Economic Damages and the Right to Repair Act: You Can’t Have it Both Ways
March 16, 2017 —
Garret Murai – California Construction Law BlogIn 2002, the California State Legislature passed Senate Bill 800 also known as the Right to Repair Act (Civil Code Sections 895 et seq.) in an effort to stem a then rising tide in residential construction defect litigation.
SB 800, which applies to newly constructed residential units including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003, was intended to curb residential construction defect lawsuits by giving developers and others in the construction chain an opportunity to repair construction defects before being sued in court. SB 800 also provides minimum construction standards and limits the time in which a homeowner can bring a claim for construction defects.
In Acqua Vista Homeowners Association v. MWI, Case No. D068406 (January 26, 2017), the California Court of Appeals for the Fourth District examined the circumstances in which homeowners can sue a material supplier under the Right to Repair Act.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
U.S., Canada, Mexico Set New Joint Clean-Energy Goal
June 30, 2016 —
Tom Ichniowski – Engineering News-RecordThe U.S., Canada and Mexico have agreed to boost their combined clean-energy generation to 50% of electricity production by 2025, from 37% last year.
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Tom Ichniowski, Engineering News-RecordMr. Ichniowski may be contacted at
ichniowskit@enr.com
School District Practice Bulletin: Loose Lips Can Sink More Than Ships
April 08, 2014 —
Gregory J. Rolen – Haight Brown & Bonesteel LLPWe all understand how idle conversation and gossip can negatively impact relationships and workplace morale. But can they cause a school district to lose their lawyer? It is black-letter law that confidential communications between attorney and client are privileged, inadmissible, and cannot be later used against that client by third parties. However, under many circumstances confidential communications that occurred just outside the traditional attorney-client relationship can result in disqualification of counsel. In an environment when many educators become lawyers and education lawyers go from job to job and from client to client, care must be given to the context in which such communications occur.
I. The Ethical Duty of Confidentiality Is Broader Than the Attorney-Client Privilege.
Generally, every lawyer has a duty to refuse to disclose, and to prevent another from disclosing, a confidential communication between the attorney and client. (Fox Searchlight Pictures, Inc. v. Paladino (2001) 89 Cal. App .4th 294, 309; Evid. Code § 954.) The attorney-client privilege is statutory and permits the holder of the privilege to prevent disclosure, including testimony by the attorney, as to communications that are subject to the privilege. (Evid. Code §§ 952-955.)
The attorney’s ethical duty of confidentiality under Business & Professions Code section 6068(e) is broader than the attorney-client privilege. It extends to all information gained in the professional relationship that the client has requested be kept secret or the disclosure of which would likely be harmful or embarrassing to the client. (See Cal. State Bar Formal Opns. No. 1993-133, 1986-87, 1981-58, and 1976-37; Los Angeles County Bar Association Formal Opns. Nos. 456, 436, and 386. See also In re Jordan (1972) 7 Cal.3d 930, 940-41.) However, if the status of the person and the purpose of the conversation is unclear to the attorney, highly negative outcomes may result.
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Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com
Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter
October 10, 2013 —
Tred Eyerly — Insurance Law HawaiiThe Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013).
The insured received two letters from the EPA notifying it of potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter was received in January 2008, and stated that the EPA sought the insured's cooperation in its investigation of the release of hazardous substances at the site. The letter enclosed an extensive, 82-question "Information Request" seeking information about the insured's current and former activities at the site. The letter informed the insured that its voluntary cooperation was sought, but compliance with the Information Request was required by law and failure to respond could result in an enforcement action and civil penalties of $32,500 per day. The insured tendered the 104 (e) letter to St. Paul and requested a defense and indemnity pursuant to the CGL policy. St. Paul declined to provide a defense because the letter did not constitute a "suit," which was required by the policy to trigger the duty to defend.
The second letter from the EPA, received in November 2009, was entitled "General Notice Letter for the Portland Superfund Site" and notified the insured that it was a "potentially responsible party ("PRP").
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Client Alert: Service Via Tag Jurisdiction Insufficient to Subject Corporation to General Personal Jurisdiction
August 27, 2014 —
R. Bryan Martin and Kristian B. Moriarty - Haight Brown & Bonesteel LLPIn Martinez v. Aero Caribbean (No. 3:11-cv-03194-WHA, filed 8/21/2014), the United States Court of Appeals for the Ninth Circuit held service of process on a corporation's officer, within the forum state, does not establish general personal jurisdiction over the corporation unless the corporation's contacts with the forum render it essentially at home in the state.
Decedent, Lorenzo Corazon Mendoza, was traveling by airplane when the plane crashed, killing everyone aboard. Defendant Avions De Transport Régional (ATR) manufactured the airplane that crashed. Plaintiffs Lorenzo Martinez, Eliezer Martinez, Eliu Mendoza and Gloria Montes (Plaintiffs) filed suit against ATR as heirs of decedent.
ATR is a business entity organized under French law with its principal place of business in France. It is not licensed to do business in California, and it has no office or other physical presence there. It has purchased parts from California suppliers, sent representatives to California to promote its business, and advertised in trade publications available in California. It has also sold airplanes to a California corporation. Empire Airlines flies from Santa Barbara to Ontario using ATR planes on a regular basis; however, Empire Airlines purchased the ATR planes secondhand from third parties, and never directly from ATR. At the time of the crash, ATR North America (a wholly owned subsidiary of ATR) had its headquarters in Virginia, and has since relocated to Florida.
Reprinted courtesy of
R. Bryan Martin, Haight Brown & Bonesteel LLP and
Kristian B. Moriarty, Haight Brown & Bonesteel LLP
Mr. Martin may be contacted at bmartin@hbblaw.com; Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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A Court-Side Seat: May Brings Federal Appellate Courts Rulings and Executive Orders
June 29, 2020 —
Anthony B. Cavender - Gravel2GavelHere are a few interesting new rulings from the federal appellate courts.
COURT ORDERS
Like a Good Neighbor …? —
State of Maryland v. EPA
On May 19, 2020, the D.C. Circuit decided a Clean Air Act case involving the use of the “Good Neighbor Provision” of the Act, which is triggered when one state has a complaint about emissions generated in a neighboring upwind state that settle in the downwind state. Here, Maryland and Delaware filed petitions with EPA seeking relief from the impact of emissions from coal-fired power plants that allegedly affect their states’ air quality. EPA largely denied relief, and the court largely upheld the agency’s use and interpretation of the Good Neighbor Provision. The opinion is valuable because of its clear exposition of this complicated policy.
A Volatile Underground Issue —
Wayne Land and Mineral Group v. the Delaware River Basin Commission
Also on May 19, 2020, the U.S. Court of Appeals for the Third Circuit issued a ruling involving the Delaware River Basin Commission. Established in 1961, the Commission oversees and protects the water resources in the Basin. Not long ago, the Executive Director of the Commission, citing a rule of the Commission, imposed very strict limitations on fracking operations in the Basin. This decision has been very controversial with the Third Circuit opining that the Commission’s authority to regulate fracking operations—thought to be a province of state authority—was not clear-cut. In this case, three Pennsylvania state senators filed motions to intervene in the case, but the lower court rejected their request. The Third Circuit has directed the lower court to take another look at their standing to participate in this litigation. This is a volatile issue in Pennsylvania.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
California Ballot Initiative Seeks to Repeal Infrastructure Funding Bill
September 25, 2018 —
Garret Murai - California Construction Law BlogCalifornia voters will get to vote on November 6, 2018 on a ballot initiative to repeal an infrastructure funding bill signed by Governor Brown this past year that is estimated to raise more than $5 billion annually during the next ten years for road repairs and mass transit improvements in California.
In 2017, Governor Brown signed Senate Bill 1, the Road Repair and Accountability Act of 2017, which increased the excise tax on gasoline in the state by 12 cents per gallon, to 30 cents per gallon, and increasing vehicle registration fees from $25 to $175 dollars depending on the value of the vehicle. The last time the state’s gas tax was increased was in 1994 and the last time the federal gas tax was increased was in 1993.
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Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Contractor Owed a Defense
November 07, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court reversed the lower court and found that the insured contractor was entitled to a defense for alleged construction defects. Acuity v. M/I Homes of Chicago, LLC, 2022 Ill. App. LEXIS 393 (Ill. Ct. App. Sept. 9, 2022).
The owners association (AOAO) sued M/I Homes for breach of contract and the implied warranty of habitability due to alleged defects. The AOAO alleged that the defects caused physical injury to the townhomes. There was resulting property damage such as damage to other building materials, windows and patio doors, and water damage to the interior of units. M/I Homes requested a defense from Acuity, but the request was denied.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com