California Contractor Spills Coffee on Himself by Failing to Stay Mechanics Lien Action While Pursuing Arbitration
August 14, 2018 —
Garret Murai - California Construction Law BlogIt bugs the Mrs. that I have a habit of reading the directions. “Just plug the darn thing in!” said the Mrs. when we got a new coffee maker to replace our old one which we’ve had since I think before we were married (Life Lesson No. 347: Get a coffee maker you really, really like because they last forever). “But . . . the directions?,” I said.
By the time I had finished reading the instruction manual I could smell the coffee brewing in the kitchen. Granted, the Mrs. is more practical than I am in many ways (e.g., “You know, you didn’t need to buy 10 cans of corn to get the 10 for $10 discount. I guess you’re going to be eating a lot of corn”). But still. What might have happened if there was a serious coffee mishap?
And worrier as I may be mishaps can happen if you don’t read the directions. James Zenovic didn’t read the directions, and here’s his story . . .
Von Becelaere Ventures, LLC v. Zenovic
In Von Becelaere Ventures, LLC v. Zenovic, Case No. D072620 (June 6, 2018), James Zeonovic doing business as James Zeonovic Construction entered into a construction contract to build a single-family house for Von Becelaere Ventures, LLC in Laguna Beach, California. The construction contract included an arbitration provision that stated:
If any dispute arises concerning this Contract or the interpretation thereof, of concerning construction of the Improvements, or the Limited Warranty, customer service, defects, damages, or obligations therewith (a “Construction Dispute”), such Construction Dispute will be settled by binding arbitration. Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Corporate Transparency Act’s Impact on Real Estate: Reporting Companies, Exemptions and Beneficial Ownership Reporting (webinar)
December 04, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogOn October 23, 2023, colleague
Andrew Weiner and Kevin Gaunt, counsel at Hunton Andrews Kurth, examined the Corporate Transparency Act (CTA), effective Jan. 1, 2024, and its impact on real estate entities and transactions, including who is considered a reporting company subject to new beneficial ownership information (BOI) reporting requirements and whether an exemption applies. The panel also discussed certain state laws that impose similar reporting requirements as the CTA and described best practices for real estate counsel to assist their clients with preparing for the CTA’s implementation and ongoing compliance.
The panel also reviewed other important considerations, including:
- Which real estate entities will likely be most affected by the CTA’s implementation and why?
- What exemptions may apply?
- How will the CTA’s reporting requirements affect real estate transactions for lenders and investors/buyers?
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team
New Executive Order: Revitalizing Our Nation’s Commitment to Environmental Justice for All
May 08, 2023 — Anthony B. Cavender - Gravel2Gavel
The White House has released the text of the President’s new Executive Order strengthening the Federal Government’s commitment to taking new actions to enhance and promote environmental justice. The Order was published in the Federal Register on April 26, 2023 at 88 FR 25251. President Clinton’s pioneering 1994 Executive Order remains effective, but the Federal Government must, as part of a whole-of-government approach to environmental justice, “build upon and strengthen its commitment to deliver environmental justice to all communities across America.”
Unlike that Order, this Order defines “environmental justice.” For purposes of this new Order, “environmental justice” takes into account all adverse human health and environmental effects and hazards, including those related to climate change, the cumulative impacts of environmental and other burdens, and the legacy of racism or other structural or systematic barriers, and ensures equitable access to a healthy, sustainable and resilient environment in which to live, play, work, learn, worship and engage in cultural and subsistence practices.
“Federal activity” is now broadly defined as “any agency rulemaking, guidance, policy, program, practice or action that affects or has the potential to affect human health and the environment, including any agency action related to climate change.” This Order references the seven previous Executive Orders devoted to climate change, clean energy and the Inflation Reduction Act. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com
Asbestos Exclusion Bars Coverage
February 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The broad asbestos exclusion found in a Business Owners policy barred coverage for the insured after it sold a building in which asbestos was discovered. Phillips v. Parmelee, 2013 Wisc. LEXIS 747 (Dec. 27, 2013).
Prior to purchasing an apartment building, the insured had the building inspected. The report indicated that the building's heating supply ducts likely contained asbestos. The insured then sought to sell the building. The Real Estate Condition Report stated the insured was not aware of "asbestos or asbestos-containing materials on the premises."
The buyers purchased the property. A contractor cut through asbestos-wrapped ducts, dispersing asbestos throughout the building. The buyers sued the insured for breach of contract/warranty and negligence in failing to adequately disclose defective conditions including asbestos. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com
The Independent Tort Doctrine (And Its Importance)
October 24, 2022 — David Adelstein - Florida Construction Legal Updates
A non-construction raises an important legal principle. Here it is because it applies to construction disputes. It actually applies to many business-type disputes. It is based on what is widely referred to as the independent tort doctrine:
Florida law does not allow a party damaged by a breach of contract to recover exactly the same contract damages via a tort claim. “It is a fundamental, long-standing common law principle that a plaintiff may not recover in tort for a contract dispute unless the tort is independent of any breach of contract. A plaintiff bringing both a breach of contract and a tort claim must allege, in addition to the breach of contract, “some other conduct amounting to an independent tort.”
Bedoyan v. Samra, 47 Fla.L.Weekly D1955a (Fla. 3d 2022) (internal citations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com
Plehat Brings Natural Environments into Design Tools
May 01, 2019 — Aarni Heiskanen - AEC Business
Natural elements are an essential part of the built environment. However, BIM tools offer almost no support to landscape architecture. Plehat is introducing a new solution that helps architects and decision-makers to understand the dynamics of nature and make smart design choices.
Plehat used photogrammetric 3D models of Uunisaari islands, to the south of Helsinki. The experimenters modeled the buildings and the plants on the island and used game engine software to create a virtual reality (VR) experience. They called the app the “Landscape Time Machine”. The technology solution they developed paved the way for new software that the company will launch later this year.
In 2018, Plehat, a landscape design startup, received funding from the Finnish national KIRA-digi digitalization project to carry out a test. The experimentation demonstrated how seasonal changes and weather conditions affect plants, and how the environment can be visualized and analyzed virtually. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi
Miorelli Doctrine’s Sovereign Immunity in Public Construction Contracts — Not the Be-All and End-All
March 21, 2022 — David Adelstein - Florida Construction Legal Updates
In the Florida commercial contract public arena, there is a sovereign immunity doctrine known as the Miorelli doctrine after 1997 Florida Supreme Court decision, County of Brevard v. Miorelli Eng’g, Inc., 703 So.2d 1049 (Fla. 1997). This doctrine would apply to construction contracts between a contractor and a public body.
Through the years, the Miorelli doctrine stands for the proposition in commercial transactions with a Florida public body “that the doctrine of sovereign immunity precludes recovery of the cost of extra work where claims for that extra work are ‘totally outside’ the terms of the contract.” Monroe County v. Ashbritt, Inc., 47 Fla.L.Weekly D594a (Fla. 3d DCA 2022). See also Asbritt, n.2 quoting Posen Construction v. Lee County, 921 F.Supp.2d 1350, 1356 (M.D.Fla. 2013) (“A claim for damages predicated on work ‘totally outside the terms of the contract‘ is barred by the doctrine of sovereign immunity, whereas damages caused by extra work done at the state’s behest and in furtherance of the contractual covenants (express or implied) are potentially recoverable.”) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com
Contractor Changes Contract After Signed, Then Sues Older Woman for Breaking It
September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
Channel 13 Who TV reported, in Winterset, Iowa, Mary Gregory allegedly signed an estimate for hail damage repair to her home, and was later told by the contractor that it was a contract. When a crew showed up to her home to perform the work, she turned them away. Then, Gregory received a letter from an attorney demanding eight thousand dollars for breach of contract.
It turns out that the contractor altered the estimate Gregory signed and submitted it to the insurance company. According to Who TV, the altered estimate “contained work that Gregory says she didn’t authorize and a price tag of $32,134.” Jim Nelle, the contractor, admitted that he added to the contract after it was signed. He claims he was only trying to help her.
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