Contractors: Beware the Subordination Clause
October 15, 2014 —
Garret Murai – California Construction Law BlogA bit of mechanics lien trivia.
What is the only state in the United States in which mechanics liens are a constitutional right?
If you answered California, ding, ding.
Article XIV of the California Constitution states:
Mechanics, persons furnishing materials, artisans, and laborers of every class, shall have a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor done and materials furnished; and the Legislature shall provide, by law, for the speedy and efficient enforcement of such liens.
But how does that constitutional right stand up against contractual rights? Not so well it seems.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Four Common Construction Contracts
August 26, 2015 —
Garret Murai – California Construction Law BlogLike Baskin Robins, construction contracts come in a variety of different flavors although, thankfully, significantly fewer than 31. Here are four of the more common types of construction contracts between project owners and contractors:
Fixed Price
Fixed price construction contracts, also commonly referred to as “lump sum” or “stipulated sum” contracts, are the most common types of construction contracts. As its name suggests, under a fixed price contract a contractor agrees to construct a project for a “fixed” or agreed upon price.
1.
Benefits: Fixed price construction contracts provide price predictability for project owners because absent changes in the scope of work, unforeseen conditions, or other circumstances which might cause the “fixed” price of the contract to go up or down, the contractor is required to complete the work for the agreed upon price.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Lien Claimant’s Right to Execute against Bond Upheld in Court of Appeals
February 10, 2012 —
Douglas Reiser, Builders Council BlogStonewood v. Infinity Homes is a simple construction dispute over a matter of about $9,000.00. But sometimes these tiny little disputes turn into expensive legal battles over mere procedural quivering. In Stonewood, a small subcontractor won a big victory yesterday when the Divison 1 Court of Appeals upheld its judgment against a lien release bond posted by an owner.
Infinity Homes contracted with Stonewood Design to lay tile in one of its customer’s homes. Stonewood did the work, but Infinity withheld roughly $9,000.00 of the contract sums for what it alleged were trade damages left on the tile. The two parties were unable to come to an agreement over payment and Stonewood proceeded with a lien under RCW 60.04. It then filed an action to enforce the lien against the homeowner, Infinity and its bonding company.
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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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Manufacturer of Asbestos-Free Product May Still Be Liable for Asbestos Related Injuries
July 30, 2015 —
Kristian B. Moriarty, R. Bryan Martin and Lee Marshall – Haight Brown & Bonesteel LLPIn Sherman v. Hennessy Industries, Inc. (No. B252566, filed June 18, 2015), the Court of Appeal, Second District, reversed a trial court’s grant of summary judgment in favor of a manufacturer of a brake grinding machine. The Court cited an exception to the general rule that manufacturers may not be held liable, under a strict products liability theory, where the plaintiff’s injuries arise from other products that are used in conjunction with the defendant’s product.
Plaintiff and appellant, Michael Sherman, was an automobile mechanic from 1962 to 1977. Mr. Sherman alleged that during this period he used an arcing machine, which abraded brake linings by means of sand paper moving at high speeds. Sherman alleged the machine released asbestos dust, which he then brought home, exposing his wife Debra Sherman to asbestos. Ms. Sherman developed mesothelioma and passed away from exposure to the asbestos dust carried home by her husband.
Reprinted courtesy of
Kristian B. Moriarty,
R. Bryan Martin and
Lee Marshall of Haight Brown & Bonesteel LLP
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
Mr. Marshall may be contacted at lmarshall@hbblaw.com
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Double-Wide World Cup Seats Available to 6-Foot, 221-Pound Fans
June 18, 2014 —
Tariq Panja – BloombergSome of the double-wide seats that Brazilian law guarantees for obese World Cup fans are being occupied by people who don’t need that much extra space, and FIFA said it can’t do anything to prevent that from happening.
Soccer’s governing body said it is using World Health Organization and official Brazil Ministry of Health guidelines on who can be classified as obese. Those with a body mass index, or BMI, of 30 or higher can purchase a special-needs ticket at half price and get one of the special seats. Someone who is 6 feet tall and weighs 221 pounds (1.8 meters, 100 kilograms) would qualify.
“There are cases where a person doesn’t look obese but meets the guidelines,” Federico Addiechi, head of corporate hospitality, said after a briefing yesterday at Rio de Janeiro’s Maracana stadium, where the World Cup’s July 13 final will be held. “We cannot decide you are not obese if the law says you are obese.”
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Tariq Panja, BloombergMr. Panja may be contacted at
tpanja@bloomberg.net
Construction Law Advisory: Mechanical Contractor Scores Victory in Prevailing Wage Dispute
September 03, 2014 —
Steven M. Cvitanovic & Jessica M. Lassere Ryland - Haight Brown & Bonesteel LLPOn August 27, 2014, the First District Court of Appeal weighed in on whether prevailing wages are required for public contracts in situations where work is performed in furtherance of the project but at a permanent offsite manufacturing facility that is not exclusively dedicated to the project. In Sheet Metal Workers' International Association, Local 401 v. John C. Duncan and Russ Will Mechanical, the project at issue was for a community college district where Russ Will was the HVAC subcontractor. The contract documents required contractors to pay prevailing wages but they did not limit where or how Russ Will would fabricate sheet metal required for the job. Russ Will used its existing fabrication facility to form the sheet metal.
An employee of Russ Will filed a complaint with the DIR alleging he should have been paid prevailing wages for work related to the project. The worker fabricated sheet metal for the project but at Russ Will’s Hayward facility, not at the site. The DIR issued a coverage determination in which it concluded that Russ Will was required to pay prevailing wages for the offsite fabrication work associated with the project. The DIR's determination turned on whether Russ Will was exempt from the prevailing wage law as a material supplier. To qualify for the material supplier exemption, the employer must sell supplies to the general public and its fabrication or manufacturing facility must not be established for the particular public works contract or be located at the site of the public work.
Following the DIR determination, Rush Will filed an administrative appeal. The department reversed its initial coverage determination, concluding that the offsite fabrication performed by Russ Will was not subject to the prevailing wage law.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Jessica M. Lassere Ryland, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Ryland may be contacted at jlassere@hbblaw.com
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Road to Record $199 Million Award Began With Hunch on Guardrails
June 17, 2015 —
Patrick G. Lee – BloombergIt started with a hunch about malfunctioning highway guardrails. It led to the biggest known whistle-blower award in U.S. history.
Joshua Harman, a Virginian with two small highway safety companies, made a discovery in late 2011 that perhaps only a guardrail maker could: A big competitor had changed the dimensions of its roadside safety device by as much as an inch here and there, he said, without telling federal regulators.
As designed, Trinity Industries Inc.’s ET-Plus system was meant to turn the end of a guardrail into a de facto shock absorber. The altered units, as Harman saw it, were locking up when hit, spearing cars and their occupants.
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Patrick G. Lee, Bloomberg
Los Angeles Seeks Speedier Way to Build New Affordable Homes
April 29, 2024 —
Patrick Sisson - BloombergArchitect Brian Lane calls it “1,000 ways to no.” That’s the wall of red tape that he and his colleagues at the Santa Monica-based firm Koning Eizenberg hit when they propose affordable housing projects around Los Angeles. Regulations and code enforcement lead to delays, which drive up costs, kill projects, and exacerbate Southern California’s stifling housing shortage.
But over the last year, builders say that this bureaucratic morass has eased somewhat, thanks to the mayoral order known as
Executive Directive 1.
Mayor Karen Bass signed ED 1 shortly after taking office in December 2022, at the site of an infamous project
that took more than a decade to be approved. The emergency declaration promised to open a new era, directing city departments involved in planning and decision-making to expedite 100% affordable projects, sidestepping codes and regulations that have long added delays and costs. Approvals that might otherwise have taken a year or more are now mandated to happen within a 60-day window, with building permits to be issued within five days.
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Patrick Sisson, Bloomberg