California Construction Bill Dies in Committee
July 21, 2011 —
CDJ STAFFAB 20, which its sponsor, Linda Halderman (R-Fresno), stated would discourage class action lawsuits against builders and protect jobs in the construction industry, has died in committee. Although the Business Journal reported in June that Haldeman was promoting the bill during a talk in her district and the bill is still on her web site, the California Assembly reports that the bill failed in committee on March 15, 2011. It is possible that the bill could be reconsidered, but the Assembly Committee on Judiciary sees the bill as responding to issues quieted by SB 800 which gives builders the right to repair alleged defects before any suit can be filed.
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Prison Time and Restitution for Construction Fraud
February 14, 2013 —
CDJ STAFFFederal prosecutors have obtained prison sentences and fines for the two leaders of a construction kickback scheme. Others are awaiting sentencing. The Chicago Sun-Times reports that John Paderta the former president of Krahl Construction has been sentenced to five years in prison and must pay $10 million in restitution. His executive vice president, Doug Harner will be spending five years in prison and has been ordered to pay $9.6 million in restitution.
Paderta and Harner overbilled two clients on renovation projects, giving kickbacks to employees at the client companies. Two employees of these client companies have pled guilty. A further five employees of the three companies have admitted that they were involved in the fraud. They are yet to be sentenced.
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Court of Appeals Confirms that King County Superior Court’s Jury Selection Process Satisfies Due Process Requirements
December 04, 2023 —
Joshua Lane - Ahlers Cressman & Sleight PLLCRaymond Budd developed mesothelioma after working with a drywall product called “joint compound” from 1962 to 1972. He sued Kaiser Gypsum Company, Inc. and others for damages, contending that the company’s joint compound caused his illness. A jury returned a verdict in Budd’s favor and awarded him nearly $13.5 million. Kaiser appealed, claiming (1) insufficient randomness in the jury-selection process, (2) erroneous transcription of expert testimony, (3) lack of proximate causation, (4) lack of medical causation, (5) an improper jury instruction on defective design, (6) improper exclusion of sexual battery and marital discord evidence, (7) improper admission of post-exposure evidence, (8) improper exclusion of regulatory provisions, and (9) a failure to link its product to Budd’s disease. The Court of Appeals, Division 1, affirmed the verdict in favor of Budd.
Though all of the nine bases for error raised by Kaiser merit discussion, the jury-selection process issue is most probative here. Kaiser made three challenges against the jury selection process.
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Joshua Lane, Ahlers Cressman & Sleight PLLCMr. Lane may be contacted at
joshua.lane@acslawyers.com
Don MacGregor of Bert L. Howe & Associates Awarded Silver Star Award at WCC Construction Defect Seminar
May 24, 2018 —
CDJ STAFFThe staff of the Construction Defect Journal would like to extend their congratulations to Don MacGregor of Bert L. Howe & Associates, Inc., in recognition of his receipt of the Silver Star Award as “Best Expert” at the 25th Anniversary of the West Coast Casualty Construction Defect Seminar, hosted at the Disneyland Resort Hotel, in Anaheim CA.
Recipients of the Silver Star Awards were nominated and voted on by their peers, colleagues, and the Construction Defect Community at large, as represented by the 25,000 members who received emails on the subject.
Along with “Best Expert,” recognition was also given to the best judge, mediator, plaintiff attorney, developer attorney, subcontractor attorney, coverage counsel, and insurance claims professional. Awards were handed out last Thursday during a special ceremony at this year’s Seminar.
To Don, and all the worthy awardees, congratulations again!
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Repair Cost Exceeding Actual Cash Value Does Not Establish “Total Loss” Under Fire Insurance Policy
June 05, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn California FAIR Plan Assn. v. Garnes (No. A143190, filed 5/26/17), a California appeals court ruled that “total loss” under Insurance Code section 2051 refers to physical damage or loss, not the economic fact that the cost of repair exceeds the actual cash value of a home. Thus, where the home is not physically destroyed, the insured is entitled to the actual cost of repair, minus depreciation, even if that amount exceeds the fair market value of the home.
In Garnes, the insured had a fire policy issued by the California FAIR Plan with limits of $425,000. It was agreed that the assessed value of the insured home was only $75,000. The insured suffered a kitchen fire with estimated repair costs of $320,000. The FAIR Plan declared the home a total loss because the cost of repair exceeded the home’s value, and offered to pay the actual cash value as provided by Insurance Code section 2051(b)(1).
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Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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General Liability Alert: A Mixed Cause of Action with Protected and Non-Protected Activity Not Subject to Anti-SLAPP Motion
February 18, 2015 —
Valerie A. Moore, Lawrence S. Zucker II and Blythe Golay – Haight Brown & Bonesteel LLPIn Baral v. Schnitt (filed 2/5/2015, No. B253620), the California Court of Appeal, Second Appellate District, held that California’s anti-SLAPP statute does not authorize the striking of allegations of protected activity in a cause of action that also contains meritorious allegations of non-protected activity not within the purview of the statute. In so holding, the court attempted to resolve, or at least add its voice to, the growing conflict among appellate districts on the issue.
A SLAPP lawsuit (Strategic Lawsuit Against Public Participation) seeks to chill or punish the exercise of constitutional rights to free speech and to petition the government for redress of grievances. California’s Legislature enacted the anti-SLAPP statute to permit a defendant to file a special motion to strike as to any cause of action that arises out of an act in furtherance of such rights. In Baral, the plaintiff alleged that his business partner had violated fiduciary duties in usurping the plaintiff’s ownership and management interests in their jointly owned company, so that the defendant could benefit from a secret sale of the company. The complaint alleged that the defendant hired a public accounting firm and prevented the plaintiff from participating in its investigation in order to force the plaintiff's cooperation of the sale of the company. The defendant filed an anti-SLAPP motion, seeking to strike all references to the accounting firm's audit. The trial court denied the motion, on the ground that the anti-SLAPP statute applies to causes of action, not allegations.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Valerie A. Moore,
Lawrence S. Zucker II and
Blythe Golay
Ms. Moore may be contacted at vmoore@hbblaw.com.
Mr. Zucker may be contacted at lzucker@hbblaw.com.
Ms. Golay may be contacted at bgolay@hbblaw.com.
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Nevada Supreme Court Reverses Decision against Grader in Drainage Case
June 30, 2011 —
CDJ STAFFThe Nevada Supreme Court has issued an opinion in the case of Rayburn Lawn & Landscape Designers v. Plaster Development Corporation, reversing the decision of the lower court and remanding the case for a new trial.
The case originated in a construction defect suit in which Plaster Development Corporation was sued by homeowners. Plaster filed a third-party complaint against its subcontractor, Reyburn. The testimony of Reyburn’s owner was considered to be admission of liability and so the court limited the scope of Reyburn’s closing argument and did not allow the jury to determine the extent of Reyburn’s liability. Reyburn appealed.
Plaster, in their case, cited California’s Crawford v. Weather Sheild MFG, Inc. The court held the application of these standards, but noted that the “an indemnitor’s duty to defend an indemnitee is limited to those claims directly attributed to the indemnitor’s scope of work and does not include defending against claims arising from the negligence of other subcontractors and the indemnittee’s own negligence.”
On the matter of law against Reyburn, the court concluded, “Given the conflicting evidence at trial as to whether Reyburn’s work was implicated in the defective retaining walls and sidewalls, and viewing the evidence and inferences in Reyburn’s favor, we conclude that a reasonable jury could have granted relief in favor of Reyburn.” The Nevada Supreme Court conduced that the district court should not have granted Plaster’s motion for judgement.
Further, the Nevada Supreme Court found that the district court should have apportioned the fees and costs to those claims directly attributed to Reyburn’s scope of work, “if any,” and should not have assigned all attorney costs and court fees to Reyburn.
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Wendel Rosen’s Construction Practice Group Welcomes Quinlan Tom
January 06, 2016 —
Garret Murai – California Construction Law BlogThere’s been more cheer than usual at Wendel Rosen’s Construction Practice Group this holiday season.
Earlier this month, Quinlan Tom, a construction and business attorney, joined us from McInerney & Dillon, a venerable and well-respected construction boutique firm (we know a lot of folks there) with local roots like us in Oakland, California. We’ve all known Quinlan for a while, so when he decided to join our band of merry legal practitioners, we were quite thrilled.
Being lawyers though, and better at asking than answering questions, we decided to pose a few questions to Quinlan:
Q. So, you’ve just been sworn to tell the truth, the whole truth, and nothing but the truth, under penalty of perjury. So, tell us about your practice.
A. Let me just start with it’s quite an honor to appear in your blog; I’ve been a reader for a while (in secret of course before I got to Wendel Rosen). I’m also excited to join you and the other members of Wendel Rosen’s Construction Practice Group; as you mention, I’ve known each of you professionally for quite some time and respect each of you tremendously.
I started as a construction litigator right out of law school. I completed three years of mechanical engineering at UC Davis and put that on my resume when I was looking for a job after law school. (In addition, my dad retired after 40 years in the trenches as a union electrician). McInerney & Dillon (“M&D”) and a couple of other firms found that interesting and I ended up starting with M&D. I did find that my engineering studies helped with my acclimation to construction disputes. While I never pretend to be an engineer, it has provided me with a foundation of how the construction process works and how the projects are designed. 26 years later, I continue to enjoy counseling my clients in their construction disputes/issues and still find each construction project I am involved with fascinating.
I have tried, arbitrated and litigated cases for 26 years, from the United States District Court to the California Superior Court and the California Office of Administrative Hearings. I have argued cases before the Ninth Circuit Court of Appeals and the California Court of Appeal. I counsel my clients into hopefully making the best business decisions available melding the knowledge I have gleaned from my litigation experience with their financial and personal goals.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com