Claims Litigated Under Government Claims Act Must “Fairly Reflect” Factual Claims Made in Underlying Government Claim
November 27, 2023 —
Garret Murai - California Construction Law BlogUnlike horseshoes and hand grenades, close sometimes isn’t close enough.
In the next case, Hernandez v. City of Stockton, 90 Cal.App.5th 1222 (2023), the Third District Court of appeal found that a pedestrian who sued a public entity for personal injuries caused by an “uplifted sidewalk” was barred from pursuing his claim when it was revealed that he had in fact injured himself by falling into a hole left by an “empty tree well” (i.e., a tree well that did not contain a tree”). According to the Court, the pedestrian’s claim was barred because the factual basis for recovery asserted in his complaint was not “fairly reflected” in his government claim.
The Hernandez Case
In April 2018, pedestrian Manual Sanchez Hernandez injured himself while walking on a public sidewalk in Stockton, California. He submitted a government claim with the City of Stockton claiming that his injuries, which included injuries to his knee, hands and back, was caused by a dangerous condition on public property. In his government claim, Hernandez alleged that he tripped on an “uplifted sidewalk” at or near 230 E. Charter Way in Stockton, California and that his injuries were due because the City “negligently and recklessly designed, maintained and operated the subject property so as to cause [his] injuries.”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Ornate Las Vegas Palace Rented by Michael Jackson for Sale
August 13, 2014 —
Emily Heffter – BloombergA unique and ornate palace for sale in Las Vegas was home to Michael Jackson in the strange and isolated years before his death. In fact, the King of Pop was the last tenant in the 24,000-square-foot estate, and his portrait still hangs above the fireplace.
Jackson eschewed the main house and lived in the guest villa while he was rehearsing for his Las Vegas show, The One, from 2007-2009, according to listing agent Eddy Martinez of Miami Beach-based Worldwide Properties. To avoid the paparazzi, Jackson traveled through a tunnel under the main house and got directly into a car parked at the end of it, Martinez said.
The Hacienda Palomino has only had two owners since theater developer Horst Schmidt built it in 1952. The home at 2710 Palomino Ln is "enchanting," said Martinez, and the property's unique features — including a musical note insignia used as an architectural feature — intrigued the late superstar.
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Emily Heffter, Bloomberg
Utility Contractor Held Responsible for Damaged Underground Electrical Line
October 11, 2017 —
Brett M. Hill - Ahlers & Cressman, PLLCThe Washington State Court of Appeals recently addressed an excavation contractor’s responsibilities under the Underground Utilities Damage Prevention Act (UUDPA), RCW 19.122. That statute was enacted in 2011 and imposed certain statutory duties on parties involved with projects requiring excavation.
In this case, Titan Earthworks, LLC contracted with the City of Federal Way to perform certain street improvements including installation of a new traffic signal. During the process of excavating for the traffic signal, Titan drilled into an energized underground Puget Sound Energy power line. PSE sought damages from Titan and Titan sued the City of Federal Way.
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Brett M. Hill, Ahlers & Cressman, PLLCMr. Hill may be contacted at
bhill@ac-lawyers.com
Recent Opinions Clarify Enforceability of Pay-if-Paid Provisions in Construction Contracts
May 29, 2023 —
Patrick McKnight - The Dispute ResolverSeveral recent opinions and legislative actions have brought the controversial nature of pay-if-paid provisions into focus in early 2023. Pay-if-paid provisions are contractual mechanisms designed to shift the risk of non-payment from General Contractors to lower-tier subcontractors. In other words, pay-if-paid provisions generally do not require payment to downstream subs until after the GC or Prime are themselves paid in-full by the owner. Recent developments reflect the differing approaches taken by courts when addressing pay-if-paid provisions, ranging broadly from prohibition to full enforceability. Other jurisdictions fall somewhere in the middle, viewing such provisions with varying amounts of skepticism on the grounds heir impact on smaller downstream subs is disproportionate and unfair.
Pay-if-paid provisions are often contrasted against “pay-when-paid” provisions. Pay-when-paid provisions may require payment within a specified duration but remove the upstream contractor’s payment in-full as a condition precedent. The brief discussion below will not explore pay-when-paid, no damage for delay provisions, or statutory prompt payment acts. Instead, this article serves as a primer on recent legal developments related to pay-if-paid provisions exclusively.
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com
Contractor Wins in Arbitration Only to Lose Before the Superior Court on Section 7031 Claim
June 19, 2023 —
Garret Murai - California Construction Law BlogIf you’re a regularly reader of the California Construction Law Blog you’re aware of Business and Professions Code section 7031 which courts have variously described as “harsh[ ],” “draconian” and “unjust,” but, importantly, nevertheless valid. We haven’t seen many cases applying Section 7031 in an arbitration setting, however, until now.
In Vascos Excavation Group LLC v. Gold, 87 Cal.App.5th 842 (2022), a contractor who prevailed on a payment claim in arbitration, had its victory snatched from its fingertips by the Superior Court which found that the arbitrator had exceeded her authority because the contractor was subject to Section 7031.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Subcontractor’s Claim against City Barred by City’s Compliance with Georgia Payment Bond Statute
March 29, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPIn a recent Georgia Court of Appeals case, the Court was tasked with determining whether the City of Atlanta’s compliance with the Georgia Payment Bond Statutes barred a subcontractor from recovery against it after the general contractor failed to pay and the surety became insolvent.
Squared Plumbing Co., LLC (J. Squared), was a subcontractor on a project to clean up sewage spills in approximately 100 dwellings for the City of Atlanta. As required by the contract executed with the City, the general contractor, Scott and Sons Holdings, LLC (Scott and Sons), obtained a $200,000 payment bond from its surety, First Seaford Surety, Inc. (First Seaford). J. Squared sought to collect on the payment bond when Scott and Sons failed to pay J. Squared for the work it performed on the project. However, First Seaford became insolvent. J. Squared subsequently filed a claim against Scott and Sons and the City to recover $140,000 for its work on the project.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Condominium Association Responsibility to Resolve Construction Defect Claims
July 23, 2014 —
Nicholas D. Cowie – Maryland Condo Construction Defect Law BlogThe Maryland Court of Special Appeals recently issued an opinion in Greenstein v. Council of Unit Owners of Avalon Court Six Condominium Inc. finding that an association can be sued by its unit owner members if it fails to take timely legal action against a developer. In that case, the association was aware of construction defects, but failed to take action to preserve its claim and then filed a lawsuit against the developer too late, after the statute of limitations expired. As a result, the suit against the developer was dismissed and the association was forced to assess its unit owner members for the $1 million in repair costs. Some of the unit owners then sued their association, seeking to recover the cost of their assessments on the ground that the association was negligent in failing to pursue a timely legal action against the developer.
On appeal, the court was asked to decide whether state law permits owners to sue their condominium association for negligently failing to sue a developer for common element construction defects. The court, in an unpublished opinion, found that an association could be held liable to its members. The court said: “The duty to maintain, repair and replace the common elements together with the exclusive right to initiate litigation regarding the common elements [which was stated in a provision of the association’s bylaws] creates a concomitant obligation on the part of the [association] to pursue recovery from [the developer] on behalf of [the unit owners] for damage to the common elements caused by [the developer’s] negligence, breach of contract or violation of any applicable law.”
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Nicholas D. Cowie, Maryland Condo Construction Defect Law BlogMr. Cowie may be contacted at
ndc@cowiemott.com
When Is Mandatory Arbitration Not Mandatory?
August 19, 2015 —
Christopher G. Hill – Construction Law MusingsI have discussed my views on mandatory mediation in construction contracts at other places here at Musings and also discussed how the contract is king here in Virginia. A recent Charlottesville, Virginia Circuit Court case combined these two concepts to allow a subcontractor to proceed straight to litigation despite various ADR provisions in the contract between it and the general contractor.
In ProBuild v. DPR & Continental Casualty, the Court looked at a series of ADR steps that were to be followed in the contract between the parties in order to allow DPR, the general contractor to require arbitration as opposed to litigation. The Court considered the surety’s motion to stay the litigation against it pending arbitration between ProBuild and DPR.
In ProBuild, the Court looked at a contractual provision that provided certain steps to be followed in the event of a dispute, starting with a notice of dispute, followed by negotiation, followed by mediation should the disputing party request it, and in the event that mediation was tried and failed, the disputing party or general contractor could require arbitration. The Court determined that ProBuild, the subcontractor, was the disputing party under the contract, had pursued unsuccessful formal negotiations and that neither ProBuild nor DPR requested mediation. The Court then held that because unsuccessful mediation was a prerequisite to required arbitration and because mediation was never pursued, the mandatory arbitration clause did not apply.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com