Does the Recording of a Mechanic’s Lien Memorandum by Itself Constitute Process? Read to Find Out
August 04, 2021 —
Christopher G. Hill - Construction Law MusingsAs a Virginia construction attorney representing those in the construction industry, mechanic’s liens are near and dear to my heart. The enforcement of mechanic’s lien rights in Virginia is a two-step process. The first step is the recording of a properly-timed memorandum of lien that includes all of the statutorily required information. The second step is a suit to enforce that memorandum of lien filed in Circuit Court. A recent case out of Norfolk, VA examined the first of these steps.
In Central Radio Co. v. Warwick Builders, et al., and as Count III of a three-count Complaint, the Plaintiff, Central Radio Co., alleged that the Defendant, Warwick Builders, recorded a memorandum of lien that Warwick knew to be without merit and therefore committed an abuse of process. However, Warwick did not file any Circuit Court suit to enforce that lien. Central Radio Co. essentially alleged that the filing of the memorandum by itself constituted an attempt to extort payment and therefore was an abuse of process.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Reminder: Your MLA Notice Must Have Your License Number
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsRemember a couple of years ago when the Virginia mechanic’s lien rules changed to require inclusion of a claimant’s contractor’s license number (where a license is required)? If not, then this is a reminder of that particular wrinkle in the strictly interpreted mechanic’s lien statute. This requirement applies to all mechanic’s lien memoranda and, like all parts of this crazy statute, will invalidate a lien if not met. Well, another change to the statute happened with a bit less fanfare.
The change back in 2013 that came along with the license number requirement for a lien memorandum is a change in the mechanic’s lien agent notice requirement that applies to residential construction. The basic requirement, namely that those performing residential construction must notify any mechanic’s lien agent (“MLA”) listed on a building permit within 30 days of starting work that they are on the job and could file a lien, has not changed. What the amendments to the lien statutes in 2013 added was a requirement that the notice, like a lien memorandum, must include the contractor’s or subcontractor’s license number.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Beam Cracks Cause Closure of San Francisco’s New $2B Transit Center
October 09, 2018 —
David Suggs – Bert L. Howe & Associates, Inc.After two billion dollars and two decades, San Francisco’s newest transportation hub opened on August 11th of this year only to be closed a month later, on September 25th, after a cracked beam was discovered, according to The Real Deal. Later, workers found an additional, though smaller, crack in another beam parallel to the first.
The Real Deal described the crack in the first beam: “The Transbay Joint Powers Authority (TJPA) – which built and now operates the center – said the tear was 2.5 feet long and 4.5 inches deep on a 60-foot beam that holds a 5.4-acre rooftop park above a bus deck.” Steel supports are now being installed to reduce the pressure on the beams.
While officials have not discovered the cause of the problem, The Real Deal reported several possibilities, including “fabrication problems, installation error, too much weight, or an issue in the initial design.”
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Construction Defects Claims Can Be Limited by Contract Says Washington Court
February 11, 2013 —
CDJ STAFFThe firm Lane Powell has issued a construction law update on the recent Washington Supreme Court decision in Washington State Major League Baseball Public Facility District v. The Baseball Club of Seattle, LP. In the underlying construction defect claim, the Public Facility District found defects in the structural steel at Seattle’s Safeco Field. The contractor, Huber, Hunt & Nichols-Kiewit Construction Company claimed that construction claims could not be made, as it was barred by the statue of repose.
Washington State has a six-year limitation on its statute of repose, however, the court noted that the contract contained a clause that, as noted by Lane Powell, “any alleged causes of action automatically accrue at substantial contemplation,” instead of within six years of substantial completion. The court concluded that the statue of repose could be rendered inoperative by contract. Further, the court found that these contract clauses pertained to subcontractors as well.
Nevertheless, as PFD is a subdivision of the state, the court found that no statue of limitations could be appled.
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Coverage Exists for Landlord as Additional Insured
September 03, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Indiana Court of Appeals determined the landlord was entitled to coverage as an additional insured under the tenant's policy. Selective Ins. Co. v. Erie Ins. Exch., 2014 Ind. App. LEXIS 365 (Ind. Ct. App. July 30, 2014).
Rangeline, LLC owned a warehouse. Rangeline negotiated a lease with Hammons Storage to store insulation manufactured by Knauf Insulation. Pursuant to requirements in the lease, Hammons secured liability coverage with Erie Insurance naming Rangeline as an additional insured.
After Hammons moved insulation into the warehouse for storage, the pipes of the sprinkler system burst, causing damage to the insulation. The cause of the loss was determined to be water from the system freezing, which led to the cast iron fittings cracking, causing the failure of the sprinkler heads.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Courthouse Reporter Series: Two Recent Cases Address Copyright Protection for Architectural Works
January 16, 2024 —
Stu Richeson - The Dispute ResolverRecent decisions by the Seventh Circuit and the Eight Circuit have addressed the scope of protection afforded to architectural works under copyright law. The Seventh Circuit case of Design Basics, LLC v. Signature Constr., Inc., 994 F.3d 879 (7th Cir. 2021), took a somewhat narrow view of the copyright protection afforded to the design of an “affordable, multipurpose, suburban, single-family home.” In Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc., 9 F.4th 803 (8th Cir. 2021), cert. denied, 142 S. Ct. 2888, 213 L. Ed. 2d 1103 (2022) the Eight Circuit held that the publication of floor plans of a house in a real estate listing was not protected from claims of copyright infringement.
Design Basics, LLC v. Signature Constr., Inc., involved a plaintiff that the court described as holding registered copyrights in thousands of floor plans for suburban, single-family homes that are basic schematic designs, largely conceptual in nature, and depict layouts for one- and two-story single-family homes that include the typical rooms: a kitchen, a dining area, a great room, a few bedrooms, bathrooms, a laundry area, a garage, stairs, assorted closets, etc. The court described the plaintiff as a “copyright troll” and noted that litigation proceeds had become the principal revenue stream for the plaintiff. The plaintiff sued a contractor and related businesses contending hat the defendants had infringed plaintiff’s copyrighted floor plans.
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com
Bad Faith Claim For Independent Contractor's Reduced Loss Assessment Survives Motion to Dismiss
January 28, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's bad faith claim based upon the insurer's alleged use of an independent contractor to assess the amount of loss in order to lower the amount paid survived a motion to dismiss. Williamson v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 178022 (E.D. Pa. Dec. 19, 2013).
The insureds' home was damaged. Chubb, their insurer, retained an independent contractor, Eastern Diversified Services (EDS) to assess the amount of loss. EDS estimated the loss to be $193,270.43, and Chubb paid this amount.
Chubb's standard practice was to conduct damage estimates itself using an estimating program called Symbility. EDS used a different program with a data base creating lower payments for loss. When this was brought to Chubb's attention, Chubb refused to recalculate the plaintiff's estimate.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Sinking Floor Does Not Meet Strict Definition of Collapse
August 17, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe court determined that the sinking of the insured's floor caused by termites and rot deterioration did not meet the homeowners policy's definition of collapse. Stewart v. Metro. Lloyds Ins. Co., 2020 U.S. Dist. LEXIS 111527 (S.D. Tex. June 24, 2020).
Beatrice Stewart, the homeowner, heard a loud bang one night as she lay in bed. The next day, she found that the floor near her bathroom and hallway had sunk and the house was sitting lower. She admitted the house never completely fell down. Upon investigation, Lloyds found that rot in the floor joists and subfloor decking were caused by a combination of termite damage and exposure to moisture. Lloyds denied the claim.
Stewart sued. Lloyds argued the policy required an "entire collapse" of the building or any part of a building, which did not occur here. The policy defined "collapse" as "an abrupt falling down or caving in of a building or any part of a building." The record did not show that any part of Stewart's floor caved in.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com