How Many Homes have Energy-Efficient Appliances?
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing analyzed data from the Census Bureau’s 2011 American Housing Survey to “reveal the share of owner-occupied homes that contain various Energy Star related appliances.”
Eye on Housing reported that in “new homes, the leading shares of Energy Star rated appliances were refrigerators (70%), washing machines (69%), dishwashers (65%), and central air conditioning (52%).” In “owner-occupied homes,” the survey demonstrated that “refrigerators are the most common Energy Star appliance.”
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Supplement to New California Construction Laws for 2019
January 08, 2019 —
Daniel F. McLennon - Smith CurrieA representative of the Contractors State License Board would like to emphasize a benefit of SB 1042 not mentioned in the report below that Smith Currie published recently. Importantly, the new law allows the CSLB to work with licensees, resolve complaints informally, and avoid a full Administrative Procedure Act hearing brought by the California Attorney General’s office. If the CSLB and licensee are unable to resolve a citation informally, the licensee is still entitled to the APA hearing. Contractors receiving CSLB citations are wise to avail themselves of this process.
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Daniel F. McLennon, Smith CurrieMr. McLennon may be contacted at
dfmclennon@smithcurrie.com
Insurers Reacting to Massachusetts Tornadoes
August 11, 2011 —
CDJ STAFFThe Patriot-Ledger reports that insurers could pay out as much as $200 million to cover homes damaged or destroyed in the tornadoes that hit central and southern Massachusetts in June, 2011. Joseph Murphy, Commissioner of the State Division of Insurance didn?t foresee problems with insurers covering these claims. “At this point, there doesn’t seem to be any one company overexposed in that area,” he told the Patriot-Ledger.
Insurance executives did not think the tornadoes would cause them to raise rates. Steve Chevalier, CEO of NLC Companies, said, “it’s a major event for those impacted by it, but it’s not close to a financial hit to us.”
One insurer noted that the winter weather generated more claims; however the cumulative value of those claims was $15 million.
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Winning Attorney Fees in Litigation as a California Construction Contractor or Subcontractor
December 27, 2021 —
William L. Porter - Porter Law GroupThe General Rule in California: The Winner Does NOT Receive Attorney Fees and Costs:
There is a common misconception that court decisions require the loser in a lawsuit to reimburse the winner for the fees and costs incurred during the lawsuit. Reliance on this misconception in developing a legal strategy for dealing with disputes is a serious strategic error. Where the legal issue is, for example, “breach of contract,” the general rule in California is that there are only two methods by which the winning litigant will be awarded the attorney fees and costs incurred in bringing or defending the lawsuit. The first of these is if the contract in question contains an effective attorney fee clause specifically providing that the prevailing party will recover their attorney fees and costs. The second is if there is a statute on point which provides that the prevailing party will be awarded those fees and costs. The general rule in California is that each party pays their own attorney fees and costs, unless there is an independent legal basis that provides otherwise. This is known as the “American Rule,” used throughout most of the country.
The Issue is Important Because Spending More Money Than You Can Be Awarded is a Losing Strategy:
The importance of whether the prevailing party in a lawsuit will be awarded their fees and costs cannot be underestimated. The party contemplating whether to bring a lawsuit must seriously consider whether it is even worth the trouble. In many cases, unless the one bringing the lawsuit (the “plaintiff”) is entitled to be reimbursed for the considerable attorney fees and costs incurred in bringing the case, it is just not worth doing so. There is no point spending $50,000 on attorneys on a $40,000 claim unless the plaintiff can be awarded both the $40,000 and the $50,000 if the plaintiff wins. Unless fees and costs are awarded, the plaintiff will still be out $10,000 in the very best of cases. For a party sued (the “defendant”) a similar situation arises in that the defendant faces the reality that it may be less expensive to just pay on a frivolous or false claim than to fight it. Either scenario is unsatisfactory. On the whole, it is beneficial to have an attorney fee clause in a contract when either a plaintiff or a defendant must vindicate its rights. Both deserve to be fully compensated to achieve justice. It is also beneficial to have an attorney fee clause in a contract to encourage the one who is at fault to resolve the case rather than risk paying the fees and costs of the other party who is likely to win the case. In either case, the presence of an attorney fee clause facilitates the party in the right and encourages resolution outside of litigation. These are admirable societal goals.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Contractor’s Assignment of Construction Contract to Newly Formed Company Before Company Was Licensed, Not Subject to B&P 7031
October 04, 2021 —
Garret Murai - California Construction Law BlogAdd one more to the Business and Profession Code section 7031 archives. In Manela v. Stone, Case No. B302660 (July 1, 2021), the 2nd District Court of appeal held that Section 7031 did not apply to a contractor licensed as a sole proprietor who assigned his contract to his newly formed company although at the time of the assignment the contractor’s individual contractor’s license had not yet been reissued to the incorporated company.
The Manela Case
On January 4, 2015, John Stone doing business as Stone Construction Company entered into a home remodeling contract with Yosef and Nomi Manela. At the time, Stone had held a contractor’s license since 1982.
On February 11, 2015, after work on the project had begun, Stone formed JDSS Construction Company, Inc., and filed a fictitious business name using the same name Stone Construction Company. Stone applied to the Contractors State License Board to have his contractor’s license issued from himself personally to his new corporation. On March 15, 2015, while waiting for the CSLB to reissue his contractor’s license, Stone entered into an assignment agreement between himself and his new company assigning the Manela construction contract. The assignment agreement was signed by Stone in his personal capacity and as President of JDSS Construction. The assignment agreement was not signed by the Manelas.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
New York Appellate Court Addresses “Trigger of Coverage” for Asbestos Claims and Other Coverage Issues
November 30, 2020 —
Paul A. Briganti - Complex Insurance Coverage ReporterOn October 9, 2020, the New York Supreme Court, Appellate Division, Fourth Department, decided an appeal from a trial court’s 2018 summary judgment ruling on a number of coverage issues arising out of asbestos-related bodily injury claims against plaintiffs Carrier Corporation (Carrier) and Elliott Company (Elliott). See Carrier Corp. v. Allstate Ins. Co., No. 396 CA 18-02292, Mem. & Order (N.Y. Sup. Ct. App. Div. 4th Dep’t Oct. 9, 2020).
The Fourth Department reversed the trial court’s ruling that, under New York’s “injury in fact trigger of coverage,” injury occurs from the first date of exposure to asbestos through death or the filing of suit as a matter of law. The parties agreed that, because the policy language at issue required personal injury to take place “during the policy period,” “the applicable test in determining what event constitutes personal injury sufficient to trigger coverage is injury-in-fact, ‘which rests on when the injury, sickness, disease or disability actually began.’” Id. at 3 (quoting Cont’l Cas. Co. v. Rapid-American Corp., 609 N.E.2d 506, 511 (N.Y. 1993)). The Fourth Department concluded that, in resolving the issue, the trial court erred by relying on inapposite decisions in other cases where: (1) the parties had stipulated or otherwise not disputed that first exposure triggered coverage[1]; or (2) the issue had not been resolved on summary judgment, but rather at trial based on expert medical evidence[2]. The Fourth Department further explained that, even if plaintiffs here had met their initial burden on summary judgment by submitting admissible evidence that asbestos-related injury actually begins upon first exposure, the defendant-insurer’s opposition – which included affidavits of medical experts contradicting that evidence and averring instead that “harm occurs only when a threshold level of asbestos fiber or particle burden is reached that overtakes the body’s defense mechanisms” – raised a triable issue of fact. Id. at 4. The Fourth Department also rejected plaintiffs’ argument that the defendant-insurer was collaterally estopped on the “trigger” issue by a California appellate court’s decision in Armstrong World Industries, Inc. v. Aetna Casualty & Surety Co., 52 Cal. Rptr. 2d 690 (Cal. Ct. App. 1996). The Fourth Department reasoned that the issues litigated in the two cases were not identical because, among other things, California and New York “apply different substantive law in determining when asbestos-related injury occurs.” Carrier, Mem. & Order at 4.
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Paul A. Briganti, White and Williams LLPMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Ignoring Employee ADA Accommodation Requests Can Be Costly – A Cautionary Tale
March 29, 2021 —
Peter Shapiro - Lewis BrisboisAs all employers should well know by now, the Americans with Disabilities Act (ADA) and many state and local counterparts may require employers to engage in an interactive process in response to a disabled employee’s request for a workplace accommodation. A recent ruling by the First Circuit Court of Appeals illustrates why employers have a very strong financial incentive to be proactive in adopting and rigorously enforcing their disability accommodation policies.
In Burnett v. Ocean Properties, decided on February 2, 2021, a wheelchair user employed by a hotel chain call center complained internally that the office’s entrance was not accessible to him. It had heavy doors beyond which was a downward slope that caused the plaintiff’s wheelchair to roll backwards as the door closed on him, requiring him to exert greater force as he struggled to enter. He asked that push-button automatic doors be installed. The employer did not take any meaningful steps to address the complaint with the plaintiff. Eventually he was injured as he tried to open the door. Still, the employer did not follow up on his accommodation request. The plaintiff eventually filed an administrative charge with the Maine Human Rights Commission. The employer met with the plaintiff at that time, but claimed lack of familiarity with ADA compliance requirements and took no action to address the complaint. The plaintiff eventually resigned and filed suit in federal court when the administrative process was completed.
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Peter Shapiro, Lewis BrisboisMr. Shapiro may be contacted at
Peter.Shapiro@lewisbrisbois.com
Lennar Profit Tops Estimates as Home Prices Increase
March 26, 2014 —
John Gittelsohn – BloombergLennar Corp. (LEN), the biggest U.S. homebuilder by market value, reported a fiscal first-quarter profit that beat analysts’ estimates as the company sold more homes at increased prices.
Net income climbed to $78.1 million, or 35 cents a share, in the three months through February, from $57.5 million, or 26 cents, a year earlier, the Miami-based company said in a statement today. Analysts expected earnings of 28 cents a share, the average of 17 estimates compiled by Bloomberg.
Publicly traded builders have been increasing prices to take advantage of a tight supply of new and existing homes while using their economies of scale to reduce costs and widen profit margins. Lennar’s profit, deliveries and orders grew even as inclement weather threatened home sales in much of the U.S. during the quarter, according to Drew Reading, a Bloomberg Industries analyst.
“Lennar followed KB Home (KBH) in reporting order trends indicating a strong start to the spring selling season,” Reading said in a note after the earnings were released.
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John Gittelsohn, BloombergMr. Gittelson may be contacted at
johngitt@bloomberg.net
