Client Alert: Court Settles Conflict between CCP and Rules of Court Regarding Demurrer Deadline Following Amended Complaint
August 20, 2014 —
R. Bryan Martin and Kristian B. Moriarty - Haight Brown & Bonesteel LLPIn Carlton v. Dr. Pepper Snapple Group, Inc. (No. E056566, filed 8/14/2014), The Court of Appeal, Fourth Appellate District, held a demurrer was timely filed in compliance with California Code of Civil Procedure (“CCP”) section 471.5, despite being filed after the 10-day filing period prescribed in California Rule of Court 3.1320(j).
This case appears to settle the conflict that existed between the CCP and the Rules of Court as to the timing of demurrers following amendments to Complaints. Prior to this case, the validity of Rule of Court 3.1320(j)(2) was unclear as it arguably conflicted with CCP Section 471.5, which requires defendants to “answer” an amended complaint within 30 days after service. At the same time, it was not clear that CCP Section 471.5 applied to amendments after a demurrer had been sustained, and it was even more unclear whether the statutory 30-day period to “answer” an amended complaint foreclosed the shorter 10-day period prescribed under Rule of Court 3.1320(j)(2) for a demurrer or motion to strike.
On July 15, 2011, Plaintiff filed a Complaint against Dr. Pepper Snapple Group, Inc. (“Dr. Pepper”) and others. On October 24, 2011, Plaintiff filed a First Amended Complaint (“FAC”). Dr. Pepper demurred to the FAC on various grounds. On January 5, 2012, the trial court sustained the demurrer in part, and overruled it in part. The Court granted Plaintiff 30 days to amend the FAC.
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
Read the court decisionRead the full story...Reprinted courtesy of
Contractor Entitled to Defense for Alleged Faulty Workmanship of Subcontractor
February 10, 2020 —
Tred R. Eyerly - Insurance Law HawaiiApplying Nevada law, the Federal District Court in Florida found that the general contractor was entitled to a defense of claims based upon alleged faulty workmanship of a subcontractor. KB Home Jacksonville LLC v. Liberty Mutual Fire Ins. Co, 2019 U.S. Dist. LEXIS 151235 (M.D. Fla. Sept 5, 2019).
KB Home completed six residential developments utilizing various subcontractors. One subcontractor was Florida State Plastering, LLC (FSP) for installing stucco. Eighty-eight complaints against KB Home implicated FSP's stucco work. Plaintiffs alleged that the stucco subcontractor's work suffered from construction defects, causing damages not only to the exterior stucco, but also the underling wire lath, paper backing, house wrap, wood sheathing, interior walls, interior floors and other property.
Ironshore insured FSP under a CGL policy. KB Home was an additional insured for liability for property damage caused by "your work." KB Home was also insured under its own CGL policy with Liberty Mutual. Both insurers refused to defend.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Sensible Resurgence of the Multigenerational Home
August 13, 2014 —
Chris Farrell – BloombergOne of the biggest fears spawned by the recession and subsequent up-and-down recovery is getting stuck at home. The commonly expressed concern is that millennials are too burdened with student debts and poor job prospects to make it on their own. According to the narrative of generational dependency, the resurgence in multigenerational living is a trend hardly worth celebrating.
Or is it? Yes, many young college graduates have faced tough economic circumstances in recent years. But the trend toward embracing the multigenerational home began well before the Great Recession, suggesting something else is at work. A record 57 million Americans, or 18.1 percent of the population, lived in a multigenerational household in 2012, according to a Pew Research report, “In Post-Recession Era, Young Adults Drive Continuing Rise in Multi-Generational Living,” released on June 17, 2014. (You can include the First Family among the multigenerational households.) That’s up from 28 million, or 12.1 percent of the population, in 1980. Equally impressive, the return of the multigenerational household marks a striking reversal of the post-World War II decline. In 1940, 24.7 percent of the population resided in a multigenerational home, a living arrangement that bottomed in the early 1980s.
Read the court decisionRead the full story...Reprinted courtesy of
Chris Farrell, Bloomberg
Schools Remain Top Priority in Carolinas as Cleanup From Storms Continues
November 06, 2018 —
Joanna Masterson - Construction ExecutiveA month after Hurricane Florence dumped more than 30 inches of rain on the Carolinas, Hurricane Michael delivered additional flash flooding, power outages and wind damage.
While the construction-related impact of Hurricane Michael is still being assessed (stay tuned for more on that front in the coming weeks), Moody’s Analytics estimates total property damage from Florence at $17 billion to $22 billion, factoring in losses from homes, roads, crops, livestock, coal ash ponds and more.
While it’s difficult to pinpoint which counties were hit the hardest, the majority of the damage was in the eastern coastal areas of North Carolina. According to Rob Beale, a vice president in W.M. Jordan’s Wilmington, North Carolina, office, Carteret and Onslow counties took the brunt of the storm, while Columbus and Brunswick counties experienced the biggest flooding impact.
Reprinted courtesy of
Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Presenting a “Total Time” Delay Claim Is Not Sufficient
September 12, 2022 —
David Adelstein - Florida Construction Legal UpdatesWhen presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss.
In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Excess Carrier's Declaratory Judgment Action Stayed While Underlying Case Still Pending
June 11, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe federal district court determined the excess carrier's declaratory judgment action to establish it had no coverage obligations should be stayed while the underlying case was still pending. Scottsdale Ins. Co. v. Ortiz & Assocs., 2014 U.S. Dist. LEXIS 64286 (D. Ore. May 9, 2014).
The subcontractor's employee was killed on the job site when struck by a dump truck owned by the general contractor, Inland Asphalt Co. Island was sued for wrongful death. Island was an additional insured under the subcontractor's primary policy and excess policy with Scottsdale.
Inland put Scottsdale on notice of the underlying wrongful death lawsuit, but did not tender its defense to Scottsdale.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy
April 03, 2023 —
David Adelstein - Florida Construction Legal UpdatesBuilder’s risk insurance coverage is a vital property insurance coverage during the course of construction. Builder’s risk insurance is not a one-size-fits-all product so please make sure you are working with your insurance broker to procure this product that factors in and covers risk associated with the project.
Builder’s risk insurance is typically an occurrence-based policy. No different than other occurrence-based policies (such as commercial general liability), a dispute may arise as to the occurrence. This could be due to the triggering of the actual policy during the coverage period or it could be due deductible obligations, as in the case discussed below. When dealing with a builder’s risk insurance policy–again, no different than any policy–the language in the policy matters. Definitions used in the policy to define specific terms matter and, in numerous cases, the ordinary dictionary meanings of terms matter. But it all starts with the policy language.
In KT State & Lemon, LLP v. Westchester Fire Insurance Co., 2023 WL 2456499 (M.D.Fla. 2023), a builder’s risk policy provided coverage from April 2018 through the end of November 2019. There was a $50,000 per occurrence deductible for loss caused by or from water damage. An extension to the builder’s risk policy was negotiated through the end of January 2020 that increased this water damage deductible to $250,000 per occurrence. During construction and the testing of the fire suppression (sprinkler) system, leaks started to occur resulting in water damage. Two leaks occurred in September 2019, one leak in October 2019, one leak in November 2019, and two leaks in December 2019 (during the extension and higher water damage deductible period).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Colorado House Bill 19-1170: Undefined Levels of Mold or Dampness Can Make a Leased Residential Premises Uninhabitable
April 03, 2019 —
Steve Heisdorffer - Colorado Construction LitigationOne of the 407 bills the Colorado legislature is considering as of the date of this blog post is House Bill 19-1170, the Residential Tenants Health and Safety Act, which can be found at https://leg.colorado.gov/bills/hb19-1170 and clicking on the link for the recent bill text. The bill passed the House on February 26 and is in the Senate for consideration. The bill currently adds two substantive conditions to those conditions that make a residential premises uninhabitable. One is the lack of functioning appliances that conformed to applicable law when installed and that are maintained in good working order. The second is “mold that is associated with dampness, or there is any other condition causing the premises to be damp, which condition, if not remedied, would materially interfere with the health or safety of the tenant…,” referred to here as “the mold or dampness provision.” The bill also amends various procedural provisions of Colorado law to make enforcement by a tenant easier and broadens tenant remedies. The bill grants jurisdiction to county and small claims courts to grant injunctions for breach. This article focuses on the mold or dampness provision.
The mold or dampness provision is vague and will likely lead to abuse. First, there is mold everywhere. While expert witnesses routinely testify about the level of exposure that is unacceptable, no generally accepted medical standards for an unacceptable level of mold exposure currently exist, and each person reacts to mold differently. There is no requirement in the bill that mold exposure exceed levels that are generally considered harmful by experts in the field, or even in excess of naturally occurring background levels. Second, some sources estimate that there are over 100,000 different species of mold. No harmful effects have been shown for many species of mold, while other species of mold are considered harmful.
Read the court decisionRead the full story...Reprinted courtesy of
Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com