Hake Law Attorneys Join National Law Firm Wilson Elser
April 02, 2014 —
Beverley BevenFlorez-CDJ STAFFIn a press release published on PRWEB, the national law firm Wilson Elser announced “that Bill Hake, founder of Bay Area–based Hake Law, and 15 members of his team, including attorneys, paralegals and staff, have joined the firm’s San Francisco office effective April 1.”
Specifically, “Wilson Elser has added a total of four partners from Hake Law, including Bill Hake, Melissa Ippolito, Nicolas Martin and Lucy Hoff, and four associates, including Gardiner McKleroy, Jeremy Berla, Molly Friend and Whitney Barnecut, bringing the total attorney headcount in Wilson Elser’s San Francisco office to 40.”
According to the release, “Hake Law was primarily a defense litigation firm focused on product liability, construction defects, D&O, catastrophic injury, toxic tort, white collar criminal, class action and complex litigation defense.” Wilson Elser is a “full-service and leading defense litigation law firm… with nearly 800 attorneys in 25 offices in the United States, one in London and through a network of affiliates in key regions globally.”
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Lakewood Introduced City Ordinance to Battle Colorado’s CD Law
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to The Denver Post, the Lakewood City Council “introduced an ordinance that would make it more difficult for homeowners associations to sue developers for construction defects and give builders more opportunity to fix problems before litigation begins.” A hearing and final vote is scheduled for October 13th.
"If there are defects, we want to get them fixed rather than dragging this through the courts for years," Lakewood Mayor Bob Murphy told The Denver Post. Murphy believes the ordinance will bring “more diverse housing options to Lakewood, especially around stations along the Regional Transportation District’s West Rail Line.” Lakewood’s City Planner Travis Parker also declared that the defects law is to blame for the lack of condos in the area.
However, some believe that “Lakewood is overstepping its bounds as a home-rule city,” according to The Denver Post. "What they're trying to do is use an ordinance to circumvent state law in order to make it impossible for homeowners to seek redress against builders for defects," Molly Foley-Healy an attorney who serves as legislative liaison for the Community Associations Institute's Legislative Action Committee told the Post. “Mayor Murphy needs to incentivize quality construction in Lakewood instead.”
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Killer Subcontract Provisions
January 20, 2020 —
Patrick McNamara - Porter Law GroupWe are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that are potential “deal breakers”:
- PAY IF/WHEN PAID (e.g. “Contractor shall have the right to exhaust all legal remedies, including appeals, prior to having an obligation to pay Subcontractor.”) “Pay-if-paid” provisions (“Receipt of payment from Owner shall be a condition precedent to Contractor’s duty to pay Subcontractor”) are illegal in California. However, the only legal limit on “Pay-When-Paid” provisions is that payment must be made “within a reasonable time.” The example above, as written, essentially affords the prime contractor a period of several years following completion of the project before that contractor has an independent duty to pay its subcontractors – not a “reasonable” amount of time, to those waiting to be paid. A compromise is to provide a time limit, such as 6 months or one year following substantial completion of the project.
- CROSS-PROJECT SET-OFF (e.g. “In the event of disputes or default by Subcontractor, Contractor shall have the right to withhold sums due Subcontractor on this Project and on any other project on which Subcontractor is performing work for Contractor.”) Such provisions are problematic and likely unenforceable, as they potentially bar subcontractors’ lien rights. Such provisions should be deleted.
- CONTRACTOR/SUBCONTRACTOR RESPONSIBILITY FOR DESIGN QUALITY (e.g. “Subcontractor warrants that the Work shall comply with all applicable laws, codes, statutes, standards, and ordinances.”) Unless a subcontractor’s scope of work expressly includes design work, this provision should either be deleted or modified, with the addition of the following phrase: “Subcontractor shall not be responsible for conformance of the design of its work to applicable laws, codes, statutes, standards, and ordinances.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
Hotel Owner Makes Construction Defect Claim
January 28, 2013 —
CDJ STAFFA lawsuit has been filed over the construction of the GrandStay Hotel & Conference Center in Apple Valley Minnesota. Apple Valley GSRS, LLC, who invested in the hotel, has sued Cole Group Architects and Cornerstone Construction, alleging that the architects design was not to industry standards and that the builder used inferior materials and techniques. The lawsuit makes claim of "significant damage."
The hotel hired an engineer who subsequently recommended that all the stucco and the roof should be be replaced. The stucco has shown signs of cracking and crumbling. The hotel states that the roof has problems with leaking.
Cornerstone has denied the hotel's claims. They have also counter-sued their subcontractors.
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Another Reminder to ALWAYS Show up for Court
July 20, 2020 —
Christopher G. Hill - Construction Law MusingsI have discussed the need to always respond to a lawsuit on multiple occasions here at Construction Law Musings. However, I keep reading cases where the defendant fails to appear either by pleading or in person. Such action is never a good idea as demonstrated once again in the case of Balfour Beatty Infrastructure, Inc. v. Precision Constr. & Mgmt. Group, LLC, a case out of the Eastern District of Virginia.
The basic facts are not a surprise and are taken from the magistrates report that was adopted by the District Court. Balfour Beatty and Precision entered into a subcontract for some electrical work at a project located in Loudoun County. The subcontract included an attorney fees provision and provided for liquidated damages for late performance and the typical damages for default. The project began in July of 2016 with substantial completion July 5, 2018. Precision failed to supply sufficient manpower and sent a letter to Precision stating the same. After an agreement between the parties regarding supplementation by Balfour Beatty and to the accompanying back charge, Balfour Beatty informed Precision by letter that it would be liable for any liquidated damages. The Owner began assessing liquidated damages and Balfour Beatty subsequently terminated the subcontract and discovered defective work by Precision.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Collapse of Underground Storage Cave Not Covered
June 29, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit faced unusual facts in determining that the collapse of a cave serving as a storage facility was not covered under the policy. Westchester Surplus Lines Ins. Co. v. Interstate Underground Warehouse & Storage, Inc., 2020 U. S. App. LEXIS 83 8th Cir. Jan. 3, 2020).
Interstate operated an underground storage facility in a cave that formerly housed a limestone mine. In 2014, Interstate experienced a series of "dome-outs," in which layers of rock destabilized, detached, and collapsed from above into the cave.
Interstate's policy with Westchester included coverage for collapse of a "building" caused by "building decay." Westchester sought a declaratory judgment that Interstate's loss was not covered. The district court granted summary judgment for Westchester because the cause of the loss was not "building decay" within the meaning of the primary policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Newmeyer & Dillion Selected to 2017 OCBJ’s Best Places to Work List
July 26, 2017 —
Newmeyer & Dillion LLPProminent business and real estate law firm Newmeyer & Dillion LLP is proud to be one of the selected companies in the
Best Places to Work in Orange County – 2017 Survey in the category of medium sized companies. This marks the sixth consecutive year Newmeyer & Dillion LLP has made the list, affirming that its profound commitment to professionalism and client service is shared among its workforce. The firm was honored in the July 24 issue of the Orange County Business Journal.
Jeff Dennis, Newmeyer & Dillion's Managing Partner, commends the effort and commitment of each employee in achieving this result. "We strive to make Newmeyer & Dillion a great place to be, but we only set the goal. It is our employees and their ongoing loyalty and commitment to our mission that makes it happen. Together, we create a culture here that cannot be matched anywhere else."
Created in 2009, the awards program evaluates entries based on workplace policies, practices, demographics, and also collects employee surveys to measure overall satisfaction and experience. The Best Companies Group worked alongside the Orange County Business Journal in collecting and analyzing the data and is a partner in the project.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Supreme Court Grants Petition for Review Regarding Necessary Parties in Lien Foreclosure Actions
August 17, 2017 —
Lindsay K. Taft - Ahlers & Cressman PLLCFor several years, the requirements for which parties must be named in a lien foreclosure action when a release of lien bond is in place have been cloudy. RCW 60.04 et seq., the “mechanics’ lien” or “construction lien” statute, provides protection for a party or person who provides labor, materials, or equipment to a construction project. That person or party, if not paid, can file a lien against the construction project property to secure recovery. As the lien impacts the property by “clouding title” and could potentially result in foreclosure of the property, the statute sets forth strict requirements with respect to timing, notice, and parties. For example, the lien must be recorded within 90 days of the person or party’s last day of work or materials or equipment supplied, and the lien claimant must then give a copy of the claim of lien to the owner or reputed owner within 14 days of the lien recording. RCW 60.04.081.
The statute also allows a property owner or other party to “free” the property from the lien prior to the claim being resolved by issuing a release of lien bond. While the claim is still in dispute, the lien then attaches to the bond and not the property. The same rules about foreclosure, however, still apply but not without some confusion.
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Lindsay K. Taft, Ahlers & Cressman PLLCMs. Taft may be contacted at
ltaft@ac-lawyers.com