New York Team Secures Appellate Win on Behalf of National Home Improvement Chain
September 26, 2022 —
Lewis BrisboisNew York, N.Y. (August 12, 2022) - New York Appellate Partner Nicholas P. Hurzeler, with New York Partners John J. Doody and David M. Pollack, obtained a significant appellate victory on behalf of a national home improvement chain when a New York Appellate Division panel for the Second Department reduced a jury verdict by more than half.
In this matter, which was
covered by Law360, the plaintiff was a customer at one of the chain's stores when he was involved in a confrontation with a man and his wife as they exited the store. The chain's loss prevention official told police that the plaintiff had assaulted the female customer. As a result of the incident, the plaintiff was arrested, spent the night in jail, and was arraigned at the same courthouse where he worked as a staff attorney while wearing only an undershirt and jogging shorts. He also had to disclose his arrest on his judgeship nomination application. The charges against him were ultimately dropped after the chain's loss prevention official told prosecutors that surveillance video showed that the female customer’s assault claims were false.
The plaintiff subsequently sued the home improvement chain and its loss prevention official for allegedly causing his false arrest and interfering with his career goal of securing a New York state court judgeship. At the close of the trial in this case, the jury determined that the defendant was liable for battery and false imprisonment, and awarded the plaintiff $1.8 million for pain and suffering.
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Lewis Brisbois
Wildfires Threaten to Make Home Insurance Unaffordable
January 10, 2018 —
Christopher Flavelle – BloombergMore frequent and intense wildfires are making it harder for homeowners to find and keep insurance in California, a state regulator warned Thursday.
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Christopher Flavelle, Bloomberg
Avoiding Disaster Due to Improper Licensing
February 18, 2019 —
Candace Matson - Construction & Infrastructure Law BlogIT’S NOT ENOUGH FOR A CONTRACTOR TO BE LICENSED . . . it must be properly licensed.
We are reminded of this by the recent case of JMS Air Conditioning and Appliance Service, Inc. v. Santa Monica Community College District, Bernards Bros., Inc., 30 Cal. App. 5th 945 (2018). In that case, JMS entered into an $8.2M subcontract with Bernards to install an HVAC system in a new facility being built for the District. JMS held a C-20 warm-air heating, ventilating and air-conditioning license. A year into the project, Bernards sought permission from the District to substitute another subcontractor for JMS (as required under Public Contract Code Section 4107 for listed subcontractors on public works of improvement). Among other things, Bernards contended that JMS was not properly licensed to perform that portion of the work which consisted of hydronic plumbing and hydronic boiler work. JMS countered that this work was an integral part of installing an HVAC system, and relied on Business & Profession Code Section 7059, which permits work that is “incidental and supplemental to the performance of the work for which the specialty contractor is licensed,” and a California State Licensing Board regulation which defines “incidental and supplemental” as meaning “essential to accomplish the work in which the contractor is classified.” (Cal. Code Regs., tit. 16, §831.)
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Candace Matson, Sheppard MullinMs. Matson may be contacted at
cmatson@sheppardmullin.com
Haight Celebrates 2024 New Partner Promotions!
January 22, 2024 —
Haight Brown & Bonesteel LLPHaight is celebrating new partner promotions in 2024. Congratulations to Gary LaHendro, Melvin Marcia and Philip McDermott!
Gary LaHendro became a member of the California State Bar in December 1993. He is a member of the Risk Management & Insurance Law Practice Group. He focuses his practice on insurance coverage and bad faith litigation. Gary’s clients include carriers within the United States and London Markets for whom he has provided coverage advice on various lines of coverage, including commercial general liability, excess, errors and omissions, auto, and representations and warranties. Gary also monitors the defense of insureds with respect to third-party lawsuits. In addition to coverage work, Gary has over 20 years of litigation experience as lead defense counsel on cases involving soil and groundwater contamination, professional liability, construction defect and personal injury cases. He is also a skilled appellate attorney and Certified Mediator.
Melvin Marcia became a member of the California State Bar on June 1, 2016. Melvin is a member of the firm’s Transportation Law, General Liability, Product Liability and Fire Litigation Practice Groups. His practice focuses on litigation of high value cases, ranging from catastrophic injury, wrongful death, premises liability, business disputes, product liability, uninsured/underinsured arbitrations and subrogation matters.
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Haight Brown & Bonesteel LLP
OSHA Issues COVID-19 Guidance for Construction Industry
July 13, 2020 —
Garret Murai - California Construction Law BlogThis past month, after remaining relatively quiet following the coronavirus outbreak, OSHA began issuing industry-specific guidance on how to deal with the coronavirus in the workplace.
Until this month, the only construction industry specific guidance issued by OSHA was an OSHA Alert entitled COVID-19 Guidance for the Construction Workforce, a one page document providing little more guidance than that workers should stay home if sick, wear masks and frequently wash hands to prevent spreading and catching the coronavirus, and to sanitize tools and work areas.
Early this month, OSHA issued more comprehensive guidance for the construction industry. The guidance, as noted in the preface by OSHA is simply guidance, “is not a standard or regulation” and “creates no legal obligations. The guidance supplements general guidance applicable to all workplaces issued earlier by OSHA.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Trade Contract Revisions to Address COVID-19
August 23, 2021 —
David R. Cook Jr. - Autry, Hall & Cook, LLPMany trade contracts contain a clause that may protect trade contractors from catastrophic events like pandemics. These clauses are known as force-majeure clauses (covering acts of God). They basically say if these unavoidable events happen, the contractor is relieved of its obligations to the extent of the impact.
However, many common industry forms have not been updated to specifically address COVID-19. (They may be waiting to see how the courts treat their existing language first.) So to ensure impacts from COVID-19 are covered, a trade contractor should consider expressly adding it to the force-majeure clause. See the example below.
Notably, typical force-majeure clauses do not say the trade contractor gets more money. So an escalation clause could be added to the force-majeure clause.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Guarantor’s Liability on Partially Secured Debts – The Impacts of Pay Down Provisions in Serpanok Construction Inc. v. Point Ruston, LLC et al.
October 24, 2021 —
Margarita Kutsin - Ahlers Cressman & SleightIn
Serpanok Construction, Inc. v. Point Ruston, LLC, Division Two of the Washington Court of Appeals decided an issue of first impression in Washington—whether a guarantor of a partially secured debt remains liable until the last dollar of the entire debt is paid off. After examining cases from other jurisdictions, the court held that that a guarantor is liable until the underlying debt is paid in full unless the agreement contains an express pay down provision. A pay down provision sets forth the guarantor’s right to reduce its obligation to the extent of any payment toward the debt, and it establishes that the guaranty applies only until an amount equivalent to the guaranteed amount is paid off.
The Serpanok decision addressed several other issues, but the published portion of this part-published case focused on whether an entity involved in a real estate development, Point Ruston LLC, was discharged from its guaranty obligation following a foreclosure sale where the proceeds did not cover the entire debt owed to a subcontractor. Point Ruston LLC, Point Ruston Phase II LLC (“Phase II”), and Century Condominiums (“Century”) were affiliated entities (collectively “Point Ruston parties”) that constructed retail and residential structures on a site in Point Ruston. Serpanok Construction Inc. (“Serpanok”) entered into subcontract agreements with Phase II and Century to perform concrete and steel work on a parking garage and movie theater for the project. Point Ruston LLC was not a party to either subcontract.
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Margarita Kutsin, Ahlers Cressman & SleightMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Reconciling Prompt Payments and Withholding of Retention Payments
March 30, 2016 —
Eric J. Rollins, Esq. – Newmeyer & Dillion, LLPIt is common in California for the owners of a project to make monthly payments to a contractor for work as it is completed, but withhold a certain percentage as a guarantee of future satisfactory performance. Contractors almost always pass these withholdings on to their subcontractors. Unsurprisingly, disputes can arise regarding when the withheld retentions must be paid.
Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after receiving all or part of a retention payment. However, an exception exists -- a direct contractor may withhold from the retention paid to a subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount, whenever a “good faith dispute exists between the direct contractor and a subcontractor.” (See Cal. Civ. Code, § 8814, subd. (c).) The problem with the statute is that it offers no help in defining a “good faith dispute,” and the California courts have historically not provided much guidance either. Can a “good faith dispute” be any dispute between the contracting parties, e.g., a dispute regarding change orders, mismanagement, etc.? Or must the dispute relate specifically to the retention? Unfortunately for California litigants, the answer may depend on the appellate district in which the parties find themselves.
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Eric J. Rollins, Esq., Newmeyer & Dillion, LLPMr. Rollins may be contacted at
eric.rollins@ndlf.com