Recent Developments with California’s Right to Repair Act
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFIn Lexology, Amy Kuo Alexander of Gordon Rees Scully Mansukhani, LLP analyzed recent decisions involving California’s Right to Repair Act, SB 800. According to Alexander, “SB 800, applies to all new residential construction sold after January 1, 2003” and “[i]t establishes a process to resolve certain construction defect claims prior to the filing of any lawsuit by a homeowner of new residential construction.”
Alexander’s three main discussion points include “SB 800 is Not the Exclusive Remedy,” “Notice Requirements to Builder Under SB 800,” and “Parties Can Opt Out of SB 800 to Adopt Their Own Prelitigation Procedure So Long as the Terms Are Not Unconscionable.”
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Dusseldorf Evacuates About 4,000 as World War II Bomb Defused
August 20, 2014 —
Dorothee Tschampa – BloombergEmergency services in the northern German city of Dusseldorf are preparing to evacuate more than 4,000 people, including residents of a retirement home, as work gets under way to disarm a World War II bomb discovered during construction work yesterday.
A further 15,000 people, living within a 1 kilometer (0.6 mile) radius of the site, are being asked to stay indoors and keep away from windows, authorities said in a press release published on its website. The disposal is scheduled for 4 p.m. Roads in the vicinity are expected to remain closed until at least 5 p.m.
The 500-kilogram (1,100 pound) U.S. aircraft bomb was unearthed on the site of the former Reitzenstein army barracks, which is being redeveloped as a residential area. It’s the fourth or fifth find since last year in the northeastern district of Moersenbroich, where new apartment buildings and houses are under construction, Tobias Schuelpen, a press spokesman for the local fire service, said by phone.
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Dorothee Tschampa, BloombergMs. Tschampa may be contacted at
dtschampa@bloomberg.net
Landmark San Diego Hotel Settles Defects Suit for $6.4 Million
March 04, 2011 —
Beverley BevenFlorezCDJ STAFFAfter five years of legal battles, the condo owners of the El Cortez Hotel building in downtown San Diego settled for $6.4 million, as reported by The San Diego Union-Tribune on March 28, 2011. The Homeowners Association will net just over $3 million from the settlement.
The litigation may have had an adverse effect on the value of the condos within the El Cortez Hotel building. According to an article by Kelly Bennett of Voice of San Diego, “Many condos in the building originally sold for more than $600,000. Currently, the three units on the market are asking for just more than $200,000, the U-T said.”
Andrew Berman, the owners’ attorney, told The San Diego Union-Tribune that the five years of litigation included six lawsuits, 200 depositions, and multiple construction tests.
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Umbrella Policy Must Drop Down to Assist with Defense
May 12, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe court determined that an umbrella carrier was obligated to assist the general liability insurer in defending the insured. Am. States Ins. Co. v. Insurance Company of the State of Pennsylvania, 2016 U.S. Dist LEXIS 38128 (E.D. Cal. March 23, 2016).
Sierra Pacific Industries obtained rights to timber harvesting operation on a parcel of land in northern California. Sierra hired Howell's Forest Harvesting to perform certain timber harvest operations under the terms of a logging agreement. The logging agreement required Howell to obtain a CGL policy and to name Sierra as an additional insured.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Is The Enforceability Of A No-Damage-For-Delay Provision Inappropriate For Summary Judgment
February 24, 2020 —
David Adelstein - Florida Construction Legal UpdatesIs the enforceability of a no-damage-for-delay provision inappropriate for resolution on a summary judgment? The recent decision in U.S. f/u/b/o Kingston Environmental Services, Inc. v. David Boland, Inc., 2019 WL 6178676 (D. Hawaii 2019), dealing with Florida law, suggests that it is inappropriate for a summary judgment resolution, particularly when there is a right to a jury trial.
In this case, a prime contractor was hired on a federal construction project in Hawaii. The prime contractor hired a subcontractor and the subcontractor sued the prime contractor and its surety under the Miller Act. Of interest, the subcontractor was seeking to recover for the costs it incurred due to construction delays. The prime contractor moved for summary judgment as to the no-damage-for-delay provision in the subcontract. The no-damages-for-delay provision read as follows (and it is a well-written no-damage-for-delay provision):
The Subcontractor expressly agrees that the Contractor shall not be liable to the Subcontractor for any damages or additional costs, whether foreseeable or unforeseeable, resulting in whole or in part from a delay, hindrance, suspension, or acceleration of the commencement or execution of the Work, caused in whole or in part by the acts or omissions, whether negligent or not, of the Contractor including other subcontractors or material suppliers to the Project, its agents, employees, or third parties acting on behalf of the Contractor. The Subcontractor’s sole remedy for any such delay, hindrance, suspension, or acceleration shall be a noncompensable time extension.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Your “Independent Contractor” Clause Just Got a Little Less Relevant
January 12, 2015 —
Garret Murai – California Construction Law BlogConstruction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon.
When subcontracting work, parties usually make it clear in their contracts that the party performing work is acting as an “independent contractor.” Here’s a fairly typical provision from the AIA A201 General Conditions:
The parties agree that the contractual relationship on Contractor to Owner is one solely of an independent contractor in all respects and that the Contract Documents do not in any way create a partnership, joint venture or any other relationship between Owner and Contractor other than the contractual relationship as specified in this Agreement.
These provisions are intended to shield the contracting party from claims that it is responsible for workers’ compensation premiums, retirement contributions, health care insurance, or other benefits provided for the benefit of employees of the company performing the work. Fair enough.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Dispute Over Amount Insured Owes Public Adjuster Resolved
January 14, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe court addressed a dispute over fees that the insureds allegedly owed the public adjuster. Public' Adjuster's, LLC v. Mark Gottesdiener & Co., et al., 2024 Conn. Super. LEXIS 2352 (Conn. Super. Ct. Nov. 6. 2024).
The insureds owned an apartment building that was substantially damaged by a fire. The building was insured by Quincy Mutual Group. The insureds signed a Public Adjuster Employment Contract with The Public's Adjuster, LLC (Adjuster). The contract authorized Adjuster to negotiate the reimbursable damages with Quincy on the insureds' behalf. Adjuster was to recover 8 1/2% of any amounts received by the insureds.
Because of the extent of the fire damage, the work of negotiating a settlement with Quincy proved to be complex. Adjuster meticulously prepared several detained written estimates to by submitted to Quincy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
In Texas, a General Contractor May be Liable in Tort to a Third-Party Lessee for Property Damage Caused by a Subcontractor’s Work
February 16, 2016 —
Michael L. DeBona – White and Williams LLPIn Zbranek Custom Homes, Ltd. v. Joe Allbaugh, et al., No. 03-14-00131-CV, 2015 WL 9436630 (Tex.App.-Austin Dec. 23, 2015), the Court of Appeals of Texas, Austin, considered the circumstances under which a general contractor can be held liable for injuries to a non-contracting party’s property. The court held that, because the general contractor, Zbranek Custom Homes, Ltd. (Zbranek), exercised control over the construction of the fireplace at issue, Zbranek owed a duty of care to the first lessees of the home that Zbranek built.
In Zbranek, Bella Cima Developments, L.P. (Bella Cima) hired Zbranek to act as the general contractor for the construction of a home. As the general contractor, Zbranek engaged various subcontractors to perform different aspects of the construction, including the framing, stucco and masonry work for an outdoor fireplace.
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Michael L. DeBona, White and Williams LLPMr. DeBona may be contacted at
debonam@whiteandwilliams.com