Housing Inflation Begins to Rise
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Kathleen Madigan writing for The Wall Street Journal, “inflation remains muted at the start of 2014” except in one category: housing. Madigan stated that housing costs were “worth watching.”
The “owners’ equivalent rent index had been rising at a steady pace through most of 2012 and 2013, with 12-month percent changes hovering around 2%” however, “the pace picked up” at the end of last year.
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Southern California Super Lawyers Recognizes Four Snell & Wilmer Attorneys As Rising Stars
July 15, 2019 —
Snell & WilmerSnell & Wilmer is pleased to announce that four attorneys in the Orange County and Los Angeles offices have been selected for inclusion in the 2019 Southern California Rising Stars list.
Steffi Gascón Hafen,
Estate Planning and Probate
Hafen is a Certified Specialist in Estate Planning, Trust and Probate Law, California Board of Legal Specialization. Her practice is concentrated in tax, trust, and estate matters with emphasis in estate planning, trust and probate administration, and estate and gift taxation.
Irina Ling,
Tax
Ling's practice is concentrated in estate planning and taxation matters. She has experience assisting clients with all aspects of estate and tax planning, including advising clients on various charitable giving devices and business succession. Irina also assists clients with estate and gift tax issues, property tax issues, and probate and trust administration.
Joshua Schneiderman,
Mergers and Acquisitions
Schneiderman advises clients on a wide range of transactional matters, including mergers and acquisitions, joint ventures and public and private offerings of debt and equity securities. He advises clients on matters related to franchising, including the establishment of new franchise systems and the expansion of existing franchise systems nationally and internationally.
Jeffrey Singletary,
Business Litigation
Singletary concentrates his practice on business litigation in state and federal courts. He represents clients in matters involving breach of contract, business competition torts, real estate, public and private construction projects, and various intellectual property litigation matters, including trademark, trade dress, trade secret and patent claims.
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California Pipeline Disaster Brings More Scandal for PG&E
September 17, 2014 —
Mark Chediak – BloombergA deadly pipeline explosion that shattered a California town four years ago continues to rip through the state agency weighing a record penalty for the disaster.
The president of the California Public Utilities Commission asked his chief of staff to resign and recused himself from the case after “inappropriate e-mail exchanges” with PG&E Corp. (PCG) raised questions about bias, according to a statement from the commission yesterday. The CPUC may decide within weeks whether to levy a proposed $1.4 billion penalty -- the biggest safety fine in the state’s history -- against PG&E for the 2010 explosion of a natural gas pipeline that killed eight people in San Bruno.
Commission President Michael Peevey, who has been accused by San Bruno officials and consumer advocates of being too close to the utility, said in the statement he would not take part in penalty deliberations to eliminate any appearance of impropriety. The move is a step toward regaining credibility for the CPUC after two years of political infighting has created an ongoing climate of scandal.
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Mark Chediak, BloombergMr. Chediak may be contacted at
mchediak@bloomberg.net
Gillotti v. Stewart (2017) 2017 WL 1488711 Rejects Liberty Mutual, Holding Once Again that the Right to Repair Act is the Exclusive Remedy for Construction Defect Claims
June 05, 2017 —
Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. - Chapman Glucksman Dean Roeb & Barger BulletinBackground
In Gillotti v. Stewart (April 26, 2017) 2017 WL 1488711, which was ordered to be published on May 18, 2017, the defendant grading subcontractor added soil over tree roots to level the driveway on the plaintiff homeowner’s sloped lot. The homeowner sued the grading subcontractor under the California Right to Repair Act (Civil Code §§ 895, et seq.) claiming that the subcontractor’s work damaged the trees.
After the jury found the subcontractor was not negligent, the trial court entered judgment in favor of the subcontractor. The homeowner appealed, arguing that the trial court improperly construed the Right to Repair Act as barring a common law negligence theory against the subcontractor and erred in failing to follow Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98. The Third District Court of Appeal disagreed and affirmed the trial court’s judgment in favor of the subcontractor.
Impact
This is the second time the Third District Court of Appeal has held that Liberty Mutual (discussed below) was wrongly decided and held that the Right to Repair Act is the exclusive remedy for construction defect claims. The decision follows its holding in Elliott Homes, Inc. v. Superior Court (Hicks) (2016) 6 Cal.App.5th 333, in which the Court of Appeal held that the Right to Repair Act’s pre-litigation procedures apply when homeowners plead construction defect claims based on common law causes of action, as opposed to violations of the building standards set forth in the Right to Repair Act. Elliott is currently on hold at the California Supreme Court, pending the decision in McMillin Albany, LLC v. Superior Court (2015) 239 Cal.App.4th 1132, wherein Liberty Mutual was rejected for the first time by the Fifth District. CGDRB continues to follow developments regarding the much anticipated McMillin decision closely, as well as all related matters.
Discussion
The Right to Repair Act makes contractors and subcontractors not involved in home sales liable for construction defects only if the homeowner proves they negligently cause the violation in whole or part (Civil Code §§ 911(b), 936). As such, the trial court in Gillotti instructed the jury on negligence with respect to the grading subcontractor. The jury found that while the construction did violate some of the Right to Repair’s building standards alleged by the homeowner, the subcontractor was not negligent in anyway. After the jury verdict, the trial court found in favor of the grading subcontractor.
The homeowner moved for a judgment notwithstanding the verdict or a new trial on the grounds that the trial court improperly barred a common law negligence theory against the grading subcontractor. The trial court denied the motions on the grounds that “[t]he Right to Repair Act specifically provides that no other causes of action are allowed. See Civil Code § 943.” The trial court specifically noted that its decision conflicted with Liberty Mutual, in which the Fourth District Court of Appeal held that the Right to Repair Act does not eliminate common law rights and remedies where actual damage has occurred, stating that Liberty Mutual was wrongly decided and that the Liberty Mutual court was naïve in its assumptions regarding the legislative history of the Right to Repair Act.
In Gillotti, the Third District Court of Appeal stated that the Liberty Mutual court failed to analyze the language of Civil Code § 896, which “clearly and unequivocally expresses the legislative intent that the Act apply to all action seeking recovery of damages arising out of, or related to deficiencies in, residential construction, except as specifically set forth in the Act. The Act does not specifically except actions arising from actual damages. To the contrary, it authorizes recovery of damages, e.g., for ‘the reasonable cost of repairing and rectifying any damages resulting from the failure of the home to meet the standards....’ ([Civil Code] § 944).”
The Court also disagreed with Liberty Mutual’s view that because Civil Code §§ 931 and 943 acknowledge exceptions to the Right to Repair Act’s statutory remedies, the Act does not preclude common law claims for damages due to defects identified in the Act. The Court stated: “Neither list of exceptions, in section 943 or in section 931, includes common law causes of action such as negligence. If the Legislature had intended to make such a wide-ranging exception to the restrictive language of the first sentence of section 943, we would have expected it to do so expressly.”
Additionally, the Court of Appeal rejected the argument that Civil Code § 897 preserves a common law negligence claims for violation of standards not listed in Civil Code § 986. It explained that the section of Civil Code § 897, which provides, “The standards set forth in this chapter are intended to address every function or component of a structure,” expresses the legislative intent that the Right to Repair Act be all-encompassing. Anything inadvertently omitted is actionable under the Act if it causes damage. Any exceptions to the Act are made expressly through Civil Code §§ 931 and 934. The Court concluded in no uncertain terms that the Right to Repair Act precludes common law claims in cases for damages covered by the Act.
The homeowner further argued that she was not precluded from bringing a common law claim because a tree is not a “structure,” and therefore the alleged tree damage did not fall within the realm of the Right to Repair. The Court of Appeal also rejected this argument, holding that while the tree damage itself was not expressly covered, the act of adding soil to make the driveway level (which caused the damage) implicated the standards covered by the Right to Repair Act. The Court explained that since under the Act a “structure” includes “improvement located upon a lot or within a common area” (Civil Code § 895(a)), as the driveway was an improvement upon the lot, the claim was within the purview of the Right to Repair Act. As the soil, a component of the driveway, caused damage (to the trees), it was actionable under the Act.
Reprinted courtesy of
Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger
Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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Bank Window Lawsuit Settles Quietly
October 02, 2013 —
CDJ STAFFThe Federal Reserve Bank of St. Louis has filed a motion to dismiss its breach of contract lawsuit over the windows McCarthy Building installed in the bank’s building. The bank alleged that the 498 windows were defective and needed to be replaced at a cost of about $1.5 million.
But on September 11, the bank acted to dismiss the suit following a settlement with the defendants. The terms of the settlement was not disclosed. All parties will be covering their own legal costs.
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Cable-Free Elevators Will Soar to New Heights, and Move Sideways
January 14, 2015 —
Belinda Lanks – BloombergI live in one of the few buildings in New York that still has a manual elevator. When I ask the operator on the morning shift how he's doing, his well-oiled response is "up and down." For the last 160 years, elevators have travelled a predictably vertical path. That will soon change when the German manufacturer ThyssenKrupp introduces the first fleet of cable-free cars that can also move sideways.
The system, dubbed MULTI, will allow multiple cabs to motor along a single, looping shaft. The cars move by magnetic levitation (the same technology behind some high-speed trains), rather than being pulled by the heavy steel ropes that limit how high skyscrapers can stretch. With MULTI, architects will be able to build spindly towers on small plots formerly deemed untenable for high-rises.
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Belinda Lanks, BloombergMs. Lanks may be contacted at
blanks@bloomberg.net
Lawsuits over Roof Dropped
December 04, 2013 —
CDJ STAFFAn Iowa roofing contractor has dropped its lawsuit over a contract to re-roof a condominium complex. The condominium association has dropped its counterclaim against the roofer. Hansel Construction alleged that the Harbourage Owners Association failed to fulfill the contract’s provisions, which prevented Hansel Construction from fulfilling its contract. Further, Hansel alleged that it had expenses, losses, and damages, as a result of Harbourage’s actions.
In response, Harbourage sued James Hansel. Now, both lawsuits have been dismissed by the parties.
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Putting for a Cure: Don’t Forget to Visit BHA’s Booth at WCC to Support Charity
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFBert L. Howe & Associates, Inc., (BHA) is excited to announce the return of their very popular
Sink a Putt for Charity at the 2016
West Coast Casualty Construction Defect Seminar. This year, participant’s efforts
on the green will help benefit the Susan G. Komen Race for the Cure. As in years past, sink a putt in the BHA golf challenge and win a $25 gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to the Susan G. Komen Foundation.
But it doesn’t stop there. Breast cancer touches so many lives, with wives, mothers, sisters, aunts, cousins and daughters all affected by this insidious disease. To further assist in their noble fight, BHA is doubling down. During three Championship Rounds on Thursday morning, afternoon, and evening, BHA will up the ante. For every putt ATTEMPTED (sink or miss), BHA will make a $50 donation to Susan G. Komen, and for every putt MADE, the golfer will also win a $50 gift card.
These Championship Rounds will occur during the Thursday morning break, the afternoon break, and during the first hour of the Thursday evening cocktail party. Bert L. Howe & Associates, Inc., strongly supports the goals and principles of the Susan G. Komen Race for the Cure, and is honored to assist in fulfilling its mission of supporting research, community health, global outreach and public policy initiatives.
While at the booth, don’t forget to test out BHA’s industry leading data collection and inspection analysis systems. BHA has recently added video overviews to their data collection process, 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.
Attendees can also enter to win Dodger baseball tickets or one of three new iPad Pros! Other BHA giveaways include USB charging blocks, pocket tape measures, multi-tools, laser pointers, foam stress balls, and Callaway golf balls.
For more information on the Susan G. Komen Foundation, please visit their
website.
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