Court of Appeal Holds That Higher-Tiered Party on Construction Project Can be Held Liable for Intentional Interference with Contract
December 07, 2020 —
Garret Murai - California Construction Law BlogIn
Caliber Paving Company, Inc. v. Rexford Industrial Realty and Management, Inc., Case No. G0584406 (September 1, 2020), the 4th District Court of Appeal examined whether a higher-tiered party on a construction project can be held liable for intentional interference with contract when it interferes with the contract between lower-tiered parties even though the higher-tiered party has an economic interest in the contract between the lower-tiered parties.
The Caliber Paving Case
Project owner Rexford Industrial Realty and Management, Inc. owns and operates industrial property throughout Southern California. In 2017, Rexford hired contractor Steve Fodor Construction to perform repaving work at Rexford’s property in Carson, California.
Fodor Construction in turn hired subcontractor Caliber Paving Company, Inc. to perform the repaving work. The subcontract divided the parking lot into four areas, with separate costs to repave each area, and Caliber completed its work in one area in June 2017.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Alexander Moore Promoted to Managing Partner of Kahana Feld’s Oakland Office
May 08, 2023 —
Alexander R. Moore - Kahana FeldKahana Feld is pleased to announce that Alexander R. Moore, Esq., has been promoted to Managing Partner of our Oakland office. Mr. Moore has been at Kahana Feld since 2021 and is a member of the construction defect and general liability practice groups.
Mr. Moore has over 23 years of experience representing individual and commercial clients in complex disputes arising out of construction contracts, construction defect allegations, premises liability matters, landlord-tenant disputes, and contractual disputes arising out of various business relationships involving financial services companies, technology companies, telecommunications companies, real estate brokerages, non-profits, and a range of small businesses. When not focused on litigation, Mr. Moore enjoys consulting on transactional matters including the development of construction and business contracts. He has extensive experience evaluating rights and obligations under construction contracts and related insurance programs. He also assists clients in the implementation of pre-litigation risk management strategies.
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Alexander R. Moore, Kahana FeldMr. Moore may be contacted at
amoore@kahanafeld.com
Sometimes You Get Away with Unwritten Contracts. . .
July 28, 2018 —
Christopher G. Hill - Construction Law MusingsI have spoken often regarding the need for a well written construction contract that sets out the “terms of engagement” for your construction project. A written construction contract sets expectations and allows the parties to the contract to determine the “law” of their project. An unwritten “gentleman’s agreement” can lead to confusion, faulty memories, and more money paid to construction counsel than you would like as we lawyers play around in the grey areas.
One other area where the written versus unwritten distinction makes a difference is in the calculation of the statute of limitations. In Virginia, a 5 year statute of limitations applies to written contracts while a 3 year statute of limitations applies to unwritten contracts. This distinction came into stark relief in the case of M&C Hauling & Constr. Inc. v. Wilbur Hale in the Fairfax, Virginia Circuit Court. In M&C Hauling, M&C provided hauling services to the defendant through a subcontract with Hauling Unlimited in 2014, the last of which was in July. M&C provided over 2000 hours of hauling and provided time tickets (that were passed to Mr. Hale on Hauling Unlimited letterhead and signed by Mr. Hale or his agent) and an invoice stating the price term of $75.00 per hour. No separate written contract between M&C and Hauling Unlimited or Mr. Hale existed.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners
August 10, 2017 —
Garret Murai - California Construction Law BlogEarlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895 et seq.) which applies to construction defects in newly constructed residential properties including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003.
The California Court of Appeals for the Fourth District, in Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, held that the Right to Repair Act does not provide the exclusive remedy when pursing claims for construction defects involving “actual” property damage (e.g., a defectively constructed roof causing actual physical damage due to water intrusion as opposed to a defectively constructed roof that while constructed improperly does not cause actual physical damage). However, the California Court of Appeals for the Fifth District, in McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132, which is currently pending before the California Supreme Court, held that the Right to Repair Act does in fact provide the exclusive remedy when pursuing claims for construction defects whether they involve “actual” property damage or merely “economic” damages. For homeowners, they would prefer the option of pursuing remedies under either or both the Right to Repair Act (which includes detailed pre-litigation procedures and statutory construction standards) or under common law claims such as negligence (which do not include pre-litigation procedures and have more flexible standards of care).
The California Court of Appeals for the Third District has now thrown its hat into the ring . . . on the side of McMillan.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Hilary Soaks California With Flooding Rain and Snarls Flights
August 21, 2023 —
Brian K. Sullivan & Brian Wingfield - BloombergThe remnants of Tropical Storm Hilary pummeled California with record rains on Monday, disrupting flights but sparing its largest cities from widespread destruction.
Across the region, “the ongoing and historic amount of rainfall is expected to cause life-threatening to locally catastrophic” floods, along with landslides and mudslides, the National Hurricane Center said in a notice early Monday.
The storm, now a post-tropical cyclone, has weakened since coming ashore in California late Sunday. As of early Monday, it had maximum sustained winds of about 35 miles (56 kilometers) per hour and is forecast to move across Nevada and dissipate on Monday.
Hilary, a rare storm to hit the Southwest, could bring a year’s worth of rain to parts of a region famous for its usually balmy weather. Heavy rain and flash flooding have already disrupted transportation, and officials warned residents to stay off the roads. In the last 10 years, flooding from rainfall has caused the most deaths from hurricanes and tropical storms in the US.
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Bloomberg
Insurers' Motion to Void Coverage for Failure to Attend EUO Denied
January 04, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer's motion for summary judgment and disposal of the insureds' claim due to failure to attend an examination under oath (EUO) was denied. Perkins v Syndicate 4242 of Lloyd's of London, 2022 U.S. Dist. LEXIS 196922 (W.D. La. Oct. 28, 2022).
The insureds' home suffered damage from Hurricane Laura on August 27, 2020, and Hurricane Delta on October 9, 2020. The insureds reported damage after Hurricane Laura under the homeowners policy. They filed suit in August 2021, alleging that Lloyds failed to adequately inspect their claims. The court issued a Case Management Order (CMO) that governed initial disclosures and the parties' participation in a streamlined settlement process for hurricane claims. The dispute did not settle, however, so the matter was set for a bench trial.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
How Many Bridges Does the Chesapeake Bay Need?
August 03, 2022 —
Ethan McLeod - BloombergSteve Kline, a 7th-generation Marylander, knows well the vacation tradition of driving across the twin spans of the Chesapeake Bay Bridge for trips to the beach resort of Ocean City. His grandfather, an ironworker, helped build the bridge’s first span, which opened in 1952.
He’s also very familiar with another seasonal rite: wading through the infamous miles-long traffic backups that last from Memorial Day through the end of summer.
But Kline, president of the nonprofit Eastern Shore Land Conservancy, is not on board with the state’s proposed multibillion-dollar fix — a new 4.3-mile-long crossing, to be built alongside the two current spans of the Bay Bridge. In April, the Maryland Transportation Authority (MDTA) announced it had received federal approval to use this route for a potential new, wider bridge that would be likely to eventually replace its older siblings, addressing the notorious summer bottlenecks for decades to come. And on June 10, at a press conference held near the bridge’s eastbound ramp, Maryland Governor Larry Hogan announced that he would commit $28 million in bridge toll revenue to fund the second phase of an environmental impact study on the idea.
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Ethan McLeod, Bloomberg
Will Claims By Contractors on Big Design-Build Projects Ever End?
February 27, 2023 —
Richard Korman - Engineering News-RecordIn the annals of construction disputes, it is a blip, not a blast.
After a Flatiron Construction-Zachry Group joint venture struck out on most of its arbitrated claims against engineering firm partners on the I-85/385 design-build interchange project in Greenville, S.C., and had others dismissed in court, the contractors had one more source from which to try to cover unexpected project costs: a contractor protective professional policy. Flatiron-Zachry filed a lawsuit last October in San Antonio federal court to try to force payment from Steadfast, a subsidiary of Zurich American Insurance Co.
Reprinted courtesy of
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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