Nine Firm Members Recognized as Super Lawyers and Rising Stars
July 14, 2016 —
Ahlers & Cressman PLLC BlogAhlers & Cressman PLLC attorneys have again been recognized as “Super Lawyers” and “Rising Stars” (attorneys under 40 years of age, or practicing under 10 years) in Washington for 2016.
Six Ahlers & Cressman attorneys were recognized as Super Lawyers: John P. Ahlers, Paul R. Cressman, Jr., Scott R. Sleight, Bruce A. Cohen, Lawrence S. Glosser, and Brett M. Hill. Additionally, three of the firm’s attorneys have been recognized as Rising Stars: Ryan W. Sternoff, James R. Lynch, and Lindsay K. Taft.
Super Lawyers selects attorneys using a multiphase selection process, involving peer nominations, evaluations, and third-party research. Each attorney candidate is evaluated on 12 indicators of peer recognition and professional achievement. Only five percent of the total lawyers in Washington State are selected for the honor of Super Lawyer, and no more than 2.5 percent are selected for the honor of Rising Star.
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AB5 Construction Exemption – A Checklist to Avoid Application of AB5’s Three-Part Test
February 18, 2020 —
Blake Dillion - Payne & Fears LLPConstruction companies have a unique opportunity to avoid the application of the restrictive new independent contractors law that took effect this year. This article provides a checklist that will help construction companies determine whether their relationships with subcontractors qualify for this exemption.
California’s Assembly Bill 5 (“AB5”), which went into effect Jan. 1, 2020, enacts into a statute last year’s California Supreme Court decision in
Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor.
Certain professions and industries are potentially exempt from this standard, including the construction industry. The ABC test does not apply to the relationship between a contractor and an individual performing work pursuant to a subcontractor in the construction industry, if certain criteria are met. In order for the “construction exemption” to apply, the contractor must demonstrate that all of the following criteria are satisfied.
- The subcontract is in writing;
- The subcontractor is licensed by the Contractors State License Board and the work is within the scope of that license;
- If the subcontractor is domiciled in a jurisdiction that requires the subcontractor to have a business license or business tax registration, the subcontractor has the required business license or business tax registration;
- The subcontractor maintains a business location that is separate from the business or work location of the contractor;
- The subcontractor has the authority to hire and to fire other persons to provide or assist in providing the services;
- The subcontractor assumes financial responsibility for errors or omissions in labor or services as evidenced by insurance, legally authorized indemnity obligations, performance bonds, or warranties relating to the labor or services being provided; and
- The subcontractor is customarily engaged in an independently established business of the same nature as that involved in the work performed.
The contractor must be able to establish each of the above criteria for the construction exemption to apply. If the contractor is successful, the long standing multi-factor test for determining independent contractor vs. employee status as described in
S.G. Borello & Sons, Inc. v. Dep’t of Industrial Relations, 48 Cal. 3d 341 (1989) will apply.
You should review your processes and procedures for engaging subcontractors to ensure that you can satisfy the above criteria. If you have questions about the application of AB5, the construction exemption, or the
Borello factors, you should speak with an attorney.
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Blake A. Dillion, Payne & FearsMr. Dillion may be contacted at
bad@paynefears.com
Third Circuit Affirms Use of Eminent Domain by Natural Gas Pipeline
November 28, 2018 —
Anthony B. Cavender - Gravel2GavelOn October 30, the U.S. Court of Appeals for the Third Circuit decided the case of Transcontinental Gas Pipe Line Co., LLC v. Permanent Easements for 2.14 Acres, et al. , affirming the District Court’s grant of a preliminary injunction to Transcontinental Gas Pipe Line Company, LLC (Transcontinental). This case involves the construction of the “Atlantic Sunrise Expansion Project,” a natural gas pipeline that runs through Pennsylvania, Maryland, Virginia, North Carolina and South Carolina.
Under the Natural Gas Act (NGA), pipeline companies can exercise powers of eminent domain when they are acting in the public interest. The Third Circuit cautions that this is a “standard” eminent domain power, and not a “quick take” that is permitted under another statute.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
A Contractual Liability Exclusion Doesn't Preclude Insurer's Duty to Indemnify
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Traub Lieberman Straus & Shrewsberry LLP's blog, "[I]n Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20737 (5th Cir. October 29, 2014), the United States Court of Appeals for the Fifth Circuit withdrew its prior ruling and held that the contractual liability exclusion did not preclude an insurer’s duty to indemnify its insured for an award resulting from the insured’s defective construction."
The case involved the Crownovers who were awarded damages for "Arrow's breach of paragraph 23.1 of the construction contract." However, Arrow then filed for bankruptcy. Mid-Continent, Arrow's insurer, denied Crownovers' demand for recovery, stating that "the contractual liability exclusion applied because the arbitrator’s award to the Crownovers was based only on Arrow’s breach of paragraph 23.1 of the construction agreement." The court agreed with Mid-Continent.
Subsequently, the fifth court of appeals "reversed the district court’s ruling and awarded summary judgment in favor of the Crownovers."
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Recording “Un-Neighborly” Documents
April 03, 2019 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogIn September 2018, in Baumgartner v. Timmins, 245 Ariz. 334, 429 P.3d 567, the Arizona Court of Appeals provided further clarification on what constitutes an “encumbrance” on a property for purposes of Arizona’s statutory scheme prohibiting the recording of “false documents.” The statute, A.R.S. § 33-420, prohibits the recording of documents that a person knows to be forged, are groundless, or that contain material misstatements (or false claims). A person who claims an “interest in, or a lien or encumbrance against” real property who records such documents can be held liable for $5,000 or treble the actual damages caused by the recording (whichever is greater), A.R.S. § 33-420(A), and perhaps even be found guilty of a class 1 misdemeanor, A.R.S. § 33-420(E).
At issue in Baumgartner were neighbors fighting about CC&Rs—a typical neighborhood fight. In 2015, some of the neighbors filed suit against the Timminses for violating the CC&Rs. The Timminses did not contest the lawsuit, resulting in a default judgment. In what the Court of Appeals characterized as a lawsuit filed by the Timminses “in apparent response to the [first] lawsuit and resulting default judgment,” the Timminses created, signed, and recorded affidavits contending that the Plaintiffs in the original lawsuit were themselves “in violation of several provisions of the CC&Rs.” The Plaintiffs then filed suit again against the Timminses, this time contending that the Timminses had violated A.R.S. § 33-420 by recording the affidavits because the affidavits, the Plaintiffs contended, created encumbrances on their properties. The Apache County Superior Court agreed, and issued a final judgment nullifying the recorded documents and awarding the Timminses damages, along with their attorneys’ fees and costs.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
Crowdfunding Comes to Manhattan’s World Trade Center
January 28, 2015 —
David M. Levitt – BloombergGot $5,000? You can invest in the 3 World Trade Center skyscraper under construction in lower Manhattan.
Fundrise, a real estate crowdfunding business, is inviting individual investors to put as little as $5,000 into bonds backing the 80-story tower, according to a statement e-mailed by Joshua Greenwald, a spokesman for the Washington-based company. The total cost for the Richard Rogers-designed building is projected to be $2 billion.
“We think the 3 World Trade Center investment offering is proof of the power of crowdfunding at work,” Dan Miller, co-founder of Fundrise, said in the statement. “We are proud to be able to give more people a chance to invest in this important iconic asset.”
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David M. Levitt, BloombergMr. Levitt may be contacted at
dlevitt@bloomberg.net
No Coverage for Building's First Collapse, But Disputed Facts on Second Collapse
January 10, 2018 —
Tred R. Eyerly – Insurance Law Hawaii While building's first collapse was not covered, there were disputed facts regarding the second collapse, leading to a reversal of the order granting summary judgment to the insurer on both collapses. Intergroup Int'l Ltd. v. Cincinnati Ins. Cos, 2017 Ohio app. LEXIS 5099 (Ohio Ct. App. Nov. 22, 2017). Intergroup bought a building after it was inspected. While leaks on the roof were repaired and a roof truss that was sagging was replaced, the inspector found the roof to be in good shape.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at te@hawaiilawyer.com
Residential Contractors, Be Sure to Have these Clauses in Your Contracts
December 23, 2023 —
Christopher G. Hill - Construction Law MusingsI have often “mused” on the need to have a good solid construction contract at the beginning of a project. While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction. Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced. For this reason, through meetings and the construction contract, setting expectations early and often is key.
As a side note to this need to set expectations, the Virginia Department of Professional and Occupational Regulation (DPOR) and the Virginia General Assembly require certain clauses to be in every residential construction contract. DPOR strictly enforces these contractual items and failure to put them in your contracts can lead to fines, penalties and possibly even revocation of a contractor’s license.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com