Construction Defect Reform Dies in Nevada Senate
May 10, 2013 —
CDJ STAFFNevada’s SB161 has failed to move out of the Senate Judiciary Committee. The bill would have reduced the time in which homeowners could file suits and also would have forbidden the inclusion of attorney’s fees as damages. A similar bill remains active in the Nevada House.
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Steven Cvitanovic to Present at NASBP Virtual Seminar
January 13, 2017 —
Steven M. Cvitanovic - Haight Brown & Bonesteel LLPPartner Steven Cvitanovic will speak at the National Association of Surety Bond Producers (NASBP) Virtual Seminar on Tuesday, January 31 at 11:00 A.M. PST. The presentation will provide a brief overview of risks covered by traditional insurance products, and will then expand on significant exposures arising from a contractors operations/contracts that are not covered by traditional insurance. The session will provide examples of these non-traditional risks and strategies to mitigate them.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
Sellers of South Florida Mansion Failed to Disclose Construction Defects
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFA couple who reportedly sold their custom, beach-front home on Golden Beach for more money than any other home in that town previously, may have failed to disclose construction defects, according to Daily Business Review.
The original owners, reported Daily Business Review, claimed (according to court documents) that “they were ‘unable to spend even one night because an overwhelming smell of mold in the home triggered a severe reaction in Mrs. Hochberg.’" They also alleged the new home had “cracked walls, drafty doors, leaky windows, poorly cut marble and peeling stucco.” The owners sued the subcontractors, but lost due to not filing within the four-year statute of limitations.
While water leaks were disclosed during the sale with a notation that all leaks had been repaired, “the extent of the home's repair history was not discussed during nearly eight months of haggling over the property, the buyer's broker said.”
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Social Distancing and the Impact on Service of Process Amid the COVID-19 Pandemic
April 13, 2020 —
Robert Devine, James Burger & Susan Zingone - White and WilliamsService of process usually requires person-to-person contact and is an essential part of civil procedure. It notifies the defendant of the legal proceedings against him/her and establishes jurisdiction. “Process” refers to the documents that must be served on a defendant. If service of process is not performed pursuant to the governing rules of civil procedure, a lawsuit cannot proceed.
Service of Process in NJ and PA
Personal service is required to be the first attempted means of service in New Jersey. If personal service is not successful, then service may be made by mailing a copy of the process via registered or certified mail with return receipt requested to the defendant’s usual place of abode or business/place of employment, or to an authorized agent. The party attempting to serve the defendant by mail can choose to mail the process by regular mail as well, and if the defendant refuses to accept or claim the registered or certified copy, and the regular mail copy is not returned, then service is considered effectuated.
Pennsylvania allows for a defendant to be served via personal service by handing a copy to the defendant or by delivering a copy to an adult family household member at the defendant’s residence. Pennsylvania also permits service of process by mail. Process can be served by mail requiring a signature of the defendant. If the mail is unclaimed, alternative service must be attempted.
Reprinted courtesy of White and Williams attorneys
Robert Devine,
James Burger and
Susan Zingone
Mr. Devine may be contacted at deviner@whiteandwilliams.com
Mr. Burger may be contacted at burgerj@whiteandwilliams.com
Ms. Zingone may be contacted at zingones@whiteandwilliams.com
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Court Holds That One-Year SOL Applies to Disgorgement Claims Under B&P Section 7031
November 23, 2020 —
Garret Murai - California Construction Law BlogWe’ve talked before about Business and Professions Code section 7031 which courts have referred to as “harsh[ ],” “unjust[ ]” and even “draconian.” Under Section 7031, a contractor performing work requiring a contractor’s license, but who doesn’t: (1) is prohibited from suing to recover payment for work performed; and (2) is required to disgorge all money paid by the project owner for work performed. This is true even if the project owner knew that the contractor was unlicensed, the contractor was only unlicensed during part of the time it performed work requiring a license, and even if the work performed by the contractor was free of defects. In short, it’s the nuclear bomb of remedies against a contractor.
However, until now, no court has addressed when a project owner is permitted to raise a Business and Professions Code section 7031 claim against a contractor. In the next case, Eisenberg Village of the Los Angeles Jewish Home for the Aging v. Suffolk Construction Company, Inc., Case No B297247 (August 26, 2020), the 2nd District Court Appeal finally answers this question.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Homebuilders Offer Hope for U.K. Economy
August 20, 2014 —
Mark Gilbert – BloombergThe two elements of the U.K. economy that the Bank of England currently finds most worrying are the overheating housing market and the paucity of wage growth. Earnings reports this week from two of the nation's biggest homebuilders make for cheery reading on both counts.
Persimmon Plc, the U.K.'s largest homebuilder by market value, said today it completed 6,408 new homes in the first half of the year, a 28 percent increase from the year-earlier period. Bovis Homes Group, which mostly builds what it calls "traditional" family homes in the south of England outside London, said it sold 1,487 new homes in the first six months, a gain of 54 percent.
"The government has told us that we need 230,000 new homes per annum, and far be it for us to disagree with that," Bovis Chief Executive Officer David Ritchie said on a conference call. He expects to build about 3,650 homes this year, and reckons that "5,000 to 6,000 homes per annum is a very sensible target for the business."
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Mark Gilbert, BloombergMr. Gilbert may be contacted at
magilbert@bloomberg.net
Texas EIFS Case May Have Future Implications for Construction Defects
October 02, 2013 —
CDJ STAFFLennar Homes addressed a problem with EIFS in homes built in Texas in the 1990s by replacing every roof they had built. Some of those homes had problems with leaks, rotting, or termites, but other roofs hadn’t suffered any problems. Lennar’s insurers initially refused coverage. Lennar managed to settle with all but one, Markel American Insurance.
Their dispute formed the case Lennar Corp. v. Markel American Insurance Co. This was first tried before a jury and eventually appealed to the Texas Supreme Court. Brian S. Martin of Thompson Coe Cousins & Irons LLP discusses this case at Insurance Journal.
Markel’s claim was that under the policy language, Lennar could not make voluntary payments without getting Markel’s consent, which they did not. But the Texas Supreme Court disagreed, determining that Lennar took, as Mr. Martin notes, “a reasonable approach to a serious problem.”
Markel also made the claim that the whole amount of the damages was not covered by the policy, as they did not view the policy as covering the cost of determining the extent of the damage. The Court disagreed, noting that “under no reasonable construction of the phrase can the cost of finding EIFS property damage in order to repair it not to be considered ‘because of the damage.’”
Mr. Martin concludes by calling the Texas Supreme Court decision “a frontal assault on several critical provisions of liability policies that will assuredly lead to further litigation.” He also notes that the decision “may indicate a shift in the Court’s approach in insurance cases to a more result-oriented jurisprudence.”
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Liability Insurer Precluded from Intervening in Insured’s Lawsuit
September 17, 2018 —
David Adelstein - Florida Construction Legal UpdatesThere are cases where I honestly do no fully understand the insurer’s position because it cannot have its cake and eat it too. The recent opinion in Houston Specialty Insurance Company v. Vaughn, 43 Fla. L. Weekly D1828a (Fla. 2d DCA 2018) is one of those cases because on one hand it tried hard to disclaim coverage and on the other hand tried to intervene in the underlying suit where it was not a named party.
This case dealt with a personal injury dispute where a laborer for a pressure washing company fell off of a roof and became a paraplegic. The injured person sued the pressure washing company and its representatives. The company and representatives tendered the case to its general liability insurer and the insurer–although it provided a defense under a reservation of rights—filed a separate action for declaratory relief based on an exclusion in the general liability policy that excluded coverage for the pressure washing company’s employees (because the general liability policy is not a workers compensation policy). This is known as the employer’s liability exclusion that excludes coverage for bodily injury to an employee. The insurer’s declaratory relief action sought a declaration that there was no coverage because the injured laborer was an employee of the pressure washing company. The pressure washing company claimed he was an independent contractor, in which the policy did provide limited coverage pursuant to an endorsement.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com