Los Angeles Seeks Speedier Way to Build New Affordable Homes
April 29, 2024 —
Patrick Sisson - BloombergArchitect Brian Lane calls it “1,000 ways to no.” That’s the wall of red tape that he and his colleagues at the Santa Monica-based firm Koning Eizenberg hit when they propose affordable housing projects around Los Angeles. Regulations and code enforcement lead to delays, which drive up costs, kill projects, and exacerbate Southern California’s stifling housing shortage.
But over the last year, builders say that this bureaucratic morass has eased somewhat, thanks to the mayoral order known as
Executive Directive 1.
Mayor Karen Bass signed ED 1 shortly after taking office in December 2022, at the site of an infamous project
that took more than a decade to be approved. The emergency declaration promised to open a new era, directing city departments involved in planning and decision-making to expedite 100% affordable projects, sidestepping codes and regulations that have long added delays and costs. Approvals that might otherwise have taken a year or more are now mandated to happen within a 60-day window, with building permits to be issued within five days.
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Patrick Sisson, Bloomberg
Superintendent’s On-Site Supervision Compensable as Labor Under Miller Act
March 13, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller Act payment bond decision out of the District of Columbia Circuit Court of Appeals, U.S. f/u/b/o Civil Construction, LLC v. Hirani Engineering & Land Surveying, PC, 58 F.4th 1250 (D.C. Circ. 2023), dealt with the issue of whether a subcontractor’s superintendent constitutes recoverable “labor” within the meaning of the Miller Act and compensable as a cost under the Miller Act that typically views labor as on-site physical labor.
The issue is that the Miller Act covers “[e]very person that has furnished labor or material in carrying out work provided for in a contract.” Civil Construction, supra, at 1253 quoting 40 U.S.C. s. 3133(b)(1). The Miller Act does not define labor. The subcontractor claimed labor includes actual superintending at the job site. The surety disagreed that a superintendent’s presence on a job site constitutes labor as the superintendent has to actually perform physical labor on the job site to constitute compensable labor under the Miller Act.
The subcontractor argued its subcontract and the government’s quality control standards required detailed daily reports that verified manpower, equipment, and work performed at the job site. It further claimed its superintendent had to continuously supervise and inspect construction activities on-site: “[the] superintendent had to be on-site to account for, among other things, hours worked by crew members, usage and standby hours for each piece of equipment, materials delivered, weather throughout the day, and all work performed. These on-site responsibilities reflected the government’s quality control standards, under which the superintendent as ‘the most senior site manager at the project, is responsible for the overall construction activities at the site…includ[ing] all quality, workmanship, and production of crews and equipment.” Civil Construction, supra, at 1253-54.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Several Lewis Brisbois Partners Recognized by Sacramento Magazine in List of Top Lawyers
October 03, 2022 —
Lewis BrisboisSacramento, Calif. (September 2, 2022) - Sacramento Magazine has recognized several partners from Lewis Brisbois' Sacramento office on its List of Top Lawyers of 2022. The list is developed through a peer nomination process, with nominees then evaluated on the basis of survey results, the legitimacy of their licenses, and their standing with the State Bar of California. Qualifying attorneys who then receive the highest number of votes from their peers are included in the list, which is organized by area of practice.
Congratulations to:
- Managing Partner John S. Poulos, recognized for Construction Law and Construction Litigation.
- Partner Paul R. Baleria, recognized for Medical Malpractice.
- Partner Scott E. Bartel, recognized for Securities & Corporate Finance and Securities Litigation.
- Partner Greg L. Johnson, recognized for Banking & Financial Services.
- Partner Eric J. Stiff, recognized for Mergers & Acquisitions.
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Lewis Brisbois
The Hidden Price of Outdated Damage Prevention Laws: Part I
November 21, 2018 —
Brigham A. McCown - Construction ExecutiveExcavators know that dialing 811 triggers a process that requires all utilities operating in the service area to find and mark the location of their underground facilities so that they are not damaged during the excavation process. In addition, marking the location of the utilities is intended to keep the public safe, for instance by preventing an excavator from striking a gas line.
But excavators also know that in most states, the laws and regulations that govern these procedures are weak and that enforcement is even weaker. It’s an unfortunate fact that excavators and the public – typically the least culpable parties – suffer the consequences of weak damage prevention laws and lack of strong enforcement regimes.
Reprinted courtesy of
Brigham A. McCown, a publication of Associated Builders and Contractors. All rights reserved.
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Courts Favor Arbitration in Two Recent Construction Dispute Cases
November 21, 2018 —
Jason Plaza - The Subrogation StrategistRecent court decisions have signaled the courts’ proclivity to prefer arbitration over full-fledged litigation when provisions in construction contracts are called into question. While the courts recognize a party’s constitutional right to a jury trial, the courts also lean strongly towards resolving disputes via arbitration as a matter of public policy, especially if a construction contract carves out arbitration as an alternative to litigation.
In Avr Davis Raleigh v. Triangle Constr. Co., 818 S.E.2d 184 (N.C. App. 2018), the North Carolina Appeals Court reviewed the issue of whether the contracting parties selected binding arbitration as an alternative to litigation. The contract at issue was an AIA A201-2007 form document. Under the terms of the contract, the parties elected to arbitrate claims under $500,000 but to litigate claims over this amount. However, if there were several claims under $500,000 but the aggregate of all claims exceeded $500,000, then the contract implied that all claims would be arbitrated. Since the claims involved were an amalgamation of the two, the contracting parties disagreed about whether the arbitration provision would apply. The plaintiff interpreted this provision to mean litigation was mandatory when at least one claim exceeded $500,000 and that arbitration was mandatory when no single claim exceeded this amount. In contrast, the defendant interpreted this provision as meaning that when there were several claims worth less than $500,000 individually, but more than $500,000 aggregately, then all claims must be arbitrated. The trial court agreed with the plaintiff’s interpretation.
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Jason Plaza, White & Williams LLP
New York State Legislature Reintroduces Bills to Extend Mortgage Recording Tax to Mezzanine Debt and Preferred Equity
March 15, 2021 —
Steven E. Coury & Marissa Levy - White and WilliamsCompanion bills in the New York State Legislature, Assembly Bill No. A3139 and Senate Bill No. S3074, if enacted, would subject mezzanine loans and preferred equity investments to the same recording and taxation requirements placed on mortgages.
The bills were reintroduced last month after similar bills (S7231/A9041) were introduced in the 2019-2020 legislative session. The prior bills died in committee when last year’s legislative session adjourned.
As discussed in our prior alert, the proposed bills would require: (1) a financing statement evidencing any mezzanine debt and/or preferred equity investments related to real property to be filed in the county in which the real property is located and (2) a recording tax, at the same rate as the applicable mortgage recording tax rate (2.80% for commercial mortgages over $500,000 in New York City), to be imposed on the amount of the debt and/or investment at the time the financing statement is filed. The bills contain a limited carve-out for owner-occupied residential cooperatives.
Reprinted courtesy of
Steven E. Coury, White and Williams and
Marissa Levy, White and Williams
Mr. Coury may be contacted at courys@whiteandwilliams.com
Ms. Levy may be contacted at levmp@whiteandwilliams.com
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Hunton Insurance Lawyer, Jae Lynn Huckaba, Awarded Miami-Dade Bar Association Young Lawyer Section’s Rookie of the Year Award
June 17, 2024 —
Hunton Insurance Recovery BlogCongratulations to Jae Lynn Huckaba on winning the Miami-Dade Bar Association Young Lawyer Section’s inaugural Rookie of the Year Award. This year, the MDB YLS Officers created the Rookie of the Year Award to recognize one new MDB Board of Director who consistently moves the YLS forward. President of the YLS, Beau Blumberg, stated, “Jae Lynn jumped right into the YLS, helping wherever it was needed, from the Breakfast with the Judiciary event to Miami Nights to multiple service projects and social events. After one year, we know Jae Lynn is destined for great things in the YLS.”
Jae Lynn is a member of Hunton Andrews Kurth’s national Insurance Recovery practice and is based in the Firm’s Miami, Florida office. Jae Lynn serves as a director for the MDB YLS, which consists of MDB members aged 36 or under. The YLS has over 1,300 members.
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Hunton Andrews Kurth LLP
No Coverage for Construction Defects Under Arkansas Law
January 13, 2017 —
Tred R. Eyerly - Insurance Law Hawaii The federal district court found there was no coverage for the insured contractor under Arkansas law when sued for construction defects by two homeowners. Auto-Owners Ins. Co. v. Hambuchen Constr., 2016 U.S. Dist. LEXIS 160364 (W.D. Ark. Nov. 18, 2016).
In one case, the Pierces hired Hambuchen, the insured contractor for the construction of a new home, which was completed in 2006. Two years after moving in, the Pierces experienced water leaks at various locations inside the home and the basement flooded. Water damage rendered the back deck unstable. In 2010 and 2011, Hambuchen made repairs to stop leaks on the decks, but in 2012 the back deck again showed signs of water damage. The Pierces sued, and Auto-Owners provided a defense under a reservation of rights.
In the second case, the Lessmanns hired Hambuchen in 2005 as general contractor to construct their new home. Following completion of the home, the Lessmanns complained about scratched windows. The Lessmanns filed suit against Hambuchen for breach of the construction contract by failing to build their home in a workmanlike manner. The Lessmanns filed suit in May 2009. Auto-Owners was not aware of the suit until 2015 when it received notice that the Lessmanns had filed an amended complaint. The Lessmans' suit went to trial and Hambuchen prevailed.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com