Homeowner's Claim for Collapse Survives Summary Judgment
September 20, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer failed to present adequate evidence on summary judgment that damage caused by the collapse of a swimming pool was not covered. Klein v. State Farm Ins. Co., 2017 N.Y. Misc. LEXIS 3030 (Sup. Ct. N.Y. July 11, 2017).
Klein notified State Farm that his in-ground pool collapsed on February 5, 2014, with a side wall falling into the pool, causing damage to brick, borders and the patio around the pool. Upon inspection, State Farm's agent found that the cover of the pool had partially fallen into the pool, and that the vinyl pool liner had a tear. State Farm covered the damage to the pool liner, but denied coverage for the in-ground swimming pool walls, the brick border and the patio surrounding the pool. State Farm maintained that the loss was due to a "collapse," which was excluded under the homeowner's policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Recent Opinions Clarify Enforceability of Pay-if-Paid Provisions in Construction Contracts
May 29, 2023 —
Patrick McKnight - The Dispute ResolverSeveral recent opinions and legislative actions have brought the controversial nature of pay-if-paid provisions into focus in early 2023. Pay-if-paid provisions are contractual mechanisms designed to shift the risk of non-payment from General Contractors to lower-tier subcontractors. In other words, pay-if-paid provisions generally do not require payment to downstream subs until after the GC or Prime are themselves paid in-full by the owner. Recent developments reflect the differing approaches taken by courts when addressing pay-if-paid provisions, ranging broadly from prohibition to full enforceability. Other jurisdictions fall somewhere in the middle, viewing such provisions with varying amounts of skepticism on the grounds heir impact on smaller downstream subs is disproportionate and unfair.
Pay-if-paid provisions are often contrasted against “pay-when-paid” provisions. Pay-when-paid provisions may require payment within a specified duration but remove the upstream contractor’s payment in-full as a condition precedent. The brief discussion below will not explore pay-when-paid, no damage for delay provisions, or statutory prompt payment acts. Instead, this article serves as a primer on recent legal developments related to pay-if-paid provisions exclusively.
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com
The Best Lawyers in America© Peer Review Names Eight Newmeyer & Dillion Partners in Multiple Categories and Two Partners as Orange County’s Lawyers of the Year in Construction and Insurance Law
August 26, 2015 —
Press ReleaseNewmeyer & Dillion is pleased to announce that a number of its partners have again been recognized by
TheBest Lawyers in America© peer review as some of California’s Best Lawyers in multiple categories.
Our partners were recognized in the following practice areas in 2016 for Newport Beach, CA:
Michael S. Cucchissi / Real Estate Law
Jeffrey M. Dennis / Insurance Law
Gregory L. Dillion / Commercial Litigation, Construction Law, Insurance Law, Litigation - Construction, and Litigation - Real Estate
Joseph A. Ferrentino / Litigation – Construction and Litigation - Real Estate
Thomas F. Newmeyer / Commercial Litigation, Construction Law, and Litigation - Real Estate
John A. O'Hara / Litigation - Construction
Bonnie T. Roadarmel / Insurance Law
Carol Sherman Zaist/ Commercial Litigation
Beyond the above recognition, Greg Dillion and Tom Newmeyer were selected respectively as Orange County’s “Lawyers of the Year 2016” in Insurance Law and Construction Law. Greg Dillion and Joe Ferrentino previously have been honored as Orange County “Lawyers of the Year 2015” in Real Estate Litigation as well.
“We take pride in hiring great attorneys who will deliver the highest quality service and results for our clients. This recognition confirms that we are doing just that. It is a great honor and well deserved recognition for our partners to be selected by their peers as the Best Lawyers in their fields,” said Managing Partner, Jeff Dennis.
Because of the rigorous and transparent methodology used by Best Lawyers, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a prestigious honor. Inclusion in the Best Lawyers in America® 2016 is based on a rigorous national survey involving over 6.7 million detailed evaluations by other lawyers. For additional information, visit www.bestlawyers.com.
About Newmeyer & Dillion LLP
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With more than 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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Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)
June 17, 2015 —
Christopher G. Hill – Construction Law MusingsAside from waiver of lien rights (something that will be illegal in Virginia after July 1, 2015), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted in the proper fashion, are enforceable. As I have said many times, in Virginia freedom of contract almost always wins out.
While this is the case, I emphasize that such clauses must be very explicit and specific. Furthermore, and in something that should be obvious, these clauses are generally limited by the Courts of Virginia to only be enforceable and to only forgive the need for payment if the upstream contractor on the construction job has not been paid for the work that the sub claiming non payment has done.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
COVID-19 Response: Environmental Compliance Worries in the Time of Coronavirus
April 20, 2020 —
Karen Bennett, Jane Luxton, William Walsh & Amanda Tharpe - Lewis BrisboisEarlier this week, a rumor made the rounds that a forthcoming Presidential Executive Order would impose a nationwide mandate that all employees work remotely. While the rumor proved baseless, it raised questions about manufacturers’ abilities to comply with environmental permit obligations in the event of a COVID-19 precipitated operational shutdown due to federal or state mandates or workforce depletion resulting from widespread illness. Previous emergencies offer some insights on what to expect as companies and their counsel assess environmental business risk.
In the wake of Hurricane Katrina, several bills were introduced in Congress that would have allowed the Environmental Protection Agency (EPA) to waive or modify requirements, issue emergency permits, or expedite permits as needed to respond to disaster and recovery needs. In the end, no new legislation was enacted, because existing emergency powers under environmental statutes proved sufficient to allow for waiver of regulatory requirements or exercise of enforcement discretion. Key provisions include the following:
- The Clean Water Act’s (CWA) affirmative defense for “upset” conditions. This provision excuses non-compliance with technology-based permit effluent limitations due to factors outside the permittee’s control. Criteria for establishing the defense include: 1) the upset occurred and the permittee can identify the cause, 2) the permitted facility was at the time being properly operated, 3) the permittee submitted notice of the upset (24 hour notice), and 4) the permittee complied with any remedial measures required under 40 C.F.R. §122.41(d).
Reprinted courtesy of Lewis Brisbois Bisgaard & Smith attorneys
Karen Bennett,
Jane Luxton,
William Walsh and
Amanda Tharpe
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com
Ms. Luxton may be contacted at Jane.Luxton@lewisbrisbois.com
Mr. William may be contacted at William.Walsh@lewisbrisbois.com
Ms. Amanda may be contacted at Amanda.Tharpe@lewisbrisbois.com
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Miller Law Firm Helped HOA Recover for Construction Defects without Filing a Lawsuit
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a press release published on the PR Newswire, The Miller Law Firm “recovered $910,000 for the 1635 California Owners' Association for construction defects without ever filing a complaint.” William Nagle, Special Master & Mediator, facilitated the settlement “a year after putting the builder on notice under SB 800, California’s Right to Repair Law.”
“Independent forensic expert inspections revealed building standard violations ranging from improperly installed gutters resulting in water intrusion in the units project wide, active leaks, standing water and inadequate gutters resulting in staining and efflorescence on the garage walls, balcony, and tile grout, discoloration and extensive cracking in the stucco project wide, inadequate weather stripping with evidence of condensation staining at windows, window frames and adjacent paint, inadequate ventilation, and ADA violations including loose glass guardrails and in regards to accessible rooftop common areas,” according to the press release.
“This case settled prior to any formal mediation and I credit the diligence of both the Association and builder counsel,” Nagle stated. “Tom Miller is one of the most knowledgeable and respected plaintiffs' lawyers in the construction defect area. And I compliment both counsel on their preparation and cost-effective handling of the case in reaching a fair and reasonable result for their respective clients."
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Court of Appeals Upholds Default Judgment: Serves as Reminder to Respond to Lawsuits in a Timely Manner
October 02, 2023 —
Anna Basnaw - Ahlers Cressman & Sleight PLLCIn
Cyrus Way Partners, LLC. (“Cyrus”) v. Cadman, Inc. (“Cadman”), the primary issue on appeal was whether the trial court erred in denying Cadman’s motion to vacate the default judgment under Civil Rules 55 and 60. A default judgment is a legal ruling that can be entered in favor of the plaintiff when the defendant fails to respond to a lawsuit. If that happens, the court may resolve the lawsuit without hearing from the other side. In Washington, a party typically has 20 days to appear in a suit before being at risk for default judgment. If a default judgment is entered for the plaintiff, the defendant can move to vacate the default judgment, meaning the defendant hopes the court will set aside the default judgment as if it never happened. In this case, Cadman, the defendant, presents several ultimately unsuccessful arguments for why the default judgment in favor of Cyrus, the plaintiff, should be vacated.
Cyrus and Orca Beverage Inc. (“Orca”) are under common ownership. In 2018, Cyrus began a project to build a warehouse for Orca, which included the construction of a large concrete slab. Cadman was hired to supply the concrete. Cyrus hired Olympic Concrete Finishing Inc. (“Olympic”) to finish the concrete. On April 1, 2018, Cadman poured the concrete, and Olympic finished the slab. The next day, Cyrus noticed several problems with the slab, which experts hired by both Cyrus and Cadman opined were caused by an abnormally high air content in the concrete.
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Ahlers Cressman & Sleight PLLC
Ruling Finds Builder and Owners at Fault in Construction Defect Case
December 30, 2013 —
CDJ STAFFA Minnesota home owners association has been found 30liable for some of the damage to their homes in a jury trial. The Interlachen Propertyowners Association made a claim of construction defects against Keupers Architects and Builders who had constructed the 24-unit town home complex. According to the association’s lawyer, the half-log siding was improperly installed, leading to water intrusion and rot.
The jury did find for the homeowners on the construction defect claim, but found on a claim of negligent repairs that the association was 30% at fault, due to insufficient maintenance of the building. “We don’t think any amount of maintenance would have saved these buildings,” said Jason Tarasek, the lawyer for the association. The association is likely to appeal.
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