Pennsylvania Supreme Court Dismisses Appeal of Attorney Fee Award Under the Contractor and Subcontractor Payment Act
February 16, 2016 —
William J. Taylor – White and Williams LLPIn late December, the Supreme Court of Pennsylvania dismissed, as improvidently granted, the appeal in Waller Corporation v. Warren Plaza, Inc., No. 6 WAP 2015 (December 21, 2015). As a result, the Superior Court’s holding in that case that there is no good faith exception to the attorney fee provision of the Pennsylvania Contractor and Subcontractor Payment Act (CASPA), 73 P.S. §§ 501-516, remains intact.
In its decision in Waller, 95 A.3d 313 (Pa. Super. 2014), the Superior Court considered if there was a “good faith” exception to the interest and penalties provision of CASPA, 73 P.S. § 512(a), and whether there was a similar good faith exception to the attorney fee provision of the statute, 73 P.S. § 512(b). The court held that while an award of interest and penalties under § 512(a) could be denied if a party had a good faith basis for withholding payments due under a construction contract, no such exception exists for an award of attorney fees under § 512(b). Rather, an award of attorney fees is appropriate for the “substantially prevailing party” under a CASPA claim, and a claimant can be the substantially prevailing party even if the other party withheld payments in good faith.
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William J. Taylor, White and Williams LLPMr. Taylor may be contacted at
taylorw@whiteandwilliams.com
Contractor Given a Wake-Up Call for Using a "Sham" RMO/RME
October 02, 2015 —
Steven M. Cvitanovic & David A. Harris – Haight Brown & Bonesteel LLPTwo weeks ago we wrote about a disgorgement case winding its way through the courts where a contractor who let its license lapse after assigning its contract to a related but properly licensed entity was still facing disgorgement of the entire contract amount. Judicial Council of California v. Jacobs Facilities, Inc. (Ct. of Appeal, 1st App. Dis., Div. One, A140890, A141393.)
Now another disgorgement case, Jeff Tracy, Inc. v. City of Pico Rivera (Ct. of Appeal, 2nd App. District, Div. 2, B258563), shows the risk of not having a genuine RMO/RME. The consequences of disgorgement are potentially devastating and would certainly cause some contractors to go belly-up. The good news for the contractor in this particular case is that the Court of Appeal reversed the trial court. The bad news for the contractor is that damaging facts were revealed during the process of the court trial that will make a victory very difficult to pull off.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
David A. Harris, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Harris may be contacted at dharris@hbblaw.com
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Lumber Liquidators’ Home-Testing Methods Get EPA Scrutiny
June 10, 2015 —
Matthew Townsend – BloombergThe home testing method Lumber Liquidators Holdings Inc. is using to reassure customers that their floors are safe is being questioned by the U.S. Environmental Protection Agency.
In response to allegations that its Chinese-made laminate flooring emitted excessive levels of formaldehyde, a known carcinogen, Lumber Liquidators sent thousands of do-it-yourself tests to people who’d purchased the products. Customers use a device in the kit to measure the air in their homes for 24 hours, then send the package back to have the results evaluated.
While the EPA didn’t take a position on the specifics of Lumber Liquidators’ test program, the agency said on its website that home air testing “may not provide useful information due to the uncertainties” of the method. Air tests don’t pinpoint the specific source of a contaminant, and there are no widely accepted standards for indoor formaldehyde levels, the agency said.
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Matthew Townsend, Bloomberg
Construction Law Alert: Builder’s Alternative Pre-litigation Procedures Upheld Over Strong Opposition
April 01, 2014 —
Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLPLast week, the Court of Appeal, Fifth Appellate District, was tasked with evaluating the enforceability of provisions in home purchase contracts containing alternative pre-litigation procedures which differ from the standard Right to Repair Act procedures. The Court of Appeal, in McCaffrey v. Superior Court of Fresno, et al. ultimately upheld the contractual provisions, and in overturning the trial court's decision, preserved the rights of builders to contract around certain requirements set forth in the Right to Repair Act.
The McCaffrey Group, Inc. constructed single-family homes in a Fresno development. Plaintiffs consisted of 24 homeowners within the development who brought suit against McCaffrey for construction defects in their homes. The homeowners were comprised of three categories: (1) the original purchasers who bought their homes from McCaffrey before January 1, 2003 and had a 2001 version of McCaffrey's contract; (2) the original purchasers who bought their homes from McCaffrey on or after January 1, 2003 and signed a 2003 version of McCaffrey's contract; and (3) the subsequent purchasers who did not buy their homes directly from McCaffrey, but purchased their homes subject to either the 2001 or 2003 version of McCaffrey's home purchase agreement.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Whitney L. Stefko, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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New York Assembly Reconsiders ‘Bad Faith’ Bill
May 31, 2021 —
Copernicus T. Gaza, Robert S. Nobel, Craig Rokuson, Eric D. Suben - Traub LiebermanThe New York State Assembly is considering A07285, which creates a private right of action for bad faith “if the insurer unreasonably refuses to pay or unreasonably delays payment without substantial justification.” The bill was first introduced in 2013 but was reintroduced on May 3, 2021 and has received some recent attention. According to the bill, an insurer acts unreasonably when it (among other things):
- Fails to provide the claimant with accurate information regarding policy provisions relating to the coverage at issue; or
- Fails to effectuate in good faith a prompt, fair, and equitable settlement of a claim or portion of a claim and where the insurer failed to reasonably accord at least equal or more favorable consideration to its insured's interests as it did to its own interests, and thereby exposed the insured to a judgment in excess of the policy limits or caused other damage to a claimant; or
- Fails to provide a timely written denial of a claimant's claim, or portion thereof, with a full and complete explanation of such denial, including references to specific policy provisions wherever possible; or
- Fails to act in good faith by compelling such claimant to initiate a lawsuit to recover under the policy by offering substantially less than the amounts ultimately recovered in such suit; or
- Fails to timely provide, on request of the policy holder or the policy holder's representative, all reports or other documentation arising from the investigation of a claim; or
- Refuses to pay a claim without conducting a reasonable investigation prior to such refusal.
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Copernicus T. Gaza, Traub Lieberman,
Robert S. Nobel, Traub Lieberman,
Craig Rokuson, Traub Lieberman and
Eric D. Suben, Traub Lieberman
Mr. Gaza may be contacted at cgaza@tlsslaw.com
Mr. Nobel may be contacted at rnobel@tlsslaw.com
Mr. Rokuson may be contacted at crokuson@tlsslaw.com
Mr. Suben may be contacted at esuben@tlsslaw.com
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The Cost of Overlooking Jury Fees
February 07, 2022 —
Nicholas B. Brummel, Arezoo Jamshidi & Lawrence S. Zucker II - Haight Brown & BonesteelOn January 21, 2022, the Court of Appeal, Second Appellate District, Division Two (Los Angeles), certified for publication a 2-1 decision that serves as an important reminder to California attorneys to post jury fees in a timely manner and to use appropriate channels and consult with appellate counsel in seeking appellate relief from contested rulings.
In TriCoast Builders, Inc. v. Nathaniel Fonnegra, (B303300, Jan. 21, 2022), a construction defect dispute, the trial court set a jury trial at defendant’s request. However, on the day trial was set, defendant waived jury trial. Plaintiff objected and made an oral request for jury trial. The trial court denied the request finding that plaintiff waived its right to a jury trial by failing to timely post jury fees. The matter proceeded to a bench trial, and the court ruled in favor of defendant. Plaintiff appealed, having failed to seek a writ of mandate, which the appellate court noted “is the proper remedy to secure a jury trial allegedly wrongfully withheld.”
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Nicholas B. Brummel, Haight Brown & Bonesteel,
Arezoo Jamshidi, Haight Brown & Bonesteel and
Lawrence S. Zucker II, Haight Brown & Bonesteel
Mr. Brummel may be contacted at nbrummel@hbblaw.com
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Five Types of Structural Systems in High Rise Buildings
November 02, 2020 —
Chris Jackson - Construction ExecutiveToday, many cities in different countries have high-rise buildings or more popularly known as skyscrapers. The concept of skyscraper was first used to define the more than 137-foot-high buildings constructed in Chicago in 1885. It is generally defined as one that is taller than the maximum height that requires mechanical vertical transportation for people. Usually, these buildings only have limited uses and are primarily focused on functioning as residential apartments, hotels and office buildings, though they occasionally include retail and educational facilities. Because high-rise buildings are among the largest buildings built, it is necessary that their commercial and office functions require a high degree of flexibility.
That’s why it is important for high-rise buildings to have structural systems or structural frames—the assembly of interrelated or interdependent elements that forms a complex structure. These structural systems are built and designed for resisting different loads. To further understand how structural systems work, take the human body as a comparison. If human bones are weak and not properly aligned, the human body as a whole will not be able to perform or work well. Structural systems, in the same way, would not be able to take loads if not built properly. After all, no one wants a toppling skyscraper. To give the readers more information about structural systems in high-rise buildings, this article will discuss some of them.
Reprinted courtesy of
Chris Jackson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Congratulations to Partner John O’Meara for Being Named as One of America’s Top 100 Civil Defense Litigators for Three Consecutive Years!
September 20, 2021 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPlease join Bremer Whyte Brown & O’Meara, LLP in congratulating Woodland Hills Partner John O’Meara for being selected as one of America’s Top 100 Civil Defense Litigators for the third year in a row!
Membership among America’s Top 100 Civil Defense Litigators highlights the accomplishments of the nation’s most esteemed and skilled Civil Defense attorneys. Only 100 attorneys in each state receive this honor and candidates for membership are identified through third-party research or peer nominations by America’s Top 100 or elite attorneys in the community. Candidates are judged by the attorney’s lifetime legal achievements, professional experience, significant case results, peer reputation, client satisfaction, other notable honors, media notoriety, and community impact.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
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