Difficulty in Defending Rental Supplier’s Claim Under Credit Application
October 11, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn construction, one of the easiest claims to prove from a burden of proof standpoint is that of a supplier, particularly a rental equipment supplier. Oftentimes, these claims are more in the realm of a collection claim because a rental supplier will generally be able to establish that a party opened an account with them, signed a credit application and personal guaranty, and equipment was rented and even delivered to a specific jobsite during set dates. Defending these claims is not so easy. And even if there is a defense as it relates to some amounts, there needs to be an upside challenging those amounts when factoring in the attorney’s fees, costs, and interest on the other amounts and on continuing the dispute.
An example of the difficulty in defending these claims from rental suppliers can be found in the recent case of Custom Design Expo, Inc. v. Synergy Rents, Inc., 2021 WL 4125806 (Fla. 2d DCA 2021). Here, a contractor rented equipment (e.g, forklifts) from a supplier. The equipment was rented on an open account and the contractor signed a personal guaranty. The supplier sued the contractor for about $81,000 that remained unpaid. The supplier appeared to waste no time and moved for summary judgment with an affidavit from its credit manager. The credit manager affirmed that the contractor executed a credit application for purposes of renting equipment on an open account, the application contained a personal guaranty, and the credit application formed the basis of a contract. The credit manager authenticated the credit application and affirmed that the contractor owed it about $81,000 in unpaid amounts for rental equipment that was furnished under the credit application.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Parties Can Agree to Anything In A Settlement Agreement………Or Can They?
October 17, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldA settlement agreement is a contract. When parties to pending litigation enter into a settlement, they enter into a contract. Such a contract is subject to the general law governing all contracts. (T. M. Cobb Co. v. Superior Court (1984) 36 Cal.3d 273, 280 [204 Cal. Rptr. 143, 682 P.2d 338] [offers by a party to compromise under Code Civ. Proc., § 998].) Courts seek to interpret contracts in a manner that will render them “lawful, operative, definite, reasonable, and capable of being carried into effect’” without violating the intent of the parties. (Robbins v. Pacific Eastern Corp. (1937) 8 Cal.2d 241, 272–273; Kaufman v. Goldman, (2011) 195 Cal. App. 4th 734, 745.
A settlement agreement like a contract is a document that is typically negotiated between the parties to the agreement and it is up to the parties to determine its terms. Settlements take time and sometimes negotiating the settlement terms takes longer. This is especially true in complex litigation and multiparty matters where negotiating the settlement terms is just as contentious as litigating the matter. Just like contracts, in a settlement agreement the parties cannot agree to terms that violate public policy. A contract is thought to be against public policy if it results in a breach of law, harms citizens, or causes injury to the state. Contracts that are voided on public policy grounds carry no legal obligations. For example, an employer cannot force an employee to sign a contract that forbids the worker from joining a union.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
Read the court decisionRead the full story...Reprinted courtesy of
Did the Court of Appeals Just Raise the Bar for California Contractors to Self-Report Construction-Related Judgments?
June 10, 2015 —
Garret Murai – California Construction Law BlogAn interesting construction case just came out from the California Court of Appeals for the Second District this past month – Pacific Caisson & Shoring, Inc. v. Bernards Bros., Inc., California Court of Appeals for the Second District, Case No. B248320 (May 19, 2015) – which discusses a number of intertwining issues that can be faced by contractors in California and concludes with a result that I’m not sure I quite agree with.
Among the issues discussed by the Court of Appeal were:
- The application of the dreaded Business and Professions Code section 7031 which: (1) precludes a contractor from making a claim for payment for work performed; and (2) requires a contractor to disgorge all monies received for work performed, if the contractor was not properly licensed at all times that work was performed;
- The impact of an unsatisfied judgment against one contractor on the license of another “related” contractor; and
- Whether a stipulated judgment providing for payments over time is an unsatisfied final judgment under the Licensing Law.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
A New Statute of Limitations on Construction Claims by VA State Agencies?
March 27, 2019 —
Christopher G. Hill - Construction Law MusingsI have discussed the Hensel Phelps case and the potential issues caused by both poorly drafted indemnity clauses and the lack of a statute of limitations applicable to the Commonwealth of Virginia and its agencies in 2017. New legislation (supported by various contractor groups including my friends at the AGC of Virginia) has been proposed for the 2019 General Assembly session that seeks to address at least part of this issue. While the indemnity provisions of your construction contracts can be addressed by careful drafting with the help of an experienced construction attorney, the proposed legislation (found in HB1667) seeks to address the statute of limitations issue.
The proposed legislation is described as follows:
Provides that no action may be brought by a public body on any construction contract, including construction management and design-build contracts, unless such action is brought within five years after substantial completion of the work on the project and that no action may be brought by a public body on a warranty or guarantee in such construction contract more than one year from the breach of that warranty, but in no event more than one year after the expiration of such warranty or guarantee. The bill also limits the time frame during which a public body, other than the Department of Transportation, may bring an action against a surety on a performance bond to within one year after substantial completion of the work on the project.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Florida Governor Bans Foreign Citizens From Buying Land in Florida
May 29, 2023 —
Michael Gnesin - Lewis BrisboisFt. Lauderdale, Fla. (May 19, 2023) - Florida Governor Ron DeSantis recently signed a bill prohibiting Chinese citizens who are not U.S. citizens or permanent residents from purchasing any residential or commercial land or farmland in Florida.
Senate Bill 264, titled “Interests of Foreign Countries,” will prohibit Chinese nationals from buying land unless they are American citizens or permanent residents. The bill also imposes certain restrictions on Chinese citizens – and others, including Russians and Venezuelans – with non-tourist visas when it comes to buying land near a military base in Florida. For example, and in an exception to the new law, Chinese citizens with non-tourist visas would be limited to buying fewer than two acres of land that is at least five miles away from any military institutions.
Senate Bill 264 reads in pertinent part:
…A foreign principal may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent agricultural land or any interest, except a de minimis indirect interest, in such land in this state….
…A foreign principal may not directly or indirectly own, or have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property on or within 10 miles of any military installation or critical infrastructure facility in this state…
Read the court decisionRead the full story...Reprinted courtesy of
Michael Gnesin, Lewis BrisboisMr. Gnesin may be contacted at
Michael.Gnesin@lewisbrisbois.com
East Coast Evaluates Damage After Fast-Moving 'Bomb Cyclone'
March 06, 2022 —
Scott Van Voorhis - Engineering News-RecordCoastal areas in the northeast US are assessing damage from a fast-moving “bomb cyclone” that caused temperatures to plummet, triggered heavy flooding and high winds, and dumped 2 ft of snow in some New England areas.
Reprinted courtesy of
Scott Van Voorhis, Engineering News-Record
ENR may be contacted at enr@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Engineers Found ‘Hundreds’ of Cracks in California Bridge
January 24, 2014 —
James Nash – Bloomberg NewsEngineers spotted “hundreds” of cracks in welds on parts produced for the San Francisco-Oakland Bay Bridge in 2008 and were encouraged to stay quiet rather than delay the $6.4 billion project, according to a California Senate committee report.
James Merrill, then a senior engineer with a quality assurance company known as Mactec, told Senate investigators that his complaints about work done at Shanghai Zhenhua Heavy Industry Co. Ltd. (900947), known as ZPMC, were rebuffed by managers of the California Department of Transportation as “too rigorous,” according to the report released yesterday.
Read the court decisionRead the full story...Reprinted courtesy of
James Nash, Bloomberg NewsMr. Nash may be contacted at
jnash24@bloomberg.net
A Year After Fatal Genoa Viaduct Collapse, Replacement Takes Shape
November 04, 2019 —
Peter Reina - Engineering News-RecordNearly 14 months after the Morandi viaduct collapsed in Genoa, Italy, killing 43 people, crews placed the first section of a 1,067-meter-long, 19-span steel and concrete replacement structure.
Reprinted courtesy of
Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
READ THE FULL STORY... Read the court decisionRead the full story...Reprinted courtesy of