Who Will Pay for San Francisco's $750 Million Tilting Tower?
February 02, 2017 —
James Tarmy & Kartikay Mehrotra – BloombergNina Agabian, a retired director of research in global health science at the University of California, bought a 29th-floor apartment in San Francisco’s Millennium Tower in 2010. “It was supposed to be a wonderful building,” she said in January, sitting in a leather chair in the building’s vast, low-lit, owner's-club level. “For many of us, who left our business lives to start our older years, this had become a nice, comfortable place.”
The building, which opened in 2008 and was touted as the most luxurious tower in San Francisco, became a beacon of the city’s burgeoning wealth, attracting tech millionaires, venture capitalists, and even the San Francisco 49ers retired quarterback Joe Montana.
The 58-story tower's shine faded on May 10, 2016, when Agabian attended a homeowners association meeting and was informed that the building had sunk 16 inches into the earth and tilted over 15 inches at its tip and 2 inches at the base, according to suits filed by residents and the city of San Francisco. “You can imagine how distressed we were to know that, for one, our lifetime investment and savings are at risk,” she said. “And we have no idea whether or not there’s a fix to it, and if there is a fix to it, what it will entail.”
Reprinted courtesy of
James Tarmy, Bloomberg and
Kartikay Mehrotra, Bloomberg
Mr. Tarmy may be followed on Twitter @jstarmy
Mr. Mehrotra may be followed on Twitter @kartikaym
Read the court decisionRead the full story...Reprinted courtesy of
Insurance Law Alert: California Appeals Court Allows Joinder of Employee Adjuster to Bad Faith Lawsuit Against Homeowners Insurer
April 08, 2014 —
Valerie A. Moore and Christopher Kendrick - Haight Brown & Bonesteel LLPIn Bock v. Hansen (No. A136567, filed 4/2/14), a California appeals court held that an adjuster employed by an insurer can be sued personally for falsely representing that a first party claimant's policy does not cover a loss.
In Bock, a 41-foot long, 7,300 pound tree limb crashed onto the insureds' home, damaging the roof, chimney, living room walls, windows and floors. The assigned adjuster was alleged to have engaged in "appalling" conduct, including instructing the insureds to clean up the damage themselves (leading to personal injury); denying that the tree cracked the chimney; insulting and disparaging the insureds; altering the scene before taking photographs; misrepresenting the terms of the policy; preparing false claim reports; conspiring with a contractor to prepare an intentionally false report; and knowingly relying on the false report in order to deny a legitimate claim.
The homeowners sued the insurer and named the adjuster personally on causes of action for negligent misrepresentation and intentional infliction of emotional distress. But the adjuster demurred arguing that he could not be sued personally because, as an employee of the insurer, he owed no duty to the insureds. The adjuster relied on Sanchez v. Lindsey Morden Claims Services, Inc. (1999) 72 Cal.App.4th 249 and Lippert v. Bailey (1966) 241 Cal.App.2d 376, to argue that employees and agents of insurers cannot be held personally liable since, under the law of agency, the proper cause of action is against the principal and not the agent.
Reprinted courtesy of
Valerie Moore, Haight Brown & Bonesteel LLP and
Christopher Kendrick, Haight Brown & Bonesteel LLP
Ms. Moore may be contacted at vmoore@hbblaw.com; Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Bribe Charges Take Toll on NY Contractor
February 22, 2018 —
Mary B. Powers - ENRThe federal bid-rigging trial of former executives of one-time Buffalo, N.Y., regional contracting giant LPCiminelli won’t start until late spring, more than 18 months after they were indicted, along with others, on bribery, corruption and fraud charges in a New York state contract “pay for play.”
Read the court decisionRead the full story...Reprinted courtesy of
Mary B. Powers, Engineering News-Record
Client Alert: Court of Appeal Applies Common Interest Privilege Doctrine to HOA Litigation Meetings
March 19, 2014 —
David W. Evans, Steven M. Cvitanovic, and Michael C. Parme - Haight Brown & Bonesteel LLPIn Seahaus La Jolla Owners Assoc. v. Superior Court (No. D064567, March 12, 2014), the California Court of Appeal held a homeowners association’s (“HOA”) litigation meetings related to the HOA’s construction defect lawsuit were subject to protection under the attorney-client privilege. Specifically, the court concluded the common interest doctrine applied to the subject litigation meetings, thereby barring the defendants in the HOA’s lawsuit from seeking discovery related to the content and disclosures made during those meetings.
The plaintiff HOA initiated a construction defect lawsuit against a residential developer and builder, seeking damages for construction defects related to common areas. The defendants took the depositions of individual homeowners and inquired regarding the communications and disclosures made at informational litigation update meetings. The meetings were conducted by the HOA’s counsel with groups of homeowners, some of whom had filed their own, separate lawsuits against the same defendants. Motions to compel were filed after attorney-client privilege objections were asserted by counsel for the HOA. After the court-appointed discovery referee opined that the common interest doctrine applied and that the communications presented at the meetings were subject to the attorney-client privilege, the trial court rejected this recommendation and overruled the HOA’s privilege objections. The HOA filed a petition for a writ of mandate.
The defendants argued the privilege had been waived based on the presence of persons who were not the clients of the HOA’s attorney, that the subject communications were not “confidential communications” and that the individual homeowners and the HOA did not share common interests at the time. After setting forth a comprehensive discussion of the statutory principles underlying the attorney-client privilege and the bases for waiver, as provided in California Evidence Code §§ 912 and 952, and summarizing applicable decisional law, the court specifically analyzed the question of whether the common interest doctrine applied in the context of the disputed HOA litigation meetings. The common interest doctrine protects confidential communications made by counsel to third parties if the third parties are present to further the interest of the client or are those to whom disclosure is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which the lawyer was consulted.
Reprinted courtesy of
David W. Evans,
Steven M. Cvitanovic, and
Michael C. Parme of Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com, Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com, and Mr. Parme may be contacted at mparme@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Considerations in Obtaining a Mechanic’s Lien in Maryland (Don’t try this at home)
February 23, 2016 —
Christopher G. Hill – Construction Law MusingsFor this week’s Guest Post Friday at Construction Law Musings I welcome Matthew Evans. Matt is the owner of
Law Offices of Matthew S. Evans, III, LLC located in Annapolis, Maryland. He has practiced construction, real estate and land use law in Maryland and D.C. for thirteen years. Prior to opening his own firm in May 2011, Mr. Evans was a partner at a mid-sized firm in Anne Arundel County, Maryland. Mr. Evans lives in Historic Annapolis (only three short blocks from his office) with his wife Margaret, and three children, Matthew (5), Bo (4) and Peyton (2).
Some of the most common calls I get are from irate contractor or subcontractor clients who have not been paid demanding that I “lien the property”. Many times after calming the client down, I determine, to their dismay, that they are not entitled to a mechanic’s lien. In Maryland, the mechanic’s lien law is driven by statute, which contains specific requirements which must be met before the client is entitled to a lien.
The first question is whether the contractor or subcontractor is entitled to a lien for the work performed. Under Maryland law, “every building erected and every building repaired, rebuilt, or improved to the extent of 15 percent of its value is subject to establishment of a lien…for the payment of all debts.” It’s easy when dealing with new construction. No matter how small your portion of the work, the property is subject to the establishment of a lien. It is more difficult to determine entitlement when there is either a total or partial renovation or other work. The question becomes how do you determine the value of the building, and whether it has been improved “to the extent of 15 percent of its value.” Believe me, I have seen creative and some not so creative methods of calculation used by counsel to prove that certain work does or does not meet the requirement.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Ways of Evaluating Property Damage Claims in Various Contexts
February 18, 2020 —
Bremer Whyte Brown & O'Meara LLPPotential damages in a lawsuit may come in many forms depending on the facts of the case. Common damages include medical expenses, loss of earnings, property loss, physical pain, and mental suffering. Of the many damages Plaintiffs may claim, one of the most prevalent and recognizable is property damage. This article briefly discusses these types of damages which fall under two major categories – Real Property and Personal Property.
Broadly speaking, “real property” means land, and “personal property” refers to all other objects or rights that may be owned. Ballentine’s Law Dictionary defines “real property” as: “Such things as are permanent, fixed, and immovable; lands, tenements, and hereditaments of all kinds, which are not annexed to the person or cannot be moved from the place in which they subsist. . . .” (Ballentine’s Law Dict. (3d ed. 2010).) “Personal property” is defined as: “Money, goods, and movable chattels . . . . All objects and rights which are capable of ownership
except freehold estates in land, and incorporeal hereditaments issuing thereout, or exercisable within the same.” (Id. (emphasis added).)
Real Property
Real property may be damaged or “harmed” through trespass, permanent nuisance, or other tortious conduct. The general rule is that Plaintiffs may recover the lesser of the two following losses: (1) the decrease in the real property’s fair market value; or (2) the cost to repair the damage and restore the real property to its pre-trespass condition plus the value of any lost use. (Kelly v. CB&I Constructors, Inc.) However, an exception to this general rule may be made if a Plaintiff has a personal reason to restore the real property to its former condition, sometimes called the “personal reason” exception. In such cases, a Plaintiff may recover the restoration costs even if the costs are greater than the decrease in the real property’s value, though the restoration cost must still be “reasonable” in light of the value of the real property before the injury and the actual damage sustained.
Read the court decisionRead the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
California Homeowners Can Release Future, Unknown Claims Against Builders
June 10, 2015 —
Edward A. Jaeger, Jr. and William L. Doerler – White and Williams LLPIn Belasco v. Wells, 183 Cal. Rptr.3d 840, 234 Cal. App. 4th 409 (2015), the California Court of Appeals for the Second District addressed the question of whether a homeowner, when settling an administrative complaint against a licensed homebuilder, can release future, unknown claims. Despite the presence of a California statute, Cal. Civ. Code § 1542, stating that a general release does not extend to claims that the releasor does not know about, the court held that the homeowner’s express release of future claims was enforceable. Thus, the homeowner’s release - signed as part of a 2006 settlement of the homeowner’s construction defect claims against the defendant, a homebuilder - barred the homeowner’s 2012 claims against the builder based on latent defects in the roof of the home that the homeowner discovered in 2011.
Background
The plaintiff, David Belasco, a patent attorney, bought a newly-constructed home from the defendant-builder, Gary Wells, in 2004. Wells holds a Class B General Building Contractor license issued by the Contractors State License Board (the Board). In 2006, Belasco filed a complaint against Wells with the Board based on alleged construction defects in the home.
As a result of Belasco’s complaint to the Board, the parties engaged in arbitration. At the arbitration, both parties were represented by counsel. Wells offered to settle the dispute for the sum of $25,000 and Belasco accepted Wells’ offer.
Reprinted courtesy of
Edward A. Jaeger, Jr., White and Williams LLP and
William L. Doerler, White and Williams LLP
Mr. Jaeger may be contacted at jaegere@whiteandwilliams.com; Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
Insurer’s Duty to Indemnify Not Ripe Until Underlying Lawsuit Against Insured Resolved
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesA liability insurer has two duties: 1) the duty to defend its insured; and 2) the duty to indemnify its insured.
With respect to the second duty – the duty to indemnify – this duty is typically “not ripe for adjudication unless and until the insured or putative insured has been held liable in the underlying action.” Hartford Fire Ins Co. v. Beazer Homes, LLC, 2019 WL 5596237, *2 (M.D.Fla. 2019) (internal quotation omitted).
For instance, Beazer Homes involved an insurance coverage dispute stemming from construction defects. An owner sued its general contractor for construction defects relating to stucco problems. The general contractor paid for the repairs. The general contractor then sued its stucco subcontractor to recover the costs it incurred. The subcontractor tendered the defense of the lawsuit to its commercial general liability insurer which is defending its insured-subcontractor under the commonly issued reservation of rights.
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
