FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Landmark Contractor Licensing Case Limits Disgorgement Remedy in California

November 09, 2020 — Candace Matson - Construction & Infrastructure Law Blog
Contractors performing work in California are required to be licensed by the California State License Board (“CSLB”). Cal. Bus. & Prof. Code §7065. Except for sole proprietors, contractors are typically licensed through “qualifiers,” i.e., officers or employees who take a licensing exam and meet other requirements to become licensed on behalf of the contractor’s company. Contractors who perform work in California without being properly licensed are subject to a world of hurt, including civil and criminal penalties (see, e.g., Cal. Bus. & Prof. Code §§ 7028, 7028.6, 7028.7, 7117, and Cal. Labor Code §§ 1020-1022), and the inability to maintain a lawsuit to recover compensation for their work. Cal. Bus & Prof. Code § 7031(a); Hydra Tech Systems Ltd. v. Oasis Water Park, 52 Cal.3rd 988 (1991). But arguably the worst ramification of not being property licensed is that established in Business & Professions Code Section 7031(b), which provides that any person who uses the services of an unlicensed contractor may bring an action for the return of all compensation paid for the performance of the work, commonly known as “disgorgement.” This remedy is particularly harsh (often described as “draconian”) because it makes no allowance for the fact that an unlicensed contractor will likely have already paid out the bulk of its compensation to its subcontractors, suppliers and vendors, but nevertheless can be ordered to disgorge all compensation. Read the court decision
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Reprinted courtesy of Candace Matson, Sheppard Mullin
Ms. Matson may be contacted at cmatson@sheppardmullin.com

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Effective Zoning Reform Isn’t as Simple as It Seems

July 03, 2022 — Yonah Freemark & Lydia Lo - Bloomberg
The Biden Administration’s Housing Supply Action Plan, unveiled last week, aims to help close America’s shortfall of almost 4 million housing units and subdue the nation’s skyrocketing home prices. At the top of its list of action items is a promise to provide federal grants as a reward to communities that alter land-use policies to promote density, an approach the administration is already piloting. But identifying the land-use policies that most effectively add housing is harder than it seems. Mounting evidence indicates that one-off reforms such as eliminating single-family-only zoning aren’t adequate. To make meaningful progress in building homes, municipalities have to do more. The Biden plan doesn’t detail how it will determine which types of policies will make a community eligible for these federal grants. But to meet the administration’s housing goals, we recommend it require that local governments seeking grants both show that their zoning changes are actually producing additional housing units, and also that their reforms include the full array of land-use policies that affect housing affordability. Read the court decision
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Reprinted courtesy of Bloomberg

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National Demand Increases for Apartments, Refuting Calls for Construction Defect Immunity in Colorado

September 08, 2016 — Jesse Witt – The Witt Lawfirm
For the last four years, the homebuilders’ lobby has been aggressively pushing the idea that consumer protection laws are stifling condominium construction in Colorado. The lobbyists claim that the fear of liability for construction defects has forced many local developers to build apartments instead of condominiums. They have dismissed the notions that the shift to apartments merely reflects supply and demand, or that modern families might actually prefer to rent rather than buy. To support this theory, they have touted high condominium sales in other states. A new story from NPR’s Here & Now refutes this claim, however. Contrary to what the lobbyists have been saying, data now confirm that large numbers of Americans prefer to rent, not buy, their homes. NPR reported today that home ownership in the U.S. fell to its lowest rate since 1965, while the share of U.S. households who rent is nearing a 50-year high. This trend appears nationwide and can hardly be blamed on consumer protection laws in Colorado. Reprinted courtesy of Jesse Howard Witt, Acerbic Witt Read the full story... Read the court decision
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Mr. Witt welcomes comments at www.witt.law

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World Cup May Pull Out of Brazil because of Construction Delays

January 28, 2014 — Beverley BevenFlorez-CDJ STAFF
Back in October of last year, CNN reported that a judge suspended construction at one of the stadiums being built for this summer’s World Cup in Brazil. The judge stated that the dangers for construction workers included "being buried, run over, falling from heights and being hit by material, among other serious risks,” according to CNN. Recently, the Los Angeles Times reported that FIFA is threatening to pull out of Brazil because of construction delays: “We cannot organize a match without a stadium,” Jerome Valcke, FIFA’s secretary general, as quoted in the Los Angeles Times. “This has reached a critical point.” The deadline for completion of the 12 World Cup stadiums was January 1st, but various delays—including “fatal construction accidents at stadiums in Sao Paulo, Brasilia, and Manaus” as well as worker walk offs over pay—forced FIFA to “relax” the deadline. Read the full story at CNN... Read the full story at the Los Angeles Times... Read the court decision
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Client Alert: California’s Unfair Competition Law (B&P §17200) Preempted by Federal Workplace Safety Law

September 24, 2014 — R. Bryan Martin, Yvette Davis, & Kristian Moriarty - Haight Brown & Bonesteel LLP
In Solus Industrial Innovations LLC v. Superior Court (No. G047661, filed 9/22/2014) (“Solus”) the California Court of Appeal, Fourth Appellate District, held California’s Unfair Competition Law (Business & Professions Code §17200) is preempted by the federal Occupational Safety and Health Act of 1970 (“Fed/OSHA”) because the Unfair Competition law, as approved by the United States Secretary of Labor, does not include any provision for civil enforcement of workplace safety standards by a state prosecutor through a complaint for penalties. Solus Industrial Innovations, LLC (“Solus”) is a plastics manufacturer. In 2007, Solus installed a residential water heater at its commercial facility in Orange County. The water heater exploded in March 2009, killing two workers. California’s Division of Occupational Safety and Health (“Cal/OSHA”) investigated and determined the explosion was caused by a failed safety valve and lack of any proper safety feature on the water heater. Cal/OSHA charged Solus with five violations of Title 8 of the California Code of Regulations. Because deaths were involved, Cal/OSHA forwarded the results of its investigation to the Orange County District Attorney. In March 2012, the Orange County District Attorney filed criminal charges against Solus’ plant manager and maintenance supervisor. The District Attorney also filed a civil action against Solus, including two causes of action for violation of California Business & Professions Code §17200 – the Unfair Competition Law (“UCL”). The action sought civil penalties under the UCL in the amount of $2,500 per day, per employee, from November 29, 2007 through March 19, 2009. Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys R. Bryan Martin, Yvette Davis and Kristian Moriarty Mr. Martin may be contacted at bmartin@hbblaw.com Ms. Davis may be contacted at ydavis@hbblaw.com Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?

October 19, 2020 — Walter J. Andrews, Michael S. Levine, Andrea DeField & Meagan R. Cyrus - Hunton Insurance Recovery Blog
As Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake. Hurricane Laura is expected to make landfall as a Category 4 storm tonight, or early Thursday morning between Houston, Texas and Lake Charles, Louisiana. With wind speeds reaching over 120 mph, Laura has the potential for catastrophic damage to life and property and long-term disruption of normal business operations. The following three steps are crucial to ensuring that you protect your property and business and maximize insurance proceeds should your property fall in the path of this storm:

1. Locate a copy of your policy. Having your policy on hand prior to a loss will aid in starting your claim as soon as possible, as it may be more difficult to get in touch with your broker following a storm where thousands of claims are taking place simultaneously.

Reprinted courtesy of Walter J. Andrews, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth, Andrea DeField, Hunton Andrews Kurth and Meagan R. Cyrus, Hunton Andrews Kurth Mr. Andrews may be contacted at wandrews@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Ms. DeField may be contacted at adefield@HuntonAK.com Ms. Cyrus may be contacted at mcyrus@HuntonAK.com Read the court decision
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Even with LEED, Clear Specifications and Proper Documentation are Necessary

December 31, 2014 — Christopher G. Hill – Construction Law Musings
A recent lawsuit filed in California over the proper documentation necessary for LEED certification (discussed in detail at the Green Building Law Update) emphasizes the fact that, no matter how detailed the LEED certification process seems to be, a mere reference to that process or a certain level of LEED certification is far from sufficient to assure a smooth project. While I don’t practice in California and don’t have any idea how the lawsuit will turn out, the fact that there is litigation over even the basics of LEED like documentation shows the clear necessity to make sure that your specifications and contract documents are specific and clear from the beginning. Owners, General Contractors and Subcontractors need to remember this fact at all times and particularly in situations where, like in the instance of LEED, the “specification” seems to be set out by others. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Bremer Whyte Sets New Precedent in Palos Verdes Landslide Litigation

August 26, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
In what is believed to be a groundbreaking new precedent, Bremer Whyte Brown & O’Meara’s Los Angeles litigation team has obtained a landmark ruling on behalf of residents in the “Portuguese Bend” neighborhood of Palos Verdes, California. Congratulations to Partner Michael D’Andrea and Senior Associate Shelly Mosallaei in receiving this result for our clients. Plaintiff, a real estate developer, sued a number of local residents and property owners, including our client, alleging that their failure to address landslides and geological disturbances around Plaintiff’s property constituted a legal trespass and nuisance. Plaintiff alleged that its plans to develop multiple lots in Palos Verdes was thwarted because Defendant’s soil and land encroached onto Plaintiff’s property. Plaintiff’s suit against multiple residents created an uproar in the community regarding who was ultimately responsible (if anyone) for natural soils movement that has plagued this neighborhood for years. Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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