Navigating the New Landscape: How AB 12 and SB 567 Impact Landlords and Tenants in California
March 11, 2024 —
Sharon Oh-Kubisch - Kahana FeldThere are various changes in the Landlord-Tenant laws in CA that became effective in 2024.
For the purposes of this article, I wanted to focus on Assembly Bill (AB) 12 and Senate Bill (SB) 567 only.
Governor Gavin Newsom recently signed AB 12 into law, a legislation that limits the amount landlords can charge for security deposits to just one month’s rent for unfurnished apartments. While the law aims to make housing more accessible, it raises several concerns for landlords and tenants alike. AB 12, was authored by Assemblyman Matt Haney, D-San Francisco; it passed both the Senate and the Assembly houses in September. The legislation introduces a notable shift from existing law, under which landlords can charge up to two months’ rent for an unfurnished unit and three months’ rent for a furnished one. This exception does not apply when the prospective tenant is a military service member, however.
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Sharon Oh-Kubisch, Kahana FeldMs. Oh-Kubisch may be contacted at
sokubisch@kahanafeld.com
Biden’s Buy American Policy & What it Means for Contractors
February 22, 2021 —
Meredith Thielbahr & Nicole Lentini - Gordon & Rees Construction Law BlogJanuary 25, 2021, President Biden signed an Executive Order (EO) “Ensuring the Future is Made in All America by All of America’s Workers”, which seeks to bolster U.S. manufacturing through the federal procurement process. Note that, just six day earlier, on January 18, the Federal Acquisition Regulation (FAR) Counsel issued a final rule implementing former President Trump’s July 2019 EO, titled “Maximizing Use of American-Made Goods, Products, and Materials” (EO No. 13881) on the then-current Buy American standards. For context, Trump’s proposed revisions – adopted and implemented by the FAR Council earlier this year – imposed three (3) significant changes worth noting: (1) increasing the percentage of domestic content (other than iron or steel) from 50% to 55% that an end product must contain in order to qualify as a “domestic end product”; (2) implementing an even higher increase in the domestic content requirement for iron and steel products to at least 95% U.S. “predominately” iron or steel product; and (3) increasing the price evaluation preference for domestic offerors from 6% to 20% (for other than small business) and 30% (for small businesses). The FAR’s rule became effective January 21, 2021, and applies to solicitations issued on or after February 22, 2021, and resulting contracts let. Biden’s EO rescinds Trump’s EO No. 13881 “to the extent inconsistent with [Biden’s] EO.” However, when dissected, it is clear Biden’s Buy American plan does little to modify thresholds inconsistent with the Trump Administration; rather, the White House’s latest EO implements changes in the form of BA administration. Nonetheless, Biden’s EO does expressly note that it supersedes and replaces Trump’s EO on the same issues.
Reprinted courtesy of
Meredith Thielbahr, Gordon & Rees and
Nicole Lentini, Gordon & Rees
Ms. Thielbahr may be contacted at mthielbahr@grsm.com
Ms. Lentini may be contacted at nlentini@grsm.com
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Los Angeles Recovery Crews Begin to Mobilize as Wildfires Continue to Burn
January 21, 2025 —
Scott Blair, Aileen Cho, & C.J. Schexnayder - Engineering News-RecordMore than a week since wildfires broke out in the Los Angeles area stoked by hurricane-force Santa Ana winds, officials are hoping that a change in the weather will soon allow the long process of recovery to begin.
Reprinted courtesy of
Scott Blair, ENR,
Aileen Cho, ENR and
C.J. Schexnayder, ENR
Mr. Blair may be contacted at blairs@enr.com
Ms. Cho may be contacted at choa@enr.com
Mr. Schexnayder may be contacted at schexnayderc@enr.com
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Be Proactive, Not Reactive, To Preserve Force Majeure Rights Regarding The Coronavirus
March 30, 2020 —
David Adelstein - Florida Construction Legal UpdatesIf you are involved in construction, NOW is the time to consider the potential force majeure impacts associated with the pandemic Coronavirus. Things are beginning to drastically change on a minute-by-minute basis. From travel restrictions, to the suspension or cancellation of events on an international level, to company-wide policies and restrictions, the global uncertainty has led to the possibility that a force majeure delay will occur. Thinking otherwise is not being proactive. The Coronavirus, and the impacts / delays associated therewith, is beyond anyone’s control. Due to the uncertainty, it is hard to fathom at this time a reasonable challenge to someone’s reaction to this concern or their companywide response to the concern.
If you are a contractor, subcontractor, or even a supplier, my suggestions would be as follows:
- Revisit your contracts and see what type of force majeure language it has – anything relating to delays beyond your control or epidemics;
- Examine to see whether you have a basis for additional compensation AND additional time;
- Examine what type of notice you are required to provide for force majeure events;
- Be proactive – send notice now of the potentiality that this pandemic can impact / delay the job –no one should take offense to this letter as this pandemic has impacted all walks of life;
- If an impact occurs, send follow-up notice accordingly to ensure rights under the contract are preserved; and
- For future contracts, incorporate language that specifically addresses epidemics and pandemics now that the occurrence of this issue has become real.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
First Circuit Rules Excess Insurer Must Provide Coverage for Fuel Spill
January 18, 2021 —
Syed S. Ahmad & Adriana A. Perez - Hunton Andrews KurthThe First Circuit recently held that a “Special Hazard and Fluids Limitation Endorsement” was ambiguous and therefore there was excess coverage for a fuel spill that occurred after a tanker-truck overturned.
In Performance Trans. Inc. v. General Star Indem. Co., the First Circuit reversed the District Court’s grant of summary judgment in favor of General Star Indemnity Company. The District Court held that the excess policy General Star issued to Performance Trans. Inc. precluded coverage for a spill that resulted in the leaking of thousands of gallons of fuel. The District Court relied on the existence of a total pollution exclusion to bar coverage and held that the policy’s Special Hazards and Fluids Limitation Endorsement could not create an ambiguity that would afford coverage.
Reprinted courtesy of
Syed S. Ahmad, Hunton Andrews Kurth and
Adriana A. Perez, Hunton Andrews Kurth
Mr. Ahmad may be contacted at sahmad@HuntonAK.com
Ms. Perez may be contacted at pereza@HuntonAK.com
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Challenging a Termination for Default
September 23, 2024 —
David Adelstein - Florida Construction Legal UpdatesNo contractor wants to be terminated for default. It is the harshest contractual recourse. It is a recourse that has implications, particularly in the public sector. However, a party needs to be in a position to support the basis of the termination for default, and the terminated party, in most instances, should not be in a position to imply accept the basis of the default. This applies regardless of the project.
In the federal context: “When a contractor challenges a default termination, the government bears the burden of establishing the validity of the termination.” Sergent’s Mechanical Systems, Inc. v. U.S., 2024 WL 4048175, *7 (Fed.Cl. 2024) (internal quotation and citation omitted). Once the government establishes the default, “the contractor bears the burden of establishing that the default was excused by fault of the government.” Id. at *8 (internal quotation and citation omitted).
Relevant considerations as to whether the contractor is in default include the contractor’s failure to meet contract specifications or the required schedule. Sergent’s Mechanical Systems, supra, at *8. “[T]here is ‘a requirement that the contractor give reasonable assurances of performance in response to a validly issued cure notice.” Id. (internal quotation and citation omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Co-Housing Startups Fly in the Face of Old-School NYC Housing Law
December 18, 2022 —
Amelia Pollard & Diego Lasarte - BloombergA room in an eight-bedroom Bed-Stuy brownstone with “charming views.” A five-bedroom “modern Manhattan” home. In a housing market as hot as New York City’s, these units advertised on co-housing companies’ websites sound promising. According to the city’s housing regulations, however, neither is legal.
That hasn’t stopped companies from offering the rooms, as renters clamor for affordable living space. With the average studio apartment in Manhattan going for nearly $3,100 a month, newcomers to the city often find living with multiple roommates to be their best affordable-housing option. It’s a trend that startups have jumped on, and one some experts endorse as a way to quickly scale up affordable housing — even though municipal housing laws aren’t on board yet.
The reality is that in many cities, housing laws that limit the number of unrelated individuals in a dwelling are still in place. New York, for instance, doesn’t allow more than three unrelated people to live in the same unit. To be sure, New Yorkers often break that law, as expensive housing forces people to find roommates through friends or on sites like Craigslist. But multimillion-dollar companies breaking that law is new.
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Amelia Pollard, Bloomberg and
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Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff
September 20, 2017 —
Garret Murai - California Construction Law BlogElon Musk . . .
Eccentric engineer.
Technology billionaire.
And, now, litigation bad ass.
Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t.
One California contractor recently found this out the hard way.
In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com