Serving Notice of Nonpayment Under Miller Act
January 20, 2020 —
David Adelstein - Florida Construction Legal UpdatesUnder the federal Miller Act, if a claimant is NOT in privity with the prime contractor, it needs to serve a “notice of nonpayment” within 90 days of its final furnishing. In this manner, 40 U.S.C. 3133 (b)(2) states:
A person having a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the contractor furnishing the payment bond may bring a civil action on the payment bond on giving written notice to the contractor within 90 days from the date on which the person did or performed the last of the labor or furnished or supplied the last of the material for which the claim is made. The action must state with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. The notice shall be served–
(A) by any means that provides written, third-party verification of delivery to the contractor at any place the contractor maintains an office or conducts business or at the contractor’s residence; or
(B) in any manner in which the United States marshal of the district in which the public improvement is situated by law may serve summons.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Hail Damage Requires Replacement of Even Undamaged Siding
February 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiIn a dispute over the property policy's requirement that lost or damaged property be repaired or replaced, the Minnesota Supreme Court held that the policy language called for replacement of undamaged siding panels to obtain a color match. Cedar Bluff Townhome Condominium Ass'n, Inc. v. Am. Family Mut. Ins. Co., 2014 Minn. LEXIS 661 (Minn. Dec. 17, 2014).
During a hail storm, all 20 of Cedar Bluff's buildings sustained some damage. The roofs on all of the buildings needed to be replaced, and at least one siding panel on each building sustained damage. Eleven of the 20 buildings had three or fewer damaged panels. At the time of the hail storm, the siding was approximately 11 years old, and the color of the panels had faded. Replacement panels were available, but not in the same color.
Cedar Bluff submitted a claim under its business owners' policy to American Family. The policy obligated the insurer to pay for "direct physical loss of or damage to Covered Property at the premises . . . caused by or resulting from any Covered Cause of Loss." "Covered Property" was broadly defined in the policy to include buildings at the premises.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Reconciling Prompt Payments and Withholding of Retention Payments
March 30, 2016 —
Eric J. Rollins, Esq. – Newmeyer & Dillion, LLPIt is common in California for the owners of a project to make monthly payments to a contractor for work as it is completed, but withhold a certain percentage as a guarantee of future satisfactory performance. Contractors almost always pass these withholdings on to their subcontractors. Unsurprisingly, disputes can arise regarding when the withheld retentions must be paid.
Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after receiving all or part of a retention payment. However, an exception exists -- a direct contractor may withhold from the retention paid to a subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount, whenever a “good faith dispute exists between the direct contractor and a subcontractor.” (See Cal. Civ. Code, § 8814, subd. (c).) The problem with the statute is that it offers no help in defining a “good faith dispute,” and the California courts have historically not provided much guidance either. Can a “good faith dispute” be any dispute between the contracting parties, e.g., a dispute regarding change orders, mismanagement, etc.? Or must the dispute relate specifically to the retention? Unfortunately for California litigants, the answer may depend on the appellate district in which the parties find themselves.
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Eric J. Rollins, Esq., Newmeyer & Dillion, LLPMr. Rollins may be contacted at
eric.rollins@ndlf.com
Cyber Thieves Phish Away a $735K Payment to a Minnesota Contractor
May 06, 2024 —
Richard Korman - Engineering News-RecordThe contractor's project manager asked for money due, $735,000 under Payment Application 13, to be sent by the owner electronically. "Hi Rick," the project manager, whose first name is Jalen, wrote in an email dated Aug. 15. "Can we have payments remitted electronically as we currently have numerous uncleared checks on hold?"
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Construction Employment Rose in 38 States from 2013 to 2014
March 19, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Associated General Contractors of America (AGC) reported that 38 states experienced construction job growth from January 2013 to January 2014, and 27 states showed gains from December 2013 to January 2014. AGC stated that “the fact so many states added construction jobs for the year and month despite harsh winter conditions in many parts of the country is a sign that demand appears to be recovering.”
Kansas ranked first in the “12-month gain or loss” category with a 10.7% gain. Wyoming came in last with a -5.9% over a 12-month period. However, if examining a one-month period (between December 2013 and January 2014), Idaho showed the highest growth with a 5.8% gain, while Vermont was ranked 51 at -5.5%.
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Three Attorneys Elevated to Partner at Newmeyer & Dillion, LLP
February 26, 2016 —
Newmeyer & Dillion, LLPNewmeyer & Dillion, LLP, a premier business and real estate law firm in California and Nevada, is pleased to announce the promotion of three of its attorneys to partnership.
“Clay Tanaka, Eric Rollins, and Jonathan King have proven their ability to provide the highest quality legal services to our clients while embracing the core values of the Firm which make it unique,” said Jeff Dennis, managing partner of Newmeyer & Dillion. “We are proud to welcome them as our new partners.”
The new partners share extensive legal and trial experience, demonstrating quick and creative solutions for their clients.
Newport Beach
Clayton Tanaka
Clay Tanaka is an experienced trial lawyer practicing in both California and Nevada, focusing on construction, real estate, business, insurance disputes and appellate law. As a licensed civil engineer in California, Clay has extensive knowledge of construction practices as well as vast experience in the designs of both residential subdivisions and commercial developments. He has represented developers and general contractors in numerous complex real estate and construction matters through trial, including disputes involving grading, design, boundary and easement disputes, water intrusion and insurance coverage issues. Clay has also represented a variety of businesses in actions involving breach of contract, fraud, and copyright and trademark infringements. He is also fluent in Japanese.
Eric Rollins
Eric Rollins’ practice focuses on the litigation and arbitration covering a broad range of business, real estate, construction, insurance, and land use disputes. Within the construction arena, he regularly handles complex construction matters and insurance coverage issues arising out of construction claims for both residential and commercial builders. In his business and land practice, Eric has litigated a variety of claims in state and federal courts involving breach of contract, negligence, unfair business practices, fraud, business formation, eminent domain, and inverse condemnation. He has experience with all phases of business litigation, including arbitration, mediation, and trial preparation.
Walnut Creek
Jonathan King
Jonathan King’s practice focuses on the representation of developers, builders, and general contractors in construction litigation and has extensive experience defending personal injury allegations in industrial and construction settings. His business cases include litigation of intellectual property infringement, and general business litigation. Jonathan has successfully resolved and defended complex matters in both mediation and binding arbitration settings. Jonathan also obtains federal trademark protection and negotiates licensing agreements for clients.
About Newmeyer & Dillion LLP
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Coverage Established for Property Damage Caused by Added Product
April 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiApplying Minnesota law, the federal district court determined the supplier of contaminated dried milk had coverage. The Netherlands Ins. Co. v. Main Street Ingredients, LLC, 2014 WL 1012793 (8th Cir. March 18, 2014).
In 2007, Plainview Milk Products sold dried milk to Main Street Ingredients, LLC, who then sold the dried milk to Malt-O-Meal. The dried milk was used by Malt-O-Meal in its instant oatmeal products.
In June 2009, the FDA found Salmonella bacteria at Plainview's plant. The FDA also observed thirteen instances of insanitary conditions in the plant. Plainview issued a product recall notice announcing a "voluntary recall" of dried milk, stating its dried milk had "the potential to be contaminated with Salmonella."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Five Years of Great Legal Blogging at Insurance Law Hawaii
December 09, 2011 —
CDJ STAFFOur congratulations to Tred Eyerly who has been blogging at Insurance Law Hawaii for five years now. Over the years, he has posted more than five hundred posts and has provided us all with fascinating insights into the laws on insurance coverage. He describes his blog as “a commentary on insurance coverage issues in Hawaii and beyond.” We are grateful that the “beyond” has just in the last few weeks included Colorado, Illinois, Washington, Minnesota, and Rhode Island (about as far from the island of Hawaii as you can get).
You can read his blog at Insurance Law Hawaii.
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