2019 California Construction Law Update
January 15, 2019 —
Garret Murai - California Construction Law BlogThe California State Legislature introduced 2,637 bills during the second year fo the 2017-2018 Legislative Session. Of these, 1,016 were signed into law.
It was last official bill signing for Governor Jerry Brown who ends not only his second term as Governor but a colorful political career spanning nearly 50 years during which he has dated pop stars, practiced Zen meditation, kicked it with radical ex-nuns and an Apollo astronaut and, at 80, has sparred regularly with President Trump on issues ranging from climate change to immigration to net neutrality.
For those in the construction industry it wasn’t quite as exciting, unless of course you count SCR 120, which officially makes April “California Safe Digging Month.” Hooray!
Each of the bills discussed below took effect on January 1, 2018, except as otherwise stated.
Building Codes
SB 721 – Requires the inspection of exterior elevated elements, including balconies, decks, porches, stairways, walkways, and elevated entry structures, of multifamily buildings with three or more dwelling units by an architect, engineer or contractor with a Class A, B or C-5 license by January 1, 2025 and by January 1st every six years thereafter. Elements posing an immediate threat to the safety of occupants, or which prevent occupant access or emergency repairs, are required to be repaired immediately. Elements not posing an immediate threat to the safety of occupants, or which do not prevent occupant access or emergency repairs, are required to be repaired within 180 days.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
Time Limits on Hidden Construction Defects
November 06, 2013 —
CDJ STAFFFrom the time a home is built, California starts a ten-year countdown, which Alan I. Schimmel, writing at California Lawyer, notes is not a statute of limitations, but a statute of repose. During that time, homeowners might be able file a claim over construction defects that don’t immediately become evident. After that ten-year limit, “any latent defects they discover would have to be corrected using money from their own pockets.”
The readily observable defects, the patent defects, have a four-year limit. Mr. Schimmel focusses on latent defects, “which generally lurk behind walls or underground.” He also notes that “they may cause catastrophic damage before they are even detected.” If a construction defect is found, the “law requires the owner of a single-family residence to notify the builder in writing of the claimed defects.”
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Nevada Senate Rejects Construction Defect Bill
June 07, 2011 —
CDJ STAFFThe Las Vegas Sun reports that Assembly Bill 401, the construction defect bill, lost in a vote of 9 to 12. The measure extended the time for construction defect suits to be filed, awarded legal costs only to successful plaintiffs, and set a definition of construction defects. Two Democrats joined the Republicans in the Senate in defeating the bill.
Read the full story…
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GA Federal Court Holds That Jury, Not Judge, Generally Must Decide Whether Notice Was Given “As Soon as Practicable” Under First-Party Property Damage Policies
November 01, 2021 —
Edward M. Koch & Lynndon K. Groff - White and WilliamsInsurance policies covering first-party property damage often require insureds to notify insurers of a loss “as soon as practicable.” Where an insured may or may not have given notice “as soon as practicable,” the issue arises as to who should determine whether the insured complied with this requirement: the judge or the jury?
On October 6, 2021, the United States District Court for the Middle District of Georgia addressed this issue in Vintage Hospitality Group LLC v. National Trust Insurance Company, Case No. 3:20-cv-90-CDL, 2021 U.S. Dist. LEXIS 192651 (M.D. Ga. Oct. 6, 2021). In Vintage Hospitality, a July 2018 hailstorm damaged the roof of a hotel owned by the policyholder. The policyholder did not discover leaks from the hotel roof until two months later, in September 2018. The policyholder, not realizing that the hailstorm had caused the leaks, unsuccessfully attempted to repair the leaks. Eventually, in February 2020—19 months after the hailstorm and 17 months after the policyholder discovered the leaks—the policyholder hired a construction company to evaluate the roof. It was not until then that the policyholder learned that the hotel had sustained hail damage from the July 2018 storm. The policyholder notified its July 2018 first-party property damage insurer a few days later.
Reprinted courtesy of
Edward M. Koch, White and Williams and
Lynndon K. Groff, White and Williams
Mr. Koch may be contacted at koche@whiteandwilliams.com
Mr. Groff may be contacted at groffl@whiteandwilliams.com
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The Flood Insurance Reform Act May be Extended to 2016
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFThe Flood Insurance Reform Act of 2011 (H. R. 1309) has been referred to the House Committee on Financial Services—the first step in the legislative process. The bill, if passed, would extend the program to September 30, 2016. It is currently slated to be terminated September 30 of this year. The bill also contains changes to premium rates, mapping protocols, and privatization initiatives.
H. R. 1309 has garnered the support of several Insurance organizations. Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), sent a letter of support to the Chair and Ranking member of the House Financial Services Subcommittee. “AIA has advocated for a long term reauthorization of the NFIP to protect consumers and help increase stability for real estate transactions and policyholders,” Pusey said. “AIA believes the five-year extension contained in HR 1309, will provide certainty in the flood program thereby increasing consumer and business confidence in the NFIP.”
Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC) spoke out in support of the bill. “For the NFIP to survive, the prices for flood insurance must reflect the actual costs of flood risk for a property,” Grande said. “HR 1309 will provide that transparency. In addition, the Technical Mapping Advisory Council will give communities a voice in the flood mapping process, fostering a better understanding of what flood maps represent and how they are made.”
Read H. R. 1309...
Read the American Insurance Association statement...
Read the NAMIC Press Release...
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Storm Debby Is Deadly — Because It’s Slow
September 16, 2024 —
Brian K Sullivan - BloombergTropical Storm Debby has killed at least five people as it churns across the US East, where it’s expected to inflict $1 billion or more in damage and losses.
One reason for the storm’s destructive power: It’s moving very slowly.
Although Debby came ashore with hurricane-strength winds, its rainfall — forecast to exceed two feet in some areas — is even more dangerous.
The St. Marys River in northern Florida rose more than 10 feet in one day, while New York will likely see downpours from Debby later in the week. Homes, businesses and farms may be deluged, putting crops and infrastructure at risk.
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Brian K Sullivan, Bloomberg
Insurance Litigation Roundup: “Post No Bills!”
April 02, 2024 —
Daniel Lund III - LexologyA company which is in the business of posting “advertising signs on temporary construction sites on behalf of clients” was “sued for trespass, conversion, and other torts” when it entered a site to remove posters. The company sought to have its insurance carrier cover the cost of its defense but was refused. A federal court lawsuit in California against the insurer ensued. The insurer prevailed on a Rule 12 motion to dismiss, and the insured appealed.
At issue: had an “occurrence” under the CGL policy taken place – that is, an “accident,” an “unexpected, unforeseen, or undesigned happening or consequence from either a known or unknown cause?” The appellate court noted that the company’s contractor “intended” to enter the work site and remove posters, which gave rise to the trespass claim. For its part, the company urged that the contractor’s actions “were based on erroneous information… [a] mistaken belief that it had the right or duty to enter the site and remove the posters….”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Newport Beach Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real Prevailed on a Demurrer in a Highly Publicized Shooting Case!
November 11, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara’s Partners Jeremy Johnson, Courtney Serrato, and Associate Joseph Real prevailed on a Demurrer in a highly publicized shooting case.
Plaintiffs filed a lawsuit alleging negligence, negligent hiring, supervision and retention, and public nuisance against BWB&O’s clients, a highly recognized hospitality and lifestyle company with nightlife and restaurant venues, in addition to other celebrity defendants. Plaintiffs were the victims of a shooting that occurred by an unknown individual(s) outside and near the restaurant/venue owned by BWB&O’s clients.
Plaintiffs alleged it was BWB&O’s clients that were responsible for the third parties’ criminal acts because BWB&O’s clients attracted more people than the venue’s capacity, causing people to occupy the street, sidewalk, and property nearby. Plaintiffs further alleged that BWB&O’s client should have anticipated or known that criminal conduct, including gun violence, would take place.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP