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Do We Really Want Courts Deciding if Our Construction Contracts are Fair?

March 19, 2015 — Christopher G. Hill – Construction Law Musings
As I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, a bill that would essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and material suppliers. It does not apply to General Contractors, but it is a step in what many (including those attorneys that represent subcontractors and suppliers) believe is the right direction. Of course, as soon as I posted last week, my friend and colleague Scott Wolfe (@scottwolfejr) commented on that post and then gave his two cents worth at his Zlien blog. The gist of the comments here at Musings and the post over at his blog was essentially that these contractual provisions were inherently unfair and therefore should be abolished because of both a relative disparity in leverage between the Owner or GC and the Subcontractor when it comes to negotiations and the fact that subcontractors often don’t read their contracts or discuss them with a construction attorney prior to signing them. I hear this first of his arguments often when I am reviewing a contract after the fact and a client or potential client acts surprised that a provision will be enforced and the courts of the Commonwealth of Virginia will actually enforce them. As to Scott’s second reason, I have always warned here at Musings that you should read your contracts carefully because they will be the law of your business relationship in the future. The first of his two points is more interesting and in some ways more easily supported. However, where we are speaking of contracts between businesses where both sides are bound by the terms of the contract, it begs the question of whether in seeking to make contracts more “fair” we could add a layer of uncertainty that could cause more problems than it solves. Do we really want courts stepping in after the fact to renegotiate the terms of a deal that was struck months or possibly years before because one judge believes that the deal was too one sided? Do we really need such “Monday morning quarterbacking?” Is one person’s idea of “fair” better than another’s when both parties to the contract had the full ability to read, negotiate and possibly reject the deal long ago? Personally, I think that the answer to these questions is, in all but the most egregious cases or where the legislatures have stepped in adding certainty (whether to the good or bad), “No.” Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Partner Denis Moriarty and Of Counsel William Baumgaertner Listed in The Best Lawyers in America© 2017

September 08, 2016 — Haight Brown & Bonesteel LLP
Partner Denis Moriarty and Of Counsel William Baumgaertner were selected by their peers for inclusion in The Best Lawyers in America© 2017. This marks the fifth consecutive year Mr. Moriarty has been listed for his work in insurance law, and this marks the eleventh year Mr. Baumgaertner has been listed for his defendants’ and plaintiffs’ work in personal injury and product liability litigation. Read the court decision
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California Team Secures Appellate Victory on Behalf of Celebrity Comedian Kathy Griffin in Dispute with Bel Air Neighbor

August 04, 2021 — Jeffry Miller, Wendy Dowse, Dana Fox & Michael Moss - Lewis Brisbois
San Diego Appellate Partner Jeffry A. Miller, Indian Wells Appellate Partner Wendy S. Dowse, and Los Angeles Partners Dana Alden Fox and Michael Moss recently prevailed in an appeal from a judgment entered after the trial court granted Lewis Brisbois clients Kathy Griffin and Randy Bick, Jr.’s motion for summary adjudication of the plaintiffs’ causes of action for invasion of privacy and violation of California Penal Code section 632, which prohibits recording confidential communications. As reported by Law360 in an article titled "Kathy Griffin Beats Calif. Neighbors' Backyard Spying Suit," and in a Bloomberg Law article titled "Comedian Kathy Griffin Beats Neighbor’s Invasion of Privacy Suit," the plaintiffs initially filed suit against Griffin and Bick, Jr. in 2018, alleging that their home security cameras recorded “every move and every communication” in the plaintiffs’ private backyard. They argued that the defendants' use of the security system invaded their privacy and violated California law. Prior to the lawsuit, Griffin and Bick, Jr. had made noise complaints about the plaintiffs to their homeowners' association and to the Los Angeles Police Department. The plaintiffs learned of the defendants' security cameras after a profane rant directed at the defendants and related to their noise complaint was recorded and reported in the media. Reprinted courtesy of Jeffry Miller, Lewis Brisbois, Wendy Dowse, Lewis Brisbois, Dana Fox, Lewis Brisbois and Michael Moss, Lewis Brisbois Mr. Miller may be contacted at Jeff.Miller@lewisbrisbois.com Ms. Dowse may be contacted at Wendy.Dowse@lewisbrisbois.com Mr. Fox may be contacted at Dana.Fox@lewisbrisbois.com Mr. Moss may be contacted at Michael.Moss@lewisbrisbois.com Read the court decision
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Haight’s Stevie Baris Selected for Super Lawyers’ 2021 Northern California Rising Stars

July 19, 2021 — Stevie B. Baris - Haight Brown & Bonesteel LLP
Congratulations to Stevie Baris who was selected to the Super Lawyers 2021 Northern California Rising Stars list. Each year, no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor. Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys. Read the court decision
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Reprinted courtesy of Stevie B. Baris, Haight Brown & Bonesteel LLP
Mr. Baris may be contacted at sbaris@hbblaw.com

The Requirement to State a “Sum Certain” No Longer a Jurisdictional Bar to Government Contract Claims

November 13, 2023 — Marcos R. Gonzalez - ConsensusDocs
The Boards of Contract Appeals, Court of Federal Claims, and the Federal Circuit have long held that the elements of a claim under the Contract Disputes Act (“CDA”) to be jurisdictional. Those requirements are as follows: (a) Claims generally.– (1) Submission of contractor’s claims to contracting officer.–Each claim by a contractor against the Federal Government relating to a contract shall be submitted to the contracting officer for a decision. (2) Contractor’s claims in writing.—Each claim by a contractor against the Federal Government relating to a contract shall be in writing. (3) Contracting officer to decide Federal Government’s claims.–Each claim by the Federal Government against a contractor relating to a contract shall be the subject of a written decision by the contracting officer. Read the court decision
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Reprinted courtesy of Marcos R. Gonzalez, Peckar & Abramson, P.C.
Mr. Gonzalez may be contacted at mgonzalez@pecklaw.com

Building on New Risks: Construction in the Age of Greening

February 20, 2023 — Blanca Berruguete - Construction Executive
Fire and explosions remain the No. 1 cause of construction and engineering insurance claims, accounting for 27% of the value of insurance claims over the last five years, according to industry claims data analysis conducted by global commercial insurer AGCS. Natural catastrophes, such as hurricanes or floods, account for almost a fifth of claims by value (19%), followed by defective products (10%). Faulty workmanship or maintenance (8%) and machinery breakdown (7%) round out the top five causes of construction and engineering losses, according to the value of claims. The Risks and Benefits of Greening The analysis was conducted on 22,705 insurance claims made worldwide between January 2017 and December 2021. The claims were worth approximately $13.9 billion in value and include the share of other insurers as well as AGCS. But if there is an impression that the risks remain in stasis, that is not the case. Reprinted courtesy of Blanca Berruguete, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Property Owner’s Defense Goes Up in Smoke in Careless Smoking Case

September 23, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
Property owners owe a duty of reasonable care to avoid causing harm to neighboring properties. When a property owner knows or should know about a condition that poses a risk of danger to neighboring properties, the property owner must exercise reasonable care to make the condition safe. The Court of Special Appeals of Maryland recently held that, where hundreds of discarded cigarette butts had accumulated in a bed of mulch over an extended period of time prior to the fire at issue, the owner of the property with the mulch beds owed a duty of care to its neighbors to prevent a foreseeable fire. In Steamfitters Local Union No. 602 v. Erie Insurance Exchange, 2019 Md. App. LEXIS 430 (May 30, 2019), a fire originated in a strip of mulch at property owned by the Steamfitters Local Union No. 602 (Union) and caused damage to neighboring properties. The fire occurred when an unknown person discarded a cigarette butt into the mulch. Following the fire, investigators found “hundreds, if not thousands of cigarettes” in the mulch where the fire originated. A representative for the Union acknowledged that there were more butts in the mulch “than there should have been” and that, “[i]n the right situation,” a carelessly discarded cigarette could cause a fire. The Union, however, had no rules or signs to prohibit or regulate smoking at the property, where apprentices would often gather prior to class. The insurance companies for the damaged neighbors filed subrogation actions alleging that the Union, as the property owner, failed to use reasonable care to prevent a foreseeable fire. A jury found in favor of the subrogating insurers and against the Union. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

2019 California Construction Law Update

January 15, 2019 — Garret Murai - California Construction Law Blog
The California State Legislature introduced 2,637 bills during the second year fo the 2017-2018 Legislative Session. Of these, 1,016 were signed into law. It was last official bill signing for Governor Jerry Brown who ends not only his second term as Governor but a colorful political career spanning nearly 50 years during which he has dated pop stars, practiced Zen meditation, kicked it with radical ex-nuns and an Apollo astronaut and, at 80, has sparred regularly with President Trump on issues ranging from climate change to immigration to net neutrality. For those in the construction industry it wasn’t quite as exciting, unless of course you count SCR 120, which officially makes April “California Safe Digging Month.” Hooray! Each of the bills discussed below took effect on January 1, 2018, except as otherwise stated. Building Codes SB 721 – Requires the inspection of exterior elevated elements, including balconies, decks, porches, stairways, walkways, and elevated entry structures, of multifamily buildings with three or more dwelling units by an architect, engineer or contractor with a Class A, B or C-5 license by January 1, 2025 and by January 1st every six years thereafter. Elements posing an immediate threat to the safety of occupants, or which prevent occupant access or emergency repairs, are required to be repaired immediately. Elements not posing an immediate threat to the safety of occupants, or which do not prevent occupant access or emergency repairs, are required to be repaired within 180 days. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

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