SB800 Not the Only Remedy for Construction Defects
October 01, 2013 —
CDJ STAFF“We anticipate an increase in residential construction defect litigation in response to this ruling,” David Frenznic, a construction defect lawyer at Wilke, Fleury, Hoffelt, Gould & Birney LLP told the Central Valley Business Times. Mr. Frenznic was responding to an August ruling by the California Court of Appeals that found that SB800 does not create the only remedy for homeowners with construction defects.
“Homeowners who suffer actual damage as a result of construction defects have a choice of remedies,” said Mr. Frenznick. SB800 established a shorter statute of limitations for construction defect claims, however, “the ruling makes clear that common law claims are still governed by the longer statues of limitations.”
Read the court decisionRead the full story...Reprinted courtesy of
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
You Are on Notice: Failure to Comply With Contractual Notice Provisions Can Be Fatal to Your Claim
September 26, 2022 —
Jenifer B. Minsky - ConsensusDocsImagine your firm is the construction manager on a multi-million-dollar project. At the end of the project you are five million dollars out-of-pocket. You have a stack of claims for additional and extended work which led to the overrun, payment for which will easily cover the shortfall. However, the owner refuses to compensate you until you can satisfactorily answer their inquiry: “Where are the notices that are expressly required under the terms of the contract?” You had a good relationship with the owner’s field representative who was aware you were performing the work and understood that your company was compiling claims. The once cooperative owner, now suffering financial restraints of their own, is resolute in their refusal leaving you no choice but to expend substantial sums of money to litigate the claims, the success of which is far from assured.
What Contract Language Can Be A Trap For An Unwary Contractor?
While courts are generally hesitant to order a forfeiture and some courts disfavor condition precedents, a judge’s hands may be tied by particular contract language requiring the strict enforcement of notice requirements. Such provisions may include: (1) an explicit clause that there be precise compliance with notice requirements; (2) express consequences for noncompliance (e.g., if the required notice is not provided the claim will be waived, forfeited or abandoned); (3) a statement that the notice requirements are a condition precedent to recovery; (4) language such as “if,” “provided that,” “or else” or “on condition that” (e.g., the owner shall review the claim, “provided such claim” was received within the applicable notice period) or (5) prohibition of any waiver of the notice requirement. To the extent the notice provision includes such language, a contractor can be without recourse even when the owner has actual knowledge of the claims or cannot show prejudice by the lack of notice.
Read the court decisionRead the full story...Reprinted courtesy of
Jenifer B. Minsky, Peckar & Abramson, P.C.Ms. Minsky may be contacted at
jminsky@pecklaw.com
California’s Skilled and Trained Workforce Requirements: Public Works and AB 3018, What You Need to Know
December 09, 2019 —
Brenda Radmacher & Nicholas Krebs - Gordon & Rees Construction Law BlogDo you have the proper skilled and trained workforce for your construction projects? If you take on public works projects in California, you may not be in compliance with the new changes in the law. To avoid civil penalties or nonpayment and potentially being precluded from future bids on public works contracts, you must critically review your team and proposal prior to accepting an award. Once awarded a public contact requiring a skilled and trained workforce, diligent reporting practices and oversight are required to maintain compliance.
Compliance with California’s skilled and trained workforce requirements for contractors, engineers, architects, design professionals, and suppliers competing for public works construction projects in California is mandated through enforcement with the enactment of AB 3018. Signed by Governor Brown in his last legislative session, AB 3018 dramatically increased the penalties for non-compliance with the existing skilled and trained workforce requirements in California. The new penalties include civil fines by the Labor Commissioner up to $10,000 per month per non-compliant contractor, disqualification from bidding on future public works contract, and withholding of payment for delinquent contractors. This update provides information on California’s skilled and trained workforce requirements, identifies key issues on compliance to avoid penalties, and discusses the impact of enforcement on construction professionals’ business practices.
Reprinted courtesy of
Brenda Radmacher, Gordon & Rees Scully Mansukhani and
Nicholas Krebs, Gordon & Rees Scully Mansukhani
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Krebs may be contacted at nkrebs@grsm.com
Read the court decisionRead the full story...Reprinted courtesy of
Supreme Court Finds Insurance Coverage for Intentional (and Despicable) Act of Contractor’s Employee
July 21, 2018 —
Garret Murai - California Construction Law BlogNot to cast shade on your fun in the sun, but here’s an unusual, albeit sad and creepy, one for you. I’m bummed even writing about this one.
In Liberty Surplus Insurance Corporation v. Ledesma & Meyer Construction Company, Inc., Case No. S236765 (June 4, 2018), the California Supreme Court addressed whether a general contractor’s commercial general liability carrier was obligated to defend and whether the carrier was liable for damages sustained by a young girl who was molested by an employee of the general contractor during construction at a school. At issue was whether the policy’s definition of an “occurrence,” which was defined, like most policies, as “an accident,” was triggered by the “intentional” and clearly not accidental act of the general contractor’s employee.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel, Rosen, Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Pillsbury Insights – Navigating the Real Estate Market During COVID-19
July 06, 2020 —
Caroline A. Harcourt - Gravel2Gavel Construction & Real Estate BlogUntil COVID-19 officially took hold in the U.S. in March of 2020, the U.S. real estate market was active, even robust. Starting in March, however, the possible scope of the pandemic and the sudden imposition of stay-at-home orders resulted in deal volume falling precipitously—with sales, leasing and lending transactions being put on temporary “wait and see” pause or terminated altogether.
The impact of COVID-19 on the real estate market has not been felt evenly. Hotels have been hit extremely hard, with many hotels shuttered altogether and many others only open at staggeringly low occupancy rates. Retail likewise has been virtually shut down in various parts of the country—with retailers across the country asking for rental forbearance or lease surrenders and others, such as J Crew, Neiman Marcus and Pier 1, pursuing bankruptcy reorganizations or liquidation. Multifamily has also been relatively hard hit, and landlords are having to navigate a web of local, state, and even federal regulations regarding tenant protections, such as non-eviction orders. The least affected sector so far has been office—however employers and office space users who are becoming facile with zoom and “working at home” may well re-examine their usage of office space—and it is within the realm of possibility to imagine that even this sector may come under pressure over time.
Read the court decisionRead the full story...Reprinted courtesy of
Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com
U.S., Canada, Mexico Set New Joint Clean-Energy Goal
June 30, 2016 —
Tom Ichniowski – Engineering News-RecordThe U.S., Canada and Mexico have agreed to boost their combined clean-energy generation to 50% of electricity production by 2025, from 37% last year.
Read the court decisionRead the full story...Reprinted courtesy of
Tom Ichniowski, Engineering News-RecordMr. Ichniowski may be contacted at
ichniowskit@enr.com
Almost Nothing Is Impossible
October 30, 2018 —
Brian N. Krulick - Smith CurrieIn today’s ever-changing legal and political climate, contractors are being forced to deal with events and circumstances that seemed improbable just a short time ago. These changing circumstances have led some contractors to question whether they are required to continue performing in the face of uncertainty and, in many cases, potentially large losses. The doctrines of impossibility and impracticability, if proven, can serve as powerful defenses and excuse performance of a construction contract. However, contractors should exercise great caution before relying on these defenses as an excuse for nonperformance, as the consequences of stopping work without proper justification can be disastrous.
Read the court decisionRead the full story...Reprinted courtesy of
Brian N. Krulick, Smith CurrieMr. Krulick may be contacted at
bnkrulick@smithcurrie.com