Seattle Washington Building Expert Directory

Landmark Contractor Licensing Case Limits Disgorgement Remedy in California

November 09, 2020 — Candace Matson - Construction & Infrastructure Law Blog
Contractors performing work in California are required to be licensed by the California State License Board (“CSLB”). Cal. Bus. & Prof. Code §7065. Except for sole proprietors, contractors are typically licensed through “qualifiers,” i.e., officers or employees who take a licensing exam and meet other requirements to become licensed on behalf of the contractor’s company. Contractors who perform work in California without being properly licensed are subject to a world of hurt, including civil and criminal penalties (see, e.g., Cal. Bus. & Prof. Code §§ 7028, 7028.6, 7028.7, 7117, and Cal. Labor Code §§ 1020-1022), and the inability to maintain a lawsuit to recover compensation for their work. Cal. Bus & Prof. Code § 7031(a); Hydra Tech Systems Ltd. v. Oasis Water Park, 52 Cal.3rd 988 (1991). But arguably the worst ramification of not being property licensed is that established in Business & Professions Code Section 7031(b), which provides that any person who uses the services of an unlicensed contractor may bring an action for the return of all compensation paid for the performance of the work, commonly known as “disgorgement.” This remedy is particularly harsh (often described as “draconian”) because it makes no allowance for the fact that an unlicensed contractor will likely have already paid out the bulk of its compensation to its subcontractors, suppliers and vendors, but nevertheless can be ordered to disgorge all compensation. Read the court decision
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Reprinted courtesy of Candace Matson, Sheppard Mullin
Ms. Matson may be contacted at cmatson@sheppardmullin.com

Construction Employment Rose in 38 States from 2013 to 2014

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The 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%. Read the full story, Article... Read the full story, Rankings... Read the court decision
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Court Finds Matching of Damaged Materials is Required by Policy

April 02, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court granted, in part, the insured's motion for summary judgment by finding that matching roof tiles were required under the policy. Bertisen v. Travelers Home and Marine Ins. Co., 2024 U.S. Dist. LEXIS 3907 (D. Colo. Jan. 8, 2024). The insureds sued Travelers for breach of contract, common law bad faith, and unreasonable delay or denial of benefits. They alleged that their residence was damaged by a hailstorm and that Travelers breached their policy and acted in bad faith in the handling of the claim. The insureds demanded an appraisal to determine the "amount of loss" under the policy and an appraisal award was issued. Travelers then denied payment for all roof tiles that were contemplated by the appraisal award. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Chapman Glucksman Press Release

October 17, 2022 — Chapman Glucksman
Chapman Glucksman Dean & Roeb, a Los Angeles based law firm, has unveiled a dynamic new brand. The firm will now be known as “Chapman Glucksman.” The name change reflects the forward thinking and creative approach that the firm brings to its client service. “Chapman Glucksman has always been a firm of innovative thinkers with a keen focus on obtaining very favorable results for our clients. Our new brand captures the firm’s energy and focus,” said Craig Roeb, a shareholder who has spent his entire legal career with the firm. “We are excited about the growth of Chapman Glucksman, with the recent addition of new shareholder, Greg Sabo, partners, Chelsea Zwart and David Weinberger, as well as six new associate attorneys. The continued growth of Chapman Glucksman is a reflection of our strong client loyalty and growth,” said Randall Dean, shareholder and head of the Professional Liability Practice Group. Founded in 1985, Chapman Glucksman is a multi-faceted law firm with offices in Los Angeles, Orange County, Bay Area and Palm Springs. Our AV rated firm has diverse practice groups consisting of highly skilled, experienced, insightful, responsive, pragmatic and creative lawyers who vigorously advocate our client’s interests, and secure result-oriented, favorable and creative solutions to complex issues. Our achievements derive directly from our commitment to providing our clients with an unparalleled level of attention, exceptional work product and a strong work ethic with outstanding results achieved. Read the court decision
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Reprinted courtesy of Chapman Glucksman

California Condo Architects Not Liable for Construction Defects?

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Law360 reported that attorneys for the architects of a San Francisco, California condominium complex told the California Supreme Court that the designers “can’t be held liable for construction defects that caused units to overheat” and urged “the panel to reverse a lower court's ruling that the architects owed a duty of care to the condos’ buyers.” The California appeals court ruling was based on California’s Right to Repair Act, however, “that law doesn’t apply to condo conversions.” The architects argued that since Beacon was “designed and originally rolled out as rental apartments before the units were sold as condos” the Right to Repair Act doesn’t apply. However, Beacon Residential Community Association’s attorney Robert Riggs of Katzoff & Riggs “argued that the architects had a ‘cradle to grave’ involvement in the development of the Beacon.” Riggs stated, “They designed a very large building with essentially no ventilation system, along with windows that don't open.” According to Law360, “[t]he justices took the arguments under submission and did not indicate which way they would rule.” Read the court decision
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How Retro-Commissioning Can Extend the Life of a Building—and the Planet

July 10, 2023 — Matthew Zweibruck - Construction Executive
Sustainability initiatives in the built environment need not be limited to new construction or other large expenditures. Aging facilities have the potential to extend their years of service while also combating greenhouse gas emissions. But what is the best course of action? From building design initiatives such as net zero and electrification to renewables and green building certifications, it can be a complicated and overwhelming field to navigate. Building owners and property managers may question if they are pursuing the correct programs to minimize their organization’s negative impacts on the environment. With all the initiatives, buzzwords and fancy awards surrounding these initiatives, there are energy-efficiency strategies available to buildings that cut through this noise—strategies that are cost effective, quick to implement, widely abundant and result in an immediate reduction in a building’s impact on climate change. Reprinted courtesy of Matthew Zweibruck, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations

November 21, 2017 — Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLP
Originally published by CDJ on June 15, 2017 Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018. THE NEW LAW – SB 496 SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof. However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists). Reprinted courtesy of Mark Himmelstein, Newmeyer & Dillion LLP and Jenny Guzman, Newmeyer & Dillion LLP Mr. Price may be contacted at mark.himmelstein@ndlf.com Ms. Zucker may be contacted at jenny.guzman@ndlf.com Read the court decision
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Real Estate & Construction News Roundup (2/21/24) – Fed Chair Predicts More Small Bank Closures, Shopping Center Vacancies Hit 15-year Low, and Proptech Sees Mixed Results

March 19, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, office occupancy rates hit all-time lows, global hotel investment to exceed numbers from 2023, federal courts look into real estate commissions, and more!

Federal Reserve chair Jerome Powell is predicting that more small banks will likely close or merge due to commercial real estate weaknesses. (David Hollerith, Yahoo)
An industry-shaking lawsuit making its way through the federal court system could upend the long-established way of paying commissions. (Jeff Ostrowski, Bankrate)
A good retail space is getting harder to find with the vacancy rate for shopping centers nationwide at a 15-year low. (Emily Peck, Axios)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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