Call Me Maybe? . . . Don’t Waive Your Rights Under the Right to Repair Act’s Prelitigation Procedures
March 22, 2017 —
Garret Murai – California Construction Law BlogWe’ve written before about the Right to Repair Act (Civil Code Sections 895 et seq.). The Act, also commonly known as SB 800 after the bill that established it, applies to newly constructed residential units including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Attorney Risks Disqualification If After Receiving Presumptively Privileged Communication Fails to Notify Privilege Holder and Uses Document Pending Privilege Determination by Court
May 03, 2017 —
David W. Evans & Stephen J. Squillario - Haight Brown & Bonesteel LLPIn McDermott Will & Emery LLP v. Superior Court (4/18/2017 – No. G053623), the Fourth Appellate District, in a 2-1 decision, considered two distinct issues: 1. Whether the attorney-client privilege for a confidential e-mail communication between a client and his attorney had been waived by the client’s inadvertent disclosure of the communication to a third party; and 2. Whether the opposing counsel’s failure to respect the claimed privilege as to the inadvertently produced document or to follow the rules for handling such documents set forth in State Compensation Ins. Fund v WPS, Inc. (1999) 70 Cal.App.4th 644 (State Fund) supported the trial court’s disqualification of counsel and his law firm.
This case arose from an intra-family dispute over the deceased matriarch’s substantial investment holdings, a related probate matter, and two subsequent legal malpractice actions. The opinion sets forth in great detail the facts surrounding the claimed inadvertent disclosure by the client (i.e., the privilege holder) of the subject attorney-client e-mail communication, its subsequent dissemination to, and use by, the client’s family members, the ultimate receipt and review by an opposing family member’s counsel, the efforts by the client’s counsel to assert the privilege and “claw-back” the document, and in the face of this privilege claim, the opposing counsel’s extensive use of the document during discovery, including depositions, in the legal malpractice actions. The opposing counsel, who had received the subject document from his own client, had independently concluded that the clearly privileged document lost its privileged status, believing that the privilege had been waived either because of disclosure to third parties or that his obligation to return inadvertently disclosed documents only applied to those produced in litigation during discovery. As a result, the opposing counsel refused all demands for the return or destruction of the document and insisted upon continuing to use it. This dispute finally came to a head over two years after the client’s disclosure in the context of the client’s motion for a judicial determination that the document was privileged (which the trial court granted) and then a motion to disqualify the opposing counsel (which the trial court also granted); both decisions were eventually reviewed by the appellate court.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Stephen J. Squillario, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Mr. Squillario may be contacted at ssquillario@hbblaw.com
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Candis Jones Named to Atlanta Magazine’s 2023 “Atlanta 500” List
February 01, 2023 —
Candis Jones - Lewis Brisbois NewsroomAtlanta, Ga. (January 30, 2023) - Atlanta Partner Candis R. Jones has been named to Atlanta Magazine’s 2023 “Atlanta 500” list of the most powerful law professionals in Atlanta. This is the third year in a row she has received this recognition.
To compile this list, the publication reviewed nominations from the public and consulted experts across various sectors. The magazine’s editors and writers considered not only the status of the nominees within their respective organizations, but also whether the nominees were visionaries who led programs for their communities and created opportunities for employees. According to Atlanta Magazine, this year's nominees displayed an "intensified commitment to inclusiveness."
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners
August 10, 2017 —
Garret Murai - California Construction Law BlogEarlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895 et seq.) which applies to construction defects in newly constructed residential properties including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003.
The California Court of Appeals for the Fourth District, in Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, held that the Right to Repair Act does not provide the exclusive remedy when pursing claims for construction defects involving “actual” property damage (e.g., a defectively constructed roof causing actual physical damage due to water intrusion as opposed to a defectively constructed roof that while constructed improperly does not cause actual physical damage). However, the California Court of Appeals for the Fifth District, in McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132, which is currently pending before the California Supreme Court, held that the Right to Repair Act does in fact provide the exclusive remedy when pursuing claims for construction defects whether they involve “actual” property damage or merely “economic” damages. For homeowners, they would prefer the option of pursuing remedies under either or both the Right to Repair Act (which includes detailed pre-litigation procedures and statutory construction standards) or under common law claims such as negligence (which do not include pre-litigation procedures and have more flexible standards of care).
The California Court of Appeals for the Third District has now thrown its hat into the ring . . . on the side of McMillan.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Construction Contract Basics: Indemnity
October 30, 2023 —
Christopher G. Hill - Construction Law MusingsI’m back after a welcome
change of offices from a Regus location to a separate and more customer-friendly
local shared office space location. I thought I’d jump back into posting with a series of construction contract-related posts, the first of which relates to indemnification clauses.
An indemnification clause in a contract obligates one party (the Indemnitor) to take on liability (read pay for) any damages to another party (the Indemnitee) under certain circumstances. In a construction context, this type of arrangement can arise in a
bonding context with a general indemnity obligation to the surety among other contexts outside of the four corners of any prime or subcontract. I will not be discussing those other contexts and will focus on the typical indemnity clause found in most if not all, construction contracts. These clauses most often state that the “downstream” party is to indemnify all of the upstream parties for any and all damages incurred by the indemnitees due to any action of the downstream party, its employees, subcontractors, sub-subcontractors, etc. The clauses are often not limited in scope and generally include attorney fee provisions and generally require indemnity for breaches of contract by their terms.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Top Five Legal Mistakes in Construction
April 04, 2022 —
Jonathan A. Cass, Nicholas F. Morello & John A. Greenhall - Construction ExecutiveMany contractors repeatedly make the same mistakes in negotiating contracts. Here are the most common mistakes contractors make—and how they can be avoided.
1. Not Being Careful With Force Majeure Clauses
To protect themselves from liability in the event of unforeseen circumstances like fires, floods, wars, unusual delays in deliveries, strikes, pandemics or acts of God, contractors should ensure their contracts contain robust force majeure provisions. These provisions state that in the event of any extenuating circumstances outside of its control, the contractor is not liable for any damages that result from a delay to the project completion date and is entitled to a time extension. This clause has been critical in addressing COVID-19-related disruptions and the current material shortages. Contractors should be wary, however, of “no damage-for-delay” language, which often appears in conjunction with these clauses.
Reprinted courtesy of
Jonathan A. Cass, Nicholas F. Morello and John A. Greenhall, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Cass may be contacted at jcass@cohenseglias.com
Mr. Greenhall may be contacted at jgreenhall@cohenseglias.com
Mr. Morello may be contacted at nmorello@cohenseglias.com
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Construction Spending Drops in March
May 10, 2013 —
CDJ STAFFReuters reports that construction spending dropped by 1.7 percent in March, bringing it to the lowest level since August, more than wiping out February’s increase of 1.5 percent. Economists had predicted a mild gain of 0.7 percent. Spending fell due to a 4.1 percent drop in public construction projects, bringing it to its lowest in six and a half years.
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Developer Pre-Conditions in CC&Rs Limiting Ability of HOA to Make Construction Defect Claims, Found Unenforceable
August 16, 2021 —
Garret Murai - California Construction Law BlogThe Davis-Stirling Common Interest Development Act (Civ. Code §4000, et seq.), also known simply as “Davis-Stirling,” is a statute that applies to condominium, cooperative and planned unit development communities in California. The statute, which governs the formation and management of homeowners associations or HOAs, also governs lawsuits filed by HOAs for construction defects.
In the next case,
Smart Corners Owner Association v. CJUF Smart Corner LLC, Case No. D076775 (May 20, 2021), the 4th District Court of Appeal addressed the pre-litigation voting requirements of Davis-Stirling and the impact of recent amendments to the Act.
The Smart Corners Case
In 2004, CJUF Smart Corner LLC contracted with Hensel Phelps Construction Company for the construction of the Smart Corner condominium project, a 19-story mixed-use development with 301 residential units and common areas, in San Diego, California. As part of the development an HOA was formed, the Smart Corner Owner Association.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com