Hospital Settles Lawsuit over Construction Problems
December 04, 2013 —
CDJ STAFFThe Medical Arts Hospital in Lamesa, Texas has settled a lawsuit against its general contractor, roofing contractor, and two insurance companies for $3.7 million, over alleged construction problems. Ray Stephens, president of the hospital’s board said, “we got enough to fix the major problems and that was our goal in the beginning.” With the settlement, the lawsuit has been dismissed by the court.
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Real Estate & Construction News Roundup (06/06/23) – Housing Woes, EV Plants and the Debate over Public Financing
July 10, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, we look at the increasing difficulty of purchasing a home, potential international fallout from a new trade deal a renewed commitment by one American automaker to electric vehicles, and more!
It’s becoming
increasingly more difficult for house hunters to find homes, specifically in certain major cities. (Khristopher J. Brooks, CBS)
Due to years of overuse and a decades-long drought, Arizona has
halted new housing construction of parts of metro Phoenix. (AP via NBC)
After several claims by the FTC over privacy concerns regarding its voice assistant Alexa and doorbell camera Ring, Amazon has
agreed to pay over $30 million in fines. (Ayana Archie, NPR)
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Pillsbury's Construction & Real Estate Law Team
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
The Unwavering Un-waivable Implied Warranty of Workmanship and Habitability in Arizona
January 23, 2023 —
Robert A. Henry & Emily R. Parker - Snell & Wilmer Real Estate Litigation BlogThe Arizona Supreme Court recently issued an opinion on the scope of the implied warranty of workmanship and habitability (the “implied warranty”) in contracts between homebuyers and builder/vendors that provides clear guidance of the law in this area, specifically on the issue of whether the implied warranty can be waived or disclaimed. It is also an interesting and helpful read for those who engage in new home residential sales and real estate transactions generally.
The case:
Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022). The takeaway holding: the implied warranty of workmanship and habitability cannot, under any circumstances, be disclaimed or waived.
From a practice perspective, the foregoing is likely all one needs to ultimately know. However, the majority opinion (authored by Justice Timmer) and the dissent (authored by Justice King, and joined by Justice Bolick) are in these authors’ opinions worth a read for those who want a better understanding of the contours of how “public policy” plays into the analysis of the enforceability of contract terms, especially in the real estate context and even more particularly in connection with contracts for the sale of new homes. The careful analysis of both the majority opinion and the dissent provides an excellent history of the implied warranty, the public policy behind it, and its scope and application in the context of competing public policies, most notably the freedom to contract.
Reprinted courtesy of
Robert A. Henry, Snell & Wilmer and
Emily R. Parker, Snell & Wilmer
Mr. Henry may be contacted at bhenry@swlaw.com
Ms. Parker may be contacted at eparker@swlaw.com
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So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?
May 04, 2020 —
William L. Porter - Porter Law GroupThe Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link:
CSLB – Judgment.
On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Construction Industry on the Comeback, But It Won’t Be the Same
November 20, 2013 —
CDJ STAFF“The majority of contractors have readjusted and there’s cautious optimism, but there’s a new normal in construction,” Cam Dickinson, senior vice president of the construction group of Woodruff-Sawyer. But he cautioned that “it’s not going to come back like it was in the good old days.”
Some places, like the Miami or New York City areas are doing well, although New York City has the perhaps unique advantage of its market. Brian Schofeld, Crystal & Co.’s senior managing director and construction practice leader noted that for one New York City project, “the penthouse went for the full value of the gut renovation and that left the other 17 floors as a profit.”
Further signs of life are that “the residential private side is going gangbusters in the Bay Area and downtown San Francisco,” according to Bret Lawrence, vice president of construction for Woodruff-Sawyer, but he notes that “it’s nothing like it was.”
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Commonwealth Court Holds That Award of Attorney's Fees and Penalties is Mandatory Under the Procurement Code Upon a Finding of Bad Faith
October 29, 2014 —
William J. Taylor and Michael Jervis – White and Willams LLPIn a decision regarding a payment claim by a highway contractor against the City of Allentown, the Commonwealth Court of Pennsylvania has held that an award of attorney's fees and penalties is mandatory under the terms of the Pennsylvania Procurement Code, 62 Pa.C.S. § 3901 et seq., upon a finding of bad faith by the non-paying government agency, even though the statute only states that a court “may” award such fees and penalties.
In A. Scott Enterprises, Inc. v. City of Allentown, Cmwlth. Ct. No. 2163 C.D. 2013, the plaintiff, A. Scott Enterprises, Inc. (Scott), won a contract with the City of Allentown (City) to construct a one mile roadway. Several weeks after commencing work, Scott learned that soil at the construction site was potentially contaminated with arsenic, and was instructed by the City to suspend its work. Because of the soil contamination, additional work would be required to complete the project and Scott submitted proposals for the additional work plus its suspension costs. However, the City never approved the additional work and the project was never completed. The City never paid Scott for costs incurred due to the suspension of the work and Scott filed suit to recover its losses. The jury found that the City had breached the contract with Scott and had acted in bad faith in violation of the Procurement Code, and awarded damages to Scott for its unreimbursed suspension costs. However, the trial court denied Scott’s request for an award of attorney's fees and penalty interest. Both Scott and the City appealed the final judgment to the Commonwealth Court, which reversed the trial court’s refusal to award attorney's fees and penalties.
Reprinted courtesy of
William J. Taylor, White and Williams LLP and
Michael Jervis, White and Williams LLP
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com
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Court of Appeals Confirms that King County Superior Court’s Jury Selection Process Satisfies Due Process Requirements
December 04, 2023 —
Joshua Lane - Ahlers Cressman & Sleight PLLCRaymond Budd developed mesothelioma after working with a drywall product called “joint compound” from 1962 to 1972. He sued Kaiser Gypsum Company, Inc. and others for damages, contending that the company’s joint compound caused his illness. A jury returned a verdict in Budd’s favor and awarded him nearly $13.5 million. Kaiser appealed, claiming (1) insufficient randomness in the jury-selection process, (2) erroneous transcription of expert testimony, (3) lack of proximate causation, (4) lack of medical causation, (5) an improper jury instruction on defective design, (6) improper exclusion of sexual battery and marital discord evidence, (7) improper admission of post-exposure evidence, (8) improper exclusion of regulatory provisions, and (9) a failure to link its product to Budd’s disease. The Court of Appeals, Division 1, affirmed the verdict in favor of Budd.
Though all of the nine bases for error raised by Kaiser merit discussion, the jury-selection process issue is most probative here. Kaiser made three challenges against the jury selection process.
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Joshua Lane, Ahlers Cressman & Sleight PLLCMr. Lane may be contacted at
joshua.lane@acslawyers.com