Filling Out the Contractor’s Final Payment Affidavit
February 03, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhen preparing a contractor’s final payment affidavit, I always suggest for a contractor (or anyone in privity of contract with the owner) to identify the undisputed amounts their accounting reflects is owed to ALL subcontractors, etc., regardless of whether that entity preserved their lien rights. If the contractor provided a payment bond, I footnote this simply to support that none of the lower-tiered subcontractors have lien rights or are the traditional “lienor.” (Thus, there is no prejudice to the owner if an entity is inadvertently omitted from the affidavit.)
There are times, however, where a contractor does not identify a subcontractor that did not serve a notice to owner and, therefore, has no valid lien rights. Or, a contractor omits a lienor that actually did serve a notice to owner and preserve its lien rights; this happens.
There was an older First District Court of Appeals case that harshly (and, quite, unfairly) held that the contractor must identify everyone in the final payment affidavit regardless of whether that entity timely served a notice to owner or their lien is invalid. This case, however, predated, a 1998 statutory change to Florida’s Lien Law.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
2018 California Construction Law Update
January 10, 2018 —
Garret Murai – California Construction Law Blog The California State Legislature introduced 2,495 bills during the first year of the 2017-2018 Legislative Session. Of these, 859 were signed into law.
While much political attention was focused on several California laws that could be viewed as California’s rebuke of Washington, including California’s legalization of marijuana, enactment of “sanctuary state” legislation, and bills focused on climate change, 2017 also saw the enactment of a package of bills intended to address the state’s housing affordability crises (for a great summary of these bills see Wendel Rosen’s Landuse Group’s recent article
Slate of New Housing Bills Takes Effect January 1, 2018 ), as well as a range of other bills of interest to the construction industry including bills related construction financing, alternative project delivery methods, and solar construction.
Each of the bills discussed below took effect on January 1, 2018, except as otherwise stated.
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Garret Murai, Wendel, Rosen, Black, Dean, LLPMr. Murai may be contacted at
gmurai@wendel.com
Incorrect Information Provided on Insurance Application Defeats Claim for Coverage
July 31, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024).
Snell was hired by a family, the Westons, to turn an above ground trampoline into a ground level trampoline. This involved various tasks like tree pruning and removal, installation of shrubs, trees, and sod, and setting up a sprinkler irrigation system. The trampoline aspect of the project involved site work to make a place for the trampoline and assembly and installation of the trampoline. The site work included excavation of a pit, installation of a drain and drainage sand, excavation of a trench to install a drainage pipe, installation of the drainage pipe and of a drain pump, construction of concrete block retainer walls and installation of a wood cap on the retainer walls. Then, Snell unboxed the trampoline, assembled it, and lowered it into the pit.
A few years later, a visitor to the Weston home sued the Westons for injuries to his daughter suffered on the trampoline. The complaint alleged the daughter was injured when she "fell off of the trampoline and struck her face on the wooden board" surrounding the tramline. The complaint was later amended to add Snell as a defendant.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Unlocking the Potential of AI and Chat GBT in Construction Management
September 11, 2023 —
Matthew DeVries - Best Practices Construction LawThe construction industry is one of the most complex and challenging sectors. Projects can be highly demanding and require a significant amount of planning and coordination to complete successfully. However, with advancements in technology, specifically the use of artificial intelligence (AI) and chat GBT, the construction industry can experience a transformation in how it operates.
One of the significant challenges in construction projects is the management of data. Information is collected from various sources and needs to be organized and analyzed to make informed decisions. AI can play a significant role in data analysis by providing real-time insights into the project’s progress. This can help in predicting potential delays, identifying areas where cost savings can be made, and even improve safety measures.
Chat GBT, a natural language processing tool, can assist in project management by acting as a virtual assistant to construction managers. The software can be programmed to answer questions about the project, provide updates on the progress, and even suggest solutions to potential problems. This can help in reducing the workload of the project manager and allow them to focus on other critical tasks.
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Matthew DeVries, Burr & Forman LLPMr. DeVries may be contacted at
mdevries@burr.com
New Utah & Colorado Homebuilder Announced: Jack Fisher Homes
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFHenry Walker Homes announced the creation of Jack Fisher Homes, “a new venture that will continue their tradition of homebuilding excellence in Northern Utah, Southern Utah and Colorado,” according to a press release on PR Web.
“Colin Wright, Owen Fisher, Chad Bessinger and Steve Sandholtz founded Jack Fisher Homes to focus on areas of their proven expertise in real estate, including residential land development and homebuilding, commercial assets in multifamily development and seniors’ housing,” PR Web reported.
Jack Fisher has “1,300 single-family residential units in its pipeline” and “anticipates closing more than 230 homes in the remainder of 2014 with sales expected to exceed $70 million.” The homebuilder expects those numbers to double in 2015.
“All of the original elements that made Henry Walker great are incorporated and improved upon with Jack Fisher Homes,” Wright said, according to the press release. “The influx of new capital, our years of experience, and the improved real estate landscape have us very excited about the future of Jack Fisher Homes.”
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Can an Owner Preemptively Avoid a Mechanics Lien?
May 25, 2020 —
William L. Porter - Porter Law GroupVarious sections of the California Civil Code, beginning with section 8000, protect the right of contractors, subcontractors and suppliers in the construction industry to obtain payment for work performed and materials supplied to construction projects. Under these statutes, unpaid claimants are entitled to use mechanics liens, stop payment notices and other methods to protect their right to payment. Mechanics liens allow unpaid claimants to sell the property where the work was performed in order to obtain payment. Stop payment notices force the owner or the bank to set money aside to pay unpaid claimants. Article XIV of our California Constitution even elevates the mechanics lien remedy to a “constitutional right”. The system generally works well, and claimants are paid.
As someone who practices and teaches construction law, I have noticed a seldom used statutory tool that seems to provide a mechanism for property owners under certain circumstances to prevent subcontractors and suppliers from imposing enforceable mechanics lien on property where work was performed. Under California Civil Code section 8520, it appears that all that an owner of property need do to avoid a mechanics lien on its property is to give a proper notice (per Civil Code section 8100 et seq.) to a person who has a mechanics lien right (a subcontractor or supplier) that the owner is invoking Civil Code section 8520 and that if the claimant is unpaid for work performed or materials supplied to the owner’s property that the claimant must either provide the owner with a stop payment notice or forfeit the right to a mechanics lien on the owner’s property. This would allow an owner to avoid a mechanics lien on its property if the claimant failed to send a stop payment notice to the owner.
Providing the “notice” under Civil Code section 8100 appears to be easy. It can be sent by “registered or certified mail or by express mail or by overnight delivery by an express service carrier”. It can even be by “hand delivery”. As far as the notice itself, it would seem that it can be very simple and easily performed under the process described below, which can be implemented within the office of any owner or developer.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Floating Cities May Be One Answer to Rising Sea Levels
August 07, 2022 —
Adam Minter - BloombergThanks to climate change, sea levels are lapping up against coastal cities and communities. In an ideal world, efforts would have already been made to slow or stop the impact. The reality is that climate mitigation remains difficult, and the 40% of humanity living within 60 miles of a coast will eventually need to adapt.
One option is to move inland. A less obvious option is to move offshore, onto a floating city.
It sounds like a fantasy, but it could real, later if not sooner. Last year, Busan, South Korea's second-largest city, signed on to host a prototype for the world's first floating city. In April, Oceanix Inc., the company leading the project, unveiled a blueprint.
Representatives of SAMOO Architects & Engineers Co., one of the floating city's designers and a subsidiary of the gigantic Samsung Electronics Co., estimate that construction could start in a "year or two," though they concede the schedule might be aggressive. “It's inevitable,” Itai Madamombe, co-founder of Oceanix, told me over tea in Busan. “We will get to a point one day where a lot of people are living on water.”
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Adam Minter, Bloomberg
Ohio Supreme Court Rules That Wrongful Death Claims Are Subject to the Four-Year Statute of Repose for Medical Claims
January 16, 2024 —
Lewis Brisbois NewsroomCleveland, Ohio (January 2, 2024) - In a landmark 4-3 ruling, the Supreme Court of Ohio ruled on December 28 that wrongful death claims are subject to the four-year statute of repose contained in O.R.C. 2305.113(C) (“Medical Claim Statute of Repose”). Everhart v. Coshocton County Memorial Hospital, Slip No. 2023-Ohio-4670. Statutes of repose create an absolute bar to filing a lawsuit. When applicable, they bar plaintiffs from filing claims outside a specified time frame. The Medical Claim Statute of Repose creates a four-year window for commencing medical claims, which begins to run from “the occurrence of the act or omission constituting the alleged basis of the medical…claim.” O.R.C. 2305.113(C)(1). Medical claims commenced after the four-year period are barred.
The primary question before the Court was whether a wrongful death claim, which is separate and distinct from a medical negligence claim, can qualify as a “medical claim” within the context of the Medical Claim Statute of Repose. The Court answered in the affirmative. A wrongful death claim can qualify as a medical claim if the wrongful death claim “…arises out the medical diagnosis, care, or treatment, of any person.” O.R.C. 2305.113(E)(3). According to the majority, a wrongful death claim can fall within the broad definition of “medical claim” and, if it does, is subject to the Medical Claim Statute of Repose.
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Lewis Brisbois
