, but none of the other power lines were flagged. Marpac’s superintendent assumed that the lines were between 26 kilovolts (kV) and 50 kV based on their connection to the lines flagged by Seattle City Light. The superintendent never called Seattle City Light to check the voltage of the lines and the lines remained above ground. In September 2016, a subcontractor began work on the project’s structural foundation. The subcontractor expressed concerns about working around the power lines, but Marpac promised it was working on mitigation of the power line hazard and directed the subcontractor continue working. At one point, the subcontractor’s employees had to move the crane and concrete forms away from the power lines to allow a cement truck to park in its place. The crane’s line contacted the power lines, causing serious injuries to two of the subcontractor’s employees. Read the court decision
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Reprinted courtesy of Cameron Sheldon, Ahlers Cressman & Sleight PLLC
Ms. Sheldon may be contacted at cameron.sheldon@acslawyers.com

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Canada Home Resales Post First Fall in Eight Months

October 15, 2014 — Greg Quinn – Bloomberg
Canadian existing home sales fell from a four-year high in September (TNBHICY%), the first decline in eight months, led by Calgary and Edmonton in oil-rich Alberta. Sales fell 1.4 percent to 41,666 units, the Canadian Real Estate Association said today from Ottawa. From a year earlier sales rose 10.6 percent and the average price climbed 5.9 percent to C$408,795 ($362,100). The decline came in part because of a shortage of “affordably priced single family homes,” Beth Crosbie, CREA President, said in the report. Read the court decision
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Reprinted courtesy of Greg Quinn, Bloomberg
Mr. Quinn may be contacted at gquinn1@bloomberg.net

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Washington Court Limits Lien Rights of Construction Managers

August 17, 2011 — Douglas Reiser, Builders Council Blog

A newly filed, yet unpublished, court opinion opines that a construction manager cannot file a construction lien in Washington state. So, how far reaching is this opinion?



In the case of Blue Diamond Group Inc. v. KB Seattle 1, Inc., et al, a New York construction manager filed a lien against the Westfield Southcenter Mall in Tukwila, Washington. The lien was filed after the owner of a coffee stand failed to pay Blue Diamond for consulting services used in the construction of a kiosk.



Blue Diamond served as the owner’s agent, assisting with managing subcontractors, vendors and other tasks. The manager’s tasks also included paying invoices, managing deliveries, setting schedules and other site managerial tasks. Blue Diamond was not registered as a contractor under Washington’s RCW 18.27.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Litigation Privilege Saves the Day for Mechanic’s Liens

November 23, 2020 — Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & Bonesteel
In RGC Gaslamp v. Ehmcke Sheet Metal Co., the Fourth Appellate District held that a trial court properly granted an anti-SLAPP motion because the recording of a mechanic’s lien is protected by the litigation privilege. In RGC Gaslamp, subcontractor Ehmcke Sheet Metal Company (“Ehmcke”) recorded a mechanic’s lien to recoup payment due for sheet metal fabrication and installation done at a luxury hotel project in downtown San Diego. Project owner RGC Gaslamp, LLC (“RGC”) recorded a release bond for the lien. Thereafter, Ehmcke recorded three successive mechanic’s liens identical to the first, prompting RGC to sue it for quiet title, slander of title, and declaratory and injunctive relief. After retaining California counsel, Ehmcke then released its liens and advised it did not intend to record any more. Ehmcke then filed a special motion to strike under the anti-SLAPP statute (Code Civ. Proc. § 425.16.) which was granted. Reprinted courtesy of Stephen M. Tye, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Mr. Tye may be contacted at stye@hbblaw.com Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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