Seattle Washington Building Expert Directory

Changes to Va. Code Section 43-13: Another Arrow in a Subcontractor’s Quiver

November 02, 2020 — Christopher G. Hill - Construction Law Musings
As is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting. One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code. This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose. Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer. For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases. A key change in the statute occurred during the 2020 legislative session states as follows:

Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction defect firm Angius & Terry moves office to Roseville

January 09, 2013 — CDJ STAFF
The law firm Angius & Terry LLP has closed its office on River Park Drive in Sacramento and opened a Roseville office that will allow for growth. The new office at 3001 Lava Ridge Court provides more usable space in a nice area for less money, said Brad Epstein, a local partner with the firm. Five attorneys and three staff moved to the new space in Roseville on Jan. 2. “It can house three additional attorneys — and we plan to grow,” Epstein said. The firm specializes in construction defect litigation and general corporate work for community associations. There are about 800 community associations in the Sacramento area and a handful of small firms that divvy up the work. “Condominium developments and homeowners’ associations never die and always have legal issues,” Epstein said. Angius & Terry has a total of 20 lawyers in six offices, four in California and two in Nevada. Besides Roseville, the firm has offices in Walnut Creek, Manteca, Newport Beach, Reno and Las Vegas. Read the court decision
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Challenging Enforceability of Liquidated Damages (In Federal Construction Context)

March 11, 2024 — David Adelstein - Florida Construction Legal Updates
A recent summary judgment opinion from the Armed Services Board of Contract Appeals (ASBCA), Appeals Of – BCI Construction USA, Inc.,ASBCA No. 6257, 2024 WL 773324 (2024), contains a worthy discussion regarding a contractor’s challenge to the government’s assessment of liquidated damages, specifically the enforceability of the liquidated damages rate. Although this challenge is in the federal context, this discussion would be more expansive and apply outside of the federal context. When dealing with the enforceability of a liquidated damages, the ASBCA “examines whether the liquidated damages amount ‘is extravagant, or disproportionate to the amount of property loss, as to show that compensation was not the object aimed at or as to imply fraud, mistake, circumvention or oppression.” Appeals of – BCI Construction USA, Inc. (citation 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

The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations

June 15, 2017 — Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLP
Since 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018. THE NEW LAW – SB 496 SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof. However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists). WHAT CAN BE DONE NOW? Developers and Owners should strongly consider reviewing and revising the indemnity provisions in their consultant contracts to comply with the new legislation before the first of the year. This includes master agreements because project addenda entered into after January 1 are subject to the new law. The statute does not apply to current contracts, so these do not need to be amended. Questions? Newmeyer & Dillion is happy to assist in navigating the process to ensure you are compliant prior to January’s deadline. Please let us know how we can help. Mark Himmelstein is a partner focused in the areas of construction, real estate, business and insurance litigation. He has an in-depth experience in drafting and negotiating construction and real estate contracts. You can reach him at mark.himmelstein@ndlf.com. Jenny Guzman is a litigation associate in the Newport Beach office, focusing her practice in the areas of business and real estate litigation and transactions. You can reach her at jenny.guzman@ndlf.com. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit http://newmeyeranddillion.com/ Read the court decision
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Washington Supreme Court Sides with Lien Claimants in Williams v. Athletic Field

September 30, 2011 — Douglas Reiser, Builders Council Blog

The Washington Supreme Court issued their opinion today on Williams v. Athletic Field, perhaps the most talked about construction law case in the past few years. I have discussed this case exhaustively here on Builders Counsel. Today we have a resolution.

In an unanimous opinion issued today, the high court sided with lien filers who followed a sample form provided in RCW 60.04.091. Additionally, the court found that a lien company - and presumably other persons - could sign the lien for the lien claimant, as an agent, without invalidating the lien.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Traub Lieberman Attorneys Recognized in the 2024 Edition of The Best Lawyers in America®

September 06, 2023 — Traub Lieberman
Related Attorneys: Lisa L. Shrewsberry, Brian C. Bassett, Rina Clemens, Lauren S. Curtis, Scot E. Samis, Anthony Hatzilabrou, Adam P. Joffe, Heather Jones, Ashley Kellgren, Jessica N. Kull, Ryan S. Parker, Nicole E. Shapiro Traub Lieberman is pleased to announce that five Partners have been selected by their peers for inclusion in the 2024 edition of The Best Lawyers in America®. In addition, seven attorneys have been included in the 2024 Best Lawyers®: Ones to Watch list. These recognitions include attorneys from the firm’s Hawthorne, NY; Chicago, IL; Palm Beach Gardens, FL; and St. Petersburg, FL offices. Read the court decision
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Gain in Home Building Points to Sustained U.S. Growth

October 22, 2014 — Michelle Jamrisko and Danielle Trubow – Bloomberg
Builders started work on more homes in September and American consumers this month were the most optimistic in seven years, signaling the U.S. economy will ride out a global slowdown. Housing starts climbed 6.3 percent to a 1.02 million annualized rate from a 957,000 pace in August as multifamily and single-family projects advanced, the Commerce Department reported today in Washington. The Thomson Reuters/University of Michigan preliminary sentiment index for October increased to 86.4, the strongest since July 2007, another report showed. Gains in residential construction will help underpin the economic expansion as the recent drop in mortgage rates lifts home sales and gives builders reason to take on more projects. Other figures showing factory production rebounded last month and claims for jobless benefits dropped last week to the lowest level in 14 years added to evidence the turbulence in global markets has yet to depress the world’s largest economy. Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net; Ms. Trubow may be contacted at dtrubow@bloomberg.net Read the court decision
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Reprinted courtesy of Michelle Jamrisko and Danielle Trubow, Bloomberg

Charles Carter v. Pulte Home Corporation

October 12, 2020 — Michael Velladao - Lewis Brisbois
In Carter v. Pulte Home Corp., __Cal.App.5th__(July 23, 2020), the California Court of Appeal affirmed the entry of judgment in favor of subcontractors in connection with a Complaint for Intervention based on equitable subrogation filed by Travelers Property Casualty Company of America (“Travelers”) seeking to recover defense costs incurred in defending Pulte Home Corporation (“Pulte”) in an underlying construction defect lawsuit. The parties’ dispute arose out of Travelers’ defense of Pulte as an additional insured under policies issued to four subcontractors involved in the underlying construction defect lawsuit. Several subcontractors involved in the underlying construction defect lawsuit refused to defend Pulte based on the indemnity clauses in their subcontracts. Such clauses promised to indemnify Pulte as follows: “all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (“Claims”) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte. . . .” Pulte eventually settled the construction defect lawsuit and its claims against all of the subcontractors. Travelers ultimately paid $320,491.82 for Pulte’s defense and recovered $164,400 from some of the subcontractors. Travelers’ intervention in the underlying lawsuit was intended to recover the remaining $156,091.82 from the subcontractors that refused to indemnify Pulte for the defense of the construction defect lawsuit. In the underlying trial, Travelers argued that the subcontractors were obligated to pay defense costs on a joint and several basis (minus what Travelers had already recovered). The trial court did not agree and held that Travelers was not entitled to equitable subrogation for the remaining defense costs. Read the court decision
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Reprinted courtesy of Michael Velladao, Lewis Brisbois
Mr. Velladao may be contacted at Michael.Velladao@lewisbrisbois.com

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