The Impact of Sopris Lodging v. Schofield Excavation on Timeliness of Colorado Construction Defect Claims
January 26, 2017 —
Jean Meyer - Colorado Construction LitigationOn October 20, 2016, the Colorado Court of Appeals announced the Sopris Lodging, LLC v. Schofield Excavation, Inc.[1] decision. The Sopris decision significantly altered the potential pitfalls awaiting a general contractor in pursuit of third-party claims as well as potential defenses available for a subcontractor defending against third-party claims.
By way of background, the Sopris construction defect case arose out of the following facts: TDC was the general contractor for the construction of a hotel owned by Sopris Lodging. On March 11, 2011, Sopris Lodging sent TDC a notice of claim regarding alleged construction defects. On May 24, 2013, Sopris Lodging filed a complaint in district court asserting construction defect claims against one of the subcontractors of the hotel, and against the general contractor’s principals, but not the general contractor. Contemporaneous with the filing of the suit, Sopris Lodging and TDC entered into an agreement to toll the statute of limitations on Sopris Lodging’s potential claims against TDC. In August 2013, Sopris Lodging joined the general contractor to the suit. A year later, in 2014, the general contractor joined a variety of subcontractors as third-party defendants.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Jean may be contacted at
meyer@hhmrlaw.com
A Brief Primer on Perfecting Your Mechanics Lien When the Property Owner Files Bankruptcy
January 22, 2024 —
William L. Porter - Porter Law GroupOverview of the Mechanics Lien Law
This is a brief description of steps to be taken when the Owner of property on which you have recorded a mechanics lien files bankruptcy.
The California mechanics lien is a powerful tool for contractors, subcontractors and materials suppliers to secure payment of unpaid construction debts. A contractor, subcontractor or materials supplier is allowed to record a mechanics lien on real property, based on the value added to the property by the claimant during the construction process.
The recorded mechanics lien provides the claimant with legal right to force the sale of the improved real property and thereby obtain the funds necessary to pay the delinquent debt. Under the usual procedure, the first step is the recording of the mechanics lien with County Recorder’s office in the County where the property is located. A lawsuit to foreclose on the lien must then be filed in the County Superior Court of that County, within ninety (90) days after the mechanics lien is recorded. The goal of the lawsuit is to obtain a judgment for foreclosure on the mechanics lien in order to force a sale of the property. The net proceeds of the sale will be used to pay the unpaid construction debt secured by the recorded mechanics lien, assuming sale proceeds exceed the amount of senior liens and encumbrances.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Federal Lawsuit Accuses MOX Contractors of Fraud
March 04, 2019 —
Scott Judy - Engineering News-RecordA subcontractor employee working on the now-canceled MOX project in South Carolina used football tickets, automobile tires, barbecue grills and other gifts to persuade employees of CB&I AREVA MOX Services and other vendors to help approve thousands of fraudulent invoices cumulatively valued at more than $6.4 million, according to a Dept. of Justice lawsuit filed Feb. 14 that names both companies as defendants. The controversial project at the Savannah River Site in Aiken, S.C., originally scheduled for completion in 2016, was canceled in January after cost and schedule estimates increased significantly.
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Scott Judy, ENRMr. Judy may be contacted at
judys@enr.com
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
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Effective October 1, 2019, Florida General Contractors Have a Statutory Right to Recovery of Attorney Fees Against a Defaulted Subcontractor’s Surety
July 01, 2019 —
Warren E. Friedman - Peckar & Abramson, P.C.Florida contractors will soon have a level playing field, at least related to the right to recovery of attorney fees in certain circumstances. Effective October 1, 2019, the Florida statute by which legal fees may be recovered from insurers and sureties was amended to expressly afford that right to contractors.
Florida’s Insurance statute, Chapter 627, affords a right to recovery of attorney fees when a judgment is obtained against an insurer and in favor of any insured pursuant to a policy or contract executed by the insurer. See Fla. Stat. § 627.428. In the construction context, the Florida Legislature has also applied this right to the recovery of attorney fees from sureties, for example in circumstances where suit is brought against a surety under a payment or performance bond. See Fla. Stat. § 627.756.
But there was an oddity to this statute – it specifically provided this right for “owners” and “subcontractors”, but “contractors” were skipped over. For as long as Section 627.756, Florida Statutes has been on the books, the right to recovery of attorney fees against a surety under a payment or performance bond was only afforded to owners, subcontractors, laborers, and materialmen. Specifically, since at least 1977, Section 627.756, Florida Statutes substantially provided as follows (emphasis added):
Section 627.428 applies to suits brought by
owners, subcontractors, laborers, and materialmen against a surety insurer under payment or performance bonds written by the insurer under the laws of this state to indemnify against pecuniary loss by breach of a building or construction contract. Owners, subcontractors, laborers, and materialmen shall be deemed to be insureds or beneficiaries for the purposes of this section.
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Warren E. Friedman - Peckar & Abramson, P.C.Mr. Friedman may be contacted at
wfriedman@pecklaw.com
Contractors Struggle with Cash & Difficult Payment Terms, Could Benefit From Legal Advice, According to New Survey
December 30, 2019 —
Christopher G. Hill - Construction Law MusingsGuest Post Friday is back with a post from my pal Scott Wolfe. Scott is the founder and CEO of Levelset, which is used by thousands of contractors to make payments fast and easy. Scott, previously a construction attorney himself, founded Levelset to even the $1 trillion construction playing field, and is on a mission to make payments less stressful for contractors and suppliers across the globe.
Getting paid in construction is slow, hard, and stressful, according to a survey conducted by Levelset & TSheets by Quickbooks that polled over 500 construction professionals. Half of the contractors surveyed complained that they did not get paid on time, which caused serious cash flow issues that negatively impacted their customer relationships and frequently forced them to dip into personal savings and lines of credit to keep their business afloat.
View the 2019 Construction Payment Report here.
Unfortunately, since the construction industry’s slow payment problems are well-documented, this sad reality isn’t too surprising. The findings, though, do demonstrate a massive cash crunch for the 1.5 million+ contractors in the United States, and underscores the importance of having legal help and counsel from a construction lawyer before, during, and after jobs.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Slip and Fall Claim from Standing Water in Parking Garage
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFIn Metairie, Louisiana, Paul Unkauf filed a lawsuit after he allegedly “slipped and fell on standing water in the parking garage,” located at Heritage Plaza, according to the Louisiana Record. The defendants, Stewart Development LLC, Stirling Properties LLC, Platinum Parking LLC and First Financial Company, are “accused of permitting standing water to dampen the pathway leading to the elevator bank, failing to dry the pathway, failing to warn of the hazard, failing to properly inspect the area in question, failing to provide a safe means of exit and entrance, being careless and negligent under the circumstances, failing to properly identify and correct defects in design and failing to properly supervise and train employees,” reports the Louisiana Record.
Unkauf is seeking an “unspecified amount in damages” for “medical expenses, physical pain, loss of function, mental anguish, emotional distress, loss of enjoyment of life and permanent partial disability.”
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Construction Leads World Trade Center Area Vulnerable to Flooding
February 07, 2013 —
CDJ STAFFThe Port Authority of New York and New Jersey and outside experts are looking at ways to make the World Trade Center area less vulnerable to flooding, both as construction continues and after it has concluded. Much of the site is built on landfill and the Hudson River is held back by retaining walls.
Hurricane Sandy caused $2 billion of damage to sites managed by the Port Authority, including $800 million for the PATH train system. Construction and increased vulnerability to flooding is likely to continue for at least eight more years.
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