Staffing Company Not Entitled to Make a Claim Against a Payment Bond and Attorneys’ Fees on State Public Works Payment Bonds
August 12, 2024 —
Garret Murai - California Construction Law BlogIt’s not quite Baskin Robbin’s “31 Flavors” but the panoply of statutory construction payment remedies available to contractors, subcontractor and material suppliers in California, from mechanics liens to stop payment notices to payment bond claims, can be tempting to reach for when you are not paid. However, some flavors are more readily available than others, as a staffing agency discovered in
K & S Staffing Solutions, Inc. v. The Western Surety Company, Case Nos. C096705 and C097987 (January 2, 2024).
The K & S Staffing Case
The California Department of Transportation awarded VSS International, Inc. two public works construction contracts for road maintenance. Each involved an expenditure of over $25,000 and VSSI obtained a payment bond from Western Surety Company.
Titan DVBE Inc. was a subcontractor on both projects. For most years, Titan employed its own workers. However, when it learned that its insurance carrier would no longer be offering workers’ compensation insurance in California it switched to K & S Staffing Solutions, Inc. to fulfill its staffing needs.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Texas and Georgia Are Paying the Price for Sprawl
March 15, 2021 —
Conor Sen - BloombergCities in the Sun Belt South have been needing a more modern development model for a while. That's created tensions, both economically and politically, that have only accelerated during the past year's pandemic. My colleague Noah Smith wrote a column about this specific to Texas, but it's broader than any one state and it's useful to think about how we got to this point and why these issues are relevant in 2021 in a way they weren't a generation ago.
There's an institutional reluctance to pivot away from the Sun Belt model defined by low taxes and cheap land because of how successful it was for key constituencies for decades. Coming out of World War II, there was a scramble nationwide to build more housing in response to soldiers coming home from war and pent-up demand for family formation.
The combination of the automobile as the nation's now-dominant form of transportation and the passage of the Federal Highway Act of 1956 made building out the suburbs of less-populated southern states an irresistible growth model for politicians and economic development interests alike. If it required tax breaks and fewer regulations to lure jobs and people from northern states to accelerate the process, so be it.
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Conor Sen, BloombergMr. Sen may be contacted at
csen9@bloomberg.net
Parties Can Agree to Anything In A Settlement Agreement………Or Can They?
October 17, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldA settlement agreement is a contract. When parties to pending litigation enter into a settlement, they enter into a contract. Such a contract is subject to the general law governing all contracts. (T. M. Cobb Co. v. Superior Court (1984) 36 Cal.3d 273, 280 [204 Cal. Rptr. 143, 682 P.2d 338] [offers by a party to compromise under Code Civ. Proc., § 998].) Courts seek to interpret contracts in a manner that will render them “lawful, operative, definite, reasonable, and capable of being carried into effect’” without violating the intent of the parties. (Robbins v. Pacific Eastern Corp. (1937) 8 Cal.2d 241, 272–273; Kaufman v. Goldman, (2011) 195 Cal. App. 4th 734, 745.
A settlement agreement like a contract is a document that is typically negotiated between the parties to the agreement and it is up to the parties to determine its terms. Settlements take time and sometimes negotiating the settlement terms takes longer. This is especially true in complex litigation and multiparty matters where negotiating the settlement terms is just as contentious as litigating the matter. Just like contracts, in a settlement agreement the parties cannot agree to terms that violate public policy. A contract is thought to be against public policy if it results in a breach of law, harms citizens, or causes injury to the state. Contracts that are voided on public policy grounds carry no legal obligations. For example, an employer cannot force an employee to sign a contract that forbids the worker from joining a union.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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Insurer's Failure to Settle Does Not Justify Multiple Damages under Unfair Claims Settlement Law
February 04, 2013 —
Tred R. EyerlyAlthough the insurer failed to understand the pertinent law that mandated coverage under the policy, its actions did not rise to an unfair claim settlement practice justifying multiple damages. Gelwan v. Vermont Mut. Ins. Co., 2013 U.S. app. LEXIS 210 (2nd Cir. Jan. 4, 2013).
In 1999, a contractor re-roofed the insureds' home. The job was poorly done, and an imperfect seal was created. Over several years, various structures within the house were damaged by water, which caused the rotting of structural beams and joists.
The insureds sued for coverage under their homeowners policy.
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Tred Eyerlyte@hawaiilawyer.com
2014 WCC Panel: Working Smarter with Technology
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFDon MacGregor, Project Manager and General Contractor with Bert L. Howe & Associates, will be joining Brian Kahn, Esq. of Chapman, Glucksman, Dean, Roeb & Barger, Paul R. Kiesel, Esq. of Kiesel Law, Hon. Peter Lichtmen (ret), Hon. Nancy Wieben Stock (ret), and Peter S. Curry of Curry Stenger Engineering as a panelist in the break-out session Working Smarter With Technology at the 2014 West Coast Casualty Construction Defect Seminar being held May 15th and 16th at the Disneyland Hotel in Anaheim, California.
With a strong focus on the topic of this year’s seminar, Back to Business . . . Working Smarter, Not Harder, the panel will discuss ways that technology can assist our industry in working more efficiently, saving money and providing a better product. Conversely, the panel will also acknowledge the limitations of technology and areas where the use of advanced technology may not be appropriate.
The information provided will be of benefit to the construction defect litigator but equally valuable to other types of complex litigation. Accordingly, this panel will appeal to those whose scope of work goes beyond the bounds of construction defect. A brief outline of topics that will be addressed by each panelist include remote virtual appearance and deposition attendances, document management software, how to create, manage and edit documents using remote technology, technological tools that allow for easier communications, transfer of information and flexibility, expert technology, and technology in mediation and trial.
The panel discussion will go beyond past seminar discussions in that they will discuss and demonstrate tools that are just coming into use now as well as new tools which are being released prior to the seminar.
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Insurer Defends Denial in Property Coverage Dispute Involving Marijuana Growing Operations
March 14, 2018 —
Michael Levine and Geoffrey Fehling - Hunton Insurance Recovery BlogLast month, we
reported on the ongoing insurance coverage dispute between commercial landlord KVP Properties, Inc. and its property insurer, Westfield Insurance Company. The dispute arises from an October 2015 DEA raid on KVG-owned rental units in Novi, Michigan, which uncovered damage to the units related to the tenants’ marijuana growing operations. The arguments raised by KVG on appeal highlight a number of important marijuana-related coverage issues, which Westfield has now addressed in opposition.
Reprinted courtesy of
Michael Levine, Hunton & Williams LLP and
Geoffrey Fehling, Hunton & Williams LLP
Mr. Levine may be contacted at mlevine@hunton.com
Mr. Fehling may be contacted at gfehling@hunton.com
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10 Answers to Those Nagging Mechanics Lien Questions Keeping You Up at Night. Kind of
November 05, 2014 —
Garret Murai - California Construction Law BlogConstruction lawyers may not ponder the great questions in life.
We leave that to the estate planning attorneys.
But ponder we do.
And the next case, as I’ll explain below, “kind of” answers 10 important mechanics lien questions we construction attorneys toss and turn over at night.
Background
In Palomar Grading & Paving, Inc. v. Wells Fargo Bank, Case Nos. G049907 and G049910 (October 14, 2014), developer Inland-LGC Beaumont, LLC (“Inland”) hired general contractor 361 Group Construction Services, Inc. (“361″) to construct a Kohl’s department store in Beaumont, California.
The Kohl’s department store was to be constructed on one parcel of a three-parcel tract. Inland later sold the parcel on which the Kohl’s department store was to be located to Kohl’s and the two other parcels were later acquired by Wells Fargo who foreclosed on the construction loan for the project.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
Federal Court Holds That Other Insurance Analysis Is Unnecessary If Policies Cover Different Risks
September 28, 2020 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn Greater Mutual Insurance Company v. Continental Casualty Company, 2020 WL 5370419 (S.D.N.Y. September 8, 2020), the United States District Court for the Southern District of New York had occasion to consider the “other insurance” provisions of a commercial general liability policy, issued by Greater Mutual Insurance Company (“GNY”), and a directors and officers (“D&O”) policy, issued by Continental, to the same insured. The GNY policy covered, inter alia, property damage caused by an occurrence, as well as “personal advertising injury,” defined to include “[t]he wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor.” The Continental D&O policy covered claims for wrongful acts, including “wrongful entry or eviction, or other invasion of the right to private occupancy. . . .” Unlike the GNY policy, however, the Continental policy expressly excluded coverage for damage to tangible property.
In the underlying action, the plaintiffs alleged that the insured engaged in construction work to fix a leak from a terrace on the seventeenth floor. In doing so, the insured accessed the plaintiffs’ roof terrace. The plaintiffs alleged that the construction workers installed and stored construction materials on the roof terrace, making the plaintiffs unable to access the terrace. Plaintiffs also alleged that their deck furniture may have suffered damage, and that the workers had a “direct line of sight” into their unit, resulting in the plaintiffs having to leave their unit frequently. Causes of action were for property damage, constructive eviction, partial constructive eviction, and invasion of privacy.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com