Washington, DC’s COVID-19 Eviction Moratorium Expires
August 23, 2021 —
Zachary Kessler, Amanda G. Halter & Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogThroughout the COVID-19 pandemic, federal and local governments have adopted varying moratoria on evictions, enacted as emergency legislative protections for tenants facing eviction. The federal moratorium on eviction, promulgated by the Centers for Disease Control and Prevention (CDC), is set to expire on July 31. While the Supreme Court recently left the moratorium in place, the Court signaled that it would likely be held unconstitutional if extended and challenged again. With the sole federal moratorium expiring, state and local protections may remain in effect; however, many of these local orders are also beginning to expire. Washington, DC’s eviction moratorium, one of the most tenant-friendly pieces of emergency legislation in the country, is one such example, beginning a phaseout process that allows the pace of evictions to slowly begin throughout 2021 before a final legislative sunset in February 2022.
In response to the COVID-19 pandemic, the Council of the District of Columbia and Mayor Muriel Bowser enacted a series of public health emergency legislation. Under the Coronavirus Omnibus Emergency Amendment Act of 2020, the Council put a pause on evictions for nonpayment of rent or violations of lease provisions, prohibiting landlords from filing a complaint to evict a tenant who detained “possession of real property without right” or whose “right to possession has ceased.” Under the moratorium, the Council effectively banned residential evictions, unless a court found that a tenant had performed an “illegal act” within the rental unit, that the tenant was causing undue hardship on the health, welfare, and safety of other tenants or neighbors, or that the tenant had abandoned the premises. The moratorium and other tenant-protections were initially set to remain in place indefinitely, expiring 60 days after the end of Mayor Bowser’s declared COVID-19 emergency period.
Reprinted courtesy of
Zachary Kessler, Pillsbury,
Amanda G. Halter, Pillsbury and
Adam Weaver, Pillsbury
Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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AB5 Construction Exemption – A Checklist to Avoid Application of AB5’s Three-Part Test
February 18, 2020 —
Blake Dillion - Payne & Fears LLPConstruction companies have a unique opportunity to avoid the application of the restrictive new independent contractors law that took effect this year. This article provides a checklist that will help construction companies determine whether their relationships with subcontractors qualify for this exemption.
California’s Assembly Bill 5 (“AB5”), which went into effect Jan. 1, 2020, enacts into a statute last year’s California Supreme Court decision in
Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor.
Certain professions and industries are potentially exempt from this standard, including the construction industry. The ABC test does not apply to the relationship between a contractor and an individual performing work pursuant to a subcontractor in the construction industry, if certain criteria are met. In order for the “construction exemption” to apply, the contractor must demonstrate that all of the following criteria are satisfied.
- The subcontract is in writing;
- The subcontractor is licensed by the Contractors State License Board and the work is within the scope of that license;
- If the subcontractor is domiciled in a jurisdiction that requires the subcontractor to have a business license or business tax registration, the subcontractor has the required business license or business tax registration;
- The subcontractor maintains a business location that is separate from the business or work location of the contractor;
- The subcontractor has the authority to hire and to fire other persons to provide or assist in providing the services;
- The subcontractor assumes financial responsibility for errors or omissions in labor or services as evidenced by insurance, legally authorized indemnity obligations, performance bonds, or warranties relating to the labor or services being provided; and
- The subcontractor is customarily engaged in an independently established business of the same nature as that involved in the work performed.
The contractor must be able to establish each of the above criteria for the construction exemption to apply. If the contractor is successful, the long standing multi-factor test for determining independent contractor vs. employee status as described in
S.G. Borello & Sons, Inc. v. Dep’t of Industrial Relations, 48 Cal. 3d 341 (1989) will apply.
You should review your processes and procedures for engaging subcontractors to ensure that you can satisfy the above criteria. If you have questions about the application of AB5, the construction exemption, or the
Borello factors, you should speak with an attorney.
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Blake A. Dillion, Payne & FearsMr. Dillion may be contacted at
bad@paynefears.com
Defense Owed to Directors and Officers Despite Insured vs. Insured Exclusion
May 13, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found there the duty to defend a suit filed by the FDIC against officers and directors was not excluded by the insured versus insured provision in the policy. W Holding Co., Inc. v. AIG Ins. Co. - Puerto Rico, 2014 U.S. App. LEXIS 5943 (1st Cir. March 31, 2014).
Regulators ordered the closure of the insured bank and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. FDIC concluded certain bank directors and officers had breached their fiduciary duty by jeopardizing the bank's financial soundness. The FDIC concluded these breaches had caused more than $367 million in losses and demanded reimbursement by the directors and officers.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Recommencing Construction on a Project due to a Cessation or Abandonment
October 26, 2017 —
David Adelstein - Florida Construction Legal UpdatesThere are instances where the owner of a construction project terminates its general contractor prior to the completion of the project. There are instances where the owner suspends the work prior to the completion of the project, meaning there is a cessation in the construction. And, there are instances where the project is simply abandoned. I have been involved in all instances, and the owner’s reasons vary…from an owner claiming a termination for default, termination for convenience, or a suspension or abandonment due to the market or financial factors. Regardless of the owner’s reasoning, at some point—hopefully—the owner will want to resume or, more properly stated, recommence construction and complete the project.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Apartment Construction Increasing in Colorado while Condo Construction Remains Slow
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFDennis Huspeni writing for the Denver Business Journal reported that Colorado is having a surge of new apartment construction, but very little condominium building. According to Huspeni, “some business leaders and government officials worry that Colorado’s construction defect laws” are the reason for the lack of condominium construction.
Huspeni in the Denver Business Journal alleged that there is a large “liability risk for builders, developers and subcontractors” because current state laws “make it easier for homeowners’ associations to file large, class-action lawsuits against builders for construction problems associated with new condominiums.”
Huspeni spoke with John Batug, senior vice president and regional manager of Wells Fargo’s community banking real estate group, who stated that condo development usually occurs at the same rate as apartment development. Batug alleged that construction defect litigation “seems to have pushed that component of the market out.”
A bill that is supposed to “jump-start” the “condominium construction sector will be introduced this session, but its sponsor said he remains unsure what types of legal reform will be a part of it,” reported Ed Sealover in the Denver Business Journal.
Lakewood Mayor Bob Murphy told Sealover that “city and business leaders would like to see two particular changes in the law: 1.They want to require a super-majority of condo owners to have to agree to legal action before any lawsuit is filed — instead of just needing two of them to move forward. 2.They want a requirement to attempt some sort of alternative dispute resolution before a suit can be filed.”
However, not everyone is in favor of the proposed suggestions. Jonathan Harris, vice president of The Point Homeowners Association, told Sealover that the “bill that the Metro Mayors Caucus wants ignores the fact that arbitration can be an expensive process for property owners.”
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Yet ANOTHER Reason not to Contract without a License
October 25, 2021 —
Christopher G. Hill - Construction Law MusingsRemember when I stated that you cannot lawfully perform construction work in Virginia without a contractor’s license? Remember when I said that you risk non-payment if you do so? If you needed another reason, a relatively recent Virginia Court of Appeals decision upholding a criminal conviction for performing construction work without a license should be that reason.
In Riddel v. Commonwealth, the Court took up an appeal from the conviction of Jeff Riddel where Mr. Riddel was verbally asked by homeowners to inspect and then repair their septic system. Mr. Riddel then contracted with Fairfax Suburban Septic to pump out and repair the system. Mr. Riddel then delivered the homeowners an invoice from Fairfax Suburban Septic and instructed the homeowners to pay Fairfax Suburban Septic directly. After payment, the homeowners became aware that the work was not completed and that neither Mr. Riddel nor his subcontractor was licensed to perform septic work in Virginia.
During the trial, Mr. Riddel argued on a Motion to Strike the Commonwealth’s evidence that (1) he merely arranged for licensed contractors to perform the repairs to the septic system, arguing that Virginia Code §§
54.2-801 to 802 permitted Riddel to arrange the work without a contractor’s license and (2) no written contract to perform a septic inspection or repairs existed. The Circuit Court denied the motion and Mr. Riddel was convicted under Va. Code 54.1-111 for performing the work without a license. Needless to say, he appealed.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Genuine Dispute Summary Judgment Reversed for Abuse of Discretion and Trial of Fact Questions About Expert Opinions
July 27, 2020 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Fadeeff v. State Farm General Ins. Co. (No. A155691, filed 5/22/20 ord. pub. 6/8/20), a California appeals court held that triable issues of fact and the trial court’s failure to address a request for a continuance precluded summary judgment for an insurer under the genuine dispute doctrine.
In Fadeeff, the policyholders made a claim to State Farm for smoke damage to their home from the 2015 Valley Fire in Hidden Valley Lake, California. With State Farm’s approval, the insureds retained the restoration company, ServPro, to assist with smoke and soot mitigation. State Farm documented smoke and soot on the interior walls, ceilings and carpeting, and on all exterior elevations, including on the deck and handrail. State Farm made a series of payments on the claim totaling about $50,000.
The insureds then hired a public adjuster and submitted supplemental claims for further dwelling repairs and additional contents replacement, totaling approximately $75,000. State Farm responded by using its own independent adjuster to investigate, who was neither licensed as an adjuster, nor as a contractor. State Farm also retained forensic consultants for the structure and the HVAC system, but neither the independent adjuster nor the consultants were aware that State Farm had an internal operation guide for the use of third-party experts in handling first party claims, which guidelines were therefore not followed. In addition, the consultants made allegedly superficial inspections, with one attributing smoke and soot damage to other sources of combustion, including the insureds’ exterior propane barbecue, an internal wood fireplace and wood stove and candles that had been burned in the living room. None of the consultants asked the insureds when they had last used any of the sources of combustion.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Time to Repair Nevada’s Construction Defect Laws?
February 10, 2012 —
CDJ STAFFThe Builders Magazine writes that during the previous session of the Nevada legislature, reforms sought by the building industry were stopped by the Speaker of the Nevada Assembly. The new session brings a new speaker and new hope for construction defect reform in Nevada.
Pat Hickey, a member of the Assembly and a small business owner told The Builders Magazine that “we need to apply pressure on the legislators to fix the law.” He also recommended that people “go to Governor Sandoval and ask for his help.” Builders seeks legislation that will include right to repair and it should “define construction defect in such a way that it allows for a fair process.”
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