AB5 Construction Exemption - A Checklist to Avoid Application of AB5's Three-Part Test
May 18, 2020 —
Blake A. Dillion - Payne & FearsConstruction 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.
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Blake A. Dillion, Payne & FearsMr. Dillion may be contacted at
bad@paynefears.com
Roots of Las Vegas Construction Defect Scam Reach Back a Decade
August 05, 2013 —
CDJ STAFFRecent court documents in the Las Vegas HOA scandal reveal that the late Nancy Quon, thought to be a mastermind in the scam was involved with a similar case before 2001. The Las Vegas Review-Journal reports that the Nevada attorney general’s office launched an investigation of the Starfire condominium complex. Claims were made that an architect and a construction company attempted to fill the Starfire board with straw buyers. Quon represented a resident to filed a claim over defective windows.
Chris Rasmussen, the attorney for Edith Gillespie, Leon Benzer’s half sister, has noted that his client was not charged in the Starfire case, but the Review-Journal notes that no one was, as the insurance company settled quickly, which ended the chances for a criminal investigation. The Starfire case is described as “a $6 million lawsuit based on fraudulent construction defect claims.” Quon, Benzer, and their co-conspirators are alleged to have modeled their subsequent actions after Starfire.
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Construction Firms Complain of Missed Payments on Redevelopment Project
December 11, 2013 —
CDJ STAFFFirms working on the Quincy Center redevelopment project in the Boston area are claiming that the developer has been slow to pay. Street-Works Development says that Twining Properties, a partner in the development, is in the process of paying off $1.9 million owed to construction companies.
The project was put on hold when it was determined that funds were not available to build the initially planned 15-story, steel-framed apartment building as part of a residential, retail, and office complex. The residential portion will now be a 6-story, wood-framed building. One of the contractors has taken the first steps to placing a lien on another property owned by Street-Works.
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$5 Million Construction Defect Lawsuit over Oregon Townhomes
January 06, 2012 —
CDJ STAFFA homeowners’ association in Lake Oswego, Oregon has filed a $5 million lawsuit against the developers of the luxury townhomes. The homeowners of Sunset Crossing are suing Centurion Homes and Aspen Townhomes over claims that construction defects have lead to water intrusion and structural damages. The townhomes were built in 2005.
Andy Burns, the lawyer for Phillip and Patricia Gentelmann, the owners of both Centurion Homes and Aspen Townhomes, said the Gentelmanns were “taking these allegations very seriously.” The suit says that the construction violated state and local building codes and that the firms did not repair damage caused by water intrusion.
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Rooftop Solar Leases Scaring Buyers When Homeowners Sell
June 26, 2014 —
Will Wade – BloombergDorian Bishopp blames the solar panels on his roof for costing him almost 10 percent off the value of the home he sold in March.
That’s because instead of owning them he leased the panels from SunPower Corp. (SPWR), requiring the new owner of the house to assume a contract with almost 19 years remaining. He had to shave the asking price for the house in Maricopa, Arizona, to draw in buyers unfamiliar with the financing arrangement.
Leasing is driving a boom in solar sales because most require no money upfront for systems that cost thousands of dollars. That’s made solar affordable for more people, helping spur a 38 percent jump in U.S. residential installations in the past year. Since the business model only gained currency in the past two years, the details embedded in the fine print of the deals are only starting to emerge.
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Will Wade, BloombergMr. Wade may be contacted at
wwade4@bloomberg.net
Newmeyer Dillion Attorneys Selected To The Best Lawyers In America© And Orange County "Lawyer Of The Year" 2020
September 03, 2019 —
Newmeyer DillionProminent business and real estate law firm Newmeyer Dillion is pleased to announce that ten of the firm's attorneys were recently recognized in their respective practice areas in The Best Lawyers in America© 2020. In addition, two attorneys have been named Best Lawyers ® 2020 "Lawyer of the Year." Greg Dillion was recognized by Best Lawyers as the 2020 Construction Law "Lawyer of the Year" award winner, while Thomas Newmeyer was recognized by Best Lawyers as the 2020 Litigation - Real Estate "Lawyer of the Year" award winner.
Attorneys named to The Best Lawyers in America, include:
Jason Moberly Caruso
Personal Injury Litigation – Plaintiffs, Product Liability Litigation – Plaintiffs
Michael S. Cucchissi
Real Estate Law
Jeffrey M. Dennis
Insurance Law
Gregory L. Dillion
Commercial Litigation, Construction Law, Insurance Law, Litigation – Construction, Litigation - Real Estate
Joseph A. Ferrentino
Litigation – Construction, Litigation - Real Estate
Jon Janecek
Real Estate Law
Thomas F. Newmeyer
Commercial Litigation, Litigation - Real Estate
John O'Hara
Litigation – Construction
Bonnie T. Roadarmel
Insurance Law
Jane Samson
Real Estate Law
Newmeyer Dillion is immensely proud of our lawyers, whose consistent recognition demonstrates their contributions to the firm, our clients and the legal profession.
With a history of over 35 years, Best Lawyers is the oldest peer review publication within the legal profession. Universally regarded as the definitive guide to legal excellence, Best Lawyers lists are compiled based on an exhaustive peer-review evaluation in which leading lawyers confidentially evaluate their professional peers. Their listings are published in 77 countries worldwide and are recognized for their reliable and unbiased selections. Only one lawyer for each specialty and location is recognized as the "Lawyer of the Year," an award given to the individual with the highest overall peer-feedback for a specific practice area and geographic region.
About Newmeyer Dillion
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that align with the business objectives of clients in diverse industries. With over 70 attorneys working as an integrated team to represent clients in all aspects of business, employment, real estate, privacy & data security and insurance law, Newmeyer Dillion delivers tailored legal services to propel clients' business growth. 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 Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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Colorado Supreme Court to Hear Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, et al.
October 10, 2013 —
David M. McLain — Higgins, Hopkins, McLain & Roswell, LLCThe Colorado Pool case has been featured in two past blog entries, including: “An Arapahoe County District Court Refuses to Apply HB 10-1394 Retrospectively,” which discussed the case at the trial court level, and “Colorado Court of Appeals Finds Damages to Non-Defective Property Arising From Defective Construction Covered Under Commercial General Liability Policy,” which discussed the case at the Court of Appeals level. In both instances, the courts held that retroactively applying C.R.S. C.R.S. § 13-20-808 to policies in effect prior to the date of the statute’s enactment would be impermissibly retrospective because it would change the coverage under the policy for which the parties had originally bargained.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Will There Be Construction Defect Legislation Introduced in the 2019 Colorado Legislative Session?
March 18, 2019 —
David McLain - Colorado Construction Litigation BlogWith the 2019 Colorado legislative session well underway, the construction industry is waiting with bated breath to see what the Democrat controlled legislature might do with respect to construction defect legislation. In recent years, having a split legislature has prevented any attempts to roll back positive changes in the law, either from the legislature or Colorado courts, that have been hailed by the construction community.
This year, odds are good that we will see at least one bill similar to two introduced last year that would hinder the ability to have disputes decided by binding arbitration. While not full frontal assaults on the Colorado Supreme Court decision in the Vallagio case, HB18-1261, the “Colorado Arbitration Fairness Act,” and HB 18-1262, the “Arbitration Services Provider Transparency Act,” would have negatively impacted the ability to resolve any type of case through arbitration. Anything that prevents the resolution of construction defect cases through arbitration will increase the judgments and settlements in such cases, ultimately increasing the costs of construction and for insurance for those in the industry.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com