Bond Principal Necessary on a Mechanic’s Lien Claim
October 23, 2018 —
Christopher G. Hill - Construction Law MusingsAs anyone that reads this construction law blog knows, mechanic’s liens are a big part of the Virginia landscape for a construction attorney like me.
One option for dealing with a mechanic’s lien here in Virginia that we have not discussed but so often is the ability to “bond off” a lien. In short, the Virginia statute allows a party to essentially substitute a bond valued at a court set multiple of the principal amount of the mechanic’s lien for the memorandum. In exchange, the lien is released of record. Any enforcement action can still proceed with security for the claimant and the property owner feeling better about things because there will be no lien on the title to the land.
In many ways this process provides an easier path to resolution for both owner and claimant. First of all, the claimant does not have to deal with a bank or other interest holders in the property (though a recent case discussed below reminds us that certain other parties are necessary). Second of all, the owner does not have the cloud on the title of a mechanic’s lien that may have been filed by a subcontractor over which he has no control.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
NY State Appellate Court Holds That Pollution Exclusions Bar Duty to Defend Under Liability Policies for Claims Alleging Exposure to PFAS
February 01, 2022 —
Robert F. Walsh & Paul A. Briganti - White and Williams LLPOn January 6, 2022, the New York Supreme Court, Appellate Division, Third Department, held that the “sudden and accidental” pollution exclusion (SAPE) and “absolute” pollution exclusion (APE) in liability policies relieved two insurers of a duty to defend the insured-manufacturer in connection with claims alleging damages as a result of exposure to perfluorooctanoic acid (PFOA) and perfluorooctane sulfonate (PFOS), which are man-made chemicals within the group of per- and polyfluoroalkyl substances (PFAS). See Tonoga, Incorporated v. New Hampshire Insurance Company, No. 532546, 2022 N.Y. App. Div. LEXIS 105 (App. Div. 3rd Dep’t Jan. 6, 2022).
In Tonoga, starting in 1961, the insured and its predecessors owned and operated a manufacturing facility in Petersburg, New York that produced materials coated with polytetrafluoroethylene (PTFE). Until 2013, the manufacturing process involved the use of PFOA and/or PFOS. In early 2016, excessive PFOA and/or PFOS concentrations were detected in Petersburg’s municipal water supply. Later that year, the New York Department of Environmental Conversation designated the insured’s facility a Superfund site, and the insured entered into a consent agreement that required it to assist in remedial measures. 2022 N.Y. App. Div. LEXIS 105, at *1-2.
Reprinted courtesy of
Robert F. Walsh, White and Williams LLP and
Paul A. Briganti, White and Williams LLP
Mr. Walsh may be contacted at walshr@whiteandwilliams.com
Mr. Briganti may be contacted at brigantip@whiteandwilliams.com
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Yet ANOTHER Reason not to Contract without a License
October 25, 2021 —
Christopher G. Hill - Construction Law MusingsRemember when I stated that you cannot lawfully perform construction work in Virginia without a contractor’s license? Remember when I said that you risk non-payment if you do so? If you needed another reason, a relatively recent Virginia Court of Appeals decision upholding a criminal conviction for performing construction work without a license should be that reason.
In Riddel v. Commonwealth, the Court took up an appeal from the conviction of Jeff Riddel where Mr. Riddel was verbally asked by homeowners to inspect and then repair their septic system. Mr. Riddel then contracted with Fairfax Suburban Septic to pump out and repair the system. Mr. Riddel then delivered the homeowners an invoice from Fairfax Suburban Septic and instructed the homeowners to pay Fairfax Suburban Septic directly. After payment, the homeowners became aware that the work was not completed and that neither Mr. Riddel nor his subcontractor was licensed to perform septic work in Virginia.
During the trial, Mr. Riddel argued on a Motion to Strike the Commonwealth’s evidence that (1) he merely arranged for licensed contractors to perform the repairs to the septic system, arguing that Virginia Code §§
54.2-801 to 802 permitted Riddel to arrange the work without a contractor’s license and (2) no written contract to perform a septic inspection or repairs existed. The Circuit Court denied the motion and Mr. Riddel was convicted under Va. Code 54.1-111 for performing the work without a license. Needless to say, he appealed.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Injury to Employees Endorsement Eliminates Coverage for Insured Employer
February 01, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted summary judgment to the insurer based upon an endorsement which barred coverage for injuries to employees. Northfield Ins. Co. v. Z&J Mgt. LLC, 2020 N.Y. Misc. LEXIS 10801 (N.Y. Sup. Ct. Dec. 18, 2020).
Ravi Sooklal sued his employer, Z&J Management LLC (Z&J), for injuries at the job site. Northfield, who had issued a CGL policy to Z&L, denied coverage based upon two endorsements. The first was titled "Injury to Employees of Insureds" and the second was "Employers' Liability." Northfield sued for a declaratory judgment and now moved for summary judgment.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newmeyer & Dillion Attorneys Selected to Best Lawyers in America© Orange County and as Attorneys of the Year 2018
August 17, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – AUGUST 17, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that nine of the firm’s attorneys were recently recognized in their respective areas in The Best Lawyers in America© 2018. Two attorneys, Gregory Dillion and Thomas Newmeyer, also have been selected as an Orange County "Lawyer of the Year." Attorneys named to The Best Lawyers in America, include:
Jason M. Caruso |
Personal Injury Litigation, Product Liability Litigation |
Michael S. Cucchissi |
Real Estate Law |
Gregory L. Dillion |
Commercial Litigation, Construction Law, Insurance Law, Litigation – Construction, Litigation – Real Estate |
Jeffrey M. Dennis |
Insurance Law |
Joseph A. Ferrentino |
Litigation – Construction, Litigation – Real Estate |
Thomas F. Newmeyer |
Commercial Litigation, Construction Law, Litigation – Real Estate |
John A. O'Hara |
Litigation – Construction |
Bonnie T. Roadarmel |
Insurance Law |
Carol Sherman Zaist |
Commercial Litigation |
Additionally, Gregory Dillion was selected as the Orange County Construction Litigation "Lawyer of the Year" and Thomas Newmeyer was selected as the Orange County Construction Law "Lawyer of the Year."
Best Lawyers is the oldest peer-review publication within the legal profession with a history of over 30 years. Attorneys are selected through intensive peer-review surveys in which leading lawyers evaluate their professional peers. Their listings are published in 75 countries worldwide and are recognized for their reliable and unbiased selections. Newmeyer & Dillion is immensely proud of these lawyers and looks forward to their future endeavors.
About Newmeyer & Dillion
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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The Miller Act: More Complex than You Think
October 07, 2016 —
Beverley BevenFlorez-CDJ STAFFKeith Bremer, senior partner of Bremer Whyte Brown & O’Meara LLP, has a feature article in the Fall 2016 issue of Construction Claims Magazine, and discusses how the Miller Act has been slowly changing: “This is a complex piece of legislation that is evolving and has been decided differently depending on the federal district a case is heard in,” Bremer wrote.
Bremer explained how the courts continue to rule differently in regards to the Miller Act. “Currently it seems jurisdictions are split on the issue of whether or not subcontractors should be allowed to bring both a federal and state cause of action stemming from payment by a Miller Act bond. Therefore, any surety writing these bonds should pay strict attention to how broad or narrow the federal district that would hear the claim has interpreted the scope of a subcontractor’s remedies for Miller Act claims.”
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Texas Supreme Court Defines ‘Plaintiff’ in 3rd-Party Claims Against Design Professionals
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to attorney Matthew J. Mussalli, writing in Texas Lawyer, “In Jaster v. Comet II Construction on July 3, the Texas Supreme Court ruled how to construe the term ‘plaintiff’ in the context of claims against design professionals and under what circumstances a Certificate of Merit (COM) is required.”
Mussalli explained that “the court narrowly construed the relevant statute contained in Chapter 150 of the Texas Civil Practice & Remedies Code and held that the plaintiff is just that—the plaintiff; not a defendant/third-party plaintiff nor a cross-claimant. Accordingly, builders, contractors and others who find themselves in the position of defending breach of contract, negligence or other claims and who seek to implead design professionals, need not file a COM with their third-party petitions or cross-claims against architects, engineers or other design professionals.”
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Corps, State Agencies Prep for Flood Risks From California Snowmelt Runoff
May 29, 2023 —
Michael Powell - Engineering News-RecordIn the wake of record-setting snowfalls in the Sierra Nevada Mountains over the past six months, California and federal officials are preparing to handle the flooding threat posed by imminent meltwater runoff. The efforts include releasing water from the state's key dams to allow for the expected capacity, preparing emergency responses for imperiled area's in the state's Central Valley and launching groundwater recharge projects.
Reprinted courtesy of
Michael Powell, Engineering News-Record
ENR may be contacted at enr@enr.com
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