Judgment Stemming from a Section 998 Offer Without a Written Acceptance Provision Is Void
March 22, 2021 —
Arezoo Jamshidi, Stevie B. Newton & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Mostafavi Law Group, APC v. Larry Rabineau, APC (B302344, Mar. 3, 2021), the California Court of Appeal, Second Appellate District (Los Angeles), addressed an issue of first impression: whether the purported acceptance of a Code of Civil Procedure section 998 (“section 998”) offer lacking an acceptance provision gives rise to a valid judgment. The appellate court held that a section 998 offer to compromise (“998 Offer”) without an acceptance provision is invalid and any judgment stemming from it is void.
In Mostafavi Law Group, plaintiffs sued defendants for defamation per se, among other claims, which was litigated at-length over several years. Defendants served plaintiffs with a written 998 Offer, offering to settle the action for the sum of $25,000.01. The 998 Offer did not specify the manner in which plaintiffs were to accept the offer.
Within the statutory time period for acceptance, plaintiffs’ counsel hand-wrote the following onto the 998 Offer: “Plaintiff Mostafavi Law Group, APC accepts the offer.” That day, plaintiffs also filed a notice of acceptance of the 998 Offer, along with proof thereof, and sent a copy to defendants. The next day, having received the notice of acceptance, defendants advised plaintiffs that they would “draft and send . . . a settlement agreement for . . . signature” before paying the settlement funds.
Reprinted courtesy of
Arezoo Jamshidi, Haight Brown & Bonesteel LLP,
Stevie B. Newton, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Newton may be contacted at snewton@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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A Lawyer's Perspective on Current Issues Dominating the Construction Industry
March 28, 2022 —
Melanie A. McDonald - Saxe Doernberger & VitaSome of the hot topics dominating the construction industry today include the impacts of COVID-19, government testing and vaccine mandates, cyber security, and the evolving role of general counsel. This article provides a summary review of those topics.
a. The Economic Impact of COVID-19 for Project Owners
Project owners have been placed in a precarious position because courts across the country have almost unanimously ruled that insurance carriers are not liable for COVID-19-related business income losses.1 While project owners have sought alternative ways to mitigate losses resulting from COVID-19, many of these efforts have been negated by the exponential increase in materials costs.2 Thus, it remains unclear what, if any, solutions project owners have at their disposal.
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Melanie A. McDonald, Saxe Doernberger & VitaMs. McDonald may be contacted at
MMcDonald@sdvlaw.com
No Coverage for Additional Insured After Completion of Operations
March 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Fifth Circuit held there was no duty to defend an additional insured for alleged negligence after completion of the project. Woodward v. Acceptance Indemn. Ins. Co., 2014 U.S. App. LEXIS 2569 (5th Cir. Feb. 11, 2014).
Pass Marianne, L.L.C. contracted for the construction of condominiums. The general contractor was Woodward. DCM Corporation, L.L.C. was a subcontractor for the concrete work. DCM worked on the project from January to October 2006. The entire project was completed in August 2007. Pass Marianne sold the condominiums to Lemon Drop Properties in October 2007.
Lemon Drop sued Pass Marianne and Woodward a year after purchasing the condominium. Pass Marianne filed a cross-claim against Woodward alleging faulty construction and damage arising out of the construction. The claims were arbitrated. A significant issue in the arbitration was the fault of the concrete subcontractor, DCM.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Doing Construction Lead Programs the Right Way
October 16, 2018 —
Natalie Craigmile - Construction InformerRunning a construction business takes hard work. When you are working on a job, it can be difficult to find time to spend on marketing and advertising. If you are short on time, buying leads through construction lead programs could be a good way to meet new customers, grow your business, and find your next job. Keep reading to learn more about some of the pros and cons of buying leads.
A construction lead generation service exists solely to connect home owners with local home improvement contractors. They market across different construction specialties and reach customers who are looking for construction companies. Once they capture the ‘lead’, which is essentially the contact information and a few project details of that potential customer, they sell the lead to one or more local contractors in their network.
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Natalie Craigmile, Construction Informer
Wait, You Want An HOA?! Restricting Implied Common-Interest Communities
September 17, 2018 —
Neil McConomy - Snell & Wilmer Real Estate Litigation BlogWhile the butt of many jokes and a thorn in the side of some property owners, homeowners associations (“HOAs”) serve the vital function of collecting and disbursing funds to care for and maintain common areas of residential developments. Without HOAs, neighborhood open spaces, parks, and other amenities risk falling into disrepair through a type of tragedy of the commons, wherein residents use such amenities but refuse to subsidize care and maintenance for these common areas believing someone else will pony-up the funds. HOAs, when properly organized and managed, avoid this problem by ensuring everyone pays their fair shares for the common areas. Colorado’s Common Interest Ownership Act (“CCIOA”), C.R.S. § 38-33.3-101 et seq., sets forth the manner in which such common-interest communities, and their related associations, must be established.
Earlier this summer, the Colorado Supreme Court issued an opinion limiting the application of previous case law that allowed for the establishment of common-interest communities (and their related HOAs) by implication. See McMullin v. Hauer, 420 P.3d 271 (Colo. 2018). Prior to McMullin, Colorado courts had been increasing the number of factual scenarios implying the creation of common-interest communities under CCIOA. See e.g., Evergreen Highlands Assoc. v. West, 73 P.3d 1 (Colo. 2003) (finding an implied obligation of landowners to fund a pre-existing HOA’s obligations); DeJean v. Grosz, 412 P.3d 733 (Colo. App. 2015) (finding an implied right of a homeowner to found an HOA after the developer filed a declaration expressing an intent to form one but ultimately failed to do so); and Hiwan Homeowners Assoc. v. Knotts, 215 P.3d 1271 (Colo. App. 2009) (finding the existence of an HOA despite no common property existing within the development). The McMullin opinion highlights the importance of strict compliance with CCIOA to preserve common areas in a development, ensure the ability to fund maintenance of such areas, and avoid future litigation.
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Neil McConomy, Snell & WilmerMr. McConomy may be contacted at
nmcconomy@swlaw.com
New EPA Regulation for Phase I Environmental Site Assessments
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFThe EPA recently amended the “’All Appropriate Inquiries Rule’ concerning environmental site assessments of potentially contaminated sites,” reports the Schinnerer Risk Management Blog. Engineers will need to be aware that “Phase I assessments should now reference ASTM International’s E1527-13 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process” in order to comply with the All Appropriate Inquiries Rule.”
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Saved By The Statute: The Economic Loss Doctrine Does Not Bar Claims Under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law
May 10, 2021 —
Gus Sara - The Subrogation StrategistIn Earl v. NVR, Inc., No. 20-2109, 2021 U.S. App. LEXIS 6451, the U.S. Court of Appeals for the Third Circuit (Third Circuit) considered whether, under Pennsylvania law, the plaintiff’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) claims against the builder of her home were barred by the economic loss doctrine. The UTPCPL is a Pennsylvania statute that prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” 73 Pa. Stat. Ann. § 201-3. The Third Circuit previously addressed the impact of the economic loss doctrine on UTPCPL claims in Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002). In Werwinski, the court held that the plaintiff’s UTPCPL claim was barred by the economic loss doctrine. The Court of Appeals overturned its decision in Werwinski and held that the economic loss doctrine does not bar UTPCPL claims since such claims are statutory, and not based in tort.
In Earl, the plaintiff, Lisa Earl, entered into an agreement with defendant NVR, Inc. (NVR) for the construction and sale of a home in Allegheny County, Pennsylvania. Ms. Earl learned of the home through NVR’s marketing, which described the home as containing “quality architecture, timeless design, and beautiful finishes.” Ms. Earl alleged that during the construction of the home, she had further discussions with agents of NVR, who made representations that the home would be constructed in a good and workmanlike manner and that any deficiencies noted by Ms. Earl would be remedied. The defendant also assured Ms. Earl that the home would be constructed in accordance with relevant building codes and industry standards. After moving into the home, Ms. Earl discovered several material defects in the construction. She provided notice of these defects to NVR, but NVR’s attempts to repair some of the defects were inadequate.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
FBI Makes Arrest Related to Saipan Casino Construction
April 05, 2017 —
Matthew Campbell & Greg Farrell - BloombergThe Federal Bureau of Investigation arrested one person in connection with the death of a construction worker at Imperial Pacific International Holdings Ltd.’s casino on the remote U.S. island of Saipan, according to an agency spokeswoman.
“The FBI conducted a search and made an arrest in response to the recent death of an individual working at the construction site of the Imperial Pacific Resort,” Michele Ernst, a spokeswoman in the FBI’s Honolulu field office, said in an email Friday. “The investigation is related to allegations of a federal violation of the workplace visa system, including reports the company was systematically harboring individuals who are out of status and in violation of federal statutes."
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Matthew Campbell, Bloomberg and
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